PublicInvest Research

PublicInvest Research Headlines - 8 Jul 2021

Publish date: Thu, 08 Jul 2021, 11:13 AM
An official blog in I3investor to publish research reports provided by PublicInvest Research team.

All materials published here are prepared by Public Investment Bank Berhad. For latest offers on Public Invest trading products and news, please refer to:

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US: Job openings edge higher in May, hiring slips. US job openings rose slightly to a new record high in May and hiring dipped, a sign that the economy could still be struggling with labour shortages as coronavirus restrictions eased across the country. Job openings, a measure of labour demand, rose by 16,000 to 9.2m on the last day of May, the Labour Department said in its monthly Job Openings and Labour Turnover Survey, or JOLTS report. Hiring also dipped to 5.9m in May from 6.0m in the prior month. (Reuters)

EU: Raises growth outlook, warns of higher than forecast inflation. The EU Commission raised the growth forecast for the euro area and warned that inflation could be higher than expected if supply constraints persist. Eurozone is set to grow 4.8% this year, the executive arm of the EU said in its latest summer projections. That is stronger than the spring projection of 4.3%. The outlook for next year was raised to 4.5% from 4.3%. The EU growth outlook for this year was boosted to 4.8% from 4.2%. The projection for next year was raised to 4.5% from 4.4%. (RTT)

EU: France trade deficit at 9-month high. France trade deficit widened to a nine-month high in May and the current account deficit increased, official data showed. The trade deficit increased to EUR6.8bn in May from EUR6.33bn in April, customs office said. This was the biggest shortfall since Aug 2020, when the deficit was EUR7.08bn. Data showed that exports dropped 3% MoM and imports decreased 1.6%. On a yearly basis, exports and imports advanced 37.5% and 37.2%, respectively. (RTT)

UK: House prices fall first time since January, Halifax says. UK house prices fell for the first time in five months in June, an indication the property market may have lost momentum as a tax incentive was due to come to an end. The average value of a home declined 0.5% to GBP260,358 (USD359,000), mortgage lender Halifax said. The drop followed a 1.2% increase in May and left prices 8.8% YoY. (Bloomberg)

UK: Labour productivity improves in 1Q. UK labour productivity recovered in the first quarter, data from the Office for National Statistics showed. Output per hour grew 0.9% QoQ, following a 0.7% fall in 4Q20. The ONS said total hours worked fell faster than gross value added, resulting in more output per hour worked in 1Q21. Output per hour was 0.5% points above pre-coronavirus levels. (RTT)

Japan: Expected to deliver at least USD180bn in new stimulus. Japanese Prime Minister Yoshihide Suga is likely to unveil another economic stimulus package worth at least USD180bn within the next few months, according to a Bloomberg survey. All but one of 18 surveyed economists said the announcement would come before national elections that must be held by early fall. The median forecast was for a package of between JPY20trn and JPY30trn. (The Edge)

Taiwan: Exports increases less than expected in June. Taiwan's exports rose less than expected in June, figures from the Ministry of Finance revealed. Exports increased 35.1% YoY in June, after a 38.6% rise in May. Economists had forecast shipment to grow 30.3%. Exports of parts of electronic product, information, communication and audio-video products, base metals and articles of base metal, plastics and rubber and articles thereof, and machinery increased in June. (RTT)


Kawan Food (Outperform, TP: RM3.00): Invests RM7.3m in solar PV system at Selangor HQ. Kawan Food has invested RM7.28m in a solar photovoltaic (PV) installation at its headquarters in Pulau Indah Selangor Halal Hub. The amount covers an energy performance management system developed by Plus Xnergy Holdings called SOURCE that uses the artificial intelligence of things. This investment reduces carbon emissions, in line with global warming prevention and contributes towards corporate social responsibility and sustainability. (The Edge)

Yong Tai (Neutral, TP: RM0.31): Aims to offer Chinese Covid-19 vaccine to private sector by Sept. Yong Tai which has partnered China-based Shenzhen Kangtai Biological Products Co Ltd (SZKT) to supply Chinese-produced Covid-19 vaccine in Malaysia, is targeting to offer its vaccines to private sector by Sept or Oct. The group which has an agreement with SZKT to supply 10m doses per year with an additional option of 10m if required, has commenced its trial vaccination. It aims to obtain the approval by Sept or Oct. (The Edge)

Serba Dinamik (Neutral, TP: RM0.44): Names former Bursa official and ex-police officer as new independent directors. Serba Dinamik Holdings has appointed a former Bursa Malaysia official and a retired senior police officer as independent nonexecutive director. The oil and gas services provider said Siti Zaleha Sulaiman, the former head of corporate risk management of the stock exchange operator, has joined the group’s board effective July 7. Joining Zaleha is the former Special Branch director Datuk Seri Mohamed Farid Abu Hassan. (The Edge)

Kumpulan Perangsang Selangor: Sells three properties for RM22.5m. Kumpulan Perangsang Selangor has disposed of three properties in Johor for RM22.5m. It has disposed of three parcels of leasehold land together with factories to Wiley Development SB. The expected net gain is RM12.8m. The disposal will enable it to monetise its unutilised assets and generate cash to be channelled for other purposes including to fund planned capital expenditures in line with its business plan. It also provides an opportunity to focus on its core business (The Edge)

Senia Jaya: Issues up to 8.1m new shares via private placement. Seni Jaya Corp has announced a private placement exercise in which up to 8.1m new shares will be issued, representing 20% of the company's total number of issued shares. The placement shares should be allocated to third-party investors at an issue price to be determined and announced later. Seni Jaya is expected to raise RM18.1m in gross proceeds from the corporate exercise. (BTimes)

Sunway Property: Revises sales target upwards to RM2.2bn. Sunway Property announced an upward revision of its property sales target to RM2.2bn from its previously set target of RM1.6bn in Jan 2021, following higher contribution from its overseas projects. In Singapore, the developer recorded sales in excess of RM1bn mainly attributable to the successful launches of Ki Residences, a private condominium in Clementi, and Parc Central, an executive condominium in Tampines. According to a statement, the projects recorded take-up rates of 55% and 80%, respectively. (The Edge)


The FBM KLCI might open with a cautious mood today after UMNO withdrew support for Perikatan Nasional government with immediate effect early this morning. Overnight, the US Treasuries prices maintained gains on Wednesday, holding down yields, and two stock indices notched record highs after minutes from the Federal Reserve’s latest meeting largely confirmed market expectations. US stock prices bounced off session lows to post slight gains for the day, with the S&P 500 and tech-laden Nasdaq closing at record highs. The Dow Jones Industrial Average rose 104.42 points, or 0.3%, to 34,681.79. The broad S&P 500 gained 14.59 points, or 0.34%, to 4,358.13. The Nasdaq Composite added 1.42 points, or 0.01%, to 14,665.06. The pan-European STOXX 600 rose 0.8%, a day after the index snapped a three-day winning streak as worries about the global economy led to a bond market rally that pushed US and euro zone bond yields lower.

Back home, the FMB KLCI slipped 0.1% or 1.48 points, tracking regional market declines as market sentiment continues to be weighed by high Covid-19 cases, besides domestic political issues. The benchmark index settled at 1,530.15 points on market close. Regionally, most indices also registered declines. Nikkei 225 finished 0.96% or 276.26 points lower at 28,366.95 points, while the Hong Kong Hang Seng was down 0.4% or 112.24 points at 27,960.62 points. Across the causeway, Singapore’s Straits Times Index finished 1.65% or 52.78 points lower at 3,137.81 points.

Source: PublicInvest Research - 8 Jul 2021

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