KUALA LUMPUR: Kenanga Investment Bank Bhd has maintained its optimistic outlook for the country’s economy in 2018, but views the market as still facing considerable risks, that could weigh on the upward momentum in exports. “We identified several downside risks on exports growth, including an unfavourable high base effect, stronger ringgit, downward oil price movements, […]
PARIS: International Monetary Fund (IMF) chief Christine Lagarde has urged France and other countries to push through reforms ‘while the sun is shining’ on the global economy. In an interview with France’s Le Journal du Dimanche published Sunday Lagarde said the strength of the global economic recovery had taken the IMF by surprise. “In 2017, […]
LONDON, Jan 2 — Factories across the globe warned they are finding it increasingly hard to keep up with demand, potentially forcing them to raise prices as the world economy looks set to enjoy its strongest year since 2011. A slew of…
PETALING JAYA: The ringgit had a good start today after it appreciated to an intraday high of 4.0175 against US dollar, the strongest level since July 2016.
However, profit taking activity sent the local stock market 14.11 points or 0.79% lower to close at 1,782.70 points after a 2.08% jump last Friday. It slumped as much as 24.81 points or 1.4% in early trade.
In line with better economic growth, rising oil prices and a possible rate hike of 25 basis points by Bank Negara this month, the local currency continued with its strength on the first day of 2018 and is just 0.44% shy from the 4.0 psychological level. The first Monetary Policy Committee meeting for the year is scheduled on Jan 25.
Most economists expect the ringgit to reach 3.90 against the greenback at the end of 2018. It appreciated 10.9% in 2017, the biggest gain since 2010.
As at 5pm today, the ringgit strengthened 0.68% to 4.02 to US dollar.
Pacific Mutual Fund Bhd CEO and executive director Teh Chi-cheun said on a broader picture basis, economic growth will remain robust, with growing consumer confidence on the back of rising wages and stable employment.
“Global economic growth projections have been revised upwards in 2017. As at October 2017, the IMF has forecasted global GDP growth in 2017 to be 3.6% compared to their forecast in the beginning of the year of 3.4%.
“2018’s growth is now expected to be 3.7% and in Pacific Mutual’s view, will likely be revised upwards. The world economy today is a bipolar one with the two largest economies in the world, the US and China that are driving growth in their respective regions which results in positive momentum throughout the world.”
Malaysia’s economy grew 5.9% in first nine months of 2017, but is expected to moderate in 2018 due to the high base effect and the moderating external demand.
Meanwhile, political uncertainty remains a big headwind for Malaysian stocks as foreign funds closely monitor the development of the upcoming 14th general election, expected to take place between March and April. Foreign buyers bought RM10.33 billion worth of stocks last year.
The FBM KLCI saw its biggest weekly gain last week since January 2016 at 2.08% closing near 1,800 points, bringing its yearly gain in 2017 to 9.4%.
MIDF Research said although the FBM KLCI lagged its regional peers mainly due to the pre-election effect, the local bourse has a high potential to track gains in its peers as fundamentals of the Malaysian market remains intact. It expects the stock market to hit 1,900 points by year end.
Hengyuan Refining Co Bhd and Petron Malaysia Refining & Marketing Bhd, which were among the top gainers last year, continued to soar today following a slight correction last Friday. Both stocks ended the day 10.18% and 2.66% higher at RM17.96 and RM13.90 respectively.
Meanwhile, the top losers were led by Nestle (Malaysia) Bhd, British American Tobacco (Malaysia) Bhd and Dutch Lady Milk Industries Bhd, which declined 2.04%, 5.15% and 1.94% to RM101.10, RM37.94 and 60.80 respectively.
PARIS, Jan 1 — International Monetary Fund chief Christine Lagarde has urged France and other countries to push through reforms “while the sun is shining” on the global economy. In an interview with France’s Le Journal du Dimanche…
TOKYO: Business confidence among Asian companies rose in October-December to the highest in almost seven years due to robust consumption and global trade, a Thomson Reuters/INSEAD survey showed. The Thomson Reuters/INSEAD Asian Business Sentiment Index, representing the six-month outlook of 94 firms, rose to 78 for the December quarter from 69 three months before. The […]
TOKYO, Dec 20 — Business confidence among Asian companies rose in October-December to the highest in almost seven years due to robust consumption and global trade, a Thomson Reuters/INSEAD survey showed. The Thomson Reuters/INSEAD Asian…
TOKYO: Japanese exports accelerated sharply in November, yet again pointing to growing momentum in the world’s third-biggest economy. There was just one catch: inflation remained stubbornly low and well off the central bank’s 2 per cent target. The combination of steady growth and benign consumer prices mean the Bank of Japan will lag other major […]
NEW YORK, Dec 12 — Wall Street economists are telling investors to brace for the biggest tightening of monetary policy in more than a decade. With the world economy heading into its strongest period since 2011, Citigroup Inc. and JPMorgan…
SEOUL, Dec 7 — Like thousands of South Koreans, Moonsung Bae is infatuated by bitcoin. The 35-year-old financial analyst got his first taste a year ago, before the cryptocurrency exploded into one of the wildest investment stories of our…