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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: FBM KLCI declines after US rate hike

KUALA LUMPUR (Sept 27): The FBM KLCI fell 0.08 point to settle at 1,798.64 points with Asian shares after the US Federal Reserve (Fed) raised interest rates. At 5pm, the KLCI cut losses after falling to its intraday low at 1,793.83 points. Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com the KLCI was, however, supported by rising crude oil prices at above US$80 a barrel. “(At Bursa Malaysia) the sentiment was quite negative today. Both FBM Small Cap and ACE (indices) were in the red most of the day, mainly affected by the Fed’s move to raise interest rates. "It was not just us, most emerging markets were declining today. This trend is likely to persist in the near term,” Leong said. Across Asian stock markets, Japan’s Nikkei 225 fell 0.99% while Hong Kong's Hang Seng declined 0.36%. Bloomberg reported that stocks in Europe and Asia fell Thursday as investors digested the likelihood of more Federal Reserve interest-r...

Market Daily Report: FBM KLCI rises with China shares as trade war concerns subside

KUALA LUMPUR (Sept 26): The FBM KLCI closed 4.25 points or 0.24% higher after China-US trade war concerns subsided. Asian shares also took cue from China equity gains after MSCI indicated it will consider quadrupling the weighting of Chinese big caps in its global benchmarks. At Bursa Malaysia, the KLCI ended at 1,798.72 points. In China, the Shanghai Stock Exchange Composite rose 0.92% while Hong Kong’s Hang Seng was up 1.15%. Elsewhere, Japan’s Nikkei 225 was up 0.39% while South Korea markets remained close today for the Chuseok Day holiday. Reuters reported that Asian shares pulled ahead on Wednesday as Chinese markets extended their recovery to hit eight-week highs on receding fears about the trade war as well as hopes China's weighting in the global benchmark will be increased. It was reported that MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.5 percent. It was reported that MSCI said it will consider quadrupling the wei...

Market Daily Report: FBM KLCI down at intraday low as trade war hits sentiment

KUALA LUMPUR (Sept 25): The FBM KLCI closed 5.7 points or 0.32% lower today after China and the US' move to slap new tariffs on each other's goods yesterday continued to hit world market sentiment. At 5pm today, the KLCI closed at its intraday low at 1,794.47 points. The KLCI extended losses today after the index fell 10.47 points yesterday. Across the globe today, Reuters reported that Asia stocks struggled on Tuesday as a fresh round of US-China tariffs and a surge in oil prices to near four-year highs added to worries about risks to global growth. MSCI's broadest index of Asia-Pacific shares outside Japan edged down 0.15 percent. It was reported that the US' Dow Jones Industrial Average fell about 0.7 percent and the S&P 500 slipped 0.35 percent overnight. In Malaysia today, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com the weakness in the KLCI was also in tandem with general negative sentiment acr...

Market Daily Report: FBM KLCI drops 10.47 points, Bursa share value dips below RM1.5b as trade war hits sentiment

KUALA LUMPUR (Sept 24): The FBM KLCI dropped 10.47 points or 0.58% on profit taking in light of heightened China-US trade war concerns. At 5pm, the KLCI settled at 1,800.17 while share-trade value across Bursa Malaysia fell to RM1.499 billion. Reuters reported that Asian shares stumbled in holiday-thinned trading on Monday as China's decision to cancel talks with the United States sparked fears of a protracted trade war, while oil rallied as Saudi Arabia ruled out increasing supplies to cool crude prices. Investors were squarely focused on the Sino-US trade war as China added US$60 billion of US products to its import tariff list, retaliating against US duties on US$200 billion of Chinese goods that came into effect at 0401 GMT Monday. China also cancelled mid-level trade talks with the United States, as well as a proposed visit to Washington by Vice Premier Liu He which had been scheduled for this week, the Wall Street Journal reported. In Malaysia to...

Market Daily Report: FBM KLCI rises as Bursa share trade tops RM3.6b

KUALA LUMPUR (Sept 21): The FBM KLCI closed 6.94 points or 0.38% higher, while value across Bursa Malaysia climbed to RM3.61 billion as investors reckoned that the China-US trade war appeared to be less harsh than expected. At 5pm, the KLCI ended at 1,810.64 points as KLCI-linked companies Dialog Group Bhd, Malayan Banking Bhd and CIMB Group Holdings Bhd emerged among Bursa Malaysia's most-active stocks. Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew said the KLCI’s performance reflects the sentiment shared by global markets that the trade war appears to be less harsh than expected. “However there is no assurance that sentiment won’t turn around tomorrow. It seems to fluctuate on a daily basis. Perhaps the reason for the improved sentiment is because markets had been bracing itself for something worse instead. Let’s just hope that the positive market reaction is sustained,” Pong told theedgemarkets.com. Across Bursa Malaysia today, ...

Market Daily Report: FBM KLCI up as trade war appears less harsh than expected

KUALA LUMPUR (Sep 20): The FBM KLCI closed up 2.99 points or 0.17% at 1,803.7 points as the China-US trade war appeared less harsh than expected. Global crude oil price gains also improved sentiment on shares of Malaysian oil and gas companies. Reuters reported that a bounce in world stocks in relief that the fresh US and Chinese tariffs on reciprocal imports were less harsh than feared continued on Thursday, although investors remained wary about the next steps in the US-Sino trade war. It was also reported that oil prices rose on Thursday after news of another drawdown in US crude inventories and on signs that OPEC may not raise production enough to compensate for the loss of Iranian exports hit by US sanctions. Benchmark Brent crude was up 20 cents at US$79.60 by 0740 GMT, its third day of gains. US light crude oil was 40 cents higher at US$71.52 a barrel, after rising nearly 2 percent on Wednesday. In Malaysia today, Areca Capital Sdn Bhd chief executiv...

Market Daily Report: FBM KLCI rebounds above 1,800 points as Malaysian shares play catch up

KUALA LUMPUR (Sept 19): The FBM KLCI rose 7.77 points or 0.43% to close at 1,800.71 points today as Malaysian shares played catch up with Asian shares and after US equities' overnight rise.   Today, the KLCI closed higher after yesterday’s 10.82-point drop at 1,792.94 points caused by a knee-jerk impact on market sentiment from the escalating China-US trade dispute. Malaysian shares resumed trading yesterday after markets were closed on Monday in lieu of Malaysia Day which fell on Sunday. Today, Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com: “Besides the overnight performance of Dow (Jones Industrial Average), today’s performance of the KLCI is also because of the KLCI catching up with the regional market, after closing lower yesterday versus the broader region. “However in the short term, I think it will still be a choppy market, with the KLCI hovering around the 1,800-mark barring any external factors.” Across As...

Market Daily Report: KLCI down 10.82 points as escalating US-China trade war hits sentiment

KUALA LUMPUR (Sept 18): The FBM KLCI fell 10.82 points or 0.6% on profit taking and as the escalating US-China trade war hurt market sentiment. At 5pm, the KLCI settled at 1,792.94 points after falling to its intraday low of 1,788.52 points. Investors took profit today after the KLCI rose 11.16 points to 1,803.76 points on Friday. Today, selling was seen among KLCI-linked banking stocks, which, partly led to the 226.87 point or1.27% drop in Bursa Malaysia's finance index at 17,696.57 points. Malaysian shares resumed trading today after markets were closed yesterday in lieu of Malaysia Day which fell on Sunday. Today, Malaysian shares took cue from the escalating US-China trade war. Reuters reported that investors were nervous after US President Donald Trump imposed 10 percent tariffs on an additional US$200 billion worth of Chinese imports, and warned of duties on more products if China took retaliatory action. It was reported that Asian shares spent mos...

Market Daily Report: FBM KLCI up 11.16 points after Morgan Stanley upgrade, Asian share gain

KUALA LUMPUR (Sept 14): The FBM KLCI rose 11.16 points or 0.62% with Asian markets as sentiment remained buoyant on the expected renewal of China-US trade talks. Morgan Stanley's move to upgrade Malaysia stocks to equal weight also supported the country's blue-chip shares. At 5pm, the KLCI closed at 1,803.76. Asian shares made notable gains after Japan’s Nikkei 225 closed up 1.2% while South Korea’s Kospi was 1.4% higher. Elsewhere, Hong Kong's Hang Seng rose 1.01%. Reuters reported that shares across most of Asia rose on Friday on expectations that the US and China could launch a fresh round of trade talks, and as a surprisingly sharp interest rate hike in crisis-hit Turkey supported the lira and global risk appetite. In Malaysia, TA Securities Holdings Bhd senior technical analyst Stephen Soo told theedgemarkets.com that "Malaysia’s blue chips were also supported by an upgrade to equal weight by Morgan Stanley". Bloomberg reported t...

Market Daily Report: KLCI up with regional peers as US and China agree to talk

KUALA LUMPUR (Sept 13): The FBM KLCI closed up 7.35 points or 0.41% on bargain hunting and as Asian stocks rose on renewed interest in US-China trade talks. Reuters reported that Asian shares advanced on Thursday on news the Trump administration has reached out to China for a new round of trade talks, which raised hopes for a deal easing the bitter tariff dispute between the world's two biggest economies. It was reported that MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.6 percent, a day after it hit 14-month lows. At Bursa Malaysia, the KLCI closed at 1,792.6 after falling to its intraday low at 1,777.45. Yesterday, the KLCI fell 13.92 points. Today, Vincent Khoo, head of research for Malaysia at UOB Kay Hian said: “I think the local market will continue to be squeezed by external sentiment." Khoo noted that the KLCI's recovery followed the direction of regional peers. He said Malaysian markets may continue to track t...

Market Daily Report: KLCI falls 13.92 points as local stocks catch up with regional decline

KUALA LUMPUR (Sept 12): The FBM KLCI fell 13.92 points or 0.77% to close at 1,785.25 today in what appears to be a catch-up with the decline in other Asian markets as it reopened after a two-day holiday. Market breadth across the bourse was strongly negative, with 778 stocks declining and just 146 recording gains. “It looks like contagion fears are increasing," said said Stephen Soo, senior technical analyst at TA Securities. "It could also be a currency play, with regional funds continuing to exit.” Investors appear psychologically bearish despite Malaysia’s strong fundamentals, due in part to an ongoing depreciation of regional currencies, Soo told theedgemarkets.com. Ajinomoto (M) Bhd, Aeon Credit (M) Bhd and Dutch Lady Milk Industries Bhd led the list of decliners, while gainers were led by British American Tobacco (M) Bhd, Panasonic Manufacturing Malaysia Bhd and Petronas Gas Bhd. The most active counters were Sapura Energy Bhd, Borneo Oi...

Market Daily Report: FBM KLCI up marginally as markets brace for new salvo in China-US trade spat

KUALA LUMPUR (Sept 7): The FBM KLCI closed 0.6 point or 0.03% higher after an 11th-hour rise on bargain hunting. The KLCI had earlier fallen as global investors braced for new salvos in the China-US trade spat. At Bursa Malaysia, the KLCI ended at 1,799.17 points at 5pm after falling to its intraday low at 1,795.29 points. Reuters reported that Asian shares carved out a 14-month trough on Friday as investors feared a new salvo of Sino-US tariffs could come at any moment, while a slump in US chip stocks rippled through the tech-heavy region. It was reported that nerves were set to be frayed further as the public comment period for proposed tariffs on an additional US$200 billion worth of Chinese imports ended at 0400 GMT. The tariffs could now go into effect at any moment, though there was no clear timetable. China has warned of retaliation if Washington launches any new measures. In Malaysia, CIMB Research analyst Nick Foo Mun Pang told theedgemarkets.com t...

Market Daily Report: KLCI lifted by bargain hunting but seen closing lower before the weekend

KUALA LUMPUR (Sept 6): The FBM KLCI made marginal gains today, thanks to bargain-hunting activities on selected index heavy weights. At 5pm, the benchmark index closed 3.07 points or 0.17% higher at 1,798.57 points, with a trading range of between 1,794.79 points and 1,802.60 points for the day. Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the KLCI's performance today, which closed in positive territory for the first time in the past six trading days, was also underpinned by the ringgit's stability, despite falling to its lowest in more than nine months yesterday. "However, the broader market remains under pressure, like FBM Small Cap, Fledgling, and ACE Market — all were in the negative territory, as selling pressure prolonged. We believe the broader market weakness was because of trade uncertainty between the US and China," he said. "Tonight, US President Trump is widely expected to announc...

Market Daily Report: FBM KLCI down 0.95%, ringgit weakens as US-China trade spat lingers

KUALA LUMPUR (Sept 5): The FBM KLCI slipped 17.26 points or 0.95% with Asian markets on US-China trade war escalation concerns. Such sentiment led to the ringgit's depreciation against a strengthening US dollar. At Bursa Malaysia, the KLCI closed at its intraday low at 1,795.5 points. Across Bursa Malaysia, 2.91 billion shares were traded for RM2.92 billion as investors took cue from Asian equity losses. In China, the Shanghai Stock Exchange Composite lost 1.68% while Hong Kong's Hang Seng  fell 2.61%. Elsewhere across Asia, Japan's Nikkei 225 dropped 0.51% while South Korea's Kospi was 1.03% lower. Reuters reported that a looming deadline in the US-China trade conflict kept the dollar near two-week highs on Wednesday, inflicting fresh losses on emerging markets and sending world stocks lower for the fourth day in a row. It was reported that a public comment period on the possibility of fresh US tariffs on another US$200 billion of Chines...

Market Daily Report: FBM KLCI down 0.33% amid escalating US-China trade war concerns

KUALA LUMPUR (Sept 3): The FBM KLCI dipped 6.08 points or 0.33% as escalating US-China trade war concerns weighed upon Asian shares. At 5pm, the KLCI closed at 1,813.58 points. In China, the Shanghai Stock Exchange Composite closed down 0.17% while Hong Kong's Hang Seng fell 0.63%. Elsewhere, Japan's Nikkei 225 dropped 0.69% while South Korea's Kospi was 0.68% lower. Reuters reported that Asian stocks dropped for the third consecutive session on Monday, hit by worries over further escalation of the US-China trade war and unstable emerging market currencies. It was reported that US President Donald Trump said last week he was ready to implement the new tariffs as soon as a public comment period on the plan ends on Thursday, which would be a major escalation given the US has already applied tariffs on US$50 billion of exports from China. In China today, it was reported that Chinese stocks fell on Monday as a private survey showed China’s manufact...