Market wrap: A rally on Wall Street evaporated on Tuesday and stocks ended with deep losses as concerns about China's economy outweighed lower valuations that some earlier saw as bargains. In a dramatic session, major indices turned negative in the final minutes of trading after previously climbing almost 3%. - Reuters
The DJIA fell 204.91 points, or 1.29%, to end at 15,666.44. The S&P 500 lost 25.59 points, or 1.35%, to finish at 1,867.62 and the Nasdaq dropped 19.76 points, or 0.44%, to 4,506.49.71.35.
Forex summary
*The ringgit lost 2.45% to 4.2990 per US$
*It fell 2.20% to 4.9565 per euro
*Down 1.84% to 6.7465 to the pound sterling
*1.69% down to 3.0532 per Singapore dollar
*1.09% lower to 3.0529 per Aussie
*Down 1.99% to 3.5996 per 100 yen
Energy
Oil rose as much as 3% on Tuesday as oversold conditions brought some buyers back to the market, but a lingering supply glut and worries about the slowing economy in top commodities consumer China kept crude prices near 6-1/2-year lows. Brent settled up 52 cents at US$43.21 a barrel, after hitting US$42.23 on Monday, its lowest since March 2009. - Reuters
Top foreign news
China cuts rates, reserve ratio: China's central bank cut interest rates and lowered the amount of reserves banks must hold for the second time in two months on Tuesday, ratcheting up support for a stuttering economy and a plunging stock market that has sent shockwaves around the globe. The People's Bank of China said it was cutting the one-year benchmark bank lending rate by 25 basis points to 4.6%, cutting one-year benchmark deposit rates by the same amount, and reducing reserve requirements by 50 basis points to 18% for most big banks. - Reuters
Consumer confidence, housing data signal economy's resilience: US consumer confidence hit a seven-month high in August and new single-family home sales rebounded in July, suggesting underlying strength in the economy that could still allow the Federal Reserve to raise interest rates this year. Other data on Tuesday showed moderate gains in house prices in June, which should support consumer spending and keep home purchasing affordable, especially for first-time buyers. - Reuters
PBoC official blames planned US interest rate rise for volatility: A researcher at China's central bank said expectations that the US Federal Reserve would raise interest rates next month was to blame for the recent global market volatility, the official Xinhua news agency reported on Tuesday. Yao Yudong, head of the financial research institution of the People's Bank of China, was quoted as saying the expected September US rate hike had been the "trigger" for the market swings. - Reuters
Services sector growth slows in August: The US services sector expanded at a slower pace in August than July as new business growth softened, an industry report showed on Tuesday. Financial firm Markit said its preliminary or "flash" reading of its Purchasing Managers Index for the services sector slipped to 55.2 in August from the final 55.7 reading in July, below the 56 level expected by economists in a Reuters survey. - Reuters
Top German court rejects Apple touchscreen patent appeal: Apple Inc patents covering the "slide to unlock" feature on smartphones are invalid, Germany's highest appeals court ruled on Tuesday, reaffirming a 2013 decision rejecting the US company's claims by a lower court. The ruling by the Federal Court of Appeals in Karlsruhe covers one of the Apple iPhone's most popular defining features, of which makers of rival Android-based phones have developed their own versions. - Reuters
Top local stories
Silverlake says accounts in order: Malaysian billionaire Goh Peng Ooi said the board of Silverlake Axis Ltd has deliberated over the issues raised in an anonymous blog and found no issue with the tech company’s accounts. He said Silverlake has engaged with the Singapore Stock Exchange to explain its side of the story and will hire a third-party consultant to go through the data again. - StarBiz
Special panel to ensure growth: A Special Economic Committee will be set up by the Government to ensure the country’s continued growth in light of global financial and economic uncertainties. Prime Minister Datuk Seri Najib Tun Razak, in acknowledging the economic challenges ahead, said the Government was determined to stave off the impact on the nation’s economy, which had remained strong over the past years. - Nation
TM: Small exposure to foreign currency loans: Telekom Malaysia Bhd
(TM) does not foresee the need for debt-restructuring with the rapid decline in the ringgit, as only a small chunk of its US-dollar debt is not hedged. For its second quarter to June 30, TM foreign-exchange losses amounted to RM14.5mil. Its earnings for the quarter fell a marginal 1% to RM212.07mil, while revenue came in 9.7% higher at RM2.84bil on higher contributions from voice and other telecommunications-related services revenue. Earnings per share was 5.69 sen from 5.97 sen a year ago. - StarBiz
CIMB Investment retains lead position: CIMB Investment Bank Bhd, which has underwritten a total of RM8.62bil ringgit-denominated bonds year-to-date, has retained its decade-long leading position with a 23.8% market share in Bloomberg’s Underwriter League Table. The investment banking arm of CIMB Group Holdings Bhd, the country’s second-largest lender by asset size, retained its leading position as the top local bond and equity, Asean bond and global sukuk arranger year-to-date. - StarBiz
Maybank to expand in Philippines: Malayan Banking Bhd group chief executive officer Datuk Abdul Farid Alias said the group sees opportunities to expand its business in the Philippines as the country’s biggest banking group seeks new growth areas closer to home. The bank had in May sold its operations in Papua New Guinea for RM418mil following a strategic review of its operations. - StarBiz
TSH posts RM26.4mil Q2 core operating profit: Sabah-based plantation company TSH Resources Bhd posted a lower core operating profit of RM26.4mil for the second quarter after adjusting for non-cash and unrealised foreign exchange translation gain or loss. The group reported a revenue of RM206mil compared with RM302mil a year earlier. - StarBiz
Construction industry still robust: The construction industry is still robust despite the lower ringgit as most of raw materials are available locally, said the Construction Industry Development Board (CIDB). However some construction players who need to import machinery or equipment, are feeling the pinch, said chief executive Datuk Seri Dr Judin Abdul Karim. - StarBiz
Kronologi Asia cancels EGM: Kronologi Asia Bhd has cancelled an EGM that was supposed to be held today. This is after the group’s executive chairman and group chief executive officer Piti Pramotedham decided not to go ahead with the meeting. - StarBiz
Hartalega sees little impact from strong US$: The weaker ringgit against the greenback has no big impact on Hartalega Holdings Bhd, its chairman Kuan Kam Hon said. He said the company would not benefit much from the recent ringgit weakness as it had hedged its forex exchange six months earlier. - StarBiz
FGV awaiting Bank Negara, MoF approvals: Felda Global Ventures Holdings Bhd (FGV) said it has not paid Rajawali Corp a US$174.5 million (RM741.63 million) refundable deposit, which is meant to serve as a down payment for its proposed US$680 million acquisition of a 37% stake in PT Eagle High Plantations Tbk. FGV chief executive officer Datuk Mohd Emir Mavani Abdullah confirmed that the deposit had not
been paid, as it was pending approval from the relevant authorities, namely Bank Negara and the Ministry of Finance (MoF). - digitaledge
Puncak Niaga’s 2Q earnings unchanged at RM59.54m: Puncak Niaga Holdings Bhd’s net profit slipped 0.6% year-on-year to RM59.54 million or 14.45 sen per share in the second quarter ended June 30, 2015, compared with RM59.9 million previously, on lower revenue from its oil and gas segment. Its revenue dropped 59.4% to RM65.45 million during the quarter. - digitaledge
Cliq Energy to move ahead with QA: Special-purpose acquisition company (SPAC) Cliq Energy Bhd will proceed with its acquisition of two oil fields in Kazakhstan, despite the ongoing rout of oil prices and the ringgit. Cliq Energy managing director and chief executive officer Ahmad Ziyad Elias believes that the current oil price is near to bottoming-out, thus now is “perfect timing” for the SPAC to embark on its acquisition. - digital edge
UMW Oil & Gas warns of low oil price impact on FY15 performance: UMW Oil & Gas Corp Bhd saw its net profit plunge 92.6% to RM4.46 million or 0.21 sen per share for the second quarter on lower contributions from both the drilling services and oilfield services segments. Revenue dropped 23.2% to RM183.37 million from RM238.78 million a year earlier. Overseas operations contributed 50.5% of the group’s revenue during the quarter. - digitaledge
Carlsberg revenue up 13%, pays five sen dividend for FY15: Carlsberg Brewery Malaysia Bhd saw its net profit dip 20.8% to RM31.71 million for the second quarter on impairment loss of the disposal of its 70% stake in Luen Heng F&B Sdn Bhd. Revenue, however, rose 13% to RM402.33 million from RM356.02 million a year earlier. The group also declared an interim dividend of five sen per share for the financial year ending Dec 31, 2015, payable on Oct 9. - digitaledge
AGMs/EGMs
Turiya Bhd (fka Sitt Tatt Bhd)
Time: 9.30am
Venue: Kelab Golf Perkhidmatan Awam, Bukit Kiara, Off Jalan Damansara, Kuala Lumpur
Tune Ins Holdings Bhd
Time: 10am
Venue: Sime Darby Convention Centre, 1A, Jalan Bukit Kiara 1, Kuala Lumpur
Limited time offer:
Just RM5 per month.
