Market wrap: Investors rattled about China sent US stock indices almost 4% lower on Monday in an unusually volatile session that confirmed the S&P 500 was formally in a correction, even after a dramatic rebound by Apple. The Dow Jones Industrial Average briefly slumped more than 1,000 points, its most dramatic intraday trading range ever. - Reuters
The DJIA closed down 588.4 points, or 3.57%, at 15,871.35.. The S&P 500 lost 77.68 points, or 3.94%, to 1,893.21 and the Nasdaq dropped 179.79 points, or 3.82%, to 4,526.25.
Forex summary
*The ringgit lost 0.58% to 4.2675 per US$
*It fell 1.30% to 4.9304 per euro
*Down 0.79% to 6.7215 to the pound sterling
*0.78% down to 3.0253 per Singapore dollar
*0.27% higher to 3.0647 per Aussie
*Up 0.03% to 3.5818 per 100 yen
Energy
Oil's weeks-long slump accelerated sharply on Monday with prices tumbling as much as 6% to fresh 6-1/2-year lows as a renewed dive in the Chinese equities market sent global financial markets into a tailspin. Brent October crude LCOc1 fell US$2.77, or 6.1%, to settle at US$42.69 a barrel.
Top foreign news
Market turmoil threatens Fed's rate-hike plans: Turmoil in world financial markets and growing fears of a China-led global economic slowdown threaten to derail the Federal Reserve's plans to soon start raising interest rates from near zero, dimming the chances of a September lift-off. Compared to last week, investors now see a much lower chance the Fed will hike at its Sept 16-17 meeting. Prices for swaps on Wall Street implied traders saw a 24% probability for a September move, down from 46% a week earlier, according to Tullett Prebon data. - Reuters
US inflation probably lower than reported: US inflation in the first half of the year was probably "markedly lower" than reported, but policymakers are unlikely to set interest rates incorrectly as a result, according to an analysis published Monday by the San Francisco Federal Reserve Bank. - Reuters
Monsanto sweetens offer for Syngenta: US-based Monsanto Co sweetened its offer to buy Switzerland's Syngenta AG, valuing the company at around US$47 billion as it tries to lure the Swiss firm to the negotiating table, a person familiar with the matter said on Monday. Monsanto raised its offer to 470 Swiss francs (US$501.98) per share from CHF 449 per share, the person said. - Reuters
Singapore July core inflation edges higher: Singapore’s core inflation edged higher in July, but growing uncertainty about the outlook for growth and prices was seen likely to keep open the possibility of further monetary easing. The Monetary Authority of Singapore’s core inflation gauge rose 0.4% in July from a year earlier, higher than the median forecast of a steady 0.2% year-on-year forecast in a Reuters survey. - Reuters
Top local stories
RM159bil paper losses: Investors Bursa Malaysia are poorer by more than RM159bil since July 15 due to the steep decline in the ringgit and commodity prices. This figure is based on the drop in the market capitalisa- tion of 919 counters traded on Bursa, which now has an esti- mated combined market capitalisation of RM1.49 trillion. - StarBiz
E&O plans to list UK property unit in London: Eastern & Oriental Bhd
(E&O), which reported a 22.6% rise in net profit to RM23.3mil for the first quarter, is planning to list its UK-based property unit on the Alternative Investment Market of the London Stock Exchange. The proposed public issue of E&O Plc is expected to raise minimum gross proceeds of £36mil (RM241.5mil). - StarBiz
I-Bhd’s Q2 net profit at RM8.5mil: I-Bhd’s net profit for its second quarter dropped 56% to RM8.52mil from RM19.41mil, while revenue fell to RM52.73mil from RM70.65mil a year earlier. In a filing with Bursa Malaysia, the master developer of i-City said the drop in earnings was due to the lower contribution from the property development segment. - StarBiz
IOI Corp earnings down on weaker earnings: Despite registering higher revenue of RM2.94bil, IOI Corp Bhd’s net profit fell 60.8% to RM159.7mil for the fourth quarter due mainly to lower contribution from its plantation segment, as well as a net foreign currency translation loss. Its earnings per share fell to 2.52 sen from 6.42 sen previously. - StarBiz
FGV net profit dives on falling palm oil prices: Felda Global Ventures Holdings Bhd (FGV) said net profit for the second quarter plunged 70% to RM46.09mil mainly due to lower earnings from palm-related segments. Revenue for the quarter came in at RM4.19bil versus RM3.87bil a year earlier. - StarBiz
Sime plans to strengthen balance sheet: Sime Darby Bhd said it was weighing options to strengthen its balance sheet after its acquisition of New Britain Palm Oil Ltd (NBPOL). “Sime Darby has been reviewing possible capital management options towards strengthening its balance sheet following the NBPOL acquisition and to prepare for any opportunities that may arise," a Sime spokesman said. - Reuters
Boustead posts lower second-quarter net profit: Boustead Holdings Bhd posted a net profit of RM2.9mil for the second quarter compared with RM34.6mil a year earlier on lower contribution from pharmaceutical, property and heavy industries divisions, while minority interests rose. Boustead’s revenue for the quarter fell 14.7% to RM2.21bil from RM2.59bil. It maintained a second interim dividend of five sen per share. - StarBiz
Houses in KL too expensive: While housing in some states in Malaysia are more affordable than others with a well-functioning median multiple of three times, Kuala Lumpur and Penang are “severely unaffordable”, Khazanah Research Institute said. - StarBiz
Johor draws RM27bil investments in first half: Johor remains the country’s top investment destination for the manufacturing sector and continues to attract strong interest from domestic and foreign investors. Mentri Besar Datuk Mohamed Khaled Nordin said in the first six months of the year, the state attracted RM27bil investments compared with RM15.7bil over the corresponding period a year earlier. - StarBiz
Genting Malaysia issues RM2.4bil notes: Genting Malaysia Bhd has issued RM2.4 billion debt notes to pay for operating expenses, capital expenditure and working capital, which include financing the development and/or re-development of its properties in Genting Highlands, Pahang. - digitaledge
PUC Founder and PW Consolidated team up: PUC Founder (MSC) Bhd has teamed up with PW Consolidated Bhd to build and op- erate an ecotype biogas electricity plant through a joint venture and/ or investment scheme. “This collaboration would bring the company one step closer to realise our goal as the biggest player in the renewable energy sector,” said PUC Founder group managing director Cheong Chia Chieh. - digitaledge
Events calendar
Markit Economics releases preliminary US Services Purchasing Managers Index (PMI) for August (1345 GMT)
?The Consumer Confidence released by the US Conference Board for August (1400 GMT)
AGMs/EGMs
Hartalega Holdings Bhd
Time: 9.30am
Venue: Sime Darby Convention Centre , banyan , Casuarina & Dillenia, KL
IJM Corporation Bhd
Time: 2.30pm
Venue: Holiday Villa Hotel & Suites Subang, Subang Jaya
Limited time offer:
Just RM5 per month.
