The Star Online: Business
The Star Online: Business |
- External woes weigh on Malaysia's blue chips
- Asian stocks unsettled by Syria jitters; oil rises
- Dollar stuck in a rut, EM currencies pressured
| External woes weigh on Malaysia's blue chips Posted: KUALA LUMPUR: Malaysia's FBM KLCI fell to a low of 1,709 early Tuesday in line with the weaker regional markets on growing geopolitical tensions. At 10.04am, the KLCI was down 10.46 points to 1,712.03. Turnover was 436.96 million shares valued at RM316mil. Declining stocks hammered advancers 581 to 61 wheile 159 counters were unchanged. Growing worries about the Syrian conflict and concerns whether the U.S. Federal Reserve will begin to withdraw stimulus next month were likely to keep investors sidelined, Reuters reported. Overnight on Wall Street, US stocks succumbed to last minute selling on concerns over its possible military participation in Syria. BIMB Securities Research said the decline in key US indices was despite the decline in July's durable goods orders in the US suggesting that the Feds may not implement any large scale of tapering anytime soon. The Dow Jones Industrial Average was down 64 points to 14,946. "We would expect the local funds to remain as the supporting pillars for the local markets but see more pressure on the index with our focus now centred on the corporate results for the 2Q13. The next support is seen at the 1,715 level," it said.BAT was the top loser, down 84 sen to RM61.32. Among the Petronas related stocks, Petronas Dagangan fell 54 sen to RM26.60 and Petronas Gas was dlwo 34 sen to RM19.42. Aeon Credit lost 40 sen to RM16.24, UMW 36 sen to RM12.56, TN Logistics slid 29 sen to RM3.88 and Favelle Favco 26 sen lower at RM2.62. |
| Asian stocks unsettled by Syria jitters; oil rises Posted: SYDNEY: Asian stocks slipped on Tuesday, while Brent crude held near a five-month high after the United States signalled possible military action against the Syrian government over a suspected chemical weapons attack. Heightened geopolitical tensions coupled with uncertainty over whether the U.S. Federal Reserve will begin to withdraw stimulus next month were likely to keep investors sidelined, analysts said. MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.4 percent, reversing Monday's rise. Tokyo's Nikkei fell 0.7 percent, while the safe-haven yen edged higher. "There's some possibility of another volatile day if speculators decide to attack the market, as the volume is likely to remain very low," said Mitsushige Akino, chief fund manager at Ichiyoshi Asset Management. "Most investors, I would say 90 percent of players, would prefer to wait and see today." U.S. Secretary of State John Kerry, in the most forceful reaction yet to last week's gas attack outside Damascus, said President Barack Obama "believes there must be accountability for those who would use the world's most heinous weapons against the world's most vulnerable people." His comments saw U.S. stocks end 0.4 percent lower in light volumes. The risk of supply disruption lifted Brent crude above $111 a barrel to a five-month high. It last traded up 0.4 percent at $111.10. Major currencies mostly marked time, although the Mexican peso and Brazilian real came under fresh pressure. Highlighting the turbulent times many emerging markets are enduring, Brazil's finance minister said the Fed has communicated its plans to reduce monetary stimulus "poorly", prompting some of the wild swings in the value of currencies and stocks in emerging market economies. Among the major currencies, the dollar index was a tad softer at 81.326 as the euro firmed 0.1 percent to $1.3381 . Against the yen, the greenback edged 0.3 percent lower to 98.17. Investors bought gold following data showing a big drop in orders for U.S. durable goods in yet another set of disappointing economic figures. The data has raised some doubts over whether the Fed will next month start to dial down stimulus, which has kept U.S. interest rates near record lows and increased the allure of hard assets. Spot gold traded at $1,403 an ounce, having scaled an 11-week peak of $1,406.01 on Monday. It has now rallied more than $200 since the end of June when prices troughed at three-year lows. - Reuters |
| Dollar stuck in a rut, EM currencies pressured Posted: SYDNEY: The dollar was marking time against the majors on Tuesday after disappointing U.S. data dragged Treasury yields lower but failed to budge bets the Federal Reserve will start tapering stimulus next month. The dollar was stuck at 98.51 yen having wandered between 98.35 and 98.70 overnight. The euro was equally becalmed at $1.3372 after trading in a $1.3357 to $1.3394 range. The dollar index was parked at 81.375, with support at 81.224 and resistance around 81.719. For any notable action, traders had to cast their eyes to emerging markets where the Mexican peso and Brazilian real came under fresh pressure, despite the drop in U.S. yields. That could bode ill for emerging market currencies in Asia, and particularly the Indonesian rupiah and Indian rupee. Still, overshadowing everything was uncertainty about when the Fed will start tapering and at what pace it might scale back asset buying. A sharp 7.3 percent drop in durable goods orders for July seemed to argue for a cautious withdrawal, and helped 10-year Treasury yields dip 3 basis points to 2.79 percent. Still, much of the fall in orders came in the very volatile aircraft and defence sectors. Strip those out and core orders fell a more moderate 3.3 percent. The series also has a habit of showing weakness in the first month of a quarter, followed by a bounce over the following two months. "We would not get too carried away by the weak durables print," said Citi economist Dana Peterson. "There is positive momentum coming from the consumer, fiscal drag is dissipating and the housing revival remains solid," she added. "So we would not alter our expectations for growth materially or Fed decisions on tapering." Looking ahead, the Asian data calendar is very light with only Chinese industrial profits standing out. Germany releases its Ifo business climate survey for August, while the U.S. has the Case-Shiller house price index, consumer confidence and the Richmond Fed survey. - Reuters |
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