Saturday, December 1st, 2018


Trump, China’s Xi poised for high-stakes summit over trade war

BUENOS AIRES, Dec 1 — US President Donald Trump and Chinese President Xi Jinping will wrap up a global summit today with high-stakes talks expected to determine whether they can begin defusing a damaging trade war between the world’s two biggest…

G20 nations agree on reforming WTO, say European officials

BUENOS AIRES, Dec 1 — European officials said that G20 nations had agreed to commit to reforming the World Trade Organisation in a preliminary draft of the communique due to be released at the end of a two-day meeting of the bloc today. An EU…

Iranian official says oil-for-goods deal planned with South Korea

DUBAI, Dec 1 — Iran and South Korea are working to set up a mechanism to barter South Korean goods for Iranian oil exports, an Iranian trade official was quoted as saying by the state news agency IRNA today, as Tehran seeks ways to sidestep US…

Express Rail Link wins Project of the Year award at Global AirRail Awards

KUALA LUMPUR, Dec 1 — Express Rail Link Sdn Bhd (ERL) has won the Project of the Year 2018 award at the recent Global AirRail Awards 2018 in London. ERL, the operator of the KLIA Ekspres and KLIA Transit services, had previously won the Global…

Cargill exploring new investment opportunities in Malaysia

KUALA LUMPUR, Dec 1 — Agriculture services company Cargill Holdings (Malaysia) Sdn Bhd, which celebrated its 40th anniversary in the country this year, is exploring new investment opportunities. Chairman and Chief Executive Officer David…

Trump-Xi’s meeting outcome to influence ringgit next week

KUALA LUMPUR: The ringgit trading next week will be heavily influenced by the outcome of the much-awaited meeting between US President Trump and China’s President Xi Jinping on the sidelines of the G-20 summit in Argentina.

FXTM Global Head of Currency Strategy and Market Research Jameel Ahmad said a breakthrough in the prolonged trade tensions would be the best outcome for the ringgit as an emerging market asset from this meeting Saturday.

“A resolution to the trade tensions would be the best medicine that risk appetite and Asian markets can receive at this time. However, if the meeting does not conclude with a positive ending then we can expect risks of a renewed risk-off attitude from investors next week,“ he said in a statement today.

He said a negative ending to the meeting could also mean that the trade tensions would continue into the next year.

“This remains as the most significant risk for the ringgit falling to 4.20 against the US dollar as a result of low buying attraction for emerging markets due to trade tension fears,“ he said.

Oanda Head of Trading Asia Pacific Stephen Innes said the market would also be monitoring the development of a possible production cut agreement by the Organisation of the Petroleum Exporting Countries (Opec) and Russia next week.

He said with traders already pricing in a one million barrels per day, it would take a much deeper cut to jolt the market into a short covering rally.

“Otherwise, the market falls prey to the prevailing bearish sentiment that will continue to drive prices lower on the premise the reduction might not be sufficient enough to draw down surplus supplies,“ he said.

For the week just ended, the ringgit closed mostly higher against the US dollar with the market sentiment moved by the US Federal Reserve senior officials’ comment on the interest rate hike direction.

On a Friday-to-Friday basis, the local note strengthened to 4.1820/1870 against the greenback from 4.1920/1960 in the previous week.

The ringgit also traded higher against a basket of major currencies.

The ringgit appreciated against the Singapore dollar to 3.0499/0546 from 3.0489/0530 and vis-a-vis the Japanese yen, it firmed to 3.6843/6903 from 3.7150/7189.

The local unit increased against the British pound to 5.3375/3443 from 5.3855/3927 and strengthened against the euro to 4.7545/7619 from 4.7680/7730. — Bernama

Bursa Malaysia to trade between 1,680-1,710 levels next week

KUALA LUMPUR: Bursa Malaysia is expected to trade in the range of between 1,680 and 1,710 levels next week, on expectations of a good news coming from external factors, mainly the outcome of the Group of Twenty (G20) summit.

M&A Securities Sdn Bhd Chief Dealing Officer R. Sundararajah said if US President Donald Trump and China’s President Xi Jinping were able to come to an understanding on a trade agreement, this would surely be a catalyst for markets to react positively next week.

“Beijing has hinted that it wants to settle the current trade war provided it is fair to both parties. The downward pressure on the crude oil price will also affect the market to certain extent.

“Brent crude, which is currently below US$60 (RM251) per barrel, is also not a good news to Malaysia and also to the oil and gas sector,“ he told <i>Bernama</i>.

Overall, Sundararajah said the local stock market would still need to cope with those uncertainties, and hence, the upside would be likely capped at around 1,710 points.

Meanwhile, Inter-Pacific Research Sdn Bhd Head of Research Pong Teng Siew said Bursa Malaysia is expected to trade sideways next week at about 1,700-point level.

He said the composite index (CI) has not been largely moving and stayed at about 1,700-point range since the third week of October this year.

“Generally, the CI usually will trend sideways around this time in the last month of the year,“ he said.

For the week just ended, Bursa Malaysia traded mostly higher on external factors, including investors optimism on the G20 summit and the meeting between Trump and Xi on its sidelines, as well as the announcement of a lower interest rate increase by the US Federal Reserve.

The local stock market was also influenced by the performances on Wall Street and regional markets, as well as the crude oil prices.

On a Friday-to-Friday basis, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) settled 16.02 points lower at 1,679.86.

The FBM Emas Index fell 174.55 points to 11,604.34, the FBMT100 Index decreased 149.56 points to 11,480.05 and the FBM Emas Syariah Index eased 202.38 points to 11,633.44.

The FBM 70 lost 332.04 points to 13,541.91 and the FBM Ace was 175.76 points lower at 4,67.43.

Sector-wise, the Finance Index bucked the trend, rising 54.63 points to 17,369.22, but the Industrial Products and Services Index edged down 2.03 points to 170.43, while the Plantation Index was 328.88 points weaker at 6,853.27.

Comparing Friday-to-Friday, the weekly turnover expanded to 10.84 billion units worth RM13.13 billion from 6.96 billion units valued at RM6.04 billion.

Main Market volume increased to 7.72 billion units valued at RM12.47 billion versus 4.33 billion units worth RM5.41 billion last Friday.

Warrants turnover rose to 1.83 billion units worth RM414.34 million from 1.48 billion units valued at RM371.96 million previously.

The ACE Market volume was higher at 1.25 billion shares valued at RM257.08 million compared with 1.14 billion shares worth RM254.49 million previously. — Bernama

Bursa likely to trade between 1,680-1,710 levels next week

KUALA LUMPUR, Dec 1 — Bursa Malaysia is expected to trade in&nbsp;the&nbsp;range of between 1,680 and&nbsp;1,710 levels next week, on&nbsp;expectations of a&nbsp;good news coming from external factors, mainly the outcome of the Group of Twenty…

Outcome of Trump-Xi talks to influence ringgit’s performance next week

KUALA LUMPUR, Dec 1 — The ringgit trading&nbsp;next week will&nbsp;be heavily influenced by the outcome of the much-awaited meeting between US President Trump and China’s President Xi Jinping&nbsp;on the sidelines of&nbsp;the G20 summit in…

Group of EU states reject compromise on digital tax as deadline looms

BRUSSELS, Dec 1 — A group of European Union countries rejected yesterday a new compromise plan for the introduction of an EU-wide tax on digital revenues of large companies, diplomats said, making it increasingly difficult to meet a year-end…