Energy
Brent crude was up 0.37% to US$54.82 per barrel at 2.25pm
Forex
The ringgit was down 0.16% to 3.8160 versus the US dollar at 2.49pm. The local currency had earlier eased 0.1% to 3.8140 per dollar, a 17-year low, as weak commodity prices added to concerns over Malaysia's sluggish exports.
Top foreign news
China eyes new cruise link to disputed South China Sea islands: Chinese authorities plan to start a second cruise ship link to the disputed Paracel Islands in the South China Sea, state media reported yesterday, in a move that may irk Vietnam, which also claims the islets. China began cruises on the Coconut Princess on a trial basis from the southern island province of Hainan in 2013. Officials hope a second ship will be in operation before the end of the year, and that more islands can be opened up for visits, the report said. - Reuters
Moody’s poll cites asset bubbles as top credit risk for Asian banks: The unwinding of asset bubbles is the top macroeconomic threat to Asian banks in the coming 12 months, followed by a growth slowdown in China, says Moody's Investors Service. Moody's vice-president and senior credit officer Eugene Tarzimanov said yesterday asset bubbles - particularly in real estate - were an important but manageable source of credit risk for the banks in 2015 and 2016. In its recent investor poll on Asian banks, it said property prices have appreciated particularly rapidly in Hong Kong (Aa1 stable), India (Baa3 positive), Malaysia (A3 positive) and Singapore (Aaa stable) since the 2008-09 global financial crisis. - StarBiz
China June industrial profits fall 0.3%: Profit at China's industrial firms dropped 0.3% in June from a year earlier, the National Bureau of Statistics said, reversing a 0.6% rise in May and adding to pressures on a economy that is struggling to regain momentum. For the first six months of 2015, industrial profits were down 0.7% from a year earlier. - Reuters
Fiat Chrysler faces record US$105mil fine: The US auto safety watchdog, toughening its stance against manufacturer defects, announced on Sunday a record US$105mil in fines against Fiat Chrysler Automobiles NV over lapses in safety recalls involving millions of vehicles. - Reuters
Indonesia Q2 FDI up, Axiata biggest investor in June: Indonesia's foreign direct investment (FDI) grew at the fastest pace since 2013 on yearly basis in the second quarter - a bright spot in an otherwise weak economic outlook. Malaysia was the biggest source of investment in the June quarter, expanding the network of telecommunications operator PT XL Axiata Tbk into 4G. The company is a subsidiary of Axiata Group Bhd
. - Reuters
Top local stories
Borneo Oil gets nod for rights issue: Bursa Malaysia has approved Borneo Oil Bhd’s rights issue with free warrants, enabling it to raise RM223.39mil to expand its gold mining in Peninsular Malaysia. The company will issue 2.37 billion shares on the basis of six shares for every one share held and 1.18 bilionl free warrants C on the basis of one warrant C for every two rights shares held. - StarBiz
AirAsia to recapitalise Indonesia affiliate to meet equity rule: AirAsia Bhd CEO Tan Sri Tony Fernandes said yesterday the company will recapitalise its Indonesian affiliate so that the unit can meet a rule set by the country's transport ministry. AirAsia Indonesia has submitted a plan to boost shareholders' equity ahead of a month-end deadline, Fernandes said. - Reuters
Destini Aviation to handle maintenance of AirAsia planes: Destini Bhd unit will handle the maintenance, repair and overhaul of AirAsia Bhd’s aircraft under a proposed strategic outsourcing exercise. Destini said Destini Aviation Sdn Bhd had signed a collaboration agreement with AirAsia to lay the groundwork for the final negotiations and implementation plan to execute the strategic outsourcing exercise. - StarBiz
Ikhmas Jaya confident of double-digit growth: Newly listed construction outfit Ikhmas Jaya Group Bhd is confident of achieving double digit growth in net profit for its current financial year ending Dec 31, 2015. Group managing director Datuk Ang Cheng Siong said the projection is based on existing projects it has currently, as well as potential jobs it is planning to secure. - StarBiz
Dayang owns more than 51% of Perdana Petroleum: Dayang Enterprise Bhd’s takeover offer for Perdana Petroleum Bhd has become unconditional as it now owns a 51.21% stake in the latter. It said it had received valid acceptances of the offer for 11.779 million shares or 1.57% stake, increasing its shareholding in the oil and gas services provider to 51.21% or 383.31 million shares. - StarBiz
Long-term permanent solution needed for KLIA2: The continued issues with the tarmac on the KLIA2 needs a permanent solution, said Airasia Bhd's group CEO Tan Sri Tony Fernandes. "We feel that we should have never moved in the first place. And I was right on these issues. I hope we can stop repeating these mistakes," he said. - StarBiz
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