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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 down 1% dragged by Genting counters as Brent dips below US$60

KUALA LUMPUR (Nov 27): The FBM KLCI closed down 17.02 points or 1% at 1,684.97, dragged down mainly by Genting Malaysia Bhd (GENM) and Genting Bhd's share price drop. China-US trade war concerns and Brent crude oil's price fall below US$60 a barrel could have also hit Malaysian market sentiment. Genting Bhd owns a 49.45% stake in GENM. theedgemarkets.com, quoting GENM, reported today that Fox Entertainment Group LLC, Twentieth Century Fox Film Corp, FoxNext LLC (collectively referred to as FOX) issued a notice, in which FOX terminated a Memorandum of Agreement (MoA) with GENM and claimed some US$46.2 million (about RM193.6 million) in accelerated payments. It was reported that GENM has pursued cause of action against FOX for breach of contract, and breach of the implied covenant of good faith and fair dealing, among others. At 5pm, GENM closed down 60 sen or 16.67% at RM3 while Genting Bhd fell 52 sen or 7.54% to RM6.38. GENM was the top decliner, ...

Market Daily Report: FBM KLCI flat as investors remain cautious

KUALA LUMPUR (Nov 22): The FBM KLCI rose 0.25 point or 0.01% to close at 1,695.62 after volatile trade amid concerns on rising US interest rates besides global trade tension and economic growth. At 5pm, the KLCI closed at 1,695.62 after rising to its intraday high at 1,701.74 and falling to its intraday low at 1,689.03. CIMB Research analyst Nick Foo Mun Pang said CIMB expects the KLCI to see sideways movement in the near term, until there is greater clarity on the market’s direction. “The index will see a range bound move until a clear breakout either up or down takes place,” Foo wrote in a note today. Across Bursa Malaysia today, 1.75 billion shares worth RM1.44 billion were exchanged. Top gainer was Fraser & Neave Holdings Bhd while leading decliner was Pos Malaysia Bhd. Rising US interest rates, besides global trade tension and economic growth concerns dictated Asian share trades. Reuters reported that Asian shares seesawed in cautious trading on ...

Market Daily Report: FBM KLCI falls 0.9% as economic growth concerns hit global equities

KUALA LUMPUR (Nov 21): The FBM KLCI fell 15.34 points or 0.9% today to close at 1,695.37 after US equities dropped overnight on Tuesday with crude oil prices amid world economic growth concerns. Reuters reported that US stocks sold off for a second day on Tuesday as energy shares dropped with oil prices, and retailers including Target and Kohl's sank after weak earnings and forecasts, fueling worries about economic growth. Today, it was reported that Asian stocks slipped as intensifying concerns about global economic growth gripped financial markets, sending Wall Street shares tumbling and driving the safe haven dollar up from a two-week low. In Malaysia, Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew told  theedgemarkets.com: “The KLCI was dragged down by the poor performance seen overnight in US markets, which reflects the globally weak sentiment on equities." At 5pm, worst-hit among the 30 KLCI stocks, in percentage terms, was...

Market Daily Report: FBM KLCI up as banking, plantation stocks gain

KUALA LUMPUR (Nov 19): The FBM KLCI gained 4.33 points or 0.25% with major Asian equity markets and as Malaysian banking and plantation shares rose. The ringgit strengthened. At 5pm, the KLCI closed at 1,710.71 points, supported by gains in banking stocks like Public Bank Bhd and CIMB Group Holdings Bhd. Gains in plantation stocks like Sime Darby Plantation Bhd and PPB Group Bhd also supported the KLCI's rise. “The index movement was influenced mostly by banks such as CIMB, Public Bank, and Malayan Banking Bhd as well as plantation stocks like Sime Darby Plantation and PPB as palm oil futures recovered," MIDF Amanah Investment Bank Bhd research head Mohd Redza Abdul Rahman told theedgemarkets.com. Reuters reported that Malaysian palm oil futures rose more than 1.6 percent on Monday as market stabilised after being oversold last week. The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange rose 1.62 percent to R...

Market Daily Report: KLCI up 0.72% as expectations on slowing trade tensions persist

KUALA LUMPUR (Nov 16): The FBM KLCI rose 0.72% for a third consecutive day of gains amid continued expectations of slowing trade tensions between the US and China ahead of the G20 meeting later this month. The benchmark index trailed overnight gains at Wall Street to open higher today, and stayed flat in the green before closing up 12.17 points at 1,706.38. Reuters reported that Asian shares had started firm after reports the US might pause on further China tariffs gave Wall Street a fillip, but a near 17% plunge in Nvidia's stock tempered the mood. Across Bursa Malaysia, gainers led decliners by 450 counters against 345, whereas 390 counters traded unchanged. Some 1.85 billion shares worth RM1.89 billion exchanged hands. An analyst at AmInvest Research attributed the market-wide gain to "short-term optimism based on global market movements and news on international trade". "People are expecting [US president Donald] Trump and [China...

Market Daily Report: FBM KLCI up as China-US trade war de-escalation hope spurs Asian equities rise

KUALA LUMPUR (Nov 15): The FBM KLCI closed up 5.8 points or 0.34% at 1,694.21 as anticipation of China-US trade war de-escalation spurred Asian stock markets' rise. In China, Hong Kong’s Hang Seng gained 1.75% while the Shanghai Stock Exchange Composite climbed 1.36%. Elsewhere across Asia, South Korea’s Kospi rose 0.97%. Reuters reported that Asian stocks rose on Thursday, cheered by a bounce in Chinese equities on signs China and the US may be taking steps to de-escalate their bitter trade dispute, while oil prices resumed their retreat on fears of oversupply. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.7%. In Malaysia, Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com the KLCI appeared to have bottomed out as most of the negative news flow, such as the ringgit's weakening against the US dollar as well as the decline in crude oil prices, have been factored in by investors. “I think the ind...

Market DailyReport: KLCI sees 11th hour gain as oil prices weigh on sentiments

KUALA LUMPUR (Nov 14): The FBM KLCI made an eleventh hour gain to close at an intra-day high after being in the negative zone for most of the day, weighed down by weak crude oil prices, which impacted market sentiment. At 5pm, the benchmark index closed at 1,688.41 points, up 0.84 points or 0.05% after slipping to a low of 1,678.82 today. CIMB Research analyst Nick Foo Mun Pang told theedgemarkets.com that apart from weak crude oil prices, investors anticipate third quarter corporate earnings to be tepid. "It is widely expected that third quarter earnings are not going to be exciting. Also in the near term, investors are cautious that global growth is slowing down due to global trade protectionism.    "Technically, the KLCI movement is showing a lower low and lower high formation, a pattern that indicates the KLCI would likely be in the downtrend. Even if there is bargain hunting in the near term, the index rebound will be capped because overall se...

Market Daily Report: FBM KLCI extends loss, ringgit weakest in a year against US dollar

KUALA LUMPUR (Nov 13): The FBM KLCI fell 8.57 points or 0.51% to close at 1,687.57 in tandem with certain Asian equity indices following US stocks' overnight tumble. At 5pm today, the KLCI extended losses after the index closed down 11.95 points or 0.7% yesterday. Among Asian equity indices today, Japan’s Nikkei 225 fell 2.06% while South Korea’s Kospi decreased 0.44%. In Malaysia today, Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com: “The KLCI joined the regional indices to close lower today and extended losses for three consecutive days, mainly due to the spillover effect from the weakness in the US stock market." “(On the) Domestic front, the KLCI was also hit by the weakening ringgit against the US dollar, coupled with lower crude oil and crude palm oil prices,” Leong said.    Bloomberg reported that the ringgit fell to the weakest in a year after the dollar rallied and crude prices failed to find a floor. It ...

Market Daily Report: FBM KLCI down 11.95 points as ringgit, oil weigh on Malaysia fiscal outlook

KUALA LUMPUR (Nov 12): The FBM KLCI closed down 11.95 points or 0.7% at its intraday low. Analysts said investors were concerned over the impact of crude oil prices on Malaysian government finances as they evaluated the depreciating ringgit against a strengthening US dollar. At 5pm, the KLCI closed at 1,696.14. Across Bursa Malaysia, 1.63 billion shares worth RM1.32 billion were traded. In currency markets, the ringgit weakened to 4.1880 against the US dollar at the time of writing after trading between 4.1797 and 4.1890 today. “Our Budget 2019 [allocation] is based on an average crude oil price of US$70 per barrel. But now that crude oil prices have fallen to the US$70 range, if it continues to tank below US$70, we are at risk of not meeting the Budget deficit of 3.4% of gross domestic product,” Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com. Reuters reported that front-month Brent crude futures, a benchmark for global oil p...

Market Daily Report: Market remains cautious amid lingering concern on US interest rate hike

KUALA LUMPUR (Nov 9): Taking cue from the weak regional sentiment, the FBM KLCI dropped 13.33 points or 0.77% at the closing bell today, to end the week at 1,708.09 points. The fall is smaller relative to other markets in the region. Across Asia, Japan's Nikkei 225 dropped 1.05%, South Korea's Kospi fell 0.31% while Hong Kong’s Hang Seng was down 2.39%. The US Federal Reserve held interest rates steady on Thursday but investors did not breathe a sigh of relief simply because of the lingering concern another rate hike is possible as the American economy continues to show healthy growth, according to analysts. The US Federal Reserve has raised interest rates three times this year and is widely expected to do so again next month, Reuters reported. Reuters reported that Asian stocks pulled back from a one-month high on Friday as the US Federal Reserve looked set to deliver another interest rate hike next month, paring gains made earlier this week a...

Market Daily Report: KLCI posts second day of gains, led by telecom stocks

KUALA LUMPUR (Nov 8): Malaysian stocks closed higher for second straight day today as foreign investors continued to buy into market. The benchmark FBM KLCI ended 6.54 points or 0.38% higher at 1,721.42 points, led by telecommunication stocks. The gain also mirror the moves globally after Wall Street's overnight rally. According to Inter-Pacific Securities research head Pong Teng Siew, foreign buying helped propped up the local stock market, as well as gains in Maxis Bhd, DiGi.com Bhd and Axiata Group Bhd. He believes that foreign funds are starting to trickle back into the market as valuations of some bluechips are again turning attractive, adding that the strengthening of the ringgit against the US dollar helped to stabilise sentiments. At the time of writing, the ringgit was trading at 4.1595 to the greenback. Additionally, Pong said the recovery in oil prices has helped the market. Brent crude futures rose 0.42% to US$72.37 per barrel at the ...

Market Daily Report: FBM KLCI outperforms regional peers as MAHB rallies

KUALA LUMPUR (Nov 7): The FBM KLCI closed in the positive territory today after gaining traction in the final trading hour, before closing up 6.08 points, thanks to gains made by Malaysia Airports Holdings Bhd (MAHB). "The index hovered mostly in positive territory today, underpinned mainly by gains by MAHB after it had recovered most of the previous session's sell down following the government's announcement of a proposed first airport REIT," Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com when contacted. MAHB rose 7.23% or 55 sen to close at RM8.16, after 5.55 million shares were done. The counter declined on Monday after the government said it intends to set up the world's first "airport real estate investment trust (REIT)" when tabling the recent Budget 2019 last Friday. At 5pm, the FBM KLCI settled at 1,714.88 points, with 2.32 billion shares traded for a value of RM2.5 billion. Gainers ...

Market Daily Report: KLCI closes lower ahead of Diwali, dragged by gaming stocks

KUALA LUMPUR (Nov 5): Malaysian stocks closed slightly lower today, dragged down by gaming stocks amid lingering worries over the impact of a hike in casino duties – the first in the last 20 years. The negative performance was also in tandem with regional peers as optimism over a potential US-China trade deal receded. Investors booked profits as caution set in ahead of Diwali, with the FBM KLCI settling 5.07 points or 0.3% lower at 1,708.80 points. Shares of Genting Malaysia Bhd (GENM) plunged 20.48% or 93 sen in one day to close at RM3.61 as investors reacted to last Friday's Budget 2019 announcement that casino duties will be raised to 35% from 25% and an increase in the flat rate casino licence fee to RM150 million from RM120 million per year. A total of 379.04 million shares changed hands, making GENM the most active stock on Bursa Malaysia today. Its market capitalisation fell to RM20.41 billion from RM25.67 billion last Friday. Shares of its paren...

Market Daily Report: KLCI up as US-China dispute ebbs; Genting falls

KUALA LUMPUR (Nov 2): The FBM KLCI gained 6.95 points or 0.41% to close at 1,713.87 after Asian shares ended higher and as Malaysia unveiled its Budget 2019. Asian equities rose on news the US is taking steps to resolve a damaging trade war with China. Reuters reported that Asian shares rocketed to three-week highs on Friday while the dollar softened on a report that US President Donald Trump is taking steps to resolve a damaging trade war with China that has cast a pall over the global economy and financial markets recently. It was reported that MSCI's broadest index of Asia-Pacific shares outside Japan jumped 2.7 percent to hit its highest level since Oct 10. It is up 6.4 percent on the week, on course to mark its best weekly performance in three years. Among Asian stock indices today, Japan’s Nikkei 225 gained 2.56%, Hong Kong’s Hang Seng gained 4.21% while South Korea’s Kospi rose 3.53%. In Malaysia, JF Apex Securities Bhd said the positive perfo...

Market Daily Report: FBM KLCI down ahead of Budget 2019

KUALA LUMPUR (Nov 1): The FBM KLCI fell 2.35 points or 0.14% to close at 1,706.92 points today as risk-averse investors held back ahead of Malaysia's Budget 2019 announcement tomorrow. Today, Areca Capital Sdn Bhd CEO Danny Wong told theedgemarkets.com that Malaysian stock market sentiment is uncertain currently ahead of the Budget announcement. Globally, there is also lingering uncertainty due to the US-China trade dispute, Wong said. “Investors are holding back ahead of Budget 2019, which makes this week crucial for the local market," Wong said. Across Bursa Malaysia today, 2.18 billion shares worth RM1.66 billion were traded. Top decliners included Dutch Lady Milk Industries Bhd, Fraser & Neave Holdings Bhd and Ajinomoto (M) Bhd while gainers were led by British American Tobacco (M) Bhd. Asian stock markets ended mixed. In China, Hong Kong’s Hang Seng gained 1.75% while the Shanghai Stock Exchange Composite rose 0.13%. Elsewhere across As...