Borneo Bulletin Digital

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Business 12 THURSDAY, JULY 9, 2020
DAILY STOCK INDICES AND SECURITIESMARKET NEWSWATCH
(08/07/20)
MAJOR STOCK INDICES
DJIA : 25,890.18 (-396.85)
S&P 500 : 3,145.32 (-34.40)
HSI : 26,129.18 (+153.52)
STI : 2,666.42 (+5.00)
KLSE : 1,583.50 (+16.78)
SHCOMP : 3,403.44 (+58.10)
REVIEW
US stock futures were little changed early Wednesday, following weakness
in equities in the previous session. Dow futures suggested an opening gain of
about 20 points. S&P 500 futures and Nasdaq-100 futures were both also nearly
unchanged. On Tuesday, the Dow Jones Industrial Average fell 397 points, or 1.5
per cent, breaking a two-day winning streak. The Dow was brought down by a
4.8 per cent drop in Boeing. The S&P 500 also registered a loss, slipping 1.1 per
cent, to break a —ive day win streak. Stocks that hinge on the reopening of the
economy dragged down the broader market as investors digested a resurgence in
coronavirus cases in the US. More than 2.93 million coronavirus cases have been
con—irmed in the US alongwith at least 130,306 deaths, according to Johns Hopkins
University. Sentiment was boosted when the US government awarded drugmaker
Novavax a USD1.6 billion contract to develop a coronavirus vaccine, the biggest
amount yet granted under the White House’s ‘Operation Warp Speed’.
Stocks inAsiaweremixed onWednesday as concerns surrounding the coronavirus
pandemic continued to linger. Mainland Chinese stocks built on the solid run
they’ve had so far this week as they led gains in the region for yet another day.
The Shanghai composite closed 1.74 per cent higher at around 3,403.44 while the
Shenzhen component rose 1.841 per cent to end its trading day at about 13,406.37.
Hong Kong’s Hang Seng index also added 0.42 per cent, as of its —inal hour of
trading. Elsewhere, however, other major markets in the region saw losses on the
day. In Japan, the Nikkei 225 dipped 0.78 per cent to close at 22,438.65 while the
Topix index shed 0.92 per cent to 1,557.23. Over in South Korea, the Kospi ended
its trading day 0.24 per cent lower at 2,158.88. Meanwhile, the S&P/ASX 200 in
Australia dropped 1.54 per cent to close at 5,920.30.
Gold steadied near a more than eight-year high on Wednesday, as worries over
surging COVID¤19 cases and hopes of more stimulus measures from the US Federal
Reserve lifted demand for the safe-haven metal. Spot gold was little changed
at USD1,792.79 per ounce by 0241 GMT. US gold futures eased 0.2 per cent to
USD1,805.70.
Disclaimer: All information is not intended as professional advice to users. All investment
products and services are not obligations of or guaranteed by Baiduri Capital and are subject
to investment risks.
For more information, please call us on 226 8825.
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Baiduri Capital Sdn Bhd is an entity wholly owned by Baiduri Bank and is part of the Baiduri
Bank Group. Baiduri Capital offers a wide range of investment services as below:
• Equities Trading • Exchange Traded Fund • Bonds • Unit Trust
• Investment-linked Life Insurance Products
Published from Tuesday to Saturday
Published from Tuesday to Saturday
CCY BID OFFER TENOR SGD USD
EUR/USD
USD/JPY
GBP/USD
USD/CHF
AUD/USD
NZD/USD
USD/CAD
USD/HKD
USD/SGD
USD/MYR
USD/THB
USD/IDR
USD/PHP
USD/KRW
1.1287
107.49
1.2546
0.9411
0.6948
0.6547
1.3588
7.7500
1.3948
4.2720
31.24
14350
49.50
1195.55
1.1291
107.52
1.2548
0.9415
0.6950
0.6551
1.3592
7.7501
1.3953
4.2770
31.25
14470
49.52
1195.95
Overnight
1 week
1 mth
3 mth
6 mth
9 mth
12 mth
0.01
0.00
0.00
0.00
0.00
0.62
0.07
0.15
0.03
0.05
0.07
0.16
0.23
0.29
CRUDE AND GOLD PRICES
USD
Gold: 1,797.25 0.17
Brent: 42.91 0.17
DAILY INTERBANK FOREX &MONEYMARKET COMMENTARY
(08/07/20)
FX OUTLOOK
In Australia, analysts at CBA noted Victoria accounted for roughly 24 per cent of the
country’s annual economic output and estimated a six-week lockdown of its capital
city could shave asmuch as one percentage point from third quarter gross domestic
product (GDP). The government has —lagged that further —iscal stimulus will likely
be needed beyond the initial cut-off date of end September, and even hinted at
bringing forward large-scale tax cuts to boost spending. Such a shift would add to
already record borrowing needs and put upward pressure on bond yields, which in
turn could draw a policy response from the Reserve Bank of Australia (RBA).
FX REVIEW
Demand for the US currency as a safe haven ticked down as oil prices eased on
oversupply fears, stocks dithered in Asia and European bourses opened in negative
territory. The euro strengthened amodest 0.12 per cent to USD1.2870while a recent
fall in selling positions against the greenback provided room for possible further
drops. The rouble has weakened in recent days due to a fall in daily sales of foreign
currency by the FinanceMinistry and due to investors converting of rouble dividend
payouts into foreign currency. Other Asian currencies straddled narrow ranges as
a resurgence of coronavirus cases threatened a return of lockdown restrictions,
leaving investors fretting about the mounting economic costs of the pandemic.
All information provided is not intended as professional advice to users. This daily
commentary and opinion is subject to change without notice. For the latest information,
please call our Treasury Department on 226 8307.
Website: Email:
File photo shows heavy equipment at a site where sections of the Dakota Access pipeline were being buried
near the town of St Anthony in Morton County, North Dakota. PHOTO: AP
FARGO, NORTH DAKOTA (AP) - A federal judge on
Tuesday rejected a request for an emergency order
to delay the process of shutting down the Dakota
Access pipeline while attorneys appeal a ruling to
shutter the pipeline during the course of an environ-
mental review.
Pipeline attorneys —iled the motion — along with a
notice of appeal — lateMonday after United States (US)
District Judge James Boasberg ruled to stop the —lowof
oil by August 5. In denying the request for an expedited
ruling, Boasberg said he will schedule a status hearing
to discuss scheduling when he receives the Dakota
Access motion to keep the pipeline running.
Boasberg ordered the pipeline shuttered while
the US Army Corps of Engineers ful—ils his demand to
conduct a more extensive environmental review than
the one that allowed the pipeline to start moving
oil near the Standing Rock Indian Reservation three
years ago. Boasberg cited the “potential harm” that
the pipeline could cause before the Corps —inishes
its survey.
Dakota Access attorney William Scherman said in
his motion —iled on Monday that shutting down the
pipeline requires a number of time-consuming and
expensive steps that would take “well more” than
30 days.
Jan Hasselman, the EarthJustice attorney repre-
senting Standing Rock and other tribes who have
signed onto the lawsuit, said in a court —iling that
the proposed “rushed brie—ing schedule” wasn’t ap-
propriate because it would not have given attorneys
a chance to argue the motion in court.
The USD3.8 billion, 1,172-mile pipeline crosses be-
neath the Missouri River, just north of the reservation.
The tribe draws its water from the river and fears pol-
lution. Backers of the pipeline said it’s state-of-the-art
equipment that has function for three years without
any issues.
Judge rejects Dakota
Access request for
emergency order
URUMQI (XINHUA) - Northwest China’s Xinjiang Uygur
Autonomous Region transmitted 43.9 billion kWh of
electricity in the —irst half of 2020, up 53.9 per cent year
on year, according to the State Grid’s Xinjiang branch.
A total of 12.1 billion kWh of electricity among the
overall transmission volume was mainly generated by
wind and solar power, the State Grid Xinjiang Electric
Power Co Ltd said.
The company has stepped up regular maintenance
and robotic inspection of equipment and transmission
lines and conducted emergency drills to ensure the
safety of power transmission channels.
The electricity helped reduce 14 million tonnes of
coal use and cut emissions by 37.8 million tonnes of
carbon dioxide, 120,000 tonnes of sulphur dioxide
and 100,000 tonnes of nitrogen oxides, said Zhang
Jun with the Xinjiang Electricity Trading Center.
Xinjiang is rich in coal and wind power resources.
According to the Xinjiang Electricity Trading Center,
Xinjiang now transmits electricity to 19 other Chinese
Xinjiang’s electricity transmission increases
by 53.9pc in H1
regions, many of which purchase electricity fromXin-
jiang as a form of economic support to the region.
In 2019, Xinjiang transmitted over 71.2 billion kWh
of electricity to other regions, 1.4 times that of the
previous year.