File picture of food delivery riders at Tuanku Mizan Zainal Abidin Mosque April 17, 2021. ― Picture by Hari Anggara
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
KUALA LUMPUR, July 31 — The Bumiputera Agenda Steering Unit (Teraju) held a two-day online syndication session with stakeholders to address issues in the parcel-hailing (p-hailing) services sector.
P-hailing refers to food, beverage and parcel delivery services using motorcycles.
In a statement today, it said that 43 stakeholders — comprising various ministries, statutory bodies and selected agencies, platform operators, operators, vendors as well as representatives from the Malaysian P-Hailing Deliverers Association — participated in the session, held on July 29-30, 2021.
Chaired by Teraju chief executive officer Md Silmi Abd Rahman, the session aims to improve the sustainability and well-being of p-hailing service riders; focusing on ethics and conduct, law, safety, application systems, customers, vendors and operators.
“As the strategic enabler of Bumiputera socio-economic development, Teraju is determined and remained steadfast in its aspirations to drive the empowerment of gig economy development towards increasing Bumiputera involvement in moving up the value chain,” said Md Silmi.
A survey by Teraju revealed that there are around 70,000 food delivery persons, and 40,000 or 57 per cent of them are operating in the Klang Valley.
It also found that 93.8 per cent of them are Bumiputeras, and 80.1 per cent are between 18 and 30 years old. — Bernama
People wait to disembark from a ferry in Sreenagar on July 31, 2021 after they return to their work areas as Bangladesh relaxed the lockdown norms for all export-oriented factories earlier imposed to curb the spread of Covid-19. — AFP pic
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
SHIMULIA, July 31 — Hundreds of thousands of Bangladeshi garment workers rushed back to major cities today, besieging train and bus stations, after the government said export factories could reopen despite a deadly coronavirus wave.
With the economy badly hit by the pandemic, the government excluded the factories that supply top brands in Europe and North America from a nationwide lockdown order.
Authorities had ordered factories, offices, transport and shops to close from July 23 to August 5 as daily coronavirus infections and deaths hit record levels.
Officially, Bangladesh has reported 1.2 million cases and more than 20,000 deaths. Experts say the real figures are at least four times higher.
The government said however that the country’s 4,500 garment factories, which employ more than four million people, can reopen from tomorrow, sparking a rush back to industrial cities.
The influential garment factory owners had warned of “catastrophic” consequences if orders for foreign brands were not completed on time.
Hundreds of thousands who had gone back to their villages to celebrate the Eid al Adha Muslim festival and sit out the lockdown, headed to Dhaka in any available transport — some just walking in the monsoon rain.
At the Shimulia ferry station, 70 kilometres south of Dhaka, tens of thousands of workers waited hours for boats to take them to the capital.
Garment factory worker Mohammad Masum, 25, said he left his village before dawn, walked more than 30 kilometres and took rickshaws to get to the ferry port.
“Police stopped us at many checkpoints and the ferry was packed,” he said.
“It was a mad rush to get home when the lockdown was imposed and now we are in trouble again getting back to work,” Jubayer Ahmad, another worker, told AFP.
Bangladesh is the world’s second largest garment exporter after China and the industry has become the foundation of the economy for the country of 169 million people.
Mohammad Hatem, vice president of the Bangladesh Knitwear Manufacturers and Exporters Association, said up to US$3 billion (RM12.6 billion) worth of export orders were at risk if factories had stayed closed.
“The brands would have diverted their orders to other countries,” Hatem told AFP. — AFP
Agriculture and Food Industries Minister Datuk Seri Ronald Kiandee speaking at the Srikanda Muda Programme in Kuala Lumpur, April 23, 2021. — Bernama pic
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
PASIR SALAK, July 31 — The Seberang Perak Integrated Agricultural Development Area (IADA) has become the first location for the implementation of the paddy and udang galah (freshwater prawn) integration pilot project with private companies, to increase farmers’ income.
Agriculture and Food Industries Minister, Datuk Seri Ronald Kiandee, said that the project, involving more than one hectare of land, in collaboration with Felcra Seberang Perak and Thirty Three Management Sdn Bhd, which produced chemical-free organic fertiliser to enable freshwater prawn farming to be conducted simultaneously, was implemented in May this year.
“The main purpose of the project, which is an ecosystem of simultaneous paddy-freshwater prawn, is to increase farmers’ income compared with using previous cultivation methods.
“Paddy cultivation occupies 70 per cent (of the area) while 30 per cent of the project area is for freshwater prawn farming.
“This also increases income, with the harvest of paddy for about three months while the prawns will take about five months,” he said at a press conference, after a working visit to the Large-scale Smart Paddy Field Project (Smart SBB) here today.
He said that the project was being planned to be expanded to IADA Pekan and IADA Rompin, Pahang in the near future.
Ronald said that the farmers involved in the project were expected to get an estimated return of more than RM10,000 per hectare from the sale of paddy and prawns compared with only RM5,000 if relying on paddy harvest alone.
According to him, this project emphasises the use of chemical-free fertilisers to enable prawn farming, and indirectly promotes quality rice and organic prawns in the country, and higher value to local and foreign markets.
Apart from that, he said that the SBB SMART programme will also be implemented in the Felcra Seberang Perak area, involving an area of 140 hectares, which is expected to increase farmers’ income by 47 per cent or RM2,521 per hectare.
He said that FGV Integrated Farming Holdings Bhd, which is one of the leading companies in the Felcra Seberang Perak area, will focus on the cultivation of MRQ76 fragrant paddy produced by the Malaysian Agricultural Research and Development Institute (MARDI), in collaboration with IADA Seberang Perak and FELCRA Plantation Services Sdn Bhd.
He said that the fragrant paddy was able to give a high return of RM1,540 per tonne compared with white paddy which was sold at RM1,200 per tonne.
SMART SBB is a large-scale paddy land consolidation programme which aims to increase productivity through optimal and efficient resource management, as well as increase the income of farmers and entrepreneurs through smart and strategic public-private partnerships involving several leading companies, including FGV Integrated Farming Sdn Bhd (FGVIF). — Bernama
The ringgit appreciated versus the US dollar to 4.2190/2220 from 4.2255/2275 a week ago.— Bernama pic
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
KUALA LUMPUR, July 31 — The ringgit is expected to trade at current levels next week on mixed market sentiments, likely influenced by local political developments and concerns over rising Covid-19 cases, said an analyst.
As such, Bank Islam Malaysia Bhd economist Adam Mohamed Rahim opined that the ringgit would remain trading at above 4.20 against the US dollar next week.
“Investors will continue analysing the developments from the Parliament Special Meeting and the high daily Covid-19 cases, particularly from the highly infectious Delta variant,” he told Bernama.
Malaysia recorded 16,840 daily Covid-19 cases yesterday, slight down after two consecutive days of recording over 17,000 cases, bringing the cumulative number of cases in the country to 1,095,486.
Over the past one week, the Institute of Medical Research has identified 10 cases caused by the Delta variant, the new and more transmissible variant of SARS-CoV-2, the coronavirus that causes Covid-19.
On a weekly basis, the ringgit appreciated versus the US dollar to 4.2190/2220 from 4.2255/2275 a week ago.
Meanwhile, the ringgit was traded lower against other major currencies.
Against the Singapore dollar, the local unit depreciated to 3.1189/1216 from 3.1070/1089 a week earlier and fell against the British pound to 5.8935/8977 from 5.8054/8082.
It also weakened against the euro to 5.0181/0216 from 4.9726/9749 in the preceding week and slipped vis-a-vis the Japanese yen to 3.8502/8529 from 3.8254/8275 previously. — AFP
Logos of ExxonMobil are seen in its booth at Gastech, the world’s biggest expo for the gas industry, in Chiba, Japan April 5, 2017. — Reuters pic
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
NEW YORK, July 31 — US oil giants ExxonMobil and Chevron reported strong profits yesterday riding a wave of higher prices amid recovering demand, but pledged to keep a lid on spending.
The results marked a 180-degree reversal from this time last year when the companies suffered hefty losses amid heavy pandemic restrictions that crimped economic activity and halted travel.
“Positive momentum continued during the second quarter across all of our businesses as the global economic recovery increased demand for our product,” said Exxon Chief Executive Darren Woods.
But neither company indicated plans to pivot away from the focus on spending discipline or open the spigots on more investment in additional projects, reflecting pressure from investors, including those who oppose more spending on fossil fuels.
ExxonMobil said it would keep its 2021 capital spending budget at the low end of projections, while Chevron highlighted its lower spending in the second quarter.
Chevron also announced plans to resume share repurchases in the third quarter.
Growing ESG influence
ExxonMobil reported profits of US$4.7 billion (RM19.8 billion) in the second quarter, compared with a loss of US$1.1 billion in the same three months of last year when pandemic restrictions devastated energy demand.
Revenues more than doubled to US$67.7 billion.
ExxonMobil scored higher profits across its exploration and production business, with significantly higher oil prices more than offsetting lower production. Chemical profits also surged during the quarter on strong demand and pricing.
But the company pointed to “ongoing impacts from market oversupply” as a drag on its downstream business, which lost money during the quarter.
ExxonMobil said it expects higher planned spending in the second half of the year on key projects, but full-year spending will be on the “lower end” of its projected US$16 billion to US$19 billion for all of 2021.
Chevron, meanwhile, brought in earnings of US$3.1 billion, compared with a loss of US$8.3 billion a year earlier, as revenues more than doubled to US$37.6 billion.
“Second quarter earnings were strong, reflecting improved market conditions, combined with transformation benefits and merger synergies,” said Mike Wirth, Chevron’s chief executive.
“Our free cash flow was the highest in two years due to solid operational and financial performance and lower capital spending,” Wirth added.
“We will resume share repurchases in the third quarter at an expected rate of US$2-3 billion per year.”
CFRA Research analyst Stewart Glickman said both oil giants had a “great” quarter, adding that “everything that had been a headwind turned around and became a tailwind.”
Investors do not want the oil giants to boost capital spending, he said.
“The investor base is telling Exxon to keep the cap ex low, improve the capital efficiency,” Glickman said. “The growth mantra (oil and gas production) has totally lost resonance.”
That includes investors focused on environmental, social and governance issues or ESG.
“ESG investors are becoming a bigger force,” Glickman said. “They really want to see more focus on renewable energy, not on fossil fuel.”
At quarterly meetings earlier this spring, ExxonMobil and Chevron each suffered defeats in votes on shareholder proposals from investors who favour more focus on the energy transition.
At ExxonMobil, three directors who favoured a more aggressive response to climate change were elected despite extensive company campaigning against them.
ExxonMobil shares fell 2.3 per cent to US$57.57 per cent, while Chevron dropped 0.7 per cent to US$101.81. — AFP
Overall, for Bursa Malaysia, the FBM KLCI decreased 28.84 points to end the week at 1,494.60 from 1,523.44 a week earlier. — Picture by Hari Anggara
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
KUALA LUMPUR, July 31 — Bursa Malaysia is expected to trade in cautious mode with an upside bias, with the benchmark index hovering within a range of between 1,500 and 1,520 points next week, a dealer said.
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said investors are expected to remain cautious amid heightened uncertainties surrounding the political scene as well as the high number of daily Covid-19 positive cases and concern over its impact to the economy.
“Although the daily vaccination doses administered reached a record high of 556,404 doses on Thursday, investors are still concerned with the number of cases which remained high at above 15,000 cases per day,” he said.
He said the number of Covid-19 patients in the Intensive care units (ICU) also remained worrying at 1,043 patients as at July 29.
“However, we expect to see some bargain-hunting activities as the market is oversold, closing below the 1,500 level yesterday.
“Also as the latest corporate earnings season has started, any positive surprises could push the market higher,” he told Bernama.
On the economic data front, Adam noted there would be a slew of manufacturing Purchasing Managers’ Index (PMI) data for the month of July in the pipeline for countries including Malaysia, China, Taiwan, Vietnam, Thailand and the Philippines which investor would monitor for clues on market direction.
“We opined that the manufacturing PMI for Malaysia could remain below 50 points due to the enhanced movement control order imposed in certain parts of Selangor and Kuala Lumpur during the first half of July which saw certain industries such as rubber gloves not being able to operate,” he added.
For the week just ended, Bursa Malaysia was traded in a volatile mode, starting the week lower, but recouped its losses on Tuesday and Wednesday before it succumbed to selling pressure on Thursday and Friday to end the week breaching the 1,500 support level amid heightened political uncertainties.
The resurgence of Covid-19 cases globally also remained a key concern among market players as it could hamper the economic recovery.
Overall, for Bursa Malaysia, the FBM KLCI decreased 28.84 points to end the week at 1,494.60 from 1,523.44 a week earlier.
On the index board, the FBM Emas Index was 204.66 points lower at 10,973.47, the FBMT 100 Index declined 191.37 points to 10,681.25, and the FBM Emas Shariah Index fell 276.08 points to 12,049.08.
The FBM Ace tumbled 342.60 points to 7.080.63, and the FBM 70 slipped 203.02 points to 14,518.29.
Sector-wise, the Industrial Products and Services Index shed 2.67 points to 187.20, the Plantation Index shrank 204.5 points to 6,039.04 and the Financial Services Index gave up 163.48 points to 14,681.45.
The Energy Index trimmed 25.48 points to 739.40, the Healthcare Index narrowed 98.65 points to 2,818.0 and the Technology Index eased 1.17 points to 88.35.
Weekly turnover increased to 21.44 billion units valued at RM13.2 billion from 20.89 billion units valued at RM13.06 billion in the previous week.
Main Market volume widened to 11.87 billion shares worth RM10.28 billion against last week’s 11.57 billion shares worth RM10.17 billion.
Warrants volume went up to 1.79 billion units valued at RM248.16 million from 1.33 billion units valued at RM139.50 million previously.
The Ace Market volume reduced to 7.78 billion shares worth RM2.66 billion from 7.99 billion shares worth RM2.74 billion last week. — Bernama
The official manufacturing Purchasing Manager’s Index (PMI) eased to 50.4 in July from 50.9 in June, data from the National Bureau of Statistics (NBS) showed today, but remaining above the 50-point mark that separates growth from contraction. ― Reuters pic
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
BEIJING, July 31 — China’s factory activity expanded at a slower pace in July due to higher raw material costs, equipment maintenance and extreme weather, adding to concerns of a slowdown in the world’s second-biggest economy.
The official manufacturing Purchasing Manager’s Index (PMI) eased to 50.4 in July from 50.9 in June, data from the National Bureau of Statistics (NBS) showed today, but remaining above the 50-point mark that separates growth from contraction.
Analysts had expected it to slip to 50.8.
China’s economy has largely recovered from disruptions caused by the pandemic, but manufacturers are grappling with new challenges from higher raw material prices, surging logistics costs and global supply chain bottlenecks.
The country is also racing to contain a fresh Covid-19 outbreak of the more infectious delta variant which surfaced in the eastern city of Nanjing. The zero-tolerance approach taken by the Chinese government could present significant downside risks to the economic recovery. — Reuters
The pan-European STOXX 600 index lost 0.45 per cent and MSCI’s gauge of stocks across the world shed 0.74 per cent. — Reuters pic
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
NEW YORK, July 31 — US stocks dropped yesterday to pull further from record highs as an underwhelming earnings report from Amazon.com Inc dampened the market mood, while the dollar bounced from its lows but still suffered its worst week in nearly two months.
After making record profits during the pandemic, Amazon said late on Thursday that its sales growth would slow in the next few quarters as people ventured outside their homes post-pandemic and reduced online shopping.
Investors sold Amazon stock as the online retailer revenue of US$113 billion in the second quarter was US$2 billion shy of analysts’ forecasts.
Amazon shares slumped 7.6 per cent, dragging the tech-focused Nasdaq Composite down 0.7 per cent. That fed profit-taking elsewhere, with the S&P 500 losing 0.5 per cent. The Dow Jones Industrial Average shed 0.4 per cent. Both the S&P 500 and the Dow struck record highs on Thursday.
“Amazon’s weak report and the impact on futures immediately made its impact felt on global markets,” said Paul Hickey, co-founder of Bespoke Investment Group, LLC.
But Hickey also said: “Just because investors haven’t reacted to the company’s recent reports with excitement doesn’t mean Amazon has been a poor performer,” adding that the shares have climbed 17 per cent in the past year.
Still, Amazon’s warning of slowing growth gave investors a reason to cash in profits.
The pan-European STOXX 600 index lost 0.45 per cent and MSCI’s gauge of stocks across the world shed 0.74 per cent.
Treasury yields edged lower as investors shied away from higher-risk investments. Data released yesterday showed annual inflation accelerating further above the Federal Reserve’s 2 per cent target, but that did not appear to alter investors’ bets that the Fed is in no hurry to tighten monetary policy.
Benchmark 10-year Treasury yields retreated to 1.2289 per cent, from 1.269 per cent late on Thursday. The yield on the 2-year note fell to 0.1898 per cent, from 0.201 per cent.
Currency investors took a slightly different view, betting yesterday that the Fed might not be as dovish as some think.
The dollar, which hit a one-month low on Thursday, bounced following remarks by St. Louis Federal Reserve President James Bullard that the Fed should start reducing its monthly bond purchases this fall.
The dollar index rose 0.275 per cent, and a firmer greenback pushed the euro down 0.23 per cent to US$1.1859.
For the week, however, the dollar was still down 0.8 per cent against a basket of six major currencies, making this its worst week since May 9.
Oil prices kept their march higher, as investors bet that vaccinations would alleviate the impact of a resurgence in Covid-19 infections across the globe and keep demand growing faster than supply.
US crude recently rose 0.18 per cent to US$73.75 per barrel and Brent was at US$76.33, up 0.37 per cent on the day.
Gold prices, which rose this week on hopes that bullion would be a good hedge against inflation given a dovish Fed, succumbed to slight profit-taking yesterday. A firmer dollar also weighed on the precious metal.
Spot gold dropped 0.8 per cent to US$1,813.26 an ounce. US gold futures fell 1.01 per cent to US$1,812.70 an ounce. — Reuters
Amazon.com Inc shares sank 7.6 per cent — their biggest daily percentage drop since May 2020 — after the company reported late on Thursday revenue for the second quarter that was shy of analysts’ average estimate and said sales growth would ease in the next few quarters as customers ventured more outside the home. — Reuters pic
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
NEW YORK, July 31 — US stocks fell yesterday and registered losses for the week as Amazon.com shares dropped after the company forecast lower sales growth, but the S&P 500 still notched a sixth straight month of gains.
Amazon.com Inc shares sank 7.6 per cent — their biggest daily percentage drop since May 2020 — after the company reported late on Thursday revenue for the second quarter that was shy of analysts’ average estimate and said sales growth would ease in the next few quarters as customers ventured more outside the home.
Shares of other internet and tech giants that did well during the lockdowns of last year, including Google parent Alphabet Inc and Facebook Inc, were mostly lower as well.
“Overall earnings have been good. But Amazon ... and some of last year’s winners are taking some of the air out of the market today,” said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. “This market has been driven by big tech and when tech does well, the market seems to go right along with it, and when it doesn’t,” it falls.
Data yesterday showed US consumer spending rose more than expected in June, although annual inflation accelerated further above the Federal Reserve’s 2 per cent target.
The Dow Jones Industrial Average fell 149.06 points, or 0.42 per cent, to 34,935.47, the S&P 500 lost 23.89 points, or 0.54 per cent, to 4,395.26 and the Nasdaq Composite dropped 105.59 points, or 0.71 per cent, to 14,672.68.
For the month, the S&P 500 rose 2.3 per cent, the Dow gained 1.3 per cent and the Nasdaq added 1.2 per cent, while for the week all three of the major indexes posted declines.
Strong earnings and the continued rebound in the US economy have helped to support stocks this month, but the rapid spread of the Delta variant of the coronavirus and rising inflation have been concerns.
“There are still some distant jitters, whispers about the Delta variant, about cases rising, and I think some underlying worries about a slowdown of the reopenings and possible reversal,” Dollarhide said.
Also on the earnings front, Pampers maker Procter & Gamble Co rose 2 per cent as it forecast higher core earnings for this year, and US-listed shares of Canada’s Restaurant Brands International Inc jumped 5.1 per cent after the Burger King owner beat estimates for quarterly profit.
Pinterest Inc, however, plunged 18.2 per cent after saying US user growth was decelerating as people who used the platform for crafts and DIY projects during the height of the pandemic were stepping out more.
Caterpillar Inc shares also fell, ending down 2.7 per cent, even though the company posted a rise in second-quarter adjusted profit on the back of a recovery in global economic activity.
S&P 500 company results on the quarter overall have been much stronger than expected, with about 89 per cent of the nearly 300 reports so far beating analysts’ profit estimates, according to IBES data from Refinitiv. Earnings are now expected to have climbed 89.8 per cent in the second quarter versus forecasts of 65.4 per cent at the start of July.
Volume on US exchanges was 8.86 billion shares, compared with the 9.74 billion average for the full session over the last 20 trading days.
Declining issues outnumbered advancing ones on the NYSE by a 1.43-to-1 ratio; on Nasdaq, a 1.58-to-1 ratio favoured decliners.
The S&P 500 posted 65 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 84 new highs and 98 new lows. — Reuters
Maxis Bhd’s revenue rose 5.3 per cent to RM2.26 billion from RM2.15 billion previously, thanks to better contribution from postpaid and fibre businesses. ― Picture by Firdaus Latif
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
KUALA LUMPUR, July 30 ― Maxis Bhd posted a slightly higher net profit of RM360 million in the second quarter ended June 30, 2021 against RM342 million in the same quarter last year.
Revenue rose 5.3 per cent to RM2.26 billion from RM2.15 billion previously, thanks to better contribution from postpaid and fibre businesses, the telecommunication provider said in a filing with Bursa Malaysia today.
It said postpaid service revenue increased 2.2 per cent year-on-year (y-o-y) to RM1.002 billion, but prepaid service revenue declined 0.1 per cent y-o-y to RM685 million.
In a separate filing, Maxis said the resilient performance during the reviewed quarter was on the back of its converged solutions strategy, while focusing on providing the best connectivity and support for communities in this challenging environment.
It said earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 6.1 per cent y-o-y to RM1.01 billion due to higher revenue from fibre and mobile businesses.
The board of directors has declared a second interim single-tier tax-exempt dividend of 4.0 sen per ordinary share in respect of the financial year ending December 31, 2021, to be paid on September 30, 2021. The entitlement date for the dividend payment is September 3, 2021.
The total dividends declared for the six months ended June 30, 2021 is 8.0 sen per ordinary share. ― Bernama
At 12.30pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) fell 9.19 points to 1,503.74 from yesterday’s close of 1,512.93. ― Picture by Hari Anggara
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
KUALA LUMPUR, July 30 ― Bursa Malaysia ended the morning trading session lower due to selling pressure across the board.
At 12.30pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) fell 9.19 points to 1,503.74 from yesterday’s close of 1,512.93.
The index opened 0.95 of-a-point easier at 1,511.98 and moved between 1,502.62 and 1,512.01 throughout the morning session.
On the broader market, losers outpaced gainers 566 versus 256, while 399 counters were unchanged, 985 untraded and 64 others suspended.
Turnover stood at 2.25 billion units worth RM1.16 billion.
A dealer said the local bourse stayed in the negative territory throughout the morning session amid uncertainties surrounding the market.
“The latest developments on the political scene saw the FBM KLCI ending in negative territory yesterday and the heightened political uncertainties continued to negatively affect the market,” he said.
The local bourse’s performance was in line with its regional peers which turned lower despite the positive close on Wall Street overnight, due to concerns on the resurgence of Covid-19 cases globally, he noted.
Regionally, Singapore’s Straits Times Index was almost flat at 3,180.70, South Korea’s Kospi reduced 0.97 per cent to 3,211.05, Japan’s Nikkei 225 decreased 1.67 per cent to 27,319.42, and Hong Kong’s Hang Seng Index fell 2.10 per cent to 25,762.02.
Of the heavyweights, Maybank slid one sen to RM8.03, Petronas Chemicals eased two sen to RM8.09, TNB slipped four sen to RM9.69, IHH Healthcare fell 10 sen to RM5.69, but Public Bank added one sen to RM4.00.
Among the actives, Kanger eased half-a-sen to six sen, AppAsia warrant added 3.5 sen to nine sen, Tanco edged up half-a-sen to 21.5 sen, Sersol rose 10.5 sen to 58.5 sen, and AppAsia perked up half-a-sen to 16 sen.
On the index board, the FBM Emas Index lost 58.58 points to 11,013.19, FBMT 100 Index went down 58.05 points to 10,724.82, FBM 70 shed 49.13 points to 14,493.12, FBM Emas Shariah Index was 78.66 points lower at 12,090.96, and the FBM ACE shed 23,64 points to 7,116.95.
Sector-wise, the Financial Services Index decreased 38.48 points to 14,741.81, the Plantation Index declined 56.55 points to 6,135.80, while the Industrial Products and Services Index eased 0.63 of-a-point to 187.36. ― Bernama
In a statement today, Bank Negara Malaysia says Malaysia’s official reserve assets amounted to US$111.1 billion (RM440.1 billion) as of end-June 2021. — Picture by Ahmad Zamzahuri
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
KUALA LUMPUR, July 30 ― Malaysia’s official reserve assets amounted to US$111.1 billion (RM440.1 billion) as of end-June 2021, in accordance with the International Monetary Fund’s Special Data Dissemination Standard (IMF SDDS) format.
In a statement today, Bank Negara Malaysia (BNM) said other foreign currency assets stood at US$732.2 million.
The central bank said the detailed breakdown of international reserves based on IMF SDDS format provides forward-looking information on the size, composition and usability of reserves and other foreign currency assets, and the expected and potential future inflows and outflows of foreign exchange of the Federal government and BNM over the next 12-month period.
“For the next 12 months, the pre-determined short-term outflows of foreign currency loans, securities and deposits ― which include scheduled repayment of external borrowings by the government and the maturity of foreign currency Bank Negara Interbank Bills, among others ― amounted to US$5.59 billion.
“The short forward positions amounted to US$7.79 billion, while long forward positions amounted to US$730 million as at end-June 2021, reflecting the management of ringgit liquidity in the money market,” the central bank said in an explanatory note on ‘Detailed Disclosure of International Reserves as at end-June 2021’ released today.
In line with the practice adopted since April 2006, BNM said the data excludes projected foreign currency inflows arising from interest income and the drawdown of project loans, amounting to US$2.35 billion in the next 12 months.
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.
“BNM also does not engage in foreign currency options vis-Ã -vis ringgit,” it added. ― Bernama
Bursa Malaysia remained in negative territory at mid-morning. — Picture by Hari Anggara
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
KUALA LUMPUR, July 30 — Bursa Malaysia remained in negative territory at mid-morning today on selling pressure in heavyweights.
At 11.00am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) was 5.26 points lower at 1,507.67 from Thursday’s close of 1,512.93.
The index opened 0.95 of-a-point easier at 1,511.98.
On the broader market, losers outpaced gainers 413 versus 280, while 417 counters were unchanged, 1,096 untraded and 64 others suspended.
Turnover stood at 1.45 billion units worth RM730.43 million.
Rakuten Research Sdn Bhd, in a note, said the latest developments on the political scene saw the FBM KLCI end in negative territory yesterday.
“We reckoned sentiments would continue to be negatively affected today on heightened political uncertainties.
“Hence, we expect the index to experience more weaknesses today, however, bargain hunting may emerge if the selling is overdone. Therefore, we would expect the index the trend around the 1,500 to 1,515 range today,” it added.
Of the heavyweights, Public Bank added one sen to RM4.00 while both Petronas Chemicals and TNB shed two sen to RM8.09 and RM9.71 respectively.
Maybank and IHH Healthcare were flat at RM8.04 and RM5.79, respectively.
Among the actives, Kanger eased half-a-sen to six sen, Tanco edged up half-a-sen to 21.5 sen, Sersol rose 12.5 sen to 60.5 sen, Scanwolf added 5.5 sen to 47.5 sen, and Sersol warrant gained 15.5 sen to 42.5 sen.
On the index board, the FBM Emas Index lost 34.07 points to 11,037.70, the FBMT 100 Index went down 34.71 points to 10,748.16, and the FBM 70 shed 35.82 points to 14,506.43.
The FBM Emas Shariah Index was 47.59 points lower at 12,122.03.56 but the FBM ACE gained 27.13 points to 7,167.72.
Sector-wise, the Financial Services Index decreased 17.51 points to 14,762.78, the Plantation Index declined 35.28 points to 6,157.07, while the Industrial Products and Services Index eased 0.45 of-a-point to 187.54. — Bernama
The ringgit opened higher against the US dollar. — Reuters pic
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
KUALA LUMPUR, July 30 — The ringgit opened higher against the US dollar on Friday as trading of the greenback remained sideways over the United States’ (US) weaker-than-expected economic data, a dealer said.
At 9.02am, the ringgit rose to 4.2350/2400 versus the greenback from Thursday’s close of 4.2360/2410.
ActivTrades trader Dyogenes Rodrigues Diniz said although the US dollar has managed to regain some grounds, trading remained sideways as the US gross domestic product (GDP) data came in below expectations at 6.5 per cent versus the forecasted 8.5 per cent.
“The fact that the GDP came in well below expectations raises questions about the efficiency of the monetary policies adopted by the US Federal Reserve (US Fed) so far, with the American central bank trying to kick-start the economy at the cost of higher inflation.
“The million-dollar question now is whether the US Fed needs to increase the stimulus, and how far can it safely go without jeopardising the purchasing power of the American consumer because of inflation,” he said.
Meanwhile, at the opening bell, the local note was traded mixed against a basket of major currencies.
The ringgit strengthened against the Singapore dollar to 3.1275/1315 from 3.1285/1324 at yesterday’s close and appreciated against the British pound to 5.9066/9135 from 5.9092/9162 previously.
However, the local unit weakened vis-a-vis the euro to 5.0316/0375 from 5.0294/0353 and depreciated against the Japanese yen to 3.8648/8697 from 3.8562/8611 previously. — Reuters
— Bursa Malaysia bucked the uptrend among regional peers to open lower today amidst uncertainties surrounding the market. ― Picture by Hari Anggara
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
KUALA LUMPUR, July 30 — Bursa Malaysia bucked the uptrend among regional peers to open lower today amidst uncertainties surrounding the market, a dealer said.
At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 9.46 points to 1,503.47 from Thursday’s close of 1,512.93.
The index opened 0.95 of-a-point easier at 1,511.98.
On the broader market, losers led gainers 214 versus 112, while 237 counters were unchanged, 1,643 untraded and 64 others suspended.
Turnover stood at 200.26 million units worth RM108.97 million.
In a research note, Malacca Securities Sdn Bhd said the FBM KLCI edged lower amidst uncertainties due to the recent domestic political developments, as well as the current Covid-19 pandemic situation.
“This would result in heightened volatility in the market, and traders should turn more cautious over the near term in selecting stocks to trade.
“On a sidenote, China’s move to raise export tariffs on some steel materials and remove rebates on cold-rolled products may exert pressure on the commodity’s prices as demand continues to rise,” it said.
It noted that some buying interest may emerge in the electric vehicle-related stocks following Genetec’s solid results, while gains in Nasdaq may spillover to the local technology sector.
Meanwhile, given the uptrend in crude oil and crude palm oil prices, trading interest may increase in plantation and oil and gas sectors.
Of the heavyweights, Maybank eased one sen to RM8.03, Petronas Chemicals fell nine sen to RM8.02 and TNB shed two sen to RM9.71.
Public Bank and IHH Healthcare were flat at RM3.99 and RM5.79, respectively.
Among the actives, both Tanco and Ecofirst warrants rose 1.5 sen to 22.5 sen and 7.5 sen, respectively, and Scanwolf added 7.5 sen to 49.5 sen, while Serba Dinamik eased half-a-sen to 40.5 sen and Saudee was flat at 13.5 sen.
On the index board, the FBM Emas Index lost 43.44 points to 11,028.33, the FBMT 100 Index went down 56.05 points to 10,726.82 and the FBM 70 shed 31.01 points to 14,511.24.
The FBM Emas Shariah Index was 56.06 points higher at 12,113.56 and the FBM ACE eased 6.43 points to 7,134.16.
Sector-wise, the Financial Services Index dropped 44.27 points to 14,736.02.65, the Plantation Index declined 31.44 points to 6,160.91, while the Industrial Products and Services Index slid 1.31 points to 186.68. — Bernama
An artist's impression of the new plant in Penang. — Picture courtesy of Simmtech
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
GEORGE TOWN, July 30 — A Korean semiconductor company, Simmtech Holdings Inc, is setting up its first plant in Malaysia with a RM508 million (USD120 million) investment in Penang.
Simmtech Southeast Asia Managing Director Jeffery Chun said construction for the new plant on an 18-acre site in Batu Kawan Industrial Park started in May this year.
“We have spent many years looking for a suitable location for our expansion before deciding on Penang,” Chun said during a joint virtual press conference with Penang Chief Minister Chow Kon Yeow.
He said the company chose Penang due to its well established electrical and electronics (E&E) ecosystem and background.
He said the facility in Penang will be the company’s first large-scale factory in South-east Asia and it will bring its products closer to its major customers in this region.
“Once in full swing, the production capacity in Penang will represent 20 per cent of Simmtech Group’s current combined capacity in Korea, China and Japan,” he said.
Construction on the new Simmtech plant in Batu Kawan, Penang started in May this year. — Picture courtesy of Simmtech
He said the construction of the new facility in Penang is expected to be completed early next year and production will start soon after in the middle of next year.
He said the company does not foresee any major delays in the project despite the ongoing Covid-19 pandemic but they will closely monitor government announcements and guidelines with regards to the protocols and SOPs.
“This pandemic provides more opportunities for the industry as it is a good period for the semiconductor industry as a whole,” he said when asked about the impact of the pandemic.
He added that the plant in Penang would further strengthen Simmtech’s dominant market position and meet heightened demand from DDR5 DRAM (Double Data Rate 5 Dynamic Random-Access Memory) as well as data storage devices and packaging substrate products.
Penang Chief Minister Chow Kon Yeow at the virtual press conference today. — Picture courtesy of Penang Chief Minister's office
Chow said Simmtech’s new facility, via its Malaysian subsidiary, Sustio Sdn Bhd, is expected to create 1,200 high value jobs in engineering, manufacturing and quality management by the first half of 2023.
“I am excited to welcome Simmtech, the first major Korean investor from the semiconductor industry in Penang,” he said.
He hoped that Simmtech’s arrival would mark the start of a new chapter with Korea.
Other than Simmtech, Chow said a number of other global heavyweights in the semiconductor value chain have announced new investments and expansions in Penang over the last two years.
“Simmtech’s Sustio project will bring Penang’s industry to greater heights and further integrate Penang into the global semiconductor supply chain,” he said.
Chow said Penang recorded RM310 billion of exports and RM110 billion of trade surplus, which contributed 32 per cent and 60 per cent of the country’s total respectively, in 2020.
“Notably, Penang’s E&E exports were valued at RM231 billion in 2020, which formed more than half of the country’s total,” he said.
On the investment front, Chow said Penang recorded a total RM31 billion manufacturing investment for 2019 and 2020, among which 47 per cent is contributed by E&E products which represent 35 per cent of the country’s total in E&E.
Billionaire entrepreneur Elon Musk’s brain-chip startup, Neuralink, has raised US$205 million in a funding round. — Reuters pic
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
SAN FRANCISCO, July 30 — Billionaire entrepreneur Elon Musk’s brain-chip startup, Neuralink, has raised US$205 million (RM868 million) in a funding round led by Dubai-based venture capital firm Vy Capital, with participation from Alphabet Inc’s Google Ventures, the company said on Thursday.
Neuralink aims to implant wireless brain computer chips to help cure neurological conditions including Alzheimer’s, dementia and spinal cord injuries and fuse humankind with artificial intelligence.
The company released a video in April showing a male macaque playing a videogame “Mind Pong” after getting chips embedded on each side of its brain.
“First @Neuralink product will enable someone with paralysis to use a smartphone with their mind faster than someone using thumbs,” Musk tweeted in June.
“The device is implanted flush with skull & charges wirelessly, so you look & feel totally normal,” he added.
Valor Equity Partners, Craft Ventures and Founders Fund also participated in the series C funding round.
Co-founded by Musk in 2016, San Francisco-based Neuralink will use the funds to take its first product, N1 Link, to the market, and for research and development.
Musk has a history of bringing together diverse experts to develop technology previously limited to academic labs through companies such as Tesla Inc, SpaceX and Boring Co.
SpaceX, a private space company, said in an amended regulatory filing in April, it had raised about US$1.16 billion in equity financing. — Reuters
Ancom Berhad recorded strong fourth quarter and full-year financial results for the period ended May 31, 2021. — Picture courtesy of Ancom Berhad
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
KUALA LUMPUR, July 30 — Ancom Berhad recorded strong fourth quarter and full-year financial results for the period ended May 31, 2021 amid a highly challenging operating environment.
In a statement, the leading manufacturer and supplier of agricultural and industrial chemicals in South-east Asia said its 4QFY21 revenue increased 44.1 per cent year-on-year to RM445.9 million compared to RM309.4 million in the same period last year.
It said the improvement was primarily driven by the agricultural chemicals segment as higher global demand bolstered the segmental top line by 28.6 per cent to RM79.9 million.
Higher trading volume and average selling prices also boosted the revenue of the industrial chemicals arm by 52.6 per cent y-o-y to RM325.1 million, the group added.
Ancom’s profit after tax and non-controlling interest also jumped to RM7.6 million in 4QFY21 versus a loss of RM11.8 million a year ago.
For the full year, Ancom’s revenue increased marginally by 4.5 per cent y-o-y to RM1.54 billion in FY21.
Meanwhile, the Group reported full-year net profit of RM23.9 million for FY21, which Ancom Berhad Group CEO Lee Cheun Wei noted was its best full-year bottom line since 2008.
“Our agricultural chemicals division has done very well, riding on the uptrend of global demand for food. We anticipate the trend to persist with a continued strong contribution from this segment. As for the industrial chemicals segment, our trading business has performed favourably too, having benefited from higher sales volume and generally higher average selling prices,” he said.
Given the restrictions in operations imposed during MCO/EMCO in the months of June and July, we have been very vigilant to comply with regulations while continuing to serve our clients as an integral part of the food supply chain. We are cognisant of the ongoing challenges such as freight costs and supply chain disruptions due to the pandemic, and we managed to deliver commendable results thus far.”
Lee added that he anticipates the growth trajectory of the Group, particularly the agricultural chemicals division, to remain strong.
“Recently, we have begun our production of new active ingredients at our existing plants and are expecting to add a few more to our portfolio once our new plant is ready by the first half of 2022. We are optimistic and will strive to continue to deliver good and satisfactory results for our shareholders next year,” he concluded.
The logo for Chinese ride-hailing company Didi Global Inc is pictured during the IPO on the New York Stock Exchange (NYSE) floor in New York City, US, June 30, 2021. — Reuters pic
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
NEW YORK, July 30 — Ride-hailing company Didi Global on Thursday denied a media report that the company was considering going private to placate Chinese authorities and compensate investor losses since it listed in the United States.
The Wall Street Journal, citing people familiar with the matter, reported that the Chinese company has been mulling delisting plans as a crackdown in China widens and it has received support from cybersecurity regulators.
Didi, which listed in New York last month after raising US$4.4 billion (RM18.6 billion) in an initial public offering (IPO), said in a statement that the WSJ report was not true.
“The company affirms that the above information is not true,” it said, in reference to the report. “The company is fully cooperating with the relevant government authorities in China in the cybersecurity review of the company.”
Shares in Didi jumped as much as 40 per cent in premarket trade on news of the WSJ report, but pared gains when trading opened on Wall Street. Didi rose 11.2 per cent from Wednesday to close at US$9.86 a share, but is down 29.6 per cent from its listing price on June 30.
Days after Didi’s market debut, the Cyberspace Administration of China (CAC) launched an investigation into the company and asked it to stop registering new users, citing national security and the public interest.
The regulator also said it would remove the mobile apps operated by Didi from app stores.
Didi’s listing was the biggest stock sale by a Chinese company since the 2014 listing of e-commerce behemoth Alibaba Group Holding Ltd.
The action against Didi came close on the heels of a month-long regulatory crackdown on China’s massive internet sector for antitrust, customer data privacy and other violations, which has rattled investors.
Beijing said earlier this month that officials from at least seven departments, including the CAC, Ministry of Transport, and State Administration for Market Regulation (SMAR) were conducting an on-site cybersecurity review of Didi.
The CAC had been looking into whether there is a possibility of some of the company’s data ending up in the hands of a foreign entity given Beijing’s sensitivity about usage of onshore data, sources have told Reuters.
Didi has been in talks with bankers, regulators and key investors to try to resolve the problems following its listing on the New York Stock Exchange, the WSJ report said.
The WSJ reported that Didi had asked its major underwriters to assess investors’ views regarding a privatisation plan, as well as the pricing range that they would accept.
A take-private deal that would involve a tender offer for its publicly traded shares is one of the preliminary options being considered, the WSJ report said.
Chinese companies have been under increasing US scrutiny.
A commissioner with the US Securities and Exchange Commission said on Monday that US-listed Chinese companies must disclose the risks of Chinese government interference in their business as part of their regular reporting obligations.
The SEC in March adopted measures that would kick foreign companies off American stock exchanges if they do not comply with US auditing standards. The Public Company Accounting Oversight Board has long complained about its lack of access in China. — Reuters
The logo of Gilead Sciences Inc pharmaceutical company is seen in Oceanside, California, US, April 29, 2020. — Reuters pic
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
NEW YORK, July 30 — Gilead Sciences Inc on Thursday posted a higher-than-expected second-quarter profit, helped by strong demand for its Covid-19 antiviral treatment, Veklury, but sales of its flagship HIV drugs lagged as the pandemic continued to limit visits to doctors.
Sales of HIV medicines, which have stalled during the coronavirus pandemic, fell 2 per cent to US$3.9 billion (RM16.5 billion).
Gilead Chief Commercial Officer Johanna Mercier on a conference call with analysts said HIV sales in Europe have begun to recover, but US demand has been slower. “It is clear that it will take several quarters for treatment to return to pre-pandemic levels,” she said.
Gilead shares, which closed at US$69.83, were down more than 2 per cent in extended trading.
Gilead reported adjusted quarterly earnings of US$1.87 per share, beating Wall Street expectations by 12 cents.
The biotechnology company’s total revenue for the quarter rose 21 per cent from a year earlier to US$6.2 billion, slightly higher than the average analyst estimate of US$6.07 billion, according to Refinitiv data.
The results were “driven by in-line performance of their core products and strength in Veklury, demonstrating the ability of their portfolio mix to hedge against any COVID-related headwinds. Oncology and hepatitis C businesses were encouragingly solid,” RBC Capital Markets analyst Brian Abrahams said in a research note.
Sales of Veklury, known chemically as remdesivir, totalled US$829 million for the quarter, easily topping Wall Street estimates of US$675 million.
Gilead said Veklury sales would continue to be subject to uncertainty since they are tightly linked to Covid-19 hospitalisation rates. The company also said it was no longer pursuing development of an inhaled version of the drug for Covid-19.
Chief Executive Daniel O’Day said Veklury, given intravenously to hospitalized patients, is effective against all known variants of the coronavirus, adding that the company continues to develop other pipeline products for treating Covid-19 outside of a hospital setting.
Sales of Gilead’s hepatitis C drugs bounced back in the quarter, rising 23 per cent to US$549 million.
For full-year 2021, Gilead narrowed its forecast for adjusted earnings per share to US$6.90 to US$7.25 from its prior projection of US$6.75 to US$7.45.
The company said it now expects product sales for the year of US$24.4 billion to US$25 billion, compared with a previous estimate of US$23.7 billion to US$25.1 billion. — Reuters
A logo of electric vehicle maker Tesla is seen near a shopping complex in Beijing, China, January 5, 2021. — Reuters pic
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
SAN FRANCISCO, July 30 — Tesla Inc has agreed to pay US$1.5 million (RM6.35 million) to settle claims a software update temporarily reduced maximum battery voltage in 1,743 Model S sedans, court documents show.
Owners of the vehicles will get US$625 each, which is “many times the prorated value of the temporarily reduced maximum voltage,” according to the proposed settlement documents filed Wednesday in US District Court in San Francisco.
Tesla did not immediately respond to a request for comment.
Lawyers for the owners who sued said the “voltage limitation was temporary, with a 10 per cent reduction lasting about three months, and a smaller 7 per cent reduction lasting another 7 months before the corrective update was released in March 2020.”
A US judge set a Dec. 9 hearing on the proposed settlement.
The suit filed in August 2019 alleged Tesla released an over-the-air software update that reduced the maximum voltage to which batteries on some Tesla Model S vehicles could be charged.
A subsequent update restored about 3 per cent of the battery voltage in these vehicles, and a third update released in March 2020 was designed to fully restore the batteries’ voltage over time as the vehicles are driven, the settlement documents said.
Company data shows 1,552 vehicles had maximum battery voltage fully restored and 57 have had battery replacements and for other vehicles the maximum voltage should continue to be restored over time, the settlement documents said.
The US$1.5 million settlement includes US$410,000 fees and costs for the plaintiffs’ attorneys. — Reuters
French cosmetics giant L’Oreal posted a strong net profit owing to a rebound in all its regional markets as well as product categories. — Reuters pic
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
PARIS, July 30 — French cosmetics giant L’Oreal dusted off coronavirus fallout and posted Thursday a strong net profit owing to a rebound in all its regional markets as well as product categories.
In the first six months of 2021, L’Oreal made a net profit of €2.6 billion (RM13.1 billion), a gain of almost 30 per cent from the same period a year earlier, which had suffered a €1.8-billion drop owing to the pandemic.
Turnover jumped by more than 16 per cent to €15.2 billion, exceeding even the level recorded before Covid-19 struck.
“L’Oreal is significantly outperforming the market, with an exceptional second quarter,” chief executive Nicolas Hieronimus said.
For that three-month period from April through June, group sales soared by almost 30 per cent to around €7.6 billion.
At the end of June, L’Oreal had “returned to its pre‑Covid growth rate,” with sales for the second quarter gaining 6.6 per cent from the same period in 2019, Hieronimus said.
All its activities advanced, the company said with the L’Oreal Luxe line that includes beauty products from Yves Saint Laurent and Giorgio Armani posting a first-half jump in sales of just below 25 per cent to around €5.47 billion.
Its operating margin reached 19.7 per cent, slightly better that during the same period in 2019. — AFP
World Trade Organisation Director-General Ngozi Okonjo-Iweala speaks during a press conference remotely on the annual global WTO trade forecast in Geneva March 31, 2021. — Salvatore Di Nolfi/Pool pic via Reuters
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
GENEVA, July 30 — The World Trade Organization on Thursday warned that global disparities in coronavirus vaccine rates could impact worldwide economic recovery.
“World trade and output have recovered faster than expected since the second half of 2020 after falling sharply during the first wave of the pandemic,” World Trade Organization chief Ngozi Okonjo-Iweala said while presenting a semi-annual report on the state of world trade.
“The WTO’s most recent forecast expects the volume of merchandise trade to increase by 8 per cent in 2021 and 4 per cent in 2022,” she said.
Okonjo-Iweala said “trade performance is diverging significantly across regions, with unequal access to Covid-19 vaccines a major factor in the disparities”.
“This is especially true for low-income countries, where barely over 1 per cent of their populations has received even one dose,” she said.
“Failure to ensure global access to vaccines poses a serious threat to the global economy and to public health”.
The International Monetary Fund also sounded a similar warning on Tuesday, saying “vaccine access has emerged as the principal fault line along which the global recovery splits into two blocs”.
The WTO chief said that despite the value of global merchandise trade shrinking by around 8 per cent in 2020, trade in medical supplies increased by 16 per cent and personal protective equipment (PPE) by nearly 50 per cent.
“However, some pandemic-related trade restrictions do remain in place, and the challenge is to ensure that they are indeed transparent and temporary,” she said. — AFP
The Amazon logo at the company logistics centre in Boves, France, August 8, 2018. — Reuters pic
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
SAN FRANCISCO, July 30 — Amazon said Thursday second-quarter profit jumped 48 per cent from a year ago to US$7.8 billion (RM33 billion), but shares in the tech and e-commerce giant fell on a disappointing revenue number.
Total revenues increased 27 per cent to US$113.1 billion, below most Wall Street forecasts, sparking a slide of some six per cent in after-hours trading.
Andy Jassy, who took over as chief executive earlier this month from Jeff Bezos, said Amazon remained focused on delivering goods and services for consumers during the pandemic.
“Over the past 18 months, our consumer business has been called on to deliver an unprecedented number of items, including PPE, food, and other products that helped communities around the world cope with the difficult circumstances of the pandemic,” Jassy said.
He added that Amazon’s cloud computing division AWS “has helped so many businesses and governments maintain business continuity... as more companies bring forward plans to transform their businesses and move to the cloud.”
The Amazon results capped a series of earnings from major tech firms highlighting surging profits and revenues as digital lifestyles and work-from-home trends continue even with the end of most pandemic lockdowns.
Tech rivals Facebook, Apple, Microsoft and Google parent Alphabet all reported higher revenues and profits even as they faced heightened scrutiny from antitrust regulators for their growing dominance of key economic sectors.
Amazon has faced criticism over its workplace policies but has argued that it pays above-average wages and invested billions for employee safety.
A growing number of consumers turned to Amazon during the pandemic for delivery of goods and services including groceries, and its cloud computing division also grew to help businesses and consumers stay connected.
Amazon has also been expanding its streaming television and artificial intelligence operations.
Bezos stepped away earlier this month from day-to-day operations at Amazon some 27 years after he founded the company, choosing to devote more time to other projects including his Blue Origin company that launched him briefly into space earlier this month.
Originally an online bookseller, Amazon has grown into one of the world’s most valuable companies with operations in dozens of countries and a market value of some US$1.8 trillion and 1.3 million employees.
Amazon’s revenues for the quarter were some US$2 billion below the average analyst forecast and come despite a two-day event known as Prime Day aimed at spurring sales and drawing more consumers into its Prime subscription plan. — AFP
Robinhood had a rough start on Wall Street Thursday, falling sharply in its Nasdaq debut. — Reuters pic
Follow us on Instagram and subscribe to our Telegram channel for the latest updates.
NEW YORK, July 30 — Robinhood had a rough start on Wall Street Thursday, falling sharply in its Nasdaq debut after the fast-growing online trading app raised US$1.9 billion (RM8.05 billion) in an initial public offering.
Trading under the ticker “HOOD,” Robinhood Markets ended at US$34.82, dropping 8.4 per cent after entering the market at US$38.
The Silicon Valley firm, launched by two friends who met at Stanford University, has billed itself as an accessible and fun platform for young and first-time investors, scored outsized growth during the coronavirus pandemic.
But the company, which now has a valuation of around US$29 billion, has also drawn scepticism over its business model and criticism from key regulators over its practices.
Commentators on CNBC monitoring the IPO described the offering as “polarising,” with loud voices in the investment community on both sides.
“The brand Robinhood really stands for this next generation of consumers,” the company’s Chief Executive Vladimir Tenev said in an interview with the network.
The company had set aside 20 to 35 per cent of shares for customers in the initial offering, an unusually large portion for individual investors. But Tenev declined to provide the level of participation.
‘Next generation’ investors
Founded in 2013 by Tenev and Baiju Bhatt, Robinhood has pitched itself as a niche for underinvested “everyday people,” who are younger and more diverse, according to a prospectus. Robinhood’s median customer age is 31.
Individual investors using the app played a role in the so-called “Reddit Rebellion” earlier this year when retail investors on the social network joined forces to support beaten-down stocks such as GameStop and BlackBerry to fight back against institutional investors.
After sharp growth during the pandemic, the company had more than doubled the number of user accounts to 18 million at the end of March, with US$81 billion in assets under its custody, compared to just US$14.2 billion at the end of 2019.
The firm, whose commission-free stock trading model has been copied by some rivals, aims to grow further by attracting more customers, providing additional financial services to customers as they add wealth and expanding internationally.
Tenev highlighted cryptocurrency trading as another growth area, telling CNBC that trading on digital currency “is an accelerant potentially for international expansion in certain markets.”
Regulator risk
But Robinhood’s rise has not been without controversy.
Last month, shortly before the company filed papers to go public, it agreed to pay a US$70 million fine to settle charges from regulatory body FINRA that it harmed thousands of consumers through “false and misleading” communications and other lapses.
And the company has found itself in the crosshairs of the US Securities and Exchange Commission (SEC) and its chief Gary Gensler, who has taken aim at its business model.
Although Robinhood does not charge users commissions, it takes in revenue from other financial firms by routing trades to those companies, a practice known as “payment for order flow” that is barred in other countries including Britain and Australia.
Gensler said such arrangements raise questions about conflicts of interest and also enable firms to trade consumer data.
Tenev defended the practice, saying it “has led to a much (more) diverse set of people participating in the markets,” although he acknowledged it could be “better explained” to clients.
The company has disclosed a number of other investigations, including probes by the SEC and FINRA into whether company employees traded in advance of a Robinhood’s restrictions on transactions of GameStop and other equities at the height of the retail trading frenzy in January.
Bear market concerns
A bigger unknown may be the platform’s fate when the stock market no longer sees steadily climbing equity values as it has in recent months.
“How is their platform going to react and how is their client base going to react when there is a bear market and things are not so easy?” asked Briefing.com analyst Patrick O’Hare.
More questions surround Robinhood’s efforts to expand, including the possibility of offering retirement accounts which are a big business for incumbent financial giants, many times the size of the upstart. — AFP
KUALA LUMPUR: The total of RM40.7 billion losses last year suffered by the micro, small and medium enterprises (MSME) sector as a result of a nationwide lockdown order imposed by the government to tackle the Covid-19 issue were by far the biggest ever losses incurred by the sector.
Entrepreneur Development and Cooperatives Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar (pix) said this is a strong indication of how much the entrepreneurs are suffering from not being able to conduct their businesses.
Looking at the current 1.15 million registered MSMEs nationwide, the losses would mean that each MSME company incurred an average drop in earnings of RM35,000 for 2020, he said in a statement.
This situation will affect the country’s aspirations to increase the MSMEs gross domestic product (GDP) and export value contribution to 50% and 30% respectively in 2030 under the National Entrepreneurship Policy (NEP).
“Lockdown is no longer the answer to the problem. We have to accept the fact that we need to live with Covid-19 and find a balanced solution for this. That is why my ministry has proposed an Enhanced standard operating procedures (SOPs) so that we are able to speed up the reopening of economic activities, particularly those in the non-essential categories,” he said.
Based on the latest figures shared by the Department of Statistics Malaysia (DOSM), the MSME sector’s GDP contribution suffered more than 7% cent year-on-year decline to RM512.8 billion last year against RM553.5 billion in 2019, which was an anomaly as, for the past 15 years, the growth of MSMEs is always higher than that of non-MSMEs.
The Ministry of Entrepreneur Development and Cooperatives on Tuesday submitted to the government proposed enhanced SOPs to help speed up the opening of businesses, particularly those in the first to close, last to open category, safely.
The ministry said that the enhanced SOPs proposed focus on six economic activities, which are in food and beverages (F&B dine-in), shopping malls, watches shop, pedicure and manicure (grooming services), beauty parlour/salon and barber/hair salon.
“Almost half of the business activities identified are owned by women entrepreneurs, among the groups most affected by the nationwide lockdown,“ it said. – Bernama
.JPG "At 12.30pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) fell 9.19 points to 1,503.74 from yesterday’s close of 1,512.93. ― Picture by Hari Anggara")
.JPG "— Bursa Malaysia bucked the uptrend among regional peers to open lower today amidst uncertainties surrounding the market. ― Picture by Hari Anggara")
