Financial fact and figure usually come from reliable sources, and that it doesn't contradict each other. Even if there is error, the margin is small.
However, when various newspapers and news agencies published 'north-south poles' stories about similar economic issue, we may wonder who their sources could be and what was the motive of doing so. We cannot simply lie on indexes and legitimate data.
National news agency Bernama published a report by Standard Chartered Bank (StanChart) that Malaysia, which had seen big outflows in equity previously, has attracted greater inflows in the past week.
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On the contrary, some news portals and tabloids said we are experience a tremendous and alarming capital outflow.
StanChart said a reversal in risk sentiment has led to inflows into Malaysia and across the region, the bank’s research house said in a statement Thursday.
The seven Asian markets’ equity flows tracked by the bank – Thailand, the Philippines, Malaysia, Indonesia, India, Taiwan and South Korea – have received US$2.3 billion of inflows since the payrolls report.
Foreign investors pulled US$27 billion out of these seven Asian equity markets between June and September – exceeding the US$22 billion of outflows seen during the taper tantrum period.
For Malaysia alone, exchange-reported figures showed that foreign investors have net sold US$6.3 billion worth of Malaysian equities since September 2014.
Meanwhile, India and South Korea, which were less vulnerable to outflows previously are seeing smaller relative inflows.
Asian foreign exchange returns remain highly correlated with equity flows, indicating that equity flows are a key driver of Asian currencies, according to the bank’s report.
Malaysia’s equity benchmark, the FTSE Bursa Malaysia KLCI which hovered around the 1,633.06 level on October 5 improved to 1,718.60 as of mid-afternoon yesterday.
However, read what Bloomberg say about capital outflow, equating Malaysia to Brazil. And please note the person they interviewed for comments:
While the ringgit has since recovered alongside emerging market currencies it’s still down about 15 percent this year, the worst performer in the Asia Pacific region. Approved foreign direct investment fell about 42 percent in the first half of 2015 to RM21.3 billion.
"The reforms are not taking place because Najib is preoccupied," said Saifuddin Abdullah, a former deputy minister in Najib’s government and ex-member of his United Malays National Organisation supreme council, who has now joined an opposition party. "It’s maintenance mode" for companies as they wait for an end to political uncertainty, he said.
However, when various newspapers and news agencies published 'north-south poles' stories about similar economic issue, we may wonder who their sources could be and what was the motive of doing so. We cannot simply lie on indexes and legitimate data.
National news agency Bernama published a report by Standard Chartered Bank (StanChart) that Malaysia, which had seen big outflows in equity previously, has attracted greater inflows in the past week.
On the contrary, some news portals and tabloids said we are experience a tremendous and alarming capital outflow.
StanChart said a reversal in risk sentiment has led to inflows into Malaysia and across the region, the bank’s research house said in a statement Thursday.
“The markets that saw the heaviest outflows earlier this year are now attracting the biggest inflows in the current relief rally,” it said.The bank said flows into Asian equities had turned positive after the weak September US payrolls report. “Inflows into Asian equities since the weak (September US payrolls) report have offered the first significant break from persistent outflows since June,” it said.
Standard Chartered’s special report titled “Equity flows – A break from the gloom” revealed that Malaysia, together with Indonesia and Taiwan, are attracting the biggest inflows relative to foreign exchange (FX) volume, after seeing the biggest relative outflows in the period since June 2015.
“Our exchange traded funds-based daily flow estimate for Malaysia suggests a strong reversal in flows during the week of October 5.
“Elsewhere in the region, Taiwan and India show a strong correlation between equity flows and foreign exchange returns, as one would expect in these equity-driven markets,” it said.
The seven Asian markets’ equity flows tracked by the bank – Thailand, the Philippines, Malaysia, Indonesia, India, Taiwan and South Korea – have received US$2.3 billion of inflows since the payrolls report.
Foreign investors pulled US$27 billion out of these seven Asian equity markets between June and September – exceeding the US$22 billion of outflows seen during the taper tantrum period.
For Malaysia alone, exchange-reported figures showed that foreign investors have net sold US$6.3 billion worth of Malaysian equities since September 2014.
Meanwhile, India and South Korea, which were less vulnerable to outflows previously are seeing smaller relative inflows.
Asian foreign exchange returns remain highly correlated with equity flows, indicating that equity flows are a key driver of Asian currencies, according to the bank’s report.
Malaysia’s equity benchmark, the FTSE Bursa Malaysia KLCI which hovered around the 1,633.06 level on October 5 improved to 1,718.60 as of mid-afternoon yesterday.
However, read what Bloomberg say about capital outflow, equating Malaysia to Brazil. And please note the person they interviewed for comments:
“Malaysia risks not just being left behind, but falling off the radar all together, especially with foreign investors,” said Jim Walker, managing director at Hong Kong-based Asianomics Ltd and former chief economist at CLSA Asia-Pacific Markets.Foreign investors are noticing. They pulled US$4.6 billion from stocks and bonds last quarter and sent the currency to a 17-year low.
“People are definitely shying away from Malaysia,” he said, and the politics of Malaysia is “by far the biggest threat”.
While the ringgit has since recovered alongside emerging market currencies it’s still down about 15 percent this year, the worst performer in the Asia Pacific region. Approved foreign direct investment fell about 42 percent in the first half of 2015 to RM21.3 billion.
"The reforms are not taking place because Najib is preoccupied," said Saifuddin Abdullah, a former deputy minister in Najib’s government and ex-member of his United Malays National Organisation supreme council, who has now joined an opposition party. "It’s maintenance mode" for companies as they wait for an end to political uncertainty, he said.