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Market Daily Report: Selective Buying Of Defensive Stocks Lifts Bursa Malaysia Higher At Close

 KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.

China's June Consumer Inflation Misses Expectations Amid Weak Demand

China's consumer prices increased for the fifth consecutive month in June but fell short of expectations, while producer price deflation continued, highlighting the slow recovery of domestic demand despite government support measures. Key Takeaways: Consumer Price Index (CPI) Performance : The CPI rose 0.2% in June from a year earlier, compared to a 0.3% increase in May, marking the slowest growth in three months. This was below the 0.4% increase predicted by economists. Month-on-month, the CPI edged down 0.2%, worsening from the 0.1% decline in May and missing expectations of a 0.1% fall. Producer Price Index (PPI) Decline : The PPI fell 0.8% in June from a year earlier, a smaller decline than the 1.4% drop in May, matching the forecasted 0.8% fall. This marks the smallest PPI decline in 17 months. Food Prices and Domestic Demand : Food prices fell 2.1% year-on-year, with significant declines in fresh vegetables (7.3%) and fresh fruit (8.7%). Despite supply disruptions caused by b...

ECB Cuts Rates, Expands QE - Search for yield will continue

News The ECB cut its overnight deposit rate to -0.4% from -0.3%. Its main refinancing rate was also cut to 0% from 0.05%. The ECB’s monthly asset purchases are raised to €80bn from €60bn and investment grade corporate bonds are now included in the purchase programme. A new series of 4 targeted longer-term refinancing operations (TLTRO II) will be launched. ECB President Mario Draghi said he does not anticipate further need for monetary stimulus. Comment The massive monetary stimulus shows that the ECB is desperate to defend the Euro zone from deflation risk and is willing to drive interest rates deeper into the negative territory despite the potential backlash on net interest margin of banks. We are mildly positive on the latest ECB stimulus as it prevents further slippage of growth and inflation expectations. We maintain our GDP growth forecast of Euro-area at 1.5% (2015: +1.5%). Despite exceeding market expectations, the impact of ECB stimulus may be muted for the ...