Market wrap: US stocks dropped on Tuesday as a selloff in commodities dragged down materials companies while Volkswagen suppliers' shares dropped following the German carmaker's emissions scandal. - Reuters
The DJIA fell 179.72 points, or 1.09%, to 16,330.47, the S&P 500 lost 24.23 points, or 1.23%, to 1,942.74 and the Nasdaq dropped 72.23 points, or 1.5%, to 4,756.72.
Forex summary
*The ringgit lost 0.47% to 4.3243 per US$
*It rose 0.28% to 4.8048 per euro
*Up 0.33% to 6.6387 to the pound sterling
*0.36% lower to 3.0510 per Singapore dollar
*0.04% higher to 3.0615 per Aussie
*Down 0.52% to 3.6003 per 100 yen
Energy
Brent settled up while US crude finished down 2% but off its lows after a partial pipeline outage and bets of positive US inventory data helped oil offset some of Tuesday's skittish sentiment caused by weak Wall Street stocks. Brent's front-month contract, November, settled up 16 cents, or 0.3%, at US$49.08 a barrel. - Reuters
Top foreign news
Petrobras says in final talks with Mitsui over gas unit stake: Brazil's Petróleo Brasileiro SA said on Tuesday it is in the last stages of talks to sell a minority stake in a natural gas distribution holding company to Japan's Mitsui & Co Ltd, in its drive to dispose of over US$13 billion worth of non-essential assets by the end-2017. - Reuters
US drugmaker Turing to roll back 5,000% price hike: Turing Pharmaceuticals, a small company that generated outrage over raising the cost of an old anti-infective drug by more than 5,000%, said on Tuesday it would roll back that increase to make sure it remains affordable. Turing and its CEO Martin Shkreli became the new face of the US drug pricing controversy this week, after the New York Times reported that the company had raised the price of Daraprim, a 62-year-old treatment for a dangerous parasitic infection, to US$750 a pill from US$13.50 after acquiring it. The medicine once sold for US$1 a pill. - Reuters
Greek PM to back Greek bailout with Tsakalotos as finance minister: Greek Prime Minister Alexis Tsipras appointed two respected bailout negotiators to head his economic team on Tuesday, moving to assure wary European partners that the new government will not backtrack on its cash-for-reform deal. Tsipras reappointed Euclid Tsakalotos as finance minister and made George Chouliarakis deputy finance minister. - Reuters
Volkswagen says 11 million cars hit by scandal: Volkswagen AG said a scandal over falsified US vehicle emission tests could affect 11 million of its cars around the globe as investigations of its diesel models multiplied, heaping fresh pressure on CEO Martin Winterkorn. The world's largest automaker said it would set aside 6.5 billion euros (US$7.3 billion) in its third-quarter accounts to help cover the costs of the biggest scandal in its 78-year-history. - Reuters
Top local stories
Loophole plugged: An amendment to a securities law is to plug a loophole in the law that allowed parties to exclude liability for the veracity of statements made in marketing material related to corporate bonds.
The Capital Markets and Services (Amendment) Act 2015 (CMSA 2015) now makes it clear that any “document, agreement or contract” that seeks to exclude the liability of the issuer of that document from the accuracy and reliability of information in that document will be deemed as void.
Highlights of the amendments:
* private companies such as SMEs and start-ups that are hosted under the equity crowd-funding platform would be able to offer shares to members of the public;
* persons or parties preparing the content of disclosure documents are accountable for ensuring the accuracy and reliability of information provided in the disclosure documents;
* any document, agreement or contract such as disclaimer statements that seek to exclude this liability is void;
* Obligation imposed on those who are aware of a false or misleading statement in disclosure documents in respect to debentures, to inform the SC;
* SC allowed the power to appoint independent adviser for an offeree when the latter had not appointed one;
* scope of Audit Oversight Board expanded to include auditors who inspect books of unit trusts and PRS. - StarBiz
Malaysia's reserves rise: Malaysia’s international reserves position improved again as at mid-September, gaining US$600mil or RM2.6bil amid volatility in the currency markets stemming from speculation over a US rate hike and fears of a more serious slowdown in Chinese growth. Reserves stood at US$95.3mil at Sept 15. - StarBiz
Westports container tariff hike postponed for another month: Westports Holdings Bhd
said the Government has postponed the implementation of a container tariff hike at its port by another month. The port operator said it had received a letter from Port Klang Authority notifying that phase 1 of the revised tariff would take effect on Nov 1, instead of Oct 1. The regulator did not state the reason for the second delay. - StarBiz
Eco World plans to buy land for RM1.18bil: Eco World Development Group Bhd has proposed to buy 2,198.4 acres of leasehold land in Ijok, Kuala Selangor for RM1.181bil. The company has identified three pro-
jects to be carried out, including a 1,400 acre mixed-eco township project, consisting mainly of landed and high-rise residential homes. It also intends to build an integrated gated industrial hub and affordable homes. The estimated gross development value is RM15bil over a 15-year development period. - StarBiz
Stick to steady dividend stocks, investors advised: Investors should stick to stocks with steady dividend returns to protect their investments amid an unpredictable market condition, says AmInvestment Bhd chief investment officer for equities Andrew Wong. He favours telecoms firms, which traditionaly pay out the bulk of their profits as dividends. Other so-called defensive stocks are in the utility sector, the healthcare industry and construction companies that have strong contract visibility. - StarBiz
No Govt financial assistance for ValueCap: The Government does not provide financial assistance to ValueCap Sdn Bhd, according to the Special Economic Committee (SEC). It said ValueCap had the mandate to raise up to RM20bil from its shareholders and financial institutions. - Bernama
KESM net profit up 56% on weaker ringgit: The weaker ringgit’s exchange rate boosted profit margins at KESM Industries Bhd. The semiconductor player said fourth-quarter net profit surged 56% to RM10.45mil, while revenue was flat at RM68.94mil. Earnings per share surged 57% to 24.3 sen from 15.5 sen before. It declared a three sen dividend, taking the year's total to six sen. - StarBiz
Thai auto-part firms seek tie-ups: Auto parts makers in Thailand are reaching out to their counterparts in Malaysia for potential tie-ups. Future collaborations will bring about many benefits to both countries as they will be able to share technology and boost efficiency to achieve higher volumes, says Thai Subcontracting Promotion Association president Somkiat Chupukcharoen. - StarBiz
Petronas spends RM500mil on talent management: Petroliam Nasional Bhd (Petronas) spent about RM500mil on talent management as well as on leadership training and competency building for its 51,000 employees last year. President and chief executive officer Datuk Wan Zulkiflee Wan Ariffin said that apart from making a hefty investment to nurture talents, the company also spent a lot of time looking at succession plan and employee development needs. - Bernama
El Nino poses big threat: A strong El Nino phenomenon, which is expected to hit Malaysia by the end of this year and last until April next year, is bound to cause a major disruption to palm oil production, said industry experts. Ganling Sdn Bhd director Ling Ah Hong said El Nino could result in a yield decline of between 2% and 23%. - StarBiz
HSBC’s Rafe expected to helm CIMB Islamic: CIMB Group Holdings Bhd is expected to appoint Rafe Haneef, who currently heads HSBC Amanah Malaysia Bhd, as the new chief executive officer of its Islamic banking arm CIMB Islamic Bank Bhd, sources said. It is understood that Rafe has tendered his resignation, after almost five years of helming the foreign Islamic lender. Separately, Ex-CIMB Islamic Bank CEO Badlisyah Abdul Ghani refuted market talk he is joining Alkhair International Islamic Bank Bhd (formerly known as Unicorn International Islamic Bank). - Edge FD
Benyamin Ismail is AirAsia X CEO: AirAsia X Bhd has confirmed the appointment of its acting chief executive officer Benyamin Ismail as CEO effective Sept 1. “The board approved on Sept 22 and the letter of appointment also dated on the same day which specified that the CEO’s appointment is to take effect from Sept 1,” the carrier said. - Edge FD
Jaks' JV secures US$1.4b funding for power plant: JAKS Resources Bhd’s joint-venture partner China Power Engineering Consulting Group Co Ltd on Sept 19 secured US$1.402 billion (RM6.01 billion) financing for the proposed construction of a power plant in Vietnam. Jaks said the principal financiers for the US$1.4 billion loan are Industrial and Commercial Bank of China, China Construction Bank Corporation and Export-Import Bank of China. - Edge FD
Fima to raise plantation profit contribution: FIMA Corp Bhd is looking to raise its plantation segment’s contribution to the group’s bottom line from 40% currently to 50% in five years, as a way to lessen dependence on its core business of security document printing, which is facing limited growth. In terms of revenue, plantation makes up about 30% of the group’s total now, said Fima group managing director Roslan Hamir. The remain- der comes from security document printing. - Edge FD
AGMs/EGMs
Reliance Pacific Bhd
Time: 3pm
Venue: Bukit Jalil Golf & Country Resort, Bukit Jalil, Kuala Lumpur
SMPC Corporation Bhd
Time: 11am
Venue: The Light Hotel, Lebuh Tenggiri 2, Bandar Seberang Jaya, Penang
Limited time offer:
Just RM5 per month.
