Market wrap: US stocks fell on Tuesday, ending a five-day winning streak, as investors focused on upcoming quarterly reports that are expected to reflect a dip in corporate earnings. - Reuters
The DJIA edged up 0.08% to end at 16,790.19 points, the S&P 500 lost 0.36% to 1,979.92 and the Nasdaq dropped 0.69% to finish the day at 4,748.36.
Forex summary
*The ringgit gained 0.74% to 4.3387 per US$
*It rose 0.21% to 4.8877 per euro
*Up 0.35% to 6.6076 to the pound sterling
*0.47% higher to 3.0504 per Singapore dollar
*0.16% higher to 3.1045 per Aussie
*Up 0.79% to 3.6068 per 100 yen
Energy
Oil prices jumped more than US$2 a barrel on Tuesday, breaking out of a month-long trading range on technical buying and industry talk as well as US government data suggesting the global supply glut could be ebbing. Brent settled up US$2.67, or 5.4%, at US$51.92, breaking out of the US$47 to US$50 band it had held since early September. - Reuters
Top foreign news
Volkswagen CEO says recall to start in January: Volkswagen chief executive Matthias Mueller said the company would launch a recall for cars affected by its diesel emissions crisis in January and complete the fix by the end of next year. Mueller told the Frankfurter Allgemeine Zeitung that he believed only a few employees were involved in the diesel emissions rigging that has hammered the company's stock and done severe damage to its reputation, refuting the notion that his detail-oriented predecessor Martin Winterkorn must have known about it. - Reuters
US trade deficit widens as exports sag, imports from China surge: US exports took a hit from an ailing global economy in August and imports from China surged, fuelling the largest expansion of America's trade deficit in five months. The trade deficit swelled by 15.6% to US$48.3 billion in August, according to Commerce Department data that is adjusted for seasonal factors. - Reuters
SABMiller rejects 'informal' offer from AB InBev as too low: Brewer SABMiller has rejected an "informal" takeover offer from Anheuser-Busch InBev of about US$100 billion as being too low, a media report said on Tuesday, pushing down its share price. The proposal made last week was worth slightly over 40 pounds per share, according to Bloomberg, which cited sources. SABMiller executives and some shareholders regarded a price closer to 45 pounds as representing fair value, it added. - Reuters
Samsung Elec third-quarter profit guidance beats estimates: Samsung Electronics Co Ltd said on Wednesday its July-September operating profit likely leapt 79.8% from a year earlier, beating expectations. Samsung, in a regulatory filing, estimated its third-quarter profit at 7.3 trillion won (US$6.29 billion), its first quarterly profit gain in two years and its biggest since the first quarter of 2014. This compared with a 6.7 trillion won profit tipped by a Thomson Reuters SmartEstimate poll of 30 analysts. - Reuters
Top local stories
Asean stands tall amid turmoil: A combination of sustained economic growth, young population and infrastructure spending estimated at US$7 trillion over the next 15 years makes Asean an attractive investment destination amid the turmoil in emerging markets. - StarBiz
RHB Cap may extend book closure of rights issue: RHB Capital Bhd (RHB Cap) may extend the book closure of its RM2.5bil rights issue beyond Nov 23 and the total num- ber of rights shares if more time is needed to comply with Bank Negara’s order to limit Aabar Investments PJS’ voting rights and stake in the banking group. - StarBiz
Petronas appoints Firouz VP of downstream oil business: Petroliam Nasional Bhd (Petronas) has appointed Mohamed Firouz Asnan as vice-president of oil business (down- stream) effective Sept 1. Petronas Dagangan Bhd
told Bursa Malaysia that the 49-year-old, who was previously chairman of Petronas Sabah and Labuan, had also been made non-executive director. It also announced the resignation of Mohd Farid Mohd Adnan, 53, as non-executive director due to “change of port- folio within the Petronas Group.” - StarBiz
MyEG faces RM307,200 fine: The Malaysia Competition Commission (MyCC) has proposed to impose a financial penalty of RM307,200 on My EG Services Bhd (MyEG) for infringing section 10 of the Competition Act 2010. MyCC said MyEG had abused its dominant position in the provision and management of the online Foreign Worker Permit Renewal applications, by applying different conditions to equivalent transactions with other trading parties to the extent that may harm competition. - StarBiz
Boost for YTL Power: News that YTL Power International Bhd could have secured a short-term contract to supply about 580MW of electricity may be a much-needed r-erating catalyst for the group. “There is talk that it has won the short-term contract but so far, nothing is official. It is ‘hanging’ in the air right now. But it will surely be a boost to the company’s stock,” an analyst said. - StarBiz
TPPA will bring benefits in long term: Initial consensus among the investor community is that it may be still too early to comment on the Trans-Pacific Partnership Agreement (TPPA), given that full details have so far been sparse. However, the community believes that on the surface, the TPPA will be a net positive for the economy in the longer run should Malaysia decide to ratify it. - StarBiz
AirAsia buying balance 60% in Tune Money: AirAsia Bhd is acquiring the remaining 60% interest in financial services provider Tune Money Sdn Bhd as well as its entire issued redeemable preference shares for RM6.36mil cash. - StarBiz
Maybank Kim Eng optimistic on Indonesia bond market: Maybank Kim Eng group chief executive officer John Chong said the lack of deep bond market, especially in Indonesia, paves the way for the banking group to potentially play a key role in getting large projects take off the ground. He said the capital markets, in particular the bond or sukuk market, were an effective alternative to the bank market to finance the pipeline of infrastructure projects in Indonesia. - StarBiz
Kimlun frontrunner for MRT2 jobs: Kimlun Corp Bhd is believed to be the frontrunner for mass rapid transit two (MRT 2) project awards which is expected to begin early next year, said Kenanga Research. The company is said to be poised to clinch MRT 2 segmental box girder and tunnel lining segment contracts, given its strong track record and expertise in the industrial building system. - StarBiz
AirAsia sounding out investors to take it private: Founders of Asia’s No. 1 budget carrier AirAsia Bhd are sounding out investors to take the company private in a management-led buyout, after its shares took a beating this year following a critical research report, sources said. AirAsia boss Tan Sri Tony Fernandes and his long-time business partner Datuk Kamarudin Meranun were working with banks to secure financing for the transaction, which could be launched over the next few months, said the people. - Reuters
Higher income programmes to boost SEGi’s FY15 Ebitda: Contributions from programmes that derive higher income are expected to improve higher education provider SEG International Bhd’s (SEGi) earnings before interest, taxes, depreciation and amortisation (Ebitda) for the financial year ending Dec 31, 2015 (FY15) by some 30% to 40%. - Edge FD
Aeon Credit’s Q2 net profit up 2.2%, pays 29.85 sen dividend: Aeon Credit Service (M) Bhd’s net profit rose 2.2% to RM48.49 million for the second quarter on higher financing receivables. Revenue grew 9.3% to RM228.72 million. Aeon Credit proposed an interim dividend of 29.85 sen for FY16 ending Feb 29, 2016, payable on Nov 4. - Edge FD
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