Saturday, September 15th, 2018


France to replace ‘Exit Tax’ on capital gains, target fiscal cheats

PARIS, Sept 15 — France will abolish a tax imposed on the capital gains of top earners and entrepreneurs who leave France and sell their assets with a more-targeted levy designed to deter tax optimisation, a finance ministry spokesman said today….

MARC affirms AAA rating on Sime Darby Plantation

KUALA LUMPUR, Sept 15 — The Malaysian Rating Corporation Bhd (MARC) has affirmed Sime Darby Plantation Bhd’s (SD Plantation) corporate credit rating at AAA and the company’s Perpetual Subordinated Sukuk Programme (Perpetual Sukuk) of up to…

German expert says Malaysia’s auto-parts industry is ‘best-developed’ in SE Asia

FRANKFURT, Sept 15 — Malaysia’s auto-parts industry has made good strides over the years and is the best-developed in South-east Asia. This is according to Michael Johannes, Vice President at Messe Frankfurt, the organiser of the world’s…

Ringgit to strengthen ‘quite a lot’ over next six months, says Fernandes

SINGAPORE, Sept 15 — “We are a strong believer that the ringgit will strengthen quite a lot over the next six months,” says Tan Sri Tony Fernandes. “We also believe that fundamentally, the ringgit is undervalued,” the…

Volvo Cars seeks US tariff exemption for Chinese-made SUV

WASHINGTON, Sept 15 ― Volvo Cars has asked the Trump administration to exempt the company's Chinese-made mid-size XC60 SUV from new 25 per cent tariffs, the latest automaker to seek relief from new levies on imports from China. The automaker…

Tourism contributes 14.9pc to Malaysia’s economy

KUALA LUMPUR, Sept 15 ― The tourism industry continued its significant contribution to the country's economic growth with a share of 14.9 per cent last year as compared to 10.4 per cent in 2005. In a statement, chief Statistician Datuk Seri Dr…

Global airline shares in Q218 in profitability

KUALA LUMPUR, Sept 15 ― Global airline shares in the second quarter 2018 (Q218) declined in airline profitability compared to the same quarter last year, said the International Air Transport Association (IATA) in its July-August 2018 airline…

Nike shares at record high after Kaepernick ads

NEW YORK, Sept 15 ― Nike shares reached an all-time high this week as data pointed to an uptick in online sales following the sporting goods giant's envelope-pushing ad campaign featuring athlete Colin Kaepernick. Nike, a member of the blue-chip…

Bursa M’sia to trend higher next week on improving market sentiment

KUALA LUMPUR: Bursa Malaysia is expected to trend higher next week, riding on the recovery in the overall market sentiment, a dealer said.

“It is somehow tricky to determine the market tone next week. For the short trading week just ended, it was driven purely by sentiment in the market.

“However, stronger crude oil prices coupled with the strong US stock market's performance, including the Nasdaq, would be factors to boost the market next week,” the Malaysian Association of Technical Analysts President, Nik Ihsan Raja Abdullah told Bernama.

Benchmark Brent Crude rose 0.17% to US$78.31 per barrel.

He also noted that local technology stocks would be in the spotlight next week, benefiting from trade tensions and the strong Nasdaq performance.

“Hence, I believe the composite index would linger between 1,790 and 1,820,” Nik Ihsan said.

Bank Islam Chief Economist Dr Mohd Afzanizam Abdul Rashid said markets were mostly positive on Friday, taking cue from the overnight performance of US equities.

He also said the US consumer price index, which grew 2.7% year-on-year in August after a 2.9% increase in the previous month, suggests the rate hike in the US was going to be gradual.

“Meanwhile, the Turkish central bank raised its policy rate to 24%, indicating the central bank had independence in deciding on monetary policy. Perhaps, these are the factors that will support the markets,” he added.

On a Friday-to-Friday basis, the benchmark FTSE Bursa Malaysia KLCI settled 4.59 points better at 1,803.76.

The FBM Emas Index was up 2.57 points to 12,565.0 and the FBMT100 Index gained 5.42 points to 12,386.98.

The FBM 70 lost 92.25 points for 14,844.57, the FBM Emas Shariah Index decreased 16.73 points to 12,666.80, while the FBM Ace improved 30.52 points to 5,177.24.

On a sectoral basis, the Finance Index climbed 127.33 points to 17,923.44, the Plantation Index was up 47.03 points to 7,551.86, while the Industrial Index eased 17.19 point to 3,204.36.

Weekly turnover slipped to 7.29 billion units worth RM7.87 billion from 11.68 billion units worth RM10.15 billion.

Main market volume declined to 5.66 billion shares valued at RM8.99 billion from last Friday's 6.81 billion shares worth RM9.05 billion.

Warrants turnover improved to 2.98 billion units worth RM872.93 million from 1.8 billion units worth RM488.26 million.

The ACE market volume narrowed to 1.73 billion shares worth RM238.88 million from 2.03 billion shares valued at RM360.64 million.

The market was closed on Monday and Tuesday due to public holidays.

It will be closed again on Sept 17 (Monday) for the Malaysia Day Holiday.

Phillip Futures Sdn Bhd Derivative Dealer Ong Su Ling said the US Federal Reserve will hold its two-day meeting beginning Sept 26, with an expectation of raising interest rates by a quarter of a percentage point.

On a Friday-to-Friday basis, September 2018 jumped 13 ticks to RM161.20 a gramme, while October 2018 gained six ticks to RM161.20 a gramme.

Meanwhile, November 2018 and December 2018 declined three ticks each to RM161.20 and RM161.40 a gramme respectively.

Weekly turnover eased to five lots worth RM64,480 against seven lots worth RM112,155 previously.

Open interest remained at 25 contracts.

Bursa Malaysia and its derivatives were closed on Monday and Tuesday respectively for the King's birthday as well as Awal Muharram.

The market will be closed again on Sept 17 (Monday) for Malaysia Day. — Bernama

Ringgit to trade at current level next week

KUALA LUMPUR: The ringgit is likely to trade at the current level of between 4.130 and 4.150 against the US dollar next week with market sentiment poised to remain driven by global trade developments and movements across emerging markets, said dealers.

OANDA Head of Trading in Asia Pacific Stephen Innes said the market would be cautious given that much of the risk revival hinged on possible US-China trade talks aimed at de-escalating the trade friction between the two economies.

“On the positive front, the placid US Consumer Price Index does take a bit of pressure off local currencies as the US dollar bulls will not be so aggressive. But overall, I do not expect the reprieve to be lasting.

“I view the recent currency price action as more of a short covering rally than new money coming into the markets. As such, I think US dollar dips will remain bid, so I anticipate 4.13 US dollar/ringgit could be a bridge too far or provide solid support,” he told Bernama.

The ringgit traded rangebound in the holiday-shortened week amid a quiet market. The market was closed on Monday and Tuesday for King's birthday and Awal Muharram respectively.

The market will be closed again on Monday for Malaysia Day.

On a Friday-to-Friday basis, the local note appreciated to 4.1370/1400 against the US dollar from 4.1435/1465.

The ringgit was mostly lower against other major currencies.

It increased against the Japanese yen at 3.6997/6037 from 3.7406/7444 previously, but was lower against the euro at 4.8390/8446 from 4.8210/8257.

It weakened against the Singapore dollar to 3.0208/0241 from 3.0139/0163 and declined against the British pound to 5.4282/4338 from 5.3725/3768. — Bernama