What is DuitNow QR?

To recap, DuitNow QR essentially allows merchants to display just one QR code to accept payments from different eWallet and online banking apps. This eliminates the need for businesses to maintain different merchant accounts and to reduce the clutter of QR codes on the desk.

Typically, a DuitNow QR code will come in a standee that displays the payment provider name as shown above. The merchant may use providers such as Boost, Grab, Touch ‘n Go eWallet, MAE, Public Bank and etc, but the DuitNow QR code will still work as long as your eWallet app is supported.

For example, if a merchant displays a DuitNow QR from MAE, you are able to use your Boost, GrabPay, ShopeePay and Touch ‘n Go eWallet to scan and make a payment.

Can you still earn GrabRewards Points via DuitNow QR?

From what we’ve tested, you can only earn GrabRewards Points if you scan a QR code that’s issued by Grab. This includes the original GrabPay QR Code or the DuitNow QR code issued by Grab.

However, if you scan a DuitNow QR code that’s issued by other providers (e.g. Touch ‘n Go eWallet, Shopee, MAE), the transaction will still go through but you won’t get any GrabRewards Points. As shown in the screenshot above, we are able to pay using GrabPay eWallet when we scan the DuitNow QR issued by Shopee but no points were given.

DuitNow QR is currently supported by most banks and eWallets in the country and the list continues to grow. BigPay has announced that they will enable DuitNow QR by the 2nd quarter of 2021 and they will also enable instant fund transfers to local bank accounts.

Besides Malaysia, PayNet has also revealed that DuitNow QR will also be extended to support QR payments overseas. Once travel is permitted, you can soon pay using your eWallet at merchants overseas that display their respective national QR code standards.

In case you missed it, we recently had a chat with PayNet director of retail payment services, Khairuan Abdul Rahman to talk more about DuitNow QR. You can watch our Let’s Talk About session below. — SoyaCincau

Bank Islam Malaysia Bhd economist Adam Mohamed Rahim expects the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) to move within the range of between 1,580 and 1,600 points next week.

“As markets, including Malaysia and Indonesia, reopen next week from a long weekend, we expect trading activities to increase back to normal levels.

“The nationwide expansion of movement control order (MCO) and strong commodity prices such as Brent crude and crude palm oil will influence sentiment in the market,” he told Bernama.

For the week-just-ended, the benchmark FBM KLCI declined 4.93 points to 1,582.52 on Wednesday from 1,587.45 registered last Friday.

During the shortened trading week as the local market was closed on Thursday and Friday in conjunction with the Hari Raya Aidilfitri holidays, the market was mainly influenced by domestic factors.

These included the nationwide expansion of MCO, the first quarter 2021 gross domestic product (GDP) announcement by Bank Negara Malaysia, as well as sentiment towards the long weekend.

On the index board, the FBM Emas Index was 94.58 points weaker at 11,563.04, the FBMT 100 Index decreased 80.41 points to 11,233.97, the FBM Emas Shariah Index contracted 147.43 points to 12,930.4, the FBM 70 lost 283.64 points to 14,975.84, and the FBM ACE fell 380.37 points to 7,946.16.

Sector-wise, the Financial Services Index rose 46.92 points to 14,850.54, while the Plantation Index eased 23.71 points to 7,073.78, and the Industrial Products and Services Index slipped 3.30 points to 197.24.

The Energy Index shed 2.70 points to 897.0, the Technology Index trimmed 3.89 points to 77.38, while the Healthcare Index gained 28.39 points to 3,187.04.

Weekly turnover dwindled to 14.12 billion units worth RM8.36 billion from 33.13 billion units worth RM20.50 billion in the previous week.

Main Market volume shrank to 8.62 billion shares worth RM6.87 billion from 20.72 billion shares worth RM22.40 billion last week.

Warrants volume fell to 875.38 million units worth RM93.32 million from 1.72 billion units worth RM192.55 million previously.

The ACE Market volume fell to 4.62 billion shares worth RM1.4 billion from 10.68 billion shares worth RM3.90 billion in the week earlier. — Bernama

OANDA senior market analyst for Asia Pacific, Jeffrey Halley said that with markets on the edge over inflation, a high print by US CPI could spur a jump in US bond yields and lift the greenback in coming days.

“In such a scenario, the ringgit is likely to trade lower over the course of the next week although holidays will mute trading volumes,” he told Bernama.

He said a lower US CPI print would alleviate inflation, risk and dollar pressures but could potentially expect a vigorous opposite move if it does not.

Meanwhile, SPI Asset Management global managing partner Stephen Innes opined that the US dollar would not strengthen too much on the broader landscape with the Federal Reserve anchoring short-term interest and ultimately it could limit the ringgit sell-off.

“However, until we see a healthy positive bend on the local epidemic curve, investors will continue to shy away from the local unit,” he said.

Nevertheless, he said the ringgit could trade on a more favourable target especially with palm oil and commodity prices trading firm if the movement control order proves effective.

He expected the ringgit to hover between 4.11 and 4.14 next week.

According to Bank Negara Malaysia (BNM), the ringgit is expected to remain exposed to periods of heightened volatility as uncertainties remain on the momentum of the global and domestic economic recovery.

The local note depreciated by 3.5 per cent against the US dollar in the first quarter of 2021, mainly due to the strengthening of the greenback, which also resulted in a broad-based weakening of other advanced and emerging market currencies.

On a weekly basis, the ringgit weakened versus the US dollar to 4.1230/1280 from 4.1100/1140 a week earlier.

The local note was also lower against other major currencies.

It fell against the Singapore dollar to 3.1023/1073 from 3.0870/0916 a week earlier and depreciated against the Japanese yen to 3.7909/7966 from 3.7662/7702.

The ringgit slipped vis-a-vis the British pound to 5.8279/8353 from 5.7203/7267 on Friday last week and decreased against the euro to 5.0028/0102 from 4.9632/9697. — Bernama

KUALA LUMPUR, May 12 — Hong Leong Bank and Hong Leong Islamic Bank will continue to extend its targeted assistance payment/repayment packages to those facing cash-flow disruptions due to the current movement control order (MCO 3.0).

Group managing director and chief executive officer Domenic Fuda said in a statement today that the relief assistance is intended to provide for various customers’ needs based on their individual circumstances.

“We recognise that some borrowers will inevitably face cash flow challenges due to the ongoing pandemic impact.

“Hence, we will continue to provide and make available repayment/payment relief to those customers needing assistance,” he said.

Fuda added that the bank’s simplified online application process for the payment relief assistance plans (PRAP) will continue to ensure borrowers receive the relief assistance promptly, easing their financial burden.

This includes helping manage repayment/payment obligations such as restructuring and rescheduling of loan and financing, repayment/payment deferments and reduction on monthly loan/financing instalments, he said.

Under the PRAP, there are dedicated plans for micro-enterprises, B40 and M40 customers, among others, as well as managing credit card debt through the HLB Credit Card Conversion Relief Plan.

In addition, the bank is also extending loans and financing to customers who have been looking at expanding their business, automating or digitising their operations, or individuals who are looking for new loans/financing to cater to their personal loan/financing needs.

“We encourage customers to proactively reach out to us when they need help so that we can discuss the type and duration of assistance required.

“The bank remains steadfast in our commitment to offer the right assistance so that we can together see through the current pandemic-related challenges,” Fuda said.

For more information or to apply for relief assistance, customers can visit www.hlb.com.my/relief.

Alternatively, customers can visit a bank branch or call the dedicated HLB PRAP hotline at 03-7959 1888. — Bernama

At 6pm, the local currency fell 70 basis points to close at 4.1230/1280 against the US dollar from yesterday’s close of 4.1160/1210.

OANDA senior market analyst for Asia Pacific Jeffrey Halley said regional currencies would remain under pressure until the US Consumer Price Index (CPI) data showed that the inflation fears were real.

“The nationwide movement control order (MCO) announced recently is also weighing on sentiment locally, but it is the inflation story driving the bigger picture,” he told Bernama.

The Ministry of Health reported that new Covid-19 cases rose to 4,765 today compared to 3,973 yesterday, taking the cumulative total in the country to 453,222.

Meanwhile, according to a news report, the US inflation hit 2.6 per cent in the 12 months to March, breaching the Federal Reserve’s (Fed) target of two per cent, hence, creating fears the Fed might raise interest rates to cool things down.

As such, SPI Asset Management global managing partner Stephen Innes said there had been little respite for the ringgit today as global risk sentiment remained in shaky footings due to inflationary concerns as traders await the US CPI data tonight.

“A stronger print could spook an already nervous market and push the US Treasury yields higher,” he said, adding the combination of potentially firmer yields and domestic Covid-19 concerns had continued to weigh negatively on the ringgit today.

Meanwhile, the local note was traded mixed against other major currencies.

Against the Singapore dollar, the ringgit appreciated to 3.1023/1073 from Tuesday’s close of 3.1027/1085 and rose against the euro to 5.0028/0102 from 5.0071/0140 previously.

The local unit decreased vis-a-vis the British pound to 5.8279/8353 from 5.8171/8259, and eased against the yen to 3.7909/7966 from 3.7814/7863 yesterday. — Bernama

The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) rebounded from its recent losses to finish the day 4.88 points higher at 1,582.52 against 1,577.64 at Tuesday’s close.

The key index, which opened 1.35 points weaker at 1,576.29 this morning, fluctuated between 1,572.99 and 1,583.13 throughout the session.

Overall market breadth turned positive with gainers trouncing losers 582 to 361, while 460 counters were unchanged, 788 untraded, and 12 others suspended.

Amid relatively thin trading ahead of the long holiday break, total volume shrank to 2.59 billion shares worth RM1.92 billion from 5.5 billion shares valued at RM2.9 billion on Tuesday.

Strong buying was also spotted among the small capitalisation stocks which saw the FBM SCAP Index soar 159.34 points to 16,634.38.

Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said the FBM KLCI closed 0.3 per cent lower despite heading into the long weekend, whereby investors tend to reduce trading activities.

Investors on Bursa Malaysia also seem to be shrugging off inflation worries coming from a spike in commodity prices, which could force the United States Federal Reserve to raise its interest rates.

Main gainers among the index-linked counters were rubber glove stocks, namely Supermax and Top Glove which advanced by 3.0 per cent and 3.3 per cent respectively, in tandem with current daily Covid-19 cases, which remain elevated in Malaysia and other countries such as India.

“The banking sector also saw some interest by investors in anticipation of incoming economic growth after Malaysia recorded a contraction in the first quarter of 2021. Its gross domestic product of -0.5 per cent was smaller than the -3.4 per cent registered in the previous quarter.

“Taking cue from the rise in commodity prices such as crude palm oil which has been steadily increasing on the premise of tight supply, plantation companies such as Kuala Lumpur Kepong and PPB group recorded gains of above 1.0 per cent on Wednesday,” he told Bernama.

Among heavyweights, Maybank bagged two sen to RM8.21, Public Bank rose four sen to RM4.14, while Press Metal was flat at RM5.40.

However, PChem fell 12 sen to RM8.10, Tenaga eased four sen to RM9.87, and IHH Healthcare lost 13 sen to RM5.45.

Of the actives, Focus Dynamics shed half-a-sen to six sen, Green Ocean and Permaju were flat at 4.5 sen and 14.5 sen respectively, Mtouche inched up half-a-sen to 28.5 sen, while Tanco added one sen to 14.5 sen.

On the index board, the FBM Emas Index was 29.78 points higher at 11,563.04, the FBMT 100 Index increased 22.54 points to 11,233.97, and the FBM ACE rose 49.67 points to 7,946.16.

However, the FBM Emas Shariah Index slid 4.81 points to 12,930.4 and the FBM 70 dipped 16.92 points to 14,975.84.

Sector-wise, the Financial Services Index surged 144.44 points to 14,850.54, the Plantation Index increased 17.47 points to 7,073.78, while the Industrial Products and Services Index slipped 0.1 of-a-point to 197.24.

Main Market volume decreased to 1.54 billion shares worth RM1.65 billion compared with 3.33 billion shares valued at RM2.40 billion yesterday.

Warrants turnover dwindled to 189.46 million units worth RM21.27 million from 336.22 million units valued at RM36.68 million yesterday.

Volume on the ACE Market declined to 863.09 million shares worth RM257.38 million from 1.85 billion shares valued at RM458.09 million previously.

Consumer products and services accounted for 246.54 million shares traded on the Main Market, industrial products and services (461.02 million), construction (59.83 million), technology (141.33 million), SPAC (nil), financial services (56.52 million), property (210.79 million), plantation (53.28 million), REITs (1.96 million), closed/fund (nil), energy (93.79 million), healthcare (75.23 million), telecommunications and media (37.43 million), transportation and logistics (84.94 million), and utilities (13.02 million).

In conjunction with the Hari Raya Aidilfitri holidays on Thursday and Friday, Bursa Malaysia and its subsidiaries will be closed on the two days and trading will resume on Monday, May 17. — Bernama

KUALA LUMPUR, May 12 — Following on conditional mandatory take-over offer in Eastern & Oriental Bhd (E&O), Amazing Parade Sdn Bhd is now the major shareholder of E&O, which stood at 55.2 per cent as at May 11, 2021.

Amazing Parade is the private investment vehicle of Kerjaya Prospek Group Bhd (KPGB) co-founders Datuk Tee Eng Ho and his brother Tee Eng Seng. Amazing Parade is being controlled by Tee Eng Ho.

KPGB in a virtual press conference today announced that Tee Eng Ho has been resignated as the new executive chairman from non-independent non executive director of E&O.

Datuk Seri Tham Ka Hon remained as executive deputy chairman and Kok Tuck Cheong remained as managing director of E&O.

It also announced that while Kok Meng Chow (she) is no longer a board member in E&O group, she will continue in her capacity as finance director.

During the virtual session, Tee Eng Ho said currently KPGB does not hold any shareholding in E&O does not have any plans to merge with KPGB in the near future. 

“KPGB is a contractor and E&O is a premium lifestyle property developer and there are two different synergies at the moment. Maybe five or 10 years, we may change our plans to merge,” he said.

Meanwhile, commenting on the implementation of the movement control order (MCO) 3.0 and the impact on KPGB construction business, Tee Eng Ho said it has somewhat effected where it delayed the construction processes.

However, he said it is expected to be better than the first phase of MCO, as economic activities are allowed to operate.

In the virtual session, KPGB also announced the change in its board of directors. Tee Eng Ho is now non-independent non-executive chairman. Previously, he was non-independent executive chairman.

Its chief executive officer and executive director would be led by Tee Eng Tiong.

Prior to the appointment as the chief executive officer, Tee Eng Tiong has been the project director with Kerjaya Prospek (M) Sdn Bhd since 2015 and has over 18 years of experience in the field of construction, especially in high rise buildings.

KPGB also appointed Maylee Gan Suat Lee and Chan Kam Chiew as independent non-executive directors.

For more information, visit the respective websites at www.kerjayaprospekgroup.com and www.easternandoriental.com. — Bernama

The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) rebounded from its recent losses to finish the day 4.88 points higher at 1,582.52 against 1,577.64 at Tuesday's close.

The key index, which opened 1.35 points weaker at 1,576.29 this morning, fluctuated between 1,572.99 and 1,583.13 throughout the session.

Overall market breadth turned positive with gainers trouncing losers 582 to 361, while 460 counters were unchanged, 788 untraded, and 12 others suspended.

Amid relatively thin trading ahead of the long holiday break, total volume shrank to 2.59 billion shares worth RM1.92 billion from 5.5 billion shares valued at RM2.9 billion on Tuesday.

Strong buying was also spotted among the small capitalisation stocks which saw the FBM SCAP Index soar 159.34 points to 16,634.38.

Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said the FBM KLCI closed 0.3 per cent lower despite heading into the long weekend, whereby investors tend to reduce trading activities.

Investors on Bursa Malaysia also seem to be shrugging off inflation worries coming from a spike in commodity prices, which could force the United States Federal Reserve to raise its interest rates.

Main gainers among the index-linked counters were rubber glove stocks, namely Supermax and Top Glove which advanced by 3.0 per cent and 3.3 per cent respectively, in tandem with current daily Covid-19 cases, which remain elevated in Malaysia and other countries such as India.

“The banking sector also saw some interest by investors in anticipation of incoming economic growth after Malaysia recorded a contraction in the first quarter of 2021. Its gross domestic product of -0.5 per cent was smaller than the -3.4 per cent registered in the previous quarter.

“Taking cue from the rise in commodity prices such as crude palm oil which has been steadily increasing on the premise of tight supply, plantation companies such as Kuala Lumpur Kepong and PPB group recorded gains of above 1.0 per cent on Wednesday,” he told Bernama.

Among heavyweights, Maybank bagged two sen to RM8.21, Public Bank rose four sen to RM4.14, while Press Metal was flat at RM5.40.

However, PChem fell 12 sen to RM8.10, Tenaga eased four sen to RM9.87, and IHH Healthcare lost 13 sen to RM5.45.

Of the actives, Focus Dynamics shed half-a-sen to six sen, Green Ocean and Permaju were flat at 4.5 sen and 14.5 sen respectively, Mtouche inched up half-a-sen to 28.5 sen, while Tanco added one sen to 14.5 sen.

On the index board, the FBM Emas Index was 29.78 points higher at 11,563.04, the FBMT 100 Index increased 22.54 points to 11,233.97, and the FBM ACE rose 49.67 points to 7,946.16.

However, the FBM Emas Shariah Index slid 4.81 points to 12,930.4 and the FBM 70 dipped 16.92 points to 14,975.84.

Sector-wise, the Financial Services Index surged 144.44 points to 14,850.54, the Plantation Index increased 17.47 points to 7,073.78, while the Industrial Products and Services Index slipped 0.1 of-a-point to 197.24.

Main Market volume decreased to 1.54 billion shares worth RM1.65 billion compared with 3.33 billion shares valued at RM2.40 billion yesterday.

Warrants turnover dwindled to 189.46 million units worth RM21.27 million from 336.22 million units valued at RM36.68 million yesterday.

Volume on the ACE Market declined to 863.09 million shares worth RM257.38 million from 1.85 billion shares valued at RM458.09 million previously.

Consumer products and services accounted for 246.54 million shares traded on the Main Market, industrial products and services (461.02 million), construction (59.83 million), technology (141.33 million), SPAC (nil), financial services (56.52 million), property (210.79 million), plantation (53.28 million), REITs (1.96 million), closed/fund (nil), energy (93.79 million), healthcare (75.23 million), telecommunications and media (37.43 million), transportation and logistics (84.94 million), and utilities (13.02 million).

In conjunction with the Hari Raya Aidilfitri holidays on Thursday and Friday, Bursa Malaysia and its subsidiaries will be closed on the two days and trading will resume on Monday, May 17. ― Bernama

At 11.03am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) added 0.98 of-a-point to 1,578.62 from Tuesday’s close of 1,577.64 on buying support from the banking and rubber glove stocks.

Supermax was the biggest winner among the 30 index constituents, rising 2.81 per cent, followed by Top GLove (2.51 per cent), RHB Bank (2.15 per cent), and Public Bank (1.95 per cent).

Strong buying momentum was also seen in the small capitalisation stocks which saw the FBM SCAP Index surging 136.0 points to 16,611.04.

On the broader marker, gainers outnumbered losers 495 to 376, while 413 counters were unchanged, 907 untraded and 12 others suspended.

Total volume stood at 1.67 billion shares worth RM1.17 billion.

Among the heavyweights, Maybank perked two sen to RM8.21 and Public Bank rose eight sen to RM4.18.

PetChem lost 18 sen to RM8.04, Tenaga trimmed three sen to RM9.88, IHH Healthcare fell 19 sen to RM5.39, and Press Metal slipped one sen to RM5.39.

Of the actives, Focus Dynamics inched down half-a-sen to six sen, Mtouche added half-a-sen to 28.5 sen, Tanco gained one sen to 14.5 sen, while Green Ocean and Permaju were flat at 4.5 sen and 14.5 sen, respectively.

On the index board, the FBM Emas Index was 10.77 points firmer at 11,544.03, the FBMT 100 Index added 3.85 points to 11,215.28, and the FBM ACE increased 42.03 points to 7,938.52.

However, the FBM Emas Shariah Index reduced 44.06 points to 12,891.16 and the FBM 70 contracted 6.89 points to 14,985.86.

Sector-wise, the Plantation Index erased 30.81 points to 7,025.5, the Industrial Products and Services Index slid 0.71 of-a-point to 196.63, while the Financial Services Index soared 143.78 points to 14,849.88. — Bernama

As at 9.06am, the stock rose 11 sen to RM4.21 with 4.96 million shares changing hands.

Gains in Public Bank was the major contributor to the key index — FTSE Bursa Malaysia KLCI (FBM KLCI), which rebounded from its weak performance following the nationwide expansion of the movement control order.

Yesterday, Public Bank announced that its net profit rose to RM1.53 billion in the first quarter ended March 31, 2021 from RM1.33 billion recorded in the same period last year.

In a filing with Bursa Malaysia, it said the improved performance was mainly attributable to lower loan impairment allowance, higher net interest income and net income from the Islamic banking business, as well as higher net fee and commission income.

Revenue, however, slipped to RM5.03 billion from RM5.51 billion, while basic earnings per share improved to 7.88 sen compared with 6.85 sen before. — Bernama

At 9.05am, the benchmark index FTSE Bursa Malaysia KLCI (FBM KLCI) gained 1.34 points to 1,578.98 from Tuesday’s close of 1,577.64.

The index opened 1.35 points weaker at 1,576.29.

Public Bank, which posted a higher net profit in the first quarter of 2021(1Q21), rose 11 sen to RM4.21, lifting the composite index by substantial 4.042 points.

On the broader market, losers outpaced gainers 267 to 131, while 290 counters were unchanged, 1,503 untraded and 12 others suspended.

Total volume stood at 188.5 million worth RM111.41 million.

Malacca Securities Sdn Bhd expects lacklustre trade on the local bourse, taking cues from the negative Wall Street overnight performance, and ahead of the Aidilfitri holiday.

However, it believes bargain-hunting activities might emerge within the energy sector as Brent oil price gained momentum as lingering fears of gasoline shortage as North America’s biggest petroleum pipeline was affected for days following a cyberattack.

“We expect to see trading interest in energy counters amid concerns over the supply shortage situation in the US.

“Besides, we opine that bargain-hunting activities may emerge in laggard counters with high earning certainties amid MCO, such as plastic-related and packaging stocks,” it said in a note.

The research firm said some of the glove counters might have a relief rebound, but upside might be short lived, given the ongoing vaccine rollout plan globally could subside Covid-19 moving forward.

“We expect thin trading on the key index on the half-day trade, with support pegged around 1,555 and 1,565, while the resistance is set between 1,600 and 1,620,” it added.

Among heavyweights, Maybank and CIMB bagged three sen each to RM8.22 and RM4.13, respectively, Top Glove perked two sen to RM5.20, while IHH Healthcare was flat at RM5.58.

However, PetChem lost 10 sen to RM8.12 and Tenaga eased four sen to RM9.87.

Of the actives, Focus Dynamics and Tanco were flat at 6.5 sen and 13.5 sen, respectively, Nova inched down half-a-sen to 12 sen, and Adventa trimmed two sen to RM2.17.

On the index board, the FBM Emas Index recovered 2.88 points to 11,536.14 and the FBMT 100 Index improved 3.05 points to 11,214.48.

However, the FBM Emas Shariah Index decreased 47.88 points to 12,887.34, the FBM ACE erased 13.57 points to 7,882.92, and the FBM 70 declined 20.92 points to 14,971.84.

Sector-wise, the Plantation Index fell 55.35 points to 7,0000.96, the Industrial Products and Services Index slipped 1.05 points to 196.29, while the Financial Services Index soared 131.72 points to 14,837.82.

Bursa Malaysia and its subsidiaries will be opened for half-day trading today and closed in the afternoon in conjunction with the Aidilfitri holidays on Thursday and Friday.

However, clearing, settlement and depository services provided by Bursa Malaysia Depository and the offices of Bursa Malaysia Securities and Bursa Malaysia Derivatives will continue as usual and remain open until the end of the business day.

Bursa Malaysia will remain close from May 13-16, and trading will resume on Monday, May 17. — Bernama

At 9am, the local currency eased to 4.1240/1280 against the greenback from yesterday's close of 4.1160/1210.

ActivTrades trader Dyogenes Rodrigues Diniz said Malaysia was still facing an increase in the number of Covid-19 infections and this has weighed on the domestic unit in recent days.

“If everything remains as it is, the US dollar/ringgit could reach the 4.1500 level in the next few days,” he said in a note.

Meanwhile, SPI Asset Management global managing partner Stephen Innes said the ringgit remained mired by a lopsided recovery, creating a currency tug of war between strong external economic velocity, which boosted exports and lagging domestic services sectors due to the current movement control order.

However, he said the local unit holds the commodity card up its sleeve as higher oil and commodity prices are offering up a modicum of support.

“Expect a quiet trading session ahead of US consumer price index later this evening,” he told Bernama.

At the opening, the ringgit was traded mostly lower against other major currencies.

Against the British pound, it rose to 5.8252/8312 from yesterday's close of 5.8171/8259 and decreased against the yen to 3.7911/7955 from 3.7814/7863.

Vis-à-vis the Singapore dollar, the ringgit depreciated to 3.1073/1105 from 3.1027/1085 and rose against the euro to 5.0049/0110 from 5.0071/0140. — Bernama

KUALA LUMPUR, May 11 — Ranhill Utilities Bhd has proposed to acquire stakes in two companies in line with its business expansion objectives and growth strategies to diversify its income streams into other businesses with promising prospects to supplement existing businesses.

The move was also aimed at mitigating the risks of relying on current ongoing businesses, it said.

One of the proposals filed with Bursa Malaysia today is a Share Sale Agreement (SSA) it entered into with Ranhill Bhd to acquire 100 per cent of Ranhill Bersekutu Sdn Bhd (RBSB) for RM93.87 million, to be satisfied by the issuance of 98.81 million new ordinary shares in Ranhill Utilities at an issue price of RM0.95 per share.

Ranhill Utilities has also signed an SSA with Ranhill Group Sdn Bhd (RGSB) to acquire 4.48 million shares or 51 per cent interest in Ranhill Worley Sdn Bhd (RWSB) for RM117.95 million, to be satisfied by 124.164 million new Ranhill Utilities shares at the same issue price.

The acquisitions are expected to be completed by the third quarter of 2021.

“Upon completion of the SSAs, the Board anticipates that the proposed acquisitions may potentially contribute 25 per cent or more of the net profits of the Ranhill Group,” it said.

“In addition, both companies (RBSB and RWSB) will be invaluable addition and complementary to the Group’s current water and power division, as well as taking advantage of the Malaysian government’s continuous push with its policies in supporting the development of renewable energy such as solar, hydro and biomass.”

RBSB, which was incorporated in 1981, has a long operating track record particularly in the water and wastewater treatment sector in Malaysia and Southeast Asia.

Meanwhile, RWSB has a 25-year joint-venture arrangement with Worley Australia (a 49 per cent shareholder). This has allowed RWSB to utilise the capabilities and technology from the transition and new energy sector such as biomass, wind-farm structures and storage systems for renewable energy from Worley Australia.

Ranhill Utilities also said upon completion of the acquisitions, the stake held by Tan Sri Hamdan Mohamad or any parties acting in concert (PAC) with him will increase to 46.83 per cent from 35.78 per cent.

“In view of the above and pursuant to the proposed acquisitions, Hamdan and related PACs intend to seek an exemption from the Securities Commission Malaysia from the obligation to undertake a mandatory takeover offer,” it said.

Going forward, the Ranhill Group will continue with its existing business in the water and power business which has provided it with stable revenue and earnings visibility following long-term contracts and renewable licences for the segments.

Ranhill Group is also expecting the prospects for these segments to be favourable in view of the continued demand for water and power.

“There are opportunities for the Group with the National Non-Revenue Water Reduction Programme under the 11th Malaysia Plan, which will involve the replacement of 41,560km of old pipes under a RM1.39 billion allocation under the programme.” — Bernama

In a filing with Bursa Malaysia, the bank said the improved performance was mainly attributable to lower loan impairment allowance, higher net interest income and net income from the Islamic banking business, as well as higher net fee and commission income.

Revenue, however, slipped to RM5.03 billion versus RM5.51 billion, while basic earnings per share improved to 7.88 sen compared with 6.85 sen before.

In a separate statement, founder/chairman emeritus, director and adviser Tan Sri Dr Teh Hong Piow said the operating environment remained challenging in Q1 2021 as the movement control order (MCO) 2.0 was imposed to address the resurgence of Covid-19 cases.

“Despite these challenges, the Malaysian economy gradually gained momentum, on the back of improved sentiment arising from the global deployment of Covid-19 vaccines, together with various ongoing policy support.

“Under the improved economic environment, the group achieved better profit performance.

“The improvement was driven by the continued expansion in loans and deposits businesses, and further boosted by fee-based revenue growth,” he said.

Teh said the bank continued to gain traction in its lending and deposit-taking businesses, despite the ongoing economic challenges.

As of end-March 2021, Public Bank group’s total loans recorded an annualised growth of 4.8 per cent, and this was mainly supported by residential property financing, passenger vehicle financing, and small and medium enterprise financing.

He also said that with the low interest rate environment and economic stimulus measures, the group recorded improvements in its housing loans approvals, which increased 26.5 per cent in Q1 2021 compared with the same period last year.

“With an improved operating environment, the banking industry is expected to achieve better performance in 2021.

“Nevertheless, the group is mindful of ongoing downside risks that could pose further disruptions to the banking business,” he said.

He added that strategic business direction, prudent risk management practices, and cost efficiency measures will remain on the group’s business agenda to withstand uncertainties and respond appropriately to any changes.

“While the group remains cautiously optimistic about the economic outlook, it will continue to strive hard for business growth in its core business segments in order to continue generating value for its stakeholders,” he said. — Bernama

In a note, it said the recent GDP performance not only in Malaysia but other key countries suggested that the impact of renewed restrictions to contain the pandemic was less severe than anticipated as almost all economic sectors are still allowed to operate, while consumers are likely to spend online in the event of movement restrictions.

“On the imposition of movement control order (MCO) 3.0, we expect it to have more or less the same impact as MCO 2.0 due to similar restrictions.

“Furthermore, strong external demand will also continue to support growth significantly in which we have recently revised upwards as well,” it said in its Economic Review First Quarter 2021 (Q1 2021) National Account report.

The research firm remained cautious on the downside risks to the estimate which include hiccups in the National Vaccination Plan, political situation, price volatility in commodity prices, protectionism, and geopolitical tensions.

Separately, in its Economic Review Q1 2021 Balance of Payment report, MIDF Research has forecast a current account surplus of 3.7 per cent of GDP in 2021.

“We maintain our view that the size of the current account balance will decline to 3.7 per cent of GDP this year (2020: 4.2 per cent).

“Growing external demand will continue to support Malaysia’s trade sector,” it said.

MIDF Research said demand from major trading partners such as China, the United States (US) and other Asian countries, as well as robust global demand for semiconductor and rubber products would continue to support export growth this year, thereby sustaining the overall current account surplus.

Meanwhile, it has also maintained its projection for the ringgit in 2021, expecting the local currency to appreciate and average at around RM4.05 per US dollar (2020: RM4.20 per US dollar) and moving towards RM3.95 by the end of the year.

“This is based on the assumptions that sustained current account surplus, high oil prices, and positive interest differentials (and therefore inflows into local financial securities) will support the ringgit’s strength this year,” it added. — Bernama

In a filing with Bursa Malaysia today, the plantation company said Azman is the officer-in-charge until a new GCEO is appointed or until such time as determined by the board.

“Azman will continue in his current role as the Logistics and Support Businesses (LSB) group divisional director, which he has been holding since January 1, 2017.

“As the LSB group divisional director, he is accountable for the overall performance and growth of the logistics and support businesses in alignment with FGV’s overall business objectives and stakeholders’ expectations,” it said.

Earlier this month, FGV announced that Datuk Haris Fadzilah Hassan would step down as the GCEO on May 15. — Bernama

KUALA LUMPUR, May 11 — Syed Md Najib Md Noor is stepping down as Pos Malaysia Bhd’s group chief executive officer (CEO) with effect from June 1, 2021 after serving the company for close to three years.

In a filing with Bursa Malaysia, Pos Malaysia said Syed Md Najib was appointed in October 2018, when there was a structural decline in mail volume and a major shift in consumer behaviour towards consumption products, preferring to use digitally-abled platforms.

Under Syed Md Najib’s stewardship, various initiatives were employed and the success of which, amongst others, was the achievement of the integral postal tariff rebalancing, which was only the second tariff increase in 28 years.

“Working at Pos Malaysia with our postmen and Pos Laju employees have been a humbling experience. My sincere thanks to the board, management and everyone for the incredible support,” said Syed Md Najib.

Meanwhile, Pos Malaysia said it respected the wishes of Syed Md Najib in wanting to step down.

“The board of directors is currently in the process of searching for a suitable replacement. The company would like to thank Syed Md Najib for his invaluable contribution and wish him well in his future endeavours,” it added. — Bernama

At 6pm, the local note was traded at 4.1160/1210 against the greenback from yesterday’s close of 4.1050/1100.

Malaysia recorded a GDP contraction of 0.5 per cent in Q1 2021, a sign of recovery from the -3.4 per cent recorded in the preceding quarter, with improvement seen in all economic sectors.

SPI Asset Management global managing partner Stephen Innes said the new mobility restrictions continue to cloud the country’s economic outlook for the second half of 2021, despite the GDP being better than analysts’ expectations.

“The rise in community Covid-19 cases which triggered the latest MCO will delay recovery, hence traders will need a bit of convincing that the epidemic curve is flattening before buying the local unit bullishly again,” he told Bernama.

The Health Ministry said Malaysia recorded 3,973 new Covid-19 cases and 22 deaths over 24 hours up to noon today.

According to Bank Negara Malaysia (BNM), Malaysia’s GDP growth is likely to remain in the range of 6.0 per cent to 7.5 per cent in 2021 despite the implementation of MCO 3.0.

The central bank also said the ringgit is expected to remain exposed to periods of heightened volatility as uncertainties remain on the momentum of the global and domestic economic recovery.

The local note depreciated by 3.5 per cent against the US dollar in Q1 2021, mainly due to the strengthening of the greenback, which also resulted in a broad-based weakening of other advanced and emerging market currencies.

Meanwhile, the local note also traded lower against other major currencies today.

Against the Singapore dollar, the ringgit depreciated to 3.1027/1085 from today’s close of 3.0979/1033 and fell against the euro to 5.0071/0140 from 4.9925/0998 previously.

It had also decreased vis-a-vis the British pound to 5.8171/8259 from 5.7839/7922, and eased against the yen to 3.7814/7863 from 3.7740/7797 yesterday. — Bernama

Nevertheless, the better-than-expected first-quarter 2021 (Q1 2021) gross domestic product (GDP) performance helped to cushion the downside.

At 5pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) eased 6.28 points or 0.39 per cent to 1,577.64 from yesterday’s close of 1,583.92.

The key index, which opened 4.61 points weaker at 1,579.31 this morning, fluctuated between 1,571.96 and 1,581.26 throughout the session.

Overall market breadth was negative as losers greatly outnumbered gainers 980 to 199, while 360 counters were unchanged, 629 untraded, and 12 others suspended.

Total volume decreased to 5.5 billion shares worth RM2.9 billion from 6.01 billion shares worth RM3.53 billion yesterday.

Yesterday, Prime Minister Tan Sri Muhyiddin Yassin announced that the whole country would be placed under the MCO from May 12 until June 7 to curb the recent spike in Covid-19 infections.

Meanwhile, Bank Negara Malaysia today announced the country’s economy recorded a 0.5 per cent contraction in Q1 2021 compared with a decrease of 3.4 per cent in the preceding quarter, signalling a recovery with improvement seen in all economic sectors.

Governor Datuk Nor Shamsiah Mohd Yunus said Malaysia remained on track to achieve its forecast Gross Domestic Product (GDP) growth of between 6.0 per cent and 7.5 per cent in 2021, riding on the recovery in domestic demand.

Commenting on the equity market, Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said the implementation of MCO nationwide has badly affected the overall market sentiment.

“The Q1 2021 economic performance was not sufficient to boost the local bourse as banking stocks under the FBM KLCI were either unchanged or lower during the day,” he told Bernama.

Among the heavyweights, Maybank shed five sen to RM8.19, PChem trimmed three sen to RM8.22, IHH Healthcare lost eight sen to RM5.58, while Public Bank was flat at RM4.10.

However, Tenaga added one sen to RM9.91 while Press Metal and Top Glove bagged two sen each to RM5.40 and RM5.18 respectively.

Of the actives, Focus Dynamics slid 1.5 sen to 6.5 sen, Fintec inched down half-a-sen to four sen, while Pegasus and AT Systematization were both flat at two sen and nine sen respectively.

On the index board, the FBM Emas Index was 83.08 points lower at 11,533.26, the FBMT 100 Index declined 66.61 points to 11,211.43, the FBM Emas Shariah Index reduced 86.89 points to 12,935.22, the FBM ACE fell 241.35 points to 7,896.49, and the FBM 70 lost 174.51 points to 14,992.76.

Heavy selling was also spotted among the small capitalisation stocks which saw the FBMSCAP Index dipping 376.6 points to 16,475.04.

Sector-wise, the Financial Services Index gave up 83.44 points to 14,706.1, the Industrial Products and Services Index slipped 1.82 points to 197.34, and the Plantation Index decreased 93.82 points to 7,056.31.

Main Market volume decreased to 3.33 billion shares valued at RM2.40 billion compared with 3.76 billion shares worth RM2.82 billion on Monday.

Warrants turnover reduced to 336.22 million units valued at RM36.68 million from 349.71 million units valued at RM35.37 million yesterday.

Volume on the ACE Market declined to 1.85 billion shares worth RM458.09 million from 1.91 billion shares worth RM683.27 million previously.

Consumer products and services accounted for 458.11 million shares traded on the Main Market, industrial products and services (852.45 million), construction (125.334 million), technology (392.83 million), SPAC (nil), financial services (46.04 million), property (679.18 million), plantation (84.24 million), REITs (5.19 million), closed/fund (26,000), energy (335.75 million), healthcare (75.26 million), telecommunications and media (70.29 million), transportation and logistics (187.07 million), and utilities (18.7 million).

In conjunction with the Hari Raya Aidilfitri holidays on Thursday and Friday, Bursa Malaysia and its subsidiaries will be closed from noon onwards on Wednesday, May 12.

However, clearing, settlement and depository services provided by Bursa Malaysia Depository and the offices of Bursa Malaysia Securities and Bursa Malaysia Derivatives will continue as usual and remain open until the end of the business day, the exchange said in a statement yesterday.

Bursa Malaysia will remain close from May 13-16, and trading will resume on Monday, May 17. — Bernama

KUALA LUMPUR, May 11 — HSS Engineers Bhd expects the implementation of major infrastructure projects and award of new contracts to be accelerated in the second half of 2021 to reinvigorate the economy as the Covid-19 pandemic eases with the vaccine immunisation programme.

Co-founder and executive vice chairman Tan Sri Ir Kuna Sittampalam said the government’s pledge to pump-prime the economy was reflected in the approved allocation of RM69 billion for public infrastructure development in the Budget 2021, the highest development expenditure budget in history.

“This is in addition to the key mega projects worth around RM143 billion announced under Budget 2020 which will be rolled over to Budget 2021,” he said in the engineering consultancy group’s 2020 annual report.

Kuna, who is also the company’s acting group chief executive officer, said the undertakings included the rollout of key infrastructure projects in the transportation sector in the likes of Mass Rapid Transit 3, Johor Bahru-Singapore Rapid Transit System, Penang Transport Master Plan and Pan Borneo Highway.

“Moving forward, we foresee that the government will look at privatisation as a driver of infrastructure projects to reduce the financial strain on national coffers,” he said.

He said HSS Engineers group’s engineering consulting and project management expertise was well-placed in these critical sectors with proven track records in crucial projects spanning across many decades.

Since its inception, he said, the company had supported the government’s agenda in propelling the nation’s advancement and it endeavoured to reprise its role in the coming year.

“Having weathered the challenges of 2020, we are confident of our future on the back of our healthy order book and projects in the pipeline,” he said. — Bernama

At 3.07pm, the benchmark index FTSE Bursa Malaysia KLCI (FBM KLCI) contracted 10.65 points to 1,573.27 from Monday’s close of 1,583.92.

On the broader market, losers heavily outnumbered gainers 1,003 to 152, while 317 counters were unchanged, 696 untraded and 12 others suspended.

Total volume stood at 3.95 billion worth RM1.89 billion.

Nevertheless, the better-than-expected first quarter 2021 (1Q21) gross domestic product (GDP) performance helped cushion the downside.

Bank Negara Malaysia announced that the country’s economy recorded a 0.5 per cent contraction in 1Q21 compared with a decrease of 3.4 per cent in the preceding quarter, signalling a recovery with improvement seen across all economic sectors.

Governor Datuk Nor Shamsiah Mohd Yunus said Malaysia remained on track to achieve its forecast gross domestic product growth of between 6.0 per cent and 7.5 per cent in 2021, riding on the recovery in domestic demand.

Among the heavyweights, Maybank trimmed six sen to RM8.18, Public Bank and Tenaga slipped one sen each to RM4.09 and RM9.89, respectively, PetChem fell 12 sen to RM8.13, while IHH Healthcare shed nine sen to RM5.57.

Of the actives, Focus Dynamics slid one sen to seven sen, Fintec inched down half-a-sen to four sen, while Pegasus and AT Systematization were flat at two sen and nine sen, respectively. 

On the index board, the FBM Emas Index decreased 100.97 points to 11,515.36, the FBMT 100 Index was 87.18 points lower at 11,190.86, the FBM Emas Shariah Index erased 111.49 points to 12,910.62, the FBM ACE fell 230.9 points to 7,906.94, and the FBM 70 reduced 161.38 points to 15,005.89.

Sector-wise, the Financial Services Index gave up 89.32 points for 14,700.22, the Industrial Products and Services Index slid 2.71 points to 196.45, while the Plantation Index weakened 78.72 points to 7,071.41.

In conjunction with the Aidilfitri holidays on Thursday and Friday, Bursa Malaysia and its subsidiaries will be closed from noon onwards on Wednesday, May 12.

However, clearing, settlement and depository services provided by Bursa Malaysia Depository and the offices of Bursa Malaysia Securities and Bursa Malaysia Derivatives will continue as usual and remain open until the end of the business day, the bourse said in a statement yesterday.

Bursa Malaysia will remain close from May 13-16, and trading will resume on Monday, May 17. — Bernama

Axiata president and group chief executive officer (CEO) Datuk Izzaddin Idris said SoftBank would hold 23.07 per cent shareholding in ADA, establishing ADA’s valuation at RM1.07 billion, while Axiata Digital Services would remain ADA’s majority shareholder with 63.47 per cent following the investment.

“Together with our existing Sumitomo partnership, we can expect this strategic alliance with SoftBank to further fuel ADA’s growth momentum within the region as it unlocks synergistic opportunities that will form one of the pillars to deliver on Axiata’s digital champion ambition,” he said at a virtual briefing on the business alliance between ADA and SoftBank today.

Izzadin said ADA, the largest independent digital, analytics, and marketing company in nine countries across South and Southeast Asia, was expected to benefit from the unlocking of significant global synergistic opportunities.

He said ADA currently served over 1,300 clients in the region and its revenue had tripled since its launch three years ago as well as recording positive earnings before interest, taxes, depreciation and amortisation in the last two years.

“More brands than ever today in Asia are turning to data analytics and AI to differentiate their products and services in the highly competitive digital marketing industry.

“With this added business and capital boost, we are better placed to develop AI models for precision targeting, invest in content analytics and establish data platforms to deliver insights and help businesses pivot for growth,” he added.

SoftBank representative director and chairman Ken Miyauchi said since its public listing in 2018, the company had executed growth strategy by expanding into new business areas outside its core telecommunication business.

“This alliance with ADA heralds a new theme in this growth strategy as it will enable us to deploy our digital marketing business outside Japan by leveraging ADA’s presence in Asia as a leading data and AI company.

“We look forward to collaborating closely with the ADA team so we can help companies in the Asia-Pacific region accelerate the digital transformation of their businesses,” he said.

ADA CEO Srinivas Gattamneni said the post-Covid-19 norm was a “digital first” economy, which ADA had been successfully building towards.

“Hence the partnership with SoftBank added a valuable ally in our next phase of growth.

“The capital and business alliance with SoftBank will further propel ADA’s digital, analytics and marketing solutions to benefit our customers,” he added. — Bernama

At midday, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) erased 9.11 points to 1,574.81 from Monday’s close of 1,583.92.

The key index, which opened 4.61 points weaker at 1,579.31 this morning, moved between 1,573.01 and 1,581.26 throughout the session.

The overall market breadth was weak with losers thumping gainers 928 to 157, while 348 counters were unchanged, 735 untraded and 12 others suspended.

Total volume stood at 3.36 billion shares worth RM1.53 billion.

Prime Minister Tan Sri Muhyiddin Yassin announced yesterday that the whole country would be placed under the MCO from May 12 until June 7 to curb the recent spike in Covid-19 infections.

Meanwhile, Bank Negara Malaysia announced today that the country’s economy recorded a 0.5 per cent contraction in the first quarter of 2021 compared with a decrease of 3.4 per cent in the preceding quarter, signalling a recovery with improvement seen in all economic sectors.

Governor Datuk Nor Shamsiah Mohd Yunus said Malaysia remained on track to achieve its forecast Gross Domestic Product growth of between 6.0 per cent and 7.5 per cent in 2021, riding on the recovery in domestic demand.

Among the heavyweights, Maybank trimmed five sen to RM8.19, Public Bank and Tenaga slipped one sen each to RM4.09 and RM9.89 respectively, PetChem lost 12 sen to RM8.13, and IHH Healthcare declined seven sen to RM5.59.

Of the actives, Pegasus, Focus Dynamics and AT Systematization were flat at two sen, eight sen and nine sen respectively, while Fintec inched down half-a-sen to four sen.

On the index board, the FBM Emas Index fell 82.51 points to 11,533.83, the FBMT 100 Index was 72.44 points weaker at 11,205.6, the FBM Emas Shariah Index declined 87.92 points to 12,934.19, the FBM ACE decreased 126.8 points to 8,011.04 and the FBM 70 erased 126.96 points to 15,040.31.

Sector-wise, the Financial Services Index gave up 80.43 points to 14,709.11, the Industrial Products and Services Index slipped 2.54 points to 196.62, and the Plantation Index reduced 76.93 points to 7,073.2. — Bernama

She said the local note depreciated by 3.5 per cent against the US dollar in the first quarter (Q1) of 2021, mainly due to the strengthening of the greenback, which also resulted in a broad-based weakening of other advanced and emerging market currencies.

This was amid the rebalancing of portfolio investments by global investors following the rise in US Treasury yields, driven by anticipation of a stronger US economic recovery and higher inflation expectations.

“Since April 1, the ringgit has appreciated by 1.0 per cent against the US dollar (as at May 7) and this appreciation was in line with US dollar strength subsiding as US Treasury yields have started to trend lower from its peak in March,” she told a virtual press conference to announce Malaysia’s Q1 2021 GDP performance today.

Nor Shamsiah noted that increase in global oil prices in early April also provided some support to overall investor sentiment.

On financing conditions, she said net financing to the private sector recorded an annual growth of 4.7 per cent during the quarter under review, supported mainly by higher total outstanding loan growth of 4.3 per cent (Q4 2020: 3.7 per cent).

“Business loan disbursements and repayments remained above their 2017-2019 quarterly average levels.

“Household loan demand also remained forthcoming amid the accommodative monetary policy environment and implementation of various stimulus measures,” she added. ­— Bernama

KUALA LUMPUR, May 11 — The country’s economy recorded a contraction of 0.5 per cent in the first quarter of 2021, a sign of recovery from a decrease of 3.4 per cent in the preceding quarter with improvement seen in all economic sectors.

In the first quarter of 2020 at the onset of the pandemic, Malaysia recorded a gross domestic product (GDP) growth of 0.7 per cent.

All economic sectors recorded improvement during the quarter led by manufacturing, Bank Negara Malaysia Governor Datuk Nor Shamsiah Mohd Yunus told a virtual news conference in conjunction with the release of Malaysia’s Q1 2021 GDP performance today.

The manufacturing sector grew stronger at 6.6 per cent in the first quarter of 2021 compared to 3.0 per cent in the fourth quarter of 2020, while the services sector decreased 2.3 per cent during the quarter, but it was better then a decline of 4.8 per cent in the fourth quarter of 2020.

The agriculture sector grew marginally to 0.4 per cent, mining and quarrying improved to a negative 5.0 per cent and construction decreased 0.4 per cent.

Despite the the third round of the movement control order (MCO), Nor Shamsiah said Malaysia’s GDP growth is likely to remain in the range of 6.0 per cent to 7.5 per cent in 2021.

“MCO 3.0 will be similar with MCO2.0 with most economic sector remaining open.” Despite the recent re-imposition of containment measures, she said the impact on growth is expected to be less severe than that experienced in 2020, as almost all economic sectors are allowed to operate.

“Overall, the growth recovery will benefit from better global demand, increased public and private sector expenditure, as well as continued policy support. This will also be reflected in the recovery in labour market conditions, especially in the gradual improvement in hiring activity,” she said.

Nor Shamsiah noted that the higher production from existing and new manufacturing facilities, particularly in the electrical and electronics (E&E) and primary-related sub-sectors, as well as oil and gas facilities will provide a further impetus to growth.

The rollout of the domestic Covid-19 vaccine programme will also lift sentiments and contribute towards recovery in economic activity, she said.

Nevertheless, the pace of recovery will be uneven across economic sectors.

Going forward, she said Malaysia is well positioned to continue benefitting from stronger global economic and trade activities.

“While the growth outlook continues to be shaped by developments surrounding the pandemic, the implementation of containment measures which are mainly aimed at curbing social activities and allowing almost all economic sectors to operate, would minimise the impact on economic activity.”

The country’s current account of the balance of payments registered a surplus of RM12.3 billion or 3.3 per cent of GDP.

As for headline inflation, it turned positive in the first quarter of the year and is expected to average 2.5-4.0 per cent for the year.

“The headline inflation increased to 0.5 per cent in the 1Q21, mainly due to base effect from fuel prices and a lapse in impact from electricity tariff rebates.

“The higher inflation in 2021 was due to the cost-push factor of higher global oil prices, while core inflation to remain subdued,” Nor Shamsiah she said.

She noted that inflation may accelerate to 6.5-7.0 per cent in April-May before moderating below 5.0 per cent in June, while core inflation would stay subdued, averaging 0.5-1.5 per cent for 2021 amid continued spare capacity in the economy.

“The monetary policy in 2021 will remain accommodative to support the economic recovery, while ensuring prices pressures remain manageable.

“The bank also remains vigilant against a build-up of financial imbalances and given ongoing uncertainties surrounding pandemic, monetary policy going forward will continue to be determined by new data and information,” the BNM Governor added.

The central bank recently maintained its overnight policy rate at 1.75 per cent at the May monetary policy committee meeting. — Bernama

At 11.03am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) erased 8.79 points to 1,575.13 from Monday’s close of 1,583.92.

Prime Minister Tan Sri Muhyiddin Yassin announced yesterday that the whole country would be placed under the MCO from May 12 until June 7 to curb the recent spike in Covid-19 infections.

“This weighed on market sentiment,” a dealer said, adding that Bank Negara Malaysia’s announcement of the first quarter 2021 Gross Domestic Product later today would be closely watched.

On the broader marker, losers trounced gainers 873 to 141, while 335 counters were unchanged, 819 untraded and 12 others suspended.

Total volume stood at 2.72 billion shares worth RM1.19 billion.

Among the heavyweights, Maybank and IHH Healthcare shed five sen each to RM8.19 and RM5.61 respectively, Public Bank and Tenaga slipped one sen each to RM4.09 and RM9.89 respectively, and PetChem fell 15 sen to RM8.10.

Of the actives, Focus Dynamics trimmed one sen to seven sen, Fintec inched down half-a-sen to four sen, while Pegasus and AT Systematization were flat at two sen and nine sen respectively.

On the index board, the FBM Emas Index was 85.85 points weaker at 11,530.48, the FBMT 100 Index contracted 74.36 points to 11,203.68, the FBM Emas Shariah Index reduced 90.96 points to 12,931.15, the FBM ACE fell 186.01 points to 7,951.83 and the FBM 70 lost 145.81 points to 15,021.45.

Sector-wise, the Financial Services Index gave up 89.02 points for 14,700.52, the Plantation Index erased 84.56 points to 7,065.57, and the Industrial Products and Services Index slid 2.72 points to 196.44. — Bernama

At 9.14am, the benchmark index FTSE Bursa Malaysia KLCI (FBM KLCI) fell 8.79 points to 1,575.13 from Monday’s close of 1,583.92.

The index opened 4.61 points weaker at 1,579.31.

On the broader market, losers hammered gainers 644 to 75, while 252 counters were unchanged, 1,197 untraded and 12 others suspended.

Total volume stood at 798.43 million worth RM328.08 million.

Prime Minister Tan Sri Muhyiddin Yassin announced yesterday that the whole country would be placed under the movement control order (MCO) from May 12 until June 7 to curb the recent spike in Covid-19 infections.

Malacca Securities Sdn Bhd, in a note, expects the expansion of the MCO 3.0 would weigh on market sentiment.

Should the key index set a further pullback, support is pegged between 1,555 and 1,565, while resistance is set between 1,600 and 1,620, it said.

Meanwhile, crude palm oil (CPO) future price contracted after registering a hefty rally recently.

“Following the uptrend movement of commodities prices, particularly CPO and oil prices, we believe energy and plantation counters may be put under traders’ radar over the near term.

“Also, some essential consumer stocks as well as lockdown beneficiaries such as the plastic packaging industry may bode well throughout this period of time,” it said.

Among heavyweights, Maybank and Tenaga eased three sen each to RM8.21 and RM9.87, respectively, Public Bank shed two sen to RM4.08, PetChem lost six sen to RM8.19, and IHH Healthcare slipped one sen to RM5.65.

Of the actives, Pegasus and Key Alliance were flat at two sen and 3.5 sen, respectively, while KTG and Tanco inched down half-a-sen each to 20 sen and 12.5 sen, respectively.

On the index board, the FBM Emas Index was 90.97 points weaker at 11,525.36, the FBMT 100 Index contracted 77.6 points to 11,200.44, the FBM Emas Shariah Index decreased 101.01 points to 12,921.1, the FBM ACE fell 132.4 points to 8,005.44, and the FBM 70 erased 134.4 points to 15,004.77.

Sector-wise, the Financial Services Index reduced 76.78 points to 14,712.76, the Plantation Index declined 50.79 points to 7,099.34, and the Industrial Products and Services Index trimmed 2.54 points to 196.62.

Heavy selling was also spotted among the small capitalisation stocks which saw the FBM SCAP dipping 295.7 points to 16,555.94. — Bernama

At 9.01am, the local currency eased to 4.1100/1160 against the greenback from Monday’s close of 4.1050/1100.

SPI Asset Management global managing partner Stephen Innes said the domestic unit opened on a slightly negative note amid inflationary pressures weighing on global risk sentiment, and Malaysia entering another lockdown that is expected to negatively impact the economic growth.

On Monday, the government extended the movement control order (MCO) currently enforced in several areas to cover the whole country from May 12 to June 7 to contain the Covid-19 pandemic.

The country’s Covid-19 infections dropped slightly to 3,807 cases on Monday, with 17 deaths reported, bringing the total to 1,700 to date, a fatality rate of 0.39 per cent.

Innes said the re-emergence of community cases forced tightening in social restrictions, which should have a short-term negative impact on the local markets, at least until the epidemic curve bends more favourably.

“But fortunately, soaring commodity prices and a robust export market should offer a lifeline to the ringgit and could limit the MCO triggered sell-off,” he told Bernama.

At the opening, the ringgit was traded mostly higher against other major currencies.

Against the British pound, it fell to 5.8017/8106 from Monday’s close of 5.7839/7922 but increased against the yen to 3.7731/7789 from 3.7740/7797.

Vis-à-vis the Singapore dollar, the ringgit rose to 3.0960/1017 from 3.0979/1033 and appreciated against the euro to 4.9838/9927 from 4.9925/0998. — Bernama

KUALA LUMPUR, May 10 — LKL International Bhd (LKL) has proposed to diversify into the  and personal protective equipment (PPE) sector.

The company has also proposed a private placement of up to 355.05 million placement shares at an issue price to be determined later, of which proceeds will be utilised for the new businesses.

In a filing with Bursa Malaysia today, LKL said after taking into consideration the current market demand for rubber gloves and PPE following the Covid-19 pandemic, the group had resolved to venture into the new businesses.

The group is currently involved in the manufacturing of medical/healthcare beds, medical peripherals, and accessories, as well as the trading of medical furniture, medical devices, medical peripherals and accessories.

The group has also intended to enter into distribution agreements with suppliers of rubber gloves and PPE.

“The proposed diversification allows the group to capitalise on the increasing demand for rubber gloves and PPE while making the most out of the opportunities created by the Covid-19 pandemic.

“It will also provide an additional revenue stream to the group’s current core business,” it said.

Based on the illustrative issue price of RM0.16 per placement share, some RM56.81 million to be raised from the proposed private placement would be utilised for the trading of rubber gloves and PPE, setting up new storage facilities, and defray expenses for the proposals.

LKL said it reasonably expects its future participation in the new businesses may result in the diversion of more than 25 per cent of the net assets of LKL Group, and may result in contributing 25 per cent or more of the group’s net profits.

As such, it said the company had proposed to seek the approval from the shareholders for the proposed diversification — Bernama

In a joint statement, it said the decision to reinstate the original parameters takes into account the improving economic outlook with the roll-out of the Covid-19 vaccination programme and normalisation of global market conditions.

“The temporary revisions to the market management and control mechanisms which have been in place since July 20, 2020 are scheduled to expire on May 30, 2021.

“The SC and Bursa Malaysia will continue to closely monitor global developments and take a prudent approach in implementing necessary measures to support a fair and orderly market,” it said.

The temporary revision of the circuit breaker levels to two trigger levels (10 per cent and 15 per cent only) will revert to three trigger levels (10 per cent, 15 per cent and 20 per cent).

For the static price limit, the lower limit price reverts back to -30 per cent from -15 per cent and upper limit to +30 per cent for securities prices equal or more than RM1 and the lower limit to -30 sen from -15 sen and upper limit to +30 sen for securities prices less than RM1. — Bernama