Kuala Lumpur shares outlook - Mixed on consolidation, focus on oil & gas stocks
29/05/2007 08:16:00
KUALA LUMPUR (XFN-ASIA) - Share prices are expected to open mixed as market
consolidation continues, although positive corporate results such as that of
Malaysia Airlines System (MAS) and follow-through interest in oil and gas stocks
may support sentiment, dealers said.
Teoh Cheng Guan, head of retail research at Kenanga Investment Bank, said there
is downside risk amid lingering fears that China's stock market bubble may burst
anytime.
"Stock picking is key," said Teoh.
He said investors should go for quality blue chips and avoid lower-liners that
involve greater risks when the broader market is consolidating.
Dealers said stocks to watch today include MAS, which is likely to advance
after it reported a first quarter net profit of 133 mln rgt against loss of 321
mln a year earlier.
This is the third consecutive profitable quarter for the national carrier.
Malaysian Plantations may also attract buying after registering a fourth
quarter to March net profit of 55.212 mln rgt from a loss 11.587 mln the
previous year.
Yesterday, the Kuala Lumpur Composite Index (KLCI) closed up 6.91 points or
0.52 pct at 1,345.99.
The FTSE Bursa Malaysia 30-large cap index added 68.61 points or 0.80 pct to
8,627.04 and the second board index was down 1.08 points or 1.08 pct at 101.11.
Gainers led losers 449 to 402, with 274 stocks unchanged and 211 counters
untraded.
Trading volume was 660.481 mln shares, valued at 1.276 bln rgt.
Source : Osk Wirenews
Monday, May 28, 2007
Malaysia's Bank Negara leaves key rate unchanged at 3.50 pct
Malaysia's Bank Negara leaves key rate unchanged at 3.50 pct
28/05/2007 18:00:00
KUALA LUMPUR (XFN-ASIA) - Bank Negara said its monetary policy committee has
decided to leave the overnight policy rate (OPR) unchanged at 3.50 pct as the
economy is expected to sustain growth, while inflation will remain within the
expected range over the medium term.
"Given the medium-term outlook for inflation and economic growth, the current
level of the policy rate remains appropriate," Bank Negara said in a statement.
The central bank said despite the less favourable external environment has had
a moderating effect on Malaysia's export growth, strong domestic demand has
sustained growth.
"The public sector has also had an important positive impact on domestic
economic activity," it added.
On the outlook for inflation, the central bank said the expectations are that
the average rate of inflation for 2007 would be within the projected range of
2-2.5 pct.
However, it cautioned that the continued high prices of commodities and
agricultural products, and the rise in global food prices could have
implications for domestic food prices and overall inflation.
"In view of the uncertainty in the external environment, developments in the
international economy would be monitored closely," it said.
Source: Osk WireNews
28/05/2007 18:00:00
KUALA LUMPUR (XFN-ASIA) - Bank Negara said its monetary policy committee has
decided to leave the overnight policy rate (OPR) unchanged at 3.50 pct as the
economy is expected to sustain growth, while inflation will remain within the
expected range over the medium term.
"Given the medium-term outlook for inflation and economic growth, the current
level of the policy rate remains appropriate," Bank Negara said in a statement.
The central bank said despite the less favourable external environment has had
a moderating effect on Malaysia's export growth, strong domestic demand has
sustained growth.
"The public sector has also had an important positive impact on domestic
economic activity," it added.
On the outlook for inflation, the central bank said the expectations are that
the average rate of inflation for 2007 would be within the projected range of
2-2.5 pct.
However, it cautioned that the continued high prices of commodities and
agricultural products, and the rise in global food prices could have
implications for domestic food prices and overall inflation.
"In view of the uncertainty in the external environment, developments in the
international economy would be monitored closely," it said.
Source: Osk WireNews
Malaysia, Indonesia, Saudi Arabia sign 7-bln-usd oil pipeline deal
Malaysia, Indonesia, Saudi Arabia sign 7-bln-usd oil pipeline deal
28/05/2007 14:38:00
KUALA LUMPUR (XFN-ASIA) - Malaysian, Indonesian and Saudi Arabian firms have
signed agreements for the construction of a pipeline that aims to divert 20 pct
of oil flowing through the Malacca Strait, the project owner said.
Malaysia's Trans-Peninsula Petroleum Sdn Bhd said it signed an agreement with
Malaysia's Ranhill Engineers and Constructors Sdn Bhd and Indonesia's PT
Tripatra to build the pipeline at an estimated cost of 7.0 bln usd over seven
years.
Trans-Peninsula, the owner and promoter of the project, said it signed separate
memoranda of understanding with Bakrie and Brothers of Indonesia to supply
pipes, while Al-Banader International Group of Saudi Arabia will supply the oil.
Prime Minister Abdullah Ahmad Badawi earlier this month first announced the
development, saying it would transport Middle East oil across the north of the
Malaysian peninsula to East Asian countries.
Badawi witnessed the signing with Indonesian President Susilo Bambang Yudhoyono
on the sidelines of the annual World Islamic Economic Forum, aimed at boosting
cooperation among Muslim communities.
"When the entire project is completed in 2014, TRANSPEN pipeline will divert
about 20 pct of oil transiting through Straits of Malacca, proportionately
easing the congestion in the Straits," Trans-Peninsula said in a statement.
Half of the world's oil shipments currently pass through the 960-kilometre
Strait of Malacca, the busiest seaway in the world, which links the Indian Ocean
and the South China Sea.
Source: OSK Wirenews
28/05/2007 14:38:00
KUALA LUMPUR (XFN-ASIA) - Malaysian, Indonesian and Saudi Arabian firms have
signed agreements for the construction of a pipeline that aims to divert 20 pct
of oil flowing through the Malacca Strait, the project owner said.
Malaysia's Trans-Peninsula Petroleum Sdn Bhd said it signed an agreement with
Malaysia's Ranhill Engineers and Constructors Sdn Bhd and Indonesia's PT
Tripatra to build the pipeline at an estimated cost of 7.0 bln usd over seven
years.
Trans-Peninsula, the owner and promoter of the project, said it signed separate
memoranda of understanding with Bakrie and Brothers of Indonesia to supply
pipes, while Al-Banader International Group of Saudi Arabia will supply the oil.
Prime Minister Abdullah Ahmad Badawi earlier this month first announced the
development, saying it would transport Middle East oil across the north of the
Malaysian peninsula to East Asian countries.
Badawi witnessed the signing with Indonesian President Susilo Bambang Yudhoyono
on the sidelines of the annual World Islamic Economic Forum, aimed at boosting
cooperation among Muslim communities.
"When the entire project is completed in 2014, TRANSPEN pipeline will divert
about 20 pct of oil transiting through Straits of Malacca, proportionately
easing the congestion in the Straits," Trans-Peninsula said in a statement.
Half of the world's oil shipments currently pass through the 960-kilometre
Strait of Malacca, the busiest seaway in the world, which links the Indian Ocean
and the South China Sea.
Source: OSK Wirenews
Sunday, May 27, 2007
Transmile Suspended
Malaysia's Transmile trading suspended pending findings of special audit
28/05/2007 10:49:00
KUALA LUMPUR (XFN-ASIA) - Transmile Group Bhd said trading in its shares will
be suspended through Thursday pending a material announcement on the interim
findings of the special audit by Messrs Moores Rowland.
Transmile was last traded at 8.90 rgt.
Source: OSK Wirenews
28/05/2007 10:49:00
KUALA LUMPUR (XFN-ASIA) - Transmile Group Bhd said trading in its shares will
be suspended through Thursday pending a material announcement on the interim
findings of the special audit by Messrs Moores Rowland.
Transmile was last traded at 8.90 rgt.
Source: OSK Wirenews
28.5.07 C.I Market Outlook
28.5.07 C.I Market Outlook
Kuala Lumpur shares outlook - Higher on robust corporate results, Wall St gains
28/05/2007 08:14:00
KUALA LUMPUR (XFN-ASIA) - Share prices are expected to open higher, with
investors heartened by the robust earnings reported by some major companies and
Wall Street's firmer close last Friday, dealers said.
But they said the upside will likely be limited as the market is still in a
consolidation mode and as some investors may opt for caution ahead of the
release of first quarter gross domestic product (GDP) results midweek.
"Although the consolidation phase may still continue, the outlook is generally
positive and gradually improving," RHB Research's head of research Lim Chee Seng
said.
Dealers said stocks likely to be in focus today include oil and gas heavyweight
KNM Group, which may advance after reporting that its first quarter net profit
surged to 38.31 mln rgt from 19.80 mln a year earlier, as well as transport
group Litrak, after it reported a fourth quarter to March net profit of 44.53
mln rgt against 21.09 mln previously.
OSK Holdings may also attract buying after its first quarter net profit jumped
to 77.62 mln rgt against 24.77 mln in the previous corresponding period.
Last Friday, share prices closed off their lows, with strong bargain-hunting
emerging in late trade to recoup most of the earlier losses. The Kuala Lumpur
Composite Index (KLCI) fell by a marginal 1.90 points or 0.14 pct to 1,339.08,
off a low of 1,319.75.
For the week, the key index lost 17 points or 1.25 pct.
The FTSE Bursa Malaysia 30-large cap index lost 14.21 points to 8,558.43 and
the second board index was up 0.48 point at 100.03.
Losers led gainers 428 to 391, with 312 stocks unchanged and 212 counters
untraded.
Trading volume was 951.70 mln shares, valued at 1.92 bln rgt.
Source: OSK Wirenews
Kuala Lumpur shares outlook - Higher on robust corporate results, Wall St gains
28/05/2007 08:14:00
KUALA LUMPUR (XFN-ASIA) - Share prices are expected to open higher, with
investors heartened by the robust earnings reported by some major companies and
Wall Street's firmer close last Friday, dealers said.
But they said the upside will likely be limited as the market is still in a
consolidation mode and as some investors may opt for caution ahead of the
release of first quarter gross domestic product (GDP) results midweek.
"Although the consolidation phase may still continue, the outlook is generally
positive and gradually improving," RHB Research's head of research Lim Chee Seng
said.
Dealers said stocks likely to be in focus today include oil and gas heavyweight
KNM Group, which may advance after reporting that its first quarter net profit
surged to 38.31 mln rgt from 19.80 mln a year earlier, as well as transport
group Litrak, after it reported a fourth quarter to March net profit of 44.53
mln rgt against 21.09 mln previously.
OSK Holdings may also attract buying after its first quarter net profit jumped
to 77.62 mln rgt against 24.77 mln in the previous corresponding period.
Last Friday, share prices closed off their lows, with strong bargain-hunting
emerging in late trade to recoup most of the earlier losses. The Kuala Lumpur
Composite Index (KLCI) fell by a marginal 1.90 points or 0.14 pct to 1,339.08,
off a low of 1,319.75.
For the week, the key index lost 17 points or 1.25 pct.
The FTSE Bursa Malaysia 30-large cap index lost 14.21 points to 8,558.43 and
the second board index was up 0.48 point at 100.03.
Losers led gainers 428 to 391, with 312 stocks unchanged and 212 counters
untraded.
Trading volume was 951.70 mln shares, valued at 1.92 bln rgt.
Source: OSK Wirenews
Wednesday, May 23, 2007
Djone 23.5.2007
Djonne down 14.30point.
Stocks Fall After Greenspan Comments
Wednesday May 23, 6:22 pm ET
By Madlen Read, AP Business Writer
Stocks End Lower After Greenspan Remarks Spur Investors to Cash in Gains
NEW YORK (AP) -- Stocks wilted Wednesday as comments from former Federal Reserve Chairman Alan Greenspan and worries about upcoming economic data deflated a rally fed by takeover activity.
Stocks initially rose, lifting the Dow Jones industrials briefly above 13,600 for the first time, after the market got a fresh load of deal-related news that included a possible bidding battle over aluminum producer Alcan Inc. But the excitement waned after a media report that Greenspan expressed concern that China's stock market -- which has recently been hitting record highs -- could eventually see a sharp decline.
Source: http://biz.yahoo.com/ap/070523/wall_street.html?.v=46
Stocks Fall After Greenspan Comments
Wednesday May 23, 6:22 pm ET
By Madlen Read, AP Business Writer
Stocks End Lower After Greenspan Remarks Spur Investors to Cash in Gains
NEW YORK (AP) -- Stocks wilted Wednesday as comments from former Federal Reserve Chairman Alan Greenspan and worries about upcoming economic data deflated a rally fed by takeover activity.
Stocks initially rose, lifting the Dow Jones industrials briefly above 13,600 for the first time, after the market got a fresh load of deal-related news that included a possible bidding battle over aluminum producer Alcan Inc. But the excitement waned after a media report that Greenspan expressed concern that China's stock market -- which has recently been hitting record highs -- could eventually see a sharp decline.
Source: http://biz.yahoo.com/ap/070523/wall_street.html?.v=46
UTUSAN
UTUSAN － 政治股。成功扭转劣势。转亏为盈。
大选快来临了。 想想看？ ：）
Have a look on it's result. Turn around sucessfully. And it is GLC (government-linked) counter.
Election rumor is hot in the Market now. Think think.... :)
Utusan Melayu Malaysia Q1 net profit 5.04 mln rgt vs loss 2.75 mln
23/05/2007 18:27:00
KUALA LUMPUR (XFN-ASIA) - Newspaper group Utusan Melayu (Malaysia) Bhd first
quarter to March results:
Sales - 88.0 mln rgt vs 86.36 mln
Pretax profit - 5.85 mln rgt vs loss 3.49 mln
Net profit - 5.04 mln rgt vs loss 2.75 mln
Earnings per share - 4.56 sen vs loss 2.52 sen
大选快来临了。 想想看？ ：）
Have a look on it's result. Turn around sucessfully. And it is GLC (government-linked) counter.
Election rumor is hot in the Market now. Think think.... :)
Utusan Melayu Malaysia Q1 net profit 5.04 mln rgt vs loss 2.75 mln
23/05/2007 18:27:00
KUALA LUMPUR (XFN-ASIA) - Newspaper group Utusan Melayu (Malaysia) Bhd first
quarter to March results:
Sales - 88.0 mln rgt vs 86.36 mln
Pretax profit - 5.85 mln rgt vs loss 3.49 mln
Net profit - 5.04 mln rgt vs loss 2.75 mln
Earnings per share - 4.56 sen vs loss 2.52 sen
Monday, May 21, 2007
公仆加薪超出经济学家预估, 政府大派糖果大选近在眉捷
【本刊陈子莹撰述】早前政府就已发出公务员调薪的消息，马来西亚首相阿都拉巴达威今天正式宣布，公务员将可获得7.5 %至35%的调薪，生活津贴全面增加100%，警察与军人将获额外的20%加薪，由7月1日起生效。
根据《马新社》的报道，阿都拉（左图）今天在布特拉在也宣布，公务员在7月1日起，都能获得7.5%至35%的调薪；至于在工作岗位上需冒上生命危险的警察和军人，则会获得另外20%的调薪。
阿都拉也提到，专业阶级（第1至16级）的底薪，可获得35%的调整；而第一支援组（第17级至40级）将可获25%的调整。
政府在调整全国100万2040个公务员的薪水后，今年需耗费马币34亿元，或是每年需花费额外68亿元。至于100%调升公务员生活津贴后，政府也必须在今年内拨出六亿元，在接下来的每一年都必须额外的12亿元。
调薪幅度超出经济学家预估
国内经济学家早前就推算，若是政府要提高公务员薪水5%，我国的财政赤字就会展延至国内生产总值的3.8%。假设所有的状况都维持不变，公务员薪金调整10%，将会把公共开销提高2.4%，同时在2008年的实质国内生产总值（Real GDP）也会提高0.3至0.4点。【点击：公务员调薪到巨无霸指数 加薪也追不上邻国购买力】
显然地，首相今天公布的调薪幅度，已远远超出经济学家的预估。公务员这一次大幅度加薪后，应该会进一步推动国内的私人消费；不过，却也为国库加重了负担。
尽管如此，阿都拉今天在宣布时也提及，政府这一次有能力为公务员调薪，主要的因素来自税收的增高以及更精明的开销。
他接着还特别提起，政府已在去年成功将财政赤字，从5.3%降到3.5%，政府会继续秉持这一套的财政原则。
大选前派糖果的伎俩
另一边厢，社会主义党秘书阿鲁茨万（Arutchelvan，右图）不排除，这是政府在大选前大派政治糖果的技俩。他向《独立新闻在线》提到，眼前可观察的两个大选前“暗示”就是：公务员调薪及降低国内的汽油价格。
除此之外，他非常赞同政府这一次的举动，寄望这一次调薪后，可以让低级公务员的生活水平可以获得提升。毕竟，我国公务员最高和最低薪水的落差，排在全世界最高位。
他也希望，既然政府这次可以调升公务员的薪金，应该进一步把最低薪金制推介到私人界，让全体的工人都能得到保障。
政府这一次调整公务员薪金，升幅最大的相信是最低级的公务员，这些包括了月薪只有马币480元的普通工人，还有就是从事园丁、司机、书记以及普通文员的公务员
Source:http://www.merdekareview.com/news.php?n=4091
根据《马新社》的报道，阿都拉（左图）今天在布特拉在也宣布，公务员在7月1日起，都能获得7.5%至35%的调薪；至于在工作岗位上需冒上生命危险的警察和军人，则会获得另外20%的调薪。
阿都拉也提到，专业阶级（第1至16级）的底薪，可获得35%的调整；而第一支援组（第17级至40级）将可获25%的调整。
政府在调整全国100万2040个公务员的薪水后，今年需耗费马币34亿元，或是每年需花费额外68亿元。至于100%调升公务员生活津贴后，政府也必须在今年内拨出六亿元，在接下来的每一年都必须额外的12亿元。
调薪幅度超出经济学家预估
国内经济学家早前就推算，若是政府要提高公务员薪水5%，我国的财政赤字就会展延至国内生产总值的3.8%。假设所有的状况都维持不变，公务员薪金调整10%，将会把公共开销提高2.4%，同时在2008年的实质国内生产总值（Real GDP）也会提高0.3至0.4点。【点击：公务员调薪到巨无霸指数 加薪也追不上邻国购买力】
显然地，首相今天公布的调薪幅度，已远远超出经济学家的预估。公务员这一次大幅度加薪后，应该会进一步推动国内的私人消费；不过，却也为国库加重了负担。
尽管如此，阿都拉今天在宣布时也提及，政府这一次有能力为公务员调薪，主要的因素来自税收的增高以及更精明的开销。
他接着还特别提起，政府已在去年成功将财政赤字，从5.3%降到3.5%，政府会继续秉持这一套的财政原则。
大选前派糖果的伎俩
另一边厢，社会主义党秘书阿鲁茨万（Arutchelvan，右图）不排除，这是政府在大选前大派政治糖果的技俩。他向《独立新闻在线》提到，眼前可观察的两个大选前“暗示”就是：公务员调薪及降低国内的汽油价格。
除此之外，他非常赞同政府这一次的举动，寄望这一次调薪后，可以让低级公务员的生活水平可以获得提升。毕竟，我国公务员最高和最低薪水的落差，排在全世界最高位。
他也希望，既然政府这次可以调升公务员的薪金，应该进一步把最低薪金制推介到私人界，让全体的工人都能得到保障。
政府这一次调整公务员薪金，升幅最大的相信是最低级的公务员，这些包括了月薪只有马币480元的普通工人，还有就是从事园丁、司机、书记以及普通文员的公务员
Source:http://www.merdekareview.com/news.php?n=4091
YTLPower- Possible Privatisation Target
BROKER CALL - Malaysia's YTL Power undervalued, privatisation target - TA
21/05/2007 15:54:00
KUALA LUMPUR (XFN-ASIA) - YTL Power International Bhd shares have been
undervalued by the market, making the company one of the potential takeover
targets on the local bourse, said TA Research.
"In a recent meeting, its major shareholder has hinted that privatisation of
YTL Power is a possible option if the market continues to undervalue the stock,"
said TA in a note to clients.
YTL Power's share price at current levels does not reflect the fact that the
company provides a steady stream of cash flow to the tune of 900 mln rgt yearly,
it noted.
YTL Corp owns a 57.69 pct stake in YTL Power, according to the company's 2006
annual report.
Besides, there is a good chance for it to become a KLCI component stock that
will increase the appetite for YTL Power among institutions and funds that tract
the benchmark index, said TA.
As a result, the company has a greater chance to benefit from the further
appreciation of the ringgit, triggered by China's latest move to allow a wider
trading band for its yuan, it added.
At 3.32 pm, YTL Power was down 0.03 rgt or 1.21 pct at 2.44, while YTL Corp
gained 0.25 rgt or 2.96 pct to 8.70.
Source: osk wirenews
21/05/2007 15:54:00
KUALA LUMPUR (XFN-ASIA) - YTL Power International Bhd shares have been
undervalued by the market, making the company one of the potential takeover
targets on the local bourse, said TA Research.
"In a recent meeting, its major shareholder has hinted that privatisation of
YTL Power is a possible option if the market continues to undervalue the stock,"
said TA in a note to clients.
YTL Power's share price at current levels does not reflect the fact that the
company provides a steady stream of cash flow to the tune of 900 mln rgt yearly,
it noted.
YTL Corp owns a 57.69 pct stake in YTL Power, according to the company's 2006
annual report.
Besides, there is a good chance for it to become a KLCI component stock that
will increase the appetite for YTL Power among institutions and funds that tract
the benchmark index, said TA.
As a result, the company has a greater chance to benefit from the further
appreciation of the ringgit, triggered by China's latest move to allow a wider
trading band for its yuan, it added.
At 3.32 pm, YTL Power was down 0.03 rgt or 1.21 pct at 2.44, while YTL Corp
gained 0.25 rgt or 2.96 pct to 8.70.
Source: osk wirenews
CIMA - S&P strong BUY
BROKER CALL - Malaysia's CIMA at 'strong buy' on better earnings prospects - S&P
21/05/2007 15:11:00
KUALA LUMPUR (XFN-ASIA) - Standard & Poor's Equities Research said it has kept
its ''strong buy'' call on Cement Industries Of Malaysia (CIMA) with a target
price of 7.50 rgt on expectations of improved earnings ahead after the company's
first quarter results were ''in line'' with its expectations.
"We expect CIMA to report better earnings in the following quarters given
expectations of higher demand to follow through once the Ninth Malaysia Plan
(9MP) projects are implemented and the increase in production capacity by about
150,000 tons per annum from July 2007 to cater to expected stronger demand,'' it
said, noting that the current capacity is 3.4 mln tons
"The upgrade of its two cement plants in Perlis and Negri Sembilan will improve
production efficiency and reduce costs. Furthermore, as volume sales improve, we
expect the increase in pricing to flow through to the group's bottomline,'' S&P
said in a note to clients.
The research house said the risks to its recommendation and target price
''include slower demand arising from a longer-than-expected rollout of 9MP
projects, higher-than-expected raw material and energy costs, and an unexpected
round of cement price war.''
At 3.00 pm, CIMA was flat at 5.55 rgt.
Source: OSK wirenews
21/05/2007 15:11:00
KUALA LUMPUR (XFN-ASIA) - Standard & Poor's Equities Research said it has kept
its ''strong buy'' call on Cement Industries Of Malaysia (CIMA) with a target
price of 7.50 rgt on expectations of improved earnings ahead after the company's
first quarter results were ''in line'' with its expectations.
"We expect CIMA to report better earnings in the following quarters given
expectations of higher demand to follow through once the Ninth Malaysia Plan
(9MP) projects are implemented and the increase in production capacity by about
150,000 tons per annum from July 2007 to cater to expected stronger demand,'' it
said, noting that the current capacity is 3.4 mln tons
"The upgrade of its two cement plants in Perlis and Negri Sembilan will improve
production efficiency and reduce costs. Furthermore, as volume sales improve, we
expect the increase in pricing to flow through to the group's bottomline,'' S&P
said in a note to clients.
The research house said the risks to its recommendation and target price
''include slower demand arising from a longer-than-expected rollout of 9MP
projects, higher-than-expected raw material and energy costs, and an unexpected
round of cement price war.''
At 3.00 pm, CIMA was flat at 5.55 rgt.
Source: OSK wirenews
Why StemLife shoot up?
Malaysia's StemLife Q1 net profit 2.042 mln rgt vs 405,000
21/05/2007 18:25:00
KUALA LUMPUR (XFN-ASIA) - Cell bank operator StemLife Bhd first quarter to
March results:
Sales - 5.03 mln rgt vs 2.59 mln
Pretax profit - 2.045 mln rgt vs 405,000
Net profit - 2.042 mln rgt vs 405,000
EPS - 1.24 sen vs 0.58 sen
Source: osk wirenews
21/05/2007 18:25:00
KUALA LUMPUR (XFN-ASIA) - Cell bank operator StemLife Bhd first quarter to
March results:
Sales - 5.03 mln rgt vs 2.59 mln
Pretax profit - 2.045 mln rgt vs 405,000
Net profit - 2.042 mln rgt vs 405,000
EPS - 1.24 sen vs 0.58 sen
Source: osk wirenews
Sunday, May 20, 2007
大选跫音近政府大派糖果,百万公务员调薪7.5至35%
大选跫音近政府大派糖果
百万公务员调薪7.5至35%
07年5月21日 下午1:14
即时新闻 政府今日为全国逾百万名公务员捎来佳音，正式宣布调高公务员薪金，幅度介于7.5%至35%之间，而公务员生活津贴（Cola）也获得调高100%。
根据《马新社》报道，首相阿都拉今日是在布城宣布，公务员的调薪将从7月1日起生效。
Source: http://www.malaysiakini.com/news/67495
百万公务员调薪7.5至35%
07年5月21日 下午1:14
即时新闻 政府今日为全国逾百万名公务员捎来佳音，正式宣布调高公务员薪金，幅度介于7.5%至35%之间，而公务员生活津贴（Cola）也获得调高100%。
根据《马新社》报道，首相阿都拉今日是在布城宣布，公务员的调薪将从7月1日起生效。
Source: http://www.malaysiakini.com/news/67495
分析师提醒投资者 对股市采谨慎态度
分析师提醒投资者 对股市采谨慎态度
● 徐伏钢
依据历史的经验，正当全民踊跃炒股，相信“钱太好赚”的季节，大约也是到了该强调“股市有风险，入场要谨慎”的时候了。
中国央行上周五宣布，同时上调存贷款基准利率及存款准备金率，并扩大人民币兑美元波幅。分析师普遍表示，中国同时出台上述三项政策，主要意图在于遏制愈演愈烈的资金流动性泛滥，并缓解目前的通货膨胀压力。受此影响，股市在短线内会出现明显震荡。
业内人士认为，上述举措尚难以扭转目前市场资金过剩的局面，央行在未来较长一段时间内仍将频繁出台货币紧缩政策，以保持资金面的平稳。虽然这些政策并不是直接针对股市而来的，但相信其中一个目的，也是要为股市降温。如果中国股市继续上涨，当局可能还会出台直接针对股市的更严厉的措施。因此，预计短期内牛市将暂告一个段落，进入盘整期。
中国股市若大幅回调,短期必冲击本地市场,人们相信，一旦中国股市出现大幅回调，短期内势必会对本地股市带来一定冲击。
海峡时报指数上周两度重新站上3500点，最高达到3531.85点，周五以3512.40点作收，一周收涨65.48点，或1.9％。大华自动报价指数收报217.89点，上扬0.9％。
多数分析师提醒投资者对股市采取谨慎态度。德意志摩根建富证券高级交易董事叶忠英说，中国沪深两市随时可能面临调整，眼下投资者不应频繁进出市场，以免因中国股市出现突然调整而措手不及。
麦格理证券一名分析师甚至表示，股民应该对新加坡等东南亚股市采取谨慎态度，把资金转而投资在日本和韩国等近期表现比较滞后的股市。
Source:http://www.zaobao.com/cj/cj070521_519.html
● 徐伏钢
依据历史的经验，正当全民踊跃炒股，相信“钱太好赚”的季节，大约也是到了该强调“股市有风险，入场要谨慎”的时候了。
中国央行上周五宣布，同时上调存贷款基准利率及存款准备金率，并扩大人民币兑美元波幅。分析师普遍表示，中国同时出台上述三项政策，主要意图在于遏制愈演愈烈的资金流动性泛滥，并缓解目前的通货膨胀压力。受此影响，股市在短线内会出现明显震荡。
业内人士认为，上述举措尚难以扭转目前市场资金过剩的局面，央行在未来较长一段时间内仍将频繁出台货币紧缩政策，以保持资金面的平稳。虽然这些政策并不是直接针对股市而来的，但相信其中一个目的，也是要为股市降温。如果中国股市继续上涨，当局可能还会出台直接针对股市的更严厉的措施。因此，预计短期内牛市将暂告一个段落，进入盘整期。
中国股市若大幅回调,短期必冲击本地市场,人们相信，一旦中国股市出现大幅回调，短期内势必会对本地股市带来一定冲击。
海峡时报指数上周两度重新站上3500点，最高达到3531.85点，周五以3512.40点作收，一周收涨65.48点，或1.9％。大华自动报价指数收报217.89点，上扬0.9％。
多数分析师提醒投资者对股市采取谨慎态度。德意志摩根建富证券高级交易董事叶忠英说，中国沪深两市随时可能面临调整，眼下投资者不应频繁进出市场，以免因中国股市出现突然调整而措手不及。
麦格理证券一名分析师甚至表示，股民应该对新加坡等东南亚股市采取谨慎态度，把资金转而投资在日本和韩国等近期表现比较滞后的股市。
Source:http://www.zaobao.com/cj/cj070521_519.html
担心股市随时崩盘 中国典当行压低股票当价
担心股市随时崩盘 中国典当行压低股票当价
（北京、上海综合讯）中国股市持续暴涨，也掀起股票典当市场热潮，一些股民将手上的股票，按照市值的一定比例，典当换取现金，由于目前大盘指数过高，典当行很担心股市随时崩盘，开始通过降低典当比例、提高费率来控制风险，还派人在股市大厅监控驻守。
一些中国股民现在来到典当行，打算把手上的股票典当换取资金，再投入股市，不过现在股民却发现，典当的额度不但明显降低，而且规定也更严格。
典当行表示，目前这样也是不得已的，因为今年典当股票就比去年同期增加20％，而股票正处在历史高位，他们担心股市随时有崩盘的可能。
北京银达典当公司经理陈涛：“我们这边在股票交易大厅，有专门的监控。”由于典当股票的生意暴增，因此当舖也把原先的费率提高，同时股票典当的比例也大幅缩水，兑现最低还降到市值的30％。
另外，为了规避风险，如果典当户的股票市值跌到典当金额的1.4倍，典当行这时还可以通过证券公司进行强行平仓。
降低典当比例
根据新华网报道，随着上证综指站上4000点，大盘“畏高”情绪渐浓，一度火热的股票典当也开始降温，典当行通过降低典当比例、提高费率来控制风险。
去年下半年启动的“牛市”行情，催热了原本冷清的典当市场，一些市民把房产、汽车、股票拿去典当，换取现金入市。随着股市高位运行，风险也越来越大，江苏的不少典当行对股票典当的态度开始从“热推”转向“严控”。
南京金瑞典当有限公司的负责人告诉记者，从4月中旬开始，他们就将股票典当的费率从每月1.8％提高到了2.4％，典当比例也从股票市值的100％调低至50％。
另一家锺山典当的工作人员也表示：“前段时间股票的典当金额可以达到市值的七成到八成，现在我顶多给你五成。而且我们现在控制得很严，最近都没有做股票典当。”
Source: http://www.zaobao.com/cj/cj070521_502.html
（北京、上海综合讯）中国股市持续暴涨，也掀起股票典当市场热潮，一些股民将手上的股票，按照市值的一定比例，典当换取现金，由于目前大盘指数过高，典当行很担心股市随时崩盘，开始通过降低典当比例、提高费率来控制风险，还派人在股市大厅监控驻守。
一些中国股民现在来到典当行，打算把手上的股票典当换取资金，再投入股市，不过现在股民却发现，典当的额度不但明显降低，而且规定也更严格。
典当行表示，目前这样也是不得已的，因为今年典当股票就比去年同期增加20％，而股票正处在历史高位，他们担心股市随时有崩盘的可能。
北京银达典当公司经理陈涛：“我们这边在股票交易大厅，有专门的监控。”由于典当股票的生意暴增，因此当舖也把原先的费率提高，同时股票典当的比例也大幅缩水，兑现最低还降到市值的30％。
另外，为了规避风险，如果典当户的股票市值跌到典当金额的1.4倍，典当行这时还可以通过证券公司进行强行平仓。
降低典当比例
根据新华网报道，随着上证综指站上4000点，大盘“畏高”情绪渐浓，一度火热的股票典当也开始降温，典当行通过降低典当比例、提高费率来控制风险。
去年下半年启动的“牛市”行情，催热了原本冷清的典当市场，一些市民把房产、汽车、股票拿去典当，换取现金入市。随着股市高位运行，风险也越来越大，江苏的不少典当行对股票典当的态度开始从“热推”转向“严控”。
南京金瑞典当有限公司的负责人告诉记者，从4月中旬开始，他们就将股票典当的费率从每月1.8％提高到了2.4％，典当比例也从股票市值的100％调低至50％。
另一家锺山典当的工作人员也表示：“前段时间股票的典当金额可以达到市值的七成到八成，现在我顶多给你五成。而且我们现在控制得很严，最近都没有做股票典当。”
Source: http://www.zaobao.com/cj/cj070521_502.html
Ringgit, peso at multi-year highs
21-05-2007: Ringgit, peso at multi-year highs
Email us your feedback at fd@bizedge.com
The ringgit and the Philippine peso hit multi-year highs on May 21 to lead Asian currencies higher after China widened the yuan's trading band against the dollar and lifted interest rates.
The yuan will now be permitted to rise or fall by 0.5% each day versus the dollar, rather than 0.3%. The central bank raised its one-year lending rate by 0.18 percentage point and its one-year deposit rate by 0.27 percentage point.
This is seen paving the way for faster appreciation of the yuan, dragging Asian currencies higher too. The ringgit and Singapore dollar, trading proxies for the yuan, are expected to benefit the most.
The ringgit strengthened to 3.3910 per dollar, its highest in just over nine years, making a decisive push through the 3.4 level that had proved a tough chart barrier for more than a week.
"It is primarily because of the Chinese rate move as well as the widening of the band," said a trader in Kuala Lumpur. "So the first reaction is to sell dollar/ringgit."
But he added that the move through 3.4 per dollar had also triggered profit taking, with the central bank likely to step in to the market and buy dollars in the 3.39 area.
The Philippine peso extended recent gains to 46.39 per dollar, its strongest level since early 2001, while the Indonesian rupiah rose almost half a percent to about 8,775 per dollar.
The South Korean won firmed to about 931 per dollar, up about 0.4% from May 18's six-week lows.
Alvin Cheng, a trader at Fortis Bank in Hong Kong, said Asian currencies were also benefiting from a pick up in demand for yield that has been seen in the past few weeks.
"With slightly weaker Asian currencies in the last two sessions, it seems attractive for traders to re-enter the long Asian trades," he said.
Elsewhere, the Singapore dollar gained about a fifth of a percent to 1.5226 to the US dollar, supported by data showing Singapore's economy grew at a stronger-than-expected annualised rate of 7.6% in the first quarter.
Analysts at ABN AMRO said the data together with the Chinese yuan band widening should support the Singapore dollar, which it estimated was trading just eight basis points above the mid-point of its secret trade-weighted band.
The Singapore dollar came under pressure last week amid weak economic data and a sharp fall in local interest rates.
"We remain upbeat on a stronger Singapore dollar, especially in a general weaker dollar-Asia trend, with our year-end forecast at 1.4700," ABN AMRO analyst Shiang Hue Lye said in a note.
Asian currencies showed little immediate reaction to a weekend meeting of Group of Eight finance ministers. The G8 communique made no mention of currencies and ministers said there was no discussion on foreign exchange. - Reuters
Sourse:http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_acbba43b-cb73c03a-a1aa8500-4ed25594
Email us your feedback at fd@bizedge.com
The ringgit and the Philippine peso hit multi-year highs on May 21 to lead Asian currencies higher after China widened the yuan's trading band against the dollar and lifted interest rates.
The yuan will now be permitted to rise or fall by 0.5% each day versus the dollar, rather than 0.3%. The central bank raised its one-year lending rate by 0.18 percentage point and its one-year deposit rate by 0.27 percentage point.
This is seen paving the way for faster appreciation of the yuan, dragging Asian currencies higher too. The ringgit and Singapore dollar, trading proxies for the yuan, are expected to benefit the most.
The ringgit strengthened to 3.3910 per dollar, its highest in just over nine years, making a decisive push through the 3.4 level that had proved a tough chart barrier for more than a week.
"It is primarily because of the Chinese rate move as well as the widening of the band," said a trader in Kuala Lumpur. "So the first reaction is to sell dollar/ringgit."
But he added that the move through 3.4 per dollar had also triggered profit taking, with the central bank likely to step in to the market and buy dollars in the 3.39 area.
The Philippine peso extended recent gains to 46.39 per dollar, its strongest level since early 2001, while the Indonesian rupiah rose almost half a percent to about 8,775 per dollar.
The South Korean won firmed to about 931 per dollar, up about 0.4% from May 18's six-week lows.
Alvin Cheng, a trader at Fortis Bank in Hong Kong, said Asian currencies were also benefiting from a pick up in demand for yield that has been seen in the past few weeks.
"With slightly weaker Asian currencies in the last two sessions, it seems attractive for traders to re-enter the long Asian trades," he said.
Elsewhere, the Singapore dollar gained about a fifth of a percent to 1.5226 to the US dollar, supported by data showing Singapore's economy grew at a stronger-than-expected annualised rate of 7.6% in the first quarter.
Analysts at ABN AMRO said the data together with the Chinese yuan band widening should support the Singapore dollar, which it estimated was trading just eight basis points above the mid-point of its secret trade-weighted band.
The Singapore dollar came under pressure last week amid weak economic data and a sharp fall in local interest rates.
"We remain upbeat on a stronger Singapore dollar, especially in a general weaker dollar-Asia trend, with our year-end forecast at 1.4700," ABN AMRO analyst Shiang Hue Lye said in a note.
Asian currencies showed little immediate reaction to a weekend meeting of Group of Eight finance ministers. The G8 communique made no mention of currencies and ministers said there was no discussion on foreign exchange. - Reuters
Sourse:http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_acbba43b-cb73c03a-a1aa8500-4ed25594
Saturday, May 19, 2007
股市经典
股市经典1： ＂连分析师也感到无奈时，就是买进的好时机＂
-Peter Lynch
股市经典2： ＂退潮后，你才知道谁是裸泳者＂
-Warrent Buffett
股市经典3： ＂一家公司的股票，今天，明天，下周或明年售价多少，并不重要，重要的是有关公司５年或１０年内的业绩表现＂
-Warrent Buffett
股市经典４： ＂当优质公司被不寻常的环境所困，使它的股票价值被曲解，就是最大投资机会＂
-Warrent Buffett
股市经典５： ＂只有一小撮投资者作出好的决定，理由是大部分的思考，被过去的经验所操纵＂
-Paul F.Miller Jr.
-Peter Lynch
股市经典2： ＂退潮后，你才知道谁是裸泳者＂
-Warrent Buffett
股市经典3： ＂一家公司的股票，今天，明天，下周或明年售价多少，并不重要，重要的是有关公司５年或１０年内的业绩表现＂
-Warrent Buffett
股市经典４： ＂当优质公司被不寻常的环境所困，使它的股票价值被曲解，就是最大投资机会＂
-Warrent Buffett
股市经典５： ＂只有一小撮投资者作出好的决定，理由是大部分的思考，被过去的经验所操纵＂
-Paul F.Miller Jr.
中國猛樂冷卻股市,China widens yuan
罕見同步調高利率匯率
中國猛樂冷卻股市 推薦給朋友 列印
updated:2007-05-19 17:58:42 MYT
（北京訊）中國人民銀行週五宣布，同步調整利率和匯率政策，調高存貸款基準利率和存款準備率、並擴大人民幣兌美元交易價的浮動幅度，主要是要冷切過熱的股市和經濟活動，防止一發不可收拾的股市崩盤事件發生。
近期中國全民“股瘋”，已經令市場非常擔心，一旦“熱過度”的股泡沫爆破，不但中國經濟和上億股民受傷，全球的股市也為之“震動”而遭殃；今年2月的全球股災，元凶就是中國股市無預警的調整造成的。
中國行這次下猛葯，三管齊下（調升貨款、存款和匯率），就是防患未然的做法。這是近十年來，中國首次同步調高存貸基準利率和存款準備率，升息主要目的是在替過熱的中國股市降溫。
擴大人民幣浮動幅度
至於人民幣兌美元交易價浮動幅度下周一起也擴大，由0.3%擴大至0.5%，向國際宣示允許人民幣升值幅度加快。
中國罕見地同步推出3項重要雙率政策，主要是加強宏觀調控力度，遏止今年第1季以來快速增加的經濟成長率。
中國自前年7月匯率改革以來，人民幣浮動幅度一直維持在每日0.3%。下週一起，擴大人民幣浮動幅度，可能將加快人民幣升值，有助平衡中國持續擴大的貿易盈餘。
中國中行宣佈今天起，調高金融機構人民幣存貸款基準利率，引導利率上升。6月5日起，調高人民幣存款準備率0.5%至11.5%。
其中，金融機構一年期存款基準利率上調0.279%，調整後為3.06%；一年期貸款基準利率上調0.18%，由6.39%提高至6.57%，為逾8年最高。其他各天期存貸款基準利率也隨之調整。
這是中國中行自2004年以來第5次升息。至於調高存款準備率，則是2006年以來第8次調整。 （星洲日報‧2007.05.19）
Source:http://www.sinchew.com.my/content.phtml?sec=&artid=200705191693
=================================================
18-05-2007: China widens yuan leeway, ups rates before US talks
By Eadie Chen & Zhou Xin
Email us your feedback at fd@bizedge.com
China's yuan will be allowed to trade more freely, the central bank announced on May 18 as it also raised interest rates just days ahead of a key meeting with the United States to discuss trade tensions.
The steps, which prompted the yen to jump sharply against the euro and dollar, are likely to be interpreted as both an olive branch to Washington and as a signal that China is serious about keeping the world's fourth-largest economy in check.
The US Treasury welcomed the policy moves but said it would continue to press for greater appreciation of the yuan.
"The Treasury view is that this is a useful step towards greater currency flexibility," US Special Envoy for China Alan Holmer told a news briefing.
The yuan will now be permitted to rise or fall by 0.5% each day, up from a 0.3% margin. The central bank raised its one-year lending rate by 0.18 percentage point and the one-year deposit rate by 0.27.
"The band widening announcement is a gift to the Americans," said Mei Xinyu, researcher with a think-tank under the Ministry of Commerce in Beijing.
"Everybody knew that the band would be widened sooner or later, and announcing it right ahead of the talks is not bad timing. China can maybe ask something back from the US side."
US Treasury Secretary Henry Paulson will play host to a Chinese delegation led by Vice Premier Wu Yi from May 22-23 in Washington to discuss sticking points in trade relations, including the value of the yuan, as part of a "strategic economic dialogue" set up last year.
Paulson, under pressure from Congress, said on May 17 he would keep trying to persuade China to let markets set the value of the yuan.
"They are showing they are willing to show more flexibility but we have to see how the currency will behave," said Marios Maratheftis, currency strategist at Standard Chartered in London, of China's moves. "We still think it will be a gradual appreciation with the new band not being fully used either."
Chairing a meeting of G8 finance ministers near the eastern German city of Potsdam, German Finance Minister Peer Streinbrueck also backed the move. "There has been strong agreement in the G7 circle ... that exchange rates should develop on the basis of the market and that we are not interested in abrupt changes," he said.
The widening of the yuan's band will take effect on May 21, when it will be permitted to rise or fall by 0.5% each day from a mid-point set each morning.
On most days, the yuan ranges less than 0.15% from its dollar midpoint. The biggest move was a 0.28% fall on Aug 15, 2006.
"This is favourable for further promoting the development of the foreign exchange market and will increase the flexibility of the yuan's exchange rate," the central bank said in a statement.
The United States has been pressing China to let the yuan, which critics say is artificially undervalued, to strengthen more quickly as a way of helping to narrow its large trade deficit with China, which hit US$233 billion (RM792.44 billion) last year.
But the central bank reaffirmed its official line that it would keep the yuan basically stable, saying the band widening did not mean that the currency would appreciate significantly.
The currency closed on May 18 at its highest level since it was revalued by 2.1% and untethered from a dollar peg in July 2005. It has appreciated by nearly 5.8% since then.
The central bank also said it would raise both deposit and lending rates, as well as the proportion of deposits that banks must hold in reserve -- a rare parallel step.
The rate changes will take effect on May 19 and will bring the one-year deposit rate to 3.06 from 2.79% and the one-year benchmark lending rate to 6.57% from 6.39.
Markets responded strongly to the news.
The yen, often seen as a proxy for the closely-managed yuan, bounced decisively away from record lows against the euro struck earlier this week.
Early in the New York session, the dollar had slid 0.2% on the day to 120.93 yen, while the euro fell 0.4% to 163.08.
Increasing deposit rates by more than lending rates would help ease the current situation of negative real deposit rates, which has prompted individuals to flock in droves into the country's red-hot stock markets, causing concerns over a bubble.
Trimming the differential between deposit and lending rates would also help discourage banks from giving out loans, thus helping to rein in an investment frenzy, analysts said.
"I think the government just wants to send the market a very clear-cut signal that it is very committed to steering the economy towards safe waters," said Zhu Jianfang, chief economist with China Securities in Beijing.
Banks' reserve requirement ratio would be increased by 0.5 percentage point, effective June 5, the central bank said. That takes the ratio for big banks to 11.5%.
China has now raised interest rates four times since April 27, 2006, and reserve requirements eight times since June 2006. -- Reuters
Source: http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_9fae16ca-cb73c03a-186f3b30-c2cff848
中國猛樂冷卻股市 推薦給朋友 列印
updated:2007-05-19 17:58:42 MYT
（北京訊）中國人民銀行週五宣布，同步調整利率和匯率政策，調高存貸款基準利率和存款準備率、並擴大人民幣兌美元交易價的浮動幅度，主要是要冷切過熱的股市和經濟活動，防止一發不可收拾的股市崩盤事件發生。
近期中國全民“股瘋”，已經令市場非常擔心，一旦“熱過度”的股泡沫爆破，不但中國經濟和上億股民受傷，全球的股市也為之“震動”而遭殃；今年2月的全球股災，元凶就是中國股市無預警的調整造成的。
中國行這次下猛葯，三管齊下（調升貨款、存款和匯率），就是防患未然的做法。這是近十年來，中國首次同步調高存貸基準利率和存款準備率，升息主要目的是在替過熱的中國股市降溫。
擴大人民幣浮動幅度
至於人民幣兌美元交易價浮動幅度下周一起也擴大，由0.3%擴大至0.5%，向國際宣示允許人民幣升值幅度加快。
中國罕見地同步推出3項重要雙率政策，主要是加強宏觀調控力度，遏止今年第1季以來快速增加的經濟成長率。
中國自前年7月匯率改革以來，人民幣浮動幅度一直維持在每日0.3%。下週一起，擴大人民幣浮動幅度，可能將加快人民幣升值，有助平衡中國持續擴大的貿易盈餘。
中國中行宣佈今天起，調高金融機構人民幣存貸款基準利率，引導利率上升。6月5日起，調高人民幣存款準備率0.5%至11.5%。
其中，金融機構一年期存款基準利率上調0.279%，調整後為3.06%；一年期貸款基準利率上調0.18%，由6.39%提高至6.57%，為逾8年最高。其他各天期存貸款基準利率也隨之調整。
這是中國中行自2004年以來第5次升息。至於調高存款準備率，則是2006年以來第8次調整。 （星洲日報‧2007.05.19）
Source:http://www.sinchew.com.my/content.phtml?sec=&artid=200705191693
=================================================
18-05-2007: China widens yuan leeway, ups rates before US talks
By Eadie Chen & Zhou Xin
Email us your feedback at fd@bizedge.com
China's yuan will be allowed to trade more freely, the central bank announced on May 18 as it also raised interest rates just days ahead of a key meeting with the United States to discuss trade tensions.
The steps, which prompted the yen to jump sharply against the euro and dollar, are likely to be interpreted as both an olive branch to Washington and as a signal that China is serious about keeping the world's fourth-largest economy in check.
The US Treasury welcomed the policy moves but said it would continue to press for greater appreciation of the yuan.
"The Treasury view is that this is a useful step towards greater currency flexibility," US Special Envoy for China Alan Holmer told a news briefing.
The yuan will now be permitted to rise or fall by 0.5% each day, up from a 0.3% margin. The central bank raised its one-year lending rate by 0.18 percentage point and the one-year deposit rate by 0.27.
"The band widening announcement is a gift to the Americans," said Mei Xinyu, researcher with a think-tank under the Ministry of Commerce in Beijing.
"Everybody knew that the band would be widened sooner or later, and announcing it right ahead of the talks is not bad timing. China can maybe ask something back from the US side."
US Treasury Secretary Henry Paulson will play host to a Chinese delegation led by Vice Premier Wu Yi from May 22-23 in Washington to discuss sticking points in trade relations, including the value of the yuan, as part of a "strategic economic dialogue" set up last year.
Paulson, under pressure from Congress, said on May 17 he would keep trying to persuade China to let markets set the value of the yuan.
"They are showing they are willing to show more flexibility but we have to see how the currency will behave," said Marios Maratheftis, currency strategist at Standard Chartered in London, of China's moves. "We still think it will be a gradual appreciation with the new band not being fully used either."
Chairing a meeting of G8 finance ministers near the eastern German city of Potsdam, German Finance Minister Peer Streinbrueck also backed the move. "There has been strong agreement in the G7 circle ... that exchange rates should develop on the basis of the market and that we are not interested in abrupt changes," he said.
The widening of the yuan's band will take effect on May 21, when it will be permitted to rise or fall by 0.5% each day from a mid-point set each morning.
On most days, the yuan ranges less than 0.15% from its dollar midpoint. The biggest move was a 0.28% fall on Aug 15, 2006.
"This is favourable for further promoting the development of the foreign exchange market and will increase the flexibility of the yuan's exchange rate," the central bank said in a statement.
The United States has been pressing China to let the yuan, which critics say is artificially undervalued, to strengthen more quickly as a way of helping to narrow its large trade deficit with China, which hit US$233 billion (RM792.44 billion) last year.
But the central bank reaffirmed its official line that it would keep the yuan basically stable, saying the band widening did not mean that the currency would appreciate significantly.
The currency closed on May 18 at its highest level since it was revalued by 2.1% and untethered from a dollar peg in July 2005. It has appreciated by nearly 5.8% since then.
The central bank also said it would raise both deposit and lending rates, as well as the proportion of deposits that banks must hold in reserve -- a rare parallel step.
The rate changes will take effect on May 19 and will bring the one-year deposit rate to 3.06 from 2.79% and the one-year benchmark lending rate to 6.57% from 6.39.
Markets responded strongly to the news.
The yen, often seen as a proxy for the closely-managed yuan, bounced decisively away from record lows against the euro struck earlier this week.
Early in the New York session, the dollar had slid 0.2% on the day to 120.93 yen, while the euro fell 0.4% to 163.08.
Increasing deposit rates by more than lending rates would help ease the current situation of negative real deposit rates, which has prompted individuals to flock in droves into the country's red-hot stock markets, causing concerns over a bubble.
Trimming the differential between deposit and lending rates would also help discourage banks from giving out loans, thus helping to rein in an investment frenzy, analysts said.
"I think the government just wants to send the market a very clear-cut signal that it is very committed to steering the economy towards safe waters," said Zhu Jianfang, chief economist with China Securities in Beijing.
Banks' reserve requirement ratio would be increased by 0.5 percentage point, effective June 5, the central bank said. That takes the ratio for big banks to 11.5%.
China has now raised interest rates four times since April 27, 2006, and reserve requirements eight times since June 2006. -- Reuters
Source: http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_9fae16ca-cb73c03a-186f3b30-c2cff848
Subscribe to:
Posts (Atom)
