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EU Concerns Over U.S. Embrace of Crypto Assets and Its Potential Impact on Europe's Financial Stability

Eurozone finance ministers  expressed concerns that the  U.S. government’s embrace of cryptocurrencies  could pose risks to  Europe's monetary sovereignty  and  financial stability . Their worries come after  President Trump  signed an executive order to create a  strategic reserve of cryptocurrencies  using tokens already owned by the U.S. government, signaling a shift in policy from the previous administration. Key Takeaways: Policy Shift in the U.S. : The U.S. administration’s new stance on  cryptocurrencies , especially  dollar-denominated stablecoins , has sparked concerns in Europe. Trump’s move to embrace cryptocurrencies as part of the U.S. financial system contrasts with past U.S. policies, raising alarms about the impact on European financial stability. Impact on Europe’s Monetary Sovereignty :  Paschal Donohoe , Chairman of the Eurogroup, highlighted that such developments in the U.S. could directly affect ...

Market Daily Report: KLCI closes lower on portfolio rebalancing

KUALA LUMPUR (Nov 29): The FBM KLCI closed lower again today as foreign funds’ month-end rebalancing activities saw most reducing their holdings of Malaysian stocks in their portfolios. The benchmark index ended the day 22.03 points or 1.39% lower at 1,561.74, after having traded within a range of 1,560.72 points and 1,585.70 points, weighed down by Tenaga Nasional Bhd (TNB) — which lost 4.08% to close at RM13.16 after the utility giant was slapped with RM3.98 billion in additional tax assessment by the Inland Revenue Board yesterday. Overall, market breadth was negative with losers edging gainers by 631 to 295 while 332 counters traded unchanged. Total turnover stood at 2.6 billion shares worth RM2.35 billion. The most actively traded stock was Pentamaster Corp Bhd, which succumbed to heavy selling on news that the semiconductor firm has been excluded from the shariah-compliant list. The stock closed 21 sen or 4.48% down at RM4.48, with 136.97 million sh...

Market Daily Report: KLCI ends lower as oil price drop dents sentiment

KUALA LUMPUR (Nov 28): The FBM KLCI closed down 3.41 points or 0.21% today while Bursa Malaysia's energy index fell by a larger magnitude as lower crude oil prices hit shares of oil and gas companies here after US said its crude oil output rose to a record high. At Bursa, the KLCI finished at 1,583.77 as KLCI stocks including Petronas Dagangan Bhd and Genting Bhd fell. They were among Bursa top decliners while the energy index fell 10.84 points or 0.89% to 1,205.22. Analysts said investors appeared to window dress their portfolios before the year ends. “Traders could look into index (KLCI) heavyweights amid window dressing activities in the month of December. The KLCI may trade within a range of 1,580-1,620,” Hong Leong Investment Bank Bhd head of retail research Loui Low told theedgemarkets.com today. Globally, crude oil prices fell on Thursday, extending losses from the previous session after official data showed US crude and gasoline stock...

Market Daily Report: FBM KLCI ends higher in rebound

KUALA LUMPUR (Nov 27): The FBM KLCI closed a marginal 0.21% higher on Wednesday after recovering from heavy selling in selected blue chips. At 5pm, the benchmark index finished 3.31 points higher at 1,587.18, after earlier inching to an intraday high of 1,590.51. Market breadth was negative with 548 losers to 318 gainers, while 376 counters closed unchanged. Total turnover stood at 2.51 billion shares worth RM1.66 billion. Solarvest, which made its debut on Bursa Malaysia's ACE Market yesterday at an issue price of 35 sen a share, was again the most actively traded stock today. It added another 6.5 sen today to close at 82 sen.    Malacca Securities Sdn Bhd head of research Victor Wan told theedgemarkets.com that the key index had largely rebounded after losses in the past few trading days. "It appears that the index will be trading range-bound going forward on the lack of catalysts at this point," he said. Asian stocks were higher on Wednes...

Market Daily Report: KLCI finishes down as Bursa share trade value swells above RM4.2b

KUALA LUMPUR (Nov 26): The FBM KLCI finished down 7.48 points or 0.47% at 1,583.87 today, as factors including lower crude palm oil (CPO) prices weighed on local share market sentiment. Share-trade value across Bursa Malaysia rose significantly to RM4.21 billion, as volume increased to above three billion shares, contributed partly by Solarvest Holdings Bhd's impressive debut on Bursa's ACE Market. Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew said share prices of big market capitalisation plantation companies dived, as lower CPO prices dented market sentiment. Malaysia CPO for Jan 2020 fell RM73 to RM2,631 a tonne at 5:15pm. "Solarvest was a big feature for today's trade but elsewhere, it's a rather boring day. It's a mixed day across the region, it looks like the markets lost some motivation, despite the latest US-China trade talk progress," he told theedgemarkets.com. Solar photovoltaic company Solarvest's ...

Market Daily Report: KLCI down 0.34%, trails Bursa O&G, small-cap share drop

KUALA LUMPUR (Nov 25): The FBM KLCI finished 5.49 points or 0.34% lower today, while Bursa Malaysia indices for oil and gas shares and small market capitalisation (small cap) stocks fell by larger quantums, as global investors weighed US-China trade uncertainties. In Malaysia, the current corporate financial reporting season for the July-to-September quarter is also seen dictating share-trade sentiment. At 5pm, the KLCI finished lower at 1,591.35. Bursa's small-cap index lost 136.55 points or 1% to 13,568.18, while the energy index, which tracks oil and gas shares, fell 17.14 points or 1.4% to 1,211.34. "Given the weaker momentum and trend indications on KLCI's technical indicators following last week's choppy trading sessions, the local market is likely to be encumbered with external uncertainties this week, as doubts linger over the likelihood for an initial US-China trade deal, due to mutual disagreements between the two parties on certa...

Market Daily Report: KLCI finishes down 8.95 points but plantation shares rise

KUALA LUMPUR (Nov 21): The FBM KLCI closed 8.95 points or 0.56% lower as a fresh US-China row on Hong Kong threatened to delay a much-anticipated US-China trade deal. Such sentiment led to weakness across Asian stock markets. At 5pm, the KLCI closed down at 1,592.19, led by AMMB Holdings Bhd. Across the broader market, Bursa Malaysia plantation shares rose with higher crude palm oil (CPO) prices. Global shares took cue from the fresh US-China row, which exacerbated both nations' trade war. Reuters reported that global stocks took a beating on Thursday as a fresh row between Washington and Beijing over US legislation on Hong Kong threatened to undermine their trade talks and delay a "phase one" deal that investors had initially hoped to be signed by now. "The US House of Representatives on Wednesday passed two Bills intended to support protesters in Hong Kong and send a warning to China about human rights. The legislation, which has angere...

Market Daily Report: KLCI snaps three days of gains on oil, US-China trade uncertainty

KUALA LUMPUR (Nov 20): The FBM KLCI closed 4.17 points or 0.26% lower today amid US-China trade spat uncertainty and as lower crude oil prices weakened Malaysian share trade sentiment. At 5pm, the KLCI closed down at 1,601.14 after after three consecutive days of gains. Today, the KLCI was traded entirely in negative territory at between 1,598.32 and 1,604.38 as Asian shares fell. Reuters reported that Asian shares lost out to safe-harbour bonds on Wednesday as Sino-US trade talks produced nothing but white noise, while concerns about a supply glut left oil prices nursing their biggest one-day loss in seven weeks. It was reported that figures from the American Petroleum Institute out late Tuesday showed a far larger rise in crude stocks than expected. It was reported that Brent crude futures eased another 10 cents to US$60.81 a barrel, after sliding 2.6% overnight, while US crude dipped 2 cents to US$55.19. "The prospects for progress on trade dimmed whe...

Market Daily Report: FBM KLCI ends higher on last minute buying

KUALA LUMPUR (Nov 19): The FBM KLCI closed 0.95 point or 0.06% higher today after erasing losses at the last minute on buying interest in index-linked stocks, as world markets took cue from the status of US-China trade talks. At 5pm, the KLCI closed at its intraday high at 1,605.31, after falling to its intraday low at 1,595.15, as US-China trade uncertainties hit world markets. Reuters reported Asian share markets were mixed in subdued trade on Tuesday, pending clearer news on whether US-China negotiations will reach a preliminary accord to end the prolonged trade war between the world's two largest economies. Reuters said CNBC reported the mood in Beijing was pessimistic about prospects of sealing a trade agreement with the US. In Malaysia, TA Securities Holdings Bhd senior technical analyst Stephen Soo told theedgemarkets.com the KLCI had earlier today fallen due to a correction following yesterday's rise. “It’s very much still a retail play in ...

Market Daily Report: FBM KLCI ends at intraday high, led by IHH

KUALA LUMPUR (Nov 18): The FBM KLCI closed up 9.61 points or 0.6% today at its intraday high after a spike in the final trading minutes, led by sharp gains in prices of stocks including IHH Healthcare Bhd and Digi.Com Bhd and as fund managers appeared to window dress their portfolios. Globally, Malaysian shares rose with Asian equities, after China's central bank reduced rates on seven-day reverse repurchase agreements (repo) by five basis points to 2.5%. At Bursa Malaysia, the KLCI closed at its intraday high of 1,604.36 at 5pm, after erasing losses from its intraday low at 1,592.47. IHH’s share price closed 21 sen or 3.93% higher at RM5.56 to become the leading-percentage gainer among the 30 KLCI components, followed by Digi.Com. Digi.Com closed up 15 sen or 3.28% at RM4.73. Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com today that the KLCI was lifted mainly by IHH, after the company said it remains committed to pro...

Market Daily Report: KLCI up after volatile trade as investors weigh Malaysia GDP

KUALA LUMPUR (Nov 15): The FBM KLCI closed up 1.2 points or 0.08% after volatile trade as investors weighed Malaysia's economic figures and corporate earnings against the impact of the US-China trade war on global growth. At the 5pm closing bell, the KLCI closed up at 1,594.75, led by IHH Healthcare Bhd. The KLCI had earlier risen to its intraday high at 1,596.85 and fallen to its intraday low at 1,592.22. Bank Negara Malaysia's (BNM) announced today that Malaysia's economic growth, as measured by Gross Domestic Product (GDP), moderated to 4.4% in the third quarter of 2019 (3Q19) from a year earlier, after 2Q19's 4.9% on-year expansion. BNM was quoted as saying 3Q19's slower GDP expansion was primarily due to lower growth in the nation's key sectors and decline in mining and construction activities. Most domestic demand components and net exports also registered slower growth, BNM said. Inter-Pacific Securities Sdn Bhd head of rese...

Market Daily Report: FBM KLCI ends lower as China, Japan data disappoints

KUALA LUMPUR (Nov 14): The FBM KLCI closed down 3.67 points or 0.23% today at 1,593.55 as Asian shares took cue from China and Japan's economic data, which missed market forecasts. From a technical viewpoint, analysts said the KLCI fell because Malaysian shares are in overbought zone. Reuters reported that Asian stocks fell on Thursday after soft economic data in China and Japan showed the trade war between Beijing and Washington hitting growth in some of the world’s biggest economies. It was reported that China’s industrial production growth slowed sharply in October, with the 4.7% year-on-year rise well below forecasts for 5.4%. Investment growth hit a record low and retail sales also missed expectations, according to Reuters. On Japan, Reuters, quoting preliminary gross domestic product data released by the Government today, reported that the world's third-largest economy grew an annualised 0.2% in the third quarter, slowing sharply from a revised ...

Market Daily Report: KLCI down 12.51 points to end below 1,600 as Trump renews trade war concerns

KUALA LUMPUR (Nov 13): The FBM KLCI finished 12.51 points or 0.78% lower at 1,597.22 today with Asian shares after US President Donald Trump's speech failed to add clarity on the status of US-China trade talks. Investors also took cue from Hong Kong's intensifying protest. At Bursa Malaysia's 5pm closing bell, the KLCI finished lower at 1,597.22 after falling to its intraday low of 1,593.91, partly due to KLCI component Petronas Chemicals Group Bhd's share price drop. Reuters reported that Asian stocks and Wall Street futures fell on Wednesday, as confusing signals over the extent of progress made in US-China trade talks and concern about intensifying unrest in Hong Kong hurt demand for risky assets. It was reported that US President Donald Trump had on Tuesday said in his speech at The Economic Club of New York that a trade deal was "close" but gave no new details on when or where an agreement would be signed, disappointing investo...

Market Daily Report: KLCI up on plantation stocks ahead of Trump's speech

KUALA LUMPUR (Nov 12): The FBM KLCI closed 1.58 points or 0.1% higher at 1,609.73 today, with Asian shares ahead of US President Donald Trump's trade policy speech and as Bursa Malaysia plantation counters rose. Analysts said the KLCI had also closed higher on positive sentiment from Malaysia's improved wholesale and retail trade sales data for Sept 2019. At 5pm, the KLCI pared gains at 1,609.73, after rising to its intraday high at 1,614.21. Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com that the KLCI's increase was due to Malaysia's wholesale and retail trade sales data and strong trading interest seen in plantation counters, after crude palm oil (CPO) prices rose to a two-year high yesterday. Today, Public Investment Bank Bhd analyst Chong Hoe Leong wrote in a note that Public Investment believes CPO prices may surpass RM2,800 a tonne in the coming months, due to the tightening of CPO supplies in global ...

Market Daily Report: KLCI falls on profit taking amid trade war, HK protest uncertainty

KUALA LUMPUR (Nov 11): The FBM KLCI closed 1.58 points or 0.1% lower today on profit taking and as investors weighed fresh violence in the Hong Kong protest and watched the progress of US-China trade talks. At Bursa Malaysia, the KLCI closed at 1,608.15, after paring losses sharply in the final trading hour from its intraday low at 1,601.99. The KLCI, which opened higher, had earlier risen to its intraday high at 1,611.43. Rakuten Trade Sdn Bhd vice president of research Vincent Lau told theedgemarkets.com that profit taking in the KLCI followed buying of KLCI-linked stocks over the last few days.   "The negative performance of the KLCI today was in line with regional markets, due to uncertainty," Lau said.    Globally, Reuters reported Asian shares sank on Monday, the safe haven yen rose and gold jumped following a fresh escalation of violence in Hong Kong, while uncertainty still remained over whether the US and China could end the...

Market Daily Report: KLCI flat after spike on Bank Negara SRR ratio cut

KUALA LUMPUR (Nov 8): The FBM KLCI ended up 0.4 point or 0.02% at 1,609.73 today after paring gains shortly following a spike in the final trading hour. The KLCI spike followed Bank Negara Malaysia's (BNM) announcement that the statutory reserve requirement (SRR) ratio for banks will be lowered from 3.5% to 3% effective from Nov 16. BNM said today in a statement the move aims to maintain sufficient liquidity in the domestic financial system. At Bursa Malaysia, the KLCI spiked to its intraday high at 1,614.19 in the final trading hour after falling to its intraday low at 1,606.02. Analysts said banking shares reacted positively to the news as a lower SRR ratio means financial insitutions will have more money to lend to borrowers. Nomura head of equity research for Malaysia Tushar Mohata told theedgemarkets.com the KLCI was boosted at the 11th hour mainly by banks' share price rise. The list includes KLCI-linked banks Public Bank Bhd and CIMB Gro...

Market Daily Report: KLCI spikes, ringgit strengthens as China, US agree to cancel tariffs

KUALA LUMPUR (Nov 7): The FBM KLCI closed up 6.08 points or 0.38% at its intraday high as news on China and the US agreeing to cancel, in phases, tariffs on each other's goods spurred world share markets. The ringgit strengthened with the yuan against such US-China trade sentiment. At Bursa Malaysia, the KLCI closed at 1,609.33 at 5pm after a spike in the final trading hour. The sharp 11th hour rise in share prices of KLCI components including Kuala Lumpur Kepong Bhd (KLK) and Hong Leong Financial Group Bhd (HLFG) supported KLCI's spike. The KLCI closed up at 1,609.33 after falling to its intraday low at 1,601.18. At a glance across Asia, the KLCI's spike mirrored the jump seen in Hong Kong's Hang Seng. Reuters reported that Hong Kong stocks ended higher on Thursday as signs of progress in the China-US trade negotiations triggered a rally during the final 30 minutes of trading. It was reported that the the Hang Seng index ended up 0.6% at...

Market Daily Report: FBM KLCI down as Asia tracks US equity futures

KUALA LUMPUR (Nov 6): The FBM KLCI pared losses to finish 3.49 points or 0.22% lower today as Asian shares tracked US equity futures amid growing enthusiasm over a US-China trade deal. At 5pm, the KLCI, which had earlier declined to its intraday low of 1,597.18, finished at 1,603.25 after US equity futures erased losses. Among US stock futures, the Dow Jones mini rose eight points or 0.03% to 27,429 at 5:31pm after falling to its intraday low. Reuters, quoting latest reports, reported today China is pushing President Donald Trump to remove more tariffs as part of the “phase one” deal, which may be signed this month. In Malaysia, Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew told theedgemarkets.com Asian stock markets including Bursa Malaysia had earlier tracked lower US equity futures, which led to cautious profit taking across Asian shares. "All in, it is more of a 'down day' than an 'up day' for the Asian stock market...

Market Daily Report: KLCI up as ringgit strengthens after BNM maintains OPR

KUALA LUMPUR (Nov 5): The FBM KLCI closed 3.18 points or 0.2% higher today, as the ringgit strengthened after Bank Negara Malaysia (BNM) maintained the overnight policy rate (OPR) at 3%. Globally, Malaysian shares could have also tracked Asian equities' rise on US-China trade deal hopes. Such sentiment helped US shares post record closing highs overnight on Monday. At Bursa Malaysia today, the KLCI closed at its intraday high at 1,606.74 at 5pm, after erasing losses at the last minute. The KLCI had earlier fallen to its intraday low at 1,597.76. In currency markets, the ringgit strengthened to 4.1315 against the US dollar at the time of writing, in an apparent response to BNM' rate decision announcement at 3pm today. In theory, interest rate cuts are bad for currencies, due to capital outflow concerns. On the KLCI, Rakuten Trade Sdn Bhd vice president of research Vincent Lau told theedgemarkets.com that the "KLCI was boosted at the 11th hou...

Market Daily Report: KLCI ends at intraday high after breaching 1,600 points

KUALA LUMPUR (Nov 4): The FBM KLCI closed up 10.22 points or 0.64% today, after world share markets rose amid US-China trade talks optimism and as investors evaluated news that the US' October job growth slowed less than expected. At Bursa Malaysia, the KLCI closed at its intraday high at 1,603.56 at 5pm today, led by top percentage gainers Hartalega Holdings Bhd and Top Glove Corp Bhd. Malacca Securities Sdn Bhd head of research Victor Wan said the positive sentiment across US shares traded at Wall Street on Friday, spilled over to Asian equities today. “It (KLCI) has a good run up already over the past few sessions. It has gone overboard. The 1,600 level seems to be new resistance for KLCI,” Wan told theedgemarkets.com today.    Across Bursa today, 2.56 billion shares worth RM1.86 billion were traded. Among KLCI's 30 components, Hartalega closed 17 sen or 3.17% higher at RM5.54 to be the index's top percentage gainer, followed by Top Glov...

Market Daily Report: KLCI falls as Thursday's buying seen overdone

KUALA LUMPUR (Nov 1): The FBM KLCI closed 4.64 points or 0.29% lower at 1,593.34 today on profit taking after yesterday's substantial rise on buying which analysts deemed overdone due to the absence of fresh catalysts. Today, Rakuten Trade Sdn Bhd head of research Kenny Yee said the decline in the KLCI was “expected”, given that “buying was overdone” yesterday. Yee told theedgemarkets.com today there were no new catalysts to support yesterday’s buying of KLCI-linked shares. Yesterday, the KLCI closed up 17.98 points or 1.14% at 1,597.98 as Malaysian stocks tracked Asian share gains after the US cut interest rates on Wednesday. Across Bursa Malaysia today, 2.79 billion shares worth RM1.64 billion were traded. Top decliners included Public Bank Bhd, Pharmaniaga Bhd and Gamuda Bhd. Yee was also mindful of the ringgit's strength today amid an inflow of foreign funds into Malaysian assets ahead of Bank Negara Malaysia's (BNM) interest rate decisi...