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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: Malaysia stocks close lower on profit-taking

KUALA LUMPUR (Jan 30): Malaysia stocks closed lower today, with the benchmark FBM KLCI falling 1.94 points or 0.1% as investors booked profits after recent sharp gains. The benchmark index flirted briefly in positive territory in the morning session, opening at 1,865.35 points to touch an intra-day high of 1,872.70 points. At 5pm, it pared its early gains to settle at 1,868.58 points. Market breadth was negative as decliners outpaced gainers by 794 to 252, while 388 counters traded unchanged. TA Securities Holdings Bhd technical analyst Stephen Soo told theedgemarkets.com that profit-taking has kicked in, after stellar gains in the past few days. “The index has risen quite sharply in the past few days to its record high in more than three years. The correction is good as the market has been overbought,”  Soo said. This is in relation to the overnight retreat in Dow Jones and the reversal of the ringgit strength against the greenback, which have ...

Market Daily Report: KLCI closes at highest level in over 3 years as blue chips rally

KUALA LUMPUR (Jan 29): The FBM KLCI rose 16.6 points or 0.9% today, the highest level seen since September 2014. At 5pm, the benchmark index finished at 1,870.52 points, after three billion shares worth RM2.49 billion were traded across the board. The last time the index closed near this level was on Sept 10, 2014, when it ended at 1,870.85 points. Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com that the “unusual" rally in the KLCI today was led by mainly banks and blue chips. “Investors are buying on expectations that the overnight policy rate (OPR) hike is expected to boost the banks’ interest margins. But there is no reason to be wildly bullish on the banks, the rate hike is actually a make up for lost grounds, instead of creating gains for the banks,” he said. Pong went on to say that he expects limited beneficial impact on banks, as the rate hike would merely restore instead of lift margins, unless progr...

Market Day Report:KLCI rises 0.44% as banking stocks pick up following OPR hike

KUALA LUMPUR (Jan 26): The FBM KLCI gained 0.44% as buying interest resumed during the second half of trading, with the banking sector picking up following the hike in the overnight policy rate (OPR) announced by the central bank yesterday. The benchmark index closed 8.06 points or 0.44% higher at 1,853.92. Hong Leong Investment Bank's head of retail research, Loui Low, said the market is still bullish, supported by foreign investors' interest as well as the gains in banking counters. "The market is still positive especially with the support from foreign investors, especially in an environment where the ringgit is still strong. The pickup seen in the banking sector is also another catalyst as the OPR hike is expected to be mildly positive for some of the banks," Low said. He pointed that companies like AirAsia X Bhd saw a lot of trading today as the market is positive of the stronger ringgit, which will be supportive of the airline c...

Market Daily Report: FBM KLCI cuts losses ahead of Bank Negara rate decision

KUALA LUMPUR (Jan 24): The FBM KLCI pared losses to close one point or 0.1% lower today as the ringgit strengthened ahead of Bank Negara Malaysia's interest rate decision tomorrow (Jan 25). Analysts said anticipation of Malaysia's 14th general election (GE14) this year could have also dictated market sentiment. At 5pm today, the KLCI closed at 1,837.04 points after stooping to its intraday low at 1,834.49 points. The ringgit appreciated to its strongest level against the US dollar today at 3.9118. Over the last one year, the exchange rate was between 3.9118 and 4.4618. Tomorrow, Bank Negara's monetary policy committee (MPC) is scheduled to decide on the country's overnight policy rate (OPR). Bank Negara's MPC had during its latest meeting on Nov 9, 2017 decided to maintain the OPR at 3%. Today, GE14 expectation could have led to cautious market sentiment. "There's a general cautious tone in the market today as investors may still be waiting ...

Market Daily Report: FBM KLCI up at intraday high after US deal to end shutdown

KUALA LUMPUR (Jan 23): The FBM KLCI gained 4.89 points or 0.3% as Asian shares rose to record closing highs after US policy makers reached a deal to end the government shutdown. At Bursa Malaysia, the KLCI closed at its intraday high of 1,838.04 points. AmInvestment Bank Bhd research analyst Lim Sae Wai told theedgemarkets.com that "market sentiment is still bullish-biased." Across Asia, Japan's Nikkei 225 rose 1.29% while Hong Kong's Hang Seng climbed 1.66%. Reuters reported that Asian stocks advanced on Tuesday after US senators struck a deal to end a government shutdown in a boost to Wall Street, while the dollar turned higher against the yen after Bank Of Japan's chief reiterated his support for quantitative easing. It was reported that Japan's Nikkei share average on Tuesday ended at its highest in more than 26 years, with real estate and precision machinery stocks leading the gains. Hong Kong stocks hit another fresh record on Tuesday, aided...

Market Daily Report: FBM KLCI gains with Asian shares despite US shutdown

KUALA LUMPUR (Jan 22): The FBM KLCI gained 4.32 points or 0.2% after the index erased losses in tandem with Asian shares. Reuters reported that Asian shares remained resilient despite the pullback in US shares after the the US government was forced to shut down as investors saw limited economic fallout from the standoff in the US capital. "After all, people know this is just a political show. Neither Republicans nor Democrats can afford to keep dragging their feet for long ahead of mid-term elections this year," Masashi Murata, senior currency strategist at Brown Brothers Harriman was quoted as saying in Tokyo. At Bursa Malaysia, the KLCI closed at 1,833.15 points at 5pm after falling to its intraday low of 1,825.86 points. Across Asia, Japan’s Nikkei 225 rose 0.03% while Hong Kong’s Hang Seng climbed 0.43% after both indices erased intraday losses. In Malaysia, Rakuten Trade Sdn Bhd vice president of research Vincent Lau told theedgemarkets.com that he believ...

‘M’sia not cheap, not fast enough’

KUALA LUMPUR: Franklin Templeton Investments, which managed US$753.8 billion (RM2.99 trillion) worth of assets globally as at Dec 31, 2017, is “underweight” on the Malaysian equity market, which it sees as neither cheap enough nor growing fast enough. “Malaysia has this issue whereby it is never cheap enough to be a significant part of Franklin Templeton’s portfolio, and it is not fast-growing enough in terms of listed companies,” Chetan Sehgal, its managing director and director of global emerging markets and small-cap strategy, told a media briefing yesterday on the asset management company’s 2018 emerging market outlook. Nevertheless, given the country’s strong gross domestic product growth and exports recorded last year, Franklin Templeton still sees some sweet spots in the equity market here, namely export-related and banking counters. “The thing is that exporters in Malaysia have done very well despite the fact that the currency has appreciated ... this ...

Market Daily Report: FBM KLCI up 7.23 points on Petronas Gas jump; Asian shares rise

KUALA LUMPUR (Jan 19): The FBM KLCI gained 7.23 points or 0.4%, helped by an eleventh-hour spike in Petronas Gas Bhd's share price. Malaysian shares also rose with Asian stock markets. At Bursa Malaysia, the KLCI closed at its intraday high at 1,828.83 points. Petronas Gas rose 88 sen to RM18.20 to emerge as Bursa Malaysia's fourth-biggest gainer. Across Bursa Malaysia, 3.83 billion shares worth RM3.19 billion changed hands. Across Asia, Japan’s Nikkei 225 rose 0.19%, Hong Kong’s Hang Seng climbed 0.41% while South Korea’s Kospi increased 0.18%.   Reuters reported that Asia stocks shook off losses on Wall Street and edged up to record highs on Friday following China's announcement of faster-than-expected fourth quarter growth, while worries over a possible US government shutdown weighed on the dollar. It was reported that most Southeast Asian stock markets firmed on Friday and were on track to end the week higher as broader Asian shares climbed to...

Market Daily Report: FBM KLCI down as Bursa Malaysia small caps dent sentiment

KUALA LUMPUR (Jan 18): The FBM KLCI closed 7.03 points or 0.4% lower as profit-taking across Bursa Malaysia small-cap stocks dented broader market sentiment. At 5pm, the KLCI closed at 1,821.60 points. The FBM Small Cap Index fell 184.98 points or 1.05% to 17,343.92 points. "While the local benchmark (KLCI) steadied on buying support in selected heavyweights on Wednesday, profit taking amid heavy settlements from recent active trade on small caps weighed down the broader market. The present profit-taking consolidation process should persist till the recent heavy trade settlements have been absorbed and daily turnover stabilises at more sustainable levels," TA Securities Holdings Bhd wrote in a note today. Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that although the KLCI opened higher when trading started today, quick profit-taking sent the KLCI lower. Leong said "profit-taking activities are not just acr...

Market Daily Report: FBM KLCI up on 11th-hour spike as Bursa small caps fall

KUALA LUMPUR (Jan 17): The FBM KLCI rose 2.6 points or 0.1% after an 11th-hour spike and as the ringgit strengthened against major currencies. At 5pm, the KLCI closed at 1,828.63 points after falling to its intraday low at 1,821.54. The KLCI reversed losses as KLCI-linked Hong Leong Bank Bhd and Genting Bhd shares rose among Bursa Malaysia top gainers. Bursa Malaysia small-capitalisation (small cap) stocks fell. The FBM Small Cap Index fell 150.53 points or 0.85% to close at 17,528.90 points. Across Bursa Malaysia, 4.97 billion shares valued at RM2.79 billion were traded. Hong Leong Bank was the top gainer while Genting Bhd was the eighth-largest advancer.    AmInvestment Bank Bhd analyst Lim Sae Wai told theedgemarkets.com : “The small-cap index is going through a steeper correction, but its recent peak in early January was pretty overboard, so it is not surprising to see a bit of a pullback. There is a perceived negative sentiment on the we...

Market Daily Report: KLCI erases loss as Asian shares climb to record highs

KUALA LUMPUR (Jan 16): The FBM KLCI rose 0.12 point as Asian shares climbed to record closing highs. Such sentiment could have helped trading volume across Bursa Malaysia to top six billion shares today. At 5pm, the KLCI closed at 1,826.03 points after falling to its intraday low at 1,818.64 points. Across Asian share markets, Japan's Nikkei 225 rose 1% while Hong Kong's Hang Seng added 1.81%. Reuters reported that Japan's Nikkei share average rose to its highest level since late 1991 on Tuesday, as a firmer dollar supported exporter stocks and expectations for strong corporate earnings bolstered investor sentiment. Hong Kong's benchmark Hang Seng Index rose to a record closing high on Tuesday, led by index heavyweight Tencent Holdings and Hong Kong Exchanges and Clearing. In Malaysia, Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com "the (stock market) trend is still positive from the global g...

Market Daily Report: KLCI up on US share gain; ringgit at 3.9525 vs US dollar

KUALA LUMPUR (Jan 15): The FBM KLCI climbed 3.24 points or 0.2% as the ringgit strengthened today and after US shares rose to record closing highs on Friday (Jan 12). At 5pm today, the KLCI closed at 1,825.91 points. Across Bursa Malaysia, 5.4 billion shares worth RM3.33 billion changed hands. In currency markets, the ringgit was traded at its strongest level against the US dollar today at 3.9525. Over the last one year, the exchange rate was between 3.9525 and 4.4707. “(In Malaysia) There is a broader appeal among investors for bigger selection of stocks. It’s a combination of these factors — the upcoming election, a continuation of inflows from foreign funds and a strong ringgit," Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com. “There is also the (Malaysia corporate) financial results season coming ahead, with optimism that it would be better than the previous quarter which posted a dismal 4-5% earnings grow...

Market Daily Report: FBM KLCI up as ringgit strengthens after oil tops US$70

KUALA LUMPUR (Jan 12): The FBM KLCI closed 5.79 points or 0.3% higher as the ringgit strengthened after crude oil prices topped US$70 a barrel. At 5pm, the KLCI closed at 1,822.67 points. The ringgit appreciated to its strongest level against the US dollar today at 3.9696. Over the past one year, the ringgit was traded between 3.9696 and 4.4707 against the US dollar. In crude oil markets, Reuters reported today that Brent marked a December-2014 high the previous day at US$70.05 a barrel. Today, Hong Leong Investment Bank Bhd head of retail research Loui Low told theedgemarkets.com that investors are still holding Malaysian equities as the ringgit strengthened with crude oil prices. The ringgit tracks crude oil prices as the commodity forms a crucial component of the Malaysian economy. “There are also election counters (which) are being bought ahead of the (Malaysian) election. That’s why we can see that government-linked company (GLC) counters are moving...

Market Daily Report: FBM KLCI slips again on profit-taking

KUALA LUMPUR (Jan 10): The FBM KLCI fell 4.03 points or 0.22% as profit-taking drove the index lower for the second consecutive day. At 5pm, the KLCI closed at 1,822.92 points after rising to its  intraday high at 1,830.63 points. Yesterday, the KLCI dropped 5.2 points to 1,826.95 points. Today, Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com that profit-taking in the Malaysian stock market "is not that glaring, and is normal considering the local market has been on the uptrend since end-December". In recent days, the KLCI closed higher at 1,782.70 points on Jan 2 before climbing to 1,832.15 points on Monday (Jan 8). Across Bursa Malaysia today, 5.75 billion shares valued at RM3.78 billion exchanged hands. UMW Oil & Gas Corp Bhd was the most-active stock with some 352 million shares traded. UMW Oil & Gas fell 1.5 sen to 41 sen. Source: The Edge

Market Daily Report: FBM KLCI takes breather after four straight days of gains

KUALA LUMPUR (Jan 9): The FBM KLCI closed 5.2 points or 0.3% lower due to profit taking after gaining for four consecutive trading days. At 5pm today, the KLCI closed at 1,826.95 points. The index erased gains after rising to its intraday high at 1,840.35 points. “It isn’t a massive sell down. I consider this to be light profit taking. I think the market will come back,” Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew told theedgemarkets.com. Over the past week, the KLCI closed higher at 1,782.70 points on Jan 2 before climbing to 1,832.15 points yesterday (Jan 8). Today, Bursa Malaysia saw 6.48 billion shares worth RM4.41 billion traded. Notable decliners included AMMB Holdings Bhd after the stock fell 20 sen to RM4.48 to become the ninth-largest decliner. Leading gainer was Supermax Corp Bhd after the stock rose 23 sen to RM2.31. Supermax shares rose after Affin Hwang Investment Bank Bhd upgraded its call on Supermax shares to buy from hold...

Market Daily Report: FBM KLCI up 14.18 points as Bursa volume nears seven billion shares

KUALA LUMPUR (Jan 8): The FBM KLCI rose 14.18 points or 0.8% as volume across Bursa Malaysia neared seven billion shares. Fund managers said Malaysian shares gained from factors including sustained crude oil price gains and positive US market sentiment. At Bursa Malaysia, the KLCI closed at 1,832.15 points as index-linked oil and gas companies Petronas Gas Bhd and Petronas Dagangan Bhd shares rose among top gainers. Across Bursa Malaysia, 6.96 billion shares worth RM4.59 billion were traded. Sapura Energy Bhd was the most-active stock followed by UMW Oil & Gas Corp Bhd. "Sustained crude oil prices is viewed as very positive to Malaysia. (Malaysia's stock) market has run up again following the positive sentiment from the US and moving forward, the positive sentiment will drive the market higher," Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com. Reuters reported that US West Texas Intermediate cru...

Market Daily Report: KLCI gains 14.52 points as election, stronger ringgit drive sentiment

KUALA LUMPUR (Jan 5): The FBM KLCI closed 14.52 points or 0.8% higher as anticipation of Malaysia's 14th general election (GE14) in 2018 and a stronger ringgit drove investors’ sentiment. At 5pm, the KLCI closed at its intraday high of 1,817.97 points. In currency markets, the ringgit appreciated to 3.9975 against the US dollar at 5:50pm after trading between 3.9887 and 4.0055 today. “The (stock market) rally is expected to firm up towards GE14 and people are buying on stronger ringgit," Hong Leong Investment Bank Bhd retail research analyst Loui Low Ley Yee told theedgemarkets.com. Low said Malaysian shares' "near-term performance depends on corporate results (announcements) in February." He said "if earnings are weak, there might be a (stock market) consolidation.” Across Bursa Malaysia today, trading volume was 5.84 billion shares worth RM3.94 billion. Notable gainers included Fraser & Neave Holdings Bhd, UMW Holdings Bhd ...

Market Daily Report: FBM KLCI up 10.09 points as Bursa volume tops five billion shares

KUALA LUMPUR (Jan 3): The FBM KLCI rose 10.09 points or 0.6% while trading volume across Bursa Malaysia topped five bllion shares on Malaysia's 14th general election cue. Such sentiment was apparent as investors bought Malaysian government-linked stocks like Petronas Gas Bhd and Sime Darby Bhd, according to fund managers. Bloomberg quoted Areca Capital Sdn Bhd CEO Danny Wong Teck Meng as saying "investors are buying into the nation’s government-linked companies ahead of a national election" this year. Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew told theedgemarkets.com that Malaysian shares rose "due to the stimulus programme from central banks around the world". Across Bursa Malaysia today, trading volume was 5.11 billion shares worth RM3.68 billion. Yesterday, the bourse recorded a trading volume of 3.69 billion shares worth RM2.11 billion. Today, Bursa Malaysia shares rose 28 sen to RM10.40 to become the sev...

Factors that swing the market

As we usher in the New Year after the benchmark FBM KLCI closing in the positive zone in 2017  — the first time in three years, many investors would ponder whether the strong momentum could continue into 2018. The following is the list of factors that could possibly swing the market moving forward: Malaysia’s GE14 The much anticipated 14th general election (GE14) did not materialise in 2017, will definitely take place in 2018 before Aug 24 this year as the mandate of the ruling Barisan National (BN) coalition will end in June 2018. Analysts have in general expects the GE14 to be the main driver of investors’ sentiment in early 2018 before a return to fundamentals post GE14. So far, most research analysts view that the poll is likely to be in between February and April. The pre-election rally is expected to lift sentiments and improve the “feel-good” factor, which is important for incumbent governments. The election-play counters, companies that are perceive...

Market Daily Report: KLCI falls as investors take profit after last week’s gain

KUALA LUMPUR (Jan 2): The FBM KLCI fell as much as 24.81 points or 1.38% to an intra-day low of 1,772 points today, as investors take profit after the index climbed for three consecutive days last week. At 5pm, the benchmark index pared some losses and closed at 1,782.70 points, still down 14.11 points or 0.79% from Friday (Dec 29)'s close. When contacted, Malacca Securities Sdn Bhd senior research analyst Kenneth Leong told theedgemarkets.com that local trading sentiment was also affected by softer Nikkei Malaysia Manufacturing Purchasing Managers’ Index (PMI) which contracted to 49.9 points in December 2017, as business conditions in the sector broadly stagnated. “The KLCI was trading in the negative territory throughout the entire trading session today, as it erased most of its previous [week's] gains. Weaknesses were mainly due to soft manufacturing data, coupled with the quick-profit taking, following three consecutive days of gain,” Leong said...