Breakfast briefing: Tuesday, December 29


  • Business
  • Tuesday, 29 Dec 2015

Market wrap: Wall Street fell on Monday, hurt by a steep drop oil prices as well as a dip in Apple shares, pushing the S&P 500 back into negative territory for 2015. - Reuters

The DJIA ended down 0.14% at 17,528.47, the S&P 500 lost 0.22% to 2,056.51 and the Nasdaq fell 0.15% to 5,040.99.

Forex summary

*The ringgit gained 0.11% to 4.2937 per US$

*It rose 0.03% to 4.7143 per euro

*Up 0.30% to 6.3940 to the pound sterling

*0.14% higher to 3.0511 per Singapore dollar

*0.07% higher to 3.1173 per Aussie

*Down 0.03% to 3.5712 per 100 yen

Energy

Oil fell more than 3% on Monday, with global benchmark Brent back near 11-year lows as last week's short-covering dried up and players worried that crude prices had more room to swoon in the new year. Brent settled down US$1.27 at US$36.62 a barrel, after falling to a session low of US$36.52. It hit US$35.98 on Tuesday, its lowest since 2004. - Reuters

Top foreign stories

US holiday retail sales grow a 'solid' 7.9%: Strong online sales and demand for furniture and women's apparel helped US retail sales grow by a "solid" 7.9% this holiday season, according to MasterCard Advisors SpendingPulse. - Reuters

Toshiba seeks more funds for restructuring: Toshiba Corp, reeling from a US$1.3 billion accounting scandal, intends to ask for an additional 300 billion yen (US$2.49 billion) in credit lines by the end of January to fund a large-scale restructuring, the Nikkei business daily reported. Toshiba is likely to approach multiple financial institutions including Mizuho Bank and Sumitomo Mitsui Banking Corp, Nikkei reported, citing chief financial officer Masayoshi Hirata. - Reuters

Sharp shares soar on report of US$2.5b offer from Hon Hai: Shares of Japan's Sharp Corp jumped as much as 8.2% on Monday after Kyodo News reported Taiwan's Hon Hai Precision Industry Co, also known as Foxconn, proposed buying the struggling display maker for around 300 billion yen (US$2.49 billion) on condition that it top management be revamped. - Reuters

Top local stories

ExxonMobil Malaysia may vacate up to half its building in KL: ExxonMobil Exploration and Production Malaysia Inc is likely to join the list of companies that have embarked on cost cutting measures particularly in terms of office space. The company may return several floors of a building it currently occupies in the city centre to KLCC Property Holdings Bhd once its tenancy agreement expires in January 2017. - StarBiz

Bumi Armada unit gets RM4.8bil facility: Oil and gas services provider Bumi Armada Bhd’s subsidiary, Armada Cabaca Ltd, has secured a syndicated facility worth US$1.12bil (RM4.8bil). It comprised of a term loan, a stand- by letter of credit and a bank guarantee. - StarBiz

PUC Founder inks Internet payment deal with China's Lakala: PUC Founder (MSC) Bhd, a company involved in media and advertising, e-payment services and renewable energy, has signed a cross-border Internet payment services collaboration agreement with one of China’s leading Internet financial services group, Lakala Payment Co. - StarBiz

Selangor Properties net profit higher on land disposal: Selangor Properties Bhd posted a net profit of RM483.82mil for its fourth quarter on disposal of a 2.56ha of freehold land in Kuala Lumpur. Its revenue was up marginally at RM28.04mil. - Starbiz

UEM Edgenta gets maintenance contract: UEM Edgenta Bhd, a facilities manager, has been awarded a five-year road maintenance contract by the Selangor Public Works Department worth RM109.06mil. - StarBiz

The Media Shoppe seeks to redeploy funds: Internet solutions provider The Media Shoppe Bhd is seeking shareholders’ approval to use part of a rights issue meant for overseas expansion for its planned venture into property construction. - StarBiz

Parkson’s China retail mall loses final appeal: Parkson Holdings Bhd’s Chinese retail subsidiary has lost its final appeal to revoke an arbitral award made in favour of its former landlord and must pay about 141 million yuan (RM93.2mil). - StarBiz

Malaysia’s inflation seen under control: Domestic cost pressures will remain largely in check through 2015 in the wake of the collapse in global crude oil prices, economists said.
The increase in consumer price index (CPI), a gauge of inflation, will likely slow to only 2.1% to 2.2% this year, compared with 3.2% in 2014, before the pressure picks up again in 2016. - StarBiz

Mah Sing and land vendors settle dispute: Property developer Mah Sing Group Bhd and the vendors of a 425.3ha plot of freehold land near Seremban have agreed to settle the dispute arising from the discovery of a caveat on the land out-of-court. - StarBiz

1MDB to close Bandar Malaysia deal by year end: 1Malaysia Development Bhd (1MDB) is near to sealing an agreement with a prospective partner to sell 60% of its shares in Bandar Malaysia Sdn Bhd before the year ends. It is learnt that the consortium led by China Railway Construction Corp Ltd and property tycoon Tan Sri Lim Kang Hoo’s Iskandar Waterfront Holdings Sdn Bhd is back in favour although Tan Sri Desmond Lim together with Qatari investors submitted a late bid after the tender was closed. - Edge FD

Mobile prepaid users to get GST rebates from Friday: Mobile phone prepaid users will start to receive rebates of goods and services tax (GST) charges for their prepaid reloads this Friday. The Communications and Multimedia Consumer Forum of Malaysia said the rebates will be offered for one year until Dec 31, 2016. - Edge FD

Malaysia’s export growth to stay tepid next year: Malaysia’s export growth is expected to remain tepid at between 3% and 5% next year, economists said, as low oil prices will continue to put pressure on energy exporters like Malaysia, and the US's growing economy is not enough to offset the effects of a slowing China. They also see the weakening ring- git hurting imports. - Edge FD

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