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Showing posts from November, 2015

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Russia Holds Key Rate at 21% Amid Surging Inflation

The Bank of Russia unexpectedly maintained its key interest rate at a record-high  21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to  8.9%  in November, well above the central bank’s  4% target , with inflation expectations reaching  13.9%  in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s  200-basis point hike  as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...

Market Daily Report [26 Nov 2015]

After the index's advance in the last few days, we see the FBM KLCI fell 1.33 points or 0.1% as investors locked in gains.  The FBM KLCI index lost 1.33 points or 0.08% on Thursday. The Finance Index increased 0.05% to 14138.02 points, the Properties Index up 0.06% to 1193.05 points and the Plantation Index down 0.09% to 7513.83 points. The market traded within a range of 14.12 points between an intra-day high of 1688.79 and a low of 1674.67 during the session. Malaysian shares rose in recent days on news 1Malaysia Development Bhd (1MDB) was selling its power assets to China General Nuclear Power Corp, instead of Tenaga Nasional Bhd ( Valuation: 1.20, Fundamental: 1.30). Investors could have perceived such updates as good news for Tenaga, amid concerns Tenaga might overpay for state-owned 1MDB's power assets to bailout the company. However, as the news passed, the market sensed a lack of catalysts exciting the share market. Exports based companies ar...

Wall Street ends higher on global tension

Wall Street ends higher on Tuesday as energy stock rose along with oil prices after Turkey shot down a Russian warplane near the Syrian border. The three major U.S. indexes recovered from a morning selloff that was triggered by the overseas news despite some strong U.S. economic data. Relatively light trading appeared to exaggerate swings in the market, according to Frankel, as many market participants were away ahead of the U.S. Thanksgiving holiday. Markets will be closed all day Thursday and close early Friday. The Dow Jones industrial average rose 19.51 points, or 0.11 percent, to 17,812.19, the S&P 500 gained 2.55 points, or 0.12 percent, to 2,089.14 and the Nasdaq Composite added 0.33 points, or 0.01 percent, to 5,102.81. Investors steered clear of many of Nasdaq's higher-valuation stocks like Netflix and instead took safety in cheaper stocks due to geopolitical concerns, according to J.J. Feldman, portfolio manager at Los Angeles-based Miracle Mile Adviso...

Market Daily Report [24 Nov 2015]

The FBM KLCI continues its' good run today with 6.13 points or 0.4% higher to close at 1,677.030. This was a continuation of an increased of 9.01 points or 0.54% yesterday.  FBM KLCI close at 1,677.030 Tenaga shares rose on news 1Malaysia Development Bhd (1MDB) was selling its power assets to China General Nuclear Power Corp. Investors could have perceived such updates as good news for Tenaga, amid concerns that Tenaga might overpay for state-owned 1MDB's power assets to bailout the company. Today, fund managers said investors’ sentiment towards Malaysia had improved, as the country’s image seemed to be on a better footing with US and China, two of the world’s major economies, extending their hands to Malaysia recently. The Finance Index increased 0.40% to 14135.16 points, the Properties Index dropped 0.10% to 1197.08 points and the Plantation Index rose 0.06% to 7502.73 points. The market traded within a range of 12.33 points between an intra-day high ...

Market Daily Report [23 Nov 2015]

The FBM KLCI rose 9.01 points or 0.54% today, mainly on Tenaga Nasional Bhd share gains, amid speculation 1Malaysia Development Bhd (1MDB) may sell its power assets to foreign bidders. 1MDB's power assets are parked under Edra Global Energy Bhd. Analysts and fund managers said Tenaga gained as investors could have perceived such updates as good news for Tenaga, amid concerns Tenaga might overpay for state-owned 1MDB's power assets to bailout the company. The Finance Index increased 0.40% to 14135.16 points, the Properties Index dropped 0.10% to 1197.08 points and the Plantation Index rose 0.06% to 7502.73 points. The market traded within a range of 12.33 points between an intra-day high of 1673.92 and a low of 1661.59 during the session. FBM KLCI gained 0.54% as of closing for today Tenaga added 30 sen or 2.3% to RM13.42, to become Bursa Malaysia's fifth-largest gainer. Actively traded stocks include GENETEC, BORNOIL-WC, INSTACO, GLOTEC, HUBLINE...

1MDB near to $2.3 billion power sale to Chinese-led group

1MDB near to $2.3 billion 1 Malaysia Development Bhd, which has been embroiled in much controversy for the high debt that it has accumulated is closing on an agreement to sell control of its power business to Chinese-led bidding group as part of its plan to wind down its' operations. An agreement with the consortium, which includes China General Nuclear Power Corp. and Qatar's Nebras Power QSC is coming to a near conclusion. The deal is said to have the 1MDB's Edra Global Energy Bhd. unit at about 10 billion ringgit ($2.3 billion), trumping a rival offer from Malaysian energy producer Tenaga Nasional Bhd.  With so much controversy surrounding the 1 Malaysia Development Bhd, the impending rising rate by the US Fed and the unconvincing economical data coming out from China, the Malaysian Ringgit has suffered an 18% drop this year, making it as the worst performing currency in Asia. This has been beneficial to the foreign bidders to buy the 1MDB power plants. T...

Market Daily Report [20 Nov 2015]

The FBM KLCI index gained 1.83 points or 0.11% on Friday. The Finance Index increased 0.32% to 14078.27 points, the Properties Index up 0.25% to 1198.25 points and the Plantation Index rose 0.61% to 7498.52 points. The market traded within a range of 6.35 points between an intra-day high of 1663.48 and a low of 1657.13 during the session. It is a good way to end the week with a gain in the market after a rather downward trend at the beginning of the week. The FBM KLCI index closed at 1,661.890, a gained of 1.83 points today. It is also an increase of 2.98 points compared to last Friday (13 November 2015) , so that makes the closing a lot more sweeter for the index. FBM KLCI index gained 1.830 points The increase happened as the global economy recovery is seen to be on the right track. The FBM KLCI index rose with the Asian share markets.  The top active counter is Instacom Group Bhd and Globaltec Formation Bhd  while the top gainers is Nestle, with a ga...

Market Daily Report [17 Nov 2015]

The FBM KLCI index gained 5.53 points or 0.33% on Tuesday. The Finance Index increased 0.14% to 14078 points, the Properties Index up 0.11% to 1199.37 points and the Plantation Index rose 0.09% to 7489.19 points. The market traded within a range of 17.30 points between an intra-day high of 1677.37 and a low of 1660.07 during the session. The increased of 0.33% is the first time after the index had declined for the past four consecutive days. The KLCI had tracked global markets' recovery from the shock of the recent terrorist attacks in Paris, France. This is in line with the regional performance as Asian stocks rose across the board on Tuesday, following a surge on Wall Street overnight, as investors clawed back losses that came on the back of last week's Paris attacks. FBM KLCI increased 5.530 points to close at 1,661.530 Bursa Malaysia saw 2.16 billion shares, worth RM2.01 billion traded. Gainers outnumbered decliners at 533 against 379, while 346 shares were u...

Market Daily Report [16 Nov 2015]

The FBM KLCI index lost 2.91 points or 0.18% on Monday. The Finance Index fell 0.25% to 14058.26 points, the Properties Index dropped 0.45% to 1198 points and the Plantation Index down 0.40% to 7482.82 points. The market traded within a range of 14.51 points between an intra-day high of 1658.80 and a low of 1644.29 during the session. This is the fourth consecutive day of decline for the index, in line with the weaker sentiments shadowing global market as investors turn cautious after the terror attack that hit Paris over the weekend. FBM KLCI index fall consecutively for the forth day to close at 1,656.000 Across the board, 1.92 billion shares worth RM1.7 billion were exchanged. Decliners beat gainers at 597 against 347, while 308 counters remained unchanged. The most actively traded stock was Instacom Group Bhd's warrant, INSTACO-WB, followed by the mother share and Hibiscus Petroleum Bhd.  Hang Seng index's warrant HSI-HG led the gainers while the...

Market Daily Report [13 Nov 2015]

The FBM KLCI index lost 4.29 points or 0.26% on Friday to close at 1,658.910. The Finance Index fell 0.20% to 14093.2 points, the Properties Index dropped 0.82% to 1203.42 points and the Plantation Index down 0.12% to 7512.82 points. The market traded within a range of 13.14 points between an intra-day high of 1664.59 and a low of 1651.45 during the session. FBM KLCI downtrend continues The FBM KLCI decline, was in line with the dip at most regional markets and as the local economy grew at its slowest pace since the second quarter of 2013. Most of the indices on Bursa Malaysia ended the day in red, except for technology and mining, which increased 0.24 points and 8.11 points respectively. There were 339 gainers, 558 losers and 360 counters traded unchanged across the exchange today. Market breadth saw 2.21 billion shares traded, worth some RM2.14 billion. Top 3 Gainers Top gainers were led by Fraser & Neave Holdings Bhd, Panasonic Manufacturing Malay...

Market Daily Report [12 Nov 2015]

The FBM KLCI closed 0.13% lower today at 1,663.200 as the index is weighed by losses in index-linked plantation stocks, making it the second consecutive day of decline.   FBMKLCI closed at 1,663.200 The Finance Index increased 0.46% to 14121.1 points, the Properties Index up 0.35% to 1213.34 points and the Plantation Index down 1.22% to 7521.61 points. The market traded within a range of 12.26 points between an intra-day high of 1670.03 and a low of 1657.77 during the session. The index was dragged by losses in plantation stocks such as IOI Corp Bhd, PPB Group Bhd and Kuala Lumpur Kepong Bhd. The inventory numbers released by the Malaysian Palm Oil Board (MPOB) yesterday were higher than expected, which did not bode well for the commodity's prices. Across the board, a total of 2.14 billion shares worth RM1.85 billion were traded. Gainers beat decliners with 476 versus 409, while 353 counters were unchanged. The most active stock was Instacom Group ...

Market Daily Report [11 Nov 2015]

The FBM KLCI index lost 20.79 points or 1.23% on Wednesday. The Finance Index fell 1.86% to 14056.35 points, the Properties Index dropped 0.94% to 1209.09 points and the Plantation Index down 1.39% to 7614.28 points. The market traded within a range of 16.80 points between an intra-day high of 1674.68 and a low of 1657.88 during the session. The index closed at 1,665.320. Across Bursa Malaysia, decliners outweighed gainers by 710 against 279, while 254 counters remained unchanged. The top losing counter was British American Tobacco (M) Bhd, while gainers were led by Petronas Dagangan Bhd.  British American Tobacco (M) Bhd is the biggest decliner for the day Petronas Dagangan Bhd led the gainers with an increase of 94 cents Hibiscus Petroleum Bhd was the most actively traded counter today, with some 156.44 million shares done. The FBM KLCI has dropped as investors concern over China's economic growth. Market breadth was negative amid absenc...

Ringgit and plantation stocks on focus

The focus today will be on both the Ringgit against a much stronger US dollar and the plantation sector. The Malaysian Palm Oil Board will announce this week Oct inventory, output and export numbers, thus the spot light on the plantation sector. Last Monday, the KLCI eked out a 0.41-point gain to settle at 1,686.11. Yesterday, the Malaysian stock market was closed for the Deepavali holiday. However, overnight US dollar gains could put the ringgit in the spotlight today. The ringgit was last traded weaker at 4.3825 versus the US dollar. The Ringgit on spot light against a stronger US dollar Reuters reported that the prospect of a US rate hike sent the dollar to a seven-month high. A strong dollar eats into the overseas sales at US companies. In overnight US share trades, the Dow Jones Industrial Average rose 0.16% to  17,758.21 points. Nasdaq Composite fell 0.24% to 5,083.24. With the plantation shares like Sime Darby Bhd, Kuala Lumpur Kepong Bhd, ...

OCBC thinks investors shouldn't ignore Malaysia

Malaysia has been on the spot light in the business news for most of the wrong reasons recently...the low oil prices and structural changes in China are hammering the country's export revenues and the 1MDB scandal has continued to take central stage....casting doubt and uncertainties over the country's stability in politics. And yes, with the Fed rate hike more or less certain after the jobs data in October was released, we know the RM will continue to depreciate further, driving up the living costs of ordinary Malaysian folks like you and I, and yet OCBC feels that things are not as bad as it seems. Malaysia’s GDP growth seems likely to continue ticking along at a moderate pace, helped by fiscal spending programmes. Bank Negara Malaysia is forecasting GDP growth of between 4% and 5% in 2016. Malaysia “That’s not great but it is nowhere near a recession,” says Wiranto, an economist from OCBC Bank, adding that Malaysia is likely to achieve the upper range of its g...

Market Daily Report [09 Nov 2015]

It's a strange day for Bursa Malaysia today as FBM KLCI opened weaker but managed to climb at the 11th hour to close at 1,686.11. The index erased losses from its intraday low of 1,680.79.  FBM KLCI closed slightly higher at 1,686.11   This is amid a weaker ringgit at 4.3763 against the US dollar.  The US dollar is strengthened after a convincing data on the US employment rate last week as the data is pointing towards a potential US interest rate hike in December by Fed.  In the country, the weaker Ringgit directed the focus and spotlight on the export-based companies.  Across Bursa Malaysia, there were 434 gainers versus 469 decliners. The exchange saw 2.1 billion shares worth RM1.7 billion traded. TOP 3 ACTIVE counters Bumi Armada Bhd is the most actively traded counter for the day, due to the rumour of the MISC FPSO merger. The counter closed at 1.11, 0.115 higher than Friday. TOP 3 GAINER for the day Kuala Lumpur Kep...

Jobs data boost chance of Dec rate hike

A stronger than expected October jobs report boost the chances of a December rate hike and Wall Street dropped slightly lower on Friday to reflect that. Out of the 10 major sectors in S&P, nine were lower, with the interest rate sensitive utilities sector's 3% decline being the worst while the financial sectors was only up by 1% and the only gainer. S&P 500 Index dropped slightly on Friday The Labor Department's report showed nonfarm payrolls increased by 271,000 in October, beating the 180,000 expected. Data for August and September were revised to show 12,000 more jobs on average were created than previously reported. The unemployment rate fell to 5.0%, the lowest since April 2008, from 5.1% in September. The jobless rate is now at a level many Fed officials view as consistent with full employment. "I think it's good news — it's good news for the economy, eventually the market will take it as good news," said Sean Lynch, co-h...

Bank Negara keeps key interest rate at 3.25%

In a statement today, Bank Negara Malaysia (BNM) said the decision to keep its key interest rate unchanged at 3.25% was made at the Monetary Policy Committee meeting today. This is in line with analysts' forecasts and with the economy continuing to be affected by the weak external environment. Bank Negara Malaysia keeps key interest rate at 3.25% "At the current level of overnight policy rate (OPR), the stance of monetary policy remains accommodative and supportive of economic activity," it said. "The committee recognises that there are heightened risks in the global economic and financial environment. These risks are being carefully monitored to assess their implications on macroeconomic stability and the prospects of the Malaysian economy," it added. "Domestic demand therefore remains the main driver of growth. However, private consumption is expected to moderate as households continue adjusting to the higher cost of living amidst an...

US Fed rate hike chances dependent on US jobs data

The US policymakers had pivoted in their meeting earlier last week towards a December interest rate increase, largely due to the Fed's updated model of the US economy.  Will Janet Yellen and the Fed raise rates in December? The model assumes that the Federal Open Market Committee (FOMC) raises the benchmark rate in late 2015. However, immediate lift-off has "been a feature" of the model since late 2014, Barclays noted. Fed spokesman, David Skidmore declined to comment. In the current model, "the long-run growth rate is two-tenths lower" at 2%, Barclays said. FOMC participants forecast the economy's long-run growth rate at 2% in September.  An increase in the Fed rates would have an impact well beyond the US borders, increasing borrowing costs for dollar debtors in emerging markets, pushing up the greenback against some major currencies and driving a global reallocation of investment money.  Many believe that the US jobs data due in th...