Market wrap: US stocks closed lower on Wednesday in a choppy session as oil resumed its decline, fuelling investor worries about global economic growth and causing the S&P 500 index to track the move in the commodity. - Reuters
The DJIA fell 75.7 points, or 0.43%, to 17,492.3, the S&P 500 lost 15.97 points, or 0.77%, to 2,047.62 and the Nasdaq dropped 75.38 points, or 1.48%, to 5,022.87.
Forex summary
*The ringgit gained 0.31% to 4.2572 per US$
*It rose 0.44% to 4.6834 per euro
*Down 0.52% to 6.4559 to the pound sterling
*0.22% higher to 3.0292 per Singapore dollar
*1.0% lower to 3.1036 per Aussie
*Up 0.72% to 3.4913 per 100 yen
Energy
Oil prices fell for a fourth day in a row on Wednesday after the market ignored an unexpected drawdown in US crude stockpiles to focus on a build in distillates, including diesel, that came in twice as large than expected. Brent crude settled down 15 cents at US$40.11 a barrel, after hitting a near seven-year low at US$39.57. The benchmark has lost US$3.73, or 8.5%, since Thursday, after an Opec meeting on Friday virtually abandoned price support measures for oil. - Reuters
Top foreign stories
Any DuPont, Dow Chemical marriage could reignite European deals: A potential $130 billion merger of Dow Chemical Co and DuPont could prompt a renewed flurry of takeover bids for European rivals with Switzerland's Syngenta AG the most likely target. - Reuters
Fiat Chrysler to pay US$70m auto safety fine: Fiat Chrysler Automobiles NV has agreed to pay US$70 million in fines to resolve a US investigation that it failed to disclose vehicle crash death and injury reports, sources said on Wednesday. Fiat Chrysler in September acknowledged it had failed to disclose an unspecified number of reports that are required to be submitted to regulators under a 2000 law. - Reuters
Yahoo reverses course on plan to spin off Alibaba stake: Yahoo Inc shelved plans to spin off its stake in Chinese e-commerce giant Alibaba Group Holding Ltd on Wednesday, under pressure from activist investors worried about billions of dollars in taxes, and said instead it is looking at creating a separate company to hold the rest of its assets. - Reuters
Top local stories
Fiscal deficit challenge: Malaysia’s target of having a fiscal deficit of 3.1% would be challenging and a possible revision to Budget 2016 may be made should oil prices continue to hover at current levels of about US$40 per barrel, according to economists. The concerns arose as the Government had assumed Brent crude to be at US$48 per barrel when it unveiled Budget 2016, while the Brent’s current price of US$40.75.
Country Heights to revamp Palace of Golden Horses: Country Heights Holdings Bhd
has entered into a joint venture agreement with Galaxus Corp Sdn Bhd and Tan Sri Lee Kim Tiong @ Lee Kim Yew to revamp the management and business of the Palace of Golden Horses in Seri Kembangan. The joint venture will be done through newly incorporated Stallion Management Sdn Bhd. - StarBiz
MWE asks for a month’s extension on takeover: MWE Holdings Bhd’s non-interested directors have requested for a further one month to deliberate on the RM391.4mil takeover offer from director Tan Sri Surin Upatkoon via his investment vehicle Pinjaya Sdn Bhd. - StarBiz
SP Setia on track to hit RM4b sales target: Property developer SP Setia Bhd is confident of hitting its sales target of RM4bil for the financial year in spite of the slowdown in the economy. “As it is, unbilled sales stand at RM9.5bil as many of our projects are sold out, but because the buildings have yet to be completed, the sales are not recognised as yet,” acting president and chief executive officer Datuk Khor Chap Jen said. - StarBiz
Berjaya Food posts net profit of RM6.2mil: Berjaya Food Bhd reported a 96.21% fall in its net profit for its second quarter, attributed to a re-measurement gain of RM158.60mil in the same quarter a year ago. It reported a net profit of RM6.2mil for the quarter. Revenue jumped 79.8% to RM135.42mil. - StarBiz
Inflows into domestic debt market to continue: Nomura Research expects inflows into the Malaysian debt market to be sustained, although at a subdued pace in the coming months. Inflows continued in November, but at a slower pace compared with October (RM3.9bil against RM7.7bil). - StarBiz
Transocean executive director resigns: The executive director of Transocean Holdings Bhd, who has claimed trial to charges of insider trading, has resigned from his post. The company announced the resignation of Tan Swee Hock, 62, in a filing with Bursa Malaysia. - StarBiz
Sanichi forms alliance with Protev of Germany: Automotive plastics mould fabricator Sanichi Technology Bhd has formed an alliance with Protev International Gbmh of Germany to clinch more automotive industry business from Europe and North America. - StarBiz
DNeX hopes to double revenue in one year: Dagang Nexchange Bhd (DNeX) hopes to double its revenue for the next financial year ending Dec 31, 2016 following a two-year restructuring and as it embarks on new business ventures. Its revenue was RM86.8 million for the full-year 2014. DNeX group’s managing diector Zainal Abidin Jalil expects the group’s venture into the oil and gas industry two years ago to bear fruit in 2016. - Edge FD
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