Market wrap: US stocks closed sharply lower on Wednesday after hawkish comments from Janet Yellen boosted expectations of an interest rate hike, and oil dipped below US$40 a barrel. Investors also attributed late-day selling to news coverage of a shooting in southern California. - Reuters
The DJIA fell 158.67 points, or 0.89%, to 17,729.68, the S&P 500 lost 23.12 points, or 1.1%, to 2,079.51 and the Nasdaq dropped 33.08 points, or 0.64%, to 5,123.22.
Forex summary
*The ringgit gained 0.03% to 4.2315 per US$
*It fell 0.09% to 4.4939 per euro
*Up 0.36% to 6.3761 to the pound sterling
*0.02% lower to 3.0031 per Singapore dollar
*0.35% lower to 3.0969 per Aussie
*Flat at 3.4334 per 100 yen
Energy
Oil prices tumbled more than 4% on Wednesday as surging US stockpiles and a rallying dollar prompted traders to dump crude contracts amid signs the world's largest oil producers will not cut production when they meet this week. Brent LCOc1 settled down US$1.95, or 4.4%, at US$42.49 a barrel. It hit a session low of US$42.43, just 20 cents off from the 6-1/2-year low it struck in August. - Reuters
Top foreign stories
Fed's Yellen says 'looking forward' to day of first rate rise in decade: Federal Reserve chair Janet Yellen said on Wednesday she was "looking forward" to a US interest rate rise that will be seen as a testament to the economy's recovery from recession. Fed policymakers are widely seen raising interest rates for the first time in almost a decade at their next meeting on Dec 15-16, but they continue to parse data and trends carefully given the uneven nature of the US recovery. - Reuters
Private payrolls, compensation data point to sturdy jobs market: US private employers boosted hiring in November and wage growth appeared to pick up in the third quarter, signs of labour market strength that could support the first Federal Reserve interest rate increase in nearly a decade later this month. - Reuters
ECB to drive policy further into uncharted territory: Fighting stubbornly low inflation, the European Central Bank is expected to ease policy further on Thursday, delivering a cocktail of measures that could include a deposit rate cut and changes to its asset-buying program. Proposals under discussion range from mainstream moves like extending quantitative easing, to more extreme ideas, like a two-tier deposit rate that would punish banks parking too much cash with the central bank instead of lending the money to generate growth and thus inflation. - Reuters
Top local stories
Earnings expected to improve in Q4: After posting poor earnings during the third quarter, improving investor sentiment is expected to bode well for fourth-quarter earnings among Malaysia’s top companies. Research houses see a possible earnings recovery during fourth quarter, as the negatives had been factored in during the first three quarters of the year. - StarBiz
Malakoff CEO resigns: Malakoff Corp Bhd said its chief executive officer Datuk Seri Syed Faisal Albar Syed AR Albar has resigned, effective Dec 31. Syed Faisal, Malakoff said, stepped down “to pursue other career opportunities”. It said the board will “immediately look into succession planning of the CEO’s position”. - StarBiz
London-listed Polo Resources buys into Hibiscus: Hibiscus Petroleum Bhd
said Polo Resources Ltd, which is listed on the London Stock Exchange’s AIM market, will become its new substantial shareholder. Polo Resources is taking up 90 million new shares, 8.4% stake, in Hibiscus for US$5mil. - StarBiz
Glomac Q2 net profit 33% higher: Property developer Glomac Bhd’s net profit for its second quarter rose 33% to RM17.53mil on the back of higher contributions from ongoing development projects. Revenue increased to RM146.05mil from RM86.29mil a year earlier. - StarBiz
BCorp to increase Bland stake: Berjaya Corp Bhd (BCorp) is proposing to increase its stake in Berjaya Land Bhd (BLand) by buying an additional 12% equity interest from major shareholder Tan Sri Vincent Tan Chee Yioun and Penta Investment Advisers Ltd for RM419.11mil. - StarBiz
Naza TTDI to develop part of Kwasa Damansara with GDV of RM400mil: Naza TTDI Sdn Bhd will undertake a residential development on 12.7 acres in the iconic township of Kwasa Damansara which will have a gross development value (GDV) of RM400mil. - StarBiz
Modest slowdown in GDP growth seen: Citi Research expects Malaysia to experience a modest gross domestic product (GDP) growth slowdown to 4.6% in 2016 from 5% in 2015. “A regional slowdown could also weigh on manufacturing and services exports. Malaysia’s exports are expected to slow from 3.5% in 2015 to 3.3% in 2016,” the research house said in a report. - StarBiz
YTL corp to gain from hike in ERL prices: YTL Corp Bhd is expected to see a 4%-5% rise in its earnings per share for financial years 2017 and 2018 following the price hike of its 50%-owned associate Express Rail Link Sdn Bhd (ERL) transit services. - StarBiz
Eversendai to buy 70% stake in Thailand's S-Con: Eversendai Corp Bhd has proposed to acquire a 70% stake in Thailand's S-Con Engineering Co Ltd for 30 million baht (RM3.54mil).Eversendai said the acquisition would enable it to bid for steel, composite structures, power and petrochemical plant as well as infrastructure projects in Thailand and its surrounding regions. - StarBiz
PTP sets aside RM500mil for capex: MMC Corp Bhd’s unit Pelabuhan Tanjung Pelepas Sdn Bhd (PTP) has allocated RM500mil for capital expenditure (capex) for 2016 to purchase new equipment and refurbish facilities at the 15-year-old port. - StarBiz
Petrol One appoints special auditor: Petrol One Resources Bhd has appointed Moore Stephens Associates PLT to undertake a special audit in view of a disclaimer of opinion expressed by external auditors KPMG on the company’s financial statements for year ended June 30, 2015. - StarBiz
RHB Cap to spend 20% of capex budget on digital initiatives: RHB Capital Bhd is spending some 20% of its capex budget in 2016 to execute new digital initiatives. “Today 90% of our channels go through the digital platform and as such a significant spend will be on a new Internet mobile converge platform,” RHB Cap group chief operations officer Rohan Krishnalingam. - StarBiz
Maxis plans internal reorganisation: Maxis Bhd and its subsidiaries plan to implement an internal reorganisation which will result in the consolidation and integration of the businesses and undertakings of its wholly-owned operating subsidiaries under Maxis Broadband Sdn Bhd. - Bernama
China’s debt purchase to stabilise ringgit: China’s move to acquire Malaysian government debt is expected to boost foreign investors’ confidence in the country and stabilise the ringgit at between 4.25 and 4.30 to the US dollar, as the currency faces downward pressure from the potential interest rate hikes in the United States. - Edge FD
Scanwolf begins a new chapter: Scanwolf Corp Bhd, which was embroiled in a boardroom tussle between April and June, is about to embark on a new chapter, as major shareholders from the two camps seem to work together peacefully, Scanwolf management says. - Edge FD
AGMs/EGMs
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Time: 11.30am
Venue: St Jo's Chapel Hall, Gurney Paragon, Level 2,163 c-2-03, Persiaran Gurney, Penang
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