Market wrap: US stocks fell in choppy trading on Wednesday as minutes from the latest Federal Reserve meeting highlighted concern over the state of the global economy, driving markets to question the likelihood that the Fed will raise rates next month. - Reuters
The DJIA fell 162.61 points, or 0.93%, to 17,348.73, the S&P 500 lost 17.31 points, or 0.83%, to 2,079.61 and the Nasdaq dropped 40.30 points, or 0.8%, to 5,019.05.
Forex summary
*The ringgit rose 0.21% to 4.0972 per US$
*It fell 0.61% to 4.5659 per euro
*Up 0.07% to 6.4320 to the pound sterling
*0.21% down to 2.9308 per Singapore dollar
*0.11% higher to 3.0158 per Aussie
*Up 0.15% to 3.3112 per 100 yen
Energy
US crude oil slumped over 4% on Wednesday to hit a 6-1/2-year low and almost break below US$40 per barrel, as a huge unexpected stockpile build in the United States reinforced concerns about a growing global oil glut. The front-month in Brent LCOc1, the global benchmark for oil, settled down US$1.65, or 3.4%, at US$47.16 a barrel. - Reuters
Top foreign news
Strong jobs, weak inflation data muddy Fed rate debate: US Federal Reserve officials widely agreed last month the economy was nearing the point where interest rates should move higher, but worried lagging inflation and a weak global economy posed too big a risk to commit to "liftoff." - Reuters
Bank of NY Mellon sued by US regulator over US$2bil in soured mortgages: A US regulator sued Bank of New York Mellon Corp over US$2.06 billion in residential mortgage-backed securities purchased by a failed Texas bank, and accused it of breaching its duties as bond trustee to protect investors. In a complaint filed in Manhattan federal court, the Federal Deposit Insurance Corp, which sued in its capacity as receiver for the former Guaranty Bank, said it suffered more than US$440 million in losses when it sold the securities in March 2010. - Reuters
JPMorgan, Goldman Sachs, Morgan Stanley to form data company: JPMorgan Chase & Co, Goldman Sachs Group Inc and Morgan Stanley are working to create a company that will pull together and clean reams of data used to determine pricing and transaction costs, the Wall Street Journal reported. The initiative is currently dubbed "SPReD", which stands for Securities Product Reference Data, and is likely to be launched in the next six to 12 months, the Journal said. - Reuters
US consumer prices up slightly, airfare weighs: US consumer prices rose only slightly in July as airline fares recorded their biggest drop since 1995, but tame inflation pressures will probably not discourage the Federal Reserve from raising interest rates this year. The Labor Department said its Consumer Price Index edged up 0.1% last month, with gasoline and food prices increasing marginally. July's rise marked a sixth straight monthly increase. - Reuters
Kirin buys US$560mil stake in Myanmar's top brewer from F&N: Japan's Kirin Holdings has bought Fraser and Neave's (F&N) 55% stake in Myanmar's biggest brewer for US$560 million, paving the way for it to dominate one of Asia's most promising beer markets. - Reuters
Qantas reports net profit in quick turnaround: Qantas Airways Ltd on Thursday reported a return to full-year profit on the back of a tough cost-cutting programme and tailwinds from cheaper fuel costs, one of the quickest turnarounds in Australian corporate history. Qantas said underlying profit before tax was A$975 million, compared with a A$646 million underlying loss a year ago. - Reuters
Top local stories
Lim does it again: In his typical style, Tan Sri Desmond Lim has once again managed to rope in a strategic foreign partner for a large-scale development in Kuala Lumpur. The low-profile property baron, who owns the Pavilion Group of malls, has managed to partner Canada Pension Plan Investment Board in a joint venture for the development of his massive project in Pusat Bandar Damansara. - StarBiz
KLK net profit up on higher dividend income: Kuala Lumpur Kepong Bhd
(KLK) posted a 15.5% increase in net profit to RM246.88mil in the third quarter. Revenue was stronger at RM3.538bil, up 21%.
The planta- tion group said its performance during the quarter was due to a higher dividend income of RM53.4mil from an overseas investment, Synthomer Plc, and the release of RM12.6mil on interest income due to a disposal of a subsidiary. - StarBiz
Hibiscus to acquire 30% stake in new licence: Independent oil and gas exploration and production company Hibiscus Petroleum Bhd, through its jointly-controlled entity Lime Petroleum Norway AS, has entered into an agreement to acquire a 30% stake in a new licence in the North Sea. The company said Lime Norway had executed an agreement with Lundin Norway AS1 for a 30% stake in licence PL410 in the North Sea, in which it expects to drill in 2016. - StarBiz
Najib meets economists to get their feedback: Prime Minister Datuk Seri Najib Tun Razak had a roundtable meeting with several economists, from both local and financial institutions, to seek their views on the country’s current economic condition. “I appreciate their candid views on various aspects of our capital and people economies,” he posted on his official Facebook page yesterday. - StarBiz
Eco World to start work on RM8.7b project in Q1 2016: Eco World Development Group Bhd is expected to start construction of the RM8.7bil Bukit Bintang City Centre project by the first quarter of next year. Chief executive officer Datuk Chang Khim Wah said upon getting the development approval from the Kuala Lumpur City Hall, the company would prepare the pre-marketing for the launch of the project by year-end. - StarBiz
MSM records marginal growth: MSM Malaysia Holdings Bhd, the country’s largest refined sugar producer, recorded marginal earnings growth to RM79.1mil in its second quarter ended June 30 from a year ago despite facing headwinds in the form of a stronger greenback; a contributing factor as it procures raw sugar in US dollars. - StarBiz
Weaker ringgit pushes up inflation: Consumer prices increased more than expected in July, compared with a year earlier on the effects of a fuel-price hike, a weaker ringgit and the lingering impact of the goods and services tax in April. Data from the Statistics Department showed that headline inflation as measured by the consumer price index rose 3.3% to 113.9. - StarBiz
Approved investments at RM113.5bil: Malaysia saw its new approved direct investments increase to RM113.5bil in the first half of this year compared with RM112bil the same period a year earlier. International Trade and Industry Minister Datuk Seri Mustapa Mohamed said investor confidence sustained Malaysia’s growth as total investments realised to-date under the 10th Malaysia Plan period was RM813.5bil, exceeding the plan’s target of RM740bil. - StarBiz
AMMB identifying new group MD: AMMB Holdings Bhd, which posted a lower net profit of RM339.5mil in the first quarter ended June 30, is in the process of identifying the next group managing director. “The process of identifying the next group managing director is being led by our group nomination and remuneration committee of the board," it said. - StarBiz
AirAsia X net loss widens: AirAsia X Bhd's net loss widened to RM132.94mil in the second quarter ended June 30, from a net loss of RM128.79mil a year earlier. The long-haul associate of AirAsia Bhd also posted a 2.7% dip in revenue to RM653.03mil against RM671.61mil a year earlier. - StarBiz
MyTeksi secures US$350mil funding: Taxi-booking app operator GrabTaxi Holdings Pte Ltd, known as MyTeksi in Malaysia, said it has raised over US$350 million (RM1.43 billion) from investors, including China’s sovereign wealth fund China Investment Corp. It also counts US hedge fund Coatue Management LLC, and China’s mobile car-ride hailing firm Didi Kuaidi, among its new investors in its largest-ever fund- ing raised, according to GrabTaxi’s statement yesterday. - digitaledge
AmBank Group 1Q net profit falls 37.6%: AMMB Holdings Bhd’s (AmBank Group) net profit dropped 37.6% to RM339.5 million or 11.31 sen per share in its first quarter ended June 30, mainly on lower other operating income, net interest income and net income from the insurance business. - digitaledge
Spring Energy plans IPO: Spring Energy Resources Bhd, which is primarily in quarry and bauxite mining, is planning an initial public offering (IPO) to have its securities listed on the Main Market of Bursa Malaysia to expand its business operations. The IPO involves the issuance of 110 million new shares and represents about 17.7% of its enlarged share capital, though no indicative time frame was revealed. - digitaledge
Morten Sorby is DiGi’s new chairman: DiGi.Com Bhd has named Morten Karlsen Sorby as chairman, succeeding Sigve Brekke, who has been transferred to Telenor Group as group chief executive of- ficer. In a statement yesterday, DiGi said Sorby’s appointment is effective immediately. - digitaledge
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