Skip to main content

Featured Post

Market Daily Report: Bursa Malaysia Ends Higher In Line With Most Regional Markets

KUALA LUMPUR, Sept 20 (Bernama) -- Bursa Malaysia ended higher on Friday in line with most Asian markets, mirroring gains from Wall Street, where investors welcomed the US Federal Reserve's substantial interest rate cut. The FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 3.17 points, or 0.19 per cent, to 1,668.82 at the close from Thursday's close of 1,665.65. It opened 5.03 points higher at 1,670.68, trading between 1,668.48 and 1,674.04 throughout the session. In the broader market, gainers outpaced decliners 732 to 468, while 465 counters were unchanged, 850 untraded and 32 suspended. Turnover swelled to 4.19 billion units worth RM5.97 billion, from Thursday's 3.99 billion units worth RM4.08 billion. UOB Kay Hian Wealth Advisors head of investment research, Mohd Sedek Jantan, noted the FBM KLCI's gains were led by utilities, logistics, and banking stocks, reflecting improved market sentiment. Additiona
Post a Comment

Asian Assets Rally Following Powell’s Dovish Remarks; Rupiah and Ringgit Lead Gains

Asian markets saw a broad rally on Monday, with the Indonesian rupiah and Malaysian ringgit leading the gains, following Federal Reserve Chair Jerome Powell's indication that the U.S. central bank is likely to cut interest rates next month. Powell's comments at the Jackson Hole symposium have fueled investor optimism, driving emerging market currencies and stocks higher.

Key Takeaways:

  1. Currency Strengthening: The Indonesian rupiah surged by as much as 1.3% against the U.S. dollar, reaching its highest level since September 2023. The Malaysian ringgit, which has been the region’s best-performing currency this year, gained 0.8%, hitting levels not seen since mid-February 2023.

  2. Stock Market Gains: In Indonesia, the Jakarta Composite Index rose by 0.9% to a record high, reflecting strong investor sentiment. Malaysia’s benchmark index also advanced, albeit modestly, by 0.1%.

  3. Powell’s Impact: Powell’s speech last Friday signaled a likely shift towards a rate cut in September, which has weakened the U.S. dollar and bolstered risk appetite in global markets. This dovish stance has particularly benefited emerging Asian markets, where currencies and equities have seen gains.

  4. Regional Central Bank Policies: Despite the Fed’s dovish tilt, analysts caution that some Asian central banks might delay monetary easing due to domestic concerns such as financial stability risks, inflation, and currency pressures. For instance, Bank Negara Malaysia is expected to keep its policy rates on hold, which has supported the ringgit.

  5. Mixed Regional Performance: While the rupiah and ringgit led the gains, other regional currencies and stocks showed mixed performance. South Korea’s won inched up 0.1%, though its stock index fell 0.3% due to losses in tech giant Samsung Electronics. Taiwan’s dollar strengthened by 0.5%, with stocks up 0.6%, while the Thai baht slipped 0.3%.

  6. Economic Updates: In other regional developments, Thailand reported a 0.4% year-on-year drop in employment for the second quarter, driven by a decline in farm jobs. Meanwhile, the World Bank forecasted Vietnam’s GDP growth at 6.1% for 2024 but warned of risks from bad loans.

Conclusion: The positive momentum in Asian markets, driven by Powell’s dovish comments, highlights the interconnectedness of global monetary policies and their impact on emerging markets. However, regional central banks may tread cautiously, balancing domestic economic conditions with global trends.

Labels:

Comments

Post a Comment

Popular posts from this blog

INTC Share Watch and News

Stock Info Market Monitor Company Profile Intel Corporation designs, manufactures, and sells integrated circuits for computing and communications industries worldwide. It offers microprocessor products used in notebooks, netbooks, desktops, servers, workstations, storage products, embedded applications, communications products, consumer electronics devices, and handhelds. The company also offers system on chip products that integrate its core processing functionalities with other system components, such as graphics, audio, and video, onto a single chip. It also provides chipset products that send data between the microprocessor and input, display, and storage devices, such as keyboard, mouse, monitor, hard drive, and CD or DVD drives; motherboards that has connectors for attaching devices to the bus, and products designed for desktop, server, and workstation platforms; and wired and wireless connectivity products, including network adapters and embedded wireless cards used to translat
1 comment
Read more

Analysts See Asset Resilience of Bank of Chengdu Benefiting Hong Leong Bank

Analysts predict that the asset quality of Bank of Chengdu, in which Hong Leong Bank Bhd holds a 19.76% stake, will remain robust due to its strict risk management policies and proactive measures. Key Takeaways: Strong Risk Management Practices : According to CIMB, Bank of Chengdu has adopted a conservative risk culture, performing thorough assessments of location, developer reputation, project viability, and management integrity before financing property projects. The bank closely monitors early warning signals like construction progress, sales progress, budget overruns, and fund usage by developers to mitigate potential risks. Proactive Measures Against Property Slowdown : The bank's precautionary measures allowed it to reduce exposure to problematic property loans and exit risky loans before China's property market slowdown. This conservative approach is expected to benefit Hong Leong Bank by minimizing potential asset quality concerns. Continued Optimism and Buy Recommendat
Post a Comment
Read more

Investors Keep Buying US Junk Debt Despite Weak Protections

  When US-based construction material supplier Wilsonart issued a junk bond to raise US$500 million (RM2.13 billion) for an acquisition this summer, a research firm warned potential investors about the bond's weak protections. The bond’s covenants could allow the company to move valuable assets to another entity and raise more money, potentially disadvantaging bond investors, according to Covenant Review , a research firm. This warning comes amid growing concerns in credit markets as more companies engage in practices like "liability management exercises," where they borrow more against the same assets. These practices, often favoring some creditors over others, have been dubbed "creditor-on-creditor violence," prompting some creditors to unite to protect their interests. Despite the warnings, investors eagerly purchased Wilsonart's offering, underscoring a paradox in US credit markets. While investors face the consequences of weak covenants, they continu
Post a Comment
Read more