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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: KLCI in the red despite late bargain hunting

KUALA LUMPUR (Oct 31): Last-minute bargain hunting dampened losses but could not help lift the FBM KLCI out of the red today, after the index was dragged down by a slew of foreign sell-offs an hour before close. The benchmark index eked minimal gains in early trade and traded mostly sideways throughout the day before the steep sell-off, hitting a low of 1,742.60 before closing at 1,747.92, down 0.02% or 0.43 points. "Foreign funds sold off non-GLC shares such as BAT, Genting and Sime Darby," said Inter-Pacific Securities research head Pong Teng Siew. "The local funds have bought into GLCs like Tenaga, but there was more profit-taking after a few days of uptrend," he told theedgemarkets.com. The local equity market also took cue from news about uncertainties on the highly anticipated tax cut bill in the US, which has a self-imposed deadline set on Wednesday, added Pong. Wall Street pulled back from record-high territory on Monday, weighed ...

Market Daily Report: KLCI gains on Petronas stocks, well-received Malaysian budget

KUALA LUMPUR (Oct 30): The FBM KLCI climbed 2.22 points or 0.1%, lifted by oil and gas and plantation-linked counters and as investors reacted positively to Malaysia's Budget 2018. At 5pm, the KLCI closed at 1,748.35 points on gains in stocks like Petronas Dagangan Bhd, Petronas Chemicals Group Bhd, Sime Darby Bhd and Kuala Lumpur Kepong Bhd (KLK). “The market is reacting positively to the Budget,” Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com. Petronas-linked stocks rose as Brent crude oil were traded above US$60 a barrel. Meanwhile, Sime Darby and KLK climbed as Malaysian palm oil futures tracked rival soybean oil gains. Across Bursa Malaysia, 2.88 billion shares valued at RM2.15 billion exchanged hands. Gainers led decliners by 489 to 380 respectively. Top gainers included Nestle (M) Bhd and Carlsberg Brewery Malaysia Bhd. Source: The Edge

Malaysia Budget 2018 Highlights

* Najib: Malaysia has created 2.26 million jobs, representing 69% of the 3.3 million target by 2020 * Budget 2018 allocates a sum of RM280.25b, up from RM260.8b in 2017 * Per capita income expected to rise to RM42,777 in 2018, from RM40,713 now, says PM * Federal government's revenue collection projected at RM239.86b in 2018 * Budget 2018 to see RM234.25 billion allocated for operating expenditure, RM46 billion for development expenditure * Additional RM200m allocated to Amanah Ikhtiar Malaysia in Budget 2018, raising fund size to RM2.7b * Budget 2018 allocates RM6.5b to assist farmers, fishermen, smallholders and rubber tappers * Budget 2018 allocates RM200m to SMEs for training programmes, grants and soft loans under the SME Corp * Najib declares 2020 as Visit Malaysia Year with APEC, WCIT, CHOGM being held * Najib: Works on ECRL to start by January 2018 * Budget 2018 allocates RM2b to SME Tourism Fund to provide soft loans to tour operators with interest subsidy of 2% * Najib: ...

Market Daily Report: FBM KLCI gains on Tenaga's rise as PM Najib unveils Malaysia's Budget 2018

KUALA LUMPUR (Oct 27): The FBM KLCI gained 9.33 points or 0.5% on index-linked Tenaga Nasional Bhd's share price rise and as investors reacted positively to Prime Minister Datuk Seri Najib Tun Razak's Budget 2018 speech. At 5pm, the KLCI closed at 1,746.13 points, after rising to its intraday high at 1,751.50 points. Bursa Malaysia top gainer Tenaga added 62 sen to close at RM14.96, on the state-controlled utility's latest dividend and after the company announced a new dividend policy. Across Bursa Malaysia, 2.76 billion shares, worth RM2.66 billion were traded. There were 476 gainers versus 310 decliners. Yesterday, Tenaga proposed a dividend of 44 sen a share for its fourth quarter ended Aug 31, 2017 (4QFY17). The quarterly dividend brings full-year dividends to 61 sen. Tenaga also said "with effect from the financial year ended 31 August 2017, TNB (Tenaga) will adopt a new dividend policy for the company. TNB intends to distribute dividen...

Market Daily Report: FBM KLCI falls after Wall Street's drop

KUALA LUMPUR (Oct 26): The FBM KLCI shed 2.25 points or 0.1% on profit taking in IHH Healthcare Bhd shares and after US shares at Wall Street closed lower overnight. At 5pm, the KLCI closed at 1,736.80 points. IHH fell 14 sen to RM5.65 to become Bursa Malaysia third-largest decliner. Across Bursa Malaysia, 2.53 billion shares worth RM2.13 billion were traded. There 415 gainers versus 335 decliners. “Despite opening higher at the strike of the trading bell this morning, the FBM KLCI remained mostly in negative territory throughout the day, mainly due to the weak (overnight US share) performance at Wall Street. Domestically speaking, there was some heavy profit taking in IHH,” Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com. Malaysia's Budget 2018 will be closely watched as investors evaluate its potential impact on the stock market. Prime Minister Datuk Seri Najib Tun Razak will table Budget 2018 in Parliament tomorrow. ...

Market Daily Report: FBM KLCI seen oversold, up on Genting Malaysia gains

KUALA LUMPUR (Oct 25): The FBM KLCI settled 2.91 points or 0.2% higher, mainly on index-linked Genting Malaysia Bhd share gains. At 5pm, the KLCI closed at 1,739.05 points after falling to its intraday low at 1,733.67 points. Genting Malaysia shares rose 13 sen to RM5.13 to become Bursa Malaysia's ninth-largest gainer. Across Bursa Malaysia, 2.46 billion shares worth RM1.89 billion were traded. There were 349 gainers and 433 decliners. “The (Malaysian) stock market is actually oversold, and (the KLCI) will probably hold at the 1,740-1,750 level for the next few days. There’s no reason for it to fall further,” Malacca Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com. Looking ahead, Wan said besides Malaysia's Budget 2018 which will be announced this Friday (Oct 27), investor sentiment will be largely dependent on announcements of more infrastructure projects, which in turn will affect Bursa Malaysia construction counters. Tod...

Market Daily Report: FBM KLCI dragged down by foreign selling on US rate hike cue

KUALA LUMPUR (Oct 24): The FBM KLCI closed down 5.33 points or 0.3% as foreign selling of Malaysian blue-chip shares continued amid near-term US interest rate hike expectation. At 5pm, the KLCI closed at 1,736.14 points. Across Bursa Malaysia, 2.49 billion shares were transacted for RM2.13 billion. Decliners outpaced gainers by 578 versus 255 respectively. TA Securities Holdings Bhd technical analyst Stephen Soo said foreign selling of Malaysian shares is not over yet. “It is quite big selling pressure on blue chips and until and unless there is significant buying and local funds coming in, I don’t see a reversal soon. However, the market is oversold and it is ripe for a rebound. “I believe it could happen by the end of the week with the tabling of the Budget (Malaysia's Budget 2018). The (KLCI's) immediate resistance would be 1,750 points,” Soo told theedgemarkets.com. Prime Minister Datuk Seri Najib Tun Razak will table Budget 2018 in Parliame...

Market Daily Report: FBM KLCI lifted by bargain hunting ahead of Malaysia's Budget 2018

KUALA LUMPUR (Oct 23): The FBM KLCI climbed 0.82 point on bargain hunting ahead of Malaysia's Budget 2018 announcement this Friday (Oct 27). Today, Malaysian shares rose as Japanese Prime Minister Shinzo Abe's election victory cheered global markets. At 5pm today, the KLCI settled at 1,741.47 points. The index pared gains after reaching its intraday high at 1,744.86 points. Last Friday (Oct 20), the KLCI fell 3.34 points to close at 1,740.65 points. Today, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com: “After several declines last week, the local market is likely to see some bargain hunting activities this week, but the upside may not be significant." Leong said the KLCI's rise was "most likely because of the feel good factor towards the upcoming Budget 2018 (as) it is the last federal budget before the next general election.” Across Bursa Malaysia, trading volume was 2.73 billion shares worth RM1.9...

Market Daily Report: FBM KLCI down on foreign selling

KUALA LUMPUR (Oct 20): Foreign selling put pressure on share prices and dragged down FBM KLCI, which closed 3.34 points or 0.19% lower at 1,740.65 points today. The benchmark index has been on the losing streak for four consecutive trading days; it drifted to a six-month low. Hope of a strong pre-budget rally is waning. The index has declined 2.83% from the recent peak of 1,789.86 points on Sept 12, 2017. Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com that the downtrend in KLCI for the past few days was caused by foreign selling, and he is expecting the trend to continue. Wong noted that the global sentiment is good, but somehow the KLCI is not moving in tandem with it. "The KLCI needs some catalysts such as corporate earnings. And we will see whether the upcoming Budget 2018 will have any impact on the corporate earnings," Wong added. Across the board, some 2.62 billion shares worth RM2.24 billion were ...

Market Daily Report: FBM KLCI slides on profit taking in blue chips

KUALA LUMPUR (Oct 19): The FBM KLCI closed 5 points or 0.29% lower today as investors took profit, mainly in telecommunications, banking, and oil and gas heavyweights. At 5pm, the KLCI settled at 1,743.99 points. TA Securities technical analyst Steven Soo told theedgemarkets.com that there has been aggressive selling of blue chips in the sectors mentioned, which has affected the broader market. The unexpected resignation of Malaysia Airlines Bhd's chief executive officer Peter Bellew, Soo said, has also hurt sentiment, which resulted in a pullback of foreign investors' confidence and exposure in the local equities market, which have been largely on the rise. "[And] as it's a Deepavali week, most market players are away," he added. Soo also said with no upside catalysts, he is not seeing any buying support in the market presently. The benchmark index has also been ignoring the trend in global markets. "The trading volume is elev...

Market Daily Report: KLCI falls on Deepavali eve as selling pressure persists

KUALA LUMPUR (Oct 17): The FBM KLCI dipped 5.38 points or 0.3% today, amid persistent selling pressure ahead of the mid-week Deepavali break, as local market sentiment ignored the uptrend in commodities and regional markets. Having traded mostly sideways for much of the day, the benchmark fell to as low as 1,748.99 after 4pm, where it stayed till the end of trading hours. When contacted, Hong Leong Investment Bank analyst Low Ley See said investors' interests are still limited to small- and mid-caps ahead of the Budget 2018 presentation on Oct 27, and the upcoming third quarter financial results announcements. “Investors are waiting for fresh buying catalysts. They are still monitoring the US dollar and the crude oil price. There is also an overhang ahead of the upcoming election,” Low told theedgemarkets.com. Meanwhile, Reuters reported Asian shares held firm on optimism about upcoming earnings, while oil prices clung to this month’s high on Tuesd...

Market Daily Report: FBM KLCI down slightly as telcos decline

KUALA LUMPUR (Oct 16): The FBM KLCI closed marginally lower today, dragged down mainly by telecommunication heavyweights. The benchmark index closed 0.95 points or 0.05% lower at 1,754.37. Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng said the index was affected by falls in telecommunications stocks such as Axiata Group Bhd, DiGi.com Bhd and Maxis Bhd. “The telcos have been in the run-up for the past two to three months. So, it’s probably because of profit taking,” Wong told theedgemarkets.com. Wong said there was continued rotational play in small- and mid- cap stocks. “There is an interesting performance in small- and mid- caps stocks.  And I foresee this to continue as investors are waiting for the details of Budget 2018, and quarterly results which are coming soon,” he added. He said if the quarterly results are good, then this coupled with the Budget could be the catalysts for KLCI to rise further. Overall, the market saw...

Market Daily Report: KLCI rebounds on closing, lifted by Hong Leong Bank, BAT and TNB

KUALA LUMPUR (Oct 13): The FBM KLCI, which slid into the red earlier today, saw a slight rebound and gained 1.32 points or 0.07% to settle at 1,755.32 by the end of trading hours, boosted by the performance of several heavy weight counters, most notably Hong Leong Bank Bhd. Bloomberg data showed that shares in Hong Leong Bank, which was among the top 10 active FBM KLCI counters, traded 0.9% or 14 sen higher to settle at RM16.02 today, despite thin trading volume of 334,100. "While the blue chip stocks have been pretty lifeless of late, several heavyweights, like Hong Leong Bank, Fraser & Neave Holdings Bhd, British American Tobacco (Malaysia) Bhd and Tenaga Nasional Bhd — but especially Hong Leong Bank — contributed to the slight uptick in today's stock market," Inter-Pacific Securities Sdn Bhd's head of research Pong Teng Siew told theedgemarkets.com. "Further, we had tech counters like ViTrox Corp Bhd and Pentamaster C...

Market Daily Report: FBM KLCI falls; volume breaches four billion shares as FBM ACE trumps blue chips

KUALA LUMPUR (Oct 12): The FBM KLCI fell 3.21 points or 0.2% as rotational interest in smaller-capitalisation stocks helped the FBM ACE gain 136.78 points or 2%. Such sentiment led to a share-trade volume rise across Bursa Malaysia to above four billion units. At 5pm, the KLCI closed at 1,754 points while the FBM ACE ended at 6,840.98 points. The KLCI fell today despite US equity indices reaching record closing highs overnight. In Malaysia, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com the stock market was "affected by renewed selling pressure in selected telco (telecommunication company) and banking heavyweights especially Hong Leong Bank Bhd and Digi.Com Bhd.” Across Bursa Malaysia, 4.33 billion shares valued at RM2.39 billion changed hands. Gainers outpaced decliners at 446 versus 396 respectively. Top gainers included rubber glove manufacturers Top Glove Corp Bhd, Hartalega Holdings Bhd and Kossan Rubber Industri...

Market Daily Report: KLCI cuts losses on IHH spike as telcos weigh down index

KUALA LUMPUR (Oct 11): The FBM KLCI cut losses for a 3.92-point or 0.2% drop after index-linked IHH Healthcare Bhd's share price spiked in the final trading minutes. At 5pm, the KLCI closed at 1,757.21 points while IHH rose 20 sen to RM5.91. IHH was Bursa Malaysia's third-largest gainer. Earlier, telecommunication companies' (telco) shares weighed down the KLCI. Besides telco stocks Axiata Bhd, Digi.Com Bhd, Maxis Bhd and Telekom Malaysia Bhd, shares of Genting Bhd and Genting Malaysia Bhd also contributed to KLCI's loss. “There is concern that valuations are still running ahead of earnings as share prices have already run up a fair bit,” Areca Capital Sdn Bhd CEO Danny Wong said. At 5pm, Genting Bhd shares fell 13 sen to close at RM9.50, Genting Malaysia dropped nine sen to RM5.27 while Digi was 10 sen lower at RM4.88. Genting Bhd and Genting Malaysia were Bursa Malaysia's second and seventh largest decliners respectively. Digi wa...

Market Daily Report: FBM KLCI down as Bursa small caps rise on rotational play

KUALA LUMPUR (Oct 10): The FBM KLCI closed down 2.9 points or 0.2% amid geopolitical concerns and US interest rate hike cues. Bursa Malaysia small-capitalisation (small-cap) stocks however rose on rotational interest. At 5pm, the KLCI closed at 1,761.13 points. FTSE Bursa Malaysia ACE and FTSE Bursa Malaysia Small Cap indices rose 0.54% and 0.11% respectively. “Blue chips (on the KLCI) are still in hibernation and appear to be extending their consolidation,” TA Securities Holdings Bhd technical analyst Stephen Soo told theedgemarkets.com. Across Bursa Malaysia, 2.78 billion shares worth RM1.65 billion were traded. Gainers outpaced decliners at 382 and 379 respectively. Going forward, Soo projected rotational play focused on small-cap stocks, particularly those in the oil and gas sector. Today, the KLCI fell as investors evaluated the impact of US-North Korea geopolitical concerns and as investors anticipated a US interest rate hike this December. Re...

Market Daily Report: KLCI breaches 1,760 on optimism over upcoming Budget 2018

KUALA LUMPUR (Oct 6): The FBM KLCI closed 4.91 points or 0.28% higher as sentiment turns positive ahead of the upcoming budget 2018 later this month, and as foreign selling subsides. At 5pm, the benchmark index ended at 1,764, above the 1,760 level, showing a return of buying interest. "Market has rebounded above 1,760 level as sentiment turned positive since the final week of September. Foreign selling has subsided this week as compared to the last week of September," said Loui Low, Hong Leong Investment Bank Bhd's head of retail research. He said the positivity was also supported by expectations that the upcoming Budget 2018, which is due to be tabled in Parliament on Oct 27, will see more contracts announced for the construction sector. The recovery of oil and gas is another factor that is supporting the positive turn of events, he said. Low also said the fourth quarter has historically seen a positive runup for the Malaysian market over the p...

Market Daily Report: FBM KLCI down as KLCCP, Genting Malaysia decline

KUALA LUMPUR (Oct 5): The FBM KLCI closed 2.75 points or 0.2% lower as KLCI-linked shares including KLCCP Stapled Group and Genting Malaysia Bhd declined. At 5pm, the KLCI closed at 1,759.09 points. KLCCP Stapled Group, comprising KLCC Property Holdings Bhd and KLCC Real Estate Investment Trust shares fell 17 sen to RM7.84. Genting Malaysia dropped 11 sen to RM5.39. KLCCP Stapled Group and Genting Malaysia, both of which fell on profit taking, were Bursa Malaysia's second and fifth-largest decliners respectively. Across Bursa Malaysia, 3.15 billion shares worth RM2.06 billion were traded. There were 451 gainers and 324 decliners. “Generally, most of the stocks (on Bursa Malaysia) are on upside. What contributed to the lower (close of the) KLCI is KLCCP and Genting Malaysia,” Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com. Malaysian shares fell despite US equities' overnight rise to record highs cheered glob...

Market Daily Report: FBM KLCI up again on stronger buying interest

KUALA LUMPUR (Oct 4): The FBM KLCI rose 2.17 points or 0.1% on buying interest since yesterday after the index posted losses for the 10th consecutive day on Monday (Oct 2). Today, investors could have continued bargain hunting for Malaysian shares which had in recent days fallen on US interest rate hike and tax cut cues. At 5pm today, the KLCI ended at 1,761.84 points after rising 4.89 points yesterday. Today, Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew  told theedgemarkets.com : “There is an interest in the market after so many days of declining. The index started the recovery yesterday and continues its rally today. "There was more retail buying interest compared with institutional." Across Bursa Malaysia, 2.25 billion shares worth RM1.83 billion changed hands. There were 425 gainers versus 378 decliners. Top gainers included Dutch Lady Milk Industries Bhd, which rose 16 sen to RM60.12 to become Bursa Malaysia's third-l...

Market Daily Report: KLCI rebounds after 10 consecutive days of losses

KUALA LUMPUR (Oct 3): The FBM KLCI rose 4.89 points or 0.3% with Asian shares after US equities closed at record highs overnight. At Bursa Malaysia today, the KLCI closed at 1,759.67 points, the first rise after 10 consecutive days of losses. Across Asian share markets, Japan's Nikkei 225 rose 1.05% while Hong Kong’s Hang Seng gained 2.25%. Mainland China markets are closed from last Sunday (Oct 1) till this Sunday (Oct 8) for the Mid-Autumn Festival and National Day holidays, according to the Shanghai Stock Exchange website. South Korean markets are also closed this week. The Korea Exchange website shows that South Korean markets, which are closed from Monday (Oct 2) to Friday (Oct 6) for Chuseok Day, will remain closed this Monday (Oct 9) for Hangeul Day. In Malaysia today, TA Securities Holdings Bhd senior technical analyst Stephen Soo told theedgemarkets.com: “I suspect there was a pause in foreign selling activity and due to the stronger US man...

Market Daily Report: KLCI down for 10th consecutive day; ringgit weakens

KUALA LUMPUR (Oct 2): The FBM KLCI dropped 0.8 point to end at 1,754.78 points while the ringgit weakened against the US dollar as foreign selling continued on US interest rate hike bets. Telekom Malaysia Bhd and British American Tobacco (M) Bhd share losses dragged down the KLCI as both KLCI-linked stocks fell among Bursa Malaysia major decliners. Across Bursa Malaysia, there were 501 decliners versus 276 advancers. A total of 2.23 billion shares worth RM1.74 billion were traded. “The weakness of the KLCI is due to the renewed foreign fund outflow and the market will continue to trend in a negative way in a couple of days due to the lack of fresh leads,” Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com. The KLCI posted losses for the 10th consecutive trading session today. Earlier today, TA Securities Holdings Bhd wrote in a note that "as technical indicators for the local benchmark index turn more bearish following...