Market wrap: US stocks ended stronger after a volatile session on Wednesday, led by a rebound in biotechnology companies that pushed the S&P 500 to its highest level in three weeks. - Reuters
The DJIA rose 0.73% to end at 16,912.29, the S&P 500 ended 0.8% higher 1,995.83 and the Nasdaq added 0.9% to 4,791.15.
Forex summary
*The ringgit gained 0.59% to 4.1927 per US$
*It rose 0.63% to 4.7117 per euro
*Up 0.48% to 6.4214 to the pound sterling
*0.21% higher to 2.9748 per Singapore dollar
*0.35% higher to 3.0242 per Aussie
*Up 0.57% to 3.4942 per 100 yen
Energy
Oil fell in volatile trading on Wednesday, snapping a three-day rally, after US government data showing a large crude inventory build surprised traders the day after an industry group had reported a draw. The US Energy Information Administration said domestic crude inventories rose 3.1 million barrels last week, more than the 2.2 million-barrel build forecast by analysts in a Reuters survey. Brent crude settled down 59 cents, or 1.1%, at US$51.33 a barrel. - Reuters
Top foreign stories
Deutsche Bank flags US$6.7bil loss on writedowns: Deutsche Bank is bracing for a record pre-tax loss of 6 billion euros (US$6.7 billion) in the third quarter, as new boss John Cryan is drawing a line under his predecessor's performance. Germany's flagship lender is taking massive writedowns at its investment banking unit and on two assets earmarked for disposal, its Postbank retail bank and the stake it owns in China's Hua Xia Bank. It is also setting aside more money for litigation, Deutsche Bank said. - Reuters
SABMiller rejects AB InBev's US$104bil takeover bid: SABMiller, the world's second largest brewer, has promptly rejected an improved takeover proposal from Anheuser-Busch InBev, saying its 68 billion-pound (US$104 billion) valuation was "very substantially" under par. - Reuters
Dell, data storage company EMC in merger talks: Dell Inc, the world's third-largest maker of personal computers and rival EMC Corp, are in talks about some combination of their businesses, a source told Reuters. It was unclear whether the companies were discussing a full or partial takeover of EMC, according to the Wall Street Journal, which first reported on the talks. - Reuters
Acelity expects to raise US$1bil in IPO: Medical technology company Acelity Holdings Inc expects to raise up to US$1 billion in its IPO, according to a filing with the US Securities and Exchange Commission. The company, which develops regenerative medicine and sells healthcare products in 75 countries, filed for an initial public offering in August. - Reuters
Top local stories
Ringgit gains most versus US$ in 17 years: The ringgit record- ed its biggest one-day gain in 17 years against the US dollar after a slew of economic data helped push the battered currency on an upward trajectory against the greenback. The ringgit leaped 3.7% against the greenback yesterday to RM4.216 from RM4.371 on Tuesday after trade data for August showed that the weak ringgit had helped fatten an increasingly squeezed trade surplus that has been whittled away by poor commodity prices. - StarBiz
Malaysia's forex reserves down US$2bil in September: Bank Negara’s international reserves fell US$2bil in the last two weeks of September to US$93.3bil. “The decline in reserves level in US dollar terms as at Sept 30 was mainly due to the quarterly adjustment for foreign exchange revaluation changes,” the central bank said in a statement. - StarBiz
Heineken takes over GAB: Heineken NV is now the major shareholder of Guinness Anchor Bhd (GAB) after the Dutch brewer took over GAB’s holding company. GAB said Heineken now owned a 100% stake in GAPL Pte Ltd, which, in turn, holds a 51% interest in GAB. This followed Heineken’s acquisition of the remaining stake owned by Diageo plc in GAPL. - StarBiz
Short-term extension for two IPPs: The Government has awarded a short-term extension to a few independent power producers (IPPs) through a competitive bidding process, said Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili. The two are YTL Power International Bhd
and Malakoff Corp Bhd and the contract has been renewed for about three years, said Ongkili. - StarBiz
General insurance sector in for tough times: The general insurance industry is bracing for a tougher year ahead on subdued motor premium outlook, as economic worries dampened consumer demand for new cars. The prospect for higher car prices next year may also curb new purchases. - StarBiz
AirAsia unaware of plans to take it private: AirAsia Bhd says it has no knowledge of any intention to take the company private. The low-cost carrier’s statement yesterday was issued in response to wire and media reports saying a day earlier that AirAsia would be taken private in a management-led buyout. - StarBiz
Petronas set to end Mauritanian ops: The collapse in the oil price has prompted Petroliam Nasional Bhd (Petronas) to end its operations in Mauritania in the North African coast. According to The North Africa Post, Petronas has started pulling back and is about to end its operation in Mauritania due to a sharp fall in revenue caused by the acute collapse of the oil price. - StarBiz
KNM unit wins RM581mil UK job: KNM Group Bhd unit KNM Process Systems Sdn Bhd has been awarded a contract for the engineering, procurement, construction and commissioning of a waste-to-energy facility at Beddington Lane, Croydon, United Kingdom, from Drenl Ltd. The value of the contract is £88mil (about RM581mil). - StarBiz
E&E demand boosts exports: Malaysia’s exports climbed 4.1% to RM66.5bil in August, as strong demand for electrical and electronic (E&E) products offset the drop in commodity prices. Imports declined 6.1%, boosting the country’s trade surplus in August to RM10.2bil – its highest level in almost a year. - StarBiz
DRB-Hicom unit plans new plant: CTRM Aero Composites Sdn Bhd, the aerospace arm of DRB-Hicom Bhd, is planning to open a new plant next year to meet growing demand from plane makers. The company has allocated RM300mil for its 2014- 2018 capacity expansion programme. - StarBiz
Bursa Malaysia wins best Islamic exchange 2015 award: Bursa Malaysia Bhd has been adjudged Best Islamic Exchange 2015 at the Global Islamic Finance Awards 2015 for its Bursa Suq Al-Sila’ trading platform performance. Chief executive officer Datuk Tajuddin Atan said the award was presented in recognition of double-digit growth in trades on the platform since its inception in 2009. - Bernama
Khazanah, Petronas mostly exempted from TPP rules: Khazanah Nasional Bhd and Petroleum Nasional Bhd (Petronas) will be largely exempted from Trans-Pacific Partnership (TPP) regulations as Malaysia is ready to allow some exceptions, International Trade and Industry Minister Mustapa Mohamed said. It is not immediately clear how Khazanah and Petronas will be exempted, or what exceptions may be made, with discussions to be held with company boards in coming days. - Reuters
BAuto is not raising Mazda car prices - for now: Berjaya Auto Bhd (BAuto) is not raising the selling prices of Mazda cars here anytime soon, despite surging production costs and a volatile foreign exchange. But it won’t discount the need to do so if the ringgit breaches the 3.8 level for every 100 yen, BAuto chief executive officer Datuk Seri Ben Yeoh Choon San said: - Edge FD
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