The logo of Bank Negara Malaysia is seen at its headquarters in Kuala Lumpur March 12, 2019. — Picture by Yusof Mat Isa
Subscribe to our Telegram channel for the latest updates on news you need to know.
KUALA LUMPUR, April 30 — Bank Negara Malaysia (BNM) has appointed Abd Rahman Abu Bakar as assistant governor effective May 1.
In a statement today, BNM said he will oversee the areas of human capital which include strategic human capital, human capital development and human capital services.
“Abd Rahman joined the bank in 1992 and has served various departments in the bank, including Financial Intelligence and Enforcement, Special Investigation, Insurance Regulation, Strategic Planning, Human Resource Management and Economics.
“He holds a bachelor’s degree in economics from the International Islamic University Malaysia,” it said.
Abd Rahman takes over from Mohd Adhari Belal Din, who is leaving the central bank on May 11, 2021, following 14 years of service.
Governor Datuk Nor Shamsiah Mohd Yunus, on behalf of BNM, thanked Adhari for his contributions and said that he has played an instrumental role in driving human capital initiatives for the bank and its affiliates for more than a decade.
“The bank is confident that Abd Rahman will build on the excellent work and HR initiatives that Adhari has put in place,” she said. — Bernama
The German share price index, DAX board, is seen at the stock exchange in Frankfurt January 26, 2018. — Reuters pic
Subscribe to our Telegram channel for the latest updates on news you need to know.
LONDON, April 30 — World stocks held near a record high and the euro was on course for its best month in nine as strong US data and corporate earnings plus the Federal Reserve’s commitment to support the economy fuelled investors’ appetite for risk.
MSCI’s broadest gauge of world stocks covering 50 markets dipped 0.1 per cent but remained close to a record peak touched the previous day, up 5 per cent on the month.
In Europe, euro Stoxx futures were steady and Britain’s FTSE 100 traded up 0.2 per cent.
US stock futures were down 0.3 per cent after the S&P 500 closed at an all-time high.
“The Federal Reserve continues to support, Biden has this huge stimulus programme as well and the earnings season continues — so far we have seen relatively benign as well as strong earnings,” said Eddie Cheng, head of international multi-asset portfolio management at Wells Fargo Asset Management.
Data on Thursday showed US economic growth accelerated in the first quarter, fuelled by massive government aid to households and businesses.
That came against the backdrop of the Federal Reserve’s reassurance on Wednesday that it was not time yet to begin discussing any change in its easy monetary policy.
With just over a half of S&P 500 companies reporting earnings, about 87 per cent beat market expectations, according to Refinitiv, the highest level in recent years.
For both the MSCI world index and the S&P500, analysts are expecting earnings in the next 12 months to recover to above pre-pandemic levels.
Preliminary euro zone GDP data at 0900 GMT, meanwhile, is expected to show a drop of 2 per cent in the first quarter, according to a Reuters poll, which would mean a fall into a technical recession, say Commerzbank analysts.
“However, there is increasingly bright light at the end of the tunnel,” they added.
“The speed of the vaccinations is picking up and the EU recovery fund is also finally getting off the ground.”
France, the euro zone’s second-biggest economy, saw stronger than expected growth in the first quarter, though Q1 GDP in largest economy Germany fell more than expected on a seasonally adjusted basis.
Germany’s 10-year Bund yield, which moves inversely to price, slipped 0.009 per cent to -0.202 per cent.
New coronavirus infections in India surged to a fresh record and France’s health minister said the dangers of the Indian variant must not be underestimated.
“Risky assets have had quite a few wobbles within the month,” said Cheng.
“We need to get used to the fact that this is not going to be a straight line.”
The euro extended its bull run to a two-month high of US$1.2150 (RM4.99) in the previous session and it last stood at US$1.2100, down 0.15 per cent. With 3.2 per cent gains so far this month, the single currency is on course for its biggest monthly rise in nine months.
The dollar was steady against the yen at 108.86. It gained 0.13 per cent against a basket of currencies, after hitting a two-month low on Thursday.
The Canadian dollar hit a three-year high of CUS$1.22680 per US unit, boosted by the Bank of Canada’s tapering of its bond-buying programme and higher commodities including oil and lumber.
In Asia, MSCI’s ex-Japan index lost 0.9 per cent, following a softer-than-expected survey of China’s manufacturing.
Chinese tech giant shares listed in Hong Kong also buckled as Beijing summoned 13 internet platforms to order them to strengthen compliance with regulations, weighing on the Hang Seng index.
Mainland Chinese shares lost 0.8 per cent while Japan’s Nikkei also shed 0.8 per cent on position adjustments ahead of a long weekend. Both markets will be closed through Wednesday.
Oil prices took a breather after hitting six-week highs on strong US economic data, on concerns about wider lockdowns in India and Brazil.
Brent slipped 0.54 per cent to US$68.19 per barrel, after having hit a high of US$68.95 yesterday, while US West Texas Intermediate (WTI) fell 0.78 per cent to US$64.50 per barrel. — Reuters
KUALA LUMPUR, April 30 — Yili recently released its 2020 annual report with total revenue reaching 96.886 billion yuan (RM61 billion) and net profit attributable to the parent company was 7.078 billion yuan, highlighting the company’s healthy growth trend and excellent profitability.
The Q1 2021 report released at the same time showed the company’s total revenue in the first quarter reaching 27.363 billion yuan, a YOY increase of 32.49 per cent, of which the net profit attributable to the parent company was 2.831 billion yuan, a YOY increase of 147.69 per cent.
In terms of products, the Company continued to promote product optimisation, with the sales revenue of key products recording a YOY increase of 9.6 per cent, according to a statement.
In addition, Yili has been continuously exploring new growth points through innovation with its sales revenue for new products accounted for 16 per cent of total sales revenue.
The Company also actively expanded new retail models on e-commerce platforms, with a YOY growth of 55 per cent. Its market share of retail sales for UHT milk on e-commerce platforms was 28.1 per cent during the same period, ranking first in the UHT milk market segment.
The Company has promoted cooperation across the industry chain, continued to invest more in R&D, technology, and innovation, and continuously innovated its product categories and accelerated the layout of health business by relying on a global network connecting Asia, Europe, Oceania and the Americas, and using big data to gain insights of consumers.
In the future, Yili will continue to build a ‘global health ecosystem’, take the lead in promoting sustainable development through the common prosperity of both commercial and social value. — Bernama
KUALA LUMPUR, April 30 — Mah Sing Group Bhd aims to achieve RM1.6 billion property sales this year by focusing the affordable landed housing segment in line with the expected growth in the economy and projected recovery of purchasing power.
The property developer said the target would be achieved through sound fundamentals, innovative marketing strategy and a responsive product range, of which 91 per cent of products priced below RM700,000 included 51 per cent of houses priced RM500,000 and below.
“In February 2021, we continue the momentum by announcing our plan to develop a new 40.46-hectare land in Sepang, comprising mainly affordable landed houses, M Senyum, that have an estimated gross domestic value (GDV) of about RM656 million,” Mah SIng said in its annual report 2020.
On glove manufacturing business, the firm said it expects demand for gloves to remain resilient post-pandemic as a result of more stringent regulations and higher awareness on the importance of hygienic practices, especially in emerging markets where the glove consumption per capita is still low.
“We will be exploring listing of our manufacturing or healthcare division separately to better unlock value for Mah Sing shareholders,” it said.
It said the company is optimistic of the potential long-term growth of the glove industry and seeks to fill up the current demand and supply gap through its production capabilities in both nitrile and latex gloves.
“Besides original brand manufacturer (OBM) gloves under our MS Glove brand, Mah Sing will also be producing original equipment manufacturer (OEM) gloves and the group will explore the possibility of manufacturing non-medical, industrial speciality and other gloves in the mid to long term,” it said.
Acknowledging the importance of developing new and innovative products in sustaining business growth, Mah Sing would also be looking at continually improving its products through investment in research and development (R&D).
It said the company remains committed to R&D to enhance its competitive strength in product and material development, sustainable technologies, engineering and automation.
“We are mindful of the risks inherent in our operations and will keep an eye on the known and anticipated factors, while leveraging our strong cash and bank balances and investment in short-term funds of approximately RM1.16 billion as of Dec 31, 2020.
“This is in addition to the remaining landbank of 840.12 hectares and remaining GDV and unbilled sales totalling about RM24.64 billion, including the new land, M Senyum in Bandar Baru Salak Tinggi, Sepang to capitalise on opportunities beyond the horizon,” it added.
M Senyum is Mah Sing’s first land deal in 2021 and other planned new launches for 2021 include Tower E of M Vertica, Cheras, remaining phases of M Arisa, Sentul, Phase 2 of Cerrado Suites and Tower B Sensory Residences at Southville City, Bangi, Phase 3 of M Aruna and M Panora in Rawang, service apartments in Southbay City, Penang, and double-storey link homes in Meridin East, Johor Baru. — Bernama
A food seller holds a new polymer five-pound note at Whitecross Street Market in London September 13, 2016. — Reuters pic
Subscribe to our Telegram channel for the latest updates on news you need to know.
LONDON, April 30 — The pound slipped against the dollar today and held its ground versus the euro, with traders holding off major bets before the Bank of England’s policy meeting next week.
Sterling was down 0.2 per cent at US$1.3922 (RM5.72), losing ground from a nine-day high hit on Thursday following a slump in the dollar to its lowest in nine weeks after the US Federal Reserve waved off any talk of shifting its monetary policy.
The dollar bounced back slightly against a basket of major currencies and was last up 0.1 per cent — though still heading towards a fourth straight weekly decline.
Versus the euro, it was flat at 86.92 pence per euro, pinned in the narrow range in which it has traded for most of this month.
Most analysts do not expect major changes to the Bank of England’s policy settings next Thursday.
“What is less likely is that they commit to ending the program early,” said Stephen Gallo, European Head of FX Strategy at BMO Capital Markets, referring to quantitative easing (QE).
Other market players also see a low likelihood of any tapering of its QE until the extent of Britain’s economic recovery from the Covid-19 becomes clearer.
“Our base case is that the MPC (monetary policy committee) delays any QE taper to June,” Deutsche Bank analysts wrote. “This should give the committee confidence around the recovery.” — Reuters
People are reflected on an electronic board showing Japan's Nikkei average outside a brokerage at a business district in Tokyo August 14, 2017. — Reuters pic
Subscribe to our Telegram channel for the latest updates on news you need to know.
HONG KONG, April 30 — Asian markets turned lower today as investors struggled to take the lead from a record performance on Wall Street and following below-forecast Chinese factory data.
News that US growth had accelerated more than six per cent in the first quarter and jobless claims continued to fall to new pandemic-era lows reinforced the view that the recovery in the world’s top economy was well on track.
That came after the head of the Federal Reserve had reiterated the bank’s commitment to keeping monetary policy ultra-loose until it is satisfied the economy is strong enough.
In response the S&P 500 hit another record, helped by a string of outsized earnings from tech heavyweights including Apple, Facebook and Google.
But after a broadly upbeat week Asia was unable to build on the positive run, with most markets in negative territory.
Hong Kong led the losses, shedding two per cent, with tech firms including JD.com, Meituan and Tencent taking a hit after China ramped up its crackdown on the sector by summoning 13 companies to call for changes to their fintech operations. Shanghai also fell.
The group was told to heed the case of ecommerce titan Alibaba, which was hit with a record US$2.78 billion fine by regulators for abusing its dominant market position.
Adding to the selling pressure was a report showing slowing growth in China’s factory activity owing to a global shortage of shipping containers, supply chain problems and rising freight rates.
There were also losses in Tokyo, Sydney, Seoul, Mumbai, Jakarta and Manila, though Singapore and Wellington edged up.
Paris rose in the first few minutes of trade after data showed the French economy returned to growth in the first quarter. London and Frankfurt also rose at the open.
“The recovery in Asia remains on track, as it does in the US, but is uneven,” said OANDA’s Stephen Innes. “Covid-19 remains a threat in Asia. Logistical bottlenecks, and semi-conductor shortages, are now a global issue, making their presence felt everywhere.
“That may mollify the pace of global recovery in developed countries but will not derail it. The unintended side effect will be a rise in prices and thus inflation.”
Still, observers remain upbeat about the outlook as vaccinations pick up and lockdowns are eased, while vast sums of government and central bank cash swirl around the economy.
“All evidence still points to continued support from both fiscal and monetary policy against a backdrop of accelerating corporate earnings,” Mark Haefele, at UBS Global Wealth Management, said.
“This reinforces our view that markets can advance further, with cyclical parts of the market—such as financials, energy, and value stocks—likely to benefit most from the global upswing.”
Key figures around 0810 GMT
Tokyo — Nikkei 225: DOWN 0.8 per cent at 28,812.63 (close)
Hong Kong — Hang Seng Index: DOWN 2.0 per cent at 28,724.88 (close)
Shanghai — Composite: DOWN 0.8 per cent at 3,446.86 (close)
London — FTSE 100: UP 0.3 per cent at 6,984.18
Euro/dollar: DOWN at US$1.2101 from US$1.2118 at 2130 GMT
Pound/dollar: DOWN at US$1.3912 from US$1.3940
Euro/pound: UP at 86.98 pence from 86.91 pence
Dollar/yen: DOWN at 108.89 yen from 108.92 yen
West Texas Intermediate: DOWN 0.8 per cent at US$64.52 per barrel
Brent North Sea crude: DOWN 0.5 per cent at US$68.19 per barrel
New York — Dow: UP 0.7 per cent at 34,060.36 (close) — AFP
A general view of the headquarters of Malaysia’s central bank, Bank Negara Malaysia, in Kuala Lumpur, January 29, 2013. — Reuters pic
Subscribe to our Telegram channel for the latest updates on news you need to know.
KUALA LUMPUR, April 30 — The local banking system has ample liquidity in March 2021 amid stable funding conditions, Bank Negara Malaysia (BNM) said.
The central bank said Malaysia’s banking system continued to maintain healthy liquidity buffers, with the liquidity coverage ratio remaining strong last month at 145.1 per cent versus 147.1 per cent in February 2021.
“Banks’ funding profile also remained stable amid sustained strong growth in retail deposits,” it said in its Monthly Highlights report for March 2021 released today.
BNM assured that sound risk management practices by banks would support asset quality in the period ahead.
“Overall gross and net impaired loans ratios were broadly sustained at 1.6 per cent and one per cent, respectively.
“Banks continued to set aside additional provisions against potential credit losses, which currently stand at 1.8 per cent of total banking system loans,” it said.
In terms of net financing for the month under review, BNM said it expanded at 4.5 per cent in March, reflecting the increase in outstanding corporate bond growth, which stood at 5.9 per cent versus 4.5 per cent in February, as well as outstanding loan growth of 3.9 per cent against 3.7 per cent in the previous month.
On outstanding household loan growth, the central bank said it increased to 5.7 per cent last month from 5.1 per cent in February, while higher loan disbursements were recorded for the purchase of cars and residential properties.
For businesses, it said the outstanding loans grew at 1.1 per cent in March versus one per cent in the previous month.
“During the month, higher loan disbursements and repayments were observed across most sectors and purposes,” it said.
According to the central bank, domestic financial markets were affected mainly by external developments in March, particularly the rise in long-term US Treasury yields, which reached its highest level for the year at the end of the month amid higher growth and inflation expectations in the United States (US).
Consequently, it said, the US dollar also strengthened, which led to a broad-based weakening of other advanced and emerging market currencies against the greenback.
“During the month, the ringgit depreciated by 2.6 per cent against the US dollar, while the 10-year Malaysian Government Securities yield increased by 18.3 basis points.
“The benchmark FTSE Bursa Malaysia KLCI declined marginally by 0.3 per cent, as bond yields surged and investor sentiments were affected by lingering uncertainties surrounding the path of the pandemic globally, and expectations for a faster US monetary policy tightening,” it said. — Bernama
KUALA LUMPUR, April 30 — SapuraOMV Upstream (Malaysia) Inc, has agreed to sell its entire interests under SapuraOMV Upstream (PM) Inc in various producing assets located offshore Peninsular Malaysia to Singapore-based Jadestone Energy PLC for US$9 million (RM36 million).
In a statement today, SapuraOMV said the effective date of the transaction was Jan 1, 2021 involving producing assets comprising of PM323, PM329, PM318, and AAKBNLP Production Sharing Contracts (PM assets).
Apart from the US$9 million agreed purchase price, there were also contingent payments of up to US$6 million dependent on certain oil price criteria being met, it added.
SapuraOMV Upstream, headquartered in Kuala Lumpur, is a strategic partnership between Sapura Energy Bhd and OMV Exploration & Production GmbH, a subsidiary of Austria’s OMV Aktiengesellschaft.
SapuraOMV chairman Tan Sri Shahril Shamsuddin said the company placed the assets in the good and capable hands of Jadestone, which specialises in optimising mature oil fields.
As the company embraced the energy transition, the divestment would consolidate SapuraOMV’s position to focus on its discovered resources off the coast of Sarawak and exploration opportunities in Western Australia, he added.
“This is in line with our growth strategy in becoming one of the leading independent operators in this region, with Malaysia remaining our core region as we undertake several major gas development projects and continue to increase our resource base,” said Shahril.
SapuraOMV’s average year-to-date net entitlement production of the PM Assets is around 6,000 barrels oil equivalent per day.
The closing of the transaction will be subjected to regulatory approval from Petroliam Nasional Bhd (Petronas) and preemption rights by the joint-venture partner in the PM Assets such as Petronas Carigali Sdn Bhd.
SapuraOMV is currently producing 37,000 barrels oil equivalent per day from its Malaysia operations. — Bernama
KUALA LUMPUR, April 30 — PT Bank CIMB Niaga Tbk (CIMB Niaga) today reported an unaudited consolidated net profit of 996 billion rupiah (RM283 million) in the first quarter of 2021 (1Q21).
President director Tigor M. Siahaan said CIMB Niaga garnered strong growth in operating income and pre-provisioning operating profit of 8.3 per cent year-on-year (y-o-y) and 16.1 per cent y-o-y respectively in 1Q21, bringing the company to pre-Covid-19 profitability levels and return on equity (ROE) of 10.5 per cent.
“This performance is attributed to higher margins, an increase in fee income and a flat operating cost,” he said in a filing with Bursa Malaysia today.
With total assets of 272.6 trillion rupiah as at March 31, 2021, Tigor said CIMB Niaga maintained its position as Indonesia’s second largest privately owned bank by assets.
Besides, he said, total deposits stood at 200.1 trillion rupiah with the current account savings account (CASA) ratio standing at 63.3 per cent, driven largely by the bank’s continuous commitment to digital enhancement and customer experience.
“We strive to continue providing the best innovation in our comprehensive digital banking ecosystem to strengthen CIMB Niaga’s position as the leading digital bank in Indonesia,” he said.
Tigor also revealed the total loans stood at 173.4 trillion rupiah contributed mainly from 1.6 per cent y-o-y growth in the consumer banking segment.
Mortgages grew by 5.2 per cent y-o-y while auto loans rose by 5.4 per cent y-o-y.
“The growth in the bank’s mortgage segment is a testimony of our continuous efforts to deliver products and services that meet customers’ needs, with prudent and strict oversight imposed on loan disbursements,” he said.
Meanwhile in the shariah banking segment, CIMB Niaga’s Islamic business unit (CIMB Niaga Syariah) maintains its position as the largest Islamic business unit in Indonesia, with total financing valued at 32.4 trillion rupiah and deposits at 29.6 trillion rupiah as at March 31, 2021.
On its outlook, Tigor said the bank believes that 2021 would be a better year in line with the improved economic indicators.
However, it will remain cautious given the recent global resurgence of the Covid-19 pandemic. — Bernama
AirAsia group chief executive officer Tan Sri Tony Fernandes speaks to reporters during a press conference at the KL Hilton in Kuala Lumpur, November 20, 2014. — Picture by Yusof Mat Isa
Subscribe to our Telegram channel for the latest updates on news you need to know.
SEPANG, April 30 — AirAsia Group Bhd’s business-to-business (B2B) e-commerce platform, airasia farm, as well as the Ministry of Agriculture and Food Industries (MAFI) seek to increase farmers’ income by promoting and selling their products.
AirAsia Group chief executive officer Tan Sri Tony Fernandes said the first shipment of Perlis’ Harumanis mangoes via AirAsia flight AK5104 from the Kuala Lumpur International Airport 2 (klia2) today was made possible through the cooperation between MAFI and airasia farm.
“MAFI is passionate and committed to helping the industry. We hope with our platform, farmers can earn and sell more,” he told a press conference here, today.
Fernandes said AirAsia would also promote Harumanis mangoes through its digital assets and physical restaurant, Santan, and promote the product continuously in the Asian region once the border is fully open.
Through the smart partnership with MAFI, along with other relevant authorities, airasia farm was also looking into promoting other fruits such as dragon fruit and pineapple, he added.
In a statement on April 26, airasia farm said as an official distributor of Harumanis mangoes and a platform to connect farmers directly to businesses, its long-term goal is to bring better value to benefit over 2,400 Harumanis farmers across Perlis.
Harumanis is a type of seasonal mango from Perlis which can only be harvested once a year between April and June.
The signature Perlis mangoes can be ordered online through airasia fresh and airasia food in Peninsular Malaysia and through Foodpanda in Sabah. — Bernama
KUALA LUMPUR: Bank Negara Malaysia’s (BNM) official reserves amounted to US$108.62 billion while other foreign currency assets amounted to US$409 million as at March 31.
In a statement today, the central bank said for the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits, which includes scheduled repayment of external borrowings by the government and the maturity of foreign currency Bank Negara Interbank Bills, amounted to US$5.58 billion.
“The short forward positions amounted to US$8.93 billion while long forward positions amounted to US$385 million as at end-March 2021, reflecting the management of ringgit liquidity in the money market.
“In line with the practice adopted since April 2006, the data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans,” it said in a statement, today.
BNM said projected foreign currency inflows amount to US$2.37 billion in the next 12 months.
Furthermore, it said the only contingent short-term net drain on foreign currency assets are government guarantees of foreign currency debt due within one year, amounting to US$389.1 million.
“There are no foreign currency loans with embedded options, no undrawn, unconditional credit lines provided by or to other central banks, international organisations, banks and other financial institutions,” it said, adding BNM also does not engage in foreign currency options vis-Ã -vis ringgit. - Reuters
A vial labelled with the AstraZeneca coronavirus disease vaccine is seen in this illustration picture taken March 19, 2021. — Reuters pic
Subscribe to our Telegram channel for the latest updates on news you need to know.
LONDON, April 30 — British pharmaceuticals giant AstraZeneca reported on Friday US$275 million (RM1.1 billion) in sales from its Covid vaccine in the first three months of the year.
It is the first time that the company discloses figures from sales of one of the world’s leading vaccines.
AstraZeneca’s Covid-19 jab was developed with the University of Oxford and has been key in Britain’s rapid vaccination drive. The company is selling it at cost price.
However, public confidence in the jab has taken a blow over worries of links to very rare blood clots, and the company is in a legal fight with the EU over delivery shortfalls.
The company made the disclosure in an earnings statement showing that net profit doubled in the first quarter to US$1.56 billion, compared with US$780 million a year earlier.
Revenue jumped 15 percent — or 11 percent at constant exchange rates — to US$7.32 billion in the reporting period.
Excluding the contribution from the Covid jab, revenues rose by 11 percent — or 7.0 percent at constant rates — to US$7.045 billion.
AstraZeneca added Thursday that its quarterly performance was boosted by strong sales of new cancer drugs.
The firm cautioned however that the Covid pandemic had a “negative impact” on both the diagnosis and treatment of other conditions aside from Covid.
“We delivered solid progress in the first quarter of 2021 and continued to advance our portfolio of life-changing medicines,” said chief executive Pascal Soriot in the earnings release.
“New medicines contributed over half of revenue and all regions delivered encouraging growth,” Soriot said.
“This performance ensured another quarter of strong revenue and earnings progression, continued profitability, and cash-flow generation, despite the pandemic’s ongoing negative impact on the diagnosis and treatment of many conditions.”
The results come at the end of a turbulent week after the European Union launched legal action against AstraZeneca over Covid-19 vaccine delivery shortfalls that hampered efforts to kickstart inoculations across the bloc.
The EU is suing AstraZeneca on the basis of breaches of an advanced purchase agreement, but the firm has dismissed the legal action “without merit” and stated that it will strongly defend itself in court.
AstraZeneca said it is due to have delivered about 50 million doses to Europe by the end of April, but that is far lower than the amount Brussels insists should have come.
The commission says overall the firm is set to deliver only a third of the 300 million doses it had promised by June.
The EU-AstraZeneca court hearing has been set for May 26, a Belgian court said Wednesday. — AFP
PETALING JAYA, April 30 — Malaysian Resources Corp Bhd (MRCB) has embarked on austerity and cost cutting measures as the group believes the outlook for the economy will remain challenging for the foreseeable future.
Group managing director Mohd Imran Mohamad Salim said MRCB’s immediate priorities remained on enhancing cash flow by monetising its inventory of unsold completed stock and focusing on projects in-hand.
“The group will continue to closely monitor conditions in the broader economy and property market and revise its strategies and financial targets accordingly, including reviewing future launches if conditions dictate,” he said in the company's 2020 Annual Report
Mohd Imran said new launches that were initially planned for 2020 were deferred to 2021 or 2022, redirecting MRCB’s focus on marketing existing completed unsold stock of RM469 million or unsold units still under construction which totalled RM383 million as at Dec 31, 2020.
The dropout rates for sales rose due to the economic toll from the Covid-19 pandemic and the ensuing negative wealth effect, underscored by the limited availability of financing as banks approached credit approval with greater caution, leading to many buyers being unable to secure the margin of financing they required, he noted.
“Sales of our Sentral Suites and TRIA 9 Seputeh residential developments were affected by restricted viewing opportunities.
“The St Regis and Sentral Residences units were also impacted by the closure of borders, preventing viewing by their target demographic of international buyers, mainly from Hong Kong and China,” he said.
On the other hand, MRCB’s 1060 Carnegie development in Melbourne, Australia, completed in December 2019, began to recognise revenue and profits as the purchases of the completed sold units achieved financial settlement.
In 2020, 1060 Carnegie achieved sales of 71 per cent, of which 113 units out of the 173 units available for sale were financially settled.
“While this development contributed significantly to our performance, the speed of reaching financial settlement for the units sold was affected by multiple lengthy lockdowns in Victoria, Australia in the second half of the year,” said Mohd Imran.
Meanwhile, the complete halt of activities at MRCB’s construction sites during the movement control order and the slower pace of the resumption of work due to the strict movement standard operating procedures had considerably impacted construction progress in its engineering, construction and environment division.
Mohd Imran said the completion of the Damansara-Shah Alam Elevated Expressway (DASH) and Sungai Besi-Ulu Kelang Elevated Expressway (SUKE) projects have been deferred to the second quarter (Q2) of 2021 from the original target in Q2 2020.
Meanwhile, construction of the Mass Rapid Transit 2 (MRT2) package awarded to MRCB and the 37km Light Rail Transit 3 (LRT3) line awarded to its 50 per cent-owned joint venture company, MRCB George Kent Sdn Bhd, are on track to reach completion in 2021 and 2024 respectively.
As of end-December 2020, DASH and SUKE reached 88 per cent and 51 per cent completion, while the MRT2 package and LRT3 projects were 81 per cent and 46 per cent complete, respectively. — Bernama
Subscribe to our Telegram channel for the latest updates on news you need to know.
KUALA LUMPUR, April 30 — Pos Malaysia Bhd is focusing on continuing the good momentum seen in the third quarter of financial year 2020 (Q3 FY20).
Chief executive officer Syed Md Najib Syed Md Noor said at its peak in April 2020, the postal delivery firm recorded 13 million parcels, the highest volume ever accepted in history.
“We had close to 1,400 crowdsourced riders to support our 3,000 courier delivery personnel, including headquarter employees and postmen who also assisted in parcel deliveries,” he said in the Pos Malaysia Annual Report 2020.
Syed Md Najib said the rise of online shopping increased demand for courier services and significantly boosted Pos Malaysa’s revenues in Q2 and Q3 FY20.
“After the first wave of the pandemic came under control and businesses reopened, segments that were initially impacted by the movement control order (MCO) saw an immediate recovery.
“The mail tariff increase that took place on Feb 1, 2020 also provided a significant lift to our top line figures, amounting to an additional RM150 million in revenue for FY20,” he said.
Pos Malaysia also registered two months of operational profitability in June and July last year.
In addition, courier operations are back to normal, allowing Pos Malaysia to win back lost market share in the e-commerce segment.
“We will continue to scale up our parcel delivery network and further leverage automation.
“We aim to accelerate our digitalisation of retail services, while we rationalise our postal touchpoints and processing centres, transforming our Information and communications technology infrastructure and applications,” he added.
Meanwhile, Pos Aviation will continue to be prudent in managing costs, while Pos Logistics will proceed with its transformation initiatives by scaling down haulage operations, growing automotive logistics while improving its service quality and reliability.
“Our logistics segment should benefit from the government’s extension of the sales tax exemption on cars until June 2021,” he noted. — Bernama
A general view of traffic at the Jalan Duta Toll Plaza on the first day of the recovery movement control order June 10, 2020. — Picture by Yusof Mat Isa
Subscribe to our Telegram channel for the latest updates on news you need to know.
UALA LUMPUR, April 30 — Toll operators’ shares on Bursa Malaysia, including Gamuda Bhd and Ekovest Bhd, took a hit in the early session today, as the government announced the postponement of the toll hike involving several major highways this year.
As at 11.39am, Gamuda’s shares shed 2.0 sen to 2.5 sen with 81,100 shares transacted while Ekovest was flat at 45.5 sen with 14.69 million shares changing hands.
On Friday, Works Minister Datuk Seri Fadillah Yusof said the government had decided to postpone the toll hike for several highways, namely Kesas Highway, South Klang Valley Expressway, East Coast Highway 2, North-South Highway, Duta-Ulu Kelang Expressway (Duke), Damansara-Puchong Highway (LDP) and KL-Putrajaya Highway (MEX).
Gamuda owns a 44 per cent stake in Lingkaran Trans Kota Holdings Bhd (Litrak Holdings), the operator of LDP highway while Ekovest operates the DUKE highway.
Fadillah said the postponement of the toll hike to 2022 will cost the government RM2.25 billion.
He said the decision was made to ease the burden of the people due to the rise in the cost of living, adding that the government has agreed to the restructuring of toll rates to be finalised before 2023. — Bernama
SINGAPORE: Oil prices slipped on Friday, taking a breather after touching their highest in six weeks as concerns of wider lockdowns in India and Brazil to curb the COVID-19 pandemic offset a bullish outlook on summer fuel demand and economic recovery.
Brent crude fell 29 cents, or 0.4%, to $68.27 a barrel by 0420 GMT, the last day's trading for the front-month June contract. U.S. West Texas Intermediate crude for June was at $64.66 a barrel, down 35 cents, or 0.5%.
“The post-COVID-19 demand recovery is still uneven and the surge in Indian cases serves as a timely reminder that any rally to $70 is too premature,“ Energy Aspects analysts said in a note.
Such a level is likely to be reached only in the third quarter this year, when demand improves materially and destocking ends, they said.
Brent is on track to gain roughly 8% in April while WTI could see gains of nearly 10%.
The increases will be the fifth monthly gains in six months as global demand has almost returned to pre-pandemic levels on the back of fiscal stimulus and the easing of virus lockdowns in some countries, while production cuts from OPEC and their allies including Russia eased crude oil oversupply.
Wider adoption of COVID-19 vaccinations is also restoring confidence in travel, lifting oil demand.
Several U.S. cities are emerging from lockdown stoking confidence of stronger demand in gasoline ahead of the key U.S. summer driving season, ANZ analysts said, while UK road fuel sales are nearing last summer's levels.
The upcoming Labour Day holiday in China would also boost fuel demand at the world's second largest oil consumer.
“This renewed optimism is overshadowing headwinds in India, where a second wave of infections of COVID-19 are resulting in new travel restrictions being put in place,“ ANZ said in a note.
The world's second most populous nation is in deep crisis, with hospitals and morgues overwhelmed, as the number of COVID-19 cases topped 18 million on Thursday.
On Friday, a private sector survey showed that Japan's factory activity expanded in April at the fastest pace since early 2018 on a global demand recovery though new coronavirus curbs cast a shadow over the overall economic outlook.
China's factory activity growth, however, slowed more than expected, official data showed. - Reuters
PETALING JAYA: As one of the leading countries in artificial intelligence (AI) for healthcare, Taiwan is putting more efforts in producing advanced healthcare innovations based on high technology and AI.
Five Taiwan Excellence-awarded companies demonstrated their innovative solutions during the Taiwan Excellence Smart Medical Webinar: Digital Health Solutions on Wednesday.
In his opening remarks, International Medical Informatics Association president Dr Yu-Chuan Jack Li said the digital health development in Taiwan has electronic health records that are interlinking to all the hospitals, clinics and centres for disease control and prevention.
“So that is quite clear that a fully digitalised healthcare system can really help people to fight diseases. We do need a lot of telemedicine and AI in order to handle the future of human health needs,” he said during the webinar.
The webinar featured Leltek Inc, a specialist in ultrasound medical imaging system miniaturisation. The LeSono LU700 series is the first Taiwan design and manufactured ultra-portable ultrasound. Its aim is to provide an affordable and quality ultrasonic product that could be used at anywhere and anytime without boundary.
Another company featured is Wincomm Corp, one of the leading manufacturers of medical and industrial computer in Taiwan. It focuses on implementing AI in medical equipment, researching and developing medical grade touch control computers with high computing capabilities. Its products are suitable for various medical environments and clinical applications.
Acer Healthcare, an expert in the AI and big data technology created an AI assisted diagnostic software for diabetic retinopathy (DR) - VeriSee DR. VeriSee DR can assists doctors to make diagnosis of DR from diabetic patients’ images and able to provides immediate results on referral recommendation. It is able to analyse image taken automatically and its output has accuracy of 93% that is comparable to ophthalmology.
Medimaging Integrated Solution Inc focuses on telemedicine, elderly care, eye and optic applications and other markets. Its MPD 100- Wound Care Assistant, one of the products that was introduced during the webinar is the first device that has embedded three different cameras in a medical PDA. This could help the doctors and nurses to have a better recognition for the patients’ tissues.
Lastly, Apollo Medical Optics is one of the first-time winners of Taiwan Excellence Awards. It develop optical imaging devices based on Optical Coherence Tomography (OCT). To improve the quality and efficiency of skin diagnosis, it created the ApolloVue S100 imaging system to provide real-time cellular level resolution OCT images to assist physicians in initial diagnoses.
The logos of OCBC, Bank Muamalat and CIMB are seen in Kuala Lumpur November 3, 2020. — Picture by Hari Anggara
Subscribe to our Telegram channel for the latest updates on news you need to know.
KUALA LUMPUR, April 30 — Analysts are mixed on CIMB Group Holdings Bhd’s outlook despite its 92.5 per cent-owned Indonesian banking unit, PT Bank CIMB Niaga Tbk (Niaga) reported a robust financial results in the first quarter ended March 31, 2021 (Q1 FY21).
AmBank Research has maintained a “buy” recommendation on CIMB Group with an unchanged fair value of RM5.50 per share based on FY22 return on equity (ROE) of 9.0 per cent, leading to a price-to-book value ratio 0.9 times.
“The strong Niaga’s earnings in 1QFY21 led to an ROE of 10.5 per cent.
“With the number of Covid-19 cases in Indonesia has been on a declining trend, this, coupled with the optimism on the country’s vaccination programme, are likely to improve consumer and business sentiment leading to an economic recovery in Indonesia,” analyst Kelvin Ong said in a note today.
According to AmBank Research, Niaga reported a stronger-than-expected Q1 FY21 net profit of IDR996 billion, surging 573 per cent quarter-on-quarter (q-o-q), attributable to higher operating income from stronger net interest income (NII) and non-interest income (NOII).
On a year-on-year (y-o-y) basis, Niaga’s net profit in Q1 FY21 slipped 5.6 per cent due to higher provisions, it said.
Meanwhile, Public Investment Bank Bhd has retained its “neutral” call on CIMB Group with a target price (TP) of RM4.50.
“We remain optimistic over the group’s longer-term prospects, underpinned by its Forward23+(F23+) initiatives, and are encouraged by this turnaround in the Indonesian operations,” analyst Ching Weng Jin said.
Kenanga Research, however, has maintained its “underperform” call on CIMB Group with an unchanged TP of RM3.50.
Analyst Clement Chua said while the group is expected to register an earnings per share growth of 176 per cent in FY21 estimate, the research house believes that is already priced in, given the impairment shock in Q4 FY20.
“Overall, we are less excited on CIMB Group compared to its outperforming peers, possibly from its less favourable regional exposures, it houses a gross impaired loan ratio of 3.0 per cent, whereas its larger-capitalisation peers come in at less than 3.0 per cent,” Chua said.
At 10.58am, CIMB’s share eased two sen to RM4.17 with 1.47 million shares changing hands. — Bernama
BEIJING: China's factory activity expanded at a slower pace and missed forecasts in April as supply bottlenecks and rising costs weighed on production and overseas demand lost momentum.
The official manufacturing Purchasing Manager's Index (PMI) fell to 51.1 in April from 51.9 in March, data from the national Bureau of Statistics (NBS) showed on Friday.
It remained above the 50-point mark that separates growth from contraction on a monthly basis but was below the 51.7 expected in a Reuters poll of analysts.
“Some surveyed companies report that problems such as chip shortages, problems in international logistics, a shortage of containers, and rising freight rates are still severe,“ NBS statistician Zhao Qinghe said in a statement accompanying the official PMI.
That contrasted with a private-sector survey, also released on Friday, which showed factory activity in April expanded at the fastest pace in four months although businesses in that release also reported a sharp surge in input costs.
China's economic recovery quickened sharply in the first quarter of the year with record growth of 18.3%, shaking off the hit from last year's COVID-19-induced slump. Analysts now expect the world's second-largest economy to grow 8.6% in 2021.
The robust economic recovery has outpaced rebounds seen in manufacturing competitors such as India, which are still struggling to contain new waves of coronavirus outbreaks.
“We expect that an export demand recovery will help factory orders and that the May holiday will help the services sector,“ said Iris Pang, chief economist for Greater China at ING, in a note, referring to China’s labour day vacation due to start on Saturday.
Overseas demand should also pick up as COVID-19 is brought under control in major markets like the United States and Europe, she said, but chip shortages could continue for several quarters and push up prices of electronic goods.
The official PMI, which largely focuses on big and state-owned firms, showed businesses again laid off workers in April after increasing hiring the month before for the first time in nearly a year. A sub index for employment slipped to 49.6 from 50.1 in March.
A gauge for new export orders stood at 50.4 in April, slipping from 51.2 a month earlier.
Riding the broader economic recovery, surging demand for raw materials fuelled Chinese industrial firms' robust profit growth in March as profits upstream outperformed those in downstream sectors.
A sub-index for raw material costs in the official PMI stood at 66.9 in April, easing from March's 69.4 but maintaining a rapid clip.
In the services sector, activity expanded for the 14th straight month, but at a slower pace, dragged down by a sub-index for construction activity. - Reuters
A teller counts RM50 notes in George Town November 27, 2019. ― Picture by Sayuti Zainudin
Subscribe to our Telegram channel for the latest updates on news you need to know.
KUALA LUMPUR, April 30 — The ringgit opened firmer against the US dollar today on renewed buying interest, tracking the steadier oil prices, said an analyst.
At 9am, the local currency stood at 4.0985/1015 against the greenback from Wednesday’s close of 4.1000/1050.
Markets were closed on Thursday for Nuzul al-Quran public holiday.
On Thursday, benchmark Brent crude rose 1.61 per cent to US$68.41 — a six-week high as the US economy’s brighter outlook and oil demand offset bearish demand prospects from the Covid crisis in India.
Locally, the analyst also said Malaysia's positive trade performance data for March 2021, coupled with the resumption of economic activities and global stimulus spending helped lift the sentiments for the local currency.
Malaysia’s trade performance continued to be on an upward trajectory in March, registering the highest monthly value for trade, exports and imports, with total trade expanding by 25.6 per cent year-on-year to RM185.74 billion.
Meanwhile, the United States (US) Federal Open Market Committee (FOMC) has decided to maintain its policy interest rate near zero following its meeting on Wednesday.
Oanda's market analyst Kenny Fisher noted that when US Federal Reserve’s chair Jerome Powell remarked that it was too early to talk about the tapering interest rate, the US Treasury yield started to decline, consequently dragging the US dollar lower.
"However, the positive US gross domestic product report has resulted in gains for the US dollar, and the greenback could continue to improve if upcoming US data is positive," he said in Oanda’s Market Pulse note today.
Meanwhile, the ringgit was traded mostly lower against other major currencies.
It appreciated against Singapore dollar to 3.0902/0927 from 3.0911/0955 on Wednesday and rose versus the Japanese yen to 3.7635/7673 against 3.7646/7695 previously.
The local note narrowed versus the euro to 4.9678/9731 from 4.9467/9539, and eased against the British pound to 5.7182/7232 from 5.6941/7018 previously. — Bernama
Malaysia’s total trade amounted to RM1.777 trillion in 2020, with imports totalled RM796.19 billion and exports valued at RM980.99 billion. — Picture by Miera Zulyana
Subscribe to our Telegram channel for the latest updates on news you need to know.
KUALA LUMPUR, April 30 — Malaysia’s import and exports are expected to grow by 13 per cent and 15 per cent, respectively, in 2021 with an upside exports growth momentum, said AmBank Research.
Malaysia’s total trade amounted to RM1.777 trillion in 2020, with imports totalled RM796.19 billion and exports valued at RM980.99 billion.
In a research note today, AmBank chief economist/head of research Anthony Dass said a low base, improved global economic and trade activities, a semiconductor upcycle, and firm commodity prices were the main drivers of exports in March 2021.
“A further upside to exports will be influenced by the progression of global vaccination rollouts and the spate of reopening of global borders. Also, our well diversified export base and strong trade linkages helped sustain gains in trade despite lingering uncertainties,” he added.
However, the downside risks could come from new Covid-19 variants, delays or less effective vaccines and geopolitical tensions that could slow the global recovery, he added.
In March, exports surged 31 per cent year-on-year to RM104.95 billion in March, the strongest expansion in nearly four years. It not only extended the double-digit growth of 17.6 per cent in February, but also surpassed the RM100 billion mark, a level not seen since July 2017.
Meanwhile, imports also grew at the highest rate since October 2017, up 19.2 per cent year-on-year to RM80.79 billion, while trade surplus widened to RM24.2 billion, the highest since July 2020, registering a double-digit growth of 96.1 per cent year-on-year.
For the first quarter of 2021, total trade expanded 14.8 per cent year-on-year to RM505.65 billion, with exports increasing 18.2 per cent year-on-year to RM282.14 billion, while imports rising 10.8 per cent year-on-year to RM223.51 billion. — Bernama
An investor monitors the stock prices in the gallery of the RHB Investment Bank Bhd headquarters in Kuala Lumpur March 17, 2020. ― Picture by Hari Anggara
Subscribe to our Telegram channel for the latest updates on news you need to know.
KUALA LUMPUR, April 30 — Bursa Malaysia opened higher but retreated thereafter, as earlier gains were snapped by mild profit-taking in plantation and technology counters amid mixed performance on the regional markets, dealers said.
At 9.30am, the FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 5.49 points to 1,603.01 compared to 1,608.50 at Wednesday's close.
The market bellwether opened 6.71 points higher at 1,615.21.
Overall market breadth was negative with losers leading gainers 344 to 315, while 398 counters were unchanged, 1,134 untraded and 51 others suspended.
Total volume stood at 1.26 billion shares worth RM704.64 million.
Malacca Securities, in a research note, expects glove heavyweights to resume their rebound move over the near term, given the rising COVID-19 infections globally.
“We opine that steel or metal-related stocks may remain attractive over the near term amid a global spike in steel demand. Besides, we believe there is still some room for trading on plastic and packaging counters ahead of the release of the latest quarterly results.
“Market players might also be looking into oil and gas (O&G) stocks amid firmer crude oil prices. Commodity-wise, the crude palm oil (CPO) price staged a pullback after recent rallies, while oil price climbed above US$68 per barrel,” it said.
Among heavyweights, Maybank, Public Bank and TNB fell one sen each to RM8.24, RM4.16 and RM9.99, respectively, while Petronas Chemicals rose 16 sen to RM8.27 and IHH Healthcare gained one sen to RM5.40.
Among the active counters, Vortex Consolidated earned half-a-sen to 14.5 sen, Hiap Teck added three sen to 59.5 sen, while SC Estate eased half-a-sen to 11.5 sen and Focus Dynamics was flat at 13 sen.
Kuala Lumpur Kepong and Malaysian Pacific were among the top losers in the early session today, declining 64 sen and 36 sen to RM22.16 and RM39.30, respectively.
On the index board, the FBM Emas Index shed 25.31 points to 11,815.50, the FBMT 100 decreased 29.20 points to 11,469.83, the FBM 70 was 0.90 of-a-point lower at 15,641.30, the FBM Emas Shariah fell 16.17 points to 13,289.25, while the FBM ACE was 0.75 of-a-point better at 8,865.75.
Sector-wise, the Plantation Index erased 66.65 points to 6,849.27, the Financial Services Index reduced 63.96 points to 14,902.52, while the Industrial Products and Services Index edged up 1.45 point to 200.17. — Bernama
China's manufacturing Purchasing Manager’s Index fell to 51.1 in April from 51.9 in March. — Reuters pic
Subscribe to our Telegram channel for the latest updates on news you need to know.
BEIJING, April 30 — China’s factory activity expanded at a slower-than-expected pace in April as supply and transport bottlenecks weighed on production and overseas demand lost momentum.
The official manufacturing Purchasing Manager’s Index (PMI) fell to 51.1 in April from 51.9 in March, data from the national Bureau of Statistics (NBS) showed on Friday.
It remained above the 50-point mark that separates growth from contraction on a monthly basis but was below the 51.7 in a Reuters poll of analysts.
“Some surveyed companies report that problems such as chip shortages, problems in international logistics, a shortage of containers, and rising freight rates are still severe,” NBS statistician Zhao Qinghe said.
China’s economic recovery quickened sharply in the first quarter with record growth of 18.3 per cent, shaking off last year’s Covid-19-induced slump. Analysts now expect the world’s second-largest economy to grow 8.6 per cent in 2021.
The robust economic recovery has outpaced rebounds seen in manufacturing competitors such as India, which are still struggling to contain new waves of coronavirus outbreaks.
The official PMI, which largely focuses on big and state-owned firms, showed businesses again laid off workers in April after increasing hiring the month before for the first time in nearly a year. A sub index for employment slipped to 49.6 from 50.1 in March.
A gauge for new export orders stood at 50.4 in April, slipping from 51.2 a month earlier but remaining in expansionary territory. A sub-index for the activity of small firms stood at 50.8 in April, up from March’s 50.4.
Riding the solid economic recovery, surging demand for raw material fuelled Chinese industrial firms’ robust profit growth in March as profits upstream outperformed those in downstream sectors.
A sub-index for raw material costs in the official PMI stood at 66.9 in April, easing from March’s 69.4 but remaining elevated.
In the services sector, activity expanded for the 14th straight month, but at a slower clip. — Reuters
PETALING JAYA: The value of major investment transactions in Malaysia in the first quarter amounted to RM1.46 billion, a 53% year-on-year (y-o-y) increase, according to Savills Asia Pacific – Q1 2021 Investment Quarterly.
It said the first quarter’s overall transaction value was led by the industrial sector, accounting for 48% of the total, followed by commercial transactions at 22%.
The largest acquisition in the quarter was by Hartalega Holdings, which acquired 250 acres of industrial land in the Kota Perdana Special Border Economic Zone, Kedah, for RM228.7 million. Hartalega intends to invest RM7 billion to build 16 glove factories in Malaysia’s northern region over the next 20 years.
Within Greater Kuala Lumpur, the largest transaction was UEM Land Bhd’s purchase of 9.3 acres of factory land and the buildings on it from Dutch Lady Milk Industries Sdn Bhd in Section 13, Petaling Jaya, for RM200 million with plans to build a RM1.3 billion mixed-use development. This area, specially earmarked for redevelopment into a mixed-use hub as part of urban renewal efforts, has proven to be a popular draw, as this deal was preceded by the sale of the neighbouring former Kickapoo factory, which set new pricing benchmarks in the area, just a few months ago.
Axis REIT entered into an agreement to acquire 7.5 acres of industrial land and buildings from FIW Steel Sdn Bhd for RM120 million. The land is in Bukit Raja, an established industrial location in Shah Alam due to its proximity to Klang Port, coupled with good accessibility and infrastructure. Axis has also acquired two leasehold industrial sites totalling 16.2 acres in Johor for RM75 million, as the fund continues to build on its status as the leading player in Malaysia’s rapidly expanding industrial and logistics sector.
In Kuala Lumpur itself, the most significant transaction was Hex Sdn Bhd’s acquisition of two parcels of leasehold development land measuring 55.5 acres from Medan Prestasi Sdn Bhd, a wholly owned subsidiary of MK Land Group, for RM108.8 million. The disposal of the land will serve to improve MK Land Group’s asset utility, overall financial position, and overall financial liquidity, objectives the company has been focusing on recently by seeking to dispose of some assets.
The logo of BP is on display at a petrol station in Moscow July 4, 2016. — Reuters pic
Subscribe to our Telegram channel for the latest updates on news you need to know.
LONDON, April 29 — Europe’s major energy companies profited from a rise in oil prices to report big increases in first-quarter earnings today, putting the worst of the pandemic era slump in fuel demand behind them.
Last year’s demand collapse forced BP, Royal Dutch Shell and Equinor to slash their dividends and preserve cash as they to try to transform themselves into companies that can thrive in a low-carbon world.
With benchmark oil prices recovering from an April 2020 low of US$16 (RM65) a barrel to about US$67 a barrel this month, most of the companies managed to drive profits back above levels seen before the coronavirus pandemic first struck.
BP’s first-quarter headline profit figure of US$2.6 billion exceeded its first-quarter profit of US$2.4 billion in 2019 and was more than 200 per cent higher than in 2020.
France’s Total reported headline profits of US$3 billion in the first three months of 2021, up 69 per cent from last year and 9 per cent above the first quarter of 2019.
Norway’s Equinor, meanwhile, came in with a first-quarter profit of US$5.5 billion today, also exceeding its pre-pandemic profit of US$4.2 billion.
Shell’s first-quarter profit climbed 13 per cent from last year to US$3.2 billion though that was still below 2019’s US$5.3 billion.
But despite recovering profits, payouts were still below pre-pandemic levels with the exception of Total, which had kept its dividend steady throughout the pandemic.
While Shell has increased its dividend twice in the past six months, the 17.35 cents it paid per share in the first quarter was below the 47 cents it paid out before the pandemic.
Equinor also raised its payout to 15 cents per share, but again this was short of 2019’s 26 cents per share.
“The suggestion is that capital is being preserved to allow for an acceleration of new energy investment,” Citi said.
BP’s 3.8 pence per share first-quarter dividend was about half of what it paid in 2019. However, it is starting share buybacks which analysts expect to increase in the third quarter.
“BP should be able to buy back at least US$10 billion between 2021 and 2025,” said analysts at Jefferies.
Spain’s Repsol reported a 5.4 per cent rise in first-quarter adjusted net profit to €471 million (RM2.3 billion), though this was 24 per cent below earnings in the first three months of 2019.
It cut its 2021 and 2022 cash payouts to €0.60 from €1 per share, but said share buybacks could push returns above €1 per share by 2025. — Reuters
A photo illustration of a man silhouetted against a Nokia logo in the central Bosnian town of Zenica January 23, 2014. — Reuters pic
Subscribe to our Telegram channel for the latest updates on news you need to know.
HELSINKI, April 29 — Finnish telecoms giant Nokia said today that it returned to profit in the first quarter, boosted by stronger-than-expected demand for 5G products, but it kept its cautious outlook for 2021.
The networks giant booked a net profit of €261 million (RM1.2 billion) between January and March after a loss of €117 million a year earlier.
Revenues were up 3.3 per cent at €5.08 billion, outpacing analysts’ expectations for first-quarter sales of around €4.7 billion.
“We have delivered a robust start to the start of the year with strong net sales, operating margin and cash flow,” said chief executive Pekka Lundmark.
“I was particularly pleased by strong sales growth across our Network Infrastructure business group driven by increasing demand for next generation connectivity,” he said.
The world’s third-biggest 5G networks supplier, Nokia is struggling to keep up with rivals Ericsson of Sweden and China’s Huawei.
Nokia lost out on a major Verizon contract in the US last year to Samsung which will impact the outlook into 2022.
Nokia’s share price soared by 13 per cent to 4.07 euros in midday trading on the Helsinki stock exchange.
The strong first quarter “gives Nokia more strength to invest in catching up with their competitors”, Mikael Rautanen of analyst firm Inderes told AFP.
In March, Lundmark announced the company will slash up to 10,000 jobs — equivalent to 11 per cent of its workforce — in a major cost-cutting drive, with the savings to be funnelled into research and development.
On the basis of its first-quarter performance, Nokia said it was maintaining its full-year sales forecast of €20.6-€21.8 billion and expected to meet the “higher end” of its seven to 10 per cent operating margin target.
“Management has most likely been downplaying expectations on purpose because they need positive momentum from investors and capital markets after so many previous disappointments,” Rautanen said. — AFP
A medical worker receives a dose of the coronavirus disease vaccine as the country launches its inoculation campaign, in Tokyo February 17, 2021. — Reuters pic
Subscribe to our Telegram channel for the latest updates on news you need to know.
TOKYO, April 29 — Japanese business leaders and a Nobel-prizewinning biologist called upon the government to reform its vaccination programme, including allowing drive-through inoculations, as the nation struggles to contain a resurgence of the Covid-19 pandemic.
Japan has secured the largest quantity of Covid-19 vaccines in Asia, as it gears up for the summer Olympics. But it has inoculated only 1.6 per cent of its population so far, the slowest among wealthy countries.
Government data yesterday showed that Japan has only used about a fifth of the coronavirus vaccine doses it has imported so far, underscoring logistical hurdles such as a shortage of medical staff.
Twenty-four business leaders, including e-commerce group Rakuten’s CEO Hiroshi Mikitani, and Nobel-winning stem cell biologist Shinya Yamanaka said a bolder and coordinated effort was needed to speed up vaccinations.
“The government and local administrations must not be constrained by outdated thinking and must make effective use of private sector expertise,” they said in a statement on Wednesday.
They urged the government to simplify vaccine application procedures, quicken administration of vaccines by allowing them to be done using a drive-through system and large-scale facilities, and seek the cooperation of medical experts.
The proposals also called for the government to manage vaccination records to encourage residents and visitors from outside Japan who have been inoculated to resume economic activities.
Japanese government officials were not immediately available for comment on Thursday, a national holiday in Japan.
Rakuten’s Mikitani, who is also the representative director of the Japan Association of New Economy, has said it was “too risky” to hold the 2020 Tokyo Olympics this summer, as Japan struggles with a nascent fourth wave of the pandemic.
Supporters of the proposals included the Japan Medical Association President Yoshitake Yokokura, furniture chain Nitori Holdings Co’s CEO Akio Nitori and Takeshi Niinami, head of Japanese beverage group Suntory Holdings. — Reuters
A view shows the Federal Reserve building in Washington August 22, 2012. — Reuters pic
Subscribe to our Telegram channel for the latest updates on news you need to know.
WASHINGTON, April 29 — A dovish message from the US Federal Reserve and more stimulus from Washington saw emerging markets’ stocks and currency indexes scale two-month peaks today while Turkey’s central bank flagged inflation pressures and pledged a tight policy.
MSCI’s indexes of emerging currencies and stocks jumped 0.4 per cent, extending a recent multi-day run of gains.
The Federal Reserve said it wants to keep monetary policy loose for the foreseeable future, helping global risk assets in addition to optimism from a US$1.8 trillion (RM7.3 trillion) stimulus package.
The Turkish lira firmed 0.4 per cent against the dollar after Central Bank Governor Sahap Kavcioglu said in his first quarterly inflation report that tight policy will be maintained on high inflation expectations as the economy suffers from a jump in coronavirus infections and a weak currency.
However, the lira has dropped some 9 per cent so far this year, making it one of the worst performing emerging market currencies.
South Africa’s rand strengthened 0.3 per cent to its highest since January 2020, extending a stellar run that has seen it become the best performing emerging market currency over the past 12 months.
“The currency has been well-supported by a host of factors, including current account surplus, positive real yields and contained inflation as well as relatively low positioning among real money investors,” said JPMorgan’s Saad Siddiqui, raising its exposure on the currency to “overweight” from “market weight”.
Russia’s rouble eked out small gains to hover above the 74 level, helped by rising oil prices and improving geo-political tensions.
The rouble is set for its best month since last December after Russia said it would withdraw some troops from the border with Ukraine, easing fears of new sanctions against Moscow after the United States barred its banks from buying OFZ government bonds in primary auctions from mid-June.
“The rouble exchange rate was rocked by a combination of fresh US sanctions and military escalation along Russia’s border with Ukraine, volatility from those developments largely calmed down, but anxiety lingers among investors because major threats were exchanged when things were heated up,” said Tatha Ghose, an analyst at Commerzbank.
Most central European currencies traded flat against the euro, with Hungary’s forint being the top gainer, up 0.3 per cent after its average annual wages jumped 9.6 per cent in February, the Central Statistics Office (KSH) said.
Meanwhile the Polish zloty recorded only marginal gains in cautious trade as investors focus on an European court decision on FX mortgages.
Central Europe’s rate-setters for the most part look set to weather a looming spike in inflation and let their economies rebound with a vengeance from the Covid-19 shutdown, propelled by strong domestic demand, investments and European Union funds. — Reuters
The logo of Airbus is pictured during the Airbus A350-1000 maiden flight event in Colomiers near Toulouse November 24, 2016. — Reuter pic
Subscribe to our Telegram channel for the latest updates on news you need to know.
PARIS, April 29 — Airbus today confirmed plans to raise production of its most-sold jets as airlines begin an uneven recovery from the pandemic, despite setbacks in Europe and a rapidly worsening wave of infections in India.
Unveiling a stronger than expected turnaround in first-quarter profit, CEO Guillaume Faury said domestic air travel is rebounding in China and the United States while cross-border travel is likely to remain weak for some time.
Conflicting policies on quarantines, lockdowns and testing have disrupted Europe’s single aviation market: one reason why Faury said he remained cautious even while planning to raise output in the second half to serve travel demand elsewhere.
“The lack of coordination of the measures taken primarily in Europe....is leading to a travel situation that is far worse in Europe than in other comparable markets,” Faury said.
“That is a concern and headwind for the recovery in aviation.”
India, one of Airbus’ biggest markets, is an “area of great concern” as the country faces a deadly second wave of Covid-19, with record daily infection rates and deaths.
“We have not yet seen a direct impact on us but that is probably one of the regions where we should not expect (things to be) as good as was expected before,” Faury said.
Airbus plans to increase production of single-aisle medium-haul jets to 43 a month in the third quarter and to 45 in the fourth, from a current rate of 40 a month — down from 60 before the crisis.
Airbus is also exploring a “steep” further ramp-up in 2022 and 2023, but that depends in part on the ability of suppliers to keep up, he said.
Supplier risks
Shares in Airbus rose 2.8 per cent as it maintained its production and financial goals for this year.
Some industry executives have expressed concerns about raising output too quickly. Faury said the balance of risks was shifting from demand to the supply chain.
Airbus is not directly affected by a global shortage of semiconductors but is monitoring the situation, he added.
The head of US rival Boeing, which is wrestling with new technical problems with its competing 737 MAX, pledged yesterday to raise output in the “most stable fashion”.
Airbus first-quarter operating profit rose 147 per cent to €694 million (RM3.4 billion), led by commercial jets and helicopters, as revenue slipped 2 per cent to €10.46 billion.
It generated a positive free cashflow of €1.2 billion in the first quarter, compared with an €8-billion outflow in the same period last year when Airbus had to pay a record corruption fine to Britain, France and the United States.
Part of the cash boom stems from a discrepancy between the timing of goods received and payments to suppliers, Airbus said.
For the full-year, Airbus expects deliveries equal to last year’s 566 jetliners, adjusted operating profit of €2 billion and breakeven free cashflow. — Reuters
A woman walks past a panel displaying stock indices of Hong Kong, US and China markets, outside a bank in Hong Kong June 7, 2016. — Reuters pic
Subscribe to our Telegram channel for the latest updates on news you need to know.
HONG KONG, April 29 — Asian and European markets rallied today as traders welcomed blockbuster earnings from Wall Street titans and after the Federal Reserve painted a rosy picture of the US economic outlook, repeating a pledge to stick to its guns with an ultra-low monetary policy.
Traders were also keeping an eye on President Joe Biden’s first address to Congress as he laid out another huge spending plan aimed at helping American families and paid for with taxes on the wealthy.
After a shaky couple of weeks on trading floors, equities appear to be finding their feet again and getting ready to push to new highs as vaccines are rolled out, lockdowns eased and economies get back on track.
And while there have been fears the expected surge in activity in this year could fan inflation and force central banks to step back from their loose monetary policies, the Fed said Wednesday it was ready to stay the course.
After its latest meeting the bank upgraded its outlook for the world’s top economy, while its boss Jerome Powell said that the expected spike in inflation will be temporary owing to last year’s low base of comparison and is not likely to need policy action.
“An episode of one-time price increases as the economy reopens is not the same thing as, and is not likely to lead to, persistently higher year-over-year inflation,” he said in response to a question from AFP.
He also said it was not yet time to start talking about tapering its vast bond-buying programme that has pumped trillions into the financial system.
“The Fed’s outcome-based guidance and triple-down bet on not talking about tapering should provide an easy playbook leading up to the June 16th (policy) meeting,” said OANDA’s Edward Moya.
“The US will need to see a couple of blowout nonfarm payroll reports, herd immunity reached before the June meeting, and inflation above 3.5 per cent for the Fed to be willing to start talking about tapering.”
And markets strategist Louis Navellier added: “One observation about why the Fed is maintaining such a high level of conviction that inflation will not be long lasting is that the global reopening is not a synchronous economic event.
“China, the US, and parts of Europe are experiencing late-stage pandemic growth, but this is not happening in several key developing and emerging markets, where Covid-19 data is surging, and their economies are still suffering.”
‘Ready for takeoff’
However, Michael Hewson at CMC Markets said: “To sum up, the Fed appears to be on autopilot through the summer, however if the data continues to surprise to the upside the market will probably front run it anyway.”
While US markets struggled to lift off, with all three main indexes ending down, Asia was well in the green, with Hong Kong, Sydney and Singapore leading the way. Shanghai, Wellington and Jakarta were also up, though Seoul dipped and Taipei was flat. Tokyo was closed for a holiday.
London and Paris were well up in the morning though Frankfurt was flat.
The upbeat mood was helped by forecast-beating earnings reports from Apple and Facebook, two of Wall Street’s biggest hitters, who essentially saw their profits double in the first quarter.
That came after a similar strong release by Google.
The three companies, along with Amazon, are among tech titans that have thrived as the pandemic accelerated a shift to working, learning, shopping and socialising online.
South Korean giant Samsung also said Thursday it saw net profit jump by almost half in the first three months.
In Washington, Biden hailed the US vaccination drive and its recovery from the pandemic, telling a joint session of Congress: “America is ready for takeoff.”
He also laid out his US$1.8 trillion (RM7.3 trillion) American Families Plan to pour money into early education, childcare and higher education — all paid for by letting the top rate of income tax rate return to the pre-Donald Trump level around 37 per cent.
Americans earning less than US$400,000 a year, however, would face no extra taxes, he said.
The spending splurge follows a US$1.9 trillion stimulus and comes as a US$2.2 trillion infrastructure proposal is being debated by lawmakers.
And while the higher rate of tax is unlikely to please Wall Street, analysts have said traders were likely to be willing to overlook it for now as they concentrate on the economic recovery drive.
Key figures around 0810 GMT
Hong Kong — Hang Seng Index: UP 0.8 per cent at 29,303.26 (close)
Shanghai — Composite: UP 0.5 per cent at 3,474.90 (close)
Tokyo — Nikkei 225: Closed for a holiday
London — FTSE 100: UP 0.6 per cent at 7,007.54
Euro/dollar: UP at US$1.2123 from US$1.2091 at 2130 GMT
Pound/dollar: UP at US$1.3963 from US$1.3913
Euro/pound: UP at 86.68 pence from 86.90 pence
Dollar/yen: UP at 108.90 yen from 108.70 yen
West Texas Intermediate: UP 0.5 per cent at US$64.19 per barrel
Brent North Sea crude: UP 0.6 per cent at US$67.69 per barrel
New York — Dow: DOWN 0.5 per cent at 33,820.38 (close) — AFP
The London Stock Exchange Group in London March 9, 2020. — IPA/ABACA pic via Reuters
Subscribe to our Telegram channel for the latest updates on news you need to know.
LONDON, April 29 — London’s FTSE 100 climbed on Thursday supported by an accommodative policy stance by the US Fed, while positive earnings updates from companies including Smith+Nephew and Unilever helped the blue-chip index surge past the 7,000 mark.
The index rose 0.6 per cent to 7,002.30, with medical products maker Smith+Nephew jumping 5.3 per cent after it reinstated its 2021 outlook.
The FTSE 100 was further supported by Unilever, which gained 3 per cent after it beat quarterly sales forecasts, helped by a pick up in home cooking during coronavirus lockdowns and a strong economic recovery in China.
Globally investor sentiment was lifted after the US central bank said it was too early to consider rolling back emergency support for the economy and President Joe Biden proposed an US$1.8 trillion stimulus package.
Investor focus will now be on the first estimate of US first quarter GDP which is due at 1230 GMT.
“The Fed does not surprise, the fiscal package was well flagged, earnings tend to beat in a recovery as guidance is dampened and the bump in Q1 GDP has been slowly improving,” said Sebastien Galy, senior macro strategist at Nordea Asset Management.
“This is a steeplechase and we are just running over the latest obstacle, as a liquidity-fuelled rally continues.”
The FTSE 100 has gained about 8.5 per cent year-to-date on optimism that speedy Covid-19 vaccinations and constant policy support from the government would drive a stronger economic recovery.
The domestically focused midcap FTSE 250 index advanced 0.2 per cent.
Retailer WH Smith slipped 3.7 per cent after it warned of the possible risk of breaching its covenant tests in 2022 and launched a potential 325 million-pound (US$450 million) bonds offering.
Lender Standard Chartered added 3.1 per cent after it reported upbeat first-quarter profit and said it will slash its global branch network by half, as it looks to cut long-term expenses. — Reuters
.jpg "A general view of traffic at the Jalan Duta Toll Plaza on the first day of the recovery movement control order June 10, 2020. — Picture by Yusof Mat Isa")
.JPG "Malaysia’s total trade amounted to RM1.777 trillion in 2020, with imports totalled RM796.19 billion and exports valued at RM980.99 billion. — Picture by Miera Zulyana")
.JPG "An investor monitors the stock prices in the gallery of the RHB Investment Bank Bhd headquarters in Kuala Lumpur March 17, 2020. ― Picture by Hari Anggara")
