global economic

 
 

Strong exports performance boost Malaysia’s labour market

KUCHING: Strong export performances last year contributed significantly towards strengthening Malaysia’s labour market, analysts believe. With domestic and global economic activities on an upward trend, the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) believe that this positive exports momentum would continue and hence, benefit the local labour market. It anticipated domestic as […]


Equities Weekly: Global equities in the black yet again

Equity markets around the world on aggregate continued to record gains for investors, with the MSCI AC World Index 0.8 per cent higher from the previous week. The developed markets of Europe, Japan and the US climbed higher, with the latter’s S&P 500 Index recording new all-time highs and posting a 1.1 per cent gain […]


Bursa Malaysia to continue upward momentum next week

KUALA LUMPUR: Bursa Malaysia is expected to continue its positive momentum next week, driven by a stronger ringgit, firmer oil price, strong global economic outlook, and better corporate earnings, a dealer said.

Affin Hwang Investment Bank Vice-President/Head of Retail Research Datuk Dr Nazri Khan Adam Khan said the global economic outlook is looking good so far this year, triggered by buying interest among local and foreign investors.

“It has been a good start (for FBM KLCI) this year, with positive outlook on the local and global economy. The local benchmark index has experienced the highest fund inflows in three years, signalling investors' confident towards our market,” he told Bernama.

For next week, he said that the FBM KLCI would likely move between 1,800 and 1,850 points.

“The strong oil prices have so far lent support to our market, of which about 30 per cent of companies in Bursa Malaysia are directly and indirectly involved in the oil and gas industry,” he said.

He said that the benchmark index would also be affected by US President Donald Trump's tax reform plan.

As the week ended, the market was traded mostly higher, benefitting from gains in the Wall Street, as well as positive economic data from China.

However, the European Union's (EU) approval of draft measures to back a ban on the use of palm oil in biofuels from 2021 on Thursday has hurt the plantation and palm oil related counters as the commodity is a major export from Southeast Asia to the EU.

On a Friday-to-Friday comparison, the FBM KLCI performed better, gaining 6.16 points to end the week at 1,828.83.

On the scoreboard, the FBM Emas Index slipped 26.78 points to 13,195.82, the FBMT 100 Index decreased 2.06 points to 12,860.60, the FBM Emas Syariah Index dipped 79.87 points to 13,627.46, the FBM 70 shed 154.79 points to 16,472.37, and the FBM Ace fell 192.66 points to 6,713.12.

On a sectoral basis, the Finance Index surged 26.07 points to 17,236.98, the Plantation Index fell 99.45 points to 8,037.87 and the Industrial Index erased 31.52 points to 3,368.02.

Total turnover slipped to 25.35 billion units valued at RM15.97 billion from 27.14 billion units valued at RM19.11 billion in the previous week.

Main Market volume decreased to 17.14 billion shares worth RM14.73 billion from the previous Friday's 17.88 billion shares worth RM17.59 billion.

Warrants turnover declined to 2.64 billion units worth RM448 million from 3.46 billion units worth at RM479.51 million previously.

The ACE Market narrowed to 5.51 billion shares valued at RM778.77 million against the previous week's 5.74 billion shares valued at RM1.02 billion. — Bernama


Weaker dollar adds to optimism over US earnings

NEW YORK, Jan 20 — The dollar’s drop to three-year lows this week after prolonged weakness in 2017 is expected to further boost profits at big US companies when investor optimism is already high over corporate tax cuts. Investors are keeping…


RAM reaffirms Malaysia’s gA2 rating

KUCHING: RAM Ratings has reaffirmed Malaysia’s respective global, ASEAN and Malaysia domestic-scale sovereign ratings of gA2/stable/gP1, seaAAA/stable/seaP1 and AAA/stable/P1. The ratings reflect the country’s resilient economic growth and the Government’s fiscal consolidation efforts. Malaysia’s external indicators are still supportive of its current ratings, although high government and household debt levels remain concerns. “Malaysia’s economic growth, […]


RAM Ratings reaffirms Malaysia’s global, Asean and domestic ratings

KUALA LUMPUR, Jan 19 — RAM Ratings has reaffirmed Malaysia’s respective global, Asean and domestic-scale sovereign ratings of gA2/stable/gP1, seaAAA/stable/seaP1 and AAA/stable/P1. The ratings reflect the country’s resilient economic…


Global airline shares rose 29% in 2017, says IATA

KUALA LUMPUR (Jan 18): Global airline share prices rose 29% over the course of 2017, with sizeable gains for European and Asia Pacific airlines, according…


Dow breaches 26,000 mark on robust earnings reports

NEW YORK (Jan 16): Wall Street’s main indexes rose sharply on Tuesday, with the Dow hitting the 26,000 mark for the first time, as the…


QE withdrawal unlikely to create asset bubble

PETALING JAYA: Moody’s Investors Service opined that risks from falls in asset prices and any associated economic fallout as and when quantitative easing (QE) is withdrawn are overestimated.

The rating agency said in its report that global asset prices continued to expand slightly in the second half of 2017, mainly driven by advances in equity prices, while sovereign bond prices weakened further but remained significantly above long-term averages.

However, it stressed that even though those asset prices may fall back when QE is withdrawn, that does not imply an “asset bubble”.

“In fact, declines in long-term interest rates have been driven by more than just QE.” Moody’s foresees global financial conditions to remain favourable for bond issuance and credit in 2018 on the back of robust economic growth and broadly stable asset quality and capital levels in the banking sector.

“Global financial market risks remain moderate, with little change in underlying pressures over the past six months. Our assessment remains broadly unchanged in the continued absence of significant macroeconomic, financial, and political shocks,” said Moody’s managing director of credit strategy and the report’s co-author Colin Ellis.

Moody’s said global economic growth strengthened in 2017, and is expected to remain robust over the next two years.

However, the rating agency noted that risks remain and there is uncertainty stemming from geopolitical developments on the Korean peninsula and the Middle East, and the potential for substantial shifts in US economic policy.

Moody’s expects policy rates to peak at lower levels than seen in the pre-crisis period, which is consistent with long-term rates – only partly unwinding past declines. Some of the observed decline in benchmark long-term yields is likely to be permanent.

Meanwhile, it noted that the low corporate bond yield level is partly due to the benchmark rates, while spreads on investment-grade bonds are not unusually low.

“Credit spreads for high-yield bonds are tighter, but – on average – not out of synch with Moody’s ratings for high-yield issuers.”


Quantitative easing unlikely to have created big asset bubbles: Moody’s

PETALING JAYA: Moody’s Investors Service opined that risks from falls in asset prices and any associated economic fallout as and when quantitative easing (QE) is withdrawn are overestimated.

The rating agency said in its report that global asset prices continued to expand slightly in the second half of 2017, mainly driven by advances in equity prices, while sovereign bond prices weakened further but remained significantly above long-term averages.

However, it stressed that even though those asset prices may fall back when QE is withdrawn, that does not imply an “asset bubble”.

“In fact, declines in long-term interest rates have been driven by more than just QE.” Moody’s foresees global financial conditions to remain favourable for bond issuance and credit in 2018 on the back of robust economic growth and broadly stable asset quality and capital levels in the banking sector.

“Global financial market risks remain moderate, with little change in underlying pressures over the past six months. Our assessment remains broadly unchanged in the continued absence of significant macroeconomic, financial, and political shocks,” said Moody’s managing director of credit strategy and the report’s co-author Colin Ellis.

Moody’s said global economic growth strengthened in 2017, and is expected to remain robust over the next two years.

However, the rating agency noted that risks remain and there is uncertainty stemming from geopolitical developments on the Korean peninsula and the Middle East, and the potential for substantial shifts in US economic policy.

Moody’s expects policy rates to peak at lower levels than seen in the pre-crisis period, which is consistent with long-term rates – only partly unwinding past declines. Some of the observed decline in benchmark long-term yields is likely to be permanent.

Meanwhile, it noted that the low corporate bond yield level is partly due to the benchmark rates, while spreads on investment-grade bonds are not unusually low.

“Credit spreads for high-yield bonds are tighter, but – on average – not out of synch with Moody’s ratings for high-yield issuers.”