Capital-raising exercise: Snap Inc is aiming to raise billions in a 2017 IPO.
MarketWrap: European stocks rose on Monday, with gains in telecoms and banks offsetting a big fall in Unilever, while uncertainty over political developments and the timing of a US interest rate hike kept the dollar in check. US markets were closed for the Presidents Day holiday, and this restricted activity in Europe and Asia. - Reuters
Energy
Oil prices inched higher on Monday, as investor optimism over the effectiveness of producer cuts encouraged record bets on a sustained rally, although growing US output and stubbornly high stockpiles kept price gains in check. Brent futures LCOc1 ended the session up 0.7% at US$56.18 a barrel. - Reuters
Forex summary
*The ringgit at 4.4605 per US$
*It gains 0.33% to 4.7202 versus euro
*Flat 5.5537 per pound sterling
*Up 0.22% to 3.1379 per Singapore dollar
*0.09% lower to 3.4236 per Aussie
*0.33% higher at 3.9292 per 100 yen
Top foreign stories
Burger King and Tim Hortons owner nears deal to buy Popeyes: Restaurant Brands International Inc, owner of the Burger King and Tim Hortons fast-food chains, is nearing a deal to acquire Popeyes Louisiana Kitchen Inc, people familiar with the matter said on Monday. The deal will likely value Popeyes at more than US$1.7 billion. - Reuters
Snap arrives in London to woo sceptical investors ahead of IPO: Snap Inc, owner of popular messaging app Snapchat, kicked off its first investor roadshow on Monday, looking to persuade London money managers to back its initial public offering in the face of concerns about its growth prospects, valuation and corporate governance. - Reuters
Report: Wanda’s US$1b purchase of Dick Clark Productions falls apart: Chinese conglomerate and cinema chain operator Dalian Wanda’s proposed US$1 billion purchase of Dick Clark Productions Inc has fallen apart, online entertainment news website The Wrap reported on Monday, citing unnamed sources. The deal collapsed over problems getting currency out of China and regulatory approval from the Chinese government, The Wrap said. - Reuters
Amazon to create over 5,000 jobs in Britain in 2017: Online retailer Amazon is set to create more than 5,000 jobs in Britain this year, the company said on Monday, boosting its investment in the country once more even as it prepares to leave the European Union. - Reuters
Top local stories
Eco World International secures EPF, PNB as cornerstone investors: Eco World International Bhd, which is slated to be Malaysia’s biggest listing this year, has secured the Employees Provident Fund (EPF) and Permodalan Nasional Bhd (PNB) as its cornerstone investors. President and chief executive officer Datuk Teow Leong Seng said the funds would take up 30% of the initial public offering shares that have been allocated to the institutional investors. - StarBiz
IOI profit tumbles in Q2: IOI Corp Bhd’s net profit fall 97.8% to RM15.6mil for the second quarter on foreign currency translation losses. Revenue was up 23.5% to RM3.67bil. IOI proposed a first interim dividend of 4.50 sen per share. - StarBiz
EPF eyes more investments overseas to boost income: The Employees Provident Fund (EPF) is actively looking for more investment opportunities overseas, as the income from foreign assets is significant for the performance of the pension fund. “In 2009, we had roughly about 6% in global investments, three to four years later it is about 20% to 24%… you will see more of the same (this year), as we move to that 30% target,” says CEO Datuk Shahril Ridza Ridzuan. - StarBiz
Pension fund sees growing interest in syariah scheme: The Employees Provident Fund (EPF) expects more depositors to switch to its fully syariah-compliant investment component in the coming year. As at Dec 23 last year, a total of 650,037 members had switched to the Simpanan Shariah scheme, with RM59.03bil of the initial fund allocation of RM100bil taken up. - StarBiz
Eco World Development sees property market improving: Eco World Development Group Bhd expects the property market to improve this year, supported by the low interest rate environment and positive buying sentiment. “We are optimistic of achieving our RM4bil sales target this year amid a challenging market condition,” says CEO Datuk Chang Khim Wah. - StarBiz
Geely likely to bid for Proton this week: Chinese automaker Zhejiang Geely Holding Group Co is expected to bid as early as this week for a strategic partnership with carmaker Proton Holdings Bhd, sources said. As part of its pitch following discussions with Proton’s owner, DRB-Hicom Bhd, Geely, which owns Sweden’s Volvo Car Group, is expected to offer Proton some of the latest vehicle technologies it has developed with Volvo’s input. - Reuters
Petronas considers US$1b stake sale in gas project: Petroliam Nasional Bhd (Petronas) is aiming to sell a large minority stake in a prized upstream local gas project for up to US$1bil (RM4.46bil) as it seeks to raise cash and cut development costs, sources said. Petronas is looking to sell a stake of as much as 49% in the SK316 off- shore gas block in Sarawak, they said, a move that would be one of its first major recent sales as it grapples with oil prices that have slumped by half from 21⁄2 years ago. - Reuters
PetChem earnings soar on higher sales volume: Petronas Chemicals Group Bhd (PetChem)’s net profit surged 40.2% to RM987mil in the final quarter of the financial year ended Dec 31, 2016, on higher sales volume, lower unit cost, favourable spreads and stronger US dollar. Revenue increase 14.4% to RM3.95bil on higher volume and stronger US dollar, while its earnings per share grew to 12 sen from nine sen previously. - StarBiz
Malakoff revenue up on contribution by unit Tanjung Bin: Malakoff Corp Bhd posted a 25% increase in revenue to RM1.71bil for the fourth quarter on contribution by Tanjung Bin Energy Sdn Bhd, which began commercial operation in March last year. - StarBiz
Steve Low appointed Sterling executive director: Sterling Progress Bhd has appointed T Hotel Group founder Steve Low Wey Heng as its new executive director. Separately, the company said its losses narrowed to RM592,000 in the third quarter from RM5.2mil a year ago, due to the lower revenue from the sale of notebooks and smartphones. - StarBiz
RHB Research raises Malaysia's export growth forecast to 6% this year: RHB Research Institute has revised up Malaysia’s export growth forecast to 6% this year from 2% before. It said the more bullish forecast is on account of the recovery in demand for commodity products, aided by higher prices and pick-up in global semiconductor sales in late 2016, translating into higher electrical and electronics exports. - StarBiz
Local Islamic financing market still on growth path: The domestic Islamic financing growth will continue to outpace the conventional banking loan growth, driven by the regulatory push to fortify domestic Islamic banking entities to enhance global competitiveness. AllianceDBS Research expects Islamic financing growth to reach a four-year cumulative average growth rate of 12% from 2016 to 2020, as opposed to 2% for conventional banking loan growth. - StarBiz
Jetson-CCCC tie-up bags SUKE construction deal: Kumpulan Jetson Bhd
and Beijing-based construction firm China Communications Construction Co Ltd (CCCC) have jointly secured a RM201.87mil subcontract to build a stretch of the 31.8km Sungai Besi-Ulu Kelang Elevated Expressway (SUKE). - StarBiz
Padini Q2 net profit up 64.7%, pays 2.5 sen dividend: Padini Holdings Bhd’s net profit jumped 64.7% to RM54.47 million in the second quarter on improved gross profit margins as there were less markdowns in the period. Revenue grew 25.4% to RM426.65mil. - Edge FD
MIDF seeks M&A partner to venture into retail banking: Malaysian Industrial Development Finance Bhd (MIDF) is on the lookout for merger and acquisition (M&A) targets in the next 18 to 24 months, as the company seeks an entry into the retail banking segment. Group managing director Datuk Mohd Najib Abdullah says MIDF is looking at both local and foreign institutions, but declined to reveal details. - Edge FD
CIMB Niaga sees over 500% jump in FY16 net profit: CIMB Group Holdings Bhd’s 92.5%-owned PT CIMB Niaga Tbk saw its net profit soar 516% to 2.04 trillion rupiah (RM681.5 million) for the financial year ended Dec 31, 2016 (FY16). - Edge FD
Potential spillover bene ts of up to RM650b from HSR: MyHSR Corp Sdn Bhd believes the 350km high-speed rail (HSR) that will connect Kuala Lumpur and Singapore can result in a potential spillover in terms of economic benefit of up to RM650 billion in gross national income by 2069. - Edge FD
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