https://www.nst.com.my/news/nation/2021/05/686862/call-mco-red-zone-states-curb-spread-covid-19

Proposal for the MCO to be imposed in Selangor, Kuala Lumpur, Penang, Johor, Kedah and Sarawak had been submitted.
-----------------------------------------------------------
https://www.nst.com.my/news/nation/2021/05/686862/call-mco-red-zone-states-curb-spread-covid-19

Proposal for the MCO to be imposed in Selangor, Kuala Lumpur, Penang, Johor, Kedah and Sarawak had been submitted.
-----------------------------------------------------------

https://www.nst.com.my/news/nation/2021/05/686862/call-mco-red-zone-states-curb-spread-covid-19

Comfort is being overlooked, just take a look the figures below-

Careplus is trading at a PE of 12 - last quarter Rm42 mil.

Comfort is trading at a PE of 5.4 - last quarter Rm138 mil

Comfort is deeply undervalued compared to its closest peer ie Careplus.

Mr DIY valued more than Genting Brehad &. RHB Bank Bhd

Foreign investors, IB's & owners -Tan Brothers collectively own close to 95 % of the paid up capital of Mr DIY.

With a free float of less than 5% - it is easy to push the price up further.

For the record, its market capitalisation is well above that of many established banks/Casinos as listed below :-

1-RHB Bank Bhd,
2-Alliance Bank (M) Bhd,
3-Affin Bank Bhd,
4-AMMB Holdings Bhd and
5-BIMB Holdings Bhd.
6- Genting Malaysia
7-Genting Berhad

Mr DIY’s market cap had reached RM26.6 billion as at April 26. In terms of the banks that are lagging behind the retailer in market value, RHB Bank’s market cap came in the closest at RM21.6 billion.

Mr DIY’s price-earnings ratio (PER) is 78 times.

More upside ? You decide.

Supermax Corporation Berhad

1. Cash within next 5 years: RM15.1 billion

- Cash on hand = RM3.6 billion

- Estimated net profit CY21 = RM4.9 billion
- Estimated net profit CY22 = RM3.0 billion
- Estimated net profit CY23 = RM1.4 billion
- Estimated net profit CY24 = RM1.2 billion
- Estimated net profit CY25 = RM1.0 billion

2. Total announced capex = RM3.6 billion

- Malaysian factories = RM1.4 billion
- US factory = RM2.2 billion

That's approximately RM11.5 billion -net cash. over the said period. In fact, the company can cover its announced capex with the cash on hand it has, and any future profits can be distributed as dividend fully.

The company doesn't have a dividend payout policy though.

Supermax is set to declare a 25 sen dividend this quarter- to reward loyal shareholders, boost the share price and remain in the Composite Index.

Dozens of Cases of Indian COVID Strain Found in Israel, Including in Vaccinated Patients
---------------------------------------------------------------
The Health Ministry has identified 41 new cases of the Indian coronavirus variant in Israel, including four in people who have been vaccinated against COVID-19.

Israel's genomic sequencing system found that 24 of those infected with the variant, which experts say may be more contagious than other variants, had returned recently from abroad. The other 17 contracted it via community transmission, including five schoolchildren. The Health Ministry and the IDF Home Front Command are carrying out widespread testing at the schools where the children are enrolled.

https://www.haaretz.com/israel-news/.premium-dozens-of-cases-of-indian-covid-variant-found-in-israel-including-among-vaccinated-1.9758121

A Lockdown soon? Data points towards that direction.
------------------------------------------------------
S'gor MB calls for special meeting of state National Security Task Force to address recent spike in Covid-19 cases

By TARRENCE TAN
NATION
Thursday, 29 Apr 2021

PETALING JAYA: Following the recent spike in Covid-19 cases in the state, Mentri Besar Datuk Seri Amirudin Shari has called the National Security Task Force (Selangor) to hold a special meeting on Friday (April 30).

Amiruddin, in a tweet on Thursday (April 29), said the special meeting will relook at the implementation of the conditional movement control order in Selangor in an effort to curb recent spikes in daily Covid-19 figures.

Feb 27 KYY also posted this Bro-

As a co-founder of Rubberex, I was told that the demand for glove is still surging due to Covid 19 pandemic despite massive vaccination. Moreover, many more medical workers are wearing glove to do the injection for safety. Additional gloves are required.

This morning, I spoke to Mr Ken Cheang, CEO of Comfort Gloves to ask him if he could sell some gloves to an old friend who is a trader. He said that all his production is already presold for the whole year. If my friend wants to place an order, he can only supply in 2022 but he cannot fix the selling price now as the selling price is increasing constantly due to the surge in demand for gloves.

Uncle KYY'S last advise/sermon - Here you go-

"For no logical reason, all the glove stocks have been dropping in the last 4 months while the companies are making more and more profit. It is so ridiculous and defies investment logic.

Supermax first quarter ending Sept EPS 30.58 sen and 2nd quarter ending Dec 41.14 sen, totalling 71.72 sen for half year. Assuming each of the 3rd and 4th quarter EPS is 40.14 sen, its annual EPS will be Rm 1.54 per share.

Based on PE 10, my target price is Rm 15.40 which is easily achievable.

Supermax cannot continue to drop for whatever reason. Sooner or later, it must rebound. It will shoot up very rapidly to reach my target price.

My last advice is to get ready to buy back at cheaper prices. Even if you buy at current price level, you should not be afraid because the down side risk is minimum. "

From: Inside Story

Will India’s COVID-19 crisis spell disaster for the world?

https://www.aljazeera.com/program/inside-story/2021/4/28/will-indias-covid-19-crisis-spell-disaster-for-the-world

Will India’s COVID-19 crisis spell disaster for the world?

Calls for global help to contain outbreak in the world’s biggest vaccine maker.

India’s COVID-19 emergency has reached critical levels.

Hospitals are out of beds and oxygen, while crematoriums do not have space for the dead.

https://www.aljazeera.com/program/inside-story/2021/4/28/will-indias-covid-19-crisis-spell-disaster-for-the-world

'Interstate travel can only be considered perhaps towards end of the year'

Author: savemalaysia | Publish date: Thu, 29 Apr 2021

KUALA LUMPUR: The government might be able to consider lifting the interstate travel ban in the third or fourth quarter of the year, when a sizeable percentage of the population has been vaccinated.

The hospitality and gaming sectors will be badly affected.

India's double mutant Covid variant found in 17 countries- absolutely scary.

COVID19 new mutation is giving false negatives in nasal swaps. The virus is now hitting straight into the lungs. It is carrying no symptoms like fever or cough. Just body ache, weakness, loss of appetite. Patients go from mild condition to extreme life and death situation within 8 to 10 hours. Patients that have previously recovered from COVID-19 last year or so are at higher risk as their respiratory system is still not fully recovered. When they get the new mutation their fatality rate is much higher.

We are receiving data from across India and it is not just alarming, it is an absolute disaster of historical proportions. We suspect Pakistan, Afghanistan and Bangladesh will all now be experiencing the new mutations of virus and face a dire situation just like India.

Our colleagues in small towns across India especially North Eastern regions are saying it is a battle we have already lost. It is now damage control and save as many lives as possible. We have seen 400 plus children just in our district died within 10 to 12 hours.

This strain is absolutely vicious.

India's double mutant Covid variant found in 17 countries: WHO
----------------------------------------------------------
Published on: April 28, 2021

Tedros Adhanom Ghebreyesus, Director General of the World Health Organization
The double mutant Covid variant -- identified as B1617 -- that was first detected in India, has spread to 'at least 17 countries', the World Health Organization (WHO) has said.

Up till April 27, B1617 variant had been detected in over 1,200 sequences uploaded on the open-access database GISAID (the Global Initiative on Sharing Avian Influenza Data) "from at least 17 countries", the global health agency said in its weekly epidemiological update on the pandemic. Most sequences were uploaded from India, the UK, US and Singapore, it said on Tuesday.

https://www.indiatvnews.com/news/world/india-double-mutant-covid-variant-found-in-17-countries-who-701116

Covid-19 (April 28): New cases breach 3k mark.

The Health Ministry reported 3,142 new Covid-19 cases today, marking the first time new cases had reached the 3,000 mark since Feb 21. Selangor reported 1,019 new cases, essentially rolling back all the progress made over the past two months.

The Klang Valley accounts for 46.9 percent of all new cases.

Stay safe folks.

A PAT fo RM 1.48 billion is expected to be announced by mid May.

My TP for SPMX is RM7.80 by 24th May 2021.

Supermax Corporation Berhad

1. Cash within next 5 years: RM15.1 billion

- Cash on hand = RM3.6 billion

- Estimated net profit CY21 = RM4.9 billion
- Estimated net profit CY22 = RM3.0 billion
- Estimated net profit CY23 = RM1.4 billion
- Estimated net profit CY24 = RM1.2 billion
- Estimated net profit CY25 = RM1.0 billion

2. Total announced capex = RM3.6 billion

- Malaysian factories = RM1.4 billion
- US factory = RM2.2 billion

That's approximately RM11.5 billion -net cash. over the said period. In fact, the company can cover its announced capex with the cash on hand it has, and any future profits can be distributed as dividend fully.

The company doesn't have a dividend payout policy though.

Supermax is set to declare a 25 sen dividend this quarter- to reward loyal shareholders, boost the share price and remain in the Composite Index.

@ RISK8888- Well said. !

SPX fundamental no change, best QR in history going announce soon, very excited how much dividend going to declare. How about demand after 2022? No one knows. But confirm supermax pocket is full of cash NOW!!!

Israel, take 5 month to achieve immunity, such a small and rich country take 5 months. How long it take for the whole world to achieve that? Look at our country, it take 3months to vaccine 3% of the population, means on average 1% per month, in the end it will take 100 months (8 years) to vaccines entire malaysian.

These are facts happening today and we still not sure whether Israel need another dose to boost immunity after one year, or it may end up taking vaccine annually.

Still worry?

Fundamental doesn't lie.

Mr DIY valued more than Genting Brehad &. RHB Bank Bhd

A CORNERED stock can be easily Manipulated
----------------------------------------------
Foreign investors, IB's & owners -Tan Brothers collectively own close to 95 % of the paid up capital of Mr DIY.

With a free float of less than 5% - it is easy to manipulate and push the price up further.

For the record, its market capitalisation is well above that of many established banks/Casinos as listed below :-

1-RHB Bank Bhd,
2-Alliance Bank (M) Bhd,
3-Affin Bank Bhd,
4-AMMB Holdings Bhd and
5-BIMB Holdings Bhd.
6- Genting Malaysia
7-Genting Berhad

Mr DIY’s market cap had reached RM26.6 billion as at April 26. In terms of the banks that are lagging behind the retailer in market value, RHB Bank’s market cap came in the closest at RM21.6 billion.

Mr DIY’s price-earnings ratio (PER) is 78 times.

Gloves are poised to do well for long time.

Key takeaways from the weekly flows ending 23 Apr 2021-CGS-CIMB

 Local institutional investors stay as the top net buyer for second week

They raised their net buy position by 102% wow to RM235m of Malaysian equities last week, making them the largest net buyer of Malaysia equities for the second consecutive week. Retail investors remain in the second-largest net buyer spot last week.

Foreign investors were net sellers last week and their net sell flows jumped 108% wow to RM490m.


 Glovemakers continue to hog. the top three net buy list of local institutional investors

Local institutional investors’ top three net buy stocks last week were Hartalega, Top Glove and Supermax but they were net sellers of Kossan. Kossan was the second-largest net buy stock by foreign institutional investors last week and they were net sellers of Hartalega and Top Glove (their top two net sells).

Top Glove was also among the top 2 net sell stocks by both local retail and local nominee investor groups.Local institutional investors were the largest net buyers in the healthcare sector (+4% wow) while local retail and foreign investors were net sellers of the healthcare sector last week. In the energy sector, foreign investors were the largest net sellers while local nominees were the largest net buyers.

Supermax, Top Glove, Hartalega, Kossan: Retailers Throwing, Institutions Collecting
------------------------------------------------------------------------------------
Author: Ben Tan | Publish date: Tue, 27 Apr 2021, 1:28 PM

Last week I shared data from the CGS-CIMB weekly fund flow report that showed local institutions were major buyers of glove stock, while retail investors were major sellers (especially of Top Glove and Supermax) (see here). The trend has persisted during this past week (19-23 April), and with retailers throwing and institutions collecting glove stocks.


https://klse.i3investor.com/blogs/bursainvestments/2021-04-27-story-h1564166498-Supermax_Top_Glove_Hartalega_Kossan_Retailers_Throwing_Institutions_Col.jsp

I guess Karma has already hit him as he seem to have lost his wealth and also his marbles/sanity. Sad case..

Uncle KYY'S last advise/sermon - Here you go-

"For no logical reason, all the glove stocks have been dropping in the last 4 months while the companies are making more and more profit. It is so ridiculous and defies investment logic.

Supermax first quarter ending Sept EPS 30.58 sen and 2nd quarter ending Dec 41.14 sen, totalling 71.72 sen for half year. Assuming each of the 3rd and 4th quarter EPS is 40.14 sen, its annual EPS will be Rm 1.54 per share.

Based on PE 10, my target price is Rm 15.40 which is easily achievable.

Supermax cannot continue to drop for whatever reason. Sooner or later, it must rebound. It will shoot up very rapidly to reach my target price.

My last advice is to get ready to buy back at cheaper prices. Even if you buy at current price level, you should not be afraid because the down side risk is minimum. "

Interesting article.

https://klse.i3investor.com/blogs/lkpiew/2021-04-26-story-h1564139772-The_heyday_of_Gloves_over.jsp

Uncle Koon cut the Crap and start collecting COMFORT- the most undervalued 2nd tier Glove stock.

Feb 27 KYY also posted this- -

As a co-founder of Rubberex, I was told that the demand for glove is still surging due to Covid 19 pandemic despite massive vaccination. Moreover, many more medical workers are wearing glove to do the injection for safety. Additional gloves are required.

This morning, I spoke to Mr Ken Cheang, CEO of Comfort Gloves to ask him if he could sell some gloves to an old friend who is a trader. He said that all his production is already presold for the whole year. If my friend wants to place an order, he can only supply in 2022 but he cannot fix the selling price now as the selling price is increasing constantly due to the surge in demand for gloves.

Turkey announces "full lockdown" from April 29 to curb COVID spread

https://www.reuters.com/world/middle-east/turkeys-erdogan-adopts-full-closure-until-may-17-over-covid-19-2021-04-26/

Rm1.48 billion is conversation & realistic Bro.- and its bloody good for just 3 months- annualise it and you get a PAT of around RM6 billion per annum.

Fantastic!

SUPER to the MAX

SUPREMAX will pause for a well deserved rest on Thursday- and will resume its uptrend on Friday.

A jaw dropping Quarterly PAT of RM1.48 billion is set to be announced in early May

Be patient-Folks.

---------------------------------------------
Posted by vanbasten9 > Apr 26, 2021 7:31 PM | Report Abuse

Supermax will pause for breath one dont worry

Top Glove resolves all 11 ILO forced labour indicators
----------------------------------------------------
theedgemarkets.com

April 26, 2021 14:05 pm +08

KUALA LUMPUR (April 26): Top Glove Corp Bhd has resolved all 11 International Labour Organisation (ILO) indicators of forced labour, the glove manufacturer said in an exchange filing today.

The group highlighted that the resolution of the 11 ILO indicators of forced labour has been verified by independent international UK consultant Impactt Ltd in its report dated April 22.

“Top Glove has engaged Impactt in July 2020 to advise on measures for improving the company’s labour policies and practices,” it said.

TG- All Labour issues settled & independently verified-

Time for the USA clowns to lift the WRO .

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=114176&name=EA_GA_ATTACHMENTS

RSS net positions

SHORTIES are in DEEP shit- Still refused to close their position.

A good roasting of the SHORTIES is imminent.

https://www.bursamalaysia.com/misc/missftp/sblnt/NetShortPosition20210423.pdf

Thailand ramps up efforts to rein in Covid-19, deaths hit daily record of 11.
--------------------------------------------

Thailand reported 2,438 new coronavirus cases and 11 new deaths on Sunday - a second straight day of record deaths.


https://www.thestar.com.my/aseanplus/aseanplus-news/2021/04/25/thailand-ramps-up-efforts-to-rein-in-covid-19-deaths-hit-daily-record-of-11

Vaccine shortage holds emerging markets back from global rally
------------------------------------------------------
Author: Tan KW | Publish date: Mon, 26 Apr 2021

SINGAPORE: As the pandemic spins out of control from India to Argentina, the divisions between emerging and developed markets are deepening.

Developing-nation stocks have lagged the rest of the world since the middle of March partly on concern that vaccine shortages and delays will slow economic growth.

Recovery stocks will take a very long time to recover.


https://klse.i3investor.com/blogs/kianweiaritcles/2021-04-26-story-h1564136924-Vaccine_shortage_holds_emerging_markets_back_from_global_rally.jsp

Vaccine shortage holds emerging markets back from global rally
------------------------------------------------------
Author: Tan KW | Publish date: Mon, 26 Apr 2021

SINGAPORE: As the pandemic spins out of control from India to Argentina, the divisions between emerging and developed markets are deepening.

Developing-nation stocks have lagged the rest of the world since the middle of March partly on concern that vaccine shortages and delays will slow economic growth.

https://klse.i3investor.com/blogs/kianweiaritcles/2021-04-26-story-h1564136924-Vaccine_shortage_holds_emerging_markets_back_from_global_rally.jsp

Feb 27 KYY also posted this- -

As a co-founder of Rubberex, I was told that the demand for glove is still surging due to Covid 19 pandemic despite massive vaccination. Moreover, many more medical workers are wearing glove to do the injection for safety. Additional gloves are required.

This morning, I spoke to Mr Ken Cheang, CEO of Comfort Gloves to ask him if he could sell some gloves to an old friend who is a trader. He said that all his production is already presold for the whole year. If my friend wants to place an order, he can only supply in 2022 but he cannot fix the selling price now as the selling price is increasing constantly due to the surge in demand for gloves.

Germany faces lockdown until June as they struggle to contain infections,
--------------------------------------------------------------
Author: Tan KW | Publish date: Sun, 25 Apr 2021,

BERLIN - Germany's coronavirus infection rate rose at the weekend despite stricter restrictions and Finance Minister Olaf Scholz said he did not expect moves to ease curbs before the end of May.

"We need a timetable how to get back to normal life, but it must be a plan that won't have to be revoked after just a few days," Scholz told Bild am Sonntag.

The federal government should be able to outline "clear and courageous opening steps" for the summer by the end of May, allowing restaurants to adjust reopening plans and citizens to plan holidays, he said.

Scholz said the steps would also clarify when visits to concerts, theatres and soccer stadiums would be possible.

Chancellor Angela Merkel on Saturday urged Germans to stick to tougher rules imposed in areas with high infection rates, saying measures imposed at the weekend were needed to break a third wave of infections.

Germany is struggling to contain infections, complicated by the more contagious B117 variant that first emerged in Britain. It also follows a relatively slow start to Germany's vaccination campaign.

https://s3.tradingview.com/snapshots/k/kYX5jBEu.png

SPMX crossed all the BUY signals.
-----------------------------------
1. Golden Cross Buy

2. Daily MACD Buy signal and

3. Weekly MACD Buy.

Never fight an uptrend-ing stock.

Trade/invest at your own risk.

Posted by pBlue > Apr 25, 2021 7:39 AM | Report Abuse

It isn't under control. The case number in the UK and US has plateaued. So despite more and more people being vaccinated every day, the number of covid cases remains the same.

If you look at the composition of covid variants within the two nation, it is rapidly changing to contain more resistant variants. Give it a month and you will see numbers rising again. What is of concern is the Indian variant.

As for gloves, it is more about type of gloves latex vs nitrile vs PVC vs PE. Nation of manufacture doesn't matter so much.

And Malaysia has economy of scale. So our gloves are cheaper than China 's for the same type.

@Vanbasten- absolutely bro- We didn't star the Fire- or rather mania- fantastic song by Billy Joel.

Many Thanks Bro. Calvin.


YOU BETTER NOT MISS THE BEST KEPT SECRET OF ALL

A COMING SUPER SUPER SUPERRRRRRRRRR BULL FOR ALL PALM OIL STOCKS LIKE NEVER BEFORE

THIS WILL BE A ONCE A CENTURY FAMINE!!

I will pray that with god's providence and mighty power that this (famine ) does not happen.

Shalom.

Calvin -Felxidynamics is worth looking at as it is related to the glove industry. Currently it is out of the radar of the investing public. Thanks Bro .. god bless.

@king36

The writer is referring to VALUATION iin terms of EARNINGS ie PE valuation. Yes valuation wise GLOVES are currently cheap ie the BIG 4- Harta, Kossan, TG & Supermax. ALL are trading at PE of less than 10.

They are obviously not referring to AT which is rather expensive valuation wise as they currently running at a loss and not sold a single glove.

Please be guided accordingly.

Thanks.

Should investors pick cheap glove stocks or expensive tech stocks?
------------------------------------------------------------------

KUALA LUMPUR (The Edge April 24): Glove and technology stocks on Bursa Malaysia have been outperformers since the Covid-19 outbreak. Given the global shortages of rubber gloves and semiconductor chips, both sectors are still being monitored closely by investors.

Judging from their historical price-earnings ratios (PERs), it is fair to suggest that the valuations of glove stocks appear to be cheap, while those of semiconductor stocks seem expensive.

As it is, three of the Big Four rubber glove makers, namely Top Glove Corp Bhd, Kossan Rubber Industries Bhd and Supermax Corp Bhd, as well as their smaller rivals are currently trading at SINGLE digit PERs compared with over 100 times at their peaks last year.

In comparison, the Big Four outsourced semiconductor assembly and test (OSAT) companies — Inari Amertron Bhd, Malaysian Pacific Industries Bhd, Unisem (M) Bhd and Globetronics Technology Bhd — are trading at historical PERs of between 30 times and 50 times.

Meanwhile, ViTrox Corp Bhd, Pentamaster Corp Bhd, Mi Technovation Bhd and Greatech Technology Bhd — the Big Four automated test equipment (ATE) manufacturers — are trading even higher at historical PERs of 60-80 times.

Yet this may not tell the whole story as investors also look at the forward PERs, as past earnings do not always correlate with future earnings.

So, what lessons should investors learn from the glove mania last year, and more importantly what are the mistakes that they should not repeat in the tech rally this year?
-------------------------------------------------------------

Is it wise to chase Tech stocks at this high valuations.?

Beautifully said Hazzyy- LOL.

Posted by Hazzyy > Apr 24, 2021 7:07 PM | Report Abuse

$4 soon? Soon you will lose your sanity .

Even a parrot knows when to stop talking.

Should investors pick cheap glove stocks or expensive tech stocks?
------------------------------------------------------------------

KUALA LUMPUR (The Edge April 24): Glove and technology stocks on Bursa Malaysia have been outperformers since the Covid-19 outbreak. Given the global shortages of rubber gloves and semiconductor chips, both sectors are still being monitored closely by investors.

Judging from their historical price-earnings ratios (PERs), it is fair to suggest that the valuations of glove stocks appear to be cheap, while those of semiconductor stocks seem expensive.

As it is, three of the Big Four rubber glove makers, namely Top Glove Corp Bhd, Kossan Rubber Industries Bhd and Supermax Corp Bhd, as well as their smaller rivals are currently trading at SINGLE digit PERs compared with over 100 times at their peaks last year.

In comparison, the Big Four outsourced semiconductor assembly and test (OSAT) companies — Inari Amertron Bhd, Malaysian Pacific Industries Bhd, Unisem (M) Bhd and Globetronics Technology Bhd — are trading at historical PERs of between 30 times and 50 times.

Meanwhile, ViTrox Corp Bhd, Pentamaster Corp Bhd, Mi Technovation Bhd and Greatech Technology Bhd — the Big Four automated test equipment (ATE) manufacturers — are trading even higher at historical PERs of 60-80 times.

Yet this may not tell the whole story as investors also look at the forward PERs, as past earnings do not always correlate with future earnings.

So, what lessons should investors learn from the glove mania last year, and more importantly what are the mistakes that they should not repeat in the tech rally this year?
-------------------------------------------------------------

Is it wise to chase Tech stocks at this high valuations.?

Gobal virus resurgence threatens vigorous growth momentum
---------------------------------------------------------------
BLOOMBERG | Publish date: Sat, 24 Apr 2021

The new case spikes represent a reality check for the world economy
--------------------------------------

THE renewed surge in Covid-19 infections is threatening to further divide the world economy between the rich and poor, potentially damaging overall global growth if the fresh outbreaks spread or if key sources of demand falter.

More people were diagnosed with Covid-19 last week than any other since the pandemic began. The World Health Organisation this week warned that new infections are increasing everywhere except Europe, led by rocketing numbers in India with cases also rising in Argentina, Turkey and Brazil.

That’s casting a shadow over a previously vigorous global economic rebound given that failure to control the virus or get vaccines distributed evenly risks driving new mutations, first in emerging markets and then on to developed nations that had been beating the pandemic back.

“The new case spikes represent a reality check for the world economy as it is clear that the pandemic is nowhere close to being over, ” said Tuuli McCully, head of Asia-Pacific economics at Scotiabank. “Many lower-income economies continue to face severe Covid-19 related challenges and have a long road ahead before they are back to ‘normalcy.’”

Signs of Jitters
---------------------
Markets are showing signs of jitters. A gauge of stocks in Asia has lagged global peers this month, while the Indian rupee is this week’s worst-performing currency in the region. Investors have sought out traditional havens like the Japanese yen, and rewarded those with better track records of managing the outbreak such as the Israeli shekel, Taiwanese dollar and the British pound.

The spread of cases threatens what’s forecast to be a V-shaped recovery for global growth, led by the US and China. The IMF currently expects the world economy to grow 6% this year, the most in four decades of data. But it knows the longer the pandemic runs the harder it will be to meet that forecast.



Extracted from Bloomberg