KUCHING: There is a possibility that Bank Negara Malaysia (BNM) might cut the Overnight Policy Rate (OPR) in its upcoming meetings in March and May, analysts say, after setting a dovish tone amidst a cautious sentiment on the coronavirus outbreak.
Macquarie Equities Research (MQ Research) in its notes believed there was a good chance of another 0.25 per cent interest rate cut in early March, though another cut in May is only likely if the impact of the outbreak is prolonged.
This observation came as Malaysia’s GDP came in at 3.6 per cent in the final quarter of 2019 (4Q19) – the weakest since 2009. Underlying data, however, showed positive trends across the board, except for agriculture and electrical and electronic (E&E).
“Nonetheless, the 2019 Novel Coronavirus (Covid-19) will have a negative impact on 1H20 gross domestic product (GDP), and MQ Research believes there is now a good chance that BNM cuts rates 25basis points (bps) at its next meeting in March.
“”The government is expected to announce a stimulus package shortly to mitigate the impact of the virus.
“A pickup in government procurement is on the cards and will stimulate business activity through 2020.
“This will be a key rerating for the market in general given the subdued expectations of investors in general,” it affirmed.
Despite the subdued GDP print, MQ Research said most indicators showed an uptick against 3Q19. For example, public consumption was up 1.3 per cent on higher emoluments while Public investments declined less (-7.7 per cent) versus 3Q19 (-14.1 per cent).
“Despite the negativity around business confidence, private investments were up 4.2 per cent year on year (y-o-y) – their highest levels since 4Q18 on higher capex in the transport services and construction-related manufacturing.
“Improved employment growth and private sector wages supported an 8.1 per cent y-o-y increase in private consumption growth.
“By activity, the agriculture sectors and E&E manufacturing were the key drags on growth in 4Q19. Lower crude palm oil (CPO) production on the back of dry weather and reduced fertiliser application saw the agriculture sector post a 5.7 per cent y-o-y decline in 4Q19.”
BNM’s tone in its commentary around 2020 does suggest to the research firm that another 25bps rate cut is likely in March. A further cut in May is only likely, in MQ Research’s view, if the impact of the coronavirus is prolonged.
“With Malaysian GDP growth still outpacing regional peers and rates still attractive, it does suggest to us that the pressure on the ringgit from further cuts is likely to be muted,” it said.
MQ Research further maintained its view that a pickup in government activity will fuel increased activity levels and greater interest in Malaysian equities.
Wow, Good news, Coronavirus number of new cases in China dropped significantly to just 3 digits figure only ! And Wuhan Coronavirus number of new cases even plunged more significantly from 18/2/2020 's 1660 cases to 18/2/2020 's 615 cases nia ! 1660 - 615 = reduced 1045 cases = 1045/ 1660 * 100% = reduced by - 63%
Don't understand why some people post irrelevant things over here. Maybe just to feel 'shiok sendiri'. This company price is going no where until positive results comes in with good future order books.
There's no bearing on what happens around the World or even Bursa hits new high or low. This company digged their own grave for where it is today. So, it's their own initiative to claw back!
Yes. Some or many still stuck over here for years including me because of the company's..... On how they manipulated and played the game a few years back. Feel for you'll but nothing c
Bersatu left PH....Now Malaysia No Govt.....When PM resigns....Meaning No Ministers.....AGUng in charge ....He is the Army Five Star General....Army will take over if anything happens....Mageran
PUTRAJAYA: Tun Dr Mahathir Mohamad said the stimulus package will be announced soon.
The interim Prime Minister, on his Twitter @chedetofficial, said that he had just chaired a meeting with the Finance Ministry's top officials. "This initiative will be announced not too long now," he said on Wednesday (Feb 26).
Picture(Twitter): Tun Dr Mahathir Bin Mohamad baru saja selesai bermesyuarat bersama dengan para pegawai atasan Kementerian Kewangan di dalam sesi perbincangan mengenai Pakej Ransangan Ekonomi. Inisiatif ini akan diumumkan tidak lama lagi.
The stimulus package to help cushion the effects of the Covid-19 outbreak was initially planned for launch on Feb 27. However, Dr Mahathir resigned on Feb 24, resulting in the dissolution of the Cabinet. The Yang di-Pertuan Agong has consented for Dr Mahathir to be interim Prime Minister until a successor has been appointed. The King is currently interviewing Members of Parliament individually to ascertain who enjoys the majority support in Parliament
KUALA LUMPUR: Interim Prime Minister Tun Dr Mahathir Mohamad has completed a meeting with the Finance Ministry’s top officials in regards to the tabling of the Economic Stimulus Package.
The economic package aimed to stimulate Malaysia’s economy and mitigate any adverse repercussions arising from the COVID-19 outbreak and other external uncertainties.
In his official twitter, Dr Mahathir said the initiative would be announced soon.
However, he did not reveal details of the stimulus package or the date of the announcement, which was initially scheduled tomorrow, Feb 27,2020.
The stimulus package designed mainly for the aviation, retailing and tourism sectors to cushion adverse repercussions from the coronavirus infections, which originated from Wuhan, China.
The International Monetary Fund (IMF) has announced that the viral epidemic could shave between 0.1 and 0.2 percentage points off the global growth rate but noted that the slowdown could be followed by a sharp and rapid rebound.As an open economy, Malaysia is not isolated from any external developments, as the virus outbreak is expected to affect the country’s economic growth during the first quarter of this year. - Bernama
PUTRAJAYA: Interim Prime Minister Tun Dr Mahathir Mohamad has unveiled a stimulus package worth RM20bil to help cushion the effects of the Covid-19 outbreak.
The stimulus package has three strategies – to manage the impact of Covid-19, spur a people-centric growth and encourage quality investment.
"Although the effects of Covid-19 is currently under control, the disease has caused a huge impact on the global economy, including Malaysia's.
"Therefore, the government is introducing the economic stimulus package 2020 to ensure the risks related to the outbreak can be tackled effectively," he said on Thursday (Feb 27).
To thank civil servants who are front liners in tackling Covid-19, the government will pay an allowance of RM400 a month to doctors and medical staff.
Dr Mahathir said an allowance payment of RM200 a month will be given to Immigration staff and other civil servants involved.
"This special allowance will take effect from February 2020, until the outbreak is over," he said.
Unbelievable profitable QR already out !!! Making profit of 572 thousand ringgits !!! Keep it up Vivocom !!! Huat ah ! Heng ah ! Ong ah !
Quarterly rpt on consolidated results for the financial period ended 30 Jun 2020 VIVOCOM INTL HOLDINGS BERHAD Financial Year End : 30 Jun 2020 Quarter : 4 Qtr Quarterly report for the financial period ended : 30 Jun 2020
SUMMARY OF KEY FINANCIAL INFORMATION 30 Jun 2020 CURRENT YEAR QUARTER 31 Dec 2019 Revenue 4,808,000 Profit/(loss) before tax 572,000 Profit/(loss) for the period 236,000
Yes, new PM has been elected. Tommorrow KLSE will spike up at least 50 pts to 100 pts! Like that tommorrow Vivocom at least will spike up to closed at 0.10 (+0.08) (+400%) already !
Sarawak is the main component to establish government ! Without Sarawak, Any parties also can't able to rule the country ! Like that Vivocom definitely will spike up to break above 0.30, 0.50, 0.70, RM1.00, RM2.00 RM3.00 and etcs soon already !
KUALA LUMPUR: The Monetary Policy Committee (MPC) of Bank Negara Malaysia decided to reduce the Overnight Policy Rate (OPR) by 25 basis points to 2.50%.
It said the ceiling and floor rates of the corridor of the OPR are correspondingly reduced to 2.75% and 2.25%, respectively.
“The reduction in the OPR is intended to provide a more accommodative monetary environment to support the projected improvement in economic growth amid price stability. The MPC will continue to monitor and assess the balance of risks surrounding the outlook for domestic growth and inflation,” Bank Negara said in a statement Tuesday.
The reduction in the OPR came largely in line with economists’ expectations. This is the second cut so far this year. In January, Bank Negara reduced the OPR by 25 basis points to 2.75% -- the lowest since 2011.
The central bank noted that global economic conditions have weakened in the recent period. The ongoing Covid-19 outbreak has disrupted production and travel activity, especially within the region.
This has also led to greater risk aversion, resulting in tighter financial conditions and a resurgence in financial market volatility. Downside risks to the global growth outlook have increased, particularly in the near term. However, a number of countries have implemented policy responses. With further anticipated policy measures, these actions are expected to mitigate the economic impact of Covid-19.
“The Malaysian economy grew at a moderate pace of 4.3% in 2019. Looking ahead, growth, particularly in the first quarter, will be affected by the Covid-19 outbreak primarily in the tourism-related and manufacturing sectors. The weakness in the agriculture sector is also likely to persist in the first quarter.
“For 2020, private and public sector activities will be supportive of growth. Household spending is expected to grow at a slower pace amid moderate employment and income growth. Investment activity is projected to record a modest recovery, underpinned by ongoing and new projects, both in the public and private sectors,” it said.
The 2020 economic stimulus package will also provide some support to economic activity. Although domestic growth is expected to gradually improve in the second half of the year, there are key downside risks, mainly stemming from the evolving nature and prolonged impact of the Covid-19 outbreak, and continued weakness in commodity-related sectors.
Bank Negara said in 2020, headline inflation is expected to average higher but remain modest. The trajectory of headline inflation will be dependent on global oil and commodity price developments and the timing of the lifting of the domestic retail fuel price ceilings.
Underlying inflation is expected to be more moderate, amid limited demand pressures despite the continued expansion in economic activity.
Wow! Really not sure how to respond with the numerous illogical comments. 1) I've nothing to do if this counter doesn't go up to the MB. 2) It doesn't matter what happens to Dow or Klse for this counter price going up or down because the company digged their own grave!
Yes. Last 2Q's showing a bit of improvement but keep in mind what happened to the 2-3B Order books from 3 years ago still haven't shown where the profits went. It's about time those profits came back to the picture.
Vivocom warrant (WD) will expired on 8/7/2020, Vivocom definitely will give free warrants of WF and WG to it’s die hard supporters soon ! Huat ah ! Heng ah ! Ong ah !
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Wong Kah Wei
711 posts
Posted by Wong Kah Wei > 2020-02-17 17:04 | Report Abuse
tkl88 appear mean vivocom no moving