KUALA LUMPUR, Jan 27 (Bernama) -- Bursa Malaysia finished in the negative territory today dampened by subdued trading observed across the board ahead of the upcoming Chinese New Year (CNY) festive holidays, said an analyst. At 5 pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 14.76 points, or 0.94 per cent, to end at its intraday low of 1,558.97 compared to Friday’s close of 1,573.73. The benchmark index opened marginally lower by 0.42 of-a-point at its intraday high of 1,573.31 and moved in a downtrend path towards closing. Market breadth was negative with decliners thumping gainers 782 to 235, with 415 counters unchanged, 916 untraded and 60 suspended. Turnover narrowed to 2.76 billion units valued at RM2.38 billion compared to 3.0 billion units valued at RM3.06 billion registered last Friday. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan noted that the thin trading volume today indicated a clear retreat by investors ...
China's exports grew at their fastest pace in fifteen months in June, rising 8.6% year-on-year, surpassing the forecasted 8.0% increase. This growth suggests that manufacturers are accelerating orders ahead of expected tariffs from an increasing number of trade partners. However, imports fell by 2.3%, marking a four-month low and highlighting weak domestic demand.
The mixed trade data underscores the need for further government stimulus to support the $18.6 trillion economy, which is still struggling to regain momentum. Analysts caution that the sustainability of the recent strong export performance is uncertain due to escalating trade conflicts and protective measures from major trade partners.
China's trade surplus hit a record $99.05 billion in June, up from $82.62 billion in May. The United States, which has increased tariffs on Chinese imports, continues to cite this surplus as evidence of unbalanced trade.
With domestic demand remaining sluggish, as evidenced by the drop in imports, analysts expect China to introduce more policy support measures soon. Increased government bond issuance has not yet translated into higher infrastructure spending, but this is anticipated to change, potentially boosting the import-intensive construction sector.
Economists and investors are also looking ahead to the Third Plenum on July 15-18, where China's top Communist Party officials will gather to discuss economic policies.
Key Risks:
- Sustainability of Export Growth: Potentially unsustainable due to rising global protectionism.
- Weak Domestic Demand: Falling imports and low consumer confidence indicate economic fragility.
- Global Trade Conflicts: Increasing tariffs from multiple countries pose significant risks to exports.
- Sector-Specific Challenges: The electronics sector may face difficulties due to limited import of parts for re-export.
- Delayed Impact of Government Spending: Infrastructure spending and demand for commodities have yet to increase significantly.
China's economy remains under pressure, and while export growth offers a glimmer of hope, the overall outlook calls for cautious optimism and strategic government intervention.
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