Malaysia: Shares end lower

MALAYSIAN shares ended lower on Tuesday with the Kuala Lumpur Composite Index slipping 10.06 points to close at 1,699.7.

Some 2.14 billion lots, valued at RM2.25 billion were traded. Gainers numbered 197 while losers numbered 726.

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Gold sinking to US$800 in worst-case outlook at Morgan Stanley

[SINGAPORE] Gold's been mauled this week as commodities sank to a 13-year low. It may get a lot worse, according to Morgan Stanley, which said that under its worst-case scenario bullion may tumble to US$800 an ounce.

 

To get there requires US policy makers to start raising interest rates, another correction in China's stock markets and a selldown of reserves by central banks, analysts including Tom Price said in a report. The metal is more likely to trade at about US$1,050 an ounce, according to the bank, which left its 2015 forecast unchanged. The price was at US$1,103 on Thursday.

Gold's fallen out of favor with investors as the Federal Reserve prepares to increase borrowing costs, boosting the dollar. Prices could drop below US$1,000 an ounce, according to Goldman Sachs Group Inc's Jeffrey Currie, while Standard Chartered Plc said it will probably extend losses. The rout in bullion helped to drag the Bloomberg Commodity Index to the lowest level since 2002 as crude oil and base metals fell.

"The backdrop for this commodity complex is deteriorating," Morgan Stanley said in the July 22 report, referring to precious metals. The bank's unchanged forecasts have greater downside risk after July's selloff and persistent weakness in China's equity markets, it said.

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Ringgit slumps to 16-year low, money changers warned against hoarding foreign currencies

Money changers should not hoard foreign currencies as this could pose risks in a volatile market, the Malaysian Association of Money Services Businesses (MAMSB) warned as the ringgit hits its lowest in 16 years.

MAMSB president Ramasamy Veeran said it was never a practice to stockpile and withhold foreign currencies in order to make a profit from the weak ringgit.

"It is not a standard practice or a norm… Further, there are risks associated in stockpiling foreign currencies in a volatile local and global market," he told The Malaysian Insider recently.

 

"The risk would be exchange rate risk whereby if there are adverse changes in currency exchange rates, the money changer could suffer a loss if they are stockpiling foreign currencies."

Ramasamy's comments come as the ringgit slid to a 16-year low on July 6, falling to 3.8092 to the US dollar.

It was last at this level from 1998 to 2005 during which it was pegged to the US dollar at 3.8 following the Asian financial crisis which was blamed on currency speculators.

MAMSB president Ramasamy Veeran said it was never a practice to stockpile and withhold foreign currencies in order to make a profit from the weak ringgit. "It is not a standard practice or a norm… Further, there are risks associated in stockpiling foreign currencies in a volatile local and global market," he told The Malaysian Insider recently. - See more at: http://www.themalaysianinsider.com/malaysia/article/ringgit-weakest-in-16-years-money-changers-warned-against-stockpiling-forei#sthash.AOGfnYUX.dpuf

MAMSB president Ramasamy Veeran said it was never a practice to stockpile and withhold foreign currencies in order to make a profit from the weak ringgit. "It is not a standard practice or a norm… Further, there are risks associated in stockpiling foreign currencies in a volatile local and global market," he told The Malaysian Insider recently. - See more at: http://www.themalaysianinsider.com/malaysia/article/ringgit-weakest-in-16-years-money-changers-warned-against-stockpiling-forei#sthash.AOGfnYUX.dpuf

Money changers should not hoard foreign currencies as this could pose risks in a volatile market, the Malaysian Association of Money Services Businesses (MAMSB) warned as the ringgit hits its lowest in 16 years. MAMSB president Ramasamy Veeran said it was never a practice to stockpile and withhold foreign currencies in order to make a profit from the weak ringgit. "It is not a standard practice or a norm… Further, there are risks associated in stockpiling foreign currencies in a volatile local and global market," he told The Malaysian Insider recently. - See more at: http://www.themalaysianinsider.com/malaysia/article/ringgit-weakest-in-16-years-money-changers-warned-against-stockpiling-forei#sthash.AOGfnYUX.dpuf

Money changers should not hoard foreign currencies as this could pose risks in a volatile market, the Malaysian Association of Money Services Businesses (MAMSB) warned as the ringgit hits its lowest in 16 years. MAMSB president Ramasamy Veeran said it was never a practice to stockpile and withhold foreign currencies in order to make a profit from the weak ringgit. "It is not a standard practice or a norm… Further, there are risks associated in stockpiling foreign currencies in a volatile local and global market," he told The Malaysian Insider recently. - See more at: http://www.themalaysianinsider.com/malaysia/article/ringgit-weakest-in-16-years-money-changers-warned-against-stockpiling-forei#sthash.AOGfnYUX.dpuf

Money changers should not hoard foreign currencies as this could pose risks in a volatile market, the Malaysian Association of Money Services Businesses (MAMSB) warned as the ringgit hits its lowest in 16 years. MAMSB president Ramasamy Veeran said it was never a practice to stockpile and withhold foreign currencies in order to make a profit from the weak ringgit. "It is not a standard practice or a norm… Further, there are risks associated in stockpiling foreign currencies in a volatile local and global market," he told The Malaysian Insider recently. - See more at: http://www.themalaysianinsider.com/malaysia/article/ringgit-weakest-in-16-years-money-changers-warned-against-stockpiling-forei#sthash.AOGfnYUX.dpuf

Money changers should not hoard foreign currencies as this could pose risks in a volatile market, the Malaysian Association of Money Services Businesses (MAMSB) warned as the ringgit hits its lowest in 16 years. MAMSB president Ramasamy Veeran said it was never a practice to stockpile and withhold foreign currencies in order to make a profit from the weak ringgit. "It is not a standard practice or a norm… Further, there are risks associated in stockpiling foreign currencies in a volatile local and global market," he told The Malaysian Insider recently. - See more at: http://www.themalaysianinsider.com/malaysia/article/ringgit-weakest-in-16-years-money-changers-warned-against-stockpiling-forei#sthash.AOGfnYUX.dpuf

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U.S. oil futures fall to 15-week low as supply glut concerns weigh

U.S. oil futures fell to the lowest level since April on Tuesday, as ongoing worries over ample supplies and high domestic oil production drove prices down.

 

On the New York Mercantile Exchange, crude oil for September delivery hit a session low of $50.13 a barrel, a level not seen since April 4, before trading at $50.39 during European morning hours, down 5 cents, or 0.09%. A day earlier, Nymex oil futures lost 77 cents, or 1.5%, to end at $50.44.

Market players looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer. The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles fell by 2.2 million barrels in the week ended July 17.

According to industry research group Baker Hughes (NYSE:BHI), the number of rigs drilling for oil in the U.S. declined by seven last week to 638, snapping two weeks of gains. Elsewhere, on the ICE Futures Exchange in London, Brent oil for September delivery tacked on 4 cents, or 0.07%, to trade at $56.69 a barrel.

On Monday, London-traded Brent futures slumped to $56.33, the lowest since July 7, before closing at $56.65, down 45 cents, or 0.79%, amid concerns a resumption of Iranian oil exports will add to a global glut. Iran and six world powers reached a long-awaited nuclear deal last week that would end sanctions on Tehran in exchange for curbs on the country's disputed nuclear program.

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Malaysia: Shares close higher on TuesdayMalaysia: Shares close higher on Tuesday

MALAYSIAN shares closed higher on Tuesday with the Kuala Lumpur Composite Index up 12.06 points to close at 1,736.19.

Some 1.66 billion lots, valued at RM1.51 billion were traded. Gainers numbered 555 while losers numbered 261.

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Ringgit forwards point to further weakness weighed by oil, 1MDB

[KUALA LUMPUR] Offshore forwards show the ringgit may weaken another 2.7 per cent in the next 12 months as Brent crude prices below a 10-year average hurt export earnings, combined with controversy over a state investment company.

Twelve-month non-deliverable forwards retreated 0.2 per cent to 3.9145 a dollar as of 11:20 am in Kuala Lumpur, data compiled by Bloomberg show. The contracts declined to a record 3.9608 on July 8. The onshore ringgit fell to its lowest this month since the Asian financial crisis and is the region's worst-performing currency in 2015.

As Asia's only major net oil exporter, a 50 per cent slump in Brent crude from last year's peak is weighing on the ringgit, just as a looming US interest-rate increase may spur capital outflows. Investor sentiment has also deteriorated amid a probe into funds linked to 1Malaysia Development Bhd. that has embroiled Prime Minister Najib Razak.

"Downward pressure on oil prices, a stronger US dollar on Federal Reserve rate hikes this year and ongoing local political news are all weighing on ringgit forwards," said Khoon Goh, a strategist at Australia & New Zealand Banking Group Ltd in Singapore. "I expect to see a further weakening in the spot rate given the stronger US dollar." The ringgit was little changed in onshore trading Thursday at 3.8070 a dollar, and is down 0.3 per cent from July 10, according to prices from banks compiled by Bloomberg. It fell to the 1997-98 Asian crisis low of 3.8130 this month and has lost 8.2 per cent in 2015. Malaysian financial markets will be shut Friday for a Muslim holiday.

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Malaysia: Stocks open lower on Thursday

MALAYSIA share prices opened lower on Thursday with the FTSE Bursa Malaysia Kuala Lumpur Composite Index down 2.72 points to 1,724.54.

Volume was 44.81 million lots worth RM21.63 million as at 9.03am. Gainers outnumbered losers 88 to 77.

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1MDB Malaysia's Tenaga shares fall 3.1% on interest to buy 1MDB's power assets

[KUALA LUMPUR] Shares of Tenaga Nasional Bhd, Malaysia national power group, dropped as much as 3.16 per cent in early trade on Thursday after it said it wants to buy almost all of debt-laden state fund 1Malaysia Development's (1MDB) power assets.

Tenaga, which counts state investor Khazanah Nasional Bhd as a major shareholder, announced on Wednesday it had submitted an indicative non-binding proposal to acquire the five domestic and eight international power assets of 1MDB power firm Edra Global.

1MDB, whose advisory board is chaired by Prime Minister Najib Razak, has 14 power assets which could be worth up to 18 billion ringgit (S$6.47 billion), sources told Reuters in June.

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Malaysia's police probing alleged conspiracy to topple PM Najib

[PETALING JAYA] Malaysia's Inspector-General of Police is not ruling out the possibility of a conspiracy to topple the Prime Minister undemocratically.

Tan Sri Khalid Abu Bakar said that the police were instructed by the Attorney-General on July 8 to conduct a full probe over the allegations that bank documents were leaked to foreign nationals.

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Malaysia: Stocks open lower on Monday

MALAYSIA share prices opened lower on Monday with the FTSE Bursa Malaysia Kuala Lumpur Composite Index down 4.83 points to 1,710.75.

Volume was 60 million lots worth RM24.2 million as at 9.04am.

Gainers outnumbered losers 118 to 81 as at 9.04am.

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Malaysia's Sunway Construction closes IPO to institutions early

Malaysia's Sunway Construction Group Bhd has closed the institutional portion of its 478 million ringgit (US$125.59 million) initial public offering ahead of schedule, IFR reported on Monday citing a person close to the transaction.

 

Sunway Construction closed the portion on Friday though it was due to close on Tuesday, according to Thomson Reuters publication IFR.

Sunway Construction was not immediately available to comment.

The IPO is Malaysia's second-largest so far this year after the 2.74 billion ringgit raised in May by Malakoff Corporation Bhd, the country's largest independent power producer.

Sunway Construction is selling 327.6 million shares to institutions and 71.1 million shares to retail investors, plus an extra 59.8 million shares in the event of high demand, IFR reported.

A tranche of 191.8 million shares being sold to institutions through the bookbuilding process was five times over-subscribed, IFR reported, citing the unidentified person. The company is expected to price the offer at the top end of an indicative range of 1.15 ringgit to 1.20 ringgit per share, IFR added.

The retail portion closes on Monday, according to IFR.

Maybank Investment Bank and RHB Investment Bank are global coordinators of the IPO and, with HSBC, joint bookrunners.

REUTERS

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China: Shares close higher

[SHANGHAI] China's benchmark stock index closed up 2.41 per cent on Monday in a day of rollercoaster trading after authorities unveiled an unprecedented package of measures designed to shore up a plunging market.

The Shanghai Composite Index jumped 88.99 points to 3,775.91 on turnover of 943.4 billion yuan ($154.2 billion) on Monday. It surged 7.82 per cent at the open but fell as much as 0.92 per cent during the day.

The Shenzhen Composite Index, which tracks stocks on China's second exchange, lost 2.70 per cent, or 56.63 points, to 2,041.85 on turnover of 609.1 billion yuan. It fell as much as 5.53 per cent, wiping out an earlier gain of 6.55 per cent.

The Chinese market - which is partially insulated from the global financial system - was not focused on Greece, which sent most Asian markets down on Monday after Greek voters rejected more austerity demands from creditors.

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Malaysia: Shares end lower on Monday

MALAYSIAN shares ended lower on Monday with the Kuala Lumpur Composite Index losing 17.19 points to close at 1,717.05.

Some 1.54 billion lots, valued at RM1.41 billion were traded. Gainers numbered 158 while losers numbered 646.

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Oil prices firm up after falling on supply data

Oil prices firmed up on Thursday, stabilizing after a steep drop in the previous session after data showing an unexpected increase in U.S. oil stockpiles last week on the back of increased production.

On the New York Mercantile Exchange, crude oil for August delivery edged up 0.17% to $57.05 a barrel after ending the previous session down 4.2%.

Brent crude for August delivery, the global benchmark rose 0.52% to $62.33 after falling 2.5% in the previous session.

Oil prices tumbled after the U.S. Energy Information Administration said in its weekly report on Wednesday that crude stockpiles rose by 2.4 million barrels in the week to June 26.

The consensus forecast had been for a decrease of 2 million barrels.

At 465.4 million barrels, U.S. crude oil inventories remain near levels not seen for this time of year in at least the last 80 years.

It was the first supply build since April and added to concerns over a global supply glut.

Global oil production is still outstripping demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.

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Malaysia: Shares end higher

MALAYSIAN shares ended higher on Thursday with the Kuala Lumpur Composite Index adding 5.92 points to close at 1,733.88.

Some 1.46 billion lots, valued at RM1.85 billion were traded. Gainers numbered 388 while losers numbered 351.

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