Bursa Malaysia stays negative at mid-day

KUALA LUMPUR, June 22 ― Bursa Malaysia stayed in negative territory at mid-day today as investors continued to withdraw funds from the equity market, amid the bearish sentiment. At 12.30pm, the key FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 2.45…

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…

Xiaomi lowers target as it kicks off IPO

HONG KONG: Chinese smartphone maker Xiaomi kicked off its initial public offering yesterday but the firm is likely to pull in about US$6.1 billion, far less than originally expected, with investors having mixed views about its main business. Xiaomi had hoped to raise US$10 billion with the Hong Kong IPO, making it the biggest since […]

M&A ‘mega deal’ frenzy evokes 1999 tech boom and bust

LONDON: By some measures, the global merger and acquisition frenzy has never been greater, fuelled by ‘TMT’ mega deals that are drawing comparisons with the late 1990s boom and spectacular bust. This is understandably unnerving many investors, given how mature the economic cycle and equity bull markets are right now. The US economic expansion is […]

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.”

Coal in the crossfire: Chinese traders wary of being burnt by trade war

BEIJING, June 21 — At least three US coal shipments on their way to China may end up casualties of the escalating trade dispute after Beijing said it would impose steep tariffs that may kick in before the ships reach their destinations. The…

South-east Asia stocks: Philippines slumps 2pc, move further into bear territory

SINGAPORE, June 21 — Philippine shares slumped 2 per cent on today and moved further into bear territory on persistent foreign investor selling, largely sparked by a weak peso which hit a 12-year low earlier this week. The Philippine Stock…

Macquarie issues record 1,000 structured warrants in Malaysia


KUALA LUMPUR: Macquarie Capital Securities (Malaysia) Bhd has issued a total of 1,000 structured warrants in Malaysia since its debut in October 2014, with the latest being the issuance of 12 new warrants on Thursday. The global financial services provider said on Thursday that over the past three years, Macquarie has been the leading warrant issuer in Malaysia, driving education, new technology and keeping investors informed via the structured warrants website malaysiawarrants.com.my. Macquarie is committed to providing the highest quality market making. Year to date, Macquarie has commanded the leadingRead More

US crude jumps on stock draw, Brent slips ahead of Opec meet

NEW YORK, June 21 — US crude futures rose nearly 2 per cent yesterday, supported by a drop in domestic inventories, while Brent edged down ahead of an Opec meeting later this week that may result in increased global production. US crude…

Lapses at many levels of bank led to India’s huge PNB fraud — Probe

MUMBAI/NEW DELHI: A US$2 billion fraud at India’s Punjab National Bank (PNB) may have been orchestrated by a few rogue employees, but it escaped detection because of widespread risk-control and monitoring lapses in many areas of the bank, the bank’s own internal probe has found. PNB, India’s second-biggest state-controlled lender, has previously alleged that a […]