KUALA LUMPUR, Oct 23 — Share prices on Bursa Malaysia opened lower and slipped further thereafter this morning as buying sentiment was pressured by unfavourable external developments. At 9.10am, the benchmark FTSE Bursa…
Banks led a broad slide in U.S. stocks Monday as an early rally faded, giving the benchmark S&P 500 index its fourth straight loss. Health care and energy stocks also helped pull the market lower, outweighing gains by technology and consumer-focused stocks. Crude oil prices eked out a small gain after spending most of the day in the red. The latest losses came as traders geared up for a busy week of company earnings reports that should help answer how Corporate America is coping with rising interest rates, inflation andRead More
KUALA LUMPUR: Banks weighed on the FBM KLCI early Tuesday as worries about new taxes, slower economic growth and the US-China trade war tensions pushed investors to the sidelines, with more downside seen. At 9.07am, the FBM KLCI was down 3.63 points or 0.21% to 1,718.84. Turnover was 68.62 million shares valued at RM41.63mil. There were 71 gainers, 112 losers and 130 counters unchanged. Asian shares edged lower as earnings season nerves in the US dented Wall Street, while a cocktail of negative factors from Saudi Arabia’s diplomatic isolation toRead More
PETALING JAYA: The mid-term review of the 11th Malaysia Plan is not enough to excite the equity market in the near term as it provides no material surprises that may spur significant buying interest, according to MIDF Research.
The research house has made no changes to its earnings forecasts as well as target prices of companies under its coverage.
“Furthermore, in so far as the broad market reaction is concerned, the benchmark FBM KLCI (FTSE Bursa Malaysia KLCI) was hovering within a narrow trading band (both before and after the 11MP-MTR reading in Parliament) and ended the day marginally lower by -0.15% to close at 1,738.01 points,” it said in a report on Friday, referring to Thursday's closing.
On Friday, the FBM KLCI closed 0.34% lower at 1,732.14 points.
Additionally, the research house said it expects the short-term market undertone to continue to be dominated by the prevailing vagaries on Wall Street as well as other external developments, particularly the ongoing US-China trade spat.
However, MIDF Research stressed that the mid-term review's objectives of fiscal consolidation while ensuring more inclusive economic growth are of long-term strategic importance to the nation's well-being, particularly on Malaysia's sovereign credit rating and country risk, global investors' confidence and the government's continued ability to provide adequate backstops during economic downturn.
Therefore, it said, over the long term, lessening sovereign and country risks which attract a lower required return would naturally drive market valuation market.
MIDF Research reiterated its FBM KLCI year-end 2018 target at 1,800 points, which equates to PER18 of 16.6 times. It also reiterated its FBM KLCI year-end 2019 target at 1,900 points, which equates to PER19 of 16.7 times, a slight discount to its multi-year (2010-17) mean of 16.8 times.
On a separate note, FXTM research analyst Lukman Otunuga said there will be an extra focus on the nation's macro fundamentals following growth downgrades in the mid-term review and by the World Bank.
He said the ringgit is likely to remain pressured by external risks, including trade disputes, global growth fears and prospects of higher US interest rates.
He added that global sentiment is expected to remain fragile in the week ahead as investors juggle with trade tensions, growth fears, Brexit-related uncertainty and geopolitical tensions.
The ringgit closed at 4.16 to the dollar last Friday.
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KUALA LUMPUR, Oct 19 ― Bursa Malaysia continued lower at mid-morning today, mirroring Wall Street’s fall after the US Federal Reserve showed its commitment to tightening monetary policy. At 11am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI)…