KLCI Fell 8.2% - 28th Feb 2007; NOR YAKCOP: Confident of M’SIA Stock Market; No Change-Economic fundamentals; CORRECTION Due To External Factors
From Ahmad Kamil Tahir
SANA'A, March 1 (Bernama)--Prime Minister Datuk Seri Abdullah Ahmad Badawi says there is no need to worry over yesterday's fall on
As long as there was confidence in the Malaysian market, investors would continue to invest, he told a news conference for the Malaysian and Yemeni media here Wednesday. Malaysian and regional stock markets dipped sharply for the second day yesterday following a major sell-off in
As the market dived,
UPDATE: 1st March 07 2.19am
KLCI Recovers From Sharp Losses, Down Only 3.28 Pct
KUALA LUMPUR, Feb 28 (Bernama) -- The local stock market closed lower for the third day in a knee-jerk reaction to the overnight sharp fall on Wall Street and following the trend in regional markets. However, after a situation described as panic selling in the morning, where the key Kuala Lumpur Composite Index (KLCI) was down by as much as 101.07 points at one stage, the market showed recovery in the afternoon.
The KLCI cut its losses and close the day 3.28 percent or 40.63 points lower at 1,196.45. Analysts said the country's economic fundamentals are still relatively strong with inflation and interest rates at a relatively low and competitive level to spur growth and further provide support to the share market. "What really happened in the market? The sharp losses were just because investors in local and regional markets overreacted to Wall Street and
"Actually, our market fundamentals are still intact," he added. Taking a positive angle of the market, the analyst said the downturn so far this week had enabled the market to correct itself from an overbought situation built over the past few months. Another analyst agreed, saying that technically the sharp pullback had enabled the market to cool off the extremely overbought situation across the board. "The market's supply and demand factors have now almost reached equilibrium and moving forward, we expect that mild technical rebound will appear following the sharp pullback but trading is expected to be choppy," he said. According to the analysts, the current support level for the key index will be at 1,150 with resistance at 1,210.
Meanwhile, Second Finance Minister Tan Sri Nor Mohamed Yakcop said there was no need for the country to impose any capital control measures in light of developments in the stock market. Nor Mohamed said the country was not worried about the losses in the local bourse as
ABOVE: Despite the fall in the last two days, YTL group of companies are holding fort, with overall improvements for POWER - UP 25%; CEMENT - UP 96%; E-SOLUTIONS - UP 536% and LAND & DEVELOPMENT - UP 67% , according to the EDGEDaily
"With regards to our market performance during the first half of today's trading, I would like to reassure investors that the fundamentals remain strong and we maintain our optimistic outlook on the market's performance over the medium term," Yusli said. Most of
ABOVE: Thai Stocks down 2% and BELOW: Jakarta Stocks Down 1%
Updated :
Feb. 28 (Bloomberg) -- Malaysia's Second Finance Minister Nor Mohamed Yakcop said he's ``confident'' about the country's stock market after the key index fell as much as 8.2 percent.
``I am not worried because the economic fundamentals of
Stocks and currencies across
Central bank data today will show the economy grew faster last year than the government's 5.8 percent estimate, Nor said. There is no plan to impose capital controls, he said. Bursa Malaysia Bhd., the operator of the nation's stock exchange, called the market's decline a ``knee-jerk'' reaction to regional slides.
``Our economy is stable and the outlook for 2007 remains positive,'' Bursa Chief Executive Officer Yusli Mohamed Yusoff said in a statement today. ``We maintain our optimistic outlook on our market's performance over the medium term.'' Second Finance Minister Nor also said he expects Proton Holdings Bhd.,
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Nor Mohamed Not Worried About Stock Mart Fall
PUTRAJAYA, Feb 28 (Bernama) -- Second Finance Minister, Tan Sri Nor Mohamed Yakcop (ABOVE) said Wednesday he is not worried about the fall in Bursa Malaysia, stressing the country's economic fundamentals have not changed. Noting that "we are still a robust economy," he said the correction over the last two days had been due entirely to external reasons. Nor Mohamed also said
"Our market has corrected somewhat but the fundamentals are strong. And I am confident about the Malaysian economy and stock market," he told reporters after attending a function at the Ministry of Finance here. The local bourse fell sharply on Tuesday with the market barometer Kuala Lumpur Composite Index (KLCI) down 2.81 percent following a sell-off in regional stocks triggered by a sharp fall in
the KLCI fell 40.63 points to 1196.45, the Second Board Index was down 2.68 points to 98.05 and the FBMEmas was down 288.55 points to 7,944.23. Nor Mohamed brushed aside worries of a liquidity crisis caused by the selling.
"I don't think there will be a liquidity crisis. Certainly in our case there is no liquidity crisis," he said, ruling out any systemic risks. Asked whether state investment agencies would support the market, he said they were in the business of investing. "I am sure agencies like the Employees Provident Fund and Permodalan Nasional Bhd and the others know value when they see one. "And I think it's true they have been buying yesterday and today because the see values in the stocks," he said. Asked whether the current development in the market was temporary, Nor Mohamed said:
"I basically think that markets go up and down, there is some profit-taking, some correction along the way." But for the long term, we are very upbeat and our market is robust." He said economic figures to be released by Bank Negara Malaysia would show that growth for 2006 would exceed the 5.8 percent forecast earlier. "For 2007, the government is confident of achieving a growth target of six percent while inflation will be brought down to below three percent. "The earnings of big companies, including government-linked companies are expected to be better this year than in 2006," he said. He said the losses suffered by Proton Holdings had been expected.
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Malaysia shares dive 8 pct early on China sell-off
Updated : 28-02-2007 ; Media : Reuters ;Story By : N/A ;via www.biznewsdb.com
KUALA LUMPUR, Feb 28 (Reuters) - Malaysia's main share index fell 8.1 percent in early trade on Wednesday, extending losses after China's market crash on Tuesday. The benchmark Kuala Lumpur Composite Index <.KLSE> was down 7.44 percent at 1,145.06 percent at 0111 GMT. The index of 100 blue-chip shares had opened down 3.84 percent.
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Updated :
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Updated :
via www.biznewsdb.com
Feb. 28 (Bloomberg) -- Malaysia stocks fell by the most in almost six years, sending the ringgit lower and extending a global sell-off sparked by a plunge in Chinese and U.S. shares yesterday.` `There's no way that we will be decoupled from what happens to the major markets,'' said Wong Shou Ning, who helps manage $136 million at Kenanga Investment Management Sdn. in Kuala Lumpur. ``Markets are global. It's like a tidal wave, you can't run.'
'
Tenaga Nasional Bhd. and Malayan Banking Bhd. led the decline among the nation's biggest stocks. Proton Holdings Bhd. slumped after reporting a third straight quarterly loss while Dufu Technology Corp. Bhd. gained on its first trading day. The Kuala Lumpur Composite Index tumbled 74.17, or 6 percent, to 1162.91 at the
``The whole market is taking a hit,'' said Scott Lim, who helps manage $400 million as chief investment officer at CMS Dresdner Asset Management Sdn. in
Whole Market Hit
Today's loss pared the gains in the nation's main stock index this year to 6.1 percent. The 100-member measure closed last week at its highest since
Tenaga Nasional,
Malayan Banking Bhd., the nation's biggest lender, declined 70 sen, or 5.4 percent, to 12.30 ringgit, the lowest since Jan. 30 and shaving this year's gain to 4.2 percent.``
Proton Posts Loss
Telekom Malaysia Bhd.,
Proton, a Malaysian carmaker in talks to sell a stake to General Motors Corp., fell 55 sen, or 7.5 percent, to 6.75, after declining as much as 14 percent. Today's decline cut the stock's gain this year to 2.3 percent. The local carmaker said yesterday after trading closed that it posted a 281.5 million ringgit ($80 million) loss in its third-quarter ended Dec. 13, compared with an 86.5 million ringgit profit a year ago.
Dufu Technology, a Malaysian maker of precision machining components, jumped 14.5 sen, or 21 percent, to 84.5 sen, after surging as much as 36 percent earlier today. The company sold 34 million shares at 70 sen each in its initial public offering. The following stocks fell. Stock symbols are brackets after company names.
Maxis Communications Bhd. (MAXIS MK),
Net income at Maxis jumped 51 percent to 642 million ringgit in the three months ended Dec. 31 from a restated 425 million a year earlier on larger sales at its Aircel Ltd. unit in India and higher earnings at its Malaysian operation. Profit beat the 481 million ringgit median estimate of 10 analysts surveyed by Bloomberg.
Malaysian Airline System Bhd. (MAS MK), the country's largest carrier, declined 40 sen, or 6.9 percent, to 5.40 ringgit, trimming this year's gain to 15 percent. Credit Suisse Group today cut its 12-month share price estimate for the airline by 1.4 percent to 7.15 ringgit.
TA Enterprise Bhd. (TAE MK), a Malaysian stockbroker and property developer, fell 26 sen, or 15 percent, to 1.52 ringgit, set for its biggest loss since
The company said it hasn't made a ``firm decision'' to list its property unit on the
UMW Holdings Bhd. (UMWH MK), the local assembler of Toyota Motor Corp. cars, lost 35 sen, or 3.7 percent, to 9.15 ringgit, its lowest this month. The company said yesterday after trading closed that fourth-quarter profit fell 14 percent to 87 million ringgit as sales declined 7.6 percent to 2.57 billion ringgit, because it sold fewer
Unisem (M) Bhd. (UNI MK),
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Malaysian Stocks Drop, Post Biggest Loss in Over Five Years
Updated :
Feb. 27 (Bloomberg) -- Malaysian stocks fell, sending the index to its biggest loss in more than five years after oil prices advanced for a fifth day and following a sell-off in Chinese shares. ``The rise in oil prices and the sell-down in China is having an impact on sentiment in the region as a whole,'' said Mushtaq Ibrahim, who manages about $1.4 billion of assets at Amanah SSCM Asset Management Bhd. in Kuala Lumpur. ``This is a healthy pullback for
Tenaga Nasional Bhd. and Malayan Banking Bhd. led the decline among the nation's biggest stocks. Lion Industries Bhd., which invests in steel, property, timber and beverages, fell after profit plunged last quarter on higher taxes. The
Tenaga Nasional, the biggest component of
`In the Money'
``If you are already in the money in a big way, which you probably are if you were in
In addition,
Prolonged Rally
``The rally was quite prolonged, so the fall today is a little bit sharp. The market needed a breather,'' said Teng Chee Wai, who helps manage the equivalent of $533 million at Hwang- DBS Investment Management Bhd. in Kuala Lumpur. ``There are also rumors of
Among other declining stocks, Lion Industries tumbled 25 sen, or 15 percent, to 1.41 ringgit, its biggest lost since May and trimming this year's gain to 37 percent. Net income in the three months ended Dec. 31 fell 65 percent to12 million ringgit ($3.44 million), compared with 35 million ringgit a year earlier, the company said yesterday after trading closed.
Lion Diversified Falls
Lion Diversified Holdings Bhd. declined 45 sen, or 6.5 percent, to 6.45
ringgit, extending a three-day, 5.5 percent retreat. The company, which agreed to buy shares in Megasteel Sdn. for 338 million ringgit, saidyesterday profit for the three months ended Dec. 31 plunged 86 percent to 62 million ringgit. Megasteel is a unit of Lion Corp., which is 23 percent- owned by Lion Diversified.
Road Builder (M) Holdings Bhd., a construction company with investments in toll operations, ports and hotels, fell 32 sen, or 7 percent, to 4.24 ringgit, its biggest loss since May. UBS AG cut its rating for the stock to ``neutral'' from ``buy,'' saying it is no longer a cheap exposure to IJM Corp., which is taking over Road Builder.
IJM, which has offered to issue two of its shares for each share of RoadBuilder, fell 55 sen, or 5.9 percent, to 8.80 ringgit, its biggest decline since May 22. UBS also cut its rating for IJM to '`neutral.'' ``IJM shares have doubled over the past 12 months, in line with order book expansion,'' Ridzuan Mohamed, an analyst at UBS, said. ``However, we believe it will take two years before earnings per share growth catches up.''
Raised Forecast
Following the market's decline, Malaysian Airline System Bhd. fell 15 sen, or 2.5 percent, to 5.80 ringgit, after rising as much as 4.2 percent earlier today. The nation's largest carrier may exceed its earnings target this yearby 14-fold after cutting jobs and unprofitable routes helped it return to a 121.5 million ringgit profit in the fourth quarter, the company said yesterday after trading closed.
Malaysian Air expects a profit of between 300 million ringgit and 700 million ringgit this year, higher than its earlier 50 million ringgit target, the company's managing director, Idris Jala, said yesterday. ``The company's results are good,'' said Christopher Eng, an analyst at OSK
Research Sdn. in
On the broader market, shares worth 4.29 billion ringgit were traded, almost three times the six-month daily average and the biggest since
AirAsia Bhd. (AIRA MK),
state news agency said, citing Chief Minister Abdul Ghani Othman. AirAsia is one of only two airlines that fly to the airport, Bernama said. Cahya Mata Sarawak Bhd. (CMS MK),
Courts Mammoth Bhd. (CRTM MK), a retailer of electronics and electronic appliances, fell 12 sen, or 11 percent, to 98, its biggest loss since April 4, 2006. The stock had its rating lowered to ``sell'' from ``hold'' by Deutsche Bank AG on concerns the company's credit sales will continue tosuffer should it implement a stricter credit policy, which it needs to improve the quality of its receivables.``Investors should sell the stock,'' Pauline Chong, a Deutsche analyst, said in a note today. The ``outlook remains opaque and management isn't transparent.'' Genting Bhd. (GENT MK), the owner of
Permodalan Nasional Bhd. KLCC Property Holdings Bhd. (KLCC MK), the owner of the
Utama Banking Group Bhd. (UBG MK), which owns a third of
Hussain Bhd. (RHB MK), fell 10 sen, or 4.5 percent, to 2.12 ringgit. Utama said talks to sell its Rashid Hussain stake to Kuwait Finance House are no longer exclusive. Rashid Hussain owns 65 percent of RHB Capital Bhd. (RHBC
MK),
Business;
KLCI Down 2.81 Pct Following Sell-Off In
By Farazira Amira Yusof
"The correction was expected after last Friday's run-up but not the big losses seen today," a dealer from one of the local brokerage said. The biggest one-day loss was recorded on
The Dow Jones Industrial Average closed down by 15.22 points to 12,632.26 as crude oil price climbed to US$61.59 per barrel. The dealer said that the cautious market could also be attributed to the settlement period or T+3 after last week's record high volume. "Actually, it was the time for investors to settle their transaction as the market had recorded a high volume of 4.782 billion shares last Thursday," said the dealer. Moving forward, the dealer said that the market will continue to see profit taking correction amid weaknesses in overseas markets.
"The market is likely to consolidate due to lack of investors interest. Perhaps, the announcement of gross domestic data (GDP) later tomorrow will provide some support to the market," the dealer said, adding that the current psychological support level will be at 1,180-1,200-points.
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IMF chief warns of yen carry trades
POSTED: 0802 GMT (1602 HKT),
• Weakening yen has increased
• Depreciation of dollar could help reduce
• Huge deficits in
•
WASHINGTON (Reuters) -- The head of the International Monetary Fund warned the increasing growth of yen carry trades could deepen global economic imbalances, and he urged
IMF Managing Director Rodrigo Rato (ABOVE), addressing graduates from
But Rato said developments with the yen and carry trades were new concerns that could trigger a sudden shock in financial markets. "I am concerned that investors and the countries into which funds are flowing are not sufficiently attentive to the risks," Rato said. He said there was no simple solution to the problem, noting that the Bank of Japan had increased interest rates by a quarter of one percent last week. Rato said that with
"We think
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Nikkei tops 18,000, as yen falls
POSTED: 1520 GMT (2320 HKT),
SINGAPORE (Reuters) -- Japanese stocks rose on Thursday, led by Sony and other exporters, as the yen hit a record low versus the euro and fell against the dollar after the central bank signalled future interest rate rises would be slow in coming. Gold was steady after soaring to a nine month-high on Wednesday on active fund buying in commodities as
Advantest Corp. and Canon Inc. jumped about 2 percent while Sony rose 1.4 percent as the weak yen makes their exports more competitive and boosts profits when earnings are brought home. The broad TOPIX index rose almost 1 percent after earlier hitting its highest level since November 1991. The euro surged to 159.13 yen, the highest since the single currency was launched in 1999. It later eased to 158.9 yen. The dollar edged up to 121.1 yen, after climbing nearly 1 percent against the Japanese currency on Wednesday, before easing to 120.95.
"Market players feel confident that the BOJ will not hike rates for a while," said Tsutomu Soma, a senior trader at Okasan Securities. "People seem to feel absolutely no hesitation towards selling the yen." The Bank of Japan raised interest rates to 0.50 percent from 0.25 percent on Wednesday. That is the highest in over a decade, but still the lowest among wealthy countries, and Governor Toshihiko Fukui repeated on Thursday that interest rates would be raised only slowly from here. A Reuters poll taken after the BOJ decision on Wednesday showed that most market players didn't expect further tightening until the third or even the fourth quarter of 2007. Japanese government bond prices generally rose on the belief there would not be another rate rise soon.
Korean stocks hit record.
Hong Kong stocks rose 0.5 percent, as China Mobile extended gains a day after reporting strong subscriber data, while oil stocks followed crude prices higher. Australian shares rose as investors flocked to firms with strong earnings such as Seven Network, while
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POSTED: 0146 GMT (0946 HKT),
• January exports rose 18.9 percent from year earlier
• Economists' median forecast was for a deficit
• Financial markets showed little reaction
• Nikkei tops 18,000, but traders attributed move to BOJ interest rate hike
TOKYO, Japan (Reuters) -- Japan posted a trade surplus of 4.4 billion yen ($36 million) in January, snapping back from a deficit of 354 billion yen the same month a year earlier, government data showed on Thursday. Firm exports on the back of a weak yen as well as subdued imports due to cheaper oil prices helped tip the balance back to the black. Many economists had expected a deficit as Japanese exports tend to slow in January because of New Year holidays. Economists' median forecast was for a deficit of 150 billion yen.
On a seasonally adjusted basis, the overall trade surplus rose 52.5 percent from the previous month to 1.086 trillion yen, the data showed. Financial markets showed little reaction to the data. The Nikkei share average topped 18,000 for the first time in nearly seven years, and the yen fell to a record low against the euro. But traders attributed the moves to an expected slow pace to future credit tightening by the central bank. (
Exports rose 18.9 percent from a year earlier to 5.9533 trillion yen, while imports were up 10.9 percent at 5.9489 trillion yen, data from the Ministry of Finance showed. Exports to the
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