Market wrap: The S&P 500 closed at its highest in two months on Thursday as stronger-than-expected earnings from several top companies, including McDonald's, relieved investors' concerns about the profit outlook. - Reuters
The DJIA rose 320.55 points, or 1.87%, to 17,489.16, the S&P 500 gained 33.57 points, or 1.66%, to 2,052.51 and the Nasdaq added 79.93 points, or 1.65%, to 4,920.05.
Forex summary
*The ringgit rises 0.61% to 4.2575 per US$
*It rises 2.64% to 4.7185 per euro
*Up 1.35% to 6.5404 to the pound sterling
*0.77% higher to 3.0534 per Singapore dollar
*0.95% up to 3.0652 per Aussie
*Up 0.77% to 3.5223 per 100 yen
Energy
Crude oil inched higher on Thursday as gains prompted by a rally in gasoline and technical charts calling for higher prices were capped by worries about high US crude inventories. A surge in Wall Street share prices also lent support to oil despite pressure exerted by the dollar's rise to a three-week high. Brent crude settled up 23 cents, or 0.5%, at US$48.08 a barrel. The global crude benchmark was up nearly 2% earlier in the day. - Reuters
Top foreign stories
Alphabet, formerly Google, sets share buyback: Alphabet Inc, the new holding company for Google, introduced its first share buyback and beat Wall Street's profit forecast on Thursday, helped by solid progress in mobile and video advertising, sending the stock to its highest-ever level in after-hours trading. Third-quarter revenue rose 13% to US$18.68 billion. Excluding one-time items, the company earned US$7.35 per share, up 17.6% from the year before. - Reuters
US housing, jobs data point to fairly strong economy: US home resales rebounded strongly in September and new applications for unemployment benefits hovered around 42-year lows last week, pointing at solid domestic fundamentals even as the global economy falters. Thursday's upbeat housing and labour market reports could keep the door open to an interest rate hike from the Federal Reserve by the end of the year. - Reuters
Valeant vows to refute 'phantom sales' allegations: Valeant Pharmaceuticals International Inc moved to reassure investors on Thursday after being accused of using specialty pharmacies to inflate revenue, and said it would refute them in detail on a conference call with investors. Valeant said at least 10 of its executives and board members would participate in a call on Monday, including chief executive Michael Pearson, its current and former chief financial officers, and board member Robert Hale, who represents key shareholder ValueAct Capital. - Reuters
McDonald's stock hits record high as turnaround takes hold: McDonald's Corp shares hit an all-time high on Thursday after chief executive Steve Easterbrook said a rebound in quarterly restaurant sales showed that his turnaround plan is starting to work. Global sales at established restaurants were up a much better-than-expected 4% in the third quarter, ending six straight quarters of flat or falling results. Easterbrook said the trend would continue in the current quarter. - Reuters
Cloud services bolster Microsoft results: Microsoft Corp reported better-than-expected quarterly adjusted revenue for the ninth quarter in a row, boosted by burgeoning demand for its cloud products. Revenue from Microsoft's cloud business rose 8% percent to US$5.9 billion and is expected to reach US$6.2 billion to US$6.3 billion in the current quarter. The company's net income rose to US$4.62 billion, or 57 cents per share, in the quarter, from US$4.54 billion, or 54 cents per share, a year earlier. - Reuters
Australia flags concerns on US$35b Halliburton bid for Baker Hughes: Australia's competition watchdog on Friday raised concerns about Halliburton Co's proposed US$35 billion takeover of rival Baker Hughes Inc, saying it was likely to hurt competition in a number of oilfield goods and services markets. - Reuters
Top local stories
Singapore's SATS offers to buy into Brahim's unit of food caterer: Brahim’s Holdings Bhd has received a shot in the arm following interest from Singaporean company SATS Ltd, which has offered to acquire its 49% stake in Brahim’s Airline Catering Holdings Sdn Bhd (BACH). SATS on Thursday made an offer of RM218mil for the stake in BACH which holds the rights to supply food to MAS and other airlines operating out of KL International Airport. - StarBiz
Public Bank Q3 net profit at RM1.2bil: Public Bank Bhd
posted a 13.66% rise in revenue for the third quarter to RM4.9bil compared with the same quarter a year ago on growth in loans and deposits as well as non-interest income. Net profit for the quarter increased marginally to RM1.2bil compared with a year ago. - StarBiz
Nestle earnings up 19% in third quarter: Nestle (M) Bhd recorded a 19.4% year-on-year gain in net profit to RM179.16mil for the third quarter on higher revenue and favourable trends in most raw materials, as well as diligent cost management throughout the value chain. Revenue for the period grew 5.3% to RM1.22bil, supported by growth in the company’s domestic and export businesses. - StarBiz
US firm shutting a plant in Penang: US-based Amphenol Corp is closing one of its manufacturing facilities in Penang, following the group’s decision to relocate its mobile devices and mobile networks operations on the island to China. Sources said the group made the decision to shift to China following its business strategy to consolidate its mobile consumer products division in Asia-Pacific. - StarBiz
Red Sena on track for listing by Dec 15: Red Sena Bhd, a special purpose acquisition company (SPAC) focusing on the food and beverage industry, is on-track for listing by Dec 15. Maybank Trustees Bhd is the custodian and will hold 92% of the gross IPO proceeds in trust. - StarBiz
Upward re-rating for TNB if it loses Edra bid: Tenaga Nasional Bhd (TNB) will enjoy an upward re-rating if it loses the bid to buy the assets of 1Malaysia Development Bhd’s (1MDB) power unit, as the market will immediately lower the risk premium attached to TNB’s valuation, according to CIMB Research. Conversely, TNB’s share price would suffer a “knee-jerk reaction” if the utility giant won the bid to buy the assets of Edra Global Energy Bhd, the research house said. - StarBiz
Air Selangor to buy Abass for RM78mil: Selangor, via Pengurusan Air Selangor Sdn Bhd, has signed a deal to buy another of the state’s water concessionaires, Konsortium Abass Sdn Bhd, for RM78.054mil. It is buying Kumpulan Perangsang Selangor Bhd’s 90.83% equity interest in Titisan Modal (M) Sdn Bhd, which wholly owns Konsortium Abass. - StarBiz
Maybank CEO says AEC may not meet December deadline: The Asean Economic Community (AEC) may not meet its deadline for full integration by December this year as obstacles in doing cross-border business are still prevalent in the region, said Malayan Banking Bhd chief executive officer Datuk Abdul Farid Alias. - StarBiz
MNC Wireless eyes Petronas digital projects: MNC Wireless Bhd is eyeing Petroliam Nasional Bhd’s (Petronas) digital work projects via its new tie-up with Petrowangsa Sdn Bhd. The digital marketing technology solutions provider on Thursday inked a memorandum of understanding with Petrowangsa, an approved Petronas licence holder that supplies safety equipment in the oil and gas industry. It also holds a licence in media advertising. - StarBiz
Third PPA extension will be granted, says Ongkili: A third power purchase agreement (PPA) extension will be granted to an independent power producer (IPP) once “technical matters” in relation to the award are ironed out, said Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili. He did not name the IPP, though speculation was rife earlier this month that Malakoff Corp Bhd would be one of the IPPs that would get extensions on their PPAs from the Energy Commission. - Edge FD
Milux’s maiden Pahang property venture worth RM2.13b: Milux Corp Bhd said on Thursday its maiden property development in Pahang has been revised to five condominium blocks with retail and club facilities, instead of the six blocks that were originally planned. The home appliance maker said the estimated gross development value of the project is RM2.13 billion, while its gross development cost is estimated at RM1.05 billion. - Edge FD
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