Saturday, June 22nd, 2019

 

White House’s Kushner unveils economic portion of Middle East peace plan

WASHINGTON, June 22 — The Trump administration’s US$50 billion (RM206.8 billion) Middle East economic plan calls for creation of a global investment fund to lift the Palestinian and neighbouring Arab state economies, and construction of a US$5…


Perak records RM1.43b investments for Jan-March 2019

TELUK INTAN, June 22 — Perak recorded investments of RM1.43 billion for the January to March period this year compared with RM249.8 million in the same period last year. Mentri Besar Datuk Seri Ahmad Faizal Azumu said according to statistics from…


What is the RCEP trade deal and could it be signed this year?

BANGKOK, June 22 ­— Led by China — and excluding the United States — the sprawling Regional Comprehensive Economic Partnership (RECP) is poised to become the biggest global trade deal, linking half the world’s people and marking Beijing’s…


Bursa Malaysia to test 1,700 next week, track global equities

KUALA LUMPUR: The FTSE Bursa Malaysia KLCI (FBM KLCI) is likely to test the 1,700-level next week, tracking the positive performance of global equity markets, driven mainly by dovish US Federal Reserve (Fed) sentiment, said Phillip Capital Management.

Asia-Pacific senior vice president (investment) Datuk Dr Nazri Khan Adam Khan said the US equities market ongoing uptrend is a reflection of the Fed’s statements, which is done to create balance ahead of the US-China trade deal discussion, scheduled to take place during the G20 Summit later this month.

“Developments by the Fed have also caused the US government bond yields to reach their lowest level seen since the past three years while the dollar continues its decline.

“We believe with increasing uncertainties towards the global economic outlook, investors are hopeful for a rate cut to follow through next month,” he told Bernama.

Technically, the encouraging momentum over the last one week had sent the FBM KLCI above the medium-term downtrend line.

This reflected positive continuation of the bullish bias since the index rebounded firmly above the 50-day moving average line last month, while the “positive divergence” pattern suggested a change of trend from downside towards upside, he said.

Nazri Khan also said the recent bullish run spread to commodities whereby the energy sector was the best performer in the S&P 500 Index as it observed Brent crude rise a whopping 3.6% – one of its best performance of the year.

The huge leap in the black gold’s value came after Iran’s reported shot down of a US surveillance drone which exacerbates tension between the two countries.

Bursa Malaysia traded on cautious mode earlier in the week as investors adopted a wait-and-see attitude for the Fed’s interest rate cut and subsequently climbed as the Fed kept its interest rate unchanged.

Investors believed a rate cut would happen sooner rather than later.

The Bank of Japan also followed the Fed’s step to maintain status quo on its interest rate but the Japanese central bank said it could combine interest rate cuts with bigger asset buying if needed to keep the economy on track (to achieve its two per cent inflation target).

Bursa Malaysia’s positive market sentiment was also boosted by the announcement from US President Donald Trump that he would soon meet Chinese President Xi Jinping to discuss ways to ease their trade tensions.

On a Friday-to-Friday basis, the benchmark FBM KLCI surged 43.60 points to 1,682.23, hitting a more than a four-month high.

The FBM Emas Index jumped 284.86 points to 11,849.51, the FBMT 100 Index advanced 263.59 points to 11,704.01 and the FBM Emas Syariah Index jumped 422.18 points to 12,210.42.

The FBM Ace Index added 9.80 points to 4,397.34 and the FBM 70 rose 318.07 points to 14,699.1.

Sector-wise, the Financial Services Index put on 15.09 points to 16,746.56, the Plantation Index bagged 148.46 points to 7,019.54 and the Industrial Products and Services Index inched up 1.77 points to 162.12.

Weekly turnover increased to 10.56 billion units worth RM10.81 billion from 10.07 billion units valued at RM9.07 billion recorded last week.

Main Market volume fell to 6.14 billion shares worth RM9.58 billion versus 6.32 billion shares valued at RM8.11 billion.

Warrants turnover eased to 2.11 billion units worth RM584.28 million against 2.29 billion units valued at RM500.22 million.

The ACE Market volume soared to 1.84 billion shares worth RM633.37 million compared with 1.45 billion shares valued at RM455.11 million. — Bernama


Ringgit expected to trend higher next week

KUALA LUMPUR: The ringgit is expected to trend higher next week as investors await for new catalyst following renewed prospects of the meeting between US President Donald Trump and his Chinese counterpart Xi Jinping at next week’s G20 Summit, said an analyst.

The prospect of the meeting had triggered positive sentiment surrounding risk assets, said FXTM analyst Han Tan.

“The ringgit strengthened by about 0.3% against the US dollar this week, as the US Federal Reserve’s recent meeting indicated the possibility of a US interest rate cut over the coming months.

“The dollar’s tumble has helped the Group of 10 and Asian currencies advance further, given that the Fed’s bias towards easing its monetary policy settings has weakened support for the greenback,” he said in a note.

Tan also said the keenly-awaited Trump-Xi meeting was set to be a major catalyst for global risk sentiment in the week ahead.

“A favourable outcome that brings the world closer to a concrete resolution in the US-China trade conflict could send risk assets higher, including the ringgit,” he added.

Tan noted that for the week ahead, the ringgit’s near-term support level would be at the 4.14-level, while further weakness may be halted at the 4.17 mark.

On a Friday-to-Friday basis, the ringgit strengthened to 4.1480/1510 from 4.1650/1690 against the US dollar.

It traded mixed against other major currencies.

The local unit depreciated against the Singapore dollar to 3.0545/0576 from 3.0457/0491 at last Friday’s close, and declined to 3.8568/8607 from 3.8490/8534 versus the yen.

It improved versus the euro to 4.6864/6915 from 4.6940/6989 previously and, vis-a-vis the pound, it appreciated to 5.2505/2552 from 5.2691/2759. — Bernama


Bursa to test 1,700 next week, track global equities

KUALA LUMPUR, June 22 — The FTSE Bursa Malaysia KLCI (FBM KLCI) is likely to test the 1,700-level next week, tracking the positive performance of global equity markets, driven mainly by dovish US Federal Reserve (Fed) sentiment, said Phillip…


Investors eye G20 with hopes for US-China trade detente

NEW YORK, June 22 — All eyes will be on US President Donald Trump and China’s President Xi Jinping next week as investors are desperate for any signs of a thaw in US-China relations even if it shifts expectations for much awaited Federal Reserve…


Oil climbs on Iran tensions, stocks edge back from seven-week highs

NEW YORK, June 22 — Oil prices added to recent gains yesterday on fears any US military attack on Iran would disrupt flows of crude from the Middle East, while a gauge of global stock markets edged back from seven-week highs following a run-up…


Bang-up week on Wall Street ends with a whimper

NEW YORK, June 22 — Wall Street edged lower yesterday, as US Vice President Mike Pence’s decision to defer a speech on China policy increased optimism on upcoming trade talks between Washington and Beijing, while tensions between the United…


Huawei files lawsuit against US Commerce Dept over seized equipment

WASHINGTON, June 21 — Huawei Technologies Co Inc filed a lawsuit against the US Commerce Department yesterday challenging whether telecommunications equipment it sent from China to the United States, and then back to China, is covered by Export…