Friday, July 5th, 2019

 

Bursa ends lower on persistent profit-taking

KUALA LUMPUR: Bursa Malaysia wrapped up the week in the negative zone as the local stock market remained under selling pressure exerted by profit-takers due to the recent gains.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) finished 4.95 points or 0.29% easier at 1,682.53 compared with Thursday’s close of 1,687.48.

Inter-Pacific Securities head of research Pong Teng Siew said the local bourse had been on the uptrend since the middle of May 2019, when the key index fell to as low as 1,580 points.

“Now, it has moved up over 100 points to the current level of about 1,680 and, therefore, prompted the profit-taking activities which resulted in a negative market breadth,“ he told Bernama.

At the close, breadth in the broader market was negative, with 480 decliners overtaking 350 advancers, while 413 counters remained unchanged, 604 were untraded and 21 others were suspended.

The index ticked up 0.12 of-a-point to 1,687.60 — the day’s high — at the opening before sliding into negative territory. It fell as low as 1,677.08 during the day.

Despite trending lower, Pong said the market benchmark was supported by buying in construction, finance, healthcare, telecommunications, media, oil and gas, as well as technology counters.

Meanwhile, at the close, Tenaga remained the biggest loser among heavyweight stocks, with its share price retreating 54 sen to RM13.60.

The sole electric utility provider in Peninsular Malaysia was also one of the top decliners on the exchange, following news that the government was conducting a study to determine whether new energy suppliers should be allowed to enter the market.

Other blue chip counters that were in the red included Axiata and AMMB, which fell six sen each at RM5.20 and RM4.35 respectively, while Maxis and MISC shed one sen each at RM5.69 and RM7.26 respectively.

Top loser Allianz-PA erased RM1.00 to RM13.50, while the top gainer was F&N, putting on 26 sen to RM34.96.

KNM maintained its position as the most actively traded counter throughout the day, bagging 1.5 sen to 31.5 sen. Iris trimmed half-a-sen to 15 sen, Green Packet was one sen better at 39 sen, Ekovest was down half-a-sen at 87 sen and Sumatec was unchanged at 3.5 sen.

The FBM 70 shrank 48.43 points to 14,889.97 and the FBMT 100 Index lost 35.43 points to 11,741.42, but the FBM Ace advanced 37.35 points to 4,660.41.

The FBM Emas Index shed 33.64 points to 11,905.29 and the FBM Emas Shariah Index wiped out 59.94 points to 12,274.35.

Sector-wise, the Financial Services Index was 15.95 points better at 16,798.61, the Industrial Products & Services Index edged up 0.08 of-a-point to 162.52 and the Plantation Index accumulated 33.66 points to 6,977.13.

Total transaction volume was slightly lower at 2.57 billion units worth RM1.82 billion compared with 2.83 billion units worth RM1.82 billion on Thursday.

Main Market volume narrowed to 1.69 billion shares worth RM1.63 billion from 1.90 billion shares worth RM1.58 billion yesterday.

Warrants turnover fell to 372.91 million units valued of RM80.95 million versus 429.07 million units valued at RM106.52 million on Thursday.

Volume on the ACE Market improved to 510.87 million shares worth RM111.19 million compared to 500.72 million shares worth RM127.19 million previously.

Consumer products and services accounted for 217.22 million shares traded on the Main Market, industrial products and services (218.21 million), construction (208.52 million), technology (144.85 million), SPAC (nil), financial services (31.55 million), property (137.24 million), plantation (10.66 million), REITs (17.69 million), closed/fund (1,000), energy (481.46 million), healthcare (25.62 million), telecommunications and media (128.15 million), transportation and logistics (48.06 million) and utilities (22.60 million). — Bernama


Malaysia’s c.bank seen holding rates to assess economic risks

KUALA LUMPUR: Malaysia’s central bank will likely hold its benchmark interest rate steady at a policy review on Tuesday, to assess the effects of a rate cut in May and give itself room for more easing if economic growth falters later this year, a Reuters poll found.

All 11 economists surveyed expect Bank Negara Malaysia (BNM) to keep its overnight policy rate unchanged at 3.00%, even as the country’s export growth lost momentum and inflation remained benign in the first five months of the year.

In May, Malaysia’s central bank became the first in Southeast Asia to cut interest rates this year as it moved to bolster its economy on concerns about slowing global growth and the impact from the Sino-U.S. trade war.

The cut was Malaysia’s first since July 2016, and reflected changes in global interest rates and the increasingly dovish stance of many central banks over the first half of the year.

“The central bank will likely wait a little longer before pencilling in one more rate cut,” HSBC said in a research note on Friday.

“We expect BNM to ease in 4Q19 when domestic demand will start slowing.”

Malaysia’s exports in May rose 2.5% from a year earlier, slower than expected, on a decline in shipments of manufactured goods to major trade partner China.

Annual inflation in May remained unchanged at 0.2% for the third month in a row. Inflation has been mild since an unpopular consumption tax was scrapped in June 2018, while transport costs have declined after the government put a cap on domestic fuel prices.

BNM will likely take a more “reactive” stance on its key rate, with an eye on whether the U.S. Federal Reserve decides to cut interest rates later this year, said Irvin Seah, senior economist at DBS in Singapore.

Expectations the Fed could cut rates at its July 30-31 meeting are rising, and some investors are betting it could cut by as much as 100 basis points in the coming year.

Seah said Malaysia’s central bank still needs to wait for the effects of its May cut to kick in before it can decide on another rate change.

“If they see a need to have a more aggressive rate cut, they should have done a one-shot 50 point cut earlier on,” Seah said.


GDB marks topping out of Menara Hap Seng 3 ahead of schedule

PETALING JAYA: GDB Holdings Bhd continued its track record of early delivery of projects since its inception with the topping out of Menara Hap Seng 3 in Kuala Lumpur today, two weeks ahead of schedule.

Managing director Cheah Ham Cheia (pix) said that executing the project within a short time frame was an aggressive benchmark for high-rise construction especially with the extensive scope of services and the challenging location of the project.

“The project’s location in the city centre meant that we were required to adhere to stringent regulations on the timing of construction activities, maneuver within the tight space constraints and consider the close proximity of surrounding buildings, among others.

“With the topping out ceremony today, GDB is scheduled to complete the project by the contractual completion date of Dec 31, 2019,” he said in a statement.

GDB was appointed by Hap Seng Land Development (Puchong) Sdn Bhd as the main contractor to build Menara Hap Seng 3, located at the intersection of Jalan Sultan Ismail and Jalan P. Ramlee in Kuala Lumpur city centre.

The 26-storey high-rise building comprises a six-level basement, five levels of retail and food and beverage (F&B) podium, 20 floors of office space and one rooftop F&B outlet.

The scope of works included the provision of earthworks, piling, substructure and superstructure work within a construction period of 26 months, with a contract value of more than RM300 million.


Asian markets fluctuate in cautious trade ahead of US jobs data

HONG KONG, July 5 — Asian markets fluctuated today as investors steeled themselves for the release of a crucial US jobs report that could have a major bearing on the size of an expected Federal Reserve interest rate cut. With uncertainty over the…


Jaguar Land Rover decides to build electric cars in UK

LONDON, July 5 — Car manufacturer Jaguar Land Rover will make electric cars at its central England factory, it announced today, securing thousands of jobs in a major boost to post-Brexit Britain. “Jaguar Land Rover today revealed plans to…


BNM international reserves rise to US$102.7b as at June 28

PETALING JAYA: Bank Negara Malaysia’s (BNM) international reserves rose marginally to US$102.7 billion (RM424.52 billion) as at June 28, 2019 from US$102.6 billion (RM424.11 billion) as at June 14, 2019.

The central bank said in a statement that the reserves position is sufficient to finance 7.3 months of retained imports and is 1.2 times total short-term external debt.


BNM international reserves rise to US$102.7b as at June 28

PETALING JAYA: Bank Negara Malaysia’s (BNM) international reserves rose marginally to US$102.7 billion (RM424.52 billion) as at June 28, 2019 from US$102.6 billion (RM424.11 billion) as at June 14, 2019.

The central bank said in a statement that the reserves position is sufficient to finance 7.3 months of retained imports and is 1.2 times total short-term external debt.


Tenaga’s share falls 4.39% after electricity retail liberalisation news

KUALA LUMPUR: Tenaga Nasional Bhd emerged as one of the top losers on Bursa Malaysia as its share price fell by 4.39 per cent at mid-afternoon today, following news that the government was conducting a study to determine whether new energy suppliers should be allowed to enter the market.

At 3pm, the shares of the sole electric utility provider in Peninsular Malaysia fell 62 sen to RM13.52, with 4.76 million shares traded.

Online news portal Malaysiakini reported today that the Energy, Science, Technology, Environment and Climate Change Ministry was conducting a study to determine whether the liberalisation of the electricity retail sector would result in more competitive tariffs for consumers.

“The ministry is scrutinising and studying the proposal to liberalise the electricity retail sector to allow users to choose electricity suppliers other than Tenaga.

“With regard to this, the ministry is expected to table its findings to the cabinet in the near future to help determine the future of the electricity supply industry,” the ministry was quoted as saying in a parliamentary written reply dated July 3, 2019.


Tenaga’s share falls 4.39% after electricity retail liberalisation news

KUALA LUMPUR: Tenaga Nasional Bhd emerged as one of the top losers on Bursa Malaysia as its share price fell by 4.39 per cent at mid-afternoon today, following news that the government was conducting a study to determine whether new energy suppliers should be allowed to enter the market.

At 3pm, the shares of the sole electric utility provider in Peninsular Malaysia fell 62 sen to RM13.52, with 4.76 million shares traded.

Online news portal Malaysiakini reported today that the Energy, Science, Technology, Environment and Climate Change Ministry was conducting a study to determine whether the liberalisation of the electricity retail sector would result in more competitive tariffs for consumers.

“The ministry is scrutinising and studying the proposal to liberalise the electricity retail sector to allow users to choose electricity suppliers other than Tenaga.

“With regard to this, the ministry is expected to table its findings to the cabinet in the near future to help determine the future of the electricity supply industry,” the ministry was quoted as saying in a parliamentary written reply dated July 3, 2019.


Penang sees more investment inquiries due to US-China trade war

GEORGE TOWN, July 5 — Penang said today it has been receiving more inquiries directly from foreign investors, especially from Taiwan, due to the trade war between the United States and China. Chief Minister Chow Kon Yeow said Taiwan investors are…