Market wrap: US stocks ended slightly higher on Thursday as investors, on edge after recent turmoil in China's markets, looked toward a key US jobs report that may figure in the Federal Reserve's decision about when to lift interest rates. - Reuters
The DJIA rose 0.14% to 16,374.76 and the S&P 500 gained 0.12% to 1,951.13 points. The Nasdaq ended 0.35% lower at 4,733.50.
Forex summary
*The ringgit lost 0.28% to 4.2605 per US$
*It rose 0.85% to 4.7350 per euro
*Down 0.19% to 6.4933 to the pound sterling
*0.17% down to 3.0049 per Singapore dollar
*0.05% higher to 2.9813 per Aussie
*Down 0.42% to 3.5533 per 100 yen
Energy
Oil prices inched higher on Thursday in see-saw trade, tracking gains in Wall Street equities for a second straight day despite a weekly build in US crude inventories that weighed on the outlook for oil. Brent's front-month contract, settled up 18 cents at US$50.68 a barrel. At one point during the session it had risen above US$52. - Reuters
Top foreign news
Shrinking US trade gap shows economy's underlying strength: The US trade deficit fell in July to its lowest level in five months as exports rose broadly, signalling underlying strength in the economy amid concerns about a global growth slowdown. The Commerce Department said the trade gap narrowed 7.4% to US$41.9 billion, the smallest since February. When adjusted for inflation, the deficit fell to US$56.2 billion from US$59.0 billion in the prior month. - Reuters
US sanctions against Chinese firms could be next week: The United States is preparing to sanction Chinese companies connected to the cyber theft of US intellectual property as early as next week, the Financial Times reported on Thursday. The FT cited three US officials as saying the sanctions probably would come next week in advance of Chinese President Xi Jinping's visit later in the month. - Reuters
Foreign investors navigate turmoil in Chinese markets with new playbook: Foreign investment funds are moving at breakneck speed to retool their strategies in an attempt to profit from Chinese stock markets whipsawed by panic, paranoia and unprecedented government intervention. The implosion in Chinese equity prices after a domestic, debt-fueled buying binge has triggered a range of responses from foreign investors. Those who remain bullish on China's long-run economic prospects have switched more of their focus to the Hong Kong market because valuations are lower, it is better regulated, and less prone to the whims of officials in Beijing than the mainland markets in Shanghai and Shenzhen. - Reuters
Top local stories:
SapKen refinances debt: SapuraKencana Petroleum Bhd (SapKen) will issue debt papers next week, starting with a US$200mil (RM845.8mil) Islamic medium-term note programme, as part of a move to refinance a US$2.3bil facility that comes due next February. The oil and gas company said its subsidiary, SapuraKencana TMC Sdn Bhd, has signed the transaction documents for its inaugural multi-currency Islamic notes that would be launched on Tuesday. - StarBiz
Muhibbah wins RM950mil Pengerang job: Muhibbah Engineering (M) Bhd and its consortium partner, India’s Va Tech Wabag Ltd have clinched a RM949.6mil effluent treatment plant contract for the Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang, Johor. - StarBiz
11 funds approved for Asean scheme: Eleven Malaysian, Singaporean and Thai funds have been approved by the respective regulators as qualifying Asean Collective Investment Schemes under the respective frameworks. The funds, once approved by the “host” regulators, would enable their offering in the said countries without having to go through stringent or duplication of processes. Of the 11 funds, five are from Malaysia and Singapore each, while the remainder is from Thailand. - StarBiz
CEO: AirAsia India to be profitable next year: AirAsia India, which posted a net loss of 44.15 crore rupees (RM28mil) will be profitable from December, AirAsia Bhd group chief executive officer Tan Sri Tony Fernandes said. “When you start an airline, your are not gonna make money in the first year, so we have predicted to make losses,” he said. AirAsia India registered a revenue of 115 crore rupees (RM73.02mil) for the three months to June 30. - Bernama
Fund-raising to slow down this year: The Securities Commission expects fund-raising activities in the bond and stock markets to slow down to RM75bil in 2015, down from an average of RM90bil a year seen the past few years. Weak market conditions had forced some companies to put off their fund-raising plans. - StarBiz
Uda to redevelop retail complex in Bangsar: Uda Holdings Bhd’s redevelopment of Kompleks Niaga Utama in Bangsar into a fully furnished serviced apartment, is set to take off soon. The national property development agency said the project, with as a gross development value of RM250mil and slated for completion in 2019, would expand Uda’s portfolio as one of the country’s leading sustainable property development and asset management organisations. - StarBiz
HeveaBoard aims for net cash position: Heveaboard Bhd
is looking to become net cash by year-end as it reduces its term loans down to a mere US$9mil and gearing down to 0.1%. “We have no intention of making any further major borrowings for now unless we find something that would help the company grow. For now, we are focusing on moving to high margin, higher quality products rather than a business expansion by way of volume,” its group managing director Yoong Hau Chun said at a press and analysts briefing on Thursday. - StarBiz
Taiwan bourse keen to explore link with Malaysia: Taiwan's stock exchange is open to exploring setting up a stock-trading link with Malaysia if the the latter was interested, a Taiwan bourse official said. “We are open,” Lori Liu, vice president of the Taiwan Stock Exchange's trading department, said. “We can recommend to our regulator and Bursa Malaysia if they are interested.” - Reuters.
RHB Cap embarks on career transition scheme: RHB Capital Bhd (RHB Cap) has embarked on a career transition scheme, which will be voluntarily in nature. RHB Banking Group said there was no definitive target on the number of staff that it will be releasing under the scheme. - StarBiz
Malaysian investor said to take over Indonesian national car project: After two years of being in the dark, the country’s national car project, Selo, may finally see the light of day now that a Malaysian investor has taken over the project. The project’s developer Ricky Elson said in Facebook posting that a Malaysian investor was interested in financing the car’s next prototype. The deal, he said, was a follow-up from a meeting with the investor eight months before. - Jakarta Post/digitaledge
Azran says not involved in AAX’s fictitious payments to service provider: Former AirAsia X Bhd (AAX) chief executive officer Azran Osman-Rani has clarified that he was not involved in the fictitious RM7 million payments made to a service provider, which happened during his tenure as CEO of the long-haul low-cost carrier. Azran, who is currently CEO of iflix Malaysia, pointed out that AAX’s external auditor Pricewa- terhouseCoopers did not report any irregularities in the airline’s financials when he was heading the company between 2010 and 2014. - digitaledge
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