Mrket wrap: Wall Street sank on Monday, with the Nasdaq losing almost 1% after the steepest decline in Chinese stocks in eight years increased concerns that cooling growth in the world's No. 2 economy could hurt China's trading partners. - Reuters
The DJIA fell 0.73% to end at 17,440.59 points. The S&P 500 lost 0.58% to end at 2,067.64. The Nasdaq dropped 0.96% to 5,039.78.
Forex summary
*The local currency rose 0.13% to 3.8150 per US$
*It increased 0.02% to 4.2310per euro
*Down 0.06% to 5.9340 to the pound sterling
*0.08% up to 2.7896 per Singapore dollar
*0.33% higher to 2.7746 per Aussie
*Up 0.05% to 3.0980 per 100 yen
Energy
Crude oil futures hit four-month lows on Monday after a steep drop in China's stock markets sparked concern about the economic health of the world's biggest energy consumer, while evidence of a growing crude glut mounted. Brent crude oil settled down US$1.15, or 2%, at US$53.47 a barrel. In post-settlement, it fell to as low as US$52.90, its lowest since mid-March. - Reuters
Top foreign news
Chinese regulator vows support after markets tumble 8.5% in a day: China said it was prepared to buy shares to stabilise the stock market and avert "systemic risks", after major indices plunged more than 8% in the biggest one-day fall since 2007. The securities regulator also said market authorities would deal severely with anyone engaged in the "malicious shorting of stocks", in Beijing's latest attempt to stave off a full-blown market crash. - Reuters
Teva to buy Allergan generic business for US$40.5bil: Israel’s Teva Pharmaceutical Industries will pay US$40.5bil in cash and stock for Allergan’s generic drugs business, solidifying Teva's position as the world's No. 1 maker of generics while freeing Allergan to focus on branded drugs, paying down debt and potential "transformational" acquisitions. The deal is the largest in Israel's corporate history. - Reuters
Greek creditors seek third wave of reforms before loan: International creditors want Greece to enact a third wave of politically sensitive reforms before they will release any money to keep the near bankrupt country afloat under a third bailout they began negotiating on Monday. - Reuters
Top local stories
Ringgit at 17-year low: The ringgit fell to 17-year lows yesterday as Chinese stocks slumped amid a drop in glob- al crude oil prices. The ringgit has fallen more than 8% versus the US dollar year-to-date and closed at 3.82. The ringgit’s decline yesterday mirrored that of regional currencies. - StarBiz
KLCI set to test key 1,700 level: BIMB Securities Research expects Bursa Malaysia to be in the red today following the dampened sentiment all over the world. It said the main factors were the major sell-off in China and continuous outflow of foreign investors. “We expect the index to test its critical support level at 1,700,” it said. - StarBiz
Petronas' Canada project poised to start in September: The construction of Petroliam Nasional Bhd’s (Petronas) multi-billion-ringgit liquefied natural gas (LNG) export terminal in Canada is expected to start this September. “We are awaiting the final environmental certificate. We are hoping it will come by this fall (September to December). All of the other prerequisites have been dealt with now,” said British Columbia Finance Minister Michael de Jong. - StarBiz
Melati Ehsan Q3 earnings sharply lower: Property and construction firm Melati Ehsan Holdings Bhd
’s earnings fell sharply to RM827,000 in the third quarter from the RM6.64mil a year ago due to higher operating expenses, lower revenue and some provisional cost recognised. Its revenue fell 57% to RM46.26mil while earnings per share were 0.69 sen compared with 5.55 sen before. - StarBiz
Dayang takeover becomes unconditional: Dayang Enterprise Holdings Bhd’s takeover offer for Perdana Petroleum Bhd has become unconditional, as it now owns a 51.21% stake in the latter. Dayang told Bursa Malaysia that it had received valid acceptances for 11.779 million shares or a 1.57% stake, increasing its shareholding in the oil and gas (O&G) services provider to 51.21% or 383.31 million shares. - StarBiz
Toll rate up for review next year: Toll rates for highways operated by PLUS Malaysia Bhd will be up for review next year. Sources say the rates maybe raised by 5% instead of 10%. But the final decision rests with Government. - StarBiz
Apex exec chairman wants to sell stake: Apex Equity Holdings Bhd executive chairman Chan Guan Seng, who is looking to dispose of his stake in the Kajang- based stockbroker, has yet to reach any agreement with any potential buyer of his stake. Apex Equity said Chan was looking for the right price. - StarBiz
AirAsia CEO: Resurfacing works affecting AAX ops: AirAsia X Bhd contends that the ongoing resurfacing works at the KL International Airport 2 (KLIA2) is affecting its operations, according to AirAsia Bhd chief executive officer Aireen Omar. She said moving back to the old Low-Cost Carrier Terminal until the matter is resolved seems like good option. - StarBiz
Consumer confidence down on GST: Malaysia's consumer confidence index, as measured by Nielsen, slipped to 89 points in the second quarter, down from 94 in the first quarter, following the introduction of the goods and services tax (GST). - StarBiz
Airlines to leverage on lower fuel prices: Lower fuel prices and capacity demand growth are forcing Asia-Pacific airline executives to change their strategy to take advantage of the new reality in the next 12 to 24 months, but still at the expense of yields. - StarBiz
Tariff rebate may hurt TNB net profit: Tenaga Nasional Bhd’s (TNB) core net profit for the third quarter is expected to fall by a-fifth compared with a year earlier partly due to tariff rebate and higher system losses, said Maybank IB Research. Higher usage of liquefied natural gas may also result in higher costs, an analyst said. - StarBiz
Ikhmas Jaya makes strong debut: Bore piling and bridge specialist Ikhmas Jaya Group Bhd staged a strong debut on Main Market of Bursa Malaysia amid weaker market sentiment. The counter opened at 68 sen, up 11 sen or a 19.29% premium to the offer price of 57 sen. It was the most actively traded stock yesterday. - StarBiz
Rezoning for Iskandar housing projects: Several waterfront development areas along the coastal line of Iskandar Malayisa will be designated as international zones for housing development projects. Mentri Besar Datuk Mohamed Khaled Nordin said the move would address fears among locals of foreigners snapping up properties in the economic growth region. - StarBiz
AGMs/EGMs
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