Saturday, August 19th, 2017

 

Credit Suisse tells clients to take stock gains, breathe, hedge

ZURICH, Aug 19 — Credit Suisse Group AG, the world’s sixth-largest wealth manager, is advising clients to take a pause from investing in stocks. “We think that now is a good time to review equity portfolios, lock in some gains and protect…


SSM offers leeway to select private companies for audit exemption

KUALA LUMPUR (Aug 18): The Companies Commission of Malaysia (SSM) has given a leeway to select private companies for audit exemption, as a means to…


Draghi confronts crux of QE effect in countdown to policy exit

FRANKFURT, Aug 19 — European Central Bank policy makers are wondering how much stimulus quantitative easing offers once bond-buying stops. Their assessment will likely influence the ECB’s strategy for ending its asset-purchase programme….


MBSB gets govt’s green light to buy Asian Finance Bank

KUALA LUMPUR (Aug 18): Malaysia Building Society Bhd (MBSB) has obtained approval from the Minister of Finance to go ahead with its proposed acquisition of…


Catching the next big wave

KUALA LUMPUR (Aug 19): The Edge weekly in its latest edition said that joining the US tech stock rally, Bursa Malaysia-listed semiconductor and semiconductor-related companies have…


India’s central bank governor says state banks need more capital

MUMBAI, Aug 19 — State-run banks will need more capital to resolve bad loan problems weighing on their balance sheets, Reserve Bank of India Governor Urjit Patel said today, adding his voice to calls for increased capital injections into…


Ringgit to trade between 4.27 and 4.28 versus greenback next week

KUALA LUMPUR: The ringgit will likely trade higher against the US dollar between 4.2700 and 4.2800 next week on improved sentiment towards the local unit, a dealer said.

The dealer said the sentiment would be fuelled by a recovery in global oil prices, better-than-expected second quarter of 2017 (2Q17) gross domestic product (GDP) growth of 5.8%, as well as higher current account surplus.

On Friday, Bank Negara Malaysia (BNM) announced that Malaysia's economy grew 5.8% in the 2Q17 compared with four per cent in the same quarter last year.

The central bank also said that the balance of payment showed a surplus of RM9.6 billion in current account compared with RM5.3 billion in the previous quarter, mainly contributed by higher surplus in goods accounts of RM27 billion.

In a statement today, BNM said the ringgit and most regional currencies appreciated against the US dollar during 2Q17, driven mainly by continued weakness in the US dollar due to Trump's administration's policy uncertainties.

“The ringgit, however, appreciated the most during the quarter amid non-resident inflows into Malaysia's financial markets.

“This was driven by encouraging domestic macro-economic conditions, which included the strong GDP growth and exports performance,” the central bank said.

It said the positive ringgit sentiment was also supported by further liberalisation of the bond market and foreign exchange hedging requirements announced by the Financial Markets Committee.

“Going forward, the ringgit will continue to be driven by a confluence of external and domestic factors which include the timing and pace of monetary policy normalisation by major central banks, global political development and domestic economic performance,” it said.

On a Friday-to-Friday basis, the ringgit was traded higher at 4.2880/2910 against the US dollar from 4.2935/2965 in the previous week.

The local note was traded higher against other major currencies.

It improved versus the Singapore dollar to 3.1423/1457 from 3.1461/1495, rose against the British pound to 5.5247/5302 from 5.5644/5696, appreciated against the euro to 5.0311/0363 from 5.0479/0518, and increased against the yen to 3.9285/9324 from 3.9365/9396 last Friday. — Bernama


European shares tumble, Spain attack weakens travel stocks

LONDON, Aug 19 ― European travel stocks fell sharply on Friday after the van attack in tourist hotspot Barcelona. Investors were also increasingly concerned about the stability of the Trump administration. As a global share sell-off spread,…


Sterling set for biggest weekly decline vs dollar in two months

LONDON, Aug 19 ― Britain’s pound edged lower against the dollar yesterday and is set for its biggest weekly decline in more than two months as investors lightened positions after the week of lackluster data quashed expectations of policy…


Shift from non-GAAP bottom lines could be good for US stock prices

SAN FRANCISCO, Aug 19 ― Investors worried about lofty stock-market valuations may take comfort in signs that companies in the benchmark S&P 500 index are padding their bottomlines less than they have in previous years. Recent changes to…