Market wrap: The S&P 500 tumbled to a more than six-month low on Thursday, closing in negative territory for the year, on concern a decelerating Chinese economy will translate into slower global growth. Consumer stocks led the decline on Wall Street with Disney down 6% after a brokerage downgrade, while Apple fell 2% after a report that overall smartphone sales in China fell in the second quarter. - Reuters
The DJIA fell 358.04 points, or 2.06%, to 16,990.69, the S&P 500 lost 43.88 points, or 2.11%, to 2,035.73 and the Nasdaq dropped 141.56 points, or 2.82%, to 4,877.49.
Forex summary
*The ringgit fell 0.10% to 4.1318 per US$
*It fell 1.01% to 4.6448 per euro
*Down 0.51% to 6.4837 to the pound sterling
*0.22% down to 2.9434 per Singapore dollar
*0.80% lower to 3.0321 per Aussie
*Down 0.11% to 3.3484 per 100 yen
Energy
US crude oil prices fell to almost US$40 a barrel on Thursday, their lowest since the global financial crisis of 2009, as supplies rose in North America and the Middle East, filling stockpiles to record levels. Brent crude futures, the global oil benchmark, were down 75 cents at US$46.41 a barrel, still some way off their 2015 low of US$45.19 traded in January. - Reuters
Top foreign news
HP revenue falls on weak PC sales, lower demand for services: Hewlett-Packard Co reported a drop in revenue for the fourth straight quarter, hurt by weak PC sales and lower demand from corporates for its services. Chief executive Meg Whitman said the factors pressuring the PC market were expected to continue through the fourth quarter and well into the next fiscal year. - Reuters
Greek PM Tsipras resigns: Prime Minister Alexis Tsipras resigned on Thursday, hoping to strengthen his hold on power in snap elections after seven months in office in which he fought Greece's creditors for a better bailout deal but had to cave in. Tsipras submitted his resignation to President Prokopis Pavlopoulos and asked for the earliest possible election date. - Reuters
Home sales near eight-and-a-half-year high: US home resales rose to a near 8-1/2-year high in July and factory activity in the mid-Atlantic region picked up this month, fresh signs of steady economic growth that likely keeps the Federal Reserve on track to raise interest rates this year. While other data on Thursday showed a slight increase in the number of Americans filing new applications for unemployment benefits last week, the trend remained consistent with strong labour market momentum. - Reuters
Chinese province's debt crisis exposes economic fault line: A mini debt crisis in northern China is exposing cracks in a financial pillar of the country's economic revival plan: the US$430 billion loan-guarantee industry. China has a heavy corporate debt burden and its economy is slowing, putting borrowers under strain, but many lenders take comfort from the fact that their loans are insured against default through the nation's almost 8,000 guarantee companies. A third of these are state-backed companies that stand behind more than 60 percent of China's guaranteed loans. - Reuters
Top local stories
Quek sells China asset: Malaysian billionaire Tan Sri Quek Leng Chan, who is known for his savvy investment moves, is selling a property development project in Beijing – held under Singapore-listed GuocoLand Ltd – to a state-owned distressed asset management company in China for 10.5 billion yuan (RM6.79bil). GuocoLand announced that its unit, GuocoLand (China) Ltd, had entered into an agreement with China Cinda Asset Management Co Ltd’s Beijing branch Office for the disposal of all the equity, contractual and loan interests of GuocoLand group in or relating to the integrated mixed- used development. - StarBiz
AirAsia posts lower profit: AirAsia registered a profit attributable to shareholders of RM243mil in the second quarter, down 33.8% from a year ago. This was achieved on a marginally higher revenue of 1% to RM1.32bil, backed by a 7% passenger growth to 5.95 million with 80% load factor. - StarBiz
3 TRX parcels under negotiations: The development of the Tun Razak Exchange (TRX) is on schedule, with negotiations under way with investors for three more parcels, according to 1MDB Real Estate Sdn Bhd (1MDB RE). On-site progress is the near-completion of RM163mil worth of infrastructure works with pre-qualification exercise for the second package under way, having started late last year. - StarBiz
YTL Corp expects Paka contract to be extended: YTL Corp Bhd
, which reported a 15% drop in net profit to RM298.9mil in the last quarter ended June 30 due to slower property sales and lower contributions from its utility business, expects to win a contract extension for its power plant in Paka, Terengganu. The existing power purchase agreement for the Paka power station will expire on Sept 30. - StarBiz
Record profit for Dialog: Dialog Group Bhd posted a 22% jump in net profit to RM63.6mil for the fourth quarter, lifting its full-year earnings to a record RM275.1mil. The company said it will continue “to deliver a healthy performance” for FY16. Dialog said its strong performance during the fourth quarter was underpinned by the Pengerang Deepwater Terminal project. - StarBiz
Axiata to restructure Indonesia unit’s loan: Mobile operator Axiata Group Bhd, which reported a 34% jump in net profit to RM610.7mil in its second quarter ended June 30, is planning to restructure a US$590mil loan taken by its Indonesian unit into local currency-denominated partial sukuk. The move, its chief financial officer Chari TVT sai, would help the group manage its foreign exchange (forex) exposure, as the volatility in the currency market rises. - StarBiz
AMMB eyes 5% loan growth: AMMB Holdings Bhd is making an aggressive push into the housing loan market, as the country’s fifth-largest banking group seeks to speed up lending growth. AMMB is projecting a loan growth of 4% to 5% for the financial year ending March 31, 2016 (FY16), faster than the 3% expansion it had reported in FY15. Loan growth at AMMB slowed last year because of a sluggish hire purchase market. - StarBiz
WCT Q2 profit falls 9%: WCT Holdings Bhd’s net profit for its second quarter ended June 30 dropped 9% to RM31.06mil, mainly due to lower contributions from overseas projects and its property development segment. Revenue during the quarter, meanwhile, increased to RM422.31mil. - StarBiz
Govt urged to address investors’ concerns: CIMB Group Holdings Bhd chairman Datuk Seri Nazir Razak said one of the biggest issues affecting the ringgit was investor sentiment and their concerns about the political situation in the country. “There seems to be some indication that sentiment is playing a part in terms of where some of these prices are. This is, of course, a concern,” he told the media on the sidelines of the South-East Asia Summit 2015. - StarBiz
SP Setia to launch RM350mil residential project in Penang: SP Setia Bhd will soon launch its latest project, a 9-acre freehold residential development in Penang with a gross development value (GDV) of RM350mil. The property developer, formerly a construction company, has 150 acres of undeveloped land in Penang. - StarBiz
US Fed rate hike positive for Malaysia: An interest rate hike by the US Federal Reserve augurs well for Malaysia’s economy, according to Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz. “A rate increase in the US ... is positive for us because they are the major market for our exports and therefore, it will be positive for the Malaysian economy,” she told reporters on the sideline of the launch of the Global Findex 2014 Measuring Financial Inclusion around the world. - StarBiz
Mustapa: TPP and RCEP are equally important: Malaysia gives equal emphasis to two trade pacts – Trans-Pacific Partnership (TPP) and Regional Comprehensive Economic Partnership (RCEP) – as both are important for Malaysia to be involved in, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said. - StarBiz
Petronas takes over MLNG Dua from Shell: Petroliam Nasional Bhd (Petronas) has fully taken over Malaysia LNG Dua Sdn Bhd (MLNG Dua) from Sarawak Shell Bhd (Shell), which had a 50% stake in the firm. Petronas said the handover of Shell’s stake was offici- ated in a ceremony yesterday, and thus its unit Petronas Carigali Sdn Bhd (PCSB) now owns a 90% stake in MLNG Dua, while the remaining 10% is held by PCSB’s subsidiary, E&P Malaysian Ventures Sdn Bhd (EPMV). Consequently, PCSB and EPMV are now the operators of MLNG Dua. - digitaledge
S&P: Ringgit decline won’t rattle major M’sian firms: The weakening ringgit by itself will have limited impact on the cash flow adequacy and operating performance of Petroliam Nasional Bhd (Petronas), Tenaga Nasional Bhd, Sime Darby Bhd and Genting Bhd, Standard & Poor’s Ratings Services (S&P) said in a report, citing sound liquidity and their generally conservative financial policies. The four are part of the eight companies that the agency rates in Malaysia, which also include IOI Corp Bhd, Axiata Group Bhd, Telekom Malaysia Bhd and MISC Bhd. - digitaledge
AGMs/EGMs
United Malacca Bhd
Time: 11am
Venue: United Malacca Berhad Building , Jalan Melaka Raya 8, Taman Melaka Raya
IJM Plantations Bhd
Time: 3pm
Venue: Holiday Villa Hotel & Suites Subang, Subang Jaya
Limited time offer:
Just RM5 per month.
