Latest news with #Innes
Business Times
2 days ago
- Business
- Business Times
STI ends Tuesday flat as regional indices close mixed
[SINGAPORE] The Straits Times Index (STI) closed flat on Tuesday (Jul 22), as regional indices showed mixed performances. The STI closed up 0.03 per cent or 1.13 points to 4,208.26. Across the broader market, advancers outnumbered decliners 329 to 229 after 1.4 billion shares worth S$1.3 billion changed hands. The trio of local banks closed lower on Tuesday, with DBS down 0.02 per cent or S$0.01 to S$47.25. UOB was down 0.3 per cent or S$0.10 to S$37; and OCBC closed down 0.5 per cent or S$0.08 to S$17.19. Jardine Matheson was the top gainer on the STI, closing up 2.5 per cent or US$1.35 to US$55.26. The biggest loser was Wilmar International , which closed down 0.7 per cent or S$0.02 to S$3. Across the region, major indices were mixed, with the Kospi down 1.3 per cent and the Nikkei 225 down 0.1 per cent. Hong Kong's Hang Seng Index closed up 0.5 per cent and the KLCI down 0.3 per cent. The approach to earnings season by companies has been cautious, with many downshifting their guidance in the first quarter, citing tariff risk and macro uncertainty, said Stephen Innes, managing partner, SPI Asset Management. This has created some room for positive surprises, as some of the second quarter's strength has been in front-loaded demand, promising stronger revenue and profits. Now, more companies are raising their forward estimates, from 57 per cent of companies in April to 75 per cent, said Innes. 'We're seeing broader participation, with cyclicals, industrials and select consumer names also contributing.'
The Star
4 days ago
- Business
- The Star
Ringgit closes slightly lower against greenback
SPI Asset Management's Innes said the ringgit is under pressure mainly because of concerns the US Federal Reserve might keep interest rates higher for longer. KUALA LUMPUR: The ringgit slipped 0.01% against the US dollar at the close, as the local note continued trading on the defensive yesterday, which offered some technical comfort for the ringgit. At 6pm, the local note was traded at 4.2400/2490 from 4.2395/2440 at Wednesday's close. SPI Asset Management managing partner Stephen Innes said the ringgit is under pressure mainly because of concerns that the US Federal Reserve (Fed) might keep interest rates higher for longer, as markets reassess the inflation outlook. He added that the US dollar has strengthened recently as investors are becoming less certain that the Fed will cut rates in September. Innes also said that the dollar's recent bid reflected a subtle but growing shift in sentiment, which markets are slowly walking back their conviction that the Fed will cut the interest rate in September. 'Sticky core inflation, fuelled in part by service-sector dynamics and the slow-burn impact of tariffs, is keeping the Fed in a wait-and-see mode. 'The ringgit remains vulnerable to a temporary widening in the US-Malaysia exchange rate spread. 'This does not necessarily break the broader 4.20-4.30 range, and we are still inside expected bands for now, but it does create a bias for further weakness,' he added. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that the ringgit weakened against the US dollar in the early morning session to 4.2575 in response to the US Consumer Price Index (CPI), which continued to increase in June to 2.7% from 2.4% previously. 'The latest CPI print appears to give the impression that the Fed may not be inclined to cut the Fed Fund Rate in the upcoming meeting in July. 'In a nutshell, the ringgit maintained its narrow-range trade in light of the ongoing uncertainties over the US tariffs,' Mohd Afzanizam said.
Business Times
6 days ago
- Business
- Business Times
Singapore shares end week on high; STI up 0.7%
[SINGAPORE] The benchmark Straits Times Index (STI) capped a week-long rally to touch a new high on Friday (Jul 18). The STI rose 0.7 per cent or 28.07 points to close at 4,189.50, after hitting an intraday peak of 4,192.19. The gains were buoyed by DBS , which hit a high of S$47.05 on Friday morning. It eventually closed 0.7 per cent or S$0.31 higher at S$46.99. Seatrium was the STI's top gainer of the day, rising 5.8 per cent or S$0.13 to S$2.38. The offshore and marine specialist was also the most actively traded counter by volume, with 36.7 million shares worth S$85.9 million traded. The biggest decliner was property developer Hongkong Land . The counter fell 1.1 per cent or US$0.07 to US$6.25. Across the broader market, advancers outnumbered decliners 430 to 147, after 2.2 billion securities worth S$1.6 billion changed hands. Regional markets ended Friday mixed. Australia's ASX 200 jumped 1.4 per cent to a record close of 8,757.20 points, and Hong Kong's Hang Seng Index was up 1.3 per cent. Meanwhile, Japan's Nikkei 225 slipped 0.2 per cent ahead of its upper house elections this weekend. Stephen Innes, managing partner of SPI Asset Management, said that political uncertainty is casting a long shadow over Japan's markets, given that the ruling Liberal Democratic Party-Komeito coalition might fail to secure a majority win in the upper house. 'That sets the stage for a potential leadership shuffle, snap election, or an unstable coalition – all of which would make investors nervous about Japan's ability to navigate complex trade talks and push through cohesive fiscal policy,' Innes added.
Barnama
6 days ago
- Business
- Barnama
Brisk Ringgit Transactions Ensure Malaysian Currency Maintains High Global Standing
KUALA LUMPUR, July 13 (Bernama) -- Malaysia's brisk ringgit-denominated transactions will continue to entrench the local currency as among the top 20 currencies globally, a top wealth management company official said today. 'This will help to keep the ringgit on the global radar,' he told Bernama in an interview today. Expanding usage of ringgit for currency settlements, bilateral agreements and portfolio inflows into the domestic bond market and encouraging growth have helped sustain demand for the local note. SPI Asset Management managing partner Stephen Innes said demand for transactions in ringgit would be driven by Malaysia's strong trading linkages, especially with China, Singapore and other Southeast Asian economies. Innes was responding to a report by Seasia Stats, which compiled data from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), that listed the ringgit as among the top 20 most influential currencies globally. To date, the local note was traded at 4.2475/2525 against the greenback. The ringgit strengthened to as high as 4.1990 against the US dollar on May 5, 2025, appreciating by about 6.2 per cent from the start of the year, marking its strongest level in 2025. Seasia Stats is a social media page and online platform that shares statistics and data visualisations about Southeast Asia. It covers a wide range of topics, including economics, demographics, culture, health and technology. Innes said trade, especially in the high-growth electronics and semiconductor sector, palm oil products as well as energy would stimulate demand for the ringgit. 'Malaysia's regional financial integration also plays a significant role in enhancing the ringgit's global presence,' he said. 'The growing use of local currency settlement mechanisms, supported by bilateral agreements with Indonesia, Thailand and China, has increased the operational footprint of the ringgit in cross-border trade. 'On the investment side, despite cyclical volatility -- Malaysia's bond market still attracts portfolio inflows due to its depth and relatively attractive yields,' he said. He added that this consistent interest helps sustain demand for the ringgit among global asset allocators. Innes said Bank Negara Malaysia's ongoing efforts to upgrade financial infrastructure and promote digital payment connectivity have improved the ringgit's accessibility and efficiency in international systems. According to Seasia Stats data, the US dollar continued to dominate international transactions with a 49.68 per cent share, followed by the euro (22.24 per cent), British pound (6.51 per cent), and Japanese yen (4.03 per cent). The ringgit, along with the Hungarian forint and Thai baht, rounded out the top 20, each accounting for under 0.3 per cent of global usage. Innes said the ringgit's inclusion may be modest in scale, but it reflects a significant shift in the ringgit's regional relevance. 'While its share of global transactions remains under 0.3 per cent, its presence on the list reflects more than just size — it points to Malaysia's strategic position within global trade and financial networks, particularly in the Asia Pacific. 'The ringgit may not be a reserve powerhouse, but it's increasingly being used where it counts: in trade settlement, capital flows and regional currency cooperation,' he added. Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the government's efforts to improve its fiscal position — which reduced the fiscal deficit to 4.5 per cent of gross domestic product (GDP) in the first quarter of 2025 from 5.7 per cent in the same period last year — have supported the ringgit's performance. Key fiscal measures — including the increase in the sales and service tax (SST) from six per cent to eight per cent on March 1, 2024 and the diesel subsidy rationalisation implemented in June — have helped strengthen government finances. This includes a 30.3 per cent increase in SST collection in the first quarter of 2025 and a reduction in spending on subsidies and social assistance. 'On that note, that helped improve the ringgit as foreign investors were seen as net buyers in our bond markets, especially the Malaysian Government Securities (MGS) and Government Investment Issues (GII). He said BNM's foreign exchange reserves also rose from US$115.5 billion in January to US$120 billion at the end of June, further supporting the appreciation of the ringgit. -- BERNAMA BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies. Follow us on social media : Facebook : @bernamaofficial, @bernamatv, @bernamaradio Twitter : @ @BernamaTV, @bernamaradio Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial TikTok : @bernamaofficial
The Star
7 days ago
- Business
- The Star
The clock is ticking, the pressure is on
PETALING JAYA: Indonesia's new US tariff deal piles fresh pressure on Malaysia, which now risks being the region's highest-tariffed exporter to the world's largest market. Indonesia joins Vietnam in cutting better deals with Washington in the latest development of the tariff saga. Goods entering the United States from Indonesia are now subjected to a 19% tariff – down from the previously threatened 32% in April. Vietnam managed to slash its tariff from 46% to 20%, while the Philippines will see a higher rate of 20%, from 17% originally, but still lower than Malaysia's 25%. Meanwhile, Singapore and Thailand are still negotiating with the United States. A 10% tariff is currently imposed on Singapore. Thailand, which was slapped with a 36% rate, has recently submitted a fresh proposal to cut levies on many US imports to zero. For India, reports suggest the United States is working toward an interim trade deal with the country that may reduce proposed tariffs to below 20%. The new tariffs are due to kick in on Aug 1. While this means there is still room for further negotiations with the United States, the fact remains that Malaysia is staring at a relatively steeper 25% tariffs among its neighbours. SPI Asset Management managing director Stephen Innes said this situation should create urgency for Malaysia in its negotiations with Donald Trump's administration, noting that the country risks 'becoming collateral in a region that is rapidly aligning itself for tariff relief'. Innes cautioned that should the tariff remain unchanged, Malaysia's long-standing role as a regional manufacturing hub - especially in high-value sectors like electronics and precision engineering could be undercut as US-oriented foreign direct investment (FDI) toward 'more tariff-friendly neighbours'. 'If Malaysia ends up with the highest US tariffs in the region, the knock-on effects could be significant. From a trade perspective, Malaysian exports will become less competitive. 'However, the more serious concern is FDI,' he told StarBiz, adding that foreign investors assessing South-East Asia – especially under China+1 strategies – will factor in tariff burdens. Innes noted the redirection of new manufacturing investment has already played out in the past, with Vietnam emerging as a major winner due to faster trade deals and a more responsive policy posture. Should a deal fail to materialise, a 25% tariff could slash Malaysia's exports by RM20bil and shave 1% off gross domestic product growth, said economist Geoffrey Williams. 'Malaysia's best strategy is to cut all tariffs on US goods and work to reduce non-tariff barriers as much as possible,' he said. In return for a more favourable tariff deal, Indonesia agreed to buy US$15bil worth of US energy, US$4.5bil of American agricultural products and 50 Boeing jets. American exports to Indonesia will also be free of tariffs and non-tariff barriers. Sunway University economics professor Dr Yeah Kim Leng suggested Malaysia can likewise offer the same conditions (no tariffs on imports from the United States) noting that the country's import tariffs on US goods are already low – at around 6.1%. Yeah, however, said the more difficult demands for Malaysia to meet pertains to government procurement, halal requirements, investment in the United States and other non-tariff barriers. 'Given that Malaysia's exports to the United States are broadly similar to that of Indonesia's exports, the latter's lower tariffs will create a price disadvantage to Malaysian exporters, rendering Indonesia's exports more competitive in US markets,' he said. Moreover, Yeah also stated Malaysia's potential loss in market share in the United States market is likely to lower trade, investment and manufacturing activities unless the loss is offset by increased exports to other markets. Even so, the United States remains the single largest consumer market in the world, in terms of purchasing power and demand. On this note, Innes pointed out mitigation measures like market diversification -such as boosting intra-Asean trade – still cannot be 'a substitute for US market access'. 'Malaysia can try to redirect exports to Asean, for instance, but the scale and absorptive capacity simply cannot compare. It is a case of selling more into a pond when you have just been priced out of the ocean,' he said. Additionally, market diversification is a strategy that every other country is chasing as well. Meanwhile, some experts are not as bearish about the impact of Malaysia's higher tariff, arguing that its strong fundamentals will help cushion the blow in the long run. Although iFAST Capital research analyst Kevin Khaw Khai Sheng acknowledged that having a relatively higher tariff may lead to a dip in trade, capital flows and manufacturing competitiveness, he opined that these effects will likely be seen only in the short term of up to one year. 'In the longer term, Malaysia's role as a manufacturing base will remain intact, given the country's political stability, multilingual workforce and geographic advantages, which make shifting supply chains away from Malaysia not an easy feat despite short-term tariff pressures,' he said. Khaw said countries like Vietnam and Indonesia gave up a lot of ground by agreeing to grant full market access for US goods – a move that will ultimately hurt their domestic economies. He noted that Malaysia is already working on win-win solutions with the United States, as seen in the latest measure announced by the Investment, Trade and Industry Ministry (Miti) this week in tightening the rules related to US-origin chips. 'A win-win solution does not mean we have to open up our market entirely. 'Miti's latest measures on US sensitive technologies can also help us reach an understanding with the country without hurting our domestic economy,' Khaw said. Bank Muamalat Malaysia Bhd head of economics, market analysis and social finance Dr Mohd Afzanizam Abdul Rashid said Malaysia needs to perform its due diligence before deciding on liberalising the local economic sector. 'We need to be clear on our existing industrial policies especially when there is an element of protectionism. The last thing that we need is to succumb to the peer pressure when it comes to US tariffs,' he said. In the meantime, Universiti Tunku Abdul Rahman economics professor Wong Chin Yoong noted that when Indonesia imposes zero tariffs to US goods, it has to grant zero tariffs to Malaysian exports into Indonesia as well, based on the most favoured nation rule. 'Malaysia still benefits as long as the World Trade Organisation (WTO) rules are upheld. Vietnam and the country's other trading partners are members of the WTO. 'To some extent, this helps mitigate the adverse impact on domestic exports to the United States by keeping other markets open for our goods,' he said. For now, Innes said Malaysia should push for exemptions in sectors where the country offers clear value - semiconductors, green tech, palm derivatives —through targeted bilateral talks. 'Domestically, Malaysia cannot just rely on legacy advantages; it needs to double down on investor incentives, streamline regulations, and upskill labour to keep its edge,' he said.
