Saturday, August 24th, 2019

 

Johnson, EU chief in Brexit blame game

BIARRITZ (France), Aug 24 — British Prime Minister Boris Johnson said today that the European Union needed to drop its insistence on the so-called Irish backstop to avoid a “no deal” Brexit. “I don’t want a ‘no deal’ Brexit. I say to…


China hits out at ‘bullying’ US over new tariffs

BEIJING, Aug 24 — China today angrily hit out at the latest US tariff hikes on its goods, saying a “bullying” Washington would eventually “eat its own bitter fruit”. European leaders have also warned US President Donald Trump of the…


Macron, Tusk sound alarm over trade war risks

BIARRITZ (France), Aug 24 — EU Council President Donald Tusk warned today that US President Donald Trump’s escalating trade skirmishes with China and Europe could force economies around the world into recession. “Trade wars will lead to…


Trump, EU clash over trade at G7 opening

BIARRITZ (France), Aug 24 — US President Donald Trump and EU leaders exchanged trade war threats today as they arrived in France for a G7 summit of wealthy democracies overshadowed by trans-Atlantic tensions before it had even begun. “Trade wars…


Govt to continue driving Love MY Palm Oil campaign, says deputy minister

MELAKA, Aug 24 — The government will continue to drive the Love MY Palm Oil campaign aggressively via the Ministry of Primary Industries (MPI) to ensure palm oil production reaches approximately 20 million tonnes annually for export purposes and…


Trump says he won't stop Jerome Powell from resigning as Fed Chair

WASHINGTON, Aug 24 ― US President Donald Trump sharply criticised Federal Reserve Chairman Jerome Powell yesterday and said he wouldn't try to stop the chief US central banker if he offered to resign. Trump, departing the White House to travel to…


Trump: US will tax French wine in response to digital tax

WASHINGTON, Aug 24 ― US President Donald Trump threatened his French hosts with taxes on their wines yesterday as he headed to a G7 summit in France with a series of parting shots, including another broadside at the Federal Reserve's chairman….


FBM KLCI to trade higher next week on bullish divergence

KUALA LUMPUR: Bursa Malaysia is expected to trade higher next week on the back of bullish divergence.

Phillip Capital Management Senior Vice President (Investment) Datuk Dr Nazri Khan Adam Khan said this is a reversal pattern, which is an indication that the recent downtrend is nearing its end and the market is about to experience a fresh revival.

“The local bourse is expected to trend higher, remaining above the 1,600-point benchmark, which would also draw mild bargain hunting interest despite concerns over the global economic outlook amid the prolonged trade war,“ he told Bernama.

As the week just ended, the FTSE Bursa Malaysia (FBM KLCI) ended at a high note at 1,609.33, the highest since the slip on Aug 13 due to recession fears after Dow Jones Industrial Average slumped more than 800 points.

The local bourse persisted to break across the 1,600 resistance level backed by institutional support despite the backdrop of flattish regional markets as the trade war and recessions spooked investors

Going forward, Nazri said aside from continuous political turmoil in Hong Kong, the United Kingdom and Italy, investors are also cautiously awaiting US Federal Reserve chairman Jerome Powell’s speech at the annual Jackson Hole symposium about the outlook for interest rates.

The market would also react to the policies made during the G7 meeting in France over the weekend and the upcoming decision on whether or not Malaysia would remain in the World Government Bond Index (WGBI) in the coming week.

On Friday, the local market ended higher backed by institutional support in government-linked blue chips.

On a Friday-to-Friday basis, the FBM KLCI rose 10.11 points to 1609.33 from 1599.22.

Over the week, the market is was traded range-bound as the market was less enthusiastic pending further market direction especially from the Jackson Hole symposium and G7 meeting.

The FBM Emas Index recovered 78.04 points to 11386.15, the FBMT 100 Index added 73.68 points to 11,219.33 and the FBM Emas Shariah Index rose 80.97 points to 11,924.19.

The FBM 70 firmed 106.33 points to 14,180.45 and the FBM Ace Index declined 34.09 points to 4,555.63.

Sector-wise, the Financial Services Index expanded 130.82 points to 15,655.33, the Plantation Index advanced 83.32 points to 6,841.69 and the Industrial Products and Services Index inched up 0.85 point to 150.57.

Weekly turnover firmed to 10.32 billion units worth RM7.00 billion compared with 8.33 billion units valued at RM6.6 billion.

Main Market volume expanded to 6.95 billion shares worth RM6.28 billion from 5.38 billion shares worth RM5.99 billion.

Warrants turnover rose to 1.86 billion units worth RM421.67 million from 1.75 billion units worth RM449.52 million.

The ACE Market volume added 1.54 billion shares worth RM297.51 million from 1.17 billion shares worth RM187.90 million last week. – Bernama


Ringgit to trade within tight range next week

KUALA LUMPUR: The ringgit is expected to remain stuck in a tight range as the market seeks more direction from key US economic data expected to be released next week.

Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said a series of important economic indicators in the US will be out, including the second preliminary reading of second quarter 2019 gross domestic product data and the Conference Board Consumer Confidence Index.

“This would determine sentiments towards the upcoming Federal Open Market Committee meeting scheduled on Sept 17 and 18,“ he told Bernama.

Afzanizam said thus far, US economic indicators have been quite mixed, implying uncertainties over a possible cut in the Federal Funds Rate.

This, he said, would result in a strong dollar as the Fed may not be in a hurry to reduce the rates further.

Meanwhile, VM Markets Pte Ltd managing partner Stephen Innes expects the ringgit to trade with a negative bias within the range of 4.18 to 4.20.

“Unless we get a dovish surprise from the Federal Reserve. The prospect of a stronger dollar amid trade war uncertainty has turned views on the ringgit negative.

“The issue is the stronger greenback is playing into a weaker yuan and this is negative for Asia forex and the ringgit,“ he said, adding that the ringgit’s performance would also depend on Fed chair Powell’s policy messaging at the Jackson Hole symposium.

For the week just ended, the local market was mostly lower as investors cautiously awaited the Jackson Hole outcome and developments in the US-China trade war.

The ringgit ended the week weaker at 4.1900/1930 from 4.1760/1810 recorded last Friday.

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

It was down against the Singapore dollar to 3.0213/0237 from 3.0097/0140 and depreciated versus the Japanese yen to 3.9284/9327 from 3.9230/9288

The local unit also edged down vis-to-vis the pound to 5.1147/1201 from 5.0763/0828 and dropped against the euro to 4.6333/6383 from 4.6283/6346. – Bernama


On-off trade tariffs wreak havoc on US company planning

CHICAGO, Aug 24 ― Win Cramer thought his company was out of the firing line in the escalating Sino-US trade war after his “Made-in-China” wireless headphones, speakers and earbuds were taken off Washington's tariff list a year ago. Little did…