Bursa CFD Market News & Reviews

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The Week Ahead (21/06/2021)

Bursa Malaysia closed higher on Friday, underpinned by gains in semi-conductor-related companies while late buying of Tenaga Nasional and plantations boosted the FBMKLCI.

Read More: Bursa CFD Weekly

 

Global Economy

Japanese stocks closed lower, with the Topix index dragged lower by financial stocks and Toyota Motor’s 7203.T retreat from a record high.

Hong Kong stocks ended higher on Friday on the back of gains in tech and healthcare firms, but posted weekly losses after the U.S. Federal Reserve this week projected higher interest rates in 2023.

Meanwhile China stocks ended flat on Friday, while posting their third straight weekly drop on worries over lofty valuations and Sino-West tensions.

A slide in European bank and energy stocks was exacerbated by hawkish comments from a Federal Reserve official, which also saw the STOXX 600 index snap a four-week winning streak as fears of U.S. policy tightening came to the fore.

In the US, all three main Wall Street indexes also finished sharply lower on Friday, after investors were spooked by hawkish interest rate comments by Federal Reserve official James Bullard.

Furthermore, gold struggled for traction in choppy trading on Friday en route to its worst week in over a year as the dollar extended its rally on the back of the U.S. Federal Reserve’s hawkish outlook.

In contrasts, oil futures rose on Friday, reversing early losses and set for a fourth week of gains after OPEC sources said the producer group expected limited U.S. oil output growth this year despite rising prices.

 

Company in Focus 

My EG Services Bhd (MYEG.MY) has, through its joint venture company I-Pay MYEG Philippines Inc (MyEG Philippines), entered into a strategic partnership with two parties to provide Covid-19 vaccination in the Philippines. The strategic partners are SinoPhil Biotech Inc (SPB) and Family Vaccine and Specialty Clinics Inc’s (FVSC) Health Direct Now.

Bermaz Auto Bhd (BJYA.MY)net profit more than doubled quarter-on-quarter to RM66.83 million in the fourth quarter ended April 30, 2021 (4QFY21) from RM33.08 million in 3QFY21 on higher profits from domestic sales, offset by weaker performance in the Philippines. Quarterly earnings per share ballooned to 5.75 sen, from 2.85 sen. The group has declared a dividend of 1.5 sen plus a special dividend of 1.75 sen, bringing the full-year total to 6.5 sen, from 7.45 sen in FY20.

Bristol-Myers (BMY)and Eisai Co said on Thursday they had entered into an agreement worth up to $3.10 billion to jointly develop and market an experimental cancer drug. They would jointly develop and market the drug, MORAb-202, in Asia, Europe, the United States and Canada.

The National Highway Traffic Safety Administration (NHTSA) said on Thursday they have opened 30 investigations into Tesla (TSLA)crashes involving 10 deaths since 2016 where advanced driver assistance systems were suspected of use. Of the 30 Tesla crashes, NHTSA has ruled out Tesla’s Autopilot in three and published reports on two of the crashes.

The U.S. House Judiciary Committee will vote on Wednesday on a package of six antitrust bills, including several targeting the market power of Big Tech, the panel said on Thursday.Two of the bills address the issue of giant companies, such as Amazon.com (AMZN)and Alphabet’s Google (GOOG), creating a platform for other businesses and then competing against those same businesses. These bills -one of which would force companies to sell businesses -have attracted the most opposition as it could end popular promotions like Amazon Prime free shipping and iMessage in iPhones.

Ferrari and Amazon.com’s (AMZN)Amazon Web Services (AWS) have entered an agreement to make Amazon’s cloud computing unit the luxury carmaker’s cloud storage, machine learning, and artificial intelligence provider, AWS said. The deal will help Ferrari streamline design and testing of its cars, and allow its Scuderia Ferrari Formula One racing team to launch a digital fan engagement platform, AWS said in a statement.

 

 

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