Bursa CFD Market News & Reviews

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The Week Ahead (23/11/2020)

The FBM KLCI ended 10.07 points or 0.64% higher at 1,593.75 on Friday, to snap two straight days of losses, as the rise in global Covid-19 cases spurred buying of rubber glove manufacturers’ shares.

Read More: Bursa CFD Weekly

 

Global Economy

China stocks closed higher on Friday, led by materials and machinery stocks, and posted a weekly gain as investors looked past recent bond market defaults and focused on broader economic recovery.

Hong Kong also stocks edged up on Friday to post their third consecutive weekly advance, led by consumer and material stocks, tracking mainland gains on upbeat data and policy support during the week.

Japanese stocks fell for a third consecutive session on Friday as a rise in new domestic coronavirus infections to record highs fuelled concerns that officials will place new restrictions on business activity.

European stocks ended higher on Friday, with the benchmark STOXX 600 clocking its third straight week of gains as a jump in commodity-linked stocks helped to counter worries about rising coronavirus cases and an impasse over new U.S. stimulus.

U.S. stocks closed lower on Friday as investors wrestled with fiscal stimulus developments, concerns over a lengthy rollout of vaccines, and a growing number of state-level shutdowns to combat the spiraling COVID-19 pandemic.

Gold edged higher on Friday after U.S. Treasury Secretary Steven Mnuchin signalled that negotiations on stimulus measures will continue, boosting the metal’s appeal as a hedge against likely inflation.

 

Company in Focus

KLCCP Stapled Group chief executive officer (CEO) Datuk Hashim Wahir said today the lease extension for Petronas Twin Towers and Menara 3 Petronas here by lessee Petroliam Nasional Bhd (Petronas) will further reinforce the KLCCP Stapled Group’s stability, thus strengthening the latter’s position in the market and boost its efforts in delivering value to its stakeholders in the long term. KLCCP Stapled Group’s statement said: “On Nov 18, 2020, Petronas exercised its options to extend the leases for Petronas Twin Towers and Menara 3 Petronas for a further term of 15 years from Oct 1, 2027 to Sept 30, 2042 and Dec 15, 2026 to Dec 14, 2041 respectively. The rental amount will be determined prior to the commencement of the extended leases.”This extension is a commitment of our lessee, reflecting the requirement of their office spaces in the future. Petronas is the master lessee for both the Petronas Twin Towers and Menara 3 Petronas, occupying a collective office space of over four million square feet,” the statement said.

Petronas Dagangan Bhd Malaysia’s state energy firm Petronas on Friday said it is stepping up investments in hydrogen as part of a global push to produce carbon-free energy, even as the firm expands its portfolio in liquefied natural gas and renewable energy.Petronas, the world’s fourth-largest exporter of liquefied natural gas (LNG), this month announced its goal to become a net zero emitter of greenhouse gases by 2050 and also plans to increase its investments in renewable energy. Tengku Muhammad Taufik said, however, the challenge with hydrogen is in managing the supply chain and logistics.  Petronas is working through Memorandum of Understanding and partnerships with technology players to ensure it has the right capital and expertise to pursue the hydrogen agenda, he added.

Topglove Bhd rose among Bursa Malaysia top gainers in morning trades today on bargain hunting and as the rise in the number of global Covid-19 cases checked investors’ vaccine-driven optimism. Investors bargain hunted for glove manufacturers’ shares today following a drop in prices of these stocks as news on encouraging results from Covid-19 vaccine trials appear to dent optimism on glove demand to curb the spread of the pandemic. News on Covid-19 vaccine trials under the Pfizer Inc-BioNTech collaboration and Moderna Inc have been closely followed.

 

 

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