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Finance, construction remain key drivers for property sector

KUCHING: The financial and construction sectors remain key drivers to Malaysia’s property sector outlook, says Kenanga Investment Bank Bhd (Kenanga Research), as higher business risk profiles should be commensurated by higher return on equities (ROEs). “We view the financial sector as key driver of the property sector as most house purchases are financed by home […]


EU backs bigger war chest for failing banks but split on budget, debt

LUXEMBOURG, June 22 — European Union finance ministers agreed today to double a war chest for dealing with failing banks and boost powers of the euro zone bailout fund, but were split over whether to have a mechanism to restructure government debt…


Forced stock sales haunt China as UBS sees US$68b at risk

HONG KONG, June 22 — Three years after a wave of forced selling by margin traders fuelled a collapse in China’s stock market, a new breed of leveraged shareholders are threatening to trigger another downward spiral. More than 5 trillion yuan…


Asian traders end brutal week cautiously as trade fears simmer

HONG KONG, June 22 — Asian investors ended a tumultuous week on a cautious note today as the prospect of a debilitating global trade war hung over regional markets. As European Union tariffs on key US goods — including jeans, bourbon and…


European shares set for worst week in three months as trade worries bite

LONDON, June 22 — Strong financial stocks and better-than-expected French economic data helped drive a timid relief bounce in European shares at the end of a tumultuous week marred by trade war worries. The pan-European STOXX 600 and its euro zone…


KLCI pares loss as banking stocks advance

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KUALA LUMPUR (June 22): The FBM KLCI pared much of its loss at the midday break today as index-linked banking stocks advanced for the benchmark index to regain some lost ground. At 12.30pm, the FBM KLCI was down 2.45 points to 1,689.87. The index had earlier slipped to its intra-morning low of 1,768.03. Losers led gainers by 288 to 208, while 550 counters traded unchanged. Volume was 944.01 million shares valued at RM829.76 million. The top losers included British American Tobacco (M) Bhd, KESM Industries Bhd, Ayer Holdings Bhd, TenagaRead More


SE Asia stocks most lower on trade woes, Philippines falls over 2pc

NEW YORK, June 22 — Most South East Asian shares traded on a weak note on Friday as investors assess the likely fallout of a global trade spat on corporate earnings, with the Philippines continuing its dismal run with an over 2 per cent fall in…


FBM KLCI slides below 1,700 points to 16-month low

PETALING JAYA: The local stock market's benchmark index slipped below the 1,700-point phychological level today as investors were spooked by continued uncertainy in the trade spat between the US and China.

The FBM KLCI sank as much as 27.86 points or 1.63% to 1,681.89 points, its lowest level since January 2017. At the close of trading, it was down by 17.43 points or 1.02% to 1,692.32 points. A total of 2.13 billion shares were traded valued at RM2.68 billion. Market breadth was negative with losers outpacing gainers by 748 to 199.

The broader market was mainly dragged down by banking and telco stocks. Among the top losers were Hong Leong Bank, Telekom Malaysia, Hong Leong Financial Group and Public Bank, which fell 56 sen, 49 sen, 42 sen and 16 sen to RM17.90, RM3.14, RM17.90 and RM22.62, respectively.

Elsewhere in the region, the China and Hong Kong markets continued to see heavy selling pressure. Hong Kong's Hang Seng Index fell 1.35% and the Shanghai composite index lost 1.37%.

In currencies, the ringgit was also weaker today, depreciating as much as 0.3% to 4.0162 against the US dollar. As at 5pm, it was trading at 4.0150.

Maybank Kim Eng, the investment arm of Maybank Group, said at its Invest Asia UK conference yesterday that Asia's underlying fundamentals remain solid with resilient growth prospects despite headwinds from US-China trade friction and rising US interest rates.

Its CEO Datuk John Chong said investors should look beyond the short-term noise and focus on the region's long-term growth prospects. “While there have been substantial capital outflows as a result of the stronger US dollar, higher interest rates and US-China trade friction, Asia is now better positioned to weather the volatility.”

Chong noted that countries in the region have largely strengthened their current account balances, increased their foreign reserves and kept inflation in check over the past five years.

“Stronger private and infrastructure investments as well as a rising middle class are significant growth thrusts going forward. We believe investors will see real value emerging in Asian corporates after the recent market tantrums and should capitalise on the opportunity.”

For Malaysia, Chong said the government's commitment to adopt fiscal reforms and narrow the fiscal deficit bodes well for the country's economy.

Following the recent market correction, he said the FBM KLCI is now priced attractively at 15.4 times on 12 months forward earnings as of June 19.”This puts it at the lower end of its trading range of 15.4x to 17.3x over the past three years.”


Asia remains resilient amid market headwinds — Maybank Kim Eng

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KUALA LUMPUR (June 21): Asia’s underlying fundamentals remain solid with resilient growth prospects despite headwinds from US-China trade friction and rising US interest rates, according to Maybank Kim Eng. The United States and China are expected to continue driving global growth and investment, which will benefit emerging Asia, the investment banking arm of Maybank Group said at its Invest Asia UK conference in London today, noting rising demand from the world’s two largest economies had supported Asia’s export recovery last year. Asia’s private investment is experiencing a revival this yearRead More


Singapore pledges to cut cash, cheques on path to digital economy

SINGAPORE, June 21 — Singapore is accelerating the shift toward digital payments by pledging to eliminate cheque usage by 2025 and slash cash withdrawals from automated telling machines. Both payment methods are declining in popularity, Education…