TODAY

To all Malaysians of the Muslim faith, I wish you Selamat Hari Raya Aidil Adha.

Mata kadang salah melihat.

Mulut kadang salah berucap.

Hati kadang salah menduga.

Maafkan segala kekhilafan.

Mohon maaf zahir dan batin.

Selamat Hari Raya Aidil Adha.

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Posted in AUG

TODAY

Malaysia Stock Exchange closed on 12 Aug – Replacement Hari Raya Haji.

Spore market closed on : 09 Aug – Independence Day. 12 Aug – Replacement Hari Raya Haji.

Please be informed that The Edge Financial Daily will be taking a break on Monday, August 12, 2019 in conjunction with Hari Raya Aidiladha. Publication will resume on Tuesday, August 13, 2019.

9 Aug (overnight)

  • White House holds off decision to allow US companies to do business with Huawei, after China orders halt of US agriculture imports
  • Trump calls on Fed to make “ substantial” rate cuts to allow dollar to fall against foreign currencies
  • RBA Governor said prepared to lower rates further to push inflation higher
  • Likelihood US recession in next 12 months rose to 35% in Aug (31% previously) according Bloomberg survey
  • US stocks recovered after strong yuan fixing, but futures fell as trade tensions resurface
  • Oil rebounds from lowest level since Jan with Brent at US$57/bbl
  • USD/MYR at 4.1855, first resistance 4.1975, 1st support at 4.1475

Advance Synergy Bhd is buying back the Holiday Villa Cherating property from Amanah Raya Bhd for RM22.96mil. Well, well, you made the decision to get out and now you’re essentially saying you want to remarry an ex-wife 13 years after the fact.

Foreigners remain net buyers of domestic bonds for the second month in July, recording RM5.7 billion compared with RM6.6 billion in June. This lifted foreign holdings of government bonds (Malaysian Government Securities and Government Investment Issues) to 22.2% as at end-July, the highest level in four months since March, UOB said in a note yesterday. If the dollar goes up for a few years, international bonds will not do as well. If the dollar goes down for a few years, international bonds will do better. The exchange rate is a key factor. Just saying.

Maxwell will be the third China-based company to be de-listed in two weeks’ time on Aug 22. The China-based sport shoes maker has failed to comply with its obligation to regularise its financial health within the stipulated time frame. Ahhh, rotten apple again. Bursa Malaysia should focus on attracting foreign companies with good fundamentals instead of simply increasing the number of firms listed.


Posted in AUG

TODAY

08 Aug 19 (overnight)

  • President Trump’s tweet:
  • “Our problem is a Federal Reserve that is too proud to admit their mistake of acting too fast and tightening too much (and that I was right!). They must Cut Rates bigger and faster, and stop their ridiculous quantitative tightening NOW,”
  • Fed’s Evans:
  • On basis of low US. inflation alone, Jul interest rate cut was justified, and more policy accommodation needed
  • Economic headwinds mean cutting rates further could be reasonable
  • Brinkmanship trade negotiations mean volatility, ‘we have to be paying attention’
  • Sees ‘mid-cycle adjustment’ as fed now aiming for 50 basis points below neutral rate, rather than 50 bps above
  • Long-run neutral rate as 2.75%, could be lower now because of headwinds
  • Took note of overnight rate cuts in Asia, will be digesting ‘everything that’s going on’
  • RBNZ:
  • Cut rates by 50bps to 1.00%, vs -25bp expected
  • Committee agreed larger initial monetary stimulus would best ensure meeting inflation and employment objectives.
  • Growth headwinds are rising, global economic growth activity continues to weaken
  • Employment, inflation would likely ease in absence of additional stimulus
  • Post RBNZ press conference by Governor Orr:
  • Today’s decision doesn’t rule out any future action
  • Lowering the interest rate is “completely sensible” at this point in time
  • Over recent days MPC became convinced “more, sooner” better to reach targets
  • Easily within the realms of possibility that we might have to do negative interest rates
  • Today’s cut reduces the risk of having to use negative interest rates
  • RBA’s Bullock
  • Financial health of businesses looks sound, no threat to banks
  • Banks dealing with mortgage arrears in some regions, not a threat to stability
  • Difficulties in retail sector unlikely to pose risk to the banking sector
  • Profitability in mining sector highest in the past 10 years, balance sheets appear well placed to absorb shocks
  • Small businesses face tighter credit conditions
  • BOT:
  • Unexpectedly cuts policy rate by 25 bps to 1.50% (5-2 vote)
  • GDP growth seen lower than forecast
  • Rate cut to help economy, inflation
  • Worried about baht strength, will consider using additional tools to curb baht
  • Risks to financial stability remain
  • China reserves:
  • FX reserves of $3.104 trln at end-Jul vs $3.119 trln at end-Jun (reuters poll $3.101 trln)
  • Fall in China’s FX reserves in Jul due to changes in foreign exchange rates and prices of assets
  • China’s improving momentum and resilient real economy will support stabilisation of FX reserves
  • Gold reserves $88.876 bln at end-Jul vs $87.268 bln at end-Jun
  • HKMA:
  • Linked Exchange Rate System (LERS) operating normally
  • Not seeing large capital flows in and out Hong Kong
  • BI’s new Deputy Governor Destry Damayanti:
  • BI will continue to set accommodative monetary and macroprudential policy
  • Markets should not panic if macroeconomic stability is maintained
  • Continue to create space to expand bank liquidity, support loan growth
  • “Direction of monetary policy easing” to last long into the future
  • Markets:
  • US stocks rebounded intraday sharp losses at opening to close little changed, S&P 500 +0.1%, Dow -0.1%.
  • US 10-yr yield rebounded sharply after touching 1.593% to close 1.734% (+3.2bp).
  • NZD/USD sank over 2% after RBNZ but later pared losses to close 0.6446 (-1.2%).
  • USD/CNH posted an ‘inside day’, traded between 7.05 and 7.10 before closing at 7.0859 (+0.5%).
  • USD/SGD rebounded off 1.38 for a second day to marginally higher at 1.3826 from 1.3816.
Posted in AUG

TODAY

07 Aug 19 (overnight)
– Fed’s Bullard (voter):  – Trade uncertainty likely to linger for years to come  – Fed can’t react to daily ‘give and take’ between major trading partners like US and china  – Monetary policy ‘considerably’ looser today than as of late last year  – Further rate action may be ‘desirable,’ but economy still adjusting to Fed’s shift as of early this year from raising rates to lowering them  – Fed policy has already adjusted to the fact that trade uncertainty will remain high  – Does not see conditions that would warrant a half a percentage point cut all at once  – Will have to see how data ‘rolls in’ before deciding whether appropriate to reduce rates at fed’s Sep meeting  – Responding to each additional trade threat would destabilize monetary policy and create more problems than it solved
– President Trump’s tweet:  – “Massive amounts of money from China and other parts of the world is pouring into the United States for reasons of safety, investment, and interest rates! We are in a very strong position. Companies are also coming to the U.S. in big numbers. A beautiful thing to watch!” 
– White House economic advisor Kudlow:  – US is still planning on Chinese trade team coming to US in Sep  – Trump would like to continue negotiations with China, wants to make ‘right deal’ with China    – Things could change with respect to additional US tariffs on Chinese goods  – Trump open to possible changes on new tariffs if things go well with China talks  – US cannot tolerate depreciation of China’s yuan  – Trump administration not presently considering any other steps regarding China’s currency moves
– White House trade advisor Navarro:  – Calls on Fed to cut interest rates by another three-quarters of a point or full point by end of year to bring US rates into line with rates elsewhere

– RBA left rates unchanged at record low of 1.00%:  – To adjust policy if needed to support sustainable growth  – Will monitor developments in labour markets closely  – Rates to remain low for extended period  – Australian economy expected to grow at 2.5% in 2019  – Main domestic uncertainty continues to be outlook for consumption  – To take longer than expected for inflation to reach 2 pct  – AUD at lowest level of recent times
– BOK meeting minutes:  – Most board members saw a growing diplomatic dispute with Japan as a risk to South Korea’s economic growth but it was not the main driver behind rate cut decision
– HKMA:  – Says on its official Facebook page it denies rumours on lending $400 bln in foreign currency reserve to mainland China
– S&P:  – Risks prevail for emerging markets, despite Fed’s more dovish stance – “Risks loom after the fragile truce between US and China is now tumbling”, as macroeconomic conditions weaken in key EM economies – Macroeconomic conditions remain soft and outlooks have weakened across key emerging-market economies – Expect the Strait of Hormuz to remain open
– Markets:  – US stocks rebounded from worst day of 2019, S&P 500 +1.3%, Dow +1.2%. – US 10-yr Treasury yields went to low of 1.672% before recovering to close 1.716% (-2bp). – Brent crude closed in a bear market, down 21% from Apr’s peak. – USD/CNH touched a high of 7.1397 before paring gains to close lower at 7.0523. – USD/JPY rebounded for the first time in four sessions, closing high at 106.47 from 105.94. – USD/SGD pulled back from session highs of 1.3867 to close lower at 1.3814 from 1.3843.

Posted in AUG

TODAY

Xingquan International Sports Holdings Ltd, the first China-based company that was listed on Bursa Malaysia, which just marked its 10th year on Bursa Malaysia last month, is going to be delisted in less than two weeks, together with China Stationery Ltd. The two China-based companies is facing regulatory action after continuously failing to issue their annual reports and audited financial statements, months after the stipulated time frame specified under the listing requirements. Both companies are now going to be delisted on Aug 16, unless they submit an appeal to Bursa Securities by Aug 13, according to TheEdge. Clearly, investors who had invested in these companies on expectations that they would ride on China’s robust economic growth in the past decade, have been let down by these foreign IPOs.

Posted in AUG

TODAY

The sky may not be falling, but Monday’s bursa made it feel that way.

Posted in AUG

TODAY

Ah yes, many old people have to live in poverty because of the steady rise in the cost of living. Everything costs something. You know, there are many disadvantages of living in an urban environment such as the cost of living is high. Goods and services are quite expensive. Vegetables and fruits that cost next to nothing in the villages are exorbitant in the urban areas. That’s it! I’m tired! Tired is an understatement!! I’m exhausted!

Posted in AUG

TODAY

I may not be the kind of person you want me to, but I will always be there for you.

 

Japan’s cabinet on Friday approved a plan to remove South Korea from a list of countries that enjoy minimum export controls, a move likely to escalate tensions fueled by a dispute over compensation for wartime forced laborers, Reuters has said. Counting to 10 and taking deep breaths may help.

 

Uncertainty about the proposed takeover of Gamuda Bhd’s four urban highways remains as the Aug 30 deadline for the definitive agreements approaches. Although the Finance Ministry has been consistent in its view that the government could afford the RM6.2bil deal, there have been comments by the Prime Minister that the government did not have the money to pay for it. Ever since the deal was announced in June, there have been conflicting opinions on the status of the takeover, according to the STAR. There’s considerable uncertainty as to whether the government’s job creation strategies will work.

 

Tun Dr Mahathir Mohamad is adamant about keeping his promise to step down once the country is stable and on firmer ground, despite rising calls that he serve his full term as Prime Minister, the STAR has said. Asked if he would not even consider the idea to stay on for a term during an interview with a Turkish international news channel, Dr Mahathir replied: “(not) unless they push me to a corner, put a gun to my head and say you continue until you finish your term. “Unless you do that, I will step down. I will keep my promise, ” he said. I’m not interested in politics. I lose interest the microsecond it ceases to be emotional, when something becomes a political movement. What I’m interested in is emotions – Bjork

 

Posted in AUG

TODAY

Don’t gamble! Take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don’t go up, don’t buy it.  Unfortunately, that’s easier, said than done!

Posted in AUG

TODAY

HIBISCS : Hibiscus Petroleum Bhd shares rose 3.85% in active trade this morning after its unit SEA Hibiscus Sdn Bhd successfully achieved first oil after drilling and completing the SJ-105A well on July 16, which is part of the North Sabah Production Sharing Contract (North Sabah PSC). At 9.07am, Hibiscus rose 4 sen to RM1.08 with 5.98 million shares done for a market capitalisation of RM1.72 billion. This is the first of three infill wells being drilled as part of the St Joseph infill drilling project in Malaysia, which is part of the 2011 North Sabah Enhanced Oil Recovery PSC. SEA Hibiscus assumed operatorship of the North Sabah PSC on March 31, 2018, as a 50% joint-venture (JV) working interest partner with Petronas Carigali Sdn Bhd, The Edge has said. Oil is like a wild animal. Whoever captures it has it.  

 

Well, whatever it may be…Tycoon Tan Sri Syed Mokhtar Albukhary may have already owned a 19.72% stake in Malaysia’s oldest Malay daily Utusan Melayu (M) Bhd before the acquisition earlier this week by Nilam Setar Sdn Bhd that’s linked to him, according to The Edge. I think we should look at the market value of our investments the same way we look at the market value of our homes.

 

Oh wow… President Donald Trump, his company and three of his children must face a class-action lawsuit in which people claim they were scammed into spending money on fraudulent, multilevel marketing ventures and a dubious live-seminar program, Bloomberg has said. The lawsuit is Doe v. Trump Corp., 18-cv-9936, U.S. District Court, Southern District of New York (Manhattan). I did this, I did that, I didn’t do this, I didn’t do that. Phew! 

Posted in JUL