Lagarde: unflappable IMF chief who smashed glass ceiling

Christine Lagarde burst through the glass ceiling at one of the world's leading institutions, becoming the first woman to head the International Monetary Fund.

Her ascension to the prestigious post marked the culmination of a meteoric rise for the French lawyer and former government minister, who began a second term as managing director of the IMF in July.

But her stellar career may have hit a snag.

On Friday a court will decide whether she will stand trial over a massive state payout to French tycoon Bernard Tapie in 2008 when she was economy minister.

The trailblazing 60-year-old, who is accused of negligence in the affair, says she has a "clear conscience."

"I've always acted in accordance with the law, and I've always had in mind the public interest," she told AFP in an interview in Washington earlier this month.

Her legal woes have done little to dent her popularity in France, where her name has long been bandied about as a possible contender for president.

In an interview with AFP earlier this month, she appeared to rule out any return to the political fray.

"I think I'm better suited to what I'm doing today than for the world of politics," she said.

A high-profile trial would be a blow to the unflappable finance czar, who patiently worked to restore the IMF's luster after the sex scandal that brought down her predecessor and fellow compatriot Dominique Strauss-Kahn in 2011.

Malindo Air establishes interline partnership with Qatar Airways

Malindo Air has teamed up with Qatar Airways to offer seamless connectivity for passengers when travelling between ASEAN and more than 100 destinations in Qatar Airways' network.

In a statement today, Malindo Air Chief Executive Officer (CEO) Chandran Rama Muthy said the partnership, which took effect on July 8, 2016, would allow Qatar Airways' passengers to tap into Malindo Air's growing short-haul regional network that currently serves 36 cities in 13 countries, including 13 major airports in Malaysia.

"This will give convenience for travellers from all corners of the globe to visit Malaysia and experience our diverse culture, explore our eco-tourism and enjoy the renowned Malaysian hospitality," he said.

He added that Malindo Air's extensive network coverage in Malaysia would also enhance the choice of travel destinations for customers in both the business and leisure segments.

World Bank confirms NYU's Romer as next chief economist

The World Bank on Monday confirmed New York University economics professor Paul Romer as its next chief economist, bringing in a prominent voice advocating for investment in human capital and innovation.

Romer, 60, will replace Kaushik Basu, a former Indian government economics adviser who is retiring. Romer will take up the position in September and is tasked with keeping the World Bank Group at the forefront of international development knowledge.

Romer is a proponent of "endogenous growth theory," which holds that investments in human capital, innovation and knowledge are significant contributors to economic growth.

The theory, which Romer helped develop in the 1980s and 1990s, also holds that the spillover effects of a knowledge-based economy will lead to economic development and that the long-run growth rate of an economy can be increased with measures such as subsidies for research and development, and education.

"We're most excited about his deep commitment to tackling poverty and inequality and finding innovative solutions that we can take to scale," World Bank President Jim Yong Kim said of Romer in a statement.

Romer's appointment comes at a time when the World Bank, the International Monetary Fund and officials from the world's largest economies are increasingly worried by a slowdown in global growth and trade.

The IMF said last week that the United States' future growth potential could be even lower than previously thought as aging baby boomers leave the workforce and productivity stagnates.

The Malaysian government is spending 20bn ringgit ($4.6bn; £3bn) on boosting shares

Malaysia has seen the ringgit lose 20% of its value against the dollar this year and a 9% fall in its stock market.

The announcement had a modest impact on share values with the Kuala Lumpur composite index up 0.6% to 1,612.52.

The country's economy has suffered because of falling prices for its commodity exports.

Its position worsened two months ago after its prime minister Najib Razak was involved in a political scandal.

The prime minister said state investment firm ValueCap will invest in undervalued companies and firms in the manufacturing sector would be exempt from import duties until the economy is back on track.

Slowing demand from China, falling commodity prices and a strengthening US dollar has pushed the ringgit to near 18-year lows.

SE Asia Stocks-Thailand recovers on strong GDP growth; Malaysia extends losses

Thai shares bounced back from the previous session's losses to trade higher on Monday after quarterly GDP data and corporate earnings came broadly in line with market expectations, while other Southeast Asian stock markets were mixed.

Thailand's main stock index was 0.2 percent higher at 0512 GMT, driven by energy & utilities and banking sectors, after the country's economy grew faster than expected in the
first quarter, boosted by stronger government spending and
tourism.

"Stocks are trading at fair value and, therefore, we do not expect a high upside to today's trading," said an analyst with Phillip Securities (Thailand). Siam Cement Pcl rose 1.24 percent, PTT Pcl gained 2.3 percent and Siam Commercial Bank Pcl added 1.2 percent.

Asian stocks eked out modest gains as buoyant Japanese equities helped offset some of the gloom from Chinese data. China's investment, factory output and retail sales all grew
slower than expected in April, adding to doubts about whether the world's second-largest economy is stabilising. Meanwhile, Malaysian stocks extended losses, led by energy and basic materials sectors. 

Oilfield services provider SapuraKencana Petroleum was the biggest loser with a drop of 0.6 percent. Data released on Friday showed Malaysia's economy expanded 4.2 percent in January-March compared with a year earlier, its slowest growth for a quarter since 2009 as exports and domestic demand were weak. Vietnam shares were headed for their first gain in three sessions, with property shares and energy stocks leading the gains, after better-than-expected trade surplus data for April.
For Asian Companies click;
SOUTHEAST ASIAN STOCK MARKETS
STOCK MARKETS
Change on day
Market Current Previous Pct Move
Close
Singapore 2733.97 2734.91 -0.03
Bangkok 1397.95 1394.69 0.23
Manila 7499.44 7436.79 0.84
Jakarta 4733.116 4761.715 -0.60
Kuala Lumpur 1615.9 1628.26 -0.76
Ho Chi Minh 612.73 610.82 0.31
Change on year
Market Current End 2015 Pct Move
Singapore 2733.68 2882.73 -5.17
Bangkok 1398.14 1288.02 8.55
Manila 7499.44 6952.08 7.87
Jakarta 4733.116 4593.008 3.05
Kuala Lumpur 1615.9 1692.51 -4.53
Ho Chi Minh 612.73 579.03 5.82

Malaysia Stock Market May Snap Losing Streak

The Malaysia stock market has finished lower in three straight sessions, sliding almost 20 points or 1.2 percent along the way. The Kuala Lumpur Composite Index settled just shy of the 1,710-point plateau, although the market may see traction on Thursday.

The global forecast for the Asian markets is upbeat, with the markets expected to follow the price of crude oil higher. The European and U.S. markets were higher, and the Asian markets figure to follow that lead.

The KLCI finished slightly lower again on Wednesday following losses from the industrial issues and plantation stocks, while the financial shares were mostly higher.

Among the actives, Maybank, Sime Darby, PPB Group and IOI Corporation all finished lower, while MISC, Hong Leong Bank, RHB Capital, Public Bank, CIMB Group and Genting all ended higher.

The lead from Wall Street is positive as stocks saw considerable volatility on Wednesday, surging mid-day before slipping off the highs by the close.

The Dow edged up 42.67 points or 0.2 percent to 18,096.27, while the NASDAQ rose 7.80 points or 0.2 percent to 4,948.13 and the S&P 500 added 1.60 points or 0.1 percent to 2,102.40.

The market strength was partly due to another substantial rebound by the price of crude oil following speculation regarding another effort to freeze production - as well as a report showing a smaller than expected increase in crude inventories.

Among individual stocks, Yahoo (YHOO) and Intel (INTC) moved higher following solid earnings news, while Coca-Cola (KO) came under pressure after reporting earnings that beat estimates but on weaker than expected volume.

Malaysian palm oil/Vegoils: Market factors to watch

The following factors are likely to influence Malaysian palm oil futures and other vegetable oil markets on Tuesday May 10.
    
FUNDAMENTALS

* Malaysian benchmark palm oil futures rose on Monday, supported by improved demand and forecasts that stockpiles will drop on falling production ahead of a data release from the Malaysian Palm Oil Board (MPOB). 

* U.S. corn futures fell about 2 percent on Monday to the lowest level since mid-April, pressured by broad weakness in commodities and positioning a day ahead of a monthly U.S. Department of Agriculture report, analysts said. 

* Oil prices tumbled on Monday on expectations that U.S. crude inventories would again build to record highs, taking the market's focus off swooning Canadian oil output due to raging wildfires. 

MARKET NEWS

* The yen tumbled against the U.S. dollar on Monday as Japan signaled it was ready to intervene in the currency market, while a sharp drop in oil prices undercut equities.    

Malaysian palm oil/Veg oils: Market factors to watch

The following factors are likely to influence Malaysian palm oil futures and other vegetable oil markets on Friday May 6.
    
FUNDAMENTALS

* Malaysian palm oil futures reversed their losses from earlier trade on Thursday, rising to a one-week high as the ringgit MYR= weakened against the dollar to breach the 4.00 mark in the evening. 

* U.S. corn and soybean futures fell on Thursday, with soy dropping 2 percent, on profit-taking by investment funds looking to lock in gains from recent rallies. 

* Oil prices surged on Thursday after a raging wildfire near Canada's oil sands region curbed output that mainly flows to the United States, before settling off their highs as a rebounding dollar and a huge U.S. stockpile build cut into gains. 

MARKET NEWS

 U.S. stocks ended steady on Thursday as a mixed quarterly earnings season winds down, but Treasury yields fell to two week lows as investors hedged positions ahead of the monthly U.S. government employment report due on Friday.    

Daily Market Update - (EMETALL, KANGER)

Dow Jones: 17,891.16 pts (+117.52pts, +0.66%)
Wall Street rebounded after a sharp weekly decline last week led by banks and Amazon.com jumped for a second day amid better-than-expected earnings. Meanwhile, U.S. March construction spending rose 0.3%

FBM KLCI: 1,672.72 pts (-2.04pts, -0.12%)
Selling activities were noted on the FBM KLCI last Friday, however bargain hunting activities emerged and limited the losses for the day, forming a hammer candle above the 1,660 support level. The key index may rebound higher towards 1,700.

Crude Palm Oil: RM2,593 (-RM8, -0.31%)
After dropping below the psychological level of RM2,600, CPO may continue its correction phase lower towards the RM2,500 level.

WTI Crude Oil: $44.78 (-$1.14, -2.48%)
Crude oil retreated from a 6-month high after Iraq's exports approached a record high in April, adding barrels to a worldwide supply glut. 

Gold: $1,291.55 (-$1.98, -0.15%)
As expected, gold surged towards the $1,300 level for the first time since January 2015 as investors speculated that the central banks from the U.S. to Europe will maintain low interest rates over the near term.

FINANCIAL KLSE MALAYSIA STOCK MARKET TRADING PICKS

MARKET UPDATES :

• The FBM KLCI index lost 3.51 points or 0.20% on Friday. The Finance Index fell 0.03% to 14908.65 points, the Properties Index dropped 0.01% to 1187.03 points and the Plantation Index down 0.14% to 7750.86 points. The market traded within a range of 4.90 points between an intra-day high of 1720.08 and a low of 1715.18 during the session.

• Actively traded stocks include SONA-WA, AAX-WA, AAX, SUMATEC, VIVOCOM, IWCITY, MTOUCHE, SGB-PA, AWC and EKA. Trading volume decreased to 1639.08 mil shares worth RM1650.59 mil as compared to Thursday’s 1991.61 mil shares worth RM1953.98 mil.

• Leading Movers were BAT (+52 sen to RM54.50), IHH (+4 sen to RM6.72), MAYBANK (+4 sen to RM9.05), HLBANK (+6 sen to RM13.68) and PBBANK (+4 sen to RM19.14). Lagging Movers were HLFG (-32 sen to RM15.18), GENTING (-17 sen to RM9.43), RHBCAP (-8 sen to RM6.20), YTL (-2 sen to RM1.61) and GENM (-4 sen to RM4.52). Market breadth was negative with 378 gainers as compared to 396 losers.

• The KLCI erased yesterday’s gains and closed lower at 1717.96 points amid overnight losses in US market. The performance of our benchmark index was in tandem with most of our regional peers.

The CEO of Malaysia Airlines is stepping down in the midst of efforts to turn around the carrier that suffered the devastating loss of two passenger jets in 2014.

Christoph Mueller is resigning "due to a change in his personal circumstances," the airline's owner said Tuesday without providing further details. He took up the job in May 2015 on a three-year contract, but he will leave in September after less than half that time.

Mueller has been leading an ambitious restructuring of Malaysia's loss-making flag carrier that has included cutting unprofitable routes, slashing thousands of jobs and bringing in new managers.

Malaysia Airlines was already struggling with ballooning costs and stiff competition from rivals like AirAsia before disaster struck twice in 2014 with the mysterious disappearance of flight MH370 and the shooting down of flight MH17.

The airline was pulled from the stock market and taken private by Malaysia's sovereign wealth fund, Khazanah Nasional.

FINANCIAL KLSE MALAYSIA STOCK MARKET TRADING PICKS

MARKET UPDATES :

• The FBM KLCI index gained 0.67 points or 0.04% on Thursday. The Finance Index increased 0.12% to 14959.41 points, the Properties Index dropped 0.08% to 1189.26 points and the Plantation Index down 0.42% to 7775.89 points. The market traded within a range of 8.03 points between an intra-day high of 1729.13 and a low of 1721.10 during the session.

• Actively traded stocks include SUMATEC, EKA, KNM, AAX, SONA-WA, VIVOCOM, AIRASIA, PARKSON-CP, HHHCORP and AAX-WA. Trading volume decreased to 1629.37 mil shares worth RM1946.11 mil as compared to Wednesday’s 1847.82 mil shares worth RM2063.13 mil.

• Leading Movers were KLCC (+14 sen to RM7.39), SIME (+9 sen to RM7.99), RHBCAP (+5 sen to RM6.10), MISC (+7 sen to RM8.99) and PETGAS (+14 sen to RM22.10). Lagging Movers were UMW (-17 sen to RM6.78), AMMB (-7 sen to RM4.50), WPRTS (-6 sen to RM4.19), YTL (-2 sen to RM1.62) and MAXIS (-6 sen to RM6.01). Market breadth was negative with 364 gainers as compared to 437 losers.

• The KLCI inched up to 1723.78 points amid overnight gains in US market. The performance of our local bourse was in tandem with our regional peers following jump in China’s export.

Trading Stocks - MYEG | Brahims | Protasco | Hartalega | Tek Seng | BIG

MYE.G.  Services  may  trend  higher  after  sustaining  above  the MYR2.09 level to touch the 50-day  SMA line in its latest session. A bullish bias may be present above this point, with a target price of MYR2.20,  followed  by  MYR2.33.  On  the  other  hand,  it  may  turn sideways if it dips back below the MYR2.09 mark. Support may be found at MYR1.98, where  traders can  exit upon a  breach to avoid the risk of a further correction

Brahims  may rebound further  after recovering above the MYR0.93level to touch the 50-day SMA line in its latest session. A bullish bias may  be  present  above  this  point,  with  a  target  price  of  MYR1.07. However,  it  may  drift  sideways  if  it  cannot  hold  above  the mentioned MYR0.93 mark. Support may then be found at MYR0.88, where traders can exit upon a breach.

Protasco  was  testing  the  MYR1.54  level  in  its  latest  session.  The stock  may  climb  further  if  it  breaches  this  point  in  the  near  term, with  a  target  price  of  MYR1.66.  On  the  other  hand,  it  may  turn sideways if the MYR1.54 mark cannot be surpassed. Support may be found at MYR1.46, where traders can exit upon a breach.

Hartalega  may soon test the MYR4.90 level after moving above the downtrend line. The stock may climb further if it breaches this point in  the  near  term,  with  a  target  price  of  MYR5.16,  followed  by MYR5.56.  Meanwhile,  it  may  move  sideways  if  the  MYR4.90  mark cannot  be  surpassed.  Support  may  be  found  at  MYR4.44  where traders can exit upon a breach.

Tek  Seng  was  testing  the  MYR1.14  level  after  touching  the  50-day SMA  line  in  its  latest  session.  The  stock  may  trend  upwards  if  it crosses  above  this  point  in  the  near  term,  with  a  target  price  of MYR1.28.  However,  it  may  turn  sideways  if  the  MYR1.14  mark cannot  be  surpassed.  Support  may  be  found  at  MYR1.04  where traders can exit upon a breach.

B.I.G. Industries was testing the MYR0.735  level in its latest session. The  stock  may  climb  further  if  it  breaches  this  point  in  the  near term, with a target  price of MYR0.795, followed by MYR0.865. On the  other  hand,  it  may  consolidate  further  if  the  MYR0.735  mark cannot  be  surpassed.  Support  may  be  found  at  MYR0.675,  where traders can exit upon a breach.

Daily Market Update (EFORCE, UCHITEC, MAGNA)

Wall Street extended its gains for the second straight session as the Dow rose 1.3%, in line with the recovery in crude oil prices. Meanwhile, the S&P 500 rose 1.0%, erasing its monthly losses , led by gains in the financial sector (+1.4%) while the Nasdaq added 0.9%.

The FBM KLCI closed lower for the second straight session yesterday, spooked by the rout in China stockmarkets. The MACD Histogram has extended another red bar, while the RSI continues to hover above the 50 level. The immediate resistance will be envisaged around the 1,700 level. Support will be pegged around the 1,600-1,630 levels.


EFORCE (0065): Monitor for a breakout above the RM0.915 level. TP: RM1.00. SL: RM0.89.

UCHITEC (7100): Price has formed a BPC formation above the RM1.60 level. TP: RM1.80-RM2.00. SL: RM1.58.

MAGNA (7617): Monitor for a breakout above the RM1.06 level. TP: RM1.15-RM1.24. SL: RM1.00.

Daily KLSE Market News update

The FBM KLCI index gained 20.21 points or 1.21% on Wednesday. The Finance Index increased 0.91% to 14268.24 points, the Properties Index up 0.11% to 1136.99 points and the Plantation Index rose 0.35% to 7848.88 points. The market traded within a range of 16.38 points between an intra-day high of 1691.03 and a low of 1674.65 during the session.

Actively traded stocks include AIRASIA, AAX, APFT, SKH, SKPETRO, GENETEC, MINETEC, XOX, TIGER and JADI. Trading volume decreased to 1664.69 mil shares worth RM2278.63 mil as compared to Tuesday’s 1673.90 mil shares worth RM1648.28 mil.

Leading Movers were SKPETRO (+8 sen to RM2.05), MAXIS (+22 sen to RM6.42), DIGI (+15 sen to RM5.08), SIME (+20 sen to RM7.90) and GENTING (+17 sen to RM8.39). Lagging Movers were UMW (-8 sen to RM6.97), KLCC (-3 sen to RM7.02), KLK (-2 sen to RM23.88), GENM (-0 sen to RM4.31) and PET- DAG (-2 sen to RM25.00). Market breadth was positive with 478 gainers as compared to 375 losers.

The KLCI closed higher at 1691.03 points with last minute spike before the closing bell amid overnight gains in US Market following the better-than-expected manufacturing data. The performance of our local bourse was in tandem with our regional peers and lifted by buying interest in heavy weight counters such as SapuraKencana Petroleum, Maxis and Digi.com.

HK buys three German shipyards for RM1bil

Genting Hong Kong (GenHK) has acquired Nordic Yards’ three shipyards in Wismar, Warnemunde and Stralsund, Germany, for the consideration of 230.6 million euros (RM1.04bil). 

The global leisure, entertainment and hospitality company said in a statement that these purchases, along with that of Lloyd Werft last year (also in Germany), enabled GenHK to realise its global cruise ships fleet strategy over the next decade for its three brands - Crystal Cruises, Dream Cruises, and Star Cruises.

“The rapid growth of the world cruise industry, especially in China, has led to cruise ship order book reaching an all-time high,” said GenHK chairman and chief executive officer Tan Sri Lim Kok Thay.

“In order to ensure that the company can build the required number of cruise ships in the next decade for our global fleet expansion, it is strategic that we acquired shipyards that can build our cruise ships in a timely basis and in a more cost effective manner

KLSE MALAYSIA STOCK MARKET TRADING PICKS

MARKET UPDATES :

• The FBM KLCI index lost 0.21 points or 0.01% on Friday. The Finance Index fell 0.02% to 13836.7 points, the Properties Index dropped 0.32% to 1098.39 points and the Plantation Index rose 0.29% to 7722.81 points. The market traded within a range of 10.20 points between an intra-day high of 1648.70 and a low of 1638.50 during the session.

• Actively traded stocks include TIGER, XDL, GAMUDA-WR, GENETEC, SKH, XOX, APFT, BJCORP, VIVO- COM and HSI-HQ. Trading volume increased to 1333.72 mil shares worth RM1574.00 mil as compared to Thursday’s 1226.16 mil shares worth RM1411.24 mil.

• Leading Movers were ASTRO (+4 sen to RM2.68), CIMB (+6 sen to RM4.20), MISC (+12 sen to RM8.70), IOICORP (+6 sen to RM4.67) and KLCC (+9 sen to RM7.04). Lagging Movers were GENM (- 12 sen to RM4.27), MAXIS (-8 sen to RM6.06), GENTING (-8 sen to RM7.79), PETCHEM (-6 sen to RM6.90) and WPRTS (-2 sen to RM3.98). Market breadth was negative with 271 gainers as compared to 517 losers.

• The KLCI ended little change for the second day and closed lower at 1643.74 points amid overnight losses in US market after oil prices dipped below US$30 a barrel. Market sentiment remained muted as investors were cautious with global gloom outlook.

STOCK RECOMMENDATION :

• BUY SK PETRO ABOVE 1.820 TARGET 1.860 1.910 1.970 SL 1.750

Ringgit slides with Malaysian stocks it lower down to 0.7 per cent

The ringgit weakened 0.7 per cent to 4.1845 per US dollar as of 9.56

am in Kuala Lumpur, after last week posting its biggest rally since October as the outlook for the oil-exporting nation's finances improved amid a recovery in Brent crude. Oil fell for a second day on Tuesday as Malaysian markets reopened after a holiday on Monday.

The ringgit also weakened to 2.9393 to the Singapore dollar as of 10.41am, 0.7 per cent lower than its close on Monday.

"It appears that the dust is being kicked up on 1MDB all over again," said Mr Vishnu Varathan, a Singapore-based economist at Mizuho Bank Ltd. "Downside pressures for the ringgit could re-emerge."

The ringgit climbed 3.3 per cent in January, more than any other in emerging markets, on speculation 2015's 19 per cent decline was overdone.

Malaysia's benchmark stock index fell 0.5 per cent after climbing 2.6 per cent in the five days through Jan 29. Government bonds due in 2020 rose, with the yield falling two basis points to 3.36 per cent, Bursa Malaysia prices show.

Ringgit opens marginally lower against US dollar

KUALA LUMPUR: The ringgit opened marginally lower against the US dollar this morning as some investors turned to the safe haven currency, dealers said.

At 9.05am, the local unit was traded at 4.3720/3820 from 4.3625/3675 against the greenback at 5pm on Tuesday.

The local unit was traded mostly lower against other emerging currencies.

It depreciated against the Singapore dollar to 3.0410/0498 from 3.0375/0349 yesterday and eased versus the yen to 3.7218/7313 from 3.7017/7072 the previous day.

The ringgit appreciated against the British pound to 6.1956/2106 from 6.2384/2481 on Tuesday but weakened against the euro to 4.7747/7873 from 4.7473/7536 yesterday

Mustapa: TPP gives more benefits than challenges

The Trans-Pacific Partnership Agreement (TPP) will provide give benefits compared to its challenges, said Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed.

Mustapa said the government has analysed the full impact of the trade agrement and would continue to provide explanations to all levels of the society for them to gain deeper understanding.

"The ministry had conducted various dialogue sessions where I was involved in such engagements," he said in a RTM dialogue talk show entitled "TPP Enlightenment" here today.

Mustapa stressed that the government would not make any hasty decisions.

"In any decisions, the government would consider the advantages and disadvantages of any policy," he said.

He said the government had conducted two Cost-and-Benefit Analyses that were done by PwC Malaysia and the Institute of Strategic and International Studies Malaysia.

"Even though, the government recognised there were costs that have to be borne, the benefits outweigh the costs," he said.

"It cannot be denied that there are several challenges that we have to face by participating in the TPP, but the government recognises that as a whole, Malaysia can stand to benefit," he said.

He said if the country decided to be a party of the TPP, there will also be a two-year ratification period following the signing.

As such, the coming into force of the TPP was only expected to take place earliest at early 2018, he said.

The TPP countries, namely Australia, the US, New Zealand, Canada, Mexico, Peru, Chile, Brunei, Singapore, Japan, Vietnam and Malaysia account for almost 40 per cent of the world's gross domestic product and a third of global trade