Market wrap: US stocks fell on Tuesday, with the S&P 500 trading in its tightest daily range in nearly a month, weighed down by earnings-related selling in Wal-Mart and a drop in commodity stocks on concerns about China's economy. - Reuters
The DJIA fell 33.84 points, or 0.19%, to 17,511.34, the S&P 500 lost 5.52 points, or 0.26%, to 2,096.92 and the Nasdaq dropped 32.35 points, or 0.64%, to 5,059.35.
Forex summary
*The ringgit rose 0.11% to 4.0775 per US$
*It increased 0.4% to 4.5009 per euro
*Up 0.16% to 6.3874 to the pound sterling
*0.02% down to 2.9069 per Singapore dollar
*0.15% higher to 2.9944 per Aussie
*Up 0.07% to 3.2789 per 100 yen
Energy
Oil prices settled up on Tuesday, with US crude rallying as much as 2 percent, after bullish economic data and bets for lower crude stockpiles in the United States, the world's largest oil consumer. Brent crude settled up 7 cents at UA$48.81, snapping a three-day decline. - Reuters
Top foreign news
Atlanta Fed: US economy on track to grow 1.3% in third quarter: The US economy is on track to grow at an annualised rate of 1.3% in the third quarter following news of a stronger-than-expected 0.6% rise in industrial output in July, the Atlanta Federal Reserve's GDPNow forecast model showed on Tuesday. This was stronger than the regional Fed bank's prior estimate on Aug 13 of a 0.7%t rise in gross domestic product, the Atlanta Fed said on its website. - Reuters
Wal-Mart's pharmacy business drags on profit: Wal-Mart Stores Inc said on Tuesday that lower margins in its pharmacy business had emerged as a drag on profits, as it gets paid less by drug plan managers and as fewer customers pay in cash, since Obamacare has increased the ranks of insured Americans. The company warned that the margin squeeze would continue for at least the remainder of the year. - Reuters
Google launches Wi-Fi router for home use: Google Inc launched a Wi-Fi router on Tuesday, the latest move in the company's efforts to get ready for the connected home and draw more users to its services. The cylinder-shaped router, named OnHub, comes with in-built antennas that will scan the airwaves to spot the fastest connection, Google said in a blog post. - Reuters
Top local stories
Spike in govt bond yield: Spike in govt bond yield: A weaker ringgit coupled with external headwinds have caused yields for Malaysian Government Securities (MGS) to climb to as much as 50 basis points since July. In over a month, the yield for 10-year MGS also saw a similar pattern, rising over 40bp from 3.9% to 4.31% – the highest since January 2010. - StarBiz
Canadian pension fund invests in JV with Pavilion Group: The largest pension fund manager in Canada will invest RM485mil for a 49% interest in its joint venture (JV) with Pavilion Group to develop Pavilion Damansara Heights – a mixed-used property in Kuala Lumpur. This is Canada Pension Plan Investment Board’s (CPPIB) first direct real estate investment in the region. - Starbiz
Day of reckoning for AirAsia: All eyes are on low-cost carrier AirAsia Bhd’s upcoming second-quarter earnings – expected to be released today. Separately, AirAsia foresees US$160mil (RM652mil) in cost savings next year from weakening crude oil prices as the group’s hedging tenure ends this year.
More downside for Bursa: The local market ended the day higher – only its second time in nine straight days. Although the market closed seven points up to 1,579, supported by key heavyweights such as Malayan Banking Bhd
, technical indicators point to more downside in the weeks to come. - StarBiz
Star continues to show growth: Star Media Group Bhd's profit attributable to shareholders increased 7.5% to RM59.84mil in its first half on a marginal decline in revenue to RM483.75mil compared with registered growth. The company declared an interim dividend of nine sen. - StarBiz
MAA sees higher vehicle sales in August: Vehicle sales in Malaysia rose 2.1% to 58,646 units in July this year from June, driven by the Hari Raya festive season campaigns and aggressive sales promotions by industry players. The Malaysian Automotive Association (MAA) said it expected the uptrend in vehicles sales to “be slightly better” in August due to the ongoing promotional campaigns by car companies and the longer woriing month. - StarBis
AFGB puts aside more money for potential loan losses: Alliance Financial Group Bhd (AFGB) increased the amount it set aside for potential loan losses during the first quarter ended June 30, resulting in a 6.8% drop in net profit to RM121.9mil compared with a year ago. However, net interest margin, a key measure of a bank’s performance, improved to 2.16%. - StarBiz
Wah Seong wins RM189mil sub-contract: Wah Seong Corp Bhd has clinched an RM189mil job for the supply and delivery of coated steel pipe piles for the Pengerang Deepwater Petroleum Terminal project in Johor. The sub-contract was awarded to its subsidiaries, PPI Industries Sdn Bhd and Petro-Pipe (Sabah) Sdn Bhd, by Penta-Ocean Construction Co Ltd, it said in a filing with Bursa Malaysia yesterday. - StarBiz
Tata Group ups stake in AirAsia India to 41%: After months of speculation, India’s Tata Group has upped its stake in AirAsia (India) Pvt Ltd (AirAsia India) to 41% from 30%, after acquiring 11% from fellow Indian shareholder Arun Bhatia of Telestra Tradeplace Pvt Ltd, whose stake has shrunk correspondingly to 10% from 21%. - digitaledge
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