Market wrap: US stocks ended sharply higher on Wednesday after a volatile session as the Federal Reserve gave a vote of confidence in the US economy by signalling a December interest rate hike was still on the table. S&P financials, which benefit from higher borrowing rates, shot up following the Fed statement and led sector gains. - Reuters
The DJIA rose 198.09 points, or 1.13%, to 17,779.52, the S&P 500 gained 24.46 points, or 1.18%, to 2,090.35, and the Nasdaq added 65.55 points, or 1.3%, to 5,095.69.
Forex summary
*The ringgit lost 0.69% to 4.3000 per US$
*It is up 0.43% to 4.6979 per euro
*Down 0.51% to 6.5668 to the pound sterling
*0.25% down to 3.0657 per Singapore dollar
*0.34% lower to 3.0543 per Aussie
*Down 1.03% to 3.5631 per 100 yen
Energy
US crude oil prices rose more than 6% on Wednesday as the government reported an inventory build that reversed bearish market expectations, putting the market on a volatile course after three straight days of losses. Brent LCOc1, the global benchmark for oil, closed up US$2.24 at US$49.05. - Reuters
Top foreign stories
Fed puts December rate hike firmly on the agenda: The US Federal Reserve kept interest rates unchanged on Wednesday and in a direct reference to its next policy meeting put a December rate hike firmly in play. Investors had expected the Fed to remain pat on rates, but the overt reference to December came as a surprise. - Reuters
Icahn takes stake in AIG, calls for breakup: Billionaire investor Carl Icahn on Wednesday urged American International Group Inc to break itself apart, targeting a US$78 billion insurer in one of the largest activist campaigns this year. AIG shares jumped almost 5% in heavy trading after the release of the proposal, which Icahn said was supported by hedge fund manager John Paulson. - Reuters
US third-quarter GDP forecasts raised after trade data: US third-quarter economic growth could surprise on the upside after government data on Wednesday showed the goods trade deficit narrowed sharply to a seven-month low in September. Economists had expected gross domestic product to expand at an annual rate of 1.6% last quarter, according to a Reuters poll. Many, however, raised their forecasts after the Commerce Department reported that the goods trade deficit fell to US$58.6 billion from US$67.2 billion in August. - Reuters
Texas Instruments in talks to buy Maxim Integrated: Texas Instruments Inc is in talks to buy Maxim Integrated Products Inc, Bloomberg reported, as chipmakers seek deals to cut costs and expand offerings. Maxim has also received interest from Analog Devices Inc and may not be willing to sell unless it gets a very high premium, Bloomberg said, citing people with knowledge of the matter. - Reuters
Top local stories
MRCB announces three major deals: Malaysian Resources Corp Bhd (MRCB) has announced three major deals in one day, beginning with a RM1.63bil privatisation deal to refurbish and upgrade the Bukit Jalil National Sports Complex. The company also said its property outfit MRCB Land has signed a 60:40 joint venture deal with Cyberview Sdn Bhd to develop Cyberjaya City Centre. MRCB said it had subscribed for a 70% stake in CSB Development, a JV between MRCB Land and Cyberview, for RM269.5mil to develop CCC. MRCB also announced it had signed a management contract with Kwasa Utama Sdn Bhd for the development of Kwasa Utama. MRCB’s provisional total contract sum for this development is about RM3.1bil. - StarBiz
SC to unveil P2P lending framework next year: The Securities Commission (SC) will introduce a framework for peer-to- peer (P2P) lending next year. This is in line with the growing interest in the development of this area. - StarBiz
Axiata Indonesia unit plans sukuk issue: Axiata Group Bhd
’s Indonesian unit PT XL Axiata Tbk plans to establish a five trillion rupiah (RM1.4bil) sukuk programme to optimise its balance sheet and improve its capital efficiency. Axiata said the sukuk programme would be established under a two-year shelf registration programme. - Bernama
IJN founder named chairman of cardiac and vascular centre: Tan Sri Dr Yahya Awang, a founder and the former head and medical director of the National Heart Institute (IJN), has been appointed chairman and founding partner of a cardiac and vascular centre to be opened in Kuala Lumpur Sentral CBD. - StarBiz
Maxis chalks up higher Q3 profit: Maxis Bhd’s profit after tax rose 3.5% to RM509mil in the third quarter ended Sept 30, 2015, from RM492mil in the preceding quarter underpinned by solid prepaid growth and stable postpaid core. Maxis declared a third interim dividend of five sen per share for the quarter. - StarBiz
E&O awards reclamation works to China firm: Eastern & Oriental Bhd (E&O) has awarded a contract to China Communications Construction Co Ltd to undertake land reclamation works for Seri Tanjung Pinang Phase 2 in Penang. - StarBiz
Success Transformer will not sell SEB stake: Success Transformer Corp Bhd has no intention to dispose of its 65% stake in Seremban Engineering Bhd (SEB). It said the company had in fact injected additional resources including financial and management support to SEB despite the losses recorded in financial year ended Dec 31, 2014 and first half of year 2015 due to the cost overruns suffered in the project of Sabah Ammonia and Urea Plant in Sipitang, Sabah. - StarBiz
TM in tie-up with Cambodia’s MekongNet: Telekom Malaysia Bhd (TM) is strengthening its regional footprint in South-East Asia by teaming up with MekongNet, a leading Internet service provider and Internet exchange provider in Cambodia. TM said that through the partnership, MekongNet would host and provide network infrastructure for TM’s multi-services node or point-of-presence in Cambodia. - StarBiz
NCB turns around: NCB Holdings Bhd, which is currently subject to a takeover by MMC Corp Bhd, has returned to the black in its third quarter ended Sept 30, posting a net profit of RM10.89mil versus a net loss of RM2.3mil a year earlier. NCB’s revenue in the third quarter rose to RM218.4mil, up 9.47% from RM199.51mil. - StarBiz
MISC signs RM2bil shipbuilding contracts: MISC Bhd has signed ship- building contracts worth a total of US$500mil (RM2.132bil) for the construction of vessels with two South Korean companies. - StarBiz
Sabah-based KTC to list: Sabah-based consumer package goods manufacturer and distributor Kim Teck Cheong Consolidated Bhd (KTC) plans to raise RM21.3mil from its initial public offering (IPO) on the ACE Market of Bursa Malaysia at the end of next month. - StarBiz
Ranhill seeks to raise up to RM600m via RTO of Symphony: Ranhill Holdings Sdn Bhd is seeking to raise up to RM600 million through a public issue of up to 375 million new shares under its reverse takeover (RTO) of Symphony House Bhd. The RTO would pave the way for the back-door listing of the group on the Main Market of Bursa Malaysia, following its failed initial public offering attempt in July 2013 on disclosure transgression issues. - Edge FD
Asia Poly in talks to acquire frozen food firm: Asia Poly Holdings Bhd, which recently ventured into the e-commence business, is in talks with a local frozen and ready-to-eat food manufacturer about a possible acquisition. Asia Poly’s newly appointed executive chairman Datuk Yeo Boon Leong said the group is keen to acquire a 30% stake in the food company to expand its business portfolio instead of only relying on its existing acrylic cast sheet business. - Edge FD
PIDM: Malaysian banks’ deposit growth moderating: Malaysia’s total deposit growth has slowed to 5% year to date, from the usual 7% to 8% due to the higher cost of living, according to Perbadanan Insurans Deposit Malaysia (PIDM). - Edge FD
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