Market wrap: US stocks closed lower on Thursday in a volatile session on uncertainty about US monetary policy and global economic growth, while market heavyweight Caterpillar cut its sales forecast and healthcare investors fled for the exits. - Reuters
The DJIA fell 78.57 points, or 0.48%, to 16,201.32, the S&P 500 lost 6.52 points, or 0.34%, to 1,932.24 and the Nasdaq dropped 18.27 points, or 0.38%, to 4,734.48.
Forex summary
*The ringgit lost 0.06% to 4.3767 per US$
*It rose 0.79% to 4.8901 per euro
*Up 0.33% to 6.6541 to the pound sterling
*0.44% higher to 3.0753 per Singapore dollar
*0.93% lower to 3.0708 per Aussie
*Up 0.04% to 3.6418 per 100 yen
Energy
Oil prices rose as much as 1% on Thursday, boosted by inventory draws at the US crude futures' delivery hub although gains were capped by tumbling equity prices on Wall Street. Brent settled up 42 cents, or 0.9%, at US$48.17. - Reuters
Top foreign news
Fed still on track for rate hike this year, says Yellen: Federal Reserve chair Janet Yellen said on Thursday she expects the US central bank to begin raising interest rates later this year as long as inflation remains stable and the US economy is strong enough to boost employment. Yellen, who spoke a week after the Fed delayed a long-anticipated rate hike, said she and other Fed policymakers do not expect recent global economic and financial market developments to significantly affect the central bank's policy. - Reuters
Volkswagen turns to Porsche boss to steer it out of crisis: Volkswagen will name Matthias Mueller, the head of its Porsche sports car brand, as its chief executive, a source said on Thursday, as the fallout from the US vehicle emissions test rigging scandal broadened. Mueller has been widely tipped to succeed Martin Winterkorn, who quit on Wednesday, when the German carmaker's supervisory board meets on Friday. He will take responsibility for steering Volkswagen through the biggest business crisis in its 78-year history. - Reuters
US business spending slips, new home sales rise in August: US business investment fell slightly in August, excluding spending on aircraft and defence equipment, but new home sales rose, suggesting that global economic headwinds were doing little to impede US growth. The Commerce Department said capital goods orders excluding military wares and aircraft dropped 0.2% last month. New home sales in August surged 5.7% to an annual pace of 552,000 or the highest level since 2008. - Reuters
Japan Tobacco in talks to buy Reynolds American assets: Japan Tobacco Inc is in advanced talks to buy assets worth about US$5 billion from Reynolds American Inc, including some of the Natural American Spirit tobacco brand, Bloomberg reported on Thursday. The talks could still fall apart and the size of the deal and nature of assets could change, Bloomberg said, citing sources. - Reuters
Top local stories
Eco World to meet Selangor govt: Property developer Eco World Development Group Bhd
will seek a meeting with the Selangor government to clear any doubts on the development of a project involving 2,198 acres in Kuala Selangor. The company said it will explain how the project meets the objectives of the authorities. Eco World president and CEO Datuk Chang Khim Wah said the agreement for the land purchase was still condi- tional. - StarBiz
JCorp to list second REIT: Johor Corp (JCorp) will list its second real estate investment trust (REIT) – Al-Salam REIT – on Tuesday, at a time when there is a lot of uncertainty in the capital markets and a marked slowdown in the property sector. - StarBiz
BILT sells Sabah Forest stake: India’s largest producer of writing and printing paper, Ballarpur Industries Ltd (BILT), is disposing of its indirectly-owned Malaysian subsidiary, Sabah Forest Industries Sdn Bhd, for US$500mil (RM2.2bil) to Pandawa Sakti Sdn Bhd. Proceeds from the sale will be used to retire the debts of BILT group of companies, news reports say. - StarBiz
Global Oriental rallies after mall sale plan: Shares in Global Oriental Bhd rallied following the company's planned sale of a shopping mall in Subang Jaya to Pavilion Real Estate Investment Trust (REIT) for RM488mil cash. It said the sale proceeds would be used to repay bank borrowings and for working capital. - StarBiz
Nomura sees CPO rising to RM2,300 in next three months: The price of crude palm oil (CPO), currently 12% down, is expected to recover gradually on expectations of lower production due to the dry weather condi- tions brought on by the El Nino weather phenomenon. Nomura Holdings Inc said in a report that prices, which hit a six-year low in August and trading at a wide discount to soybean oil, could start increasing gradually to RM2,300 per tonne over the next three months. - StarBiz
S. Korea's AmorePacific plans new outlets in Malaysia: AmorePacific Corp, a leading South Korean cosmetics firm, is forging ahead with the opening of new outlets in Malaysia at a time when most companies are scaling back and abandoning expansion plans due to the less than rosy economic outlook. - StarBiz
Poly Glass eyes markets abroad to offset domestic drop: Fibre glass wool maker Poly Glass Fibre (M) Bhd expects higher revenue from its Australia and New Zealand markets to help offset a potential drop in domestic sales as construction projects slow down. - Edge FD
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