Saturday, March 4th, 2017


Peugeot poised to buy GM’s Opel, creating European car giant

PARIS — France’s PSA Group is set to announce a deal to buy Opel from General Motors on Monday after striking an agreement with the US carmaker and winning the blessing of its board for the acquisition. The maker of Peugeot, Citroen and DS…

KKR teams up with Michael Dell in offer for Germany’s GfK

FRANKFURT, March 4 — American IT entrepreneur Michael Dell has agreed a deal to take a stake in the investment vehicle that private equity firm KKR is using to invest in German research firm GfK SE. Dell built up a stake of just over 10 per…

Deutsche Bank board to meet Sunday to discuss capital hike

FRANKFURT, March 4 — Deutsche Bank’s supervisory board will meet tomorrow to discuss plans for a potential capital increase of around €8 billion (RM37.4 billion), two sources familiar with the matter said today. Germany’s biggest bank…

Johnson & Johnson wins trial in talc product liability lawsuits

NEW YORK, March 4 — Johnson & Johnson said yesterday that a state court jury in Missouri had returned a verdict in its favour in the latest trial to arise out of thousands of lawsuits alleging the company’s talc-based products can increase the…

Ringgit to trade lower against US dollar next week

KUALA LUMPUR, March 4 — The ringgit is expected to trade lower at 4.48 to the US dollar next week, on rising expectations of the Federal Reserve (Fed) raising interest rates this month. Affin Hwang Investment Bank Vice-President/Head of Retail…

Bursa to consolidate and trend sideways next week

KUALA LUMPUR, March 4 — Bursa Malaysia is likely to consolidate and trend sideways next week, with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) moving between the 1,700 and 1,720 levels. Affin Hwang Investment Bank Vice-President/Head of…

Short-term rates expected to be stable next week

KUALA LUMPUR, March 4 — Short-term rates are likely to be stable next week with Bank Negara Malaysia (BNM) expected to offer tenders to absorb excess funds from the system. For the week just ended, the overnight rate remained unchanged at 2.95…

Bursa Malaysia to consolidate and trend sideways next week

KUALA LUMPUR: Bursa Malaysia is likely to consolidate and trend sideways next week, with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) moving between the 1,700 and 1,720 levels.

Affin Hwang Investment Bank Vice-President/Head of Retail Research Datuk Dr Nazri Khan Adam Khan said the market is also expected to be cautious next week after trading quite strongly for the past two weeks.

“The market focus will now be on the Federal Reserve (Fed) policy meeting on March 14-15, where there is an increasing chance that US interest rates would be increased in March,” he told Bernama.

Nazri said the technical indicator is also showing a weaker momentum which will result in further market consolidation.

However, he said the market will be cushioned by the good news brought on by Malaysia and Saudi Arabia's good economic collaboration, plus healthy macro data, with leading economic indicators having shown an increase of 0.9%.

For the week just ended, the local bourse traded sideways in cautious mode as investors awaited US President Donald Trump's first speech before a joint session of Congress on Wednesday.

The local market was lifted higher on Thursday as investors viewed Trump's speech positively and took cue from Wall Street which saw trading at record highs.

Bursa Malaysia, however, retreated on Friday to end the week lower on profit taking.

On a week-to-week basis, the FBM KLCI rose 10.03 points to 1,708.38 from 1,698.35 last Friday.

The FBM Emas Index gained 82.08 points to 12,057.59, the FBMT 100 Index gained 83.76 points to 11,736.31 and the FBM Emas Syariah Index jumped 108.51 points to 12,498.77.

On a sectoral basis, the Finance Index surged 160.86 points to 15,288.56, and the Plantation Index improved 24.16 points to 8,094.51, while the Industrial Index slipped 48.83 points to 3,236.45.

Weekly turnover expanded to 14.89 billion units worth RM13.07 billion from 13.88 billion units worth RM 12.59 billion.

Main Market volume widened to 10.76 billion shares valued at RM12.42 billion against 10.12 billion shares valued at RM11.92 billion.

Warrant turnover rose to 1.19 billion units worth RM162.86 million from 1.06 billion units worth RM147.99 million.

The ACE Market increased to 2.91 billion shares worth RM481.58 million from 2.35 billion shares worth RM511.03 million.

Gold futures contracts on Bursa Malaysia Derivatives are expected to be on a downtrend next week with the market hit by the heightened prospect of a Fed rate hike this month, a dealer said.

Phillip Futures Sdn Bhd Dealer Leo Goh Boon Hao said the precious metal was vulnerable towards interest rates, as it could increase the opportunity cost of holding non-interest-bearing gold.

“Based on the past two historical rate actions, gold prices are expected to trade in negative sentiment and stabilise after the Federal Open Market Committee meeting on March 14-15,” he told Bernama.

On a Friday-to-Friday basis, March 2017 fell 76 ticks to RM174, April 2017 declined 82 ticks to RM173.70, May 2017 declined 66 ticks to RM174.30 and June 2017 shed 68 ticks to RM174.50 per gramme.

Turnover for the week slid to 107 lots worth RM2.37 million from 159 lots worth RM2.85 million last week.

Open interest on Friday was higher at 344 contracts from the 437 contracts recorded last week. — Bernama

Malaysia corporate earnings turnaround seen but ‘don’t pop the champagne corks yet’

KUALA LUMPUR (March 4): Malaysian corporate earnings showed signs of improvement in the fourth quarter of 2016 (4Q2016) as more Bursa Malaysia-listed companies reported better numbers compared to a year earlier, The Edge Malaysia business and investment weekly (Edge Weekly) reported. 

Citing The Edge’s research data, Edge Weekly, in its latest March 6 – 12 issue reported that of the 808 companies, which announced their financials for the quarter ended November and December 2016, 440 companies reported stronger earnings versus 368, which did not. 


Yellen hints at more aggressive rate path upon locking in March

Yellen hints at more aggressive rate path upon locking in March

WASHINGTON (March 4): Federal Reserve Chair Janet Yellen left little doubt on Friday that the central bank will raise interest rates this month. More importantly, she dropped hints that it might end up having to increase them this year more than planned.

In a speech to The Executives’ Club of Chicago, Yellen singled out the danger of the central bank being too slow in boosting rates.