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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 dips 15.26 points as China, Japan data hit Asian shares

KUALA LUMPUR (Feb 28): The FBM KLCI fell 15.26 points or 0.8% with Asian shares as investors responded to weaker China and Japan manufacturing data amid anticipation of speedier US interest rate hikes. At 5pm, the KLCI closed at 1,856.20. Across Asia, Japan’s Nikkei 225 fell 1.44%. In China, Hong Kong’s Hang Seng dropped 1.36% while the Shanghai Stock Exchange Composite was 0.99% lower. Reuters reported that China's official Purchasing Managers' Index (PMI) released on Wednesday fell to 50.3 in February, from 51.3 in January. But it remained just above the 50-point mark that separates growth from contraction on a monthly basis. In Japan, trade ministry data out on Wednesday showed factory output fell 6.6 percent in January from the previous month. It was also reported that most emerging Asian currencies fell on Wednesday, while the dollar held firm near a three-week high after US Federal Reserve chairman Jerome Powell struck a hawkish tone in his ...

Market Daily Report: KLCI up 11.38 points, lifted by banking stocks

KUALA LUMPUR (Feb 27): The FBM KLCI gained 11.38 points or 0.61%, lifted mainly by banking stocks. At 5pm, the KLCI closed at 1,871.46 points. Bursa Malaysia's finance index rose 201.41 points or 1.11% to settle at 18,299.16 points as Hong Leong Financial Group Bhd and Hong Leong Bank Bhd shares emerged among Bursa Malaysia's top 10 gainers. “On a technical basis, the KLCI should continue to see an uptrend to about 1,880 level. If there is any negative external surprise, we should see a support level at about 1,840 to 1,850,” Hong Leong Investment Bank head of retail research Loui Low said. Across Asian markets, Japan’s Nikkei 225 gained 1.07%, Hong Kong’s Hang Seng fell 0.73% while South Korea’s Kospi slipped 0.06%. Reuters reported that global shares held firm near three-week highs on Tuesday as US borrowing costs eased ahead of Federal Reserve Chairman Jerome Powell's awaited first congressional testimony later in the day. Powell's debut app...

Market Daily Report: KLCI down as Genting, Nestle slips

KUALA LUMPUR (Feb 26): The FBM KLCI slipped 1.42 points or 0.1% as investors evaluated Malaysia's corporate financials and after a last-minute selling of Genting Bhd shares dragged the KLCI lower. At 5pm, the KLCI closed at 1,860.08. Genting shares dropped 18 sen to RM8.92 to become one of the biggest decliners on Bursa Malaysia. Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew said: “Generally (Malaysia corporate) results have not been too encouraging, but we do see better profits." Across Bursa Malaysia, 2.72 billion shares worth RM2.74 billion were traded. Top decliners included KLCI-linked stocks Nestle (M) Bhd and Hong Leong Financial Group Bhd. Top gainers included Dutch Lady Milk Industries Bhd and KLCI component Hong Leong Bank Bhd. Source: The Edge

Market Daily Report: KLCI ends week higher in tandem with regional markets

KUALA LUMPUR (Feb 23): Malaysian stocks closed higher today in tandem with most Asian bourses. The FBM KLCI ended the day 6.43 points or 0.35% higher at 1,861.50. Trading volume also increased to 3.55 billion shares worth RM2.68 billion compared with yesterday's 2.34 billion shares worth RM2.06 billion. Kenanga Investment Bank analyst Lawrence Yeo told theedgemarkets.com that the local stock market has been experiencing low trading volume throughout the week as investors may still be in holiday mode, and that market breadth was not very strong. "Other regional markets, like Hong Kong, have been more aggressive in their recovery as opposed to the local market, where investors are more defensive and resilient," he said. Yeo said he observed a steady buying trend of consumer staple stocks such as Nestle (Malaysia) Bhd and Dutch Lady Milk Industries Bhd, as investors take a more defensive approach by buying more stable blue chip stocks. "Al...

Market Daily Report: KLCI rises slightly as investors shift focus to corporate results

KUALA LUMPUR (Feb 21): The FBM KLCI gained 2.18 points or 0.12% to close at 1,858.17 today on marginally improved market sentiment as investors focussed on fourth quarter financial results.   "The local market is currently not so heavily affected by other international markets, as local investors are shifting their focus to the Malaysian corporate results season," said Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng said. "So far, most companies reported year-on-year fourth quarter improvement. As it is still going on, we just need to wait and see if this improvement is broad-based," Wong told theedgemarkets.com. JF Apex Securities Bhd research analyst Lee Cherng Wee said the KLCI only rose marginally today as there were not many positive surprises from the financial results released so far to excite the market. A total of 2.28 billion shares worth RM2.531 billion were traded across Bursa Malaysia, with gainers leadi...

Market Daily Report: KLCI declines along with regional peers as investors take profit

KUALA LUMPUR (Feb 20): The FBM KLCI fell by a marginal 1.33 points or 0.07% to close at 1,855.99 today as investors took profit after yesterday’s gains. The benchmark index’s softer finish was in line with the lower trend in other Asian markets. Japan’s Nikkei closed 1.01% lower, Hong Kong’s Hang Seng Index 0.78% lower, and South Korea’s KOSPI 1.13% lower. Malacca Securities Sdn Bhd head of research Victor Wan said the profit taking was "very much expected" after most Asian stocks traded positively yesterday. “We have recovered quite a substantial bit after the recent selldown earlier in February,” Wan told the theedgemarkets.com. “The market’s performance in the near term has got to depend on the corporate earnings announcements this month,” he said. “Last week we saw an encouraging set of economic data, and now we have to see if these data will be reflected in the corporate earnings as well. Bursa Malaysia saw a total of 2.28 billion shares...

Market Daily Report: Most share prices up on Bursa, KLCI gains 1%

KUALA LUMPUR (Feb 19): Share prices on Bursa Malaysia closed higher as buying interest emerged, taking cue from the US market which had had its best weekly performance in five years and higher oil price. The FBM KLCI climbed 19.04 points or 1.04% at 1,857.32 points at the closing bell. The benchmark index traded in the range between 1,841.78 points and 1,858.23 points today. MIDF head of research Mohd Redza Abdul Rahman said the market was rather quiet with total trading volume of 2.36 billion shares today. Value of shares traded amounted to RM1.89 billion, with positive market breadth of 824 gainers versus 193 losers, while 288 counters remained unchanged. “Counters of interest were mostly from the mid small cap, like PUC Bhd, Sino Hua-An International Bhd, Sapura Energy Bhd, Hibiscus Petroleum Bhd and Iris Corp Bhd,” he said. Meanwhile, Brent Crude bounced back to above US$65 per barrel while the ringgit strengthened further to 3.8899 against the US ...

Market Daily Report: KLCI up 0.18% on US inflation rate within market expectation

KUALA LUMPUR (Feb 15): The FBM KLCI rose 3.35 points or 0.18% to close at 1,838.28 in the final trading session before the Chinese New Year holidays on news that US January 2018 inflation data, which was released yesterday, was within the market expectation. Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng said the US inflation data would not probably add fuel to the interest rate hikes. "It is a short week now for regional markets. Judging from US markets' performance last night, I think most of the investors would be relieved a bit because the inflation figure wasn't that high and within expectation rate. "It (the inflation number) is not really surprising although slightly above but still manageable. "For that, US markets also expect the aggressive rate hike may not happen after [the] few days of global sell-down, I think it is now stabilised," he told theedgemarkets.com when contacted. Wong said the local ma...

Market Daily Report: FBM KLCI up after Malaysia announces GDP growth amid US inflation jitter

KUALA LUMPUR (Feb 14): The FBM KLCI gained 1.91 points or 0.1% after volatile trade as investors evaluated Malaysia's latest economic growth data while anticipating US inflation numbers. At 5pm, the KLCI settled at 1,834.93. Earlier today,  Bank Negara Malaysia said Malaysia's gross domestic product (GDP) expanded 5.9% in the fourth quarter of 2017 from a year earlier, driven mainly by private sector demand with support from the external sector. In a statement, Bank Negara said 2017 full-year GDP grew 5.9% on year compared with the 4.2% expansion in 2016. "The GDP data release only reinforced the market's perception that 2017 was a good year. However, it didn't spark any significant push in Bursa Malaysia as investors are still generally jittery ahead of the announcement of US inflation data," Public Investment Bank Bhd head of research Ching Weng Jin told theedgemarkets.com. The US Jan 2018 inflation data is scheduled to be announ...

Market Daily Report: Malaysian stocks end day on positive note

KUALA LUMPUR (Feb 13): The Malaysian stock market continued its positive drive for the second consecutive day, albeit at lower volume as investors are still hesitant to engage in any transactions. The FBM KLCI closed 2.85 points or 0.16% higher at 1,833.02 today. Market breadth was positive with 495 gainers compared with 409 losers. JF Apex Securities Bhd said trading volume decreased to 1.62 billion shares worth RM2.44 billion compared with yesterday’s 1.8 billion shares worth RM2.27 billion. "The performance of our local bourse was lifted by buying interest in heavyweight counters such as Maxis Bhd, AMMB Holdings Bhd and Hap Seng Consolidated Bhd." Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng said the local market is still cautious of the US markets' rebound. "Investors are going through the ripple effects of the aftermath of last week's market sell-down in the US. I believe the market will remain relatively q...

Market Daily Report: Malaysian stocks close higher in tandem with regional markets

KUALA LUMPUR (Feb 12): Malaysian stocks closed higher today, in tandem with most Southeast Asian stock markets following a higher Friday close for US stocks after a wild week. The FBM KLCI ended the day up 10.35 points or 0.57% at 1,830.17, after hovering between 1,834.45 and 1,824.89 today. Market breadth was negative with 484 losers compared with 453 gainers with and 480 counters unchanged. AmInvestment Bank Research analyst Lim Sae Wai said investors are still bracing for more volatile trading days ahead for fear of another market selldown in the US market. "At the moment, our local market is very much dependent on international market sentiment, especially the US. But even with the rebound (in US stocks) last Friday, most investors are not convinced that the market sell down is over," he told theedgemarkets.com. "On a slightly medium-term outlook, the market is still considered going through a healthy correction after being overbought of...

Market Daily Report: FBM KLCI sinks 1.07% on global equity rout

KUALA LUMPUR (Feb 9): The FBM KLCI sank 19.62 points or 1.07% to close at 1,819.82 today, shaving off yesterday's gains as most global markets tumbled into the red on fears of higher US interest rates. As the volatile trading week came to an end, the benchmark index had lost 50.66 points or 2.71% compared with 1,870.48 at the close of last week. Meanwhile, the small cap index recorded an even larger decline of 257.75 points or 1.57% today to 16,120.74. Market breadth remained negative, with 900 decliners outpacing 208 gainers. Decliners were led by Panasonic Manufacturing Malaysia Bhd, Petronas Gas Bhd and Carlsberg Brewery Malaysia Bhd, while Petronas Dagangan Bhd, Enra Group Bhd and Nestle (M) Bhd were the top gainers. Naim Indah Corp Bhd, AirAsia X Bhd and Hibiscus Petroleum Bhd were among the most actively traded stocks on the bourse, which saw 2.45 billion shares traded for a total of RM2.67 billion. Loui Low, head of retail research at Hong Leong...

Market Daily Report: Malaysian stocks end higher for second day in row

KUALA LUMPUR (Feb 8): The local stock market closed higher today for a second straight session of gains, as local institutions appear to buy back into stocks, albeit selectively. The FBM KLCI ended the day 2.76 points or 0.15% higher at 1,839.44. The benchmark index rose as high as 1,842.65 points today. At its session low, it was down to 1,834.83 points. “Investors are still watching developments in the US markets and looking out for clues,” Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com today. He said foreign funds and retail investors have turned net sellers recently. Wong is of the view there are no signs of a crisis, with the local market still fundamentally strong. “I doubt there will be any large impact on Bursa,” he said in relation to the volatility in the US markets. Trading volume decreased to 2.05 billion shares worth RM2.08 billion, compared with yesterday's 3.32 billion shares worth RM3508.28 million. ...

Market Daily Report: KLCI rebounds but sentiment remains cautious

KUALA LUMPUR: The FBM KLCI staged a rebound today after the sharp fall in the past two trading days. Selling subsided following the overnight gain on Wall Street. The benchmark index gained 24.23 points or 1.34% at 1,836.68 at the closing bell — it was indeed among top performers in the region. Some major regional bourses, such as Hong Kong and South Korea, continued to head south. However, the upward trend on Bursa Malaysia was not across the board with 540 gainers versus 527 losers. The FBM Small-Cap Index was almost flat — it was only up 2.29 points or 0.01% at 16,285 points. This indicates that market sentiment remains cautious following the fierce selldown. A total of 3.32 billion shares worth RM3.5 billion were traded today. "The Malaysian market was more resilient than its peers as most of the gainers were well supported today,” said TA Securities technical analyst Stephen Soo, noting that the positive impact of the overnight rebound on Wal...

Market Daily Report: FBM KLCI declines 0.93% amid profit-taking, fall in global markets

KUALA LUMPUR (Feb 5): The FBM KLCI took a breather today following the rapid gains since the last two weeks of 2017 to close lower amid some profit-taking activity and the general decline in global markets. The benchmark index fell 17.41 points or 0.93% to 1,853.07. The fall marks the first significant decline in the KLCI in 2018, after peaking at around the 1,870 level last week. PublicInvest head of research Ching Weng Jin said the decline in the index was due to profit-taking activity, but added that the fundamentals of the local market remain intact. “The KLCI fell in line with global markets and there has been some profit-taking activity. It’s about time the market took a breather after the rapid rise since the last few weeks of 2017. “Either way, our fundamentals are still intact so this is likely to be a short-term retreat,” said Ching. A total of 2.64 billion shares worth RM2.85 billion were done. Market breadth was negative as 777 decliners outn...

Market Daily Report: KLCI ends on flat note

KUALA LUMPUR (Feb 2): The FBM KLCI traded sideways today as investing interest subsided in the holiday-shortened week. Furthermore, selling pressure on Wall Street has also curbed interest in the local bourse, in addition to absence of local buying impetus. The benchmark index was nearly flat to close at 1,870.48 points, up barely 1.9 points against the closing on Tuesday. Hong Leong Investment Bank Bhd head of retail research Loui Low told theedgemarkets.com today’s market showed little movement given the uncertainties on Wall Street after some selling pressure in the earlier of the week. “After the two days of holiday, the market is digesting news of the selldown seen in US over the past few days,” said Low. He commented that it is wise for investors to take profit on the small cap stocks considering the uncertainties in the US market. Across Bursa Malaysia, a total of 2.61 billion shares worth RM3.25 billion were done. Market breadth w...