Cost management: CIMB is a stock loved by investors for its liquidity, but they are also quick to punish it at the slightest hint of bearish sentiment.
Energy
Brent crude was 0.37% higher to US$54.35 per barrel at 3.29pm.
Forex
Ringgit down 0.09% to 4.2975 versus the US dollar at 3.38pm.
Top foreign stories
Moody’s downgrades China, warns of fading financial strength as debt mounts: Moody’s Investors Service downgraded China’s credit ratings on Wednesday for the first time in nearly 30 years, saying it expects the financial strength of the economy will erode in coming years as growth slows and debt continues to rise. The one-notch downgrade in long-term local and foreign currency issuer ratings, to A1 from Aa3, comes as the Chinese government grapples with the challenges of rising financial risks stemming from years of credit-fuelled stimulus. — Reuters
Noble Group says still talking with potential strategic parties: Struggling commodity trader Noble Group Ltd said on Wednesday it was still in discussions with various potential strategic parties as it sought to regain market confidence, but its shares fell 11% in early trade. — Reuters
Oil prices rise as market expects extended production cut: Oil prices rose on Wednesday, supported by confidence that an Opec-led output cut aimed at tightening supply would be extended to all of 2017 and the first quarter of next year. Brent futures rose to US$54.34 per barrel by 0652 GMT, up 19 cents, or 0.35%, from their last close. — Reuters
RBS struggles to seal deal over 2008 cash call dispute: Royal Bank of Scotland is struggling to reach a deal with all the investors who allege the lender misled them during a 12 billion pound (US$15.6 billion) cash call in 2008, two sources familiar with the situation said. A trial over the matter had been due to start Monday, but has been adjourned for the past two days as lawyers said the two sides were optimistic they could strike a settlement. — Reuters
Top local stories
CIMB posts record quarterly earnings of RM1.18b: CIMB Group Holdings Bhd posted its highest quarterly earnings of RM1.18bil in tandem with the gradually improving regional economic conditions and capital market activity. The lender said its earnings rose 45% from RM813mil a year ago while revenue increased 17% to RM4.36bil from RM3.725bil. Earnings per share stood at 13.31 sen. — StarBiz
DRB-Hicom to sell 49.9% in Proton to China’s Geely: DRB-Hicom Bhd is selling a 49.9% stake in loss-making Proton Holdings Bhd to China-based Zhejiang Geely Holding Group Co Ltd. DRB-Hicom said the deal will also see Proton sell its entire equity in British carmaker Lotus to Geely, effectively exiting the sports car segment. Both parties expect to sign the definitive agreement in July 2017. — StarBiz
Govt to reimburse Proton RM1.1b as grant for R&D: The Government will reimburse Proton Holdings Bhd RM1.1bil as a grant for money spent on research and development (R&D) in the past, says Second Finance Minister Datuk Seri Johari Abdul Ghani. He said on Wednesday Proton had spent RM3.5bil in the past on R&D, adding there would be no more “subsidy” for the national carmaker from now on. — StarBiz
TH Plantations posts net profit of RM11.2m in Q1: TH Plantations Bhd returned to the black in the first quarter, posting a net profit of RM11.2mil compared with a net loss of RM7.15mil a year ago. The company attributed the results mainly to improved gross profit and higher other income arising from deferred income on government grant recognised during the quarter. Revenue increased 86% RM166.05mil on a recovery in fresh fruit bunches production and better crude palm oil (CPO) and higher realised commodity prices. — StarBiz
Chinese demand for palm oil set to drop as buyers snap up alternative cargoes: Palm oil demand from China, the world’s No.2 importer of the commodity, is set to drop in coming months as supplies of alternative edible oils flood local markets, industry sources said. Sluggish Chinese appetite for palm oil could pile further pressure on benchmark prices that have shed 15% since the start of the year due to expectations for rising output. — Reuters
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