Tony Fernandes, group chief executive officer of AirAsia Bhd., left, shakes hands with Fabrice Bregier, chief executive officer of Airbus Group SE, during a media briefing on the second day of the Farnborough International Airshow 2016 in Farnborough, U.K., on Tuesday, July 12, 2016. The air show, a biannual showcase for the aviation industry, runs until July 17. - Bloomberg
MarketWrap: The benchmark US S&P 500 stock index set record closing and intraday highs for the second straight day on Tuesday and the Dow Jones industrial average reached record highs for the first time in over a year as optimism about the world economy and upbeat corporate results from Alcoa boosted risk appetite. - Reuters
The DJIA closed up 120.74 points, or 0.66%, at 18,347.67, the S&P 500 ended up 14.98 points, or 0.7%, at 2,152.14 and the Nasdaq closed up 34.18 points, or 0.69%, at 5,022.82.
Forex summary
*The ringgit was flat at 3.9805 per US$
*It was 0.53% higher at 4.3993 per euro
*Down 0.87% to 5.2795 to the pound sterling
*Flat at 2.9530 per Singapore dollar
*0.25% higher to 3.0294 per Aussie
*Down 0.07% to 3.8051 per 100 yen
Energy
Crude futures fell on Wednesday as investors took gains after oil prices surged nearly 5% in the previous session, partly on the back of a forecast increase in demand next year. Brent futures fell 51 cents to US$47.96 a barrel after settling up US$2.22, or 4.8%. - Reuters
Top foreign stories
Big money to be made if stocks fail to stay near current highs: Jeffrey Gundlach, chief executive officer of DoubleLine Capital, said on Tuesday that there is "big money" to be made on the "short side" if equities fail to stay near current highs. “A minor new high in the S&P might be rejected, which is what happened with U.S. Treasuries.” said Gundlach, who oversees more than US$100 billion. - Reuters
Germany pressures incoming British PM to quickly start divorce from EU: German leaders stepped up the pressure on Britain's incoming prime minister Theresa May on Tuesday by demanding she swiftly spell out when she will launch divorce proceedings with the European Union. - Reuters
Top local stories
UK property buys intact: Malaysian government funds’ investments in UK properties are still “in the money” despite the sharp depreciation in the pound sterling and the decline in the property market. An industry expert opined the funds could consider divesting some of those assets, considering that most of the investments were made five years ago when the exchange rate was still favourable. - StarBiz
Berjaya Assets
to buy over Sarawak numbers forecast firm: Berjaya Assets Bhd will gain full control of Sarawak-based numbers forecast operator Natural Avenue Sdn Bhd, a firm it jointly owns with tycoon Tan Sri Yap Yong Seong, or popularly known as Duta Yap, in a RM108mil deal. - StarBiz
Quek’s son takes on bigger role: Quek Kon Sean, the youngest son of tycoon Tan Sri Quek Leng Chan, could be taking on a bigger role in the Hong Leong group’s property ventures, sources say.
“Quek is said to be making a big foray into real estate and Kon Sean could be the one heading the venture,” said an industry source. - StarBiz
AllianceDBS cuts GDP growth forecast on weak external environment: AllianceDBS Research expects Malaysia’s 2016 gross domestic product (GDP) to grow 4.1%, versus an earlier forecast of a 4.5% growth, owing to the weak external economic environment which could lead to subdued exports and investment growth prospects. - StarBiz
May factory output growth slows to 2.7%: Malaysia’s factory output, as measured by the industrial production index (IPI), grew 2.7% in May from year earlier on growth in the manufacturing and electricity indices. That compares with analysts’ expectations for a 2.5% expansion. - StarBiz
SapKen to gain from Berantai RSC cessation: The cessation of Berantai risk service contract (RSC) is seen as a positive as SapuraKencana Petroleum Bhd (SapKen) will receive a full lump sum payment upfront in financial year 2018, estimated at RM1.6bil or 27 sen per share, says Maybank Research. - StarBiz
Ireka, Aeon call off plan to build RM203m Senawang shopping centre: Ireka Corporation Bhd and Aeon Co (M) Bhd have called off their plan to build a shopping centre in Senawang, Seremban. The construction company said on Tuesday that conditions under the agreements could not be fulfilled within the period and the renewed period of 18 months since it was signed on Dec 26, 2014. — StarBiz
Area Management inks RM436mil accord with MAHB: Area Management Sdn Bhd has signed a memorandum of business exploration with Malaysia Airports Holdings Bhd (MAHB) to develop a 24.28ha piece of land into a technology park with a gross development value of RM436mil. - Bernama
AirAsia brushes aside reports on dual listing: AirAsia Bhd says a dual listing is not an option the low-cost carrier is formally considering and it is not pursuing any new joint venture in China. - Bernama
Deal signed for energy efficient road lights in Malacca: The Asian Development Bank and Malacca Bio-Technology Corp have signed a transaction advisory services agreement paving the way for a public-private partnership project to install energy efficient road lights in Malacca. The project, is expected to cost about US$50mil (RM199mil). - StarBiz
Spotlight on Wah Seong: Analysts are retaining their calls on Wah Seong Bhd pending further clarity on the financial impact of the new pipeline contract the company clinched from Switzerland-based Nord Stream 2 AG. - StarBiz
MAHB, AirAsia to hold talks on promoting Klia2 as low cost travel hub: Malaysia Airports Holdings Bhd (MAHB) will be meeting up with AirAsia Bhd officials to discuss how to promote Klia2 as a low cost travel hub, says managing director Datuk Badlisham Ghazalie. - StarBiz
AirAsia buys 100 A321neo planes from Airbus: AirAsia has signed a firm order with Airbus for the purchase of 100 A321neo aircraft, bringing the total number of A320 Family ordered to 575. The contract marks the first order placed by the low-cost carrier for the largest model in the best-selling A320 family. - StarBiz
More palm oil losses seen as output, inventories swell: Palm oil, which slid into a bear market, may extend losses as a seasonal increase in production threatens to expand stockpiles and demand falters, according to Godrej International Ltd’s Dorab Mistry. - Bloomberg
Vivocom proposes bonus issue: ACE Market-listed Vivocom International Holdings Bhd has proposed a one-for-four bonus issue which would involve issuing up to 870.31 million new shares. - StarBiz
Mexter appoints ex-AmBank chief as director: Mexter Technology Bhd has appointed Datuk James Lim Cheng Poh an independent and non-executive director with immediate effect. Lim, 67, the former AmBank (M) Bhd managing director and chief executive officer, was also made Mexter’s audit committee chairman as well as a member of its remuneration and nomination committees. - StarBiz
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