Market wrap: US stocks edged lower on Wednesday, retracing recent gains along with energy shares, while comments by Federal Reserve chair Janet Yellen pointing to a possible interest rate hike in December added to investor caution. - Reuters
The DJIA fell 50.57 points, or 0.28%, to 17,867.58; the S&P 500 lost 7.48 points, or 0.35%, to 2,102.31; and the Nasdaq dropped 2.65 points, or 0.05%, to 5,142.48.
Forex summary
*The ringgit lost 0.54% to 4.2880 per US$
*It fell 0.01% to 4.6594 per euro
*Down 0.27% to 6.5954 to the pound sterling
*0.23% down to 3.0568 per Singapore dollar
*0.12% higher to 3.0615 per Aussie
*Down 0.59% to 3.5295 per 100 yen
Energy
Crude oil futures fell 4% on Wednesday, wiping out gains from the previous day's rally, as a strong dollar, tumbling gasoline prices and rising US crude inventories bore down on the market. Adding to bearish sentiment was an internal Opec document that showed weaker demand in the next few years for oil from the producer group, even as Saudi Arabia pumped near record levels to protect its market share. Brent crude futures settled down US$1.96, or 3.9%, at US$48.58 a barrel. It had risen US$1.75 on Tuesday. - Reuters
Top foreign stories
Facebook revenue, profit beat forecasts: Facebook Inc posted a surprisingly strong 40.5% jump in quarterly revenue as new advertising services and its mobile app boosted ad sales at the world's largest social network. Revenue jumped to US$4.50 billion in the third quarter ended Sept. 30, from US$3.20 billion a year earlier. Analysts had expected revenue of US$4.37 billion, according to Thomson Reuters I/B/E/S. The stock rose about 5% to an all-time high of US$109.34 in extended trading on Wednesday, before paring gains to about 2%. - Reuters
China woes hurt chipmaker Qualcomm's profit forecast: Qualcomm Inc forecast first-quarter profit way below analysts' expectations as the chipmaker struggles against fierce competition from Chinese and Taiwanese rivals, and faces delays in closing new licensing agreements in China. Qualcomm forecast a profit of 80-90 cents per share for the current quarter, well below the average analyst estimate of US$1.08, according to Thomson Reuters I/B/E/S. - Reuters
Fed's Yellen sees possible December rate rise, gradual hiking path: Federal Reserve chair Janet Yellen on Wednesday pointed to a possible December interest rate "liftoff" but said rates would rise only slowly from then on to nurture the US economic recovery. In her first public comments since the Fed's meeting last week Yellen laid out what now appears the base case at the US central bank - that low unemployment, continued growth and faith in a coming return of inflation means the country is ready for higher interest rates. - Reuters
US service sector growth accelerates in October: The US services sector grew at a faster clip in October as employment, new orders and business activity expanded, while prices contracted for a second month, according to an industry report released on Wednesday. The Institute for Supply Management said its non-manufacturing index rose to 59.1 last month from 56.9 in September. The reading came above economists' forecasts for 56.5, according to a Reuters survey. - Reuters
Top local stories
AirAsia clears the air: After weeks of speculation, AirAsia Bhd has finally cleared the air on the state of its privatisation. The low-cost carrier said its major shareholders were looking at “strategic options” on investments but had not reached any decision at this stage yet. - StarBiz
SapKen to start gas production from own field in 2017: SapuraKencana Petroleum Bhd (SapKen) is targeting to start commercial gas production from its own field off the coast of Sarawak in late-2017 after having secured the field development plan approval from Petroliam Nasional Bhd (Petronas). The portion to be developed is the SK310 B15 gas field and is part of a production sharing contract under Petronas. - StarBiz
Plenitude maintains sales target: Developer Plenitude Bhd
, which recently completed a merger with The Nomad Group Bhd, is keeping its sales target at RM250mil for 2016 despite softening demand in the property market. The group has lined up RM1bil worth of new properties to be launched over the next two years. - StarBiz
ECM Libra fixes cash component of distribution at RM177.7mil: ECM Libra Financial Group Bhd, which is undertaking a distribution exercise in cash and kind to its entitled shareholders of up to RM320.10mil, has fixed the cash component at RM177.69mil. The financial and corporate advisory services provider said the cash distribution was equivalent to 62 sen per ECM Libra share. - StarBiz
TNB puts in lowest bid for Edra: Tenaga Nasional Bhd (TNB) has put in the lowest bid for the equity of 1Malaysia Development Bhd’s (1MDB) energy arm Edra Global Energy Bhd at slightly above RM8 billion, according to sources. TNB’s bid is understood to be about 20% lower than the closest competing bid from a foreign consortium of China’s state-owned company China General Nuclear Power Corp Ltd (CGNPC) and Qatar’s Nebras Power QSC, the sources said. - Edge FD
Petronas hits first oil and gas in Indonesian fields: Petroliam Nasional Bhd (Petronas), which ventured into Indonesia’s oil and gas (O&G) industry in 2000, has achieved first O&G for the Bukit Tua field and first gas for the Kepodang field, two of its largest operated upstream projects in the country. - StarBiz
Govt coffers get a boost: The hike in the excise duty on tobacco products in Malaysia is expected to help alleviate pressure on the Government’s revenue amid the current weak oil price environment. At least one economist expects the excise duty collection from the tobacco, cigarettes and cigars segment to increase by up to RM400mil next year. - StarBiz
F&N looks at new markets to beef up exports: Fraser & Neave Holdings Bhd (F&N) intends to ramp up exports by expanding into new markets, in particular the Middle East and Africa. Chief executive officer Lim Yew Hoe said the company wanted to grow its exports to RM500mil within the next five years, which should account for around 10% of revenue. - StarBiz
Malaysia in good position to profit from East and West: Malaysia is uniquely positioned as a country which has the necessary assets to attract investments from both the East and the West. Founder and patron of the World Chinese Economic Forum (WCEF) Tan Sri Lee Kim Yew said the country’s multi-culture, multi-lingual and multi-religious make-up made it easy for overseas investors to do business here. - StarBiz
MISC warns continued low oil price hurting its heavy engineering ops: MISC Bhd has warned that a prolonged weakness in the price of oil is hurting its heavy engineering business, but steady income from long-term charter contracts will keep it afloat. The company on Wednesday posted a net profit of RM483.6mil in the third quarter, up from RM470.8mil a year earlier. Its revenue increased 14.9% to RM2.505bil. - StarBiz
Investors wary of Asean banks’ outlook: Investors are keeping a wary eye on Asean banks, as slowing economic growth caps demand for new loans and increases the risk of more debts going sour. But that, however, doesn’t mean investors are giving the banks a miss, according to Nomura Research. - StarBiz
Philip Morris, JTI say price stays put: Tobacco manufacturers Philip Morris (M) Sdn Bhd (PMI) and JT International Tobacco Sdn Bhd (JTI) are holding out on raising prices of their cigarettes, at least for now. - Edge FD
Kong resigns as Tropicana MD: Tropicana Corp Bhd announced that Datuk Kong Woon Jun has resigned as the group’s managing director effective Dec 5 this year, but did not name any successor.
In a filing with Bursa Malaysia on Thursday, the property developer said Kong, 52, resigned as he wanted to pursue other career opportunities. - Edge FD
Parkson to introduce LOL clothing outlets: Parkson Holdings Bhd has tied up with private firm Superb Apparel Supply Sdn Bhd to establish new concept stores under the brand name LOL that will sell affordable fashion apparel. It told Bursa Malaysia Parkson Corp Sdn Bhd, the wholly-owned unit of its 67.61%-owned Singapore-listed unit Parkson Retail Asia Ltd, inked a shareholders’ agreement with Superb Apparel for the 70:30 joint venture on Thursday. - Edge FD
AmProp’s 2Q profit jumps 131% on overseas contribution: Amcorp Properties Bhd’s (AmProp) net profit jumped over two times or 130.58% to RM16.48 million in the second quarter, mainly from its overseas properties division. Revenue came in 7.41% lower at RM41.11 million from RM44.4 million before. - Edge FD
Limited time offer:
Just RM5 per month.
