Bank Negara to issue guidelines on cryptocurrencies
Source: The Star
SC cautions investors over initial coin offering risks, public urged to seek legal advice
BNM to regulate e-KYC remittances, new standards by October
Source: The Star
KLCI starts September on strong footing
KUALA LUMPUR: Blue chips kicked off September on a firm note early Tuesday after the long break as the FBM KLCI rose to 1,780, powered by gains in Tenaga Nasional, Axiata and Sime Darby but wether it can hold on to the gains due to weaker key Asian bourses remains to be seen.
At 9.24am, the KLCI was up 3.18 points or 0.18% to 1,776.32. Turnover was 354.11 million shares valued at RM195.84mil. There were 220 gainers, 236 losers and 233 counters unchanged.
However, other key Asian markets were under pressure on Tuesday after a global selloff the previous day in the wake of North Korea's most powerful nuclear test at the weekend, while safe havens such as gold remained firm, Reuters reported.
MSCI's broadest index of Asia-Pacific shares outside Japan was off 0.05% having shed 0.8% the previous day, with South Korea's Kospi off 0.1% after sliding to three-week lows on Monday. Japan's Nikkei ticked down 0.2%.
At Bursa Malaysia, Tenaga jumped 24 sen to RM14.52, Axiata 16 sen to RM5.09, Sime Darby 14 sen to RM9.14. PPB Group and MAHB added 12 sen each to RM16.80 and RM9.12.
Among the consumer stocks, BAT rose 30 sen to RM44.48, Kawan Food added 22 sen to RM3.60 and Heineken 14 sen to RM18.94. Ajinomoto fell RM1.14 to RM20.10.
Petron Malaysia added 19 sen to RM9.07 and Hengyuan 12 sen to RM7.64.
Hong Leong Bank fell 24 senn to RM15.20 and CIMB 23 sen to RM6.85 on profit taking.
China stocks were among the most active with Sino Huann extending its gains from last week, up 3.5 sen to 19 sen with over 69 million shares done, HG Global 3.5 sen to 12.5 sen and CSL 0.5 sen to 4.5 sen.
However, Hong Leong Investment Bank (HLIB) Research cautioned that with the extended concerns over the North Korea issue, it expects market volatility to heighten.
At the same time, investors should focus on the upcoming events such as European Central Bank meeting on Thursday and FOMC meeting on Sept 20-21.
“Meanwhile, on the local front, we think the market could be trending on a downward bias mode following the events over the weekend.
“Nevertheless, buying support may emerge on stocks with better-than-expected corporate results that were released last week. The KLCI's trading range may be located between 1760-1,790 levels this week,” said HLIB Research.
Source: The Star
SC bans seven foreigners and corporations from trading on Bursa
Source: The Star
Asian stocks, oil rise; Euro surges to two-and-a-half year high
SINGAPORE: The euro hit a 2 1/2-year high early on Monday after European Central Bank President Mario Draghi refrained from talking down the single currency, while oil prices rose after Hurricane Harvey struck at the heart of the U.S. energy industry.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1 percent, and Japan's Nikkei advanced 0.2 percent.
S&P E-mini futures <ESc1> slipped slightly.
Speaking at the U.S. Federal Reserve's annual conference in Jackson Hole, Wyoming, Draghi said the ECB's ultra-easy monetary policy was working and the euro zone's economic recovery had taken hold, but didn't cite the common currency's strength as a concern or discuss monetary policy specifically.
The euro <EUR=EBS> rose to as high as $1.9665 early on Monday and was last up 0.3 percent at $1.1955, extending Friday's 1 percent jump.
"The EUR bulls will feed off anything they can get that suggests a less accommodative stance going forward," Chris Weston, chief market strategist at IG in Melbourne, wrote in a note.
The dollar was slightly lower at 109.29 yen, adding to Friday's 0.2 percent slide after Federal Reserve Chair Janet Yellen, speaking at the same event as Draghi, also failed to address policy, focusing more on financial stability.
Yellen's remarks disappointed some investors who had hoped for hints on the Fed's plans for interest rates.
The 10-year U.S. Treasury yield <US10YT=RR> closed at 2.171 percent on Friday, from Thursday's 2.194 and further undermining the dollar's yield appeal.
But lower bond yields helped give stocks a slight boost, with the Dow <.DJI> and the S&P 500 <.SPX> both ending about 0.15 percent higher on Friday, although the Nasdaq <.IXIC> closed about 0.1 percent lower.
Investors see a 40.7 percent chance of a rate hike by the Fed in December, down from 45.6 percent a month ago, according to the CME FedWatch tool.
Brent <LCOc1>, the global crude oil benchmark, rose 0.6 percent to $52.72 a barrel, adding to Friday's 0.7 percent increase.
U.S. oil <CLc1> pulled back slightly to $47.82, after Friday's 0.9 percent gain.
The U.S. Gulf Coast, which includes Texas, is home to nearly half the United States's refining capacity, and the reduced output could affect gasoline supplies across the U.S. Southeast and other parts of the country.
Operators had shut down several refineries and evacuated offshore platforms last week as the storm crossed the Gulf of Mexico.
Spot gold <XAU=> crept up 0.15 percent to $1,293.04 an ounce early on Monday, extending Friday's 0.4 percent gain. - Reuters
Gradual steps to control shadow banking problem
Ringgit volatility rises before U.S. CPI report
KUALA LUMPUR: A gauge of anticipated ringgit volatility rises for a second day before a U.S. inflation report on Friday that may provide guidance about when the Fed will resume raising interest rates.
* 1-month implied volatility for US/MYR climbs 1bp to 5.72%
* USD/MYR little changed at 4.2847 after rising 0.2% Monday
** Support 4.2760, 4.2663, 4.2505; resistance 4.3022, 4.3055, 4.3217
** Traders have reduced short US dollar positions after last week’s NFP report and this may continue if there’s a strong print in U.S. inflation data this Friday
Still, emerging markets remain attractive in the face of rising interest rates in the developed world as growth is holding up and inflation remains contained
Ringgit is among EM FX that Morgan Stanley favours, according to a report released Monday
Co. suggests using Europ to fund purchases of EM currencies as EM remains fundamentally in good shape and valuations look cheap against EUR
Malaysia’s 10-year goverment bond yield little changed at 4%
Foreign ownership of Malaysian sovereign and corporate debt securities fell 1.2% to RM192bil in July from previous month: central bank data showed late MondayThe souece
Although there’ll be sizable bond redemptions from August to October, there are unlikely to be significant maturity-driven outflows as foreign ownership of Islamic securities is low and holdings of other notes have been reduced, Winson Phoon, a fixed-income analyst at Maybank Investment Bank, wrote in note Monday
Second half will be challenging as external risks such as a change in market pricing on the pace of further Fed hikes may shift broad EM flow sentiment
Global funds bought net RM151.2mil of Malaysian stocks last week, a 4th week of purchases: MIDF Amanah Investment - Bloomberg
Source: The Star
Bank Negara international reserves rise to US$99.1bil
KUALA LUMPUR: Bank Negara international reserves rose US$300mil to US$99.4bil as at July 31, 2017 from US$99.1bil on July 14, 2017.
The central bank said on Monday its reserves, in ringgit terms, rose to RM427bil from RM425.4bil as at July 14.
It said the reserves position was sufficient to finance 7.9 months of retained imports and was 1.1 times the short-term external debt.
The main components of the reserves are foreign currency reserves (US$93bil), International Monetary Fund reserves position US$800mil, Special Drawing Rights or SDRs (US$1.1bil), gold (US$1.5bil) and other reserve assets (US$3bil).
Source: The Star
Asia stocks inch up
TOKYO: Asian stocks edged up early on Wednesday after Wall Street indexes notched record highs, while the dollar was steady as investors awaited the Federal Reserve's policy decision later in the day for more clues on its tightening plans.
The Fed concludes a two-day meeting later on Wednesday, and is widely expected to keep interest rates unchanged.
With a rate hike not in the picture this time, the focus will be on the Fed's statement, with markets looking for signs of when the central bank will begin paring its massive bond holdings and next raise rates. A statement is expected at 1800 GMT.
"The stock markets are generally of a view that the Fed is not in too much of a hurry to normalize monetary policy. So equities would be able to take this Fed meeting in stride if the Fed's statement is in line with such views," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.
A more assertive policy message by the Fed, on the other hand, was expected to lift U.S. yields and boost the dollar.
MSCI's broadest index of Asia-Pacific shares outside Japan, rose 0.1 percent, drawing support after the S&P 500 climbed to an all-time high overnight on well-received results from McDonald's and Caterpillar in addition to bank share gains.
Caterpillar's results smashed expectations and the company raised its full-year forecast for the second time, underscoring strength across its businesses and a steady recovery in demand from China.
South Korea's KOSPI stood little changed and Australian stocks rose 0.9 percent as investors awaited inflation data. Price pressures are expected to remain mild, which would add to views that rates will remain at record lows for some time to come.
Japan's Nikkei added 0.8 percent after the dollar extended an overnight rally against the yen to pull away from seven-week lows.
The U.S. currency was last traded at 111.980 yen for a gain of 0.1 percent.
The greenback was lifted as investors gained some hope that President Donald Trump could push through his expansionary fiscal agenda, after the Senate passed a motion to proceed on a repeal of Obamacare, which Trump and Republicans have vowed to undo.
The dollar also received support from a rise in U.S. Treasury yields. Long-dated Treasury yields jumped by the most in almost five months on Tuesday as Wall Street hit new highs and on reduced demand for safe-haven bonds. [US/]
The euro was 0.1 percent lower at $1.1638, pulling back from a two-year high of $1.1712 hit on Tuesday on a stronger-than-expected German Ifo business survey.
Expectations that the European Central Bank would begin phasing out its easy monetary policy sooner rather than later have supported the common currency this month.
The dollar index against a basket of major currencies was 0.1 percent higher at 94.144 , managing to put some distance between a 13-month low of 93.638 plumbed on Tuesday.
U.S. political uncertainty has recently hurt the dollar, with the Trump administration dogged by investigations into alleged Russian meddling in the U.S. election.
In commodities, crude oil extended its surge after jumping overnight on data showing a sharp fall in U.S. crude stocks last week.
U.S. crude rose 1 percent to $48.36 a barrel and Brent added 0.7 percent to $50.56 a barrel.
Gold struggled as improved investor risk appetite in the broader markets curbed the precious metal's appeal. Spot gold was 0.1 percent lower at $1,247.25 an ounce following its ascent to a one-month peak of $1,258.79 on Monday.
Source: The Star