AtOneGoFinancial Blog

30 August 2021

Bursa Malaysia turns mixed at midday

On the broader market, losers surpassed gainers 483 to 425, while 468 counters were unchanged, 870 untraded and 50 others suspended. — Bernama pic

KUALA LUMPUR, Aug 30 — Bursa Malaysia turned mixed at the end of the morning session amid positive trend in the regional markets, as mild profit-taking in selected heavyweights erased part of the earlier gains, dealers said.

At 12.30pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) was up 0.23 per cent or 3.78 points at 1,593.94 compared with Friday’s close of 1,590.16.

The index opened 3.03 points better at 1,593.19 and moved between 1,592.10 and 1,604.56 throughout the morning session.

On the broader market, losers surpassed gainers 483 to 425, while 468 counters were unchanged, 870 untraded and 50 others suspended.

Turnover stood at 2.40 billion units worth RM1.45 billion.

Technically speaking, Kenanga Research said that following the faster-than-anticipated rebound last week, the FBM KLCI could be digesting its recent gains first amid profit-taking temptations.

“Still, given the improved market sentiment, the existence of renewed buying interest is expected to provide support for the market bellwether in the near term,” it said in a research note today.

Of the heavyweights, Maybank gained 5.0 sen to RM8.42, Petronas Chemicals jumped 12 sen to RM8.32, Tenaga Nasional went up 6.0 sen to RM10.44, and IHH Healthcare leapt 9.0 sen to RM6.44; but Public Bank slipped 7.0 sen to RM4.11.

Among the actives, KNM Group was flat at 26 sen, Bintai Kinden increased 10 sen to 47.5 sen, AE Multi improved half-a-sen to 4.5 sen, and Hiap Teck advanced 2.0 sen to 56.5 sen.

On the index board, the FBM Emas Index strengthened 20.91 points to 11,581.44, the FBMT 100 Index was 21.96 points firmer at 11,295.34, and the FBM Emas Shariah Index was 33.37 points higher at 12,712.73.

The FBM 70 perked 10.15 points to 14,980.49 while the FBM ACE rose 4.71 points to 7,219.58.

Sector-wise, the Plantation Index decreased 13.06 points to 6,760.62 while the Financial Services Index added 9.34 points to 15,496.24 and the Industrial Products and Services Index gained 1.44 points to 198. — Bernama

Source: Malay Mail

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Bursa Malaysia remains higher at mid-morning

Market breadth remained positive, with gainers leading decliners 425 to 379, while 469 counters were unchanged, 973 untraded and 50 others suspended. — Picture Ahmad Zamzahuri

KUALA LUMPUR, Aug 30 — Bursa Malaysia remained higher at mid-morning, in line with positive regional market sentiment, and on continued buying in industrial products and services as well as financial services counters, dealers said.

At 11am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) rose 8.91 points to 1,599.07 from Friday’s close of 1,590.16.

The market bellwether opened 3.03 points better at 1,593.19.

Market breadth remained positive, with gainers leading decliners 425 to 379, while 469 counters were unchanged, 973 untraded and 50 others suspended.

Turnover stood at 1.73 billion shares worth RM933.39 million.

In a note today, Rakuten Trade said regional markets were expected to perform better today following a rather mixed performance last week.

“Locally, the FBM KLCI continued with its impressive performance as buying from foreign funds persisted. For last week alone, the index jumped by almost 5.0 per cent and we expect it to continue with the uptrend.

“Though a correction is anticipated, we believe the intermittent profit taking activities to soften the impact.

“For today, we expect the benchmark index to inch closer towards the 1,600 level and hover within the 1,590-1,600 range today,” it said.

Heavyweights Maybank improved 7.0 sen to RM8.44, Petronas Chemicals jumped 14 sen to RM8.34, Tenaga Nasional added 6.0 sen to RM10.44, IHH Healthcare advanced 9.0 sen to RM6.44, but Public Bank declined 5.0 sen to RM4.13.

Among the actives, KNM Group and Sapura Energy earned half-a-sen each to 26.5 sen and 13 sen, respectively, Hiap Teck went up 2.5 sen to 57 sen, while BCM Alliance was flat at 6.5 sen.

Meanwhile, in a filing with Bursa Malaysia today, AEON, IJM Corp, IJM Plantations and Kuala Lumpur Kepong announced that their share trading on Bursa Malaysia had been halted between 9-10 am.

On the index board, the FBM Emas Index strengthened 55.45 points to 11,615.98, the FBMT 100 Index was 55.52 points firmer at 11,328.90, and the FBM Emas Shariah Index was 78.38 points higher at 12,757.74.

The FBM 70 increased 43.72 points to 15,014.06, while the FBM ACE advanced 32.46 points to 7,247.33.

Sector-wise, the Plantation Index increased 7.74 points to 6,781.42, while the Financial Services Index gained 28.71 points to 15,515.61 and the Industrial Products and Services Index added 2.04 points to 198.60. — Bernama

Source: Malay Mail

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Foreign investors remained net buyers with RM964.2m inflow last week

KUALA LUMPUR, Aug 30 — Foreign investors remained net buyers of local equities on Bursa Malaysia last week, with fund inflows rising to RM964.2 million compared to RM6.6 million in the previous week.

Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said investors began the week as net buyers after acquiring RM6.7 million net of local equities today amid increased risk-on mode among investors, propelled by stronger Brent crude oil prices.

“On further scrutiny, perhaps Malaysia’s new prime minister which was sworn in during the Saturday of the previous week might have instilled investors’ confidence towards the country’s leadership,” he told Bernama.

Adam said Tuesday recorded a foreign net inflow of RM153.6 million net as the local bourse was in a recovery mode following the selldown of the past two months.

“The appointment of the new prime minister has contributed to more stable political development in the local market, attracting foreign investors to make a comeback.

“Foreign net buying reached a higher level of RM236.5 million net on Wednesday as investors took a cue from positive US vaccination news whereby the US Food and Drug Administration on Monday issued full approval for the Pfizer/BioNTech two-dose vaccine,” he added.

Meanwhile, other countries such as China have also been exhibiting encouraging prospects in terms of handling Covid-19 as no cases of locally transmitted infections were recorded in the latest data.

“Foreign investors continued to pile into local equities on Thursday, buying RM310.7 million net on that day. Likewise, the FTSE Bursa Malaysia KLCI (FBM KLCI) index closed 1.0 per cent higher at 1585.7 points on Thursday, which outperformed most Asian peers such as Hong Kong, China, South Korea, and Indonesia which recorded losses,” he said.

Adam noted that the anticipated announcement of the cabinet ministers line-up continued to drive confidence among investors towards Malaysia’s leadership.

“At the same time, expectations of the US Federal Reserve to drop hints on scaling back asset purchases during the Jackson Hole symposium on Friday waned as tapering views may be evolving due to the Delta variant. There seem to be no signs of slowdown as international investors flocked into local equities to the tune of RM256.7 million net,” he said.

So far in August, international investors have sold RM533.7 million net of local equities.

On a year-to-date basis, the foreign net selling on Bursa Malaysia stood at RM5 billion net. — Bernama

Source: Malay Mail

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Asian shares rise on dovish Fed chair, oil up as hurricane batters Louisiana

HONG KONG, Aug 30 — Asian shares started the week with gains and the dollar was not far off two-week lows after US Federal Reserve Chairman Jerome Powell struck a more dovish tone than some investors expected in long-awaited speech on Friday.

Oil prices rose, meanwhile, after energy firms suspended production as Hurricane Ida slammed into the US’ southern coast.

Japan’s Nikkei rose 0.9 per cent soon after the bell, and MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.32 per cent in early trading before Chinese markets had opened.

Australia climbed 0.39 per cent and Korea’s Kopsi gained 0.54 per cent.

US stock futures, the S&P 500 e-minis, were barely moved, up 0.04 per cent.

Investors had been waiting to see whether Powell, who was speaking at a symposium in Jackson Hole, Wyoming, would give a clear indication of his views on timing of the central bank’s tapering of asset purchases or hiking interest rates to start removing monetary stimulus.

However, in his prepared remarks, he offered no indication on cutting asset purchases beyond saying it could be “this year”, causing the S&P 500 and the Nasdaq to close last week at new record highs.

The next big event on traders’ calendars is US nonfarm payroll figures for August due to be published Friday, as Powell has suggested an improvement in the labour market is one major remining prerequisite for action.

“A strong payrolls print could instigate a debate for a September tapering start,” Rodrigo Catril, senior FX strategist at NAB, said in a note.

The absence of a timetable for tapering caused US benchmark Treasuries and the dollar to slip, and both trends continued today morning in Asia.

The yield on benchmark 10-year Treasury notes was 1.3054 per cent compared with its US close of 1.312 per cent, and the dollar index which measures the greenback against a basket of currencies was around a two week low.

Investors in China, in contrast, are watching data this week to see whether they will indicate policymakers are more likely step up easing measures.

Purchasing manager surveys for manufacturing and services are both due this week, with traders waiting to see whether a trend towards slowing growth will continue, a shift that has not been helped by recent localised movement restrictions to cope with an increase in cases of the Delta variant of the new coronavirus.

“We expect both the manufacturing and services PMIs to moderate in August, given the widespread Delta variant and strict lockdown,” said Barclays analysts in a note.

“With slowing growth momentum and dovish signals from the (People’s Bank of China) meeting this week, we expect more easing, but still at a measured pace”

Oil was also in focus after energy firms suspended 1.74 million barrels per day of oil production in the US Gulf of Mexico as Hurricane Ida slammed into the Louisiana coast as a Category 4 storm.

US crude rose 0.86 per cent to US$69.34 (RM289.36) a barrel. Brent crude rose 1.25 per cent to US$73.38 per barrel.

Gold was slightly higher, with the spot price gold was traded at US$1,817.7863 per ounce, up 0.07 per cent. — Reuters

Source: Malay Mail

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Dollar pinned as Powell plods toward tapering

SINGAPORE, Aug 30 — The dollar was nursing losses today and kept near multi-week lows after Federal Reserve Chair Jerome Powell laid out a slower-than-expected path to rate hikes, while a storm lashing oilfields in the Gulf of Mexico lifted oil-exposed currencies.

The greenback had dropped broadly on Friday, falling to a two-week low on the euro, after Powell managed to flag an exit from emergency monetary policy settings that did not spook markets or suggest a rush to raise interest rates.

“It could be appropriate to start reducing the pace of asset purchases this year,” Powell said in a speech, with employment the determining factor. But that wouldn’t directly signal higher rates, he said, as hiking would need the economy to pass “a different and substantially more stringent test”.

Traders latched on to the wiggle-room in the rates outlook and sold dollars, while Treasury yields fell, with the dollar index ending Friday with a 0.4 per cent loss and picking up today more or less where it left off, at 92.670.

The euro rose 0.4 per cent to just above US$1.1800 (RM4.92) and it held there today, while the yen crept through its 20-day moving average and steadied at 109.78 per dollar.

“Powell was vague on the timing of tapering, and his reiteration that it is separate from a decision to raise rates was read to imply that there’d be a gap,” ANZ analysts said in a note.

“That has, in turn, seen the market take a Goldilocks view of the Fed — stimulus will be reduced, but not so quickly as to snuff out the recovery.”

The Australian and New Zealand dollars also hung on to sizeable Friday gains, with the kiwi punching through its 50-day moving average and both logging weekly rises of more than 2 per cent, their largest on the dollar in about 10 months.

The Aussie last bought US$0.7313 and the kiwi US$0.7007, although both remain a fair way below chart resistance levels around US$0.7426 and US$0.7100 respectively.

Sterling rose 0.4 per cent on Friday and held at US$1.3764 today.

Elsewhere the oil-exposed Norwegian crown tracked oil prices higher to reach a seven-week high of 8.6971 per dollar as Hurricane Ida shut production wells as it pounded Louisiana. The Canadian dollar held Friday gains.

Focus now turns to US labour data due out on Friday for the next clue on the timing of asset purchase tapering and to efforts to contain the spread of Covid-19 in New Zealand where an outbreak delayed an expected interest rate hike.

New Zealand reported 83 new local cases yesterday and flagged possible tightening of restrictions, though expectations of an October hike firmed to about 80 per cent.

“Together with Covid trends, Friday’s US non-farm payrolls will make or break the case for announcing tapering at the (Fed’s) September meeting,” said Commonwealth Bank of Australia analyst Kim Mundy.

“We consider another 800,000 jobs should be enough to announce tapering. We expect the dollar to regain some lost ground this week while market participants are still worried Covid will slow the world economy.” — Reuters

Source: Malay Mail

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RHB Bank shares increase on better financial performance for first half of 2021

s at 10.07am, the counter gained 2.0 sen to RM5.53 with 701,200 shares changing hands. — Reuters pic

KUALA LUMPUR, Aug 30 — RHB Bank Bhd shares on Bursa Malaysia were on the uptrend in the early session today, as investors reacted positively to the bank’s encouraging financial results released last Friday.

As at 10.07am, the counter gained 2.0 sen to RM5.53 with 701,200 shares changing hands.

The bank posted a larger net profit of RM701.34 million for the second quarter ended June 30, 2021, on higher total income and lower operating expenses compared to RM400.77 million a year earlier, although its revenue eased to RM2.93 billion from RM3.26 billion previously.

For the first half (H1) of 2021, net profit stood at RM1.35 billion versus RM971.65 million in H1 2020, while revenue slipped to RM5.83 billion from RM6.47 billion previously, it said in a filing with Bursa Malaysia.

“The group’s financial performance for the first half of the year demonstrates our resilience to record growth and the strength of our fundamentals, including our ability to sustain strong capital and liquidity positions despite the challenging operating environment,” the bank said in a filing with Bursa Malaysia on Friday.

Its board declared an interim dividend of 15 sen per share, equivalent to a payout ratio of 45.1 per cent. The interim dividend consists of cash payout of 5.0 sen per share and an electable portion under its dividend reinvestment plan of 10 sen per share. — Bernama

Source: Malay Mail

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RHB Bank shares increase on better H1 financial performanceRHB

Malaysia's RHB Bank logo is seen at its branch in Kuala Lumpur in this September 4, 2013 file photo. — Reuters pic

Source: Malay Mail

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Australian economy likely already slowing in Q2 before Delta downturn

While consumer spending and business investment were likely solid in the quarter, more of it was met by a flood of imports and a run down in inventories rather than an increase in output, so trimming overall GDP. — Reuters pic

SYDNEY, Aug 30 — Australia’s economy was likely already slowing before wide-scale coronavirus restrictions shuttered swathes of business and jobs, setting the stage for a vicious contraction this quarter.

There is even a non-trivial chance the economy is already in recession should Wednesday’s data on gross domestic product (GDP) match the weakest market forecast. The median call is for growth of 0.5 per cent in the June quarter, while forecasts ranging from a 0.1 per cent fall to growth of 1.2 per cent underline the uncertainty of the age.

That would be a further step down from 1.8 per cent in the March quarter and a heady 3.2 per cent in the last quarter of 2020.

“For most of the June quarter the Australian economy was travelling well, but then the Delta variant arrived,” said CBA’s head of Australian economics Gareth Aird.

“For all intents and purposes, the Australian economy is currently in a manufactured recession as we go through another huge negative shock.”

While consumer spending and business investment were likely solid in the quarter, more of it was met by a flood of imports and a run down in inventories rather than an increase in output, so trimming overall GDP.

Fittingly for these strange times, annual growth is actually tipped to be the fastest in modern history at 9.2 per cent, but only because the first round of pandemic lockdowns last year caused a huge 7.0 per cent contraction, which is dropping out of the calculation.

With a new round of lockdowns gripping millions in Sydney, Melbourne and Canberra the economy is set to shrink again.

“While a flat to negative Q2 GDP print is a real risk, this is far in the rear vision mirror as far as the economy is concerned given the sharp contraction expected in Q3 which we have pencilled in at around -3 per cent q/q,” said NAB chief economist Alan Oster.

Looking ahead, the key question is when the lockdowns will end and how quickly activity recovers afterwards. Victoria state has signalled restrictions will be extended past this week while New South Wales plans to stay shut through all of September and, likely, into October.

This is longer than first expected by the Reserve Bank of Australia (RBA), which had forecast the economy would shrink by only 1 per cent this quarter.

The central bank may decide not to trim its bond buying as planned in September, but with interest rates already at all-time lows of 0.1 per cent there is little more it can do.

The conservative government of Prime Minster Scott Morrison has stepped up with billions in disaster payments to businesses and workers, though at the cost of a lot more borrowing. — Reuters

Source: Malay Mail

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Bursa Malaysia extends last week’s gains to open higher

Market breadth was positive with gainers leading losers 286 to 200, while 373 counters were unchanged, 1,387 untraded and 50 others suspended. — Picture by Azneal Ishak

KUALA LUMPUR, Aug 30 — Bursa Malaysia extended last week’s gains to open higher today, supported by continued buying demand in selected heavyweights, as more investors gains confidence due to the easing political tension in the country, dealers said.

At 9.15am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) rose 10.33 points to 1,600.49 from Friday’s close of 1,590.16.

The market bellwether opened 3.03 points better at 1,593.19.

Market breadth was positive with gainers leading losers 286 to 200, while 373 counters were unchanged, 1,387 untraded and 50 others suspended.

Turnover stood at 523.04 million units worth RM210.16 million.

Meanwhile, Malacca Securities Sdn Bhd said the positive sentiment was expected to continue to be supported by Prime Minister Datuk Seri Ismail Sabri Yaakob’s target to achieve a vaccination rate of over 50 per cent for adult population in six states — Perak, Terengganu, Johor, Kedah, Kelantan and Sabah — by the end of September while considering moving the Klang Valley into Phase 2 of the National Recovery Plan.

“The FBM KLCI maintained its winning streak throughout the week, spurred by strong buying interest from foreign funds (positive inflow streak: five days; cumulative net buying: RM964.3 million) amid easing political risk and reopening of business activities,” it said in a research note today.

Nevertheless, it said trading might slow down ahead of the National Day public holiday.

“The oil and gas sector is under the limelight following the increasing crude oil prices. Also, investors may focus on recovery theme play with the smooth vaccination progress.

“Besides, the technology sector may gain traction following the overnight gains in Nasdaq which closed at a record high following the US Federal Reserve’s remarks on its dovish monetary policy,” it added.

Among the market heavyweights, Maybank gained 6.0 sen to RM8.43, Petronas Chemicals and IHH Healthcare went up 10 sen each to RM8.30 and RM6.45, respectively, Tenaga Nasional improved 8.0 sen to RM10.46, and Public Bank was flat at RM4.18.

Of the actives, KNM Group and Green Ocean earned half-a-sen each to 26.5 sen and 3.5 sen, respectively, and Impiana Hotels advanced 1.0 sen to 8.0 sen, but Orion IXL slipped 1.0 sen to 4.5 sen.

On the index board, the FBM Emas Index added 63.80 points to 11,624.33, the FBMT 100 Index was 64.95 points higher at 11,338.33, and the FBM Emas Shariah Index perked 74.66 points to 12,754.02.

The FBM 70 increased 53.81 points to 15,024.15 and the FBM ACE rose 16.77 points to 7,231.64.

Sector-wise, the Plantation Index added 10.34 points to 6,784.02, while the Financial Services Index gained 58.04 points to 15,544.94 and the Industrial Products and Services Index picked up 1.45 points to 198.01. — Bernama

Source: Malay Mail

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AtOneGoFinancial Blog

30 August 2021

Bursa Malaysia turns mixed at midday

Bursa Malaysia remains higher at mid-morning

Foreign investors remained net buyers with RM964.2m inflow last week

Asian shares rise on dovish Fed chair, oil up as hurricane batters Louisiana

Dollar pinned as Powell plods toward tapering

RHB Bank shares increase on better financial performance for first half of 2021

RHB Bank shares increase on better H1 financial performanceRHB

Australian economy likely already slowing in Q2 before Delta downturn

Bursa Malaysia extends last week’s gains to open higher

4 Rules to Master Good Debt vs Bad Debt Before You Get Trapped

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