Market wrap: World stock indexes fell on Monday as a Federal Reserve official's comments added to investor concerns the bank may start raising interest rates in September, while oil prices jumped more than 8%t, extending their biggest price surge in 25 years. - Reuters
The DJIA fell 114.98 points, or 0.69%, to 16,528.03, the S&P 500 lost 16.69 points, or 0.84%, to 1,972.18 and the Nasdaq dropped 51.82 points, or 1.07%, to 4,776.51.
Forex summary
*Ringgit gained 0.12% to 4.1875 per US$
*It fell 0.13% to 4.7035 per euro
*Up 0.49% to 6.4353 to the pound sterling
*0.03% down to 2.9684 per Singapore dollar
*0.47% higher to 2.9771 per Aussie
*Down 0.16% to 3.4638 per 100 yen
Energy
Oil futures soared on Monday for a third consecutive day, rising more than 8%, as a downward revision of US crude production data and Opec's readiness to talk with other producers helped extend the biggest three-day price surge in 25 years. Brent LCOc1 October futures rose US$4.10, or 8.2%, to settle at US$54.15 a barrel, with volumes relatively muted by a British public holiday. - Reuters
Top foreign news
US preparing China sanctions: The United States is drawing up economic sanctions to target Chinese firms and individuals that profit- ed from cyber attacks on American targets, the Washington Post reported. The report, citing administration officials, said President Barack Obama’s government has not yet decided whether to put the sanctions in place but is now preparing the ground. - AFP
Slowing growth exposes Chinese banks: China’s economic slowdown is exposing the debt debris in its banking sector. Dodgy credits on the balance sheets of the country’s four biggest lenders jumped by 28% to 592 billion yuan (RM388.54 billion) in the first half of the year. Further deterioration would send earnings growth into reverse. - Reuters
Nerves on edge as Chinese authorities probe market mayhem: The head of hedge fund manager Man Group Plc's China business has been taken into custody to help authorities in a probe into recent market volatility, Bloomberg reported on Monday, while separately a local financial reporter confessed on national TV to having spread false information that caused "panic and disorder". Both are likely to jangle nerves in the financial industry as regulators try to find out who they think was behind China's wild stock market rollercoaster ride in the past three months. - Reuters
China state media announce confessions in stock market investigations: Chinese state media announced a slew of confessions on Monday following investigations into dramatic stock market fluctuations, including from a reporter who said he had spread false information that had caused "panic and disorder". An official from China's securities regulator, and four senior executives from China's largest brokerage, CITIC Securities, confessed to insider dealing, the official Xinhua news agency reported. - Reuters
Top local stories
MoF Inc courts Destini
: The Government, through the Minister of Finance Inc (MoF Inc), is believed to have acquired a substantial stake in defence services provider and contractor Destini Bhd, a move that would raise the profile of the company. Sources said the transaction was undertaken by an entity linked to MoF Inc and that it would emerge as a strategic shareholder in the company. - StarBiz
Mixed fortunes for packaging material ops: Plastic packaging material manufacturers, especially those with a reach in export markets, are looking at a better performance this year due to the weakened plastic resin prices, new customers in the Asia-Pacific region and the weakened ringgit. The main boost for producers comes from plunging polyethylene resin prices, which are down by about 25%, compared with about four months ago in April. - StarBiz
NCB’s gateway business gives it an edge: NCB Holdings Bhd unit Northport (M) Bhd is crucial in enhancing the port business of MMC Corp Bhd should it decide to list the division. This could be the main reason why MMC has been increasing its interest in NCB and prepared to pay a premium price for the port operator since December last year. - StarBiz
Paramount puts new projects on back burner: Paramount Corp Bhd has put its greenfield property projects on the back burner amid weak market conditions, its group chief executive officer Jeffrey Chew Sun Teong said, but it will continue to roll out new phases of existing projects. The property developer will defer the launch of its new projects in Section 13 (Petaling Jaya), Batu Kawan (Penang) and Jalan Goh Hock Huat in Klang (Selangor). - digitaledge
Manufacturers turn to property to reverse fortunes: Faced with shrinking margins and market share in an increasingly competitive environment, more and more listed manufacturers are shifting their focus to the property development business to reverse their fortunes. This year alone, three manufacturing companies — Amalgamated Industrial Steel Bhd, Takaso Re- sources Bhd and Khind Holdings Bhd — have forayed into property development despite a softer market. - digitaledge
Green Packet amends results, net loss in Q1: Green Packet Bhd said the high-speed Internet specialist made a net loss of RM24.38 million in the three months ended June 30, 2015, instead of a net profit as previously reported. Last Thursday, Green Packet told the exchange that it registered a net profit of RM24.38 million. The next day (Aug 28), a Green Packet spokesperson said it was an “internal error” made by the firm. - digitaledge
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