Malaysia Daybreak | 11 June 2021 FBMKLCI Index
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Malaysia | June 11, 2021 Key Metrics Malaysia Daybreak | 11 June 2021 FBMKLCI Index 1,700 ▌What’s on the Table… 1,650 ———————————————————————————————————————————————————————————————————————————————————————— 1,600 1,550 Agribusiness – The race to boost output despite Covid-19 1,500 Malaysian palm oil stock levels rose 1.5% mom to 1.57m tonnes as at end-May 1,450 2021. This is 3% below our forecast due to higher domestic usage. Rising 1,400 Covid-19 cases have delayed the government’s decision on potentially allowing Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 Jun-21 the return of foreign workers to help alleviate labor shortage issues. This could ——————————————————————————— pose a downside risk to 3Q21 CPO supplies. We project palm oil stocks rising by FBMKLCI 7% mom to 1.68m tonnes by end-Jun 2021F. 1,579.90 -1.58pts -0.10% JUN Future JUL Future 1577 - (-0.06%) 1578.5 - (0.03%) ——————————————————————————— Gainers Losers Unchanged ▌News of the Day… ———————————————————————————————————————————————————————————————————————————————————————— 523 433 478 ——————————————————————————— • Several more party leaders granted audience by Agong Turnover • Fintech firm Sightline acquires JOINGO with Genting as investor to provide 4914.91m shares / RM2737.192m 3m avg volume traded 7200.85m shares cashless solutions to casinos 3m avg value traded RM4073.04m • Kossan finalises remediation of recruitment fees to migrant workers ——————————————————————————— Regional Indices • HSS Engineers tenders RM437m of jobs in rail, road, and water sectors FBMKLCI FSSTI JCI SET HSI • Serba Dinamik co-founder disposed of 8.5m shares amid audit issues 1,580 3,163 6,108 1,625 28,739 • Southern Cable gets shareholders' nod for transfer to Main Market ———————————————————————————————— Market Indices Close % chg YTD % chg FBMKLCI 1,579.90 (0.1) (2.9) FBM100 11,210.46 (0.0) (2.5) FBMSC 16,336.90 0.3 5.0 FBMMES 7,654.11 (0.2) (28.7) Dow Jones 34,466.24 0.1 12.6 NASDAQ 14,020.33 0.8 8.8 FSSTI 3,162.50 0.3 11.2 FTSE-100 7,088.18 0.1 9.7 SENSEX 52,300.47 0.7 9.5 Hang Seng 28,738.88 (0.0) 5.5 JCI 6,107.54 1.0 2.1 KOSPI 3,224.64 0.3 12.2 Nikkei 225 28,958.56 0.3 5.5 PCOMP 6,875.71 (0.4) (3.7) SET 1,625.27 (0.1) 12.1 Shanghai 3,610.86 0.5 4.0 Taiwan 17,159.22 1.1 16.5 ———————————————————————————————— Top Actives Close % chg Vol. (m) VSOLAR GROUP 0.020 0.0 169.8 XOX 0.045 (10.0) 155.8 MPAY 0.240 (9.4) 148.3 CUSCAPI 0.260 (5.5) 140.7 SERBA DINAMIK 0.640 2.4 98.2 PROGRESSIVE 0.200 14.3 93.5 DAGANG NEXCHANGE 0.855 1.8 86.6 FOCUS DYNAMICS 0.040 0.0 84.3 ———————————————————————————————— Economic Statistics Close % chg US$/Euro 1.2174 (0.02) RM/US$ (Spot) 4.1210 (0.02) RM/US$ (12-mth NDF) 4.1653 (0.12) OPR (%) 1.75 0.00 GOLD ( US$/oz) 1,898.71 0.01 WTI crude oil US spot (US$/barrel) 70.29 0.47 CPO spot price (RM/tonne) 4,122.00 (1.33) ———————————————————————————————————————— Ivy NG Lee Fang, CFA T (60) 3 2261 9073 E [email protected] Show Style "View Doc Map" IMPORTANT DISCLOSURES, INCLUDING ANY REQUIRED RESEARCH CERTIFICATIONS, ARE PROVIDED AT THE END OF THIS REPORT. IF THIS REPORT IS DISTRIBUTED IN Powered by the THE UNITED STATES IT IS DISTRIBUTED BY CGS-CIMB SECURITIES (USA), INC. AND IS CONSIDERED THIRD-PARTY AFFILIATED RESEARCH. EFA Platform Sources: CIMB. COMPANY REPORTS Sources: CIMB. COMPANY REPORTS Malaysia Daybreak | June 11, 2021 Global Economic News US President Joe Biden plans to buy and donate 500m doses of the Pfizer coronavirus vaccine to more than 90 countries, while calling on the world's democracies to do their part to help end the deadly pandemic, the White House said. The announcement of the vaccine donation — the largest ever by a single country — comes before Biden meets leaders of the other Group of Seven advanced economies in England. (Reuters) The Federal Reserve's balance sheet topped US$8tr for the first time, weekly data published by the US central bank on its holdings showed. At US$8tr, the Fed's stash of assets has roughly doubled since it kicked off large-scale purchases in Mar 2020 when the COVID-19 pandemic erupted and brought the economy to a near standstill. (Reuters) US consumer prices rose solidly in May, leading to the biggest annual increase in nearly 13 years as a reopening economy boosted demand for travel-related services, while a global semiconductor shortage drove up prices for used motor vehicles. The consumer price index increased 0.6% last month after surging 0.8% in Apr, which was the largest gain since Jun 2009. Food prices rose 0.4%, but gasoline declined for a second straight month. In the 12 months through May, the CPI accelerated 5.0%. That was the biggest yoy increase since Aug 2008 and followed a 4.2% rise in Apr. (Reuters) British Prime Minister Boris Johnson expects the Group of Seven to agree to donate 1bn COVID-19 vaccine doses to poorer countries, and help innoculate the world by the end of next year. (Reuters) Japanese Prime Minister Yoshihide Suga is likely to compile another big economic stimulus package before calling a snap election in Sep, the Nikkei newspaper said on Thursday, although most major economies have scaled back crisis-mode policies to combat the coronavirus. Opposition parties have called for a package sized around ¥30tr (US$274bn), a proposal Suga brushed aside in a debate with their leaders on Wednesday. (Reuters) Japan's wholesale prices rose at their fastest annual pace in 13 years reflecting higher commodity costs, data showed on Thursday, a sign global inflationary pressures are pinching firms already struggling amid the coronavirus pandemic. The corporate goods price index (CGPI), which measures the prices companies charge each other for their goods, rose 4.9% in May from a year earlier, Bank of Japan data showed on Thursday, more than a median market forecast for a 4.5% increase. (Reuters) China's central bank governor Yi Gang has said he expects the country's annual average inflation to be below 2% this year, while cautioning against both inflationary and deflationary pressure amid economic and macro policy uncertainty. China will stick with implementing normal monetary policy, and will focus on the impact from structural changes on price stability, Yi told a financial forum in Shanghai. (Reuters) The Chinese and U.S. commerce ministers agreed to push forward trade and investment links in their first call since the start of the Biden administration. Chinese Commerce Minister Wang Wentao and his counterpart Gina Raimondo “agreed to promote the healthy development of pragmatic cooperation in trade and investment,” in a phone call Thursday morning China time. The two “exchanged views frankly and pragmatically on relevant issues and mutual concerns,” according to a Chinese government statement. (Bloomberg) 2 Malaysia Daybreak | June 11, 2021 Malaysia Economic News The government should fix the ceiling price of bottled cooking oil for local consumption to prevent excessive price hikes, said Asia e University’s economic analyst, Prof Datuk Dr Shazali Abu Mansor. He said cooking oil is a basic essential household item and among the main ingredients in the economic sector, especially the hotel, restaurant and cafe (HoReCa) segment. As such, he said, any drastic price increase would directly impact the public for their daily use of the commodity and also affect household and business spending. (Bernama) A total of 15,000 volunteers from the Women, Family and Community Development Ministry’s (KPWKM) agencies will be mobilised to assist in the vaccination process, said its Minister Datuk Seri Rina Mohd Harun. In a statement, she said the volunteers involved are from the Social Welfare Department (JKM), JKM's home help service, Prihatin Negara squad, Waja squad, Women's Development Department and the National Welfare Foundation (YKN). (Bernama) AstraZeneca says it is working closely with Southeast Asia governments to ensure its Covid-19 vaccine is supplied "as quickly as possible" after reported delays in deliveries of orders from a Thai plant owned by the country's king. Malaysia and Taiwan this week became the latest in the region to warn they expect delays in deliveries of AstraZeneca vaccines manufactured in Thailand. (Reuters) A six-month automatic loan moratorium that is interest-free and without any condition should be extended to all borrowers, according to the SME Association of Malaysia. In a statement, the association's president Datuk Michael Kang said that with the full-scale Movement Control Order in place, at least 40% of small and medium enterprises (SMEs) are expected to close. He also augured that many workers will see job loss in the next few months, especially in Jun and Jul. (The Edge Markets) A total of 154,866 doses of vaccine were administered on 9 Jun — the highest so far — and also marked the second consecutive day the country breached the 150,000 level, according to latest data from the Covid-19 Vaccine Supply Access Guarantee Special Committee (JKJAV). 114,671 individuals had received the first dose, while the remaining 40,195 individuals received the second jab as of 9 Jun. (The Edge Markets) Political News Malaysia's daily number of confirmed Covid-19 cases dropped to 5,671 yesterday, according to Health director-general Tan Sri Dr Noor Hisham Abdullah. Selangor recorded 1,510 confirmed positive cases, down by one third from 2,291 the prior day.