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Market News - 28 Aug 2009

Friday, August 28, 2009

U.S. and European Market Roundup 

·  The DJIA up 37.11 points to 9,580.63 points.

·  U.S stocks closed higher on Thursday as investors turned back an early sell-off, thanks to a rebound in oil prices. 

·  On breaking news, equity fund flows turn negative as china story losses some of its shine. China’ s resilient growth has been a key driver of flows into emerging market equity funds in recent months.

 

Macro and Corporate New

·  Conglomerate Sime Darby said its fourth quarter net profit slipped 4% to RM984 mln as it made less money from its plantation and utilities divisions.

·  Axiata Group a mobile telecoms group, said second quarter net profit jumped 44 per cent from a year ago, driven by foreign exchange gains and a better showing by its units, especially Celcom.

 

Market News - 27 Aug 2009

Thursday, August 27, 2009

U.S. and European Market Roundup 

·  The DJIA up 4.23 points to 9,543.52 points.

·  Investors stayed cautious on Wednesday after a rally, leaving stocks little changed despite solid reports on new home sales and durable goods orders. 

·  European shares slipped back from a 10-month closing high on Wednesday, as investors took profits, even as German and U.S economic data continued to point to recovery.

 

Macro and Corporate New

·  Malaysia's gross domestic product contracted at a slower pace of 3.9% the second quarter compared with 6.2% in the previous quarter.

·  Genting's second quarter net profit for the period ended June 30 2009 fell 26% to RM214.5 mln from a year ago on lower contributions from almost all business segments.

 

Market News - 26 Aug 2009

Wednesday, August 26, 2009


U.S. and European Market Roundup

  • The DJIA up 30.01 points to 9,539.29 points.
  • U.S stocks rose on Tuesday as economic data and the renomination of Federal Reserve chief Ben Bernanke reassured investors and offset concerns about red ink in the federal budget.
  • European shares hit their highest close since October on Tuesday after better-than-expected U.S house prices and consumer confidence data lifted investor spirits, with oils and banks rebounding from earlier losses.

Macro and Corporate New

  • Bank Negara Malaysia has left borrowing cost unchanged at 2%, citing improvements in domestic and global economic and financial conditions.
  • Maybank reported its lowest annual net profit in a decade after it wrote down the value of its overseas banks. Net profit for the year to June 30 2009 came in at RM691.9 mln, some 76% lower than the previous year's RM2.9 bln.

Market News - 25 Aug 2009

Tuesday, August 25, 2009


U.S. and European Market Roundup

  • The DJIA up 3.32 points to 9,509.28 points.
  • U.S stocks ended the day barely changed on Monday as investors took a break from a four-day rally that lifted major indexes to 10-month highs. Wall Street initially charged higher, but a sharp gain in U.S Treasury debt prices, which drove benchmark yields lower, triggered a sell-off in stocks.
  • European shares hit their highest closing level in more than 10 months on Monday, boosted by banks and miners, with recent economic data and positive comments from some central banks prompting investors to grab risky assets.

Macro and Corporate New

  • Yesterday, Tan bought another 11.23 mln shares, or 18.14%, in GBH for RM16.84 mln, or RM1.50 a share. CIMB said those who had accepted the offer at RM1.25 apiece would be entitled to receive the revised offer price of RM1.50, up from RM1.25 before.
  • RHB Capital said its second quarter net profit rose 11% to RM301.53 mln from a year ago, driven mainly by its Islamic banking business.

Market News - 21 Aug 2009

Friday, August 21, 2009

US Market Recap

The Street once again looked East this morning, as stocks shot higher in parity with China's Shanghai Composite index. Adding fuel to the bulls' fire was news that manufacturing activity in the U.S. mid-Atlantic region rebounded in August, with the Philadelphia Fed index touching its highest level since November 2007, ending 10 consecutive months of contraction. In similar fashion, the Conference Board's index of leading indicators inched higher for the fourth straight month in July. The upbeat figures overshadowed news that initial jobless claims unexpectedly rose to a three-week peak in the latest week, and that mortgage delinquencies touched a new record high in the second quarter. Against this backdrop, stocks marched into the black until the closing bell, with the S&P 500 Index (SPX) scoring a psychological victory.

The Dow Jones Industrial Average (DJIA – 9,350.05) ticked higher right out of the gate this morning, advancing 70.9 points, or 0.8%, by the close. Only seven of the Dow's 30 blue chips bucked the trend, with Kraft (KFT) and Pfizer (PFE) leading the laggards. Blazing the path into the black were Cisco Systems (CSCO) and American Express (AXP). After three consecutive days of gains, the Dow successfully reclaimed support from its 10-day moving average.

The S&P 500 Index (SPX – 1,007.37) clawed its way back atop the 1,000 level for the first time in four sessions today, adding 10.9 points, or 1.1%. In parity with its blue-chip brother, the SPX also powered past its 10-day trendline. Not to be outdone, the Nasdaq Composite (COMP – 1,989.22) gained 20 points, or 1%, by the close, but again failed to muscle past the psychologically significant 2,000 level.

 

Crude Oil Futures

It was a volatile day for crude futures, as commodities traders placed eleventh-hour bets ahead of the front-month contract's approaching expiration. Oil initially extended yesterday's journey higher, tapping a seven-week peak thanks to a rebound in the Chinese equities markets. However, black gold eventually pared most of those gains on the heels of a mixed bag of economic reports, which toyed with investors' hopes for an economic recovery. By the close, crude for September delivery settled on a modest gain of 12 cents, or 0.2%, to end at $72.54 per barrel.

 

Gold Futures

Gold futures also flirted with breakeven today, but eventually finished lower thanks to a strengthening dollar. The greenback gained ground against most of its foreign rivals, bolstered by economic uncertainty following the unexpected rise in initial jobless claims. In addition, the malleable metal was pressured lower by the latest demand-related data from India - the world's largest bullion consumer in 2008. According to Reuters, a dealer at a private bank in India said clients were looking to buy gold at $930 an ounce. Against this backdrop, December-dated gold surrendered $3.10, or 0.3%, to finish at $941.70 an ounce.

 

Singapore Market Recap

Singapore shares close 1.46% higher

Singapore shares closed 1.46 per cent higher Thursday, cheered by gains in Chinese stocks, dealers said.

The blue-chip Straits Timex Index (STI) climbed 36.79 points to 2,559.57 as it rebounded from the previous day's loss.

Volume totalled 2.35 billion shares worth S$1.61 billion. There were 357 gainers, 140 decliners and 791 issues were even.

"After such a big selloff (recently), there should be some base-building," a dealer with a local brokerage said.

"I see the STI coming down to about 2,400 eventually. If it can sustain above that level, the uptrend may resume, but if it goes below, people might start selling again."

Among the blue chips, Singapore Airlines gained 18 cents to S$12.90 and Singapore Telecom dipped one cent to S$3.13.

Property developer CapitaLand was up 10 cents to S$3.66, computer chip-maker Chartered Semiconductor added six cents to S$2.33 and container shipping company Neptune Orient Lines advanced one cent to S$1.62.

Bank stocks closed higher, with DBS up 10 cents to S$12.68, United Overseas Bank rising 24 cents to S$16.36 and Oversea-Chinese Banking Corp climbing 15 cents to S$7.83.

 

BUSINESS TIMES:

- With revisions to development charges (DC) due on Sept 1, some property pundits say that the Chief Valuer (CV) may have a challenge on her hands, given the shift in the direction of the residential property market.

- Singapore Petroleum Company - now a subsidiary of PetroChina - has suspended its hunt for two top honchos to head its oil and gas exploration and production (E&P) operations pending the completion of a mandatory general offer by the Chinese oil giant tomorrow, BT understands.

- Audit committees tend to seek auditors who are independent from management, able to meet deadlines, and who communicate openly on audit issues.

- ASL Marine Holdings posted yesterday a sharply reduced quarterly net profit due to an impairment loss on vessels.

- The difference between distributable income and distribution per unit (DPU) became sharply obvious to investors when Rickmers Maritime Trust (RMT) became the last of the three SGX-listed shipping trusts to release second-quarter results at the end of last week.

Hiring trends in the fast-moving consumer goods (FMCG) sector seem to suggest the industry is less affected by the recession than others. Experienced professionals with FMCG experience are still very much sought after, according to recruitment consultancy Robert Walters.

- Three senior lawyers here, including Rajah & Tann managing partner Senior Counsel Steven Chong, have been appointed judicial commissioners of the Supreme Court, the Prime Minister's Office announced yesterday.

- More than three quarters of the shops at the Marina Bay Sands (MBS) integrated resort have been let, the resort's management said yesterday.

 

THE STRAITS TIMES: 

- The chances of the region being shrouded in a bad haze this year have gone up a notch.

- Temasek holdings chief executive Ho Ching is 5th on Forbes magazine's new list of powerful women, beating First Lady Michelle Obama and Secretary of State Hillary Clinton, both of whom didn't break the top 30.

- Education Minister Ng Eng Hen on Wednesday responded in detail to Nominated MP Viswa Sadasivan's motion that the House stay mindful of tenets in Singapore's Pledge when it debates national policies.

 

Market News - 20 Aug 2009

Thursday, August 20, 2009


U.S. and European Market Roundup

  • The DJIA up 61.22 points to 9,279.16 points.
  • U.S. stocks rose on Wednesday, shaking off a slide in China's equity market, as investors responded favorably to a surprising drop in crude oil stockpiles that might suggest an improving demand outlook.
  • European equities ended lower on Wednesday, with banks and autos leading the fall, as investors scaled back their trading positions after heavy losses in Asia and on concerns about the pace of the global economic recovery.

Macro and Corporate New

  • Property developer Mah Sing Group posted a 38% drop in its fiscal second-quarter net profit from a year ago, as last year's gain is boosted by a large property sale.
  • TDM, a plantation group owned by the Terengganu state government, is investing RM114 mln to set up its fourth hospital and meet growing demand for healthcare on the east coast.
  • Kencana Petroleum's wholly owned subsidiary, Kencana HL Sdn Bhd has been awarded a contract from Afcons-Gunanusa joint venture, a company based in Mumbai, India for the construction of jackets for offshore process platform..

Technical Analysis Training Program (23 Aug 2009) Penang by CIMB

Wednesday, August 19, 2009

CIMB are pleased to announce that there will be a FREE preview entitled Technical Analysis Training Program organised by ChartNexus Pte Ltd and supported by CIMB Investment Bank Berhad in Penang.

 

In this seminar, Mr William from ChartNexus will share his view on the local market outlook. Mr William has an extensive analytical skill and writes regularly on the regional market outlook. He is a core member of the ChartNexus Team of Trainers in Malaysia and has trained thousands of investors in his training sessions. William is also a key figure in the after-course support program leading charges such as graduate gatherings.

 

Details:

 

Date

23rd August 2009 (Sunday)

Time

9.30 am – 11.30 am

Venue

Function Hall 1

 

Gurney Hotel, Penang

 

Don’t miss this seminar to learn more about the investment opportunities in the current market trend.

 

Please register at http://www.chartnexus.com/events/details.php?eid=2808 by 21st August 2009 (Friday).

 

Registration is on a first-come-first-serve basis.

 

Market News - 19 Aug 2009


U.S. and European Market Roundup

  • The DJIA up 82.60 points to 9,217.94 points.
  • U.S stocks rose on Tuesday, rebounding after sharp losses in the previous session, as better-than-expected results from big retailers encouraged investors to get back into the market.
  • European equities ended higher on Tuesday after hitting a two-week low in the previous session, with stronger crude oil prices supporting energy shares and Swedbank leading the banking sector higher.

Macro and Corporate New

  • Malaysia saw manufacturing sales dip 25.5% in June 2009 to RM39.3 bln compared with a year ago, led by a drop in basic iron and steel products.
  • Proton Holdings's net profit in the first quarter to June 30 2009 rose marginally to RM54.6 mln from RM52.0 mln a year ago despite the slightly lower sales volume.
  • Transmile Group's net loss narrowed to RM449,000 in the second quarter to June 30 this year, from a net loss of RM21.0 mln a year ago. This is helped by unrealised foreign exchange gain of RM11.2 mln on U.S Dollar loans.

Market News - 18 Aug 2009

Tuesday, August 18, 2009


U.S. and European Market Roundup

  • The DJIA down 186.06 points to 9,135.34 points.
  • U.S stocks suffered their worst loss in seven weeks on Monday as weak data from Japan dampened hopes about the economy's growth.
  • European shares fell to their lowest close in more than two weeks on Monday, as investors took profits, worrying that a recent rally was not supported by economic data.

Macro and Corporate New

  • Pos Malaysia's net profit for the second quarter to June 30 this year eased marginally to RM15.9 mln from RM16.6 mln a year ago while revenue, however, rose to RM227.3 mln from RM223.2 mln in the same quarter in 2008.
  • Alliance Financial Group's net profit dropped by more than half in its fiscal first-quarter, due to lower operating profit, higher allowance for losses on loans and higher provision for impairment on an investment security.

Market News - 17 Aug 2009

Monday, August 17, 2009


U.S. and European Market Roundup

  • The DJIA down 76.69 points to 9,398.19 points.
  • U.S stocks fell broadly on Friday, as the major indexes snapped a four-week streak of gains after weak consumer sentiment data fueled concerns about the strength of an economic recovery.
  • European shares fell on Friday, ending four weeks of gains, pressured by weak U.S consumer confidence data, which raised questions about the pace of recovery in the world's largest economy.

Macro and Corporate New

  • Parkson Corp Sdn Bhd will increase its total retail space by 11% this year with the addition of four new stores. The four new openings, costing some RM18 mln to RM20 mln, will see Parkson operating 36 stores with a combined retail space of 3.7 mln sq ft.

Market News - 14 Aug 2009

Friday, August 14, 2009

U.S. and European Market Roundup 

·  The DJIA up 36.58 points to 9,398.19 points.

·  U.S stocks rose on Thursday as better-than-expected earnings by Wal-Mart Stores Inc helped offset disappointing government numbers on retail sales and jobs while investors sent stocks higher for a second day in a row Thursday, giving all the major indexes a moderate boost and adding to the gains that followed upbeat comments from the Federal Reserve a day earlier. 

·  European shares closed higher on Thursday after France and Germany unexpectedly reported economic growth, but gains were scaled back after data in the United States was less upbeat.

 

 Macro and Corporate New

·  AMMB Holdings is maintaining a net profit target of between RM800 mln and RM900 mln for the current fiscal year despite posting an unexpectedly strong first quarter performance.

 

Market News - 13 Aug 2009

Thursday, August 13, 2009

U.S. and European Market Roundup 

·  The DJIA up 120.16 points to 9,361.61 points.

·  U.S stocks powered higher on Wednesday as the Federal Reserve said it saw signs of a more stable economy. Stocks had been on track to close at their highest level in 10 months, led by technology and financials, but shares lost steam in the last half hour of trading. 

·  European shares ended higher on Wednesday after slipping in the past two days, with impressive results from E.ON boosting utilities and banks up ahead of Federal Reserve statements on the state of the U.S. economy.

 Macro and Corporate New

·  Bumiputra-Commerce Holdings raised this year's return-on-equity (ROE) target to between 14 and 15 per cent, after reporting a higher second quarter profit.

 

A World Of Opportunities In Futures Market

Wednesday, August 12, 2009

Equities & Futures Seminar (Mandarin) in Penang - 15 Aug 2009

CIMB are pleased to announce that there will be a FREE seminar in Mandarin entitled Equities & Futures Seminar organized by Grandpine Capital Sdn Bhdand supported by CIMB Investment Bank Berhad in Penang.

 

In this seminar, Mr Winson Hoo and Mr Chen J.S. of Grandpine Capital will share their views on Market Outlook, Malaysia Futures Market and Equities Market.

 

The speaker in this seminar, Mr Winson Hoo, is the Vice-President of Knowledge Investment Community in Malaysia. He is currently the chief instructor of Grandpine Capital and has conducted more than 200 investment talk and classes in Malaysia.

 

Seminar Details:

 

Date

15th August 2009 (Saturday)

Time

2.00 pm – 6.00 pm

Venue

Berjaya Georgetown Hotel

Burmah Road

Penang

 

Don’t miss this opportunity to find out more investment opportunities in the current market trend.

 

For registration, please call 03 – 7727 0671. Registration is on a first-come-first-serve basis by 14th August 2009 (Friday).

 

Market News - 12 Aug 2009

.S. and European Market Roundup 

·  The DJIA down 96.50 points to 9,241.45 points.

·  U.S stocks fell on Tuesday after a prominent banking analyst warned the sector's fundamentals have yet to improve and an unexpectedly large drop in wholesale inventories raised worries about an economic recovery. 

·  Europe stock declined the most in two weeks as a retreat by financial companies and basic-resource producer’s overshadowed better-than-estimated earnings from International Power Plc.

 Macro and Corporate New

·  AMMB Holdings, the country's fifth largest banking group, posted a 27% increase in its first-quarter net profit, although it more than doubled the money set aside to cover potential bad loans.

·  Malaysia Building Society (MBSB) a mortgage provider, said its second quarter net profit fell 41 per cent to RM8.43 mln due to higher provisions and taxes.

 

Market News - 11 Aug 2009

Tuesday, August 11, 2009

U.S. and European Market Roundup 

·  The DJIA down 32.12 points to 9,337.95 points.

·  U.S stocks fell on Monday, but were off their session lows, as investors booked profits following a four-week rally that took the broad S&P 500 index to a 10-month high on Friday. 

·  European shares fell on Monday after hitting their highest close in more than nine months on Friday, as miner Rio Tinto came under pressure in the China spy case and Volkswagen led the auto sector lower.

Macro and Corporate New

·  Bandar Raya Developments (BDRB) said second quarter net profit almost tripled to RM40.6 mln, mainly helped by better property sales and the recovery of its manufacturing business.

·  Maybank has opened its fifth branch in Cambodia, as it seeks a greater share of the country's growing economy.

·  Ahmad Zaki Resources, a construction group, has won a RM225.1 mln contract from the Public Works Department to build the campus for University Darul Iman in Besut, Terengganu.

 

Market News - 10 Aug 2009

Monday, August 10, 2009

U.S. and European Market Roundup 

·  The DJIA up 113.81 points to 9,370.07 points.

·  Major stock indexes barreled higher by more than 1% on Friday after the government said the U.S unemployment rate unexpectedly fell in July for the first time in 15 months and that employers cut fewer jobs. 

·  European shares hit their highest close in more than nine months on Friday, reversing earlier losses, after unemployment in the United States rose less than expected in July.

 

Macro and Corporate New

·  Bank Islam Malaysia is seeking a controlling equity stake in Indonesia's PT Bank Muamalat to expand into the world's most populous Muslim nation and the sources said it is already engaged in talks with several shareholders of the Indonesian islamic bank.

·  Dijaya Corp is targeting to launch Tropicana Residences, its first foreign housing project worth almost RM1 bln in Hyderabad, India, in the second half of next year.

 

Market News - 07 Aug 2009

Friday, August 7, 2009

U.S. and European Market Roundup 

·  The DJIA down 24.71 points to 9,256.26 points.

·  U.S. stocks fell on Thursday as investors turned cautious a day ahead of a crucial government report on July employment, and took profits after recent strong gains. 

·  European equities closed higher for the 14th session in 19 on Thursday, supported by a slew of soothing earnings results and encouraging macroeconomic numbers, with financial shares leading the advance.

Macro and Corporate New

·  Malaysia Airlines (MAS) is back in the black with a record second quarter net profit of RM876 mln, helped by gains on fuel hedge contracts.

·  Rubber glovemaker Latexx Partners will complete eight more lines by year-end as its orders have stretched until three months ahead.

 

Market News - 06 Aug 2009

Thursday, August 6, 2009

U.S. and European Market Roundup 

·  The DJIA down 39.22 points to 9,280.97 points.

·  U.S stocks slipped on Wednesday after weak data on the services sector and private payrolls cooled recent optimism the recession was retreating, but the market finished off its lows as investors ventured into riskier financial shares. 

·  European shares ended lower on Wednesday after staying in positive territory during most of the day, with investors selling stocks, following data showing the U.S services sector contracted more than expected in July.

 Macro and Corporate New

·  TSR Capital, a construction company, has won the Negri Sembilan state government's approval to develop a RM1.8 billion tourism project over 10 years.

·  AXIATA Group is collaborating with Dubai-based FRiENDi Group FZ-LLC to provide services to expatriates in markets where both operate. FRiENDi is a mobile virtual network operator (MVNO).

 

Market News - 05 Aug 2009

Wednesday, August 5, 2009

U.S. and European Market Roundup 

·  The DJIA up 33.63 points to 9,320.19 points.

·  U.S stocks edged higher on Tuesday, led by the financial sector as economic data pointed to a sustained if slow recovery from the recession, taking the Dow and the S&P 500 to nine-month highs. 

·  European shares closed lower on Tuesday, slipping back from the nine-month high reached in the previous session, with some banks giving back a little of their recent hefty gains.

 Macro and Corporate New

·  Bread maker Silver Bird Group, which is on its way to record a full-year profit after three consecutive years of losses, is confident the newly-launched High5 Sure Value 500 bread will contribute significantly to its business.

·  PT Excelcomindo Pratama Tbk (XL) of Indonesia, which is a unit of Axiata Group, has proposed a rights issue to raise some US$300 mln to reduce borrowings and improve its capital structure. Axiata said the rights issue would consist of equity and mandatory convertible notes (MCNs).

 

Market News - 04 Aug 2009

Tuesday, August 4, 2009

US Market Recap

 

Stocks skyrocketed right out of the gate this morning, as the Street interpreted upbeat economic data as a surefire sign of healing. In the U.S., the Institute for Supply Management's (ISM) index of national manufacturing activity rose to 48.9 in July, marking its highest level in nearly a year. What's more, the data showed that construction spending rose 0.3% in June, exceeding economists' predictions for a 0.5% decline. The encouraging figures echoed those from across the pond and in the Far East, as the euro zone factory Purchasing Managers' Index (PMI) was revised higher in July, and manufacturing growth in China hit a 12-month high. 

In the equities market, stronger-than-expected earnings reports from the banking sector bolstered the bulls, with financial firms HSBC Holdings (HBC) and Barclays (BCS) leading the pack. Meanwhile, Ford Motor Co. (F) touched a fresh 52-week peak after the automaker reported its first year-over-year sales increase in nearly two years. By the close, the major market indices tagged new year-to-date highs, with both the S&P 500 Index (SPX) and Nasdaq Composite (COMP) powering past psychologically significant round-number resistance.

The Dow Jones Industrial Average (DJIA – 9,289.56) rallied to triple-digit gains within the first hour of trading today, eventually settling on a gain of 115 points, or 1.3%. Only four of the Dow's 30 blue chips bucked the trend higher, led by Kraft (KFT) and Coca-Cola Co. (KO). Pacing the advancing issues were Alcoa (AA) , Travelers (TRV), and Bank of America (BAC).

The S&P 500 Index (SPX – 1,002.63) soared 15.2 points, or 1.5%, higher today, muscling past round-number resistance at the 1,000 level for the first time since November 2008. In that same fashion, the Nasdaq Composite (COMP – 2,008.61) added 30.1 points, or 1.5%, by the close, notching its first close atop the 2,000 level since October 2008.

 

Crude Oil Futures

 

Crude futures skyrocketed to their highest level in nearly two months today, thanks to upbeat manufacturing data from the U.S. and China. The CLSA Asia Pacific Markets said its China manufacturing Purchasing Managers' Index (PMI) rose to a one-year high of 52.8 in July, compared to 51.8 in June, as manufacturing activity in the country expanded at the fastest pace since May 2008. In addition, a Xinhua newsletter reported that China's crude inventories declined 2.7% in June, marking the first month-over-month pullback in four months. What's more, oil's surge came despite the latest data from the Organization of Petroleum Exporting Countries (OPEC), which indicated that output from the cartel rose slightly in July. By the close, September-dated crude added $21.3, or 3%, to end at $71.58 per barrel.

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