Global banks like Citi and HSBC are now concentrating on small to medium-sized clients due to a dwindling number of $10 billion-plus IPOs from Chinese state-owned companies - deals which had sustained investment banks in the region over the last decade.
MarketWrap: The S&P 500 ended slightly higher on Wednesday as investors digested mixed earnings reports, while the Dow Jones Industrial Average slipped as bank stocks weighed. The Nasdaq gained moderately to close at a record high for a second straight day, lifted by big tech names such as Facebook and Apple. - Reuters
The DJIA fell 35.95 points, or 0.18%, to 20,054.34, the S&P 500 gained 1.59 points, or 0.07%, to 2,294.67 and the Nasdaq added 8.24 points, or 0.15%, to 5,682.45.
Energy
Oil prices rose slightly on Wednesday as investors covered short positions after a rise in US crude inventories was not as massive as many had feared, while gasoline futures jumped 4% after a surprise decline in inventories of the fuel. Brent crude futures LCOc1 settled at US$55.12 per barrel, up 7 cents or 0.13%. - Reuters
Forex summary
*The ringgit lost 0.09% to 4.4395 per US$
*It lost 0.21% to 4.7439 versus euro
*Down 0.01% to 5.5543 per pound sterling
*Up 0.03% to 3.1320 per Singapore dollar
*0.17% higher to 3.3860 per Aussie
*0.16% higher at 3.9602 per 100 yen
Top foreign stories
Boutique bank Moelis wins advisory role for mammoth Saudi Aramco IPO: New York-based boutique investment bank Moelis & Co has been chosen as an adviser by Saudi Aramco on its plans for what is expected to be the world's biggest initial public share offer, sources said. Officials expect to value the oil producer’s IPO at a minimum of $2 trillion. - Reuters
Goldman hedge fund folding London operations, shifting staff to US: Goldman Sachs Investment Partners, which opened in 2008 with one of the biggest launches in hedge fund history, is folding its London operations into the United States and shifting staff members to New York, sources said. - Reuters
BoE's Cunliffe warns against diluting global banking rules: Bank of England Deputy governor Jon Cunliffe warned against moves to dilute the banking rules introduced after the global financial crisis, which have come under fresh scrutiny following Donald Trump US presidential election win. Trump last week ordered reviews of the banking rules put in place after the 2008 financial crisis, while in Britain some supporters of Brexit have called for a scaling back of similar regulations once the country leaves the European Union. - Reuters
Top local stories
FGV: KPF share sale a non-issue: Koperasi Permodalan Felda’s (KPF) recent disposals of Felda Global Ventures Holdings Bhd (FGV) shares are part of the cooperative’s trading activity and do not affect their long term commitment as a substantial shareholder. “There are two portions to KPF’s shareholding in FGV. One is the trading portion while the remainder is the 5% stake which is a long term holding. It is perfectly normal for them to take profit as part of their trading activity,” said FGV chief executive officer Datuk Zakaria Arshad. - StarBiz
Perwaja aborts regularisation scheme: Perwaja Holdings Bhd has aborted its proposed regularisation scheme that would have seen a China-based group emerging as a strategic shareholder and its factory shifting towards producing specialised higher value-added stainless steel products. - StarBiz
Stone Master auditor gives qualified opinion: Stone Master Corp Bhd’s external auditor, Messrs Baker Tilly Monteiro Heng, has expressed a qualified opinion on the company’s annual audited financial statements for the year ended Sept 30, 2016. The PN17-status company said its external auditors were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. - StarBiz
TA Global unit completes Trump hotel acquisition: TA Global Bhd’s subsidiary Maxfine International Ltd has completed the acquisition of the Trump International Hotel & Tower Vancouver from West Georgia Development Limited Partnership. - StarBiz
SMEs expected to boost Bursa listings: The new small and medium-sized enterprise (SME) market on Bursa Malaysia is expected to be introduced in the second quarter of the year and it is likely to boost the dwindling number of initial public offerings, says Bursa CEO Datuk Seri Tajuddin Atan. - StarBiz
Maxis Q4 profit up 14% to RM544m: Maxis Bhd’s profit after tax (PAT) rose 14% to RM544mil in the fourth quarter ended Dec 31, 2016 as it continued to grow its revenue, profits and market share. For the full year, PAT rose to nearly RM2bil. Revenue increased by 1.7% to RM2.21bil in the quarter. It declared a fourth interim dividend of five sen net a share, bringing the total dividend for 2016 to 20 sen. - StarBiz
More contracts in pipeline for O&G industry this year: The contract flows in the oil and gas sector in Malaysia are likely to improve this year, with oil majors set to revisit capex plans due to higher oil prices, says Affin Hwang Capital Research. - StarBiz
Citi Malaysia to upgrade four to digital branches: Citi Malaysia says its branches in Cheras, Taipan USJ, Bukit Tengah in Penang and Durian Tunggal in Malacca will be upgraded to digital branches on March 16, 2017, offering clients a suite of digital only self-service channels. - StarBiz
BDB plans to launch 4,000 property units this year: Bina Darulaman Bhd
(BDB) plans to launch more than 4,000 property units this year. The property developer said the total gross development value of its planned launches is estimated to be RM1.25bil. Eighty-five per cent of the units will be priced at RM500,000 and less. - StarBiz
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