Breakfast briefing: Wednesday, June 3

  • Business
  • Wednesday, 03 Jun 2015

Breakfast briefing: Wednesday, June 3

Market wrap: US stocks eased as a jump in bond yields hit utilities and other top dividend payers, but energy gains and optimism Greece is near a deal with creditors limited losses. - Reuters

The DJIA fell 28.43 points, or 0.16%, to 18,011.94, the S&P 500 lost 2.13 points, or 0.1%t, to 2,109.6 and the Nasdaq dropped 6.40 points, or 0.13%, to 5,076.52.

Forex summary

The ringgit was down at Tuesday's close due to lack of demand. — Bernama

*The local currency was down 0.33% to 3.6985 per US$

*It fell 1.10% to 4.0620 per euro

*Down 0.41% to 5.6371 to the pound sterling

*0.04% up to 2.7265 per Singapore dollar

*0.84% lower to 2.8429 per Aussie

*Down 0.42% to 2.9663 per 100 yen


Oil prices rose as much as 2%, driven by a weak dollar and expectations that US crude supplies could have fallen last week for a fifth straight week. Brent crude settled up 61 cents, or 1%, at US$65.49 a barrel. - Reuters

Top foreign stories

China's Dalian Wanda buys Australian cinema chain Hoyts: Wanda Cinema Line Corp, a unit of China's leading property developer Dalian Wanda Group, said it would buy Australian cinema chain Hoyts Group, a purchase that underscores its parent's ambitions to become a global entertainment company.
Wanda Cinema did not disclose how much it would pay for Hoyts.- Reuters

Core Gulf Opec members in 'consensus' on oil ceiling: Core Gulf Opec members and others have a consensus to keep the organisation's oil production ceiling intact at its meeting this week, a senior Gulf Opec delegate said, reinforcing a view among a growing chorus of members.- Reuters

Fed’s Brainard says US economic slowdown may drag on: The US economy’s recent poor performance may be more than transitory, as the full impact of weak consumer spending, low investment and a strong US dollar become apparent, US Federal Reserve board member Lael Brainard said. - Reuters

UK home prices to rise 6% this year: British house prices will continue to rise over the next three years as the market is capable of withstanding the gradual interest rate increases expected from the Bank of England, a poll showed. - Reuters

US factory orders weak; robust auto sales a bright spot: New orders for US factory goods fell in April on weak demand for transportation equipment and other goods, suggesting that manufacturing remained constrained by a strong dollar and spending cuts in the energy sector. The outlook for manufacturing and the broader economy, however, got a lift from another report showing vehicle sales in May rising at their briskest pace in a decade. - Reuters

Greece's creditors draft deal to unlock aid, Athens resists: Greece's creditors drafted the broad lines of an agreement to put to the leftist government in Athens in a bid to conclude four months of acrimonious negotiations and release aid before the cash-strapped country runs out of money. - Reuters

Boeing starts building first 737 MAX jet on schedule: The aircraft maker said it has started building its first 737 MAX single-aisle jetliner on schedule, an important milestone for a new plane model that accounts for nearly half of the company's plane orders. The first 737 MAX, a more fuel efficient version of Boeing's top-selling jet, is scheduled to be completed this year and begin flights tests in 2016. - Reuters

Top local stories

MIA auditing the auditors: The auditors who signed off on 1Malaysia Development Bhd accounts will be investigated by the Malaysian Institute of Accountants (MIA). MIA chief executive officer Ho Foong Moi Ho said: “We have a due process to investigate any complaints made against any of our members.” - StarBiz 

Move to name and shame errant auditors: The Audit Oversight Board, the regulator of audit firms in Malaysia, has raised the issue of firms not fixing problems it had raised during inspections.To put pressure on such firms, the board will to make its inspection report public.- StarBiz

Salaries of audit firm employees higher than fees: For the first time in two years, growth in employee costs has outstripped audit fees among Malaysian firms.While the growth in audit fees has dipped by a quarter from 12% to 9% in the past year, the growth in staff cost has remained constant for the past two years. - StarBiz

MSM plans big in Asean: MSM Malaysia Holdings Bhd hopes to acquire refineries and sugar-related downstream business in the Asean region.- StarBiz

Sona ends talks on Salamander assets: Sona Petroleum Bhd has ended discussions with UK-listed Ophir Energy Plc on the acquisition of Salamander Energy (Bualuang) Ltd’s assets.- StarBiz

Cocoaland gets takeover offer: Snacks and candy company Cocoaland Holdings Bhd has received an indicative non-binding proposal from First Pacific Co Ltd to acquire the business of Cocoaland including all of its assets and liabilities for RM463.32mil or RM2.70 per share. This is the second takeover offer Cocoaland is receiving in less than two weeks.Last week, the Cocoaland board rejected a takeover offer from private equity firm Navis Asia VII Management Co Ltd for RM377.52mil or RM2.20 per share.- StarBiz

MoF engages Fitch on Malaysia’s resilience: The Ministry of Finance met representatives of the Fitch Ratings agency to convince them that the domestic economy is still on a stable growth path, underpinned by consistent policies under the 11th Malaysia Plan, according to Finance Ministry secretary-general Tan Sri Mohd Irwan Serigar Abdullah. - Edge FD

Scanwolf forms panel, suspends two executives: The plastic extrusion maker and property developer has formed an investigative committee and suspended the executive powers of its executive director Datuk Tan Sin Keat and financial controller Ng Chee Wai.- StarBiz

Bursa to suspend trading in Biosis: The stock exchange has rejected Biosis Group Bhd’s proposed regularisation plan, and this has resulted in the suspension of trading in the company’s shares effective June 10.- StarBiz

TSH to maintain growth: Despite the prevailing crude palm oil prices trading at the lower end of their range, TSH Resources Bhd is aiming to maintain growth at double digits. - StarBiz

Kulim plans 2 property projects in Johor: Kulim (M) Bhd will be making a comeback to the property industry as plans to develop some 8,000ha of its oil palm plantations are in the pipeline.Its chairman says the company was planning a mixed development at its Ladang Siang near Desaru and Ladang Sungai Papan near Tanjung Belungkor oil palm plantations. - StarBiz

Tony Tiah tightens grip on TA Global: TA Global Bhd executive chairman Datuk Tony Tiah Thee Kian has continued to accumulate shares in the firm over the past two months, raising his direct stake in the company to 12.23%. Besides his direct stake in TA Global, Tiah also owns 31% in TA Enterprise Bhd, which is the single largest shareholder of TA Global, holding a 60.17% equity stake in the property company. Through TA Enterprise alone, Tiah holds an effective stake of 18.65% in TA Global. This means with his direct equity interest, the seasoned stockbroker controls about 30.88% — not too far from the 33.3% threshold of a mandatory general offer. - Edge FD

RAM assigns ‘stable’ outlook on Malaysian banking sector: RAM Rating Services Bhd has assigned a “stable” outlook on the Malaysian banking sector, in its first report as part of its new banking sector assessment series published yesterday. - Edge FD

WCT deputy MD refutes allegation: WCT Holdings Bhd’s deputy managing director Goh Ching Liong has refuted the Securities Commission’s allegation over his purported involvement in insider trading. Goh is seeking legal advice to resolve the civil suit.- StarBiz

Events calendar

The Organisation of the Petroleum Exporting Countries holds its
meeting in Vienna.

Australia releases its gross domestic product (GDP) data for the first
quarter (0130 GMT). The consensus is the GDP will come in at 2%.

Markit Economics will report on Japan’s Services Purchasing Managers
Index (PMI) for May (0135 GMT).

Chartered Institute of Purchasing & Supply and the Markit Economics
will release the PMI service for UK services sector (0830 GMT).

Markit Economics will unveil the HSBC China Services PMI for May (0145 GMT)

The US Federal Reserve releases the Beige Book on the current US
economic situation (1800 GMT).


AirAsia Bhd

Time: 10:00am

Venue: Asian Aviation Centre of Excellence ,KLIA
Points of interest to be raised: Going forward into FY2015 and FY2016, what would be the outlook and how the group would be able to address and manage especially the large expenses and costs?

Utusan Melayu (Malaysia) Bhd

Time: 10:00am

Venue: Bagunan Korporat UMMB, No 44, Jalan Utusan Off Jln Chan Sow Lin, Kuala Lumpur

Points of interest to be raised: What measures have been taken to address the deteriorating financial performance and what is the outlook going forward. When does the board expect to see a reversal of the group's financial performance to turn profitable?

Paramount Corporation Bhd

Time: 10:30am

Venue: The Saujana Hotel KL ,Saujana Resort, Jalan LTSAAS, Shah Alam

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