Skip to main content

Featured Post

Market Daily Report: Bursa Malaysia Gives Up Earlier Gains To End Mixed

KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec

India’s Rapid Economic Growth Expected to Moderate Amid Consumer Worries

India's economic growth, which has been robust in recent years, is set to slow down in the coming months as several risks emerge. Economists are downgrading their forecasts and suggesting potential interest rate cuts, given the challenges posed by subdued consumer sentiment, slow rural recovery, and a weakening global economy.

Key Takeaways:

  1. Growth Forecasts Lowered: Goldman Sachs has trimmed India's growth forecast for the current calendar year by 20 basis points to 6.7%, while Bloomberg Economics has reduced its projection for the fiscal year ending March 2025 to 6.8%, down from 7.2%. The slowdown is attributed to decreased government spending before elections, weaker consumer sentiment, and a global economic downturn.

  2. Subdued Consumer Spending and Investment: Consumer sentiment declined for the second consecutive month in July, impacting private consumption, which constitutes nearly 60% of India’s GDP. Rural spending has yet to recover to pre-COVID levels, and business investments remain low due to muted profitability, higher input costs, and reduced demand.

  3. Pressure on the Reserve Bank of India (RBI): As growth slows, there is increasing pressure on the RBI to cut interest rates after keeping them steady for over 18 months. However, inflation risks, driven by high food prices, have made the central bank hesitant to make such a move.

  4. Impact of Reduced Government Spending: Ahead of elections, government investment slowed, with only 16.3% of budgeted capital spending used in the first quarter of the fiscal year, compared to 27.8% in the same period the previous year. This has contributed to the moderated growth outlook.

  5. Improved Outlook for Agriculture: Better-than-expected monsoon rains have provided relief to the agricultural sector, which could boost rural incomes and help ease food inflation, supporting rural recovery in the coming months.

While India's economic growth remains positive, it is expected to moderate from its previous near-8% pace, with several domestic and global factors contributing to a more cautious outlook.

Comments

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

3M Raises Profit Forecast After Beating Quarterly Estimates on Electronics Demand

3M Co raised the lower end of its full-year adjusted profit forecast after strong demand for electronics and industrial products helped the company surpass quarterly profit expectations. Shares of 3M were up 4.2% at $140.5 in pre-market trading. An increase in demand for electronics used in vehicles and mobile phones boosted profits for the company, which had previously faced challenges as high inflation led consumers to delay major purchases. The industrial sector is also expected to benefit from the recent US Federal Reserve decision to cut borrowing costs in September, encouraging more consumer spending. 3M has implemented cost-cutting measures, including job reductions and spinning off its healthcare business, to counter the impact of a demand slowdown . Key highlights from the report: Sales in the transportation and electronics segment grew 1.8% year-on-year. Sales in the safety and industrial segment , which produces adhesives for industrial use, increased by 0.5% . 3M&

Key Corporate Updates from Malaysia

Ekovest Bhd : Major shareholder Tan Sri Lim Kang Hoo is considering selling his toll-road business, Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi), for up to RM5 billion. Ekovest owns 60% of Kesturi, with the remainder held by the Employees Provident Fund (EPF). Eco World Development Group Bhd : Through its subsidiary Mutiara Balau Sdn Bhd, EcoWorld is acquiring 847.25 acres in Semenyih, Selangor for RM742.41 million to develop Eco Forest 2, a project with an estimated RM4.6 billion in gross development value. Mah Sing Group Bhd : Mah Sing has purchased 5.24 acres on Old Klang Road for RM113 million to build M Aurora, a transit-oriented development with an estimated RM660 million gross development value, anticipated for launch in early 2025. Pentamaster Corp Bhd : The company’s third-quarter net profit dropped 49.9% to RM11.77 million, impacted by lower sales in its automated test equipment division and foreign exchange losses. Sentral REIT : The REIT saw a 25