Showing posts from June, 2014

Market Likely to Correct Post Today’s 1H14 Window Dressing

Blue chips on Bursa Malaysia slipped into profit-taking correction mode late last week, reversing earlier first-half window-dressing gains due to increased geopolitical concern over Iraq and downward revision to United States economic growth. Sentiment was adversely affected by comments from a US Federal Reserve official on the possibility of raising interest rates by the end of the first quarter of next year, as the US jobless rate may fall below six per cent and inflation is likely to rise back to two per cent later this year.

For the week, the FTSE Bursa Malaysia KLCI (FBM KLCI) slipped 4.79 points, or 0.25 per cent, to 1,880.93, with gas in Tenaga Nasional Bhd (+26 sen) and Sime Darby (+14 sen) overshadowed by losses in Public Bank Bhd (-64 sen), Genting Bhd (-18 sen) and Felda Global Ventures Holdings Bhd (-21 sen). Average daily traded volume and value last week was flat at 1.71 billion shares and RM2.01 billion, compared with the 1.72 billion shares and RM1.78 billion average…

Malaysia – CPI : Core Inflation Improved

Malaysia Core inflation improved to 3.1% yoy despite higher transport costs
Malaysia’s headline inflation rate, as measured by consumer price index (CPI), slowed further to 3.2% yoy in May, after holding at a high of 3.5% for two straight months from February-March 2014 (3.4% in April). This was in line with market expectations. Food prices, which account for 30.3% of the total CPI basket, slowed significantly from 3.6% yoy in April to 3.3% in May, due to improvements in prices of vegetables, biscuits & cereals, as well as fish & seafood.
Core inflation, excluding food prices, also improved from 3.3% yoy in April to 3.1% in May, due mainly to declines in prices of clothing & footwear and cost of communication. However, costs of transport rose from 5.3% yoy in April to 5.5% in May, and may likely continue to trend higher if the Government resume its subsidy rationalisation programme by raising the country’s domestic fuel prices.Some market observers believe that there is …