Market wrap: US stocks climbed on Monday, giving the S&P 500 its biggest increase since May as indexes rebounded sharply from last week's losses, buoyed by gains in commodity-related shares and optimism over Warren Buffett's latest deal. - Reuters
The DJIA rose 241.79 points, or 1.39%, to 17,615.17, the S&P 500 gained 26.61 points, or 1.28%, to 2,104.18 and the Nasdaq added 58.25 points, or 1.16%, to 5,101.80.
Forex summary
*The local currency rose 0.20% to 3.9285 per US$
*It fell 0.35% to 4.3311 per euro
*Down 0.53% to 6.1228 to the pound sterling
*0.23% down to 2.8444 per Singapore dollar
*0.50% lower to 2.9145 per Aussie
*Up 0.22% to 3.1515 per 100 yen
Energy
Oil jumped almost 4% on Monday after a rally in US gasoline and diesel due to a refinery outage helped crude futures advance from multi-month lows. Brent, the global benchmark for oil, rose 3.7%, posting its largest gain since end-May. - Reuters
Top foreign news
Google morphs into Alphabet Inc: Google Inc announced a major shake-up of its operating structure on Monday, creating a holding company called Alphabet which will contain subsidiaries to separate its core web advertising business from newer ventures like driverless cars. The move appeared to be an attempt to let the search engine giant focus on its more creative and ambitious projects, while investors cheered the potential for more financial disclosures of its disparate business segments. - Reuters
Buffett pays high price for Precision Castparts: Warren Buffett is paying a hefty price for the biggest bet of his career as his Berkshire Hathaway Inc has agreed to buy Precision Castparts Corp, valuing the maker of aerospace and other parts at UA$32.3 billion. The purchase is Berkshire's largest, and accelerates its transformation from a company largely dependent on insurance businesses into one resembling the broader US economy, including a railroad, several industrial companies, utilities, a car dealership and consumer goods businesses. - Reuters
Greece, lenders locked in marathon talks for bailout deal: Greece and its international lenders were locked in marathon overnight talks to seal a multibillion-euro bailout deal on Tuesday, racing against a countdown to European Central Bank debt repayments falling due in days. The indebted country is hoping to wrap up a deal for 86 billion euros (US$94.75 billion) in fresh loans by Tuesday so it can get parliamentary and other approvals for aid to flow by Aug 20, when a 3.2 billion euro debt payment is due to the ECB. - Reuters
US inflation temporarily 'very low,' says Fed's Fischer: US inflation is only temporarily "very low" due in part to commodity prices, while the US economy has nearly achieved full employment, Federal Reserve vice-chairman Stanley Fischer said on Monday. "A large part of the current inflation is temporary. It has to do with the decline in the price of oil; it has to do with the decline in the price of raw materials," he said on Bloomberg TV. - Reuters
Top local stories
Affin buying TRX land: Affin Holdings Bhd
’s banking unit, Affin Bank Bhd, will buy 1.25 acres in the Tun Razak Exchange (TRX) from 1Malaysia Development Bhd (1MDB) to build its new headquar- ters. The price it will pay KLIFD Sdn Bhd, a subsidiary of 1MDB Real Estate Sdn Bhd (1MDB RE), is RM255mil. This works out to about RM4,699 per sq ft (psf) for the land. 1MDB RE is the master developer of TRX and a wholly owned subsidiary of 1MDB. Affin said it has been in discussions since 2012 to buy the land. - StarBiz
MAHB COO resigns, concerns mount over repair costs: Malaysia Airports Holdings Bhd (MAHB) said its top financial executive is leaving on Aug 17, even as the stock slumped to a two-and-a-half- year low amid concerns over costly repairs at the newly opened KLIA2. MAHB chief financial officer Faizal Sham Abu Mansor Faizal’s resignation came as MAHB struggles with rising market pressure over potentially huge repair costs at KLIA2, as well as worries over financial claims from its biggest customer – AirAsia Bhd. - StarBiz
Market in correction mode: The ringgit seems to be finding some resistance at breaching the 3.93 mark against the US dollar. However, it brings little respite to the stock market as poor sentiments pushed Bursa Malaysia lower – the third consecutive day of decline. At the close yesterday, the local bourse’s benchmark FTSE Bursa Malaysia KL Composite Index shed close to 30 points to 1,654.37. In the last three days, the key barometer for the local stock exchange has shed 71.19 points. - StarBiz
MPHB Cap aborts Mimaland redevelopment: MPHB Capital Bhd (MPHB Cap) has aborted a joint venture with Magna Senandung Sdn Bhd to develop Mimaland Bhd’s 122ha land in Gombak, Selangor.
MPHB Cap owns 98% of Mimaland. MPHB Cap said the decision to terminate the deal was mutual. - StarBiz
AirAsia Indonesia to meet equity rule: AirAsia Bhd’s Indonesian unit is confident it can meet a rule set by the country to increase its equity portion to keep its operating licence. “We are in the process of converting our debt (group level) to equity. It should be no problem,” co-founder and group CEO Tan Sri Tony Fernandes said. - SraeBiz
Bison offers for sale 81 million shares in IPO: Newsstand and convenience store operator Bison Consolidated Bhd is offering 80.6 million shares for its initial public offering (IPO) on the Main Market of Bursa Malaysia. Of the total, 62.31 million shares are for institutional investors and 18.3 million shares are for retail subscription. - StarBiz
Scomi Energy bags RM140mil marine services jobs: Scomi Energy Services Bhd's marine services unit has secured contracts worth more than RM140mil in the last four months from within the region. The contracts are for the transportation of coal and provision of offshore vessel services to clients in Indonesia, Malaysia and Thailand. - StarBiz
Factory output up 4.3% in June: Malaysia’s industrial output expanded in June, supported by stronger manufacturing and mining, with the industrial production index (IPI) up 4.3% from a year ago. However, this was slightly below a survey of a 4.4% growth. The Statistics Department said the June expansion was supported by a 4.9% growth in manufacturing and a 4% expansion in mining. But the electricity index decreased by 2.3%. - StarBiz
Matrix Concepts reports 30% drop in earnings: Property developer Matrix Concepts Holdings Bhd reported a 29.7% drop in earnings to RM29.85mil in the second quarter. Revenue dropped 26.4% from RM164mil last year to RM120mil during the quarter, due to lower revenue from the sales of industrial properties. - StarBiz
Ringgit, politics affecting retail sector: The weakening ringgit and unabating political issues in the country are affecting consumer sentiment and negatively impacting the local retail sector. The weak ringgit is affecting the cost of goods due to higher import cost, according to Retail Group Malaysia (RGM) managing director Tan Hai Hsin. - StarBiz
Salcon links up with KSSB for possible O&G job: Salcon Bhd announced that Kunci Sempurna Sdn Bhd (KSSB) will be acquiring a 51% stake in its subsidiary, Salcon Petroleum Services Sdn Bhd, which will allow the two companies to collaborate in oil and gas (O&G) and likely pave the way for Salcon’s venture into the O&G sector. - digitaledge
1MDB undertaking due diligence for asset sale: 1Malaysia Development Bhd (1MDB) said it is undertaking due diligence of shortlisted local and international parties in relation to the sale of its in- vestment in Edra Global Energy Bhd. In a statement yesterday, 1MDB said it had also received expressions of interest from 40 local and international parties to be development partners for its 486-acre (196.677ha) Bandar Malaysia project, which are now in a detailed due diligence process. - digitaledge
Malaysia’s July palm oil stocks rise to 2.27mil tonnes: Malaysian palm oil stocks rose to 2.27 million tonnes in July due to higher production and a slowdown in demand after Ramadan, figures from an industry regulator showed yesterday. Malaysian palm oil futures ticked lower on the data. The benchmark palm price dipped 0.3% to RM2,036 a tonne, not far from a near one-year low of RM2,006 touched last week due to slowing imports by top consumers China and India. - Reuters
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