brent

 
 

Asian markets mixed ahead of Fed, oil struggles to recover

HONG KONG, Dec 19 — Most markets were mixed in Asia today as investors moved cautiously after the previous day's sell-off, while focus is on a Federal Reserve policy decision with opinions split on whether or not it should hike interest rates…


Ringgit lower against US$ on reduced demand, lower oil price

dollar ringgit

At 9 am (0100 gmt), the ringgit was traded at 4.1770/1810 versus the greenback from Tuesday’s close 4.1750/1800. KUALA LUMPUR: The ringgit was lower against the US dollar early Wednesday on reduced demand for the local note amid weaker oil prices, a dealer said. At 9 am (0100 gmt), the ringgit was traded at 4.1770/1810 versus the greenback from Tuesday’s close 4.1750/1800. The dealer said oil prices continued dropping on concerns over future demand amid weakening global economic growth. “Doubts over the impact of planned production cuts led by theRead More


MIDF: FBM KLCI to rebound to 1,830 by end-2019

KUALA LUMPUR: MIDF Research expects the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) to rebound to 1,830 by end-2019, supported by a recovery in corporate earnings.

Head of strategy and quantitative analytics Syed Muhammed Kifni Syed Kamaruddin said corporate earnings for 2019 are expected to grow by 5.8% as compared with 1.96% anticipated for this year.

“We also foresee that there are opportunities for investors to enter the market now, as the current composite index (CI) level is about 150 basis points lower than what we projected by end of 2019,” he told a market outlook media briefing today.

Syed Muhammed said the market price-earnings ratio valuation is also expected to improve to 16.2% from the current level of 15.8%.

With that, along with no further escalation in trade tensions between the United States and China, he said the 1,830 level target should be achievable.

However, he opined that Bursa Malaysia would be trading range-bound next year with profit-taking and performance-chasing activities taking place.

As for end-2018, he said the CI support level would be at 1,600, but it would trade higher should window dressing activities kick in.

On the ringgit, he foresees the local unit to mildly strengthen to RM4 against the US dollar by end-2019 from the current level of about RM4.18.

“This would be backed by the improvement in both crude oil and crude palm oil (CPO) prices,” he said.

He said benchmark Brent Crude was anticipated to trade higher at US$75 per barrel next year from the current level of about US$60 per barrel, following the Organisation of the Petroleum Exporting Countries agreement on a production cut, with the CPO to average at RM2,200 per tonne from the current RM1,960 per tonne.

“Subsequently, this will lead to the return of foreign funds into our markets, as we have seen outflow amounting to RM11 billion as of last week for this year,” he said.

Last year, the local equity market recorded more than RM10 billion of foreign fund inflow.

Commenting on the outlook for fund flows, head of research Mohd Redza Abdul Rahman said it would still boil down to corporate earnings.

“If the earnings are positive, share prices will follow and entice the foreign investors to come in,” he said, adding that Bursa Malaysia is still defensive compared with regional peers.

“This would help investors find shelter here amid the uncertainty,” he added.

According to MIDF Research’s statistics, the KLCI’s gains slid 6.8% between January and last Friday, while the MSCI Asia Pacific Ex-Japan Index fell 15.4% and the MSCI Emerging Markets Index retreated 16% in the same period.


Oil drops 4pc on oversupply, equities sell-off

LONDON, Dec 18 — Oil prices fell 4  per cent today, dropping for a third consecutive session as reports of swelling inventories and forecasts of record US and Russian output combined with a sharp sell-off in global stock markets. US crude oil…


Bursa extends losses amid US rout; TNB, IHH lead declines

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KUALA LUMPUR: A broad selloff in global equities continued on Tuesday as Wall Street plunged for a second straight session amid evidence of slowing economic growth, sending investors to the sidelines. Rattling hopes of a  December boost to retailers, UK online clothing retailer Asos issued a profit warning overnight, triggering a selldown in US consumer discretionary stocks. At 12.30pm, the FBM KLCI dropped 7.52 points to 1,628.47. Turnover was 1.27 billion shares valued at RM772.82mil. The stock exchange experienced a broad-based selloff with 642 decliners versus 145 gainers and 237Read More


Asia stocks slide as global growth worries deepen

TOKYO, Dec 18 ― Asian share markets slumped today as heightened concerns about a slowing global economy sent Wall Street stocks skidding to their lowest levels in more than a year. MSCI's broadest index of Asia-Pacific shares outside Japan shed…


Headline inflation to ease to 0.3% in November: RAM Ratings

PETALING JAYA: Malaysia’s headline inflation is expected to ease to 0.3% in November from 0.6% in October due to the dissipating low-base effects on retail fuel prices, according to RAM Ratings.

This is attributable to the 4.5% year-on-year fall in the price of the RON 95 petrol in the month under review compared with the increase of 1.1% seen in the preceding month.

As for the full year, inflation rate is expected to average at 1.0% as against the 3.7% seen in 2017 on account of low food inflation and deflationary pressure from the reinstatement of fuel subsidies.

Meanwhile, going into 2019, headline inflation is projected to accelerate to 2.7%, mainly driven by additional pressure from the switch to targeted fuel subsidies, along with the expected continued spillover effects from the reintroduction of the Sales and Service Tax and low-base effects during the three-month zero-Goods and Services Tax period.

In saying this, RAM Ratings head of research, Kristina Fong said the 2019 inflation projection will still depend on the implementation of the targeted fuel-subsidy mechanism in the second quarter of 2019 for which key details such as the exact date and the disbursement mechanism of its implementation are still scant.

Fong added that another key risk to the forecast is the volatility of global crude oil prices, as the pace of inflation in 2019 will largely depend on how effective the OPEC-led supply cuts will impact global crude oil prices.

“Based on our estimates, every US$5 move in the average price of Brent crude will alter headline inflation by approximately 0.3 percentage points in 2019, barring any second-round effects on prices,” she said in a statement.

“We expect Bank Negara Malaysia to maintain the OPR(Overnight Policy Rate) at 3.25% in 2019, given the need to balance between capital outflow pressures and growth support. Although headline inflation is envisaged to accelerate next year, the pace of increase will still be rather nondescript as a trigger point, relative to the downside risks to growth from ongoing fiscal consolidation, volatile capital markets, US-China trade tensions and Brexit uncertainties,” she added


Headline inflation to rise to 2.7pc in 2019, says RAM

KUALA LUMPUR, Dec 17 — Malaysia’s 2019 headline inflation is projected to rise to 2.7 per cent, mainly driven by additional pressure from the switch to targeted fuel subsidies, continued spillover effects from the reintroduction of the Sales and…


RAM Ratings: Headline Inflation to ease to 0.3% in November

PETALING JAYA: Malaysia’s headline inflation is expected to ease to 0.3% in November from 0.6% in October due to the dissipating low-base effects on retail fuel prices, according to RAM Ratings.

This is attributable to the 4.5% year-on-year fall in the price of the RON 95 petrol in the month under review compared with the increase of 1.1% seen in the preceding month.

As for the full year, inflation rate is expected to average at 1.0% as against the 3.7% seen in 2017 on account of low food inflation and deflationary pressure from the reinstatement of fuel subsidies.

Meanwhile, going into 2019, headline inflation is projected to accelerate to 2.7%, mainly driven by additional pressure from the switch to targeted fuel subsidies, along with the expected continued spillover effects from the reintroduction of the Sales and Service Tax and low-base effects during the three-month zero-Goods and Services Tax period.

In saying this, RAM Ratings head of research, Kristina Fong said the 2019 inflation projection will still depend on the implementation of the targeted fuel-subsidy mechanism in the second quarter of 2019 for which key details such as the exact date and the disbursement mechanism of its implementation are still scant.

Fong added that another key risk to the forecast is the volatility of global crude oil prices, as the pace of inflation in 2019 will largely depend on how effective the OPEC-led supply cuts will impact global crude oil prices.

“Based on our estimates, every US$5 move in the average price of Brent crude will alter headline inflation by approximately 0.3 percentage points in 2019, barring any second-round effects on prices,” she said in a statement.

“We expect Bank Negara Malaysia to maintain the OPR(Overnight Policy Rate) at 3.25% in 2019, given the need to balance between capital outflow pressures and growth support. Although headline inflation is envisaged to accelerate next year, the pace of increase will still be rather nondescript as a trigger point, relative to the downside risks to growth from ongoing fiscal consolidation, volatile capital markets, US-China trade tensions and Brexit uncertainties,” she added


Commodities’ drag on 3Q earnings

The third quarter of this year has been a disappointing period for Corporate Malaysia as results came in below expectations and analysts believing that the profit trend would unlikely get better anytime soon. Analysts said the lacklustre corporate third quarter among Bursa Malaysia-listed companies would likely extend into the last three months of the year […]