Month: September 2012

Written by Surin Murugiah of theedgemalaysia.com
Fri Sep 21 2012 05:04:58 PM

KUALA LUMPUR (Sept 21): The FBM KLCI ended the week on a lower note after reversing its earlier gains and closing in the red, trailing its regional peers as domestic uncertainties including the still undecided general election date and Budget 2013 concerns kept investors on the sidelines.

At 5pm, the FBM KLCI fell 1.89 points to 1,623.70. Week-on-week, the index was up 3.15 points — but for the month of September, the index dropped 22.41 points.

There were 337 gainers and 350 losers, while 366 counters traded unchanged. Volume was 1.08 billion shares valued at RM1.91 billion.

Asian shares, oil and gold rose on Friday while safe-haven currencies the dollar and yen withered, as investors were comforted by recent central bank steps to support the global economy in the face of weak data, according to Reuters.

A 0.3% rise in US stock futures suggested a firm Wall Street start and financial spreadbetters expected London’s FTSE 100, Paris’s CAC-40 and Frankfurt’s DAX to open about 0.5% higher, it said.

Meanwhile, European shares and the euro clawed themselves back up on Friday and oil also rebounded from a 1½ month low, as investors moved back into markets still feeling the benefits of support measures from central banks, said Reuters.

At the regional markets, Hong Kong’s Hang Seng Index rose 0.70% to 20,734.94; Japan’s Nikkei 225 up 0.25% to 9,110.00; South Korea’s Kospi gained 0.60% to 2,002.37; Taiwan’s Taiex up 0.35% to 7,754.69; the Shanghai Composite Index edged up 0.09% to 2,026.69; and Singapore’s Straits Times Index rose 0.51% to 3,078.23.

Among the losers on Bursa Malaysia, United Plantations fell RM1.36 to RM25.12; BAT was down RM1 to RM61.20; Nestlé dropped 90 sen to RM61; F&N shrunk 58 sen to RM18.40; Shell deducted 50 sen to RM8.50; Batu Kawan decreased 38 sen to RM18.40; Carlsberg retreated 24 sen to RM11.66; Tan Chong, PPB and GAB lost 16 sen each to RM4.44, RM12 and RM15.64 respectively.

Newly-listed IGB REIT was the most actively-traded counter, with 236.16 million shares done. The counter gained 14 sen to RM1.39. Other actives included Asia EP, Ingenuity Solutions, HWGB, I-Power, YTL Corp, Telekom, Scomi and Maybank. The gainers included Tasek, Panasonic, UMW, Dutch Lady, Hing Yap, Tahps, Bursa and Subur Tiasa.

Written by Surin Murugiah of theedgemalaysia.com
Thu Sep 20 2012 05:04:03 PM

KUALA LUMPUR (Sept 20): The FBM KLCI fell 1.2% on Thursday, in tandem with the slump at most global markets on the back of worrying economic data from China, Japan and France.

The FBM KLCI lost 20.52 points to 1,625.59. There were 551 losers and 184 gainers, while 312 counters traded unchanged. Volume was 899.29 million shares valued at RM1.46 billion.

Asian shares extended losses on Thursday after data indicated little respite for Chinese manufacturers, suggesting growth in the world’s second-largest economy slowed further in the third quarter, according to Reuters.

The MSCI’s broadest index of Asia-Pacific shares outside Japan extended losses to be down 0.7% on the day after the HSBC flash purchasing managers’ index was released. It had been down 0.5% before the data, it said.

Meanwhile, European shares and the euro fell on Thursday after weak Chinese and French data underlined worries about global economic growth, and a promise of extra oil from Saudi Arabia also helped to push crude prices to a six-week low, said Reuters.

Global shares have lost momentum this week with investors now taking stock after a nearly 17% rise in the MNSI world index since the start of June, it said.

At the regional markets, the Shanghai Composite Index lost 2.08% to 2,024.84; Hong Kong’s Hang Seng Index fell 1.2% to 20,590.92; Japan’s Nikkei 226 lost 1.57% to 9,086.98; South Korea’s Kospi was down 0.87% to 1,990.33; Taiwan’s Taiex lost 0.70% to 7,727.55; and Singapore’s Straits Times Index shed 0.34% to 3,065.16.

Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said that back to back disappointing data on Thursday affected investor sentiment badly.

He said the dip in the local market was due to foreign fund selling in tandem with the region.

“Equities, commodities and growth-focused currencies are in correction after bad economic data,” he said.

Nazri said the HSBC Flash China manufacturing Purchasing Managers’ Index (PMI) fell to a three-year low, Japan’s exports slid for the third month and French business activity in September fell at its fastest pace since April 2009.

“All point to a global economic slowdown,” he said.

Nazri said that Malaysia had one more negative uncertainty: “The political election [is] widely expected after the budget — another good reason investors [will] stay away,” he said.

Among the top losers on Bursa Malaysia were Petronas Dagangan, which fell 32 sen to RM21.80. Kotra dropped 28 sen to 70 sen; Tasek shrunk 26 sen to RM10.32; Aeon Credit and Genting deducted 22 sen each to RM10.36 and RM8.80 respectively; Panasonic and Dutch Lady decreased 20 sen each to RM22.30 and RM42.02 respectively; Genting Malaysia was down 19 sen to RM3.50; F&N retreated 18 sen to RM18.98; and Ajinomoto lost 17 sen to RM4.12.

The gainers included Aeon, RHB Capital, Mintye, Delloyd, GCE, Tecnic, MWE, MMHE and Iretex, while the actives included Perdana, Ingens, Asia EP, Astral Supreme, JCY, Maybank, Axiata, Scomi and AirAsia.

Written by Syarina Hyzah Zakaria and Chong Jin Hun of theedgemalaysia.com
Wed Sep 19 2012 01:12:05 PM

KUALA LUMPUR (Sept 19): Increasing investment opportunities prompted by growing trade demand in emerging economies could be an important catalyst in the growth of Islamic finance, according to Bank Negara Malaysia (BNM) governor Tan Sri Zeti Akhtar Aziz.

“This growing demand in emerging economies is also generating investment opportunities, In this environment, Islamic finance has an important potential to facilitate trade and investment flows that will be mutually reinforcing,” she said in her welcoming address at the Global Finance Forum 2012 on Wednesday.

An important feature of Islamic finance is that it involves financial transactions that must be accompanied by an underlying economic transaction.

“And when it is cross border, it will facilitate financial flows that will support international trade and investment flows. It will contribute towards bridging economies and enhancing our economic connectivity with each other,” she added.

Currently, emerging economies already account for 63%, or US$37 trillion (RM113.13 trillion) of world trade as at end-2011 — an increase of 17%, compared to 10 years ago.

Meanwhile, total Islamic financial assets size has now surpassed US$1 trillion, following unabated growth from the mid-1990s.

In her speech, Zeti also said that the Islamic bond, or sukuk, market has become a crucial component of Islamic finance which provides a distinctive platform to foster global linkages.

“Sukuk epitomises a truly international product for global fund raising and investment activities.

“An increasing number of multilateral agencies, sovereigns, government agencies and corporations, including multinational corporations have relied on the sukuk market as a source of financing.

“And the diverse composition of the sukuk investors across continents has added further depth to the international dimension of the sukuk market,” Zeti said.