Market wrap: US stocks forfeited gains on Tuesday after a soccer match between Germany and the Netherlands was called off over fears of a bombing. All three major US indexes had ventured into positive territory following upbeat earnings reports from Wal-Mart and Home Depot. But they quickly relinquished those gains after the friendly match was cancelled less than two hours before its start due to indications of a planned attack with explosives at the stadium in Hanover. - Reuters
The DJIA ended up 0.04% at 17,489.5, and the S&P 500 lost 0.13% to 2,050.44 and the Nasdaq added 0.03% to finish at 4,986.02.
Forex summary
*The ringgit fell 0.15% to 4.3895 per US$
*It dropped 0.07% to 4.6691 per euro
*Down 0.53% to 6.6773 to the pound sterling
*0.11% lower to 3.0817 per Singapore dollar
*0.54% lower to 3.1192 per Aussie
*Down 0.14% to 3.5558 per 100 yen
Energy
Crude oil futures settled down more than 2% on Tuesday, resuming their slide after a one-day pause, on bets US inventories rose for an eight straight week. In post-settlement trade, oil pared losses after industry group American Petroleum Institute said US crude stockpiles fell last week by 482,000 barrels due to lower imports and higher refinery runs. Brent crude futures LCOc1 settled down 99 cents, or 2.2%, at US$43.57 a barrel. In post-settlement trade, it was 56 cents lower at US$44.00. - Reuters
Top foreign stories
Indian airlines fined RM170m: India’s competition regulator yesterday fined three domestic airlines a combined 2.57 billion rupees (RM170.41 million) for colluding to fix fuel surcharges for cargo transport. Jet Airways, IndiGo and SpiceJet were each hit with a penalty for “concerted action in fixing and revising fuel surcharges for transporting cargo”, the Competition Commission of India said. - AFP
Japan regulators mulling US$60m fine for Toshiba: Japan's securities watchdog is likely to recommend a fine of about 7.5 billion yen (US$60 million) for scandal-hit Toshiba Corp for cooking its books over the past seven years, the Nikkei business daily reported on Wednesday. Toshiba has set aside 8.4 billion yen for administrative penalties, meaning the impact on its earnings would be minimal, the Nikkei added. - Reuters
Wal-Mart earnings beat expectations: Wal-Mart Stores Inc reported slightly stronger-than-expected quarterly earnings on Tuesday as it booked its fifth straight gain in US same-store sales, sending its shares up more than 4%. Net profit attributable to the world's largest retailer fell to $3.304 billion, or $1.03 per share, in the third quarter. Analysts on average had expected 98 cents per share, according to Thomson Reuters I/B/E/S. - Reuters
Report: US pursuing criminal cases against RBS, JPMorgan executives: Federal prosecutors are pursuing criminal cases against executives from the Royal Bank of Scotland Group and JPMorgan Chase & Co for allegedly selling flawed mortgage securities, the Wall Street Journal reported on Tuesday, citing unnamed sources. - Reuters
Home Depot Q3 sales beat amid US housing recovery: Home Depot Inc on Tuesday reported a better-than-expected rise in quarterly sales at stores open at least a year and said full-year profit and same-store sales would be at the top end of its forecast. Same-store sales rose 5.1% in the third quarter, above the 4.6% rate expected by analysts polled by research firm Consensus Metrix. - Reuters
US inflation turning corner; factory output rises: US consumer prices increased in October after two straight months of declines as the cost of healthcare and other services rose, evidence of firming inflation that further supports views that the Federal Reserve will raise interest rates next month. A report from the Fed also showed manufacturing production increased 0.4% as the output of both long-lasting and nondurable goods rose. - Reuters
Top local stories
Battle for deposits: Local banks are chasing cheap deposits to balance out the loan-deposit ratio), with some offering fixed deposit rates as high as 4.5% per year for a 12-month tenure on a promotional basis. A survey by StarBiz on conventional and non-conventional banks showed the promotional rates offered were on average 100 basis points higher than the rates displayed on the boards. - StarBiz
Dialog Q1 earnings rise 20%: Dialog Group Bhd
’s net profit increased 20.37% to RM60.07mil for the first quarter from a year earlier, supported by better margins on the company’s international sales that are mostly denominated in US dollars. Earnings per share increased to 1.18 sen from 1.02 sen. Revenue for the quarter dropped 0.9% to RM536.37mil. - StarBiz
HLFG declares 13 sen dividend despite lower profit: Hong Leong Financial Group Bhd (HLFG) declared a first interim dividend of 13 sen per share after posting a lower net profit of RM386.9mil in the first quarter ended Sept 30. The financial group recorded a pre-tax profit of RM697mil for the quarter compared with RM747mil a year earlier. Revenue was higher at RM1.14bil during the quarter against the RM1.08bil previously. - StarBiz
Red Sena targets IRR of 9% QA: Special purpose acquisition company (SPAC) Red Sena Bhd is targeting a min-imum internal rate of return (IRR) of 9% for its qualifying asset (QA), which it described as a reasonable level in the food and beverage industry. Red Sena chief strategy officer Datuk Tan Ang Meng said that F&B business was resilient and hence demanded a lower risk. - StarBiz
Celcom ups the ante with new postpaid plans: Competition among telecom- munication service providers has been raised a notch with Celcom Axiata Bhd’s launch of FiRST Blue and FiRST Gold postpaid plans, which offer free Internet during the weekends. The wholly-owned unit of Axiata Bhd hopes to double postpaid activation with the new plans. - StarBiz
AirAsia taps banks for US dollar funding programme: AirAsia Bhd has hired lenders Barclays Plc, CIMB Group Holdings Bhd and RHB Capital Bhd to arrange financing through a US dollar medium-term note programme, IFR reported. A medium-term bond programme will give AirAsia more flexibility when raising funds in the G3 markets – the United States, European Union and Japan, IFR said. - Reuters
Optimistic views on IOI: There may be some optimism going forward for plantation giant IOI Corp Bhd despite the headwinds from weak crude palm oil prices and volatile ringgit. However, the market may not be ready for a “buy” call on the stock yet, with most analysts still maintaining their “hold” or “reduced” calls. - StarBiz
Asean GDP expected to reach RM18.39 trillion by 2020: With the imminent establishment of the Asean Economic Community (AEC) by year-end, the region’s economic growth as measured by gross domestic product (GDP) is forecast to reach US$4.7 trillion (RM18.39 trillion) by 2020. International Trade and Industry Deputy Minister Datuk Lee Chee Leong said Asean is now the seventh largest economy in the world with a combined GDP estimated at US$2.4 trillion. - StarBiz
Mah Sing taking up RM500mil interest-free financing: Property developer Mah Sing Group Bhd is taking up to RM500mil of interest-free financing from Stone Master Corp Bhd. Mah Sing said the agreement gave it the option of tapping into various premium products offered by a reputable vendor while enjoying cost savings from the extended credit term with no interest cost. - StarBiz
Matrix Concepts posts RM31mil Q3 profit: Matrix Concepts Holdings Bhd posted a 31.06% drop in net profit to RM31.08mil for the third quarter from a year earlier on slower property sales. Revenue fell 18.44% to RM121.36mil. - StarBiz
Southern section identified for reclamation: More than 1,500 acres (607ha) of sea land off Permatang Damar Laut near Bayan Lepas have been identified for the proposed reclamation that forms part of the land-swap deal with SRS Consortium, the project delivery partner, for the RM27 billion Penang Transport Master Plan. - Edge FD
MACC probe found no offence, says Ta Ann: Ta Ann Holdings Bhd said the Malaysian Anti-Corruption Commission (MACC) has confirmed that its checking found no evidence to show that Ta Ann and its group of companies were involved in any illegal logging activities under the Malaysian Anti-Corruption Act 2009. - Edge FD
Hassan Marican receives 2015 Lifetime Achievement Award: Tan Sri Hassan Marican, former president and chief executive officer of national oil company Petroliam Nasional Bhd (Petronas), has been named recipient of the Oil & Gas Council’s 2015 Lifetime Achievement Award. - Edge FD
MPI’s 1Q net profit surges 136%, pays eight sen dividend: Malaysian Pacific Industries Bhd’s (MPI) net profit rose 136% to RM46.92 million in the first quarter, largely due to the strengthening of the US dollar against the ringgit, and lower material costs due to lower commodity prices. It also announced an interim dividend of eight sen per share for the financial year ending June 30, 2016. Its revenue rose 18% to RM386.65 million during the quarter. - Edge FD
Dutch Lady posts strong 3Q results, declares RM1.10 dividend: Dutch Lady Milk Industries Bhd saw its net profit for the third quarter surge 74.8% to RM49.95 million, thanks to favourable raw material purchases and positive foreign currency hedging effects. Its revenue came in 6.3% higher at RM255.58 million, mainly due to the relaunch of the Dutch Lady Children Formula milk, - Edge FD
AGMs/EGMs
Padini Holdings Berhad
Time: 10am
Venue: No 19 Jalan Jurunilai U1/20, Hicom Glenmarie Industrial Park, Shah Alam
ES Ceramics Technology Bhd
Time: 10am
Venue: Hotel Armada Petaling Jaya, Lot 6, Lorong Utara C, Section 52 , PJ
Hunza Propeties Berhad
Time: 11:30am
Venue: St. Jo's Chapell Hall, Gurney Paragon, Persiaran Gurney, Penang
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