HEADLINES

Economy

US: Thousands of laid-off US government workers are flooding a shrinking job market. Thousands of private government consultants laid off during the Trump administration's cost-cutting crusade are increasingly flooding a shrinking labour market. Job postings among seven of the 10 consulting companies singled out by the General Services Administration for contract cuts are down about 27% since 2023, and about 11% from a year ago. Booz Allen Hamilton Holding Corp and Deloitte LLP had almost 1,200 and 8,200 fewer openings than last year, respectively. Both announced job cuts this quarter. Federal government employment shrank by 22,000 in May, bringing jobs lost since Jan to 59,000. That excludes those on paid leave or receiving ongoing severance pay. (Bloomberg)

EU: Consumer confidence unexpectedly erodes in June. Euro area consumer sentiment deteriorated unexpectedly in June following a strong improvement in the previous month, amid the increased uncertainty due to trade tariffs and the ongoing conflict in the Middle East. The flash consumer confidence index for Eurozone fell to -15.3 from a revised -15.1 in May. Economists had forecast an improvement to -15.0 from the original May reading of -15.2. The corresponding indicator for the EU also dropped by 0.2% to -14.8 in June. The consumer morale continues to remain well below the long-term average. (RTT)

EU: French Manufacturing sentiment weakens in June. French manufacturing confidence weakened slightly in June, largely reflecting the deterioration in order books, past production and personal production outlook. The manufacturing sentiment index fell to 96 from 97 in May, while it was forecast to remain unchanged at 97. The balance of opinion associated with general production prospects in the industry remained stable at -13. Meanwhile, the personal production outlook indicator dropped to -1 from zero. Manufacturers' assessment about order books softened in June. The overall order book balance stood at -24 compared to -23 in May. Likewise, the foreign order book balance slid to -17 from -16. The past evolution of workforce size decreased to -4 and moved closer to its average. The one relating to the expected evolution of workforce size was unchanged at -2. (RTT)

EU: Croatia Jobless rate eases to 4.1%. Unemployment in Croatia dropped further in May amid increases in the labor force as well as in the number those with jobs. The registered jobless rate fell to 4.1% from 4.6% in April. The number of unemployed decreased to 73,231 persons from 81,497 persons in the previous month. The employment figure grew to 1.73m from 1.70m in April. The labor force grew to 1.80m from 1.78m people in the previous month. The average gross monthly net earnings per persons in April decreased 1.2% from March to EUR1,439. Gross earnings dropped 1.4%. Net earnings grew a real 5.4% YoY and gross pay was 5.8% higher from the same month last year. In April, hourly net earnings per person decreased 4.5% from March, but grew 8.9% YoY. (RTT)

China: Holds loan prime rates as expected. The People's Bank of China left its benchmark interest rate unchanged after reducing it last month. The central bank maintained its one-year loan prime rate at 3.0%. Likewise, the five-year LPR, the benchmark for mortgage rates, was retained at 3.50%. The bank had cut its both LPRs by 25 bps each in Oct 2024 and 10 bps each in May. The PBoC fixes the LPR monthly based on the submission of 18 designated banks. However, Beijing has influence over the fixing. The LPR replaced the traditional benchmark lending rate in Aug 2019. The economy is likely to achieve its around 5% growth target in the 1H of the year amid easing trade tensions. (RTT)

Japan: Core inflation hits two-year high, keeps rate-hike bets alive. Japan's core inflation hit a more than two-year high in May and exceeded the central bank's 2% target for well over three years, keeping it under pressure to resume interest rate hikes despite economic headwinds from US tariffs. The data underscores the challenge the BOJ faces in juggling pressure from sticky food inflation and risks to the fragile economy from uncertainty over US President Donald Trump's trade policy. (Reuters)

UK: Consumer confidence rises, extending 'fragile' rebound. The confidence of UK consumers improved for a second straight month, extending a rebound that's at risk of being derailed as war in the Middle East and higher oil prices cloud the economic outlook. GfK's gauge of sentiment rose by two points to -18 in June. It's the most positive reading since Dec and was slightly better than had been expected by economists, with the median forecast predicting it would be unchanged. But confidence remains "fragile", with households contending with rising consumer prices, higher taxes and signs of a worsening labour market. (Bloomberg)

Markets

Wasco (Neutral, TP: RM0.85): Plans spin-off listing of biomass energy unit on Bursa. Wasco is planning to list its wholly owned unit, Wasco Greenergy, which operates biomass and steam energy businesses, on the Main Market of Bursa Malaysia.The IPO will involve up to 150m shares, comprising an offer for sale of up to 75m shares by selling shareholders Wasco and Tema Energy Ventures SB, and a public issue of 75m new shares. The offering represents 30% of Greenergy's enlarged issued share capital of 500m shares. (The Edge)

SD Guthrie (Neutral, TP: RM4.89): To co-develop 2,000 acres on Carey Island into industrial, logistics hub with Sime Darby Property. Palm oil producer SD Guthrie formerly known as Sime Darby Plantation, and its sister company Sime Darby Property have entered into an agreement to jointly develop up to 2,000 acres of land on Carey Island, Selangor. The two parties said the agreement, following discussions that began in 2023, will be formalised through the establishment of a special purpose vehicle which aims to support the Selangor state government's aspiration to transform Carey Island into an industrial and logistics hub. (The Edge)

Maxim Global: Files appeal to overturn court order halting high-rise project. Maxim Global has filed an appeal to overturn a stay order granted by the High Court this week that temporarily halts its high-rise residential project here. In a filing on Friday, Maxim said the stay applied to the development order issued by the Kuala Lumpur City Hall (DBKL) back in Oct 2017 for the development of five blocks of 30-storey apartments. The petitioner is challenging the development order on the grounds that it allegedly conflicts with the Kuala Lumpur Structure Plan 2020 and the Kuala Lumpur City Plan 2020. (The Edge)

Gadang: Bags RM92.5m contract to widen KL-Karak Highway. Gadang Holdings' wholly owned subsidiary, Gadang Engineering (M) SB, has secured a RM92.5m contract to widen the Kuala Lumpur-Karak Highway. Gadang said it had accepted a letter of award from AFA Construction and Engineering SB to undertake earthworks and associated works for Package 2A of the Kuala Lumpur-Karak Highway widening project from KM39.00 to KM61.50. The contract is for 18 months and is scheduled for completion in 4Q 2026. (StarBiz)

Ecobuilt: Announces CEO resignation, appoints successor. Ecobuilt Holdings announced the resignation of its CEO Lim Chin Yen effective immediately. In a filing with Bursa Malaysia, the construction company said Lim, 48, resigned "to dedicate more time to family and to pursue personal interests." The company stated that there was no disagreement between him and the board of directors, and that no matters arising from his resignation needed to be brought to shareholders' attention. (StarBiz)

Vanzo: Taps Taiwanese market via local distributor, Watsons. Vanzo Holdings is making its entry into Taiwan's fast-moving consumer goods (FMCG) market by appointing Taiwan-based Xishangxi International Marketing Co Ltd (XIMCL) as its exclusive distributor. In a bourse filing, the air fragrance maker said its wholly-owned subsidiary Vanzo Asia SB (VASB) has signed an agreement with XIMCL to distribute VASB products through both online platforms and physical retail stores via health and beauty retailer Watsons Taiwan. (The Edge)

MARKET UPDATE

The KLCI might open lower on US strike on Iran nuclear sites while US stocks drifted to a mixed finish on Friday in a quiet return to trading following the Juneteenth holiday. The S&P 500 fell 0.2% to close out a second straight week of modest losses. The Dow Jones Industrial Average added 35 points, or 0.1%, and the Nasdaq composite fell 0.5%. On Wall Street, Kroger rose 9.8% after the grocer reported a better profit for the latest quarter than Wall Street had forecast. It also raised its forecast for an underlying measure of revenue for the full year. But while Chief Financial Officer David Kennerley said it's seeing positive momentum, the company is also still seeing an uncertain overall economic environment. CarMax climbed 6.6% after the auto dealer reported a stronger profit for the latest quarter than analysts expected. The company said it sold nearly 6% more used autos during the quarter than it did a year earlier. On the losing end of Wall Street was Smith & Wesson Brands, the maker of guns. It tumbled 19.8% after reporting profit and revenue for the latest quarter that fell just shy of analysts' expectations. In stock markets elsewhere, indices were mixed across Europe and Asia. Tokyo's Nikkei 225 index slipped 0.2% after Japan reported that its core inflation rate, excluding volatile food prices, rose to 3.7% in May, adding to challenges for Prime Minister Shigeru Ishiba's government and the central bank. Back home, the KLCI added 1.30 points or 0.09% to 1502.74.

Source: PublicInvest Research - 23 Jun 2025