SUNGAI PETANI, April 20 — Permodalan Nasional Bhd’s (PNB) flagship event, the Minggu Saham Amanah Malaysia (MSAM), which enters its 20th edition this year, will be officially launched by Prime Minister Tun Dr Mahathir Mohamad tomorrow. The…
KUALA LUMPUR: The ringgit is likely to trade higher next week, ranging from 4.10-4.15 against the US dollar, spurred by improved risk appetite for the local currency amid growing optimism over the recovery in global economic growth, dealers said.
The resumption of Bandar Malaysia project coupled with the anticipation of favourable March inflation data, which would give less pressure to Bank Negara Malaysia to make an adjustment to the interest rate, would lift sentiment for the ringgit, a dealer said.
“This will definitely boost appetite for the ringgit next week especially among foreign fund managers. Plus, given the currency’s recent depreciation, I think a buying spree might take place,” he told Bernama.
On Friday, Prime Minister Tun Dr Mahathir Mohamad announced that the government would reinstate the Bandar Malaysia project, which was abruptly terminated in May 2017. The proposed development in Sungai Besi, Kuala Lumpur, is expected to have a gross development value of RM140 billion.
He said Bandar Malaysia would have a significant impact on Malaysia’s economy and would serve as a global hub to further attract high impact global finance, technology and entrepreneurial firms.
“It will draw major international financial institutions, multinational corporations and Fortune 500 companies to locate their regional headquarters in Bandar Malaysia.
“In addition, tech giants such as Alibaba and Huawei have also manifested interest to establish their ICT (information and communications technology) centres,” he told a news conference on Friday.
Meanwhile, FXTM market analyst Han Tan said the March inflation data, due on Wednesday, would show whether prices had rebounded from the “deflation” recorded in the first two months of the year, whereby a meaningful return to inflationary territory could offset the ringgit’s weakness against the US dollar.
“Overall, we expect Malaysia’s price pressures to remain manageable throughout 2019, allowing domestic consumption to continue driving growth,” he said in a commentary.
Tan said the country’s robust fundamentals would continue supporting the ringgit.
For the week just ended, the ringgit traded mostly lower against the US dollar and hit a near three-month low of 4.1330/1360 against the US dollar on Wednesday following concerns over news that Malaysia might be dropped from the FTSE World Government Bond Index and the Norwegian sovereign wealth fund’s holdings.
The sell-off in the foreign exchange market lasted for two days but the market recovered on Friday as concerns eased.
On a Friday-to-Friday basis, the ringgit fell to 4.1300/1350 against the US dollar from 4.1120/1170 previously.
It also contracted against the Singapore dollar to 3.0473/0514 from 3.0367/0406 previously and versus the Japanese yen to 3.6898/6949 from 3.6744/6798.
However, the ringgit climbed against the British pound to 5.3707/3792 from 5.3760/3842 and strengthened vis-a-vis the euro to 4.6446/6506 from 4.6519/6596 previously. — Bernama
KUALA LUMPUR, April 14 — Malaysia continued to experience net foreign selling for the third consecutive week as investors shifted their asset allocation into safe havens such as bonds and money market. This was due to the bearish scenario in the…
KUALA LUMPUR, April 10 — Bursa Malaysia ended lower for two consecutive days today amid selling in key heavyweights on risk aversion due to external factors. At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) went down 2.48 points to…
KUALA LUMPUR: Bursa Malaysia ended lower for two consecutive days today amid selling in key heavyweights on risk aversion due to external factors.
At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) went down 2.48 points to 1,639.46 from 1,641.94 yesterday, following losses in PetChem, Axiata, Malaysia Airports and Maybank.
The index, which opened 0.11 of-a-point lower at 1,641.83, fluctuated between 1,635.89 and 1,642.13 throughout today’s session.
However, market breadth was positive as gainers outpaced losers by 441 to 371, while 417 counters remained unchanged, 640 untraded and 21 others suspended.
Volume fell to 3.34 billion units worth RM2.36 billion from 3.47 billion units worth RM2.37 billion recorded yesterday.
Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said regional markets were also mostly lower today.
“External factors continued to dominate market sentiments. The latest salvo from US President Donald Trump against Europe in the form of tariff on US$11 billion of imports suggests trade war has yet to be resolved.
“This happens despite constructive discussions between the US and China recently,“ he told Bernama.
Additionally, the downward revision in global growth forecast by the International Monetary Fund (IMF) has also spooked the markets.
The IMF has trimmed global gross domestic product growth in 2019 to 3.3% from previous forecast of 3.5% projected in January this year.
“The ongoing trade friction is obviously the main key risks factors alongside the uncertain fate on Brexit negotiation.
“As such, expect risk aversion to be prevalent in the immediate term,“ Mohd Afzanizam added.
Among the heavyweights, PetChem lost 10 sen to RM9.00, Axiata was down four sen to RM4.15, Malaysia Airports slipped 19 sen to RM6.75 and Maybank eased two sen to RM9.28.
Public Bank rose six sen to RM22.64 and IHH Healthcare added four sen to RM5.60.
Among actives, construction companies, Ekovest went up nine sen to 64.5 sen and Iskandar Waterfront rose 15.5 sen to RM1.01 on possible revival of the Kuala Lumpur-Singapore High Speed Rail project after Prime Minister Tun Dr Mahathir Mohamad yesterday said Malaysia was exploring proposals to reduce the project cost.
Meanwhile, Sapura Energy was unchanged at 34 sen and Karex gained six sen to 53 sen.
The FBM Emas Index declined 5.01 points to 11,635.04, the FBMT 100 was 13.39 points lower at 11,457.14 and the FBM 70 shed 1.31 points to 14,594.21.
Meanwhile, the FBM Emas Syariah Index inched up 0.21 of-a-point to 11,861.09 and the FBM Ace Index rose 20.79 points to 4,802.02.
Sector-wise, the Industrial Products and Services Index declined 0.37 of-a-point to 169.96, the Plantation Index improved 10.66 points to 7,297.00, while the Financial Services Index perked up 12.82 points to 16,860.09.
Main Market volume decreased to 2.55 billion shares worth RM2.18 billion from 2.65 billion shares worth RM2.20 billion yesterday.
Warrants turnover went down to 444.8 million units valued at RM97.7 million compared with 467.8 million units valued at RM99.5 million previously.
Volume on the ACE Market dropped to 344 million shares worth RM82.3 million versus 348 million shares worth RM66.3 million on Tuesday.
Consumer products and services accounted for 327.4 million shares traded on the Main Market, industrial products and services (400.3 million), construction (567.9 million), technology (251.6 million), SPAC (nil), financial services (42.2 million), property (330 million), plantation (69 million), REITs (12.5 million), closed/fund (122,800), energy (423.1 million), healthcare (22.9 million), telecommunications and media (31 million), transportation and logistics (30.7 million), and utilities (40.1 million).
The physical price of gold as at 5pm stood at RM166.44 per gramme, up 75 sen from RM165.69 at 5pm yesterday. — Bernama
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