Ringgit, bonds extend drop as outflow fears persist

KUALA LUMPUR (April 22): Malaysia’s ringgit falls and bonds extend losses as fears of a capital flight from the nation persist, with even the revival of a $34b property and transport hub failing to excite traders. * USD/MYR advances 0.1% to 4.1363 after rising 0.5% last week in its fourth straight weekly gain** Resistance 4.1500, 4.1785, 4.1925; support 4.0930, 4.0740, 4.0545* Scotiabank remains bearish on the ringgit amid concern Malaysian bonds may be dropped from the FTSE Russell bond index, says Qi Gao, FX strategist at Scotiabank in Singapore** In near term, MYR will derive support from higher oil prices arising from U.S. sanctions on Iran** If USD/MYR rallies through the 4.15 level, it will head for 4.20* 10-year govt bond yield climbs for a 7th day, rising 3bps to 3.95%, set for its highest close since mid-February* READ: Rate Cut May Not Save Ringgit Bond Rally as Index Outflow Looms* Sentiment toward Malaysian bonds has been damped by FTSE Russell’s move but the scenario for worst-case outflow isn’t likely to materialize, Nik Mukharriz, CIMB fixed-income strategist, writes in note Monday** Any selling will be cushioned by the depth of onshore bond market and ample domestic liquidity* Govt is reviving the Bandar Malaysia project that was started by troubled state fund 1MDB, PM Mahathir Mohamad said Friday* Foreign-exchange reserves data for mid-April are due 3pm local time; no forecast, holdings +0.4% to $103b in the final two weeks of March

April 22, 2019 04:30 UTC

China names Chen Siqing to head world's largest bank - Business News

SHANGHAI: China has named a new chief for Industrial & Commercial Bank of China Ltd., the world’s largest lender by assets, people with knowledge of the matter said.Chen Siqing, chairman of Bank of China Ltd., was appointed as party secretary of Beijing-based ICBC at an internal meeting on Monday, the people said, asking not to be identified as the matter is private.Chen is replacing Yi Huiman, who became chairman of the China Securities Regulatory Commission, the country’s top securities regulator, in January.Chen is expected to also be named ICBC’s chairman, a position that has traditionally been held by the same person who has served as party secretary, according to the people.The bank had $4.1 trillion of total assets at the end of 2018.The reshuffle adds to a string of management changes at China’s top financial institutions and regulators. Peng Chun, chairman of Bank of Communications Co. was appointed head of China’s $941 billion sovereign wealth fund earlier this month, while Liu Guiping, vice mayor of the southwestern city of Chongqing, was named president of China Construction Bank Corp. in March.China has yet to fill the chairmen positions at Bank of China and Bank of Communications, the nation’s fourth and fifth largest lenders.The press office of ICBC wasn’t immediately available for comment.ICBC reported a record profit of 297.7 billion yuan ($44 billion) last year after policy makers renewed their push to spur credit amid a deepening economic slowdown.At rival Bank of China, which generated more revenue from overseas operations than any of its domestic peers, earnings grew at the fastest pace since 2014 to 180.1 billion yuan.ICBC currently operates 426 outlets in overseas markets with $384 billion of assets, or close to 10 percent of the group’s total.Running China’s top banks does not come with a lavish pay package. Yi, former chairman of ICBC, earned about $100,250 last year, a fraction of the salaries taken home by JPMorgan Chase & Co.’s Jamie Dimon and Goldman Sachs Group Inc.’s former CEO Lloyd Blankfein.China capped compensation for most senior executives at its biggest banks and other state-owned enterprises in 2015 as part of efforts to combat inequality.Chen, born in 1960, joined Bank of China in 1990 and became its chairman in 2017. - Bloomberg

Source:The Star

April 22, 2019 02:26 UTC

Construction stocks to the fore on Bandar Malaysia revival - Business News

KUALA LUMPUR: Construction stocks advanced on Monday with Ekovest and Iskandar Waterfront City (IWC) taking the lead after the government revived the Bandar Malaysia development.At 9.44am, the KLCI was up 5.42 points or 0.33% to 1,627.49. Turnover was 914.35 million shares valued at RM491.93mil. Advancers beat decliners nearly two to one or 338 gainers to 178 losers and 256 counters unchanged.Asian stocks were steady as investors awaited the return of major financial markets from the Good Friday holiday, while oil prices spiked on a report the is likely to ask all importers of Iranian oil to end their purchases or face sanctions, Reuters reported.Equities markets were subdued, with MSCI's broadest index of Asia-Pacific shares outside Japan trading little changed.The index was within reach of a nine-month peak scaled on Thursday after Chinese economic data beat expectations and eased concerns about the health of the world economy.At Bursa Malaysia, IWCity rose 30 sen to RM1.32, Ekovest 25.5 sen to 92.5 sen and Ekovest-WB 24 sen to 42 sen while Ekovest-CT surged 14.5 sen to 21.5 sen.Last Friday, the Prime Minister’s Office (PMO) announced that the government has decided to reinstate the Bandar Malaysia project.The 483-acre Bandar Malaysia project (located on the site of the former Sungai Besi Air Force base) is estimated to generate RM140bil in gross development value (GDV) while attracting foreign direct investments.Cement players Tasek rose jumped 29 sen to RM5.44 and Lafarge Malaysia added 18 sen to RM2.51.DWL Resources was the top gainer, surging 39 sen to RM1.70.DWL appointed former CEO of Mass Rapid Transit Corporation Sdn Bhd Datuk Seri Shahril Mokhtar as its managing director.It had earlier announced it was teaming up with Gadang Holdings to jointly bid for infrastructure projects. Gadang added eight sen to 79.5 sen.Gamuda advanced 18 sen to RM3.26 and MRCB eight sen to RM1.04.

Source:The Star

April 22, 2019 02:03 UTC

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