Saturday, January 19th, 2019
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WASHINGTON, Jan 19 — The trade deal that US negotiators are seeking with China may have more in common with a sanctions-monitoring regime than a traditional trade pact. The administration of US President Donald Trump is pushing China to agree to…
MANILA, Jan 19 — The Philippines’ wealthiest man Henry Sy, who rose from being a penniless Chinese immigrant to leading a multi-billion dollar business empire, died today, his conglomerate has announced. The 94-year-old, from the Chinese city of…
FBM KLCI likely to hit 1,700-point level next week
KUALA LUMPUR: Bullish buying momentum in index-linked counters is expected to continue driving Bursa Malaysia higher next week, while influencing the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) to hit the 1,700-point level.
Phillip Capital Management Malaysia senior vice-president (investment) Datuk Dr Nazri Khan Adam Khan said construction-related stocks would take the lead in demand next week, as sentiment for the sector improved.
He said the confidence of investors was building up and expected the government to invest in projects previously reviewed, but now to be revived or scaled down, such as the East Coast Rail Link and mass rapid transit Line 3.
He also said Bursa’s solid trading performance against the backdrop of stable economic growth and inflation rates would lend support to sentiment going forward.
“Although we are recording a downward pattern in the first 18 days of 2019, losses on Bursa (5.2 per cent) is relatively lower compared to our neighbours, Thailand and Singapore, at more than 10%.
“This means we are trading in a defensive stock market and our FBM KLCI still resilient. I am optimistic the current uptrend will continue,” he told Bernama.
He said the support and resistance levels are now located at 1,670 and 1,700.
For the week just ended, the local bourse recorded a volatile trading pattern, mainly influenced by external factors such as China’s stimulus announcement, trade talks between China and the United States scheduled in Washington at the end of this month, as well as fresh news of the United Kingdom’s plan to exit the European Union.
On a Friday-to-Friday basis, the benchmark FBM KLCI settled nine points higher at 1,692.22.
The FBM Emas Index was 86.33 points firmer at 11,704.36, the FBMT 100 Index increased 82.77 points to 11,583.99, the FBM Emas Shariah Index advanced 60.26 points to 11,627.73, the FBM 70 surged 186.18 points to 13,777.56 and the FBM Ace Index added 11.44 points to 4,469.54.
Sector-wise, the Finance Index soared 112.62 points to 17,528.25, the Plantation Index rose 83.40 points to 7,201.04, but the Industrial Products and Services Index eased 1.21 points to 163.66.
On a Friday-to-Friday, the weekly turnover reduced slightly to 12.37 billion units worth RM9.32 billion against 14.17 billion units valued at RM11.30 billion.
Main Market volume decreased to 9.19 billion units worth RM8.75 billion versus 10.41 billion units valued at RM10.59 billion.
Warrants turnover narrowed to 1.83 billion units worth RM359.94 million from 1.90 billion units valued at RM368.88 million.
The ACE Market volume slid to 1.34 billion shares worth RM211.61 million against 1.85 billion shares valued at RM341.04 million.
The gold futures contracts on Bursa Malaysia Derivatives are expected to trade higher next week due to global uncertainty.
Phillip Futures Sdn Bhd dealer Ong Su Ling said gold prices are expected to stay bullish as it is likely to be supported by few major factors.
“Among these are the Brexit uncertainties and a prolonged US government shutdown which have further pressured market confidence on lingering economic concerns,“ she told Bernama.
On a Friday-to-Friday basis, spot month January 2019 increased 10 ticks to RM170.50 a gramme, February 2019, March 2019 and April 2019 rose 6 ticks each to RM170.50, RM171.00 and RM171.10 a gramme respectively.
Weekly turnover was one lot at RM16,970 compared to four lots worth RM68,140 previously, while open interest remained at 23 contracts. — Bernama
KUALA LUMPUR: The ringgit is expected to trade higher next week backed by strong domestic fundamentals and higher oil prices, but still exposed to external uncertainties.
FXTM Research Analyst Lukman Otunuga said downside risks could be offset by resilience in domestic demand, manageable inflation and steady economic growth.
“Several local key indicators will be announced next week, including the foreign reserves data, followed by December’s inflation data. The latest CPI reading comes ahead of Bank Negara Malaysia’s (BNM) first Overnight Policy Rate decision for 2019, slated for Jan 24,“ he told Bernama.
He also said the central bank is likely to stand pat on the benchmark interest rate at 3.25 per cent for 2019, in contrast to the tightening bias seen last year in neighbouring central banks.
“Global growth is expected to see downward pressure as the year progresses, which could feed into Malaysia’s economic outlook.
“Domestic inflation, meanwhile, is expected to remain manageable in 2019 and is one of the reasons why BNM feels no real pressure to change monetary policy in either direction,“ Lukman added.
However, he said, investors would still keep a close eye on external factors that have a greater influence over the ringgit, such as US monetary policy, US-China trade tensions, China’s economic slowdown and Brexit uncertainties.
“These future events may also weigh on global sentiment in the near-term, which may put further pressure on emerging market currencies, including the ringgit,“ he said.
The ringgit is expected to trade between 4.10 to 4.12 next week.
On a Friday-to-Friday basis, the local note eased to 4.1100/1150 from 4.0940/0980 against the greenback.
It slid against the Singapore dollar to 3.0301/0342 from 3.0297/0338 and declined against the British pound to 5.3179/3248 from 5.2203/2270.
Against the Japanese yen, the ringgit jumped to 3.7507/7559 from 3.7785/7832 and appreciated against the euro to 4.6842/6903 from 4.7155/7217.
The Malaysian market will be closed on Monday for Thaipusam. — Bernama
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