MarketWrap: Wall Street dropped for a fourth straight session on Tuesday as central bank policymakers weighed the health of the US economy and investors worried about an upcoming vote in Britain on whether to leave the European Union. Investors launched a late-day rally but the major indices still ended with losses. - Reuters
The DJIA fell 0.33% to end at 17,674.82 points, the S&P 500 lost 0.18% to 2,075.32 and the Nasdaq declined 0.1% to 4,843.55.
Forex summary
*The ringgit lost 0.01% to 4.1075 per US$
*It was 0.16% higher to 4.6073 per euro
*Up 0.06% to 5.8029 to the pound sterling
*0.05% lower to 3.0308 per Singapore dollar
*0.13% lower to 3.0201 per Aussie
*Down 0.11% to 3.8749 per 100 yen
Energy
Oil prices fell for a fourth straight day on Tuesday, dropping 1% as nervousness over Britain's vote next week on whether to leave the European Union overshadowed signs of a return to health for crude after a two-year glut. Brent crude oil futures LCOc1 closed 52 cents lower at US$49.83 a barrel. - Reuters
Top foreign stories
CEO pay in 2015 tamed by bond yields, Fed expectations: Chief executives of the biggest US corporations saw their pay rise in 2015 at the slowest rate in seven years. At 0.1%, the median pay rise in 2015 for the CEOs of more than 300 of the S&P 500 companies was the smallest since the financial crisis and a sharp decline from the 12.9% hike of 2014, data from ICS show. - Reuters
Wide deal spreads make juicy targets for some investors: Shares of a number of US companies eyed in high-profile deals are trading significantly below their intended acquisition prices on worries that the deals will die, presenting an opportunity for some big-name investors. The deal spreads span 10, 20 or 30% in some cases, against long-term averages in the low single digits. - Reuters
Top local stories
Proton open to all options: Proton Holdings Bhd is prepared for any kind of strategic alliance with potential partners, including allowing them to have control over the manufacturer of the national car. In giving itself a year to find the partner, Proton has described the task as crucial for its turnaround. Proton said it had been approached by a number of manufacturers for a tie-up. - StarBiz
FGV aborts deal on biodegradable plastics: Felda Global Ventures Holdings Bhd (FGV) said it has terminated the memoranda of understanding it signed with US-based Newlight Technologies LLC and Innogas Technologies Sdn Bhd to produce biodegradable plastics from palm oil biomass waste in Malaysia after failing to reach agreement. - StarBiz
Three factors weighing on stock markets: The direction of US interest rates, the Brexit referendum and concerns over China’s debt problems continue to weigh on global stock markets. While Britain’s June 23 referendum on whether to stay or leave the European Union will take centre stage this week, markets will also be attuned to news flow from the June 14-15 US Federal Reserve meeting. - StarBiz
Penang govt halts feasibility study on underground tunnel: The Penang government has halted to the feasibility study on the proposed 7.2km undersea tunnel linking Penang to Butterworth.
Consortium Zenith BUCG Sdn Bhd chairman Datuk Zarul Ahmad Mohd Zulkifli the state government didn’t give any explanation for its decision. - StarBiz
TPPA seen to have little effect on trade flows: The Trans-Pacific Partnership Agreement (TPPA) is expected to have muted effects on Malaysia’s trade flows, given the already low tariffs that exist between the country and many of the signatories of the new trade deal, says RAM Rating Services Bhd. - StarBiz
Azlan appointed chairman of RHB Cap: RHB Capital Bhd (RHB Cap) has appointed RHB Bank chairman Tan Sri Azlan Zainol as its chairman effective June 14. He replaces Datuk Mohamed Khaidar Merican who retired on May 12. - StarBiz
I-Bhd in talks over land for next project: Property developer I-Bhd is in talks with a few parties over a land deal for the group’s next phase of development, which include urban projects and townships. - StarBiz
Ipic goes for arbitration over 1MDB debt: Abu Dhabi’s International Petroleum Investment Company (Ipic) and Aabar Investments PJS have submitted a request for arbitration (RFA) to the London Court of International Arbitration, said 1Malaysia Development Bhd. 1MDB said it and its legal counsel would review the RFA once it had been served with a copy. - Bernama
King Power to buy remaining stake in AAV: King Power Group, owned by one of Thailand’s richest men Vichai Srivaddhanaprabha, will spend another 12 billion baht (RM1.4bil) in a mandatory offer to acquire the remaining 60% stake in Asia Aviation (AAV). King Power said it bought a 39% stake in AAV, the operator of Thai AirAsia, for 7.945 billion baht from Tassapon Bijleveld and his family. - Bernama
Oil & gas market rally fizzles out: The recent surge in oil and gas (O&G) counters is fizzling out as new data indicate the industry’s fundamentals still have some way to go before it catches up with the recovery in sentiment recently, say analysts. - StarBiz
RHB Bank demands RM118.16m debt repayment from MP Corp: RHB Bank Bhd is demanding a repayment of RM118.16 million from Malaysia Pacific Corp Bhd (MP Corp), failing which winding-up proceedings may be initiated against the company. - Edge FD
MWE and IJM Corp raise stakes in Kumpulan Europlus: MWE Holdings Bhd and IJM Corp Bhd have increased their shareholdings in Kumpulan Europlus to 25.59% and 26.15%, respectively. Edge FD
‘Property tax hike in Sydney won’t a ect M’sian developers’: The expected higher taxes for foreign buyers of residential properties in the Australian state of New South Wales (NSW) are not expected to have much effect on Malaysian developers there, say analysts. NSW Treasurer Gladys Berejiklian was reported on Tuesday as saying foreign buyers will have to pay a 4% stamp duty surcharge from next week and an extra 0.75% land tax from January 2017. - Edge FD
Malaysia’s 2016 FDI inflow seen ‘stable’: The inflows of foreign direct investments (FDIs) into Malaysia for the remainder of the year should remain stable and average near RM7.7 billion per quarter that has been seen since 2008, despite the grim outlook for global economic conditions this year, analysts say. - Edge FD
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