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KUALA LUMPUR (Feb 19): Share prices on Bursa Malaysia closed higher as buying interest emerged, taking cue from the US market which had had its best weekly performance in five years and higher oil price.
The FBM KLCI climbed 19.04 points or 1.04% at 1,857.32 points at the closing bell. The benchmark index traded in the range between 1,841.78 points and 1,858.23 points today.
MIDF head of research Mohd Redza Abdul Rahman said the market was rather quiet with total trading volume of 2.36 billion shares today.
Value of shares traded amounted to RM1.89 billion, with positive market breadth of 824 gainers versus 193 losers, while 288 counters remained unchanged.
“Counters of interest were mostly from the mid small cap, like PUC Bhd, Sino Hua-An International Bhd, Sapura Energy Bhd, Hibiscus Petroleum Bhd and Iris Corp Bhd,” he said.
Meanwhile, Brent Crude bounced back to above US$65 per barrel while the ringgit strengthened further to 3.8899 against the US dollar as at 5:15pm today.
The rebound on crude oil prices helped to fuel trading interest in oil and gas counters.
“The expectations of good quarterly results announcements will likely play a huge part in market movements in the near term, with geopolitical concerns rather muted for now. Now, the focus is on the ongoing Winter Olympics in South Korea and also the good progress on Brexit negotiations on the horizon,” he said.
“We also take comfort on commodity prices stabilisation with crude palm oil futures trading at around RM2,500 per tonne,” he added.
Hengyuan Refining Company Bhd was the top gainer today, while Apex Healthcare Bhd was biggest loser.
In the regional market, Japan’s Nikkei went up 1.97% while South Korean Kospi also advanced 0.87%.
The China and Hong Kong markets were closed for a holiday today.
Reuters reported that Asian shares gained on Monday, joining a global recovery for equity markets as sentiment improved gradually from a recent shakeout that stemmed from fears of creeping inflation and higher borrowing costs. THEEDGE
Malaysia to continue dominating global glove market, says Mah
KUALA LUMPUR: Given the strong export performance in 2017, Malaysia is expected to continue dominating the world market for rubber gloves, especially medical gloves, for use in the healthcare sector.
Minister of Plantation Industries and Commodities, Datuk Seri Mah Siew Keong said the industry is confident of achieving the target of securing at least 65 per cent of global exports of rubber gloves in 2020.
“In 2017, global exports of rubber gloves were estimated at 228 billion pieces and is projected to reach 287 billion by 2020,” he said in a statement today.
Last year, Malaysia's exports of rubber gloves hit an all-time high, benefitting from the synchronised recovery in global growth and demand.
For 2017, exports grew at a robust pace of 19.4 per cent year-on-year to RM15.9 billion compared with RM13.3 billion previously.
Mah recently attended a meeting with captains of the industry, organised by the Malaysian Rubber Export Promotion Council (MREPC).
In this regard, he said his ministry, via the MREPC would continue to vigorously undertake marketing efforts at increasing awareness of glove use, and promote the high quality gloves from Malaysia.
The other potential growing markets for rubber gloves that the ministry is currently targeting are ASEAN member countries, particularly the Philippines and Myanmar.
“MREPC has identified several programmes to enhance awareness on the importance of glove use in the healthcare sector and to promote quality made-in-Malaysia rubber medical gloves,” Mah added.
Malaysia is currently the world's largest supplier of rubber gloves, capturing more than 60 per cent of the global market in volume.
Foreign buyers return to Bursa, bought RM4.50m local equity last week, says MIDF Research
KUALA LUMPUR (Feb 19): Foreign investors returned to Bursa Malaysia last week after the huge sell off totaling RM1.75 billion in the preceding week, and bought RM4.50 million of Malaysian equity ahead of the Chinese New Year break, according to MIDF Amanah Investment Bank Bhd Research.
In his weekly fund flow report today, MIDF Research’s Adam M Rahim said foreign funds were net buyers on all trading days except Monday, which saw an attrition of RM230.3 million net.
“Meanwhile, foreign buying was the highest on Tuesday at RM112.7 million net with trading value exceeding RM1.5 billion, the highest in four trading days.
“On Wednesday, the announcement of Malaysia’s gross domestic product (GDP) expanding by 5.9% year-on-year in 2017 compared with a 4.2% expansion in 2016, saw the FBM KLCI close at a four-day trading high of 1,835 points.
“Nonetheless, foreign buying only stood at RM62.4 million net, the second lowest during the week, as foreigners remained anxious ahead of the U.S inflation data,” he said.
Adam said the FBM KLCI inched higher to 1,838 points on Thursday as investors shrugged off strong U.S inflation data, but foreign buying declined further to RM59.7 million net as foreign investors entered risk-off mode, right before the Chinese New Year holiday.
Overall, Malaysia bucked the trend with an inflow, as the Philippines, Thailand and Indonesia all experienced attrition, he added.
“Foreigners have so far acquired RM1.86 billion net in the first seven weeks of 2018, higher than the RM1.11 billion recorded during the same period in 2017,” he said.
Although the foreign average daily trading value (ADTV) declined by 35% from RM1.61 billion in the week before to RM1.04 billion last week, Adam deemed foreign participation to be still healthy, given last week having been a short trading week and Thursday having been a half trading day.THEEDGE
Malaysia’s tycoons flew Genting’s private jet into Africa
KUALA LUMPUR (Feb 20): Malaysia’s richest tycoons flew into Africa on Genting Group’s private jet in celebration of the Year of the Dog, local media reported.
According to recent reports by Nanyang Siang Pau led by Genting Group’s Tan Sri Lim Kok Thay, Malaysia’s richest entrepreneurs were flown into Kenya on private luxury jet Crystal AirCruises operated by the group on an “African Safari Tour”, for a different taste this Chinese New Year.
The week-long air cruise began from Nairobi, the capital city of Kenya, and flew westward along the East African Great Rift Valley, before entering Masai Mara National Reserve in south-western Kenya.
Masai Mara National Reserve is one of the country's most beloved wildlife sanctuaries, located on the banks of the Mara River.
As part of the program, guests also visited the Dame Daphne Sheldrick Elephant Orphanage which cares for orphaned baby elephants amongst other animals.
Guests included Kok Thay’s wife Puan Sri Cecilia Lim, Tan Sri Datuk Chua Ma Yu of CMY Capital Group and spouse Puan Sri Sharon Chua, Founder of Nirvana Asia Tan Sri David Kong Hon Kong and spouse, MerryFair founder Datuk Ong Hooi Lim and Datin Soo Phaik Im, NCT Group co-founder-cum-president Datuk Seri Yap Ngan Choy and executive director Datuk Joe Yap Fook Choy.
LONDON: For decades, Saudi Arabia was the voice of moderation within OPEC, pushing back against the urging of members like Venezuela and Iran for higher oil prices. That role seems to be shifting.
Thanks to OPEC-led production cuts, crude prices are double their level two years ago and bloated oil stockpiles are almost back to normal. Yet Saudi Energy Minister Khalid Al-Falih wants to go further.
Producers should keep cutting for the whole year, even if it causes a small supply shortage, Al-Falih said. “If we have to overbalance the market a little bit, then so be it,” he told reporters in Riyadh last week.
The changing stance reflects the unprecedented pressures Saudi Arabia faces as Crown Prince Mohammed Bin Salman embarks on a program of sweeping economic reforms, including the potentially record-breaking initial public offering of its state oil company.
“If you’re Mohammed Bin Salman, and trying to radically reinvent your country” then “you need a certain price to make it work,” said Helima Croft, head of commodity strategy at RBC Capital Markets LLC.
Previously content with oil at $60 a barrel, Al-Falih is now seeing $70 as the level where crude prices should trade, according to a person familiar with the matter, who asked not to be identified because the information was private.
For the past year, the Organization of Petroleum Exporting Countries and Russia -- once fierce oil-market rivals -- have led a coalition of 24 producers in output cuts aimed at clearing the supply glut unleashed by U.S. shale-oil drilling. Their objective of reducing oil inventories to their five-year average is finally in reach, but the two energy giants now suggest modifying that goal as they encourage fellow producers to keep supply constrained.
Changing Targets
The motivation could simply be that the Saudis “recognize the limitations of the inventory target” which has been skewed by years of oversupply, said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA. To “err on the side of rebalancing” will ensure that the process is complete.
Yet going beyond the initial targets, and keeping prices supported, also serves a number of internal purposes for the kingdom.
Higher crude prices could help secure a valuation for Saudi Aramco closer to the $2 trillion envisaged by Prince Mohammed, a figure some analysts consider unrealistic.
The extra revenues may also allow more gradual reductions in the generous subsidies and public-sector jobs that underpin the Saudi economy. As prices rebounded, Prince Mohammed already retreated on some attempts at austerity in the face of discontent last month, renewing state handouts as he tries to win popular support for longer-term transformation plans.
The Saudis are seeking “a bridge price, to get you where you’re comfortable with deeper reform,” said RBC’s Croft. “If you’re willing to start a revolution in your country, and shake it to its core, is an oil price of $27 really where you want to be?”
Dove to Hawk
A more hawkish Saudi stance on prices is a sharp contrast with their attitude in previous years.
In the 1970s, then-minister Sheikh Ahmad Zaki Yamani warned fellow OPEC members that their wave of oil-price hikes would backfire. He was proved right as consuming nations developed energy reserves in places like Alaska and the North Sea and the group’s market share stagnated for years.
When oil surged to almost $150 in 2008, attempts by Saudi Oil Minister Ali al-Naimi to cool the rally also faced opposition from other OPEC nations eager to enjoy soaring revenues. Prices slumped the following year during the Great Recession.
The dynamic is showing some signs of reversing. After Brent crude shot above $70 in late January, Oil Minister Bijan Namdar Zanganeh of Iran -- an OPEC producer that often used to agitate for higher prices -- said that $60 was sufficient.
Risky Strategy
Emboldened by the success of their strategy so far, the Saudis are now pursuing price levels that will ultimately lead to failure, said Eugen Weinberg, head of commodity market research at Commerzbank AG in Frankfurt.
Crude’s recovery is stimulating record shale-oil output from the U.S., which is on track to surpass both Saudi Arabia and Russia as the world’s biggest crude producer this year, according to forecasts from the Department of Energy. A new flood of supply could easily send prices lower again, according to Weinberg.
Indonesia eyes bids from oil's big boys in Europe, US
JAKARTA: Indonesia will hold roadshows in the U.S. and Europe later this month to lure investments from the world’s top oil companies as the former OPEC member seeks to reverse a decline in oil and gas production.
The Energy and Mineral Resources Ministry will seek bids for as many as 40 oil and gas blocks this week, Deputy Minister Arcandra Tahar said in an interview in Jakarta on Wednesday. The areas being offered will include onshore and offshore assets and those not sold in tenders in the past three years, he said.
Indonesia is trying to lure billions of dollars of investments into its oil industry to reduce dependence on imports as production slumps from its aging fields. The path has not been easy. The country, once a major crude oil shipper in Asia, only managed to sell five blocks out of 10 offered in a tender last year. The government is targeting industry’s “big boys” such as Chevron Corp., BP Plc and Exxon Mobil Corp., said Tahar, an oil and gas professional who lived in the U.S. for 20 years.
Tahar and ministry officials plan to meet oil company executives within a week after the auction announcement scheduled for Monday. Their first stop will be Houston, followed by Paris and Singapore.
“We will try to show them we have a new policy, a new fiscal regime, that’s going to be much better than the previous one,” Tahar said. “If you come and invest, the process will be simple and transparent. The message need to be conveyed clearly and loudly.”
The former member of the Organization of Petroleum Exporting Countries has switched to a so-called gross-split scheme for explorers from a production-sharing contract. The new regulation provides more certainty, flexibility and transparency for oil investors, Tahar said. His ministry has scrapped more than 50 regulations related to employment to refinery permits this year as it targets $200 billion in new investments over the next decade.
Indonesia Scraps More Regulations to Lure Investments in Energy
“With gross split, there is a certainty that you yourself count the split,” Tahar said. “If you are in early production, we are going to give better incentives, and phasing out over the cumulative production.” Explorers will get greater incentives if crude price is low and it will be reduced when prices move higher, he said.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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I3investor most experienced investors, traders, punters gather to exchange their views on current stocks! Beware! Most of their views may not be suitable for those under 90s!