Market wrap: US stock indexes closed slightly lower in a quiet trading day on Wall Street after last week's strong gains, while a big healthcare deal failed to impress investors on Monday. Pfizer's announcement of what is expected to be the biggest-ever healthcare deal pushed its shares down 2.6% making it one of the biggest drags on the S&P. - Reuters
The DJIA fell 31.13 points, or 0.17%, to 17,792.68, the S&P 500 lost 2.58 points, or 0.12%, to 2,086.59 and the Nasdaq dropped 2.44 points, or 0.05%, to 5,102.48.
Forex summary
*The ringgit gained 0.28% to 4.2900 per US$
*It rose 0.26% to 4.5622 per euro
*Up 0.45% to 6.4888 to the pound sterling
*0.21% higher to 3.0252 per Singapore dollar
*0.08% higher to 3.0836 per Aussie
*Up 0.35% to 3.4907 per 100 yen
Energy
Brent settled steady and US crude slightly lower on Monday after prices were whipsawed by volatility as Saudi Arabia pledged to work toward oil price stability but traders worried about a global supply glut and signs of rising US stockpiles. Brent futures LCOc1 settled up 17 cents at US$44.83 a barrel. - Reuters
Top foreign stories
Pfizer to buy Allergan in US$160b deal: Pfizer Inc on Monday said it would buy Botox maker Allergan Plc in a deal worth US$160 billion to slash its US tax bill, rekindling a fierce political debate over the financial maneuver. The acquisition, which would create the world's largest drugmaker and shift Pfizer's headquarters to Ireland, would also be the biggest-ever instance of a US company re-incorporating overseas to lower its taxes. - Reuters
Fed's Yellen argues for interest rate caution in exchange with Nader: Federal Reserve chair Janet Yellen on Monday argued for a cautious approach to the pace of interest rises in an unusual exchange with US consumer advocate Ralph Nader. In a letter to Nader, the Fed chair repeated recent statements that the central bank should only gradually raise interest rates. "An overly aggressive increase in rates ... would at undercut the economic expansion, necessitating a lasting return to low interest rates," Yellen said in the letter. - Reuters
Four nations risk breaking EU budget rules in 2016: Eurozone finance ministers warned Italy, Spain, Austria and Lithuania on Monday against breaking EU fiscal rules with their draft budgets for 2016, endorsing an assessment last week by the EU executive. - Reuters
Top local stories
1MDB exits power business: 1Malaysia Development Bhd (1MDB) is exiting the power business after agreeing to sell its entire energy assets to China General Nuclear Power Corp (CGN Group) for RM9.83bil cash. CGN Group will also assume Edra Global Energy Bhd’s relevant gross debt and cash based on a valuation date as at March 31, 2015. The deal is expected to be completed in February, the companies said in a joint statement on Monday. - StarBiz
China buying Malaysian bonds: China has given an undertaking to buy Malaysian government bonds and will also be providing a 50 billion yuan (RM33bil) quota for local institu- tional funds to purchase equities and bonds directly in the world’s second largest economy. - StarBiz
Nod for Silk Road bond: China Construction Bank (Asia) Corp Ltd has received Bursa Malaysia approval to list the world’s first-ever 21st Century Maritime Silk Road bond worth one billion yuan (RM670mil) on the local bourse. The notes due in 2017 will be the first yuan-denominated bonds issued by a China state-owned bank to be listed on Bursa under the exempt regime. - StarBiz
AmBank Group fined RM53.7mil by Bank Negara: AMMB Holdings Bhd
(AmBank Group) has been slapped with a RM53.7mil fine by Bank Negara. According to a filing, the penalty has come about as a result of a breach of certain regulations under Sect 234 of the Financial Services Act 2013 and Sect 245 of the Islamic Financial Services Act 2013 by AmBank (M) Bhd and AmBank Islamic Bhd, respectively. - StarBiz
EPF to buy Jimah sukuk: The Employees Provident Fund (EPF) will subscribe up to RM5.25bil for the institutional portion of a RM8.98bil sukuk murabahah programme by Tenaga Nasional Bhd’s (TNB) subsidiary Jimah East Power Sdn Bhd, according to a source familiar with the matter. - StarBiz
Aabar not subscribing to RHB Cap rights issue: In a move that does not come as a surprise, Aabar Investments PJS, the owner of 21.09% of RHB Capital Bhd’s (RHB Cap) shares, has not given its under- taking to subscribe to its portion of the latter’s rights issue. - StarBiz
Sime unit: CPO prices will go up next year: Sime Darby Plantations Sdn Bhd, a unit of conglomerate Sime Darby Bhd, sees palm oil prices rising next year as the El Nino phenomenon curbs production growth in key growing areas. - StarBiz
1MDB RE: Bandar Malaysia deal by year-end: 1MDB Real Estate Sdn Bhd (1MDB RE) expects to execute the definitive agreement with a partner for the development of Bandar Malaysia project by the end of the year. It has shortlisted two potential candidates for the sale of a 60% stake in Bandar Malaysia Sdn Bhd. - StarBiz
Petronas Chemicals awards RM2bil job: Petronas Chemicals Group Bhd has awarded a RM2bil engineering, procurement, construction and commissioning contract within the Rapid petrochemical project to a consortium. The consortium consists of four companies from Italy, China and Malaysia. - StarBiz
UEM-Samsung JV gets Menara Wawasan job: Permodalan Nasional Bhd (PNB) has awarded the contract to build Menara Wawasan, or also known as Menara KL118, to the joint venture of South Korea’s Samsung C&T and UEM Group Bhd. PNB president and group chief executive Tan Sri Hamad Kama Piah Che Othman said the contract is worth about RM3.4bil. - StarBiz
UOA Dev net profit up on higher property sales: UOA Development Bhd’s net profit for its third quarter jumped 54% to RM158.5mil on higher sales from its property projects. Revenue for the period rose 41% to RM492.2mil. - StarBiz
S. Korea consortium to bid for rail job: State-owned Korea Rail Network Authority is leading a consortium of 50 enterprises and is currently in discussion with a few potential local partners to bid for the RM40bil Kuala Lumpur- Singapore high speed rail project. - StarBiz
Aberdeen adding to Malaysian holdings: Aberdeen Asset Management Plc says it’s adding to holdings of Malaysia’s bonds and currency as a selloff in Asia’s worst-performing emerging market was overdone. In recent months, Aberdeen has been moving from being underweight Malaysia, said Kenneth Akintewe, a Singapore-based senior investment manager at the company, which oversees US$483bil. - StarBiz
Perisai 3Q profit jumps to RM9.6m: Perisai Petroleum Teknologi Bhd saw its net profit surge 4.3 times year-on- year to RM9.63 million on higher contributions from its joint ventures marine segment, and a higher foreign exchange gain. Revenue was 9.9% higher at RM49.14 million. - Edge FD
Mail and retail segments drag down Pos Malaysia’s 2Q net profit: Pos Malaysia Bhd’s net profit plunged 89.8% in net profit to RM3.48 million for its second financial quarter on lower profits from the mail and retail segments, caused by higher transportation costs for the transhipment business and recognition of expired postal order. Its revenue came in 7.3% higher at RM398.8 million. - Edge FD
Tiger Synergy eyes profitability by FY16: Tiger Synergy Bhd, which slipped into the red last financial year ended June 30, 2015 due to administration costs and pending the launch of new projects, will launch three new projects with a combined gross development value of RM500 million next year, to turn itself around and start gaining traction again. - Edge FD
Lion Corp’s Q1 net loss doubles: Lion Corp Bhd saw its net loss doubling to RM176 million in the first quarter as revenue shrank, and foreign exchange losses came in higher. Revenue shrank 43.7% to RM340.6 million. - Edge FD
Malakoff posts better Q3 net profit: Malakoff Corp Bhd’s net profit jumped 44.3% to RM156.02 million for the third quarter due to lower losses recorded by its associate Kapar Energy Ventures Sdn Bhd and lower finance costs following the redemption of its sukuk from its initial public offering proceeds. Revenue fell 9.2% to RM1.28 billion due to lower capacity factor registered by its gas- and coal-fired power plants and the scheduled outages taken by certain plants as part of its maintenance requirement. - Edge FD
Sunway Construction bags RM106.75m job from Cititower: Sunway Construction Group Bhd has bagged a RM106.75 million contract from a joint venture be- tween KLCC (Holdings) Sdn Bhd and QD Asia Pasific Ltd to unde take substructure and associated works for a proposed mixed commercial development at Lot 176, Persiaran KLCC in the Kuala Lumpur City Centre. - Edge FD
Biosis files injunction to stop Bursa from delisting its shares: Biosis Group Bhd has filed an injunction application at the Kuala Lumpur High Court to restrain Bursa Securities from delisting its securities from the local exchange on Monday. Last Wednesday, the regulator dismissed the company's appeal against the rejection of its proposed regularisation plan and delisting from the Main Market. - Edge FD
Ni Hsin’s plan to diversify put on hold: Stainless steel cookware manufacturer Ni Hsin Resources Bhd is putting its diversification plans on the back burner after aborting a plan to buy loss-making Helios Photovoltaic Sdn Bhd. The purchase of Helios would have paved the way for Ni Hsin to diversify into the solar energy industry. - Edge FD
AGMs/EGMs
Parkson Holdings Bhd
Time: 9am
Venue: Level 16, Lion Office Tower, No 1 Jalan Nagasari, Kuala Lumpur
YTL Land & Development Bhd
Time: 11am
Venue: JW Marriot Hotel Kuala Lumpur, 183 Jalan Bukit Bintang
Lion Diversified Holdings Bhd
Time: 2.30pm
Venue: Level 16, Lion Office Tower, No.1 Jalan Nagasari, Kuala Lumpur
YTL Power International Bhd
Time: 2.30pm
Venue: JW Marriot Hotel Kuala Lumpur, 183 Jalan Bukit Bintang
YTL Corporation Bhd
Time: 4pm
Venue: JW Marriot Hotel Kuala Lumpur,183 Jalan Bukit Bintang
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