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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 ends on flat note

KUALA LUMPUR (Oct 21): The FBM KLCI fell to a low of 1,565.08 points today before recouping to close at a marginal 0.01% drop on Monday, following the decline in US equities on Friday (Oct 18). At 5pm, the benchmark index finished 0.22 points down at 1,570.93. Main decliners were AMMB Holdings Bhd and Genting Bhd, which fell to close 1.99% and 1.05% lower respectively. Market breadth was negative with more losers than gainers at 435 versus 383 at the end of the trading day. Total turnover stood at a total of 2.58 billion shares, worth RM1.48 billion. Inter-Pacific Securities Sdn Bhd's head of research Pong Teng Siew told theedgemarkets.com that the key index’s performance today was a “knee-jerk reaction” to the fall in US equities, coupled with the “lack of driving factors locally”. In China, the Shanghai Stock Exchange Composite Index was up 0.05% at its close, while Hong Kong’s Hang Seng Index rose 0.02% at the end of trading day after Chinese bourses ...

Market Daily Report: FBM KLCI finishes down on China GDP as planters fall

KUALA LUMPUR (Oct 18): The FBM KLCI ended 3.35 points or 0.21% lower today at 1,571.15 after China said its economy, as measured by Gross Domestic Product (GDP), grew 6% in the third quarter of 2019 (3Q2019) from a year earlier. China's 3Q2019 GDP growth, which missed market forecast, slowed from 2Q2019's 6.2% expansion. Such sentiment weakened world markets because China is the world's second-largest economy and also a major importer of global goods. Reuters reported that China's economic growth slowed more than expected to 6% year-on-year in 3Q2019, the weakest pace in at least 27½ years, as demand at home and abroad faltered amid a bruising US-China trade war. It was reported that analysts polled by Reuters had forecast China's GDP to grow 6.1% in the July-September quarter from a year earlier. "Asian stocks stumbled on Friday, erasing earlier gains after China posted its weakest growth in nearly three decades, countering a glob...

Market Daily Report: FBM KLCI ends on tepid note as no news on US-China trade deal

KUALA LUMPUR (Oct 17): The FBM KLCI closed 0.03% or 0.4 points lower to 1574.50 as the broader market was mostly lukewarm today, in line with the region, on a lack of updates on the US-China trade deal. The benchmark index saw 2.33 billion shares traded at RM1.88 billion today. TA Securities Holdings Bhd senior technical analyst Steven Soo told theedgemarkets.com that there was a tug-of-war going on as the KLCI closed in negative territory, with bargain hunting going on for mega blue chips. “Nevertheless, the index is still holding up pretty well, despite mixed signals on the external market,” he said over the phone. Soo also noted some rotational play going on amongst investors in the market. “The oil and gas sector continues to be focus, whereas the property sector remains underperforming, perhaps because the recently-tabled Budget 2020 was not enough to boost sentiment,” he added. Regionally, most markets were also tepid, as hopes of a Sino-US trade ...

Market Daily Report: FBM KLCI ends at intraday high on Brexit optimism

KUALA LUMPUR (Oct 16): The FBM KLCI closed up 8.67 points or 0.55% at its intraday high today while volume across Bursa Malaysia rose past three billion shares after global equities rose in anticipation that the UK and the European Union (EU) could reach a Brexit deal in time for a leaders' summit this week. At 5pm, the KLCI closed at 1,574.9 after Asian shares ended higher following overnight gains in US stock markets. Across Bursa today, trading volume was higher at 3.06 billion shares worth RM2.23 billion. Yesterday, trading volume stood at 2.62 billion shares valued at RM1.73 billion. Today, TA Securities Holdings Bhd wrote in a note "the local market should trade sideways as hopes for a Brexit deal ahead of the month-end deadline offset caution on the certainty of the initial US-China trade deal" amid strong trading momentum in  Bursa lower liners and small market capitalisation (small cap) stocks. Malacca Securities Sdn Bhd wrote in a...

Market Daily Report: KLCI closes lower as sentiment hit by poor progress in US-China trade talks

KUALA LUMPUR (Oct 15): The FBM KLCI finished in negative territory today due to lack of any significant progress in the ongoing US-China trade talks, as well as profit taking by investors. The benchmark index closed 1.36 points or 0.09% lower at 1566.23. On the broader market, there were 410 decliners against 391 advancers. A total of 2.62 billion shares valued at RM1.73 billion exchanged hands. Hong Leong Investment Bank Bhd analyst Loui Low said today’s trading was mostly sideways, with bouts of profit taking. “Trading sentiment was also dampened due to China putting a pause on the trade deal, despite the mildly expansionary budget presented (by the Malaysian government) earlier. There is also some rotational play going on,” he told theedgemarkets.com when contacted. Nevertheless, Loui also noted that there was still some spillover effect from Budget 2020, since beneficiary stocks such as those involved in technology and green initiatives remained positive...

Market Daily Report: KLCI ends 0.69% higher as investors cheer Budget 2020, partial trade deal

KUALA LUMPUR (Oct 14): The FBM KLCI closed 10.75 points or 0.69% higher at 1,567.59 points on Monday, buoyed by positive sentiments brought on by the newly-announced Budget 2020 and progress of trade talks between the US and China. Trading was in the positive territory all day and hit an intra-day high of 1,568.96 points. Nevertheless, the benchmark index remains below the 1,600 psychological level. Market breadth was positive, with more gainers than losers at 487 versus 367 as trading wraps up for the day, with a total turnover of 2.99 billion shares worth RM1.84 billion. Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that besides tracking regional markets, gains in the KLCI today were underpinned by the more rosy Budget 2020 announcement last Friday that saw a higher allocation in development expenditure at RM56 billion, versus RM54.7 billion under Budget 2019. "Market sentiment was also upbeat on the positive pr...

Malaysia Budget 2020 Highlights - Updated

KUALA LUMPUR (Oct 11): The following are the highlights of Budget 2020: Malaysian economy Budget 2020 has four thrusts including boosting economic growth in new economy and digital era, investing in people. Approved foreign direct investment has inreased to RM80.1 billion in 2018 from RM54.1 billion in 2017. Proctrated trade war offers Malaysia unique opportunity to become choice destination for FDI with high added value Overall debts and liabilities ratio to GDP lowered to 75.4% in 2018 from 79.3% in 2017, but is expected to rise to 77.1% as at end-June 2019. This is largely due to the increase in the committed government guarantee to continue to MRT and Pan Borneo Highway, and RM20 billion bailout of Tabung Haji. Govt saved at least RM46 billion in capex from rationalising megaprojects including LRT3, MRT 2 and ECRL. Malaysian economy to grow at 4.8% in 2020 vs 4.7% in 2019 The government revises Budget 2020 deficit target to 3.2% of GDP, which is slightly hi...

Malaysia Budget 2020 Highlights

KUALA LUMPUR (Oct 11): The following are the highlights of Budget 2020: Civil servants' cost of living allowance or COLA to be raised by RM50 a month starting 2020 for support group, with an additional RM350 million a year Civil servants will be allowed early redemption of accumulated leaves (gantian cuti rehat) for up to 75 days as replacement pay for those who have served at least 15 years Public Sector Home Financing Board to offer free personal accident insurance for up to two years to new government housing loan borrowers The Bureau of Public Complaints will be replaced by the Malaysian Ombudsman to enhance govt's governance and delivery systems Govt to move forward with the formation of the Independent Police Complaints and Misconduct Commission (IPCMC) to increase public confidence and trust in police. Govt to allocate RM330 million to the Property and Land Management Division under the Prime Ministers Department to repair and maintain the pub...

Market Daily Report: KLCI ends higher as trade talks, Budget 2020 spur optimism

KUALA LUMPUR (Oct 11): The FBM KLCI closed 4.97 points or 0.32% higher today while small market capitalisation (small cap) stocks rose by a larger quantum amid revived optimism on US-China trade talks and as investors evaluated Malaysia's Budget 2020 announcement. At 5pm the KLCI closed at 1,556.84 after broad-based buying across Bursa Malaysia. The small-cap index rose 138.38 points or 1.05% to 13,311.92. "Local market sentiment should recover further today on hopes for some concessions from US-China trade talks, and optimism for goodies and stimulus for selective sectors from Budget 2020 this afternoon," TA Securities Holdings Bhd wrote in a note today. Across Bursa, 2.29 billion shares were traded for RM1.6 billion. Leading gainers included KLCI stocks MISC Bhd and Tenaga Nasional Bhd. MISC closed 24 sen or 2.99% higher at RM8.28 while Tenaga ended up 22 sen or 1.61% at RM13.88. Globally, Reuters reported that Southeast Asian stock mark...

Market Daily Report: KLCI ends higher after falling below key support level

KUALA LUMPUR (Oct 10): The FBM KLCI closed 0.64 point or 0.04% higher today at 1,551.87 after erasing losses in the final trading minutes. Share trade sentiment was seen against persistent US-China trade war uncertainties amid a broadening spat, which now includes foreign policy. Analysts said Malaysia's Budget 2020, which will be announced tomorrow (Oct 11), also affected local market sentiment today. At 5pm today, the KLCI closed higher after falling to its intraday low at 1,548.45. At 1,548.45, the KLCI had declined past a crucial support level. Malacca Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com today that the KLCI's "support level can be identified at 1,550." "Conversely, key levels of resistance to look at are the 1,580 and 1,600 levels" Wan said. Despite the KLCI's marginal gain today, he warned that investors should be aware of persistent foreign selling in the Malaysian stock market as h...

Market Daily Report: KLCI finishes down 7.56 points as US-China spat escalates

KUALA LUMPUR (Oct 9): The FBM KLCI finished 7.56 points or 0.48% lower at 1,551.23 today as the broadening US-China dispute over trade and foreign policy weighed down world markets. Reuters reported that the US State Department announced the visa restrictions just a day after the US Commerce Department cited the mistreatment of Uighur Muslims in China in its decision to add 20 Chinese public security bureaus and eight companies to a trade blacklist. It was reported that the US' moves cast a pall over US-China trade talks in Washington, where deputy negotiators met for a second day to prepare for the first Minister-level meetings in more than two months on Thursday and Friday. "Asian stocks fell the most in a week on Wednesday as the US and China's broadening dispute over trade and foreign policy showed little sign of coming to an end, weighing on global economic growth," Reuters said. In Malaysia today, Malacca Securities Sdn Bhd senio...

Market Daily Report: KLCI flat, builders rise ahead of Budget 2020

KUALA LUMPUR (Oct 8): The FBM KLCI closed down 0.21 point or 0.01% today at 1,558.79 while Bursa Malaysia's construction stocks rose ahead of the nation's Budget 2020 announcement on Friday (Oct 11). Globally today, investors appeared to take cue from China's services sector data as they anticipated the outcome of US-China trade talks later this week. CNBC reported, citing sources, the talks would be held from Thursday to Friday (Oct 10 to 11). At Bursa today, the construction index closed up 4.13 points or 2.04% at 206.44 at 5pm to become the largest percentage gainer among the bourse's indices. "Despite the rally in most regional markets, the Malaysian stock market was down mainly on foreign investors adopting a waiting game ahead of the 2020 Budget announcement," Rakuten Trade Sdn Bhd deputy head of research Vincent Lau told theedgemarkets.com . On the construction index, Lau said investors are anticipating the Budget 2020 ann...

Market Daily Report: KLCI up at 11th hour as Bursa technology stocks rise on iPhone 11 news

KUALA LUMPUR (Oct 7): The FBM KLCI settled up 1.33 points or 0.09% today at 1,559 after clawing back to positive territory at the 11th hour as global investors anticipated US-China trade talks this week and evaluated the US' latest employment data. Today, Bursa Malaysia technology stocks rose in an apparent response to news that Apple Inc would ramp up production of iPhone 11 models. At 5pm, the KLCI closed up after falling to its intraday low of 1,555.55. Bursa's technology index, which includes semiconductor manufacturers, ended up 0.67 point or 1.83% at 37.25. Across Bursa Malaysia, 2.17 billion shares worth RM1.33 billion were traded. Top gainers included semiconductor manufacturers Malaysian Pacific Industries Bhd and Unisem (M) Bhd. The most-active stocks included newly-listed SDS Group Bhd, which registered a volume at some 109 million shares. ACE Market-listed SDS Group's share price closed up 2.5 sen at 25.5 sen from the stock's...

Market Daily Report: KLCI ends 10.78 pts lower after US announces tariffs on Europe

KUALA LUMPUR (Oct 3): The FBM KLCI closed down 10.78 points or 0.68% today after Asian shares fell substantially as the US' announcement of new import tariffs on European Union (EU) imports hit world market sentiment. At 5pm, the KLCI closed at 1,564.12, led by Public Bank Bhd and Press Metal Aluminium Holdings Bhd's share price drop. Public Bank closed 42 sen or 2.13% lower at RM19.28 to be the top-percentage decliner among the 30 KLCI stocks. Press Metal ended down nine sen or 1.88% at RM4.69. AxiTrader Asia Pacific market strategist Stephen Innes wrote in a note today  Malaysia's Budget 2020, which will be announced this Oct 11 "is now being viewed as the next significant catalyst which is likely keeping foreign investors cautious on local bonds, equities and currency." Earlier today, Hong Leong Investment Bank Bhd wrote in a note that investors may adopt a defensive yield-seeking strategy amid the current market backdrop. ...

Market Daily Report: KLCI falls 0.91% as US manufacturing data heightens slowdown fears

KUALA LUMPUR (Oct 2): The FBM KLCI fell 14.54 points or 0.91% today to close at its intraday low at 1,574.9 after the broader market reacted to weaker US manufacturing data, which underscored the impact of the US-China trade war on the US economy. Reuters reported that global equity selling was triggered after the Institute for Supply Management’s (ISM) index of factory activity, one of the most closely-watched data on US manufacturing, dropped 1.3 points to 47.8, the lowest level since June 2009. It was reported that a reading below 50 indicates contraction in the manufacturing sector. "Markets had been expecting the index to rise back above 50. Global shares fell to one-month lows on Wednesday after US manufacturing activity tumbled to more than a decade low, sparking worries that the fallout from the US-China trade war is spreading to the US economy," Reuters said. In Malaysia today, Areca Capital Sdn Bhd chief executive officer Danny Wong Te...

Market Daily Report: KLCI 0.35% higher; ringgit weakens as USD up at 29-month high

KUALA LUMPUR (Oct 1): The FBM KLCI closed 5.53 points or 0.35% higher today, led by Sime Darby Bhd and Sime Darby Plantation Bhd share price gains and after Asian stock markets tracked US equities' overnight rise. The ringgit weakened against a strengthening US dollar, amid US-China trade war and Brexit concerns. At 5pm today, the KLCI closed higher at 1,589.44. Sime Darby Bhd ended up five sen or 2.22% at RM2.30 to become the top percentage gainer among the 30 KLCI stocks, followed by Sime Darby Plantation. Sime Darby Plantation rose 10 sen or 2.11% to RM4.83. “The market is trying to bottom up, but still remains cautious," TA Securities Holdings Bhd senior technical analyst Steven Soo told theedgemarkets.com. Reuters reported today that globally, US stocks climbed on Monday, helped by gains in Apple, Microsoft and Merck & Co, as investors set aside worries about the U.S.-China trade war. It was reported that Asian share prices ticked up ...