Saturday, August 17th, 2019

 

Report: Standard Chartered faces fine for sanctions breaches

LONDON, Aug 17 — Banking group Standard Chartered is facing a fine for failing to prevent sanctions breaches, Sky News reported today. Britain’s Office of Financial Sanctions Implementation, which includes police and intelligence officers as…


Malaysia’s economy to be driven by ongoing mega projects in second half of 2019, says expert

KUALA LUMPUR, Aug 17 — Malaysia’s economic growth for the second half of this year is set to be healthy and driven by the ongoing mega projects, despite the current global economic uncertainties, says Maybank Kim Eng Group economist, Lee Ju Ye….


Trump says Apple will spend ‘vast sums’ in US

WASHINGTON, Aug 17 — Donald Trump said yesterday that tech giant Apple would be spending “vast sums” of money in the US in a tweet ahead of a dinner meeting with its CEO Tim Cook. The men have had several informal meetings before, including at…


Alibaba and the US$15b question: Amid Hong Kong’s protests, when to list?

HONG KONG, Aug 17 — Hong Kong’s political unrest is posing a dilemma for Alibaba Group Holding Ltd on the timing of its planned US$15 billion (RM62.6 billion) listing in the city, with sources saying China’s biggest e-commerce company is now…


Cautious mood to weigh on ringgit next week

KUALA LUMPUR: The ringgit is expected to trade in a cautious mood next week, while moving in a tight range of between 4.17 and 4.19 against the US dollar as sentiment for USD/MYR remained fragile.

Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit gained some strength against the US dollar on Friday amidst external uncertainties, and due to the better-than-expected second quarter 2019 (2Q19) gross domestic product result, which came in at 4.9% against consensus estimates of 4.7%.

The GDP posting was mainly due to private consumption, while investments and government spending were largely tepid, he added.

“Net exports grew at double-digit pace, but, largely driven by a contraction in imports. So, on net growth, prospects are still highly uncertain as consumer spending momentum may not hold up in view of weak sentiments.

“Against such a backdrop, the USD/MYR remained fragile next week and the exchange rate would linger around RM4.17-RM4.19, as risk aversion is expected to remain prevalent,” he told Bernama.

For the week just-ended, the local market saw a volatile trading pattern with risk appetite mostly influenced by the external factors, especially developments in the US-China trade war.

The local market was closed on Monday in lieu of Hari Raya Aidiladha which fell on Sunday.

The ringgit ended the week higher at 4.1760/1810 against 4.1830/1860 recorded on last Friday on the back of the stronger 2Q19 gross domestic product results.

The local currency also traded firmer against most other major currencies.

It rose against the Singapore dollar to 3.0097/0140 from last Friday’s 3.0259/0285, improved versus the Japanese yen to 3.9230/9288 from 3.9522/9561 and edged up against the euro to 4.6283/6346 from 4.6858/6908.

The local currency, however, depreciated vis-a-vis the pound to 5.0763/0828 from 5.0763/0828 as appetite for the British currency strengthened on the country’s latest political developments, with the cross-party government measures being taken to avoid a no-deal Brexit.

The growing optimism over a substantial stimulus package by the European Central Bank also helped push British pound higher. — Bernama


Lower rates could boost US housing stocks, but risks remain

NEW YORK, Aug 17— Lower US interest rates could help support outperforming US homebuilder stocks, even as they raise worries about the economy, while a bonanza of industry data and Federal Reserve speakers next week are likely to help shape the…


Cathay Pacific’s torrid week ends with shock CEO resignation

HONG KONG, Aug 17 — Cathay Pacific announced the shock resignation yesterday of its CEO Rupert Hogg, compounding a torrid week for the Hong Kong carrier after it was excoriated by Beijing because some staff supported pro-democracy protests. The…


US set to give Huawei another 90 days to buy from American suppliers, say sources

SINGAPORE, Aug 17 — The US Commerce Department is expected to extend a reprieve given to Huawei Technologies that permits the Chinese firm to buy supplies from US companies so that it can service existing customers, two sources familiar with the…


FBM KLCI to stay range-bound amid global volatility

KUALA LIMPUR: Bursa Malaysia is expected to trade range bound next week against the backdrop of global volatility and despite a stronger than expected second quarter gross domestic product (GDP) announcement.

Phillip Capital Management Senior Vice President (Investment) Datuk Dr Nazri Khan Adam Khan said the market barometer is expected to decline towards the 1580 points support level next week, driven by global weakness.

“The benchmark FTSE Bursa Malaysia (FBM KLCI) joined the global equities rout as recession fears begin to appear. This is due to inverted US treasury yields and concerns over the US economic health.

“Following the mixed performance across the globe, we expect the FBM KLCI to hold up at the 1,600 points level against a healthy domestic economic outlook,” he told Bernama.

He said on the technical front, the FBM KLCI showed a resilient break below the meaningful 1,600 points support.

“The local bourse charted a small “Bearish Harami” candlestick pattern near the aforementioned support mark, an indication that the bears are pushing against the bulls,” Nazri Khan said.

He also said the immediate support for the local bourse would stay near 1,580 points and conversely, the immediate resistance is located at 1,600 points, while the next resistance is seen at 1,630 points

For the holiday-shortened week, the FBM KLCI slid from its support level of 1,600 in tracking the performance of Wall Street with the Dow Jones Industrial Average falling more than three per cent in two days, while dubbed the worst fall of the year.

On Wednesday, the market temporarily rebounded, as US President Donald Trump delayed the extra tariffs that were expected to hit Chinese export goods to December 15.

However, the local bourse market faced contraction on Thursday again, in line with regional peers, due to heightened global uncertainty.

On Friday, the local market ended mixed backed by the better than expected second-quarter GDP which is expected to be a temporary catalyst for the FBM KLCI next week.

On a Friday to Friday basis, the FBM KLCI fell 15.83 points to 1,599.22 from 1,615.05.

Trading in the week was heavily influenced by Wall Street’s performance, the tariff delay by the US on Chinese goods, as well as Malaysia’s GDP announcement.

The FBM Emas Index declined 132.22 points to 11,308.11, the FBMT 100 Index slipped 127.22 points to 11,145.65 and the FBM Emas Shariah Index fell 83.35 points to 11,843.22.

The FBM 70 weakened 230.25 points to 14,074.12 and the FBM Ace Index declined 109.92 points to 4,587.72.

Sector-wise, the Financial Services Index slid 317.48 points to 15,524.51, the Plantation Index advanced 30.94 points to 6,758.37 and the Industrial Products and Services Index eased 2.92 points to 149.72.

Weekly turnover declined to 8.33 billion units with a value of RM6.6 billion compared with 12.45 billion units valued at RM10.11 billion.

Main Market volume contracted to 5.38 billion shares worth RM5.99 billion compared with 7.64 billion shares worth RM9.19 billion.

Warrants turnover also slid to 1.75 billion units worth RM499.52 million from 2.41 billion units valued at RM596.71 million.

The ACE Market volume also declined to 1.17 billion shares worth RM187.90 million compared with 2.40 billion shares valued at RM318.84 million. — Bernama


Global stock markets recover at end of turbulent week

NEW YORK, Aug 17 — Global stock markets rose yesterday as investors put economic growth fears and trade jitters to one side, deciding that they had had enough drama and losses for one week. “We’re ending a turbulent week on a more positive…