China stocks hit 1-week high on US stimulus plan

HONG KONG: China stocks hit a one-week high on Wednesday on hopes that the U.S. Congress would pump trillions of dollars to support the world's largest economy during the Covid-19 coronavirus pandemic.

Also helping sentiment, Mainland China reported a drop in new confirmed coronavirus cases on Wednesday as imported infections fell and no locally transmitted infections were reported.

At the midday break, the Shanghai Composite index was up 1.6% at 2,765.12 points, having reached its highest level since March 18 in morning trade. The blue-chip CSI300 index was higher by 2% and also hit its one-week high.

CSI300's financial sector sub-index climbed 1.5%, the consumer staples sector gained 1.9%, the real estate index added 1.8% and the healthcare sub-index rallied 3.4%.

Chinese H-shares listed in Hong Kong rose 2.1%. The Hang Seng Index also climbed 2.1% to 23,143.24. The smaller Shenzhen index was up 2.1% and the start-up board ChiNext Composite index gained 2.5%.

Senior Democrats and Republicans in the divided U.S. Congress said on Tuesday they were close to a deal on a $2 trillion stimulus package to limit the economic damage from coronavirus pandemic.

Chinese and other Asian stock markets tracked Wall Street, where the Dow Jones Industrial Average recorded its biggest one-day percentage gain since 1933.

MSCI's Asia ex-Japan stock index was firmer by 2.9% and Japan's Nikkei index jumped 5.5%.

The number of new infections in China totalled 47 on Tuesday, all of which were from travellers returning home, down from 78 a day earlier, the National Health Commission said.

The country appears to be getting back to work. More than one fifth of American companies in China are back to normal operations after widespread disruptions caused by the coronavirus epidemic, a survey showed Wednesday.

"Overall, retail investors in China are confident in the Chinese stock market," Toby Wu, senior analyst at eToro, said in a note.

"As the pandemic continues to ease in China, we expect to see more foreign investment flowing into the market."

The yuan was 0.11% softer at 7.07 per U.S. dollar as of 0359 GMT.

So far this year, the Shanghai stock index is down 9.3%, while China's H-share index is down 16%. Shanghai stocks have declined almost 4% this month.

At midday, China's A-shares were trading at a premium of 29.46% over the Hong Kong-listed H-shares

All the while he had been given big thumbs up to Xi for his excellent leadership in combating coronavirus....He was only stopped after DJ crashed and waken him up 2 weeks ago. He used to proud of his great leadership in bring DJ all the way up to 29500, a history record. This great party did not last for long...celebrating while others are suffering. It’s time to face the reality of coronavirus crisis.

What’s Trump political achievements after he is in power for more than 3 years? Trade agreement signed with China in Jan 20 is certainly koyak due to corona virus crisis. DJ has crashed to the level below the day he assumed office on 20 Jan 2017...The last resort is intensified fighting with China in whatever areas.....more turbulence are on the way before US elections.

Being complacent is the most serious mistake under Trump's administration. He was very reluctant to heed advices from his expert teams regarding coronavirus crisis. He was so scare if he were taken strengthen measures to fight against coronavirus, DJ might not able to sustain until the election. Therefore, he kept goreng DJ through downplaying and releasing 'positive' news about coronavirus.

QuantumAce
“Yesterday is history, tomorrow is a mystery, today is a gift of God, which is why we call it the present.”

Global market are inter connected, if china market recover, it will influence global market too even if their country still suffer lock down. What global market need now is 'HOPE" + "rebuild back confident' on trust that virus spread can be contain, prevent, and cure in future, resulted positive sentiment

Yeah, well prepared. Eating my lunch now, ha ha ha ha ha

alipay88, By looking on the trend, still need lots of time to push.

KLCI loses RM109.5b in value over 5 days

MALAYSIAN equities continued their downward spiral yesterday, with the benchmark index of the country’s 30 largest stocks recording its fifth straight day of losses as the Covid-19 case count keeps rising.

The FTSE Bursa Malaysia KLCI (FBM KLCI) fell 1.4% or 17.57 points to close at 1,239.01 yesterday, bringing total market capitalisation loss over the last five days to RM109.52 billion. The MSCI AC Asia Pacific Index slipped 0.11%.

Among the main index-linked laggards were Malaysia Airports Holdings Bhd, Axiata Group Bhd, CIMB Group Holdings Bhd, Press Metal Aluminium Holdings Bhd, Genting Bhd, Public Bank Bhd and RHB Bank Bhd.

Gainers included Maxis Bhd, IHH Healthcare Bhd, Hong Leong Financial Group Bhd and Petronas Dagangan Bhd.

Maybank Investment Bank Bhd said the gauge could reach an extreme level, making bottom-fishing likely, particularly in banking, plantation, consumer and dividend yield stocks.

On the other hand, BIMB Securities Sdn Bhd believed markets might rebound out of hope, though the worst is yet to come.

“Malaysia recorded its worst one-day outbreak over the weekend, raising the number to 428 — the highest cases among Asean. We think this could impact market sentiment as consumers turned increasingly cautious on spending.

“Secondly, there is little evidence to suggest that the coronavirus outbreak could have reached its peak soon and if this pandemic would end by summer,” it said in a note.

Malaysia reported 117 new Covid-19 cases yesterday, bringing the country’s total to 790, including 60 recoveries and two deaths.

History suggests the impact of an economic shock could be a drawn out affair for financial markets as seen in 2008 to 2009, when the global financial crisis hit, BIMB Securities added.

“The S&P 500 found a bottom at -58% in six months, while the FBM KLCI fell by 47% in 10 months,” it stated.

Malaysia isn’t alone in the bear market territory, though. Global stocks have been roiling in recent days as governments worldwide struggle to contain the Covid-19 pandemic.

Since 2019, or over the last 15 months, the FBM KLCI has lost 26%, sliding from 1,691 to 1,257 points. About 6% of the decline occurred in 2019, while the remaining 20% was lost in the first quarter this year.

Meanwhile, the MSCI Emerging Markets Index has fallen 14% from 966 to 827 points over the same period.

According to AmInvestment Bank Bhd, a silver lining in the seemingly unabated fall in the FBM KLCI is visible.

“Assuming the FBM KLCI is to fall by about another 100 points from the current level to 1,150 points, this will bring the FBM KLCI in line with the MSCI EM Index’s 10-year (2010-2019) average price-earnings ratio of 13.3 times.

“This will put Malaysia back onto the radar of international emerging-markets fund managers, who currently generally feel less excited about Malaysia due to its high valuations,” the research house said.

Oil also slumped to the lowest in nearly 17 years, with Brent crude touching US$27.85 (RM121.70) per barrel as at press time.

“Both Brent crude and West Texas Intermediate continue wilting as the ongoing price war and the exponential increase in countries closing borders crushed any rebound hopes.

“Producers and refiners are now madly scrambling to find onshore and offshore storage facilities for the upcoming weave of oil that nobody wants in April,” Oanda Corp Asia-Pacific senior market analyst Jeffrey
Halley wrote in a note yesterday.

That alone, according to Halley, will keep a lid on prices, even without the demand shock from the Covid-19 pandemic.

Dragon, usually this typo do not eat rice one, hehe

Dear Revenue Queen,
I ask someone it is the right time to buy dividend and growth stock Magni and VS.
He replied, “Not yet. Lockdown next 2 weeks, every manufacturer are affected. Appealing to authorities to allow us to continue to operate as we are export orientated working mostly in clean room environment. We have 2,500 workers too.

“ To achieve greatness one should live as if they will never die.”