Saturday, July 27th, 2019

 

Report: Pfizer in talks on off-patent drugs merger with Mylan

WASHINGTON, July 27 — US pharmaceutical giant Pfizer is nearing a deal to merge its off-patent drugs business with generic drugmaker Mylan, The Wall Street Journal reported today. The proposed merger, which the Journal said could be announced as…


PKNS eyes RM60m sales at property expo

KUALA LUMPUR, July 27 — The Selangor State Corporation (PKNS) is targeting RM60 million in sales from the 10-day PKNS Property Exhibition Series 2/2019 from July 26 to August 4. In a statement today, PKNS said the exhibition, in conjunction with…


PM Johnson: Brexit is a ‘massive economic opportunity’

MANCHESTER, July 27 — British Prime Minister Boris Johnson today said Brexit was a “massive economic opportunity” but had been treated under his predecessor Theresa May as “an impending adverse weather event”. In a speech in Manchester…


Malaysia Airlines inks deal with Turkish-Dorak Holdings to provide charter flights between KL and Istanbul

KUALA LUMPUR, July 27 — Malaysia Airlines Bhd (MAB) has partnered Turkish-Dorak Holdings to provide charter flights between Kuala Lumpur and Istanbul’s Sabiha Gokcen International Airport from October until December 2019. A three-month agreement…


Bursa Malaysia to remain indifferent next week over unresolved trade dispute

KUALA LUMPUR: Bursa Malaysia will remain indifferent next week as traders await local and foreign leads to renew interest on the heavyweights following the unresolved US-China trade dispute to partly determine the market direction.

The 1,700 points expectation might now become a major hurdle, according to Malacca Securities Sdn Bhd.

“We see upsides if there are positive developments in the trade talks or vice versa, but much will also be dependent on the trade agreement details and the impact to global trade and economic performances.

“Therefore, any relief rally could still be muted if any trade agreement is seen as superficial with few immediate benefits to the global growth,” it said in a statement.

The US and China, two of the world biggest economies, are set to resume their trade talk while trying to bridge differences over trade and technology and geopolitical issues.

US officials are likely to travel to China for the discussions sometime between July 26 and Aug 1.

However, the White House officials were said to be eyeing a longer-term timeline to strike a deal, which could take roughly six months.

Meanwhile, Malacca Securities said although the FBM Small Cap index is overbought and consolidation is due, there are still value propositions among its constituents as some industry leaders are displaying firm growth prospects to sustain earnings growth, coupled with still favourable valuations.

“However, we think that buying opportunities will present themselves after a consolidation spell to adjust from overbought. At the same time, high dividend-yielding stocks will continue to appeal to more conservative market players for portfolio resilience and hedge against the rising market volatility,” it added.

Philip Capital Management, on the other hand, maintains its optimistic view of the local market, despite the mixed signals which gauged the global economies.

“We believe that the FBM KLCI will eventually regain its bullish sentiment after digesting the implication of the European Central Bank (ECB) meeting,” its senior vice-president (investment), Datuk Dr Nazri Khan Adam Khan told Bernama.

On the technical analysis, he saw minor correction after the FBM KLCI tested the 200-day moving average line was still in play and set the immediate resistance at 1,658 points, followed by the strong resistance at around 1,700 points.

Nazri said that the market would watch closely the US Federal Reserve’s decision on a possible interest rate cut at the July meeting.

“The US Fed is expected to meet on July 30 and 31, and investors are waiting for the announcement whether an interest cut is taking place or not,” he said.

For next week, among the stocks to look at are Sunway Construction Group Bhd (construction) and Hartalega Holdings Bhd (healthcare).

For the week just ended, the FBM KLCI index erased 10.23 points to 1,647.96 from 1,656 last Friday.

Trading in the week was influenced by the Wall Street performance, the highly anticipated ECB rate cut, as well as the Federal Open Market Committee meeting.

The FBM Emas Index declined 91.80 points to 11,698.42, the FBMT 100 Index depreciated 96.59 points to 11,519.66 and the FBM Emas Shariah Index trimmed 104.37 points to 12,060.49.

The FBM 70 weakened 225.15 points to 14,687.88 but the FBM Ace Index gained 89.80 points to 4,764.77.

Sector-wise, the Financial Services Index slid 277.93 points to 16,317.95, the Plantation Index dipped 35.37 points to 6,778.63 and the Industrial Products and Services Index inched down 1.02 points to 155.79.

Weekly turnover fell to 13.96 billion units worth RM9.90 billion versus 15.49 billion units worth RM9.46 billion last week.

Main Market volume decreased to 9.25 billion shares valued at RM9 billion against 10.83 billion shares worth RM8.27 billion.

Warrants turnover rose to 2.36 billion units worth RM486 million vis-a-vis 1.99 billion units worth RM391.59 million.

The ACE Market volume fell to 2.34 billion shares valued at RM411.64 billion from 2.66 billion shares worth RM486.93 million. — Bernama


Ringgit to trade cautiously next week

KUALA LUMPUR: Malaysian ringgit is likely to trade on a cautious note between 4.10 and 4.13 against the US dollar next week, as investors await the outcome of two important meetings next week, namely the US-China meeting in Shanghai and US Federal Open Market Committee (FOMC) meeting.

Vanguard Markets Pte Ltd managing partner Stephen Innes said the outcome of the Shanghai meeting is a sensitive spot for investors as a slight change could influence the market both ways.

“The US-China trade dispute is a sensitive issue as the decision would impact businesses worldwide,“ he said.

As for the FOMC meeting, he said as global central banks eased outlook by implementing interest rate cuts, the ringgit has a chance to edge higher.

The US-China trade discussion will take place next Tuesday (July 30), while the FOMC meeting will be held on Tuesday and Wednesday.

Meanwhile, Melaka Securities Sdn Bhd, in a research note, said with the external sector remaining uncertain, the local currency depreciated to an average of RM4.15/US$1.00 in the second quarter of 2019 (2Q2019) compared with 4.09/US$1.00 in 1Q2019.

“Meanwhile, crude oil prices continue to trend higher, moving into the start of 2Q2019 after OPEC’s output declined for the fourth straight month in March 2019,“ he said.

As at 6.30pm, the benchmark Brent Crude was at US$63.69 per barrel.

For the week just ended, the ringgit was traded mostly lower against the US dollar on sentiments following the interest rate cut by the Federal Reserve, US-China trade disputes and oil price movements.

On a Friday-to-Friday basis, the ringgit was at 4.1180/1210 compared with last Friday’s 4.1100/1130 against the greenback.

The local currency was traded higher against most other major currencies.

The ringgit rose against the Singapore dollar to 3.0091/0118 from 3.0236/0269 in the preceding Friday and strengthened versus the Japanese yen to 3.7905/7936 from 3.8165/8207.

It also improved against the British pound to 5.1211/1265 from 5.1474/1519 and increased vis-a-vis the euro to 4.5879/5920 from 4.6184/6234. — Bernama


Alphabet, Starbucks send Wall Street to record high

NEW YORK, July 27 — Robust earnings from Alphabet and Starbucks pushed the S&P 500 and Nasdaq indexes to record highs yesterday, with support from data showing US economic growth slowed less than expected in the second quarter. The US Commerce…


SIngapore companies more cautious in hiring as Q2 job growth slows, report shows

SINGAPORE, July 27 — Employers are exercising greater caution when hiring even if they have unfilled vacancies, said the Ministry of Manpower (MOM) yesterday as its latest quarterly labour report showed weaker job growth. Unemployment rates…