Latest news with #SPIAssetManagement
The Star
15 hours ago
- Business
- The Star
Bursa Malaysia to trade in cautious mode with upside bias this week
KUALA LUMPUR (Bernama): Bursa Malaysia is expected to trade in cautious mode this week, but with an upside bias amid a constructive backdrop, as investors shift their focus away from the Middle East risks, an analyst said. SPI Asset Management managing partner Stephen Innes believed investors will concentrate on assessing upcoming macroeconomic data releases while awaiting the deadline for the United States' reciprocal tariff pause. "That said, the chances of an extension to the deadline are increasing given recent geopolitical distractions," he told Bernama, adding that market sentiment could also be supported by the possibility of a Federal Reserve rate cut at its July meeting. Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng maintains a cautiously optimistic view on the FTSE Bursa Malaysia KLCI's (FBM KLCI) near-term outlook, as the index shows signs of upward momentum. "We believe that a breakout above the 1,530 level, supported by strong trading volume and sustained price action, would be a constructive signal that the market is ready to stage the next leg of its rally," he said. For the upcoming week, Thong believes that market attention will focus on several key macroeconomic releases, both locally and internationally. "In the near term, we anticipate the FBM KLCI to trade within a range of 1,510 to 1,540," he added. On a weekly basis, the barometer index advanced 25.42 points to 1,528.16 from 1,502.74 in the preceding week. The FBM Emas Index expanded 169.81 points to 11,398.80, the FBMT 100 Index 165.91 points to 11,181.36, and the FBM Emas Shariah Index garnered 139.79 points to 11,341.13. The FBM 70 Index climbed 152.91 points to 16,270.66 and the FBM ACE Index rose 73.91 points to 4,474.76. Across sectors, the Financial Services Index jumped 268.72 points to 17,737.10, the Plantation Index surged 108.50 points to 7,329.02, the Healthcare Index edged up 17.70 points to 1,709.59, and the Industrial Products and Services Index perked up 4.71 points to 151.98. However, the Energy Index declined by 3.03 points to 732.68. Turnover for the shortened trading week narrowed to 11.68 billion units worth RM8.45 billion from 13.72 billion units worth RM10.84 billion in the preceding week. The Main Market volume dropped to 5.40 billion units valued at RM7.39 billion against 6.29 billion units valued at RM9.63 billion previously. Warrants turnover tumbled to 4.96 billion units worth RM655.61 million versus 6.16 billion units worth RM845.61 million a week ago. The ACE Market volume slipped to 1.07 billion units valued at RM399.48 million compared with 1.25 billion units valued at RM361.21 million a week earlier. - Bernama
New Straits Times
19 hours ago
- Business
- New Straits Times
Gold futures to trade range-bound next week amid mixed market forces
KUALA LUMPUR: Gold futures on Bursa Malaysia Derivatives are expected to trade range-bound next week as the precious metal finds itself caught between opposing forces, said an analyst. SPI Asset Management managing partner Stephen Innes said the relentless record-setting rally in US equities is capping its upside momentum, while continued expectations of a US Federal Reserve (Fed) rate cut are offering downside support. However, he said the real swing factor lies in the US dollar as the greenback has remained surprisingly soft — possibly reflecting global underexposure to the US equity rebound, despite Wall Street's surge. "If foreign inflows begin chasing US mega technology companies and the dollar finally catches up with the equity market's enthusiasm, gold could face renewed downside pressure. "While the near-term gold outlook appears range-bound, the landscape is fluid, and a breakout cannot be ruled out if macro positioning shifts significantly," he told Bernama. Therefore, he said gold futures would trade in a tight range between US$3,260 and US$3,340 per troy ounce next week. The market was closed on Friday for the Maal Hijrah public holiday. On a weekly basis, the spot month June 2025 contract dropped to US$3,340.80 per troy ounce on Thursday from US$3,360 last Friday and the July 2025 contract went down to US$3,355.10 per troy ounce from US$3,366.50 per troy ounce previously. The August 2025, September 2025 and October 2025 contracts all fell to US$3,370.80 per troy ounce from US$3,388.60 per troy ounce last Friday. Trading volume decreased to 173 lots from 321 lots recorded in the preceding week, while open interest climbed to 36 contracts from 31 contracts. According to the London Bullion Market Association's afternoon fix on June 26, physical gold was priced at US$3318.70 per troy ounce.
New Straits Times
20 hours ago
- Business
- New Straits Times
Bursa Malaysia to trade in cautious mode with upside bias next week
KUALA LUMPUR: Bursa Malaysia is expected to trade in cautious mode next week, but with an upside bias amid a constructive backdrop, as investors shift their focus away from the Middle East risks, an analyst said. SPI Asset Management managing partner Stephen Innes believed investors will concentrate on assessing upcoming macroeconomic data releases while awaiting the deadline for the United States' reciprocal tariff pause. "That said, the chances of an extension to the deadline are increasing given recent geopolitical distractions," he told Bernama, adding that market sentiment could also be supported by the possibility of a Federal Reserve rate cut at its July meeting. Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng maintains a cautiously optimistic view on the FTSE Bursa Malaysia KLCI's (FBM KLCI) near-term outlook, as the index shows signs of upward momentum. "We believe that a breakout above the 1,530 level, supported by strong trading volume and sustained price action, would be a constructive signal that the market is ready to stage the next leg of its rally," he said. For the upcoming week, Thong believes that market attention will focus on several key macroeconomic releases, both locally and internationally. "In the near term, we anticipate the FBM KLCI to trade within a range of 1,510 to 1,540," he added. On a weekly basis, the barometer index advanced 25.42 points to 1,528.16 from 1,502.74 in the preceding week. The FBM Emas Index expanded 169.81 points to 11,398.80, the FBMT 100 Index 165.91 points to 11,181.36, and the FBM Emas Shariah Index garnered 139.79 points to 11,341.13. The FBM 70 Index climbed 152.91 points to 16,270.66 and the FBM ACE Index rose 73.91 points to 4,474.76. Across sectors, the Financial Services Index jumped 268.72 points to 17,737.10, the Plantation Index surged 108.50 points to 7,329.02, the Healthcare Index edged up 17.70 points to 1,709.59, and the Industrial Products and Services Index perked up 4.71 points to 151.98. However, the Energy Index declined by 3.03 points to 732.68. Turnover for the shortened trading week narrowed to 11.68 billion units worth RM8.45 billion from 13.72 billion units worth RM10.84 billion in the preceding week. The Main Market volume dropped to 5.40 billion units valued at RM7.39 billion against 6.29 billion units valued at RM9.63 billion previously. Warrants turnover tumbled to 4.96 billion units worth RM655.61 million versus 6.16 billion units worth RM845.61 million a week ago. The ACE Market volume slipped to 1.07 billion units valued at RM399.48 million compared with 1.25 billion units valued at RM361.21 million a week earlier.
The Star
4 days ago
- Business
- The Star
Ringgit rises against the greenback
SPI Asset Management's Innes saidthe sustained ceasefire between Israel and Iran has dampened safe-haven demand for the US dollar. KUALA LUMPUR: The ringgit ended firmer yesterday, supported by easing geopolitical tensions and weaker US economic data that continues to pressure the greenback. At 6pm, the local currency rose to 4.2335/2405 versus the greenback from Tuesday's close of 4.2410/2465. SPI Asset Management managing partner Stephen Innes said that the sustained ceasefire between Israel and Iran has dampened safe-haven demand for the US dollar. 'In addition, the United States consumer confidence index deteriorated by 5.4 points in June, falling to 93.0 from 98.4 in May,' he told Bernama. Innes said that Federal Reserve chair Jerome Powell's recent cautious remarks, interpreted as keeping the door open to a possible rate cut, had pushed US treasury yields lower, providing some relief to Asian currencies. 'Although trading remained subdued, the ringgit held on to modest gains at the close,' he added. At the closing, the ringgit traded higher against a basket of major currencies. It appreciated against the yen at 2.9070/9120 from 2.9256/9296 and escalated versus the pound to 5.7631/7726 from 5.7707/7782.
DW
4 days ago
- Business
- DW
Iran: Is the cost of closing the Strait of Hormuz too high? – DW – 06/25/2025
Iran has struck back, but the Strait of Hormuz remains open. Why hasn't Tehran carried out its threat?China and Iran's neighbors may have affecte the decision? For a few days, the world held its breath. It seems the conflict between Israel, the US and Iran is not going to escalate any further, at least for now. Iran opted to save face by launching an attack on a US military base in Qatar, which the stock market interpreted as a de-escalatory gesture. This retaliatory strike by Tehran was "loud enough for headlines, quiet enough not to shake the oil market's foundations," Stephen Innes of SPI Asset Management commented to Reuters. Immediately after the strike on Monday evening, the oil price fell again sharply. And yet Iran holds a powerful trump card. It could do immense damage to the global economy by blockading the Strait of Hormuz. But would this really be to its advantage — or would it be more of an own goal? The US Energy Information Administration (EIA) says that "Iran's economy is relatively diversified compared with many other Middle Eastern countries." However, the goods produced by the country's industry are primarily sold on the domestic market. The export of oil and petroleum products is therefore an important source of income for the government. These constitute more than 17% of the country's total exports, with natural gas at 12%. According to the EIA, Iran was the fourth-largest producer of crude oil among the OPEC countries in 2023, and in 2022 it was the world's third-largest producer of dry gas (natural gas that is at least 85% methane, containing only negligible quantities of condensable gases such as hydrogen). Although it has been subject to sanctions for many years, this has not prevented the Iranian regime from exporting oil. China in particular has benefited: In 2023, it took almost 90% of the oil exported by Iran. In March 2024, the Financial Times quoted Javad Owji, Iran's Minister of Petroleum at the time, saying that Iran's oil exports "generated more than 35 billion dollars" in 2023. According to the World Bank, between April and December 2023 the oil sector represented more than 8% of Iran's GDP. And based on estimates from the data analysis company Vortexa, it is believed to have exported even more the following year. Iran would therefore damage itself if it blocked the Strait of Hormuz. Not only would its own oil revenue be affected, it would also upset its trading partner China, which profits from buying the oil at low cost. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video The London-based TV station Iran International estimates that Tehran sells its oil at a 20% discount on the world market price, because its buyers risk getting into trouble on account of the US sanctions. The broadcaster explained that Chinese refineries are the biggest buyers of Iran's illegal consignments of oil. Intermediaries mix it with deliveries from other countries, and the oil is then declared in China as having been imported from Singapore or other countries of origin. According to Rystad Energy, an independent energy research company based in Norway, China imports a total of almost 11 million barrels of crude oil per day, around 10% of which comes from Iran. A blockade would also have caused trouble for Iran's neighbors. Kuwait, Iraq and the United Arab Emirates also transport their oil through the passage. In a post on Linkedin, the economist Justin Alexander, a Gulf region analyst, commented that if Tehran were to close the strait, this would "undermine remaining alliances" it still has with countries in the region. Whether Iran could actually maintain a blockade is also doubtful. Homayoun Falakshahi from the analytics firm Kpler told German TV that he believed a blockade would provoke a swift and forceful military response from both the US and European countries, and that Iran would only have been able to close the strait for a day or two. Furthermore, if Iran's economic situation were to deteriorate even further, it would go down very badly with the Iranian people. Djavad Salehi-Isfahani, professor of economics at Virginia Tech in the US, told DW that the standard of living in Iran had already dropped to the level of 20 years ago as a result of sanctions. These apply not only to the oil industry, but also to international payment transactions with Iran, which drives up inflation. This has been rising steeply since the beginning of the year, to more than 38.7% in May 2025 compared with May 2024. The combination of sanctions and the low exchange rate is making daily life ever more expensive for people in Iran.
