Market wrap: US markets were closed on Monday for the Martin Luther King Day holiday.
Forex summary
*The ringgit was up 0.24% to 4.3840 per US$
*It gained 0.24% to 4.7739 per euro
*Up 0.49% to 6.2528 to the pound sterling
*0.16% higher to 3.0495 per Singapore dollar
*0.31% higher to 3.0189 per Aussie
*Up 0.41% to 3.7296 per 100 yen
Energy
Oil prices slumped to a 2003 low below US$28 per barrel on Monday as the market anticipated a rise in Iranian exports after the lifting of sanctions against Tehran over the weekend.
Iran issued an order on Monday to increase production by 500,000 bpd, the country's deputy oil minister said. Worries about Iran's return to an already oversupplied oil market drove down Brent crude LCOc1 to US$27.67 a barrel early on Monday, its lowest since 2003. The benchmark was down 29 cents at US$28.64 by 1850 GMT. - Reuters
Top foreign stories
China seen posting slowest economic growth in 25 years: China is expected to report its weakest quarterly economic growth in nearly seven years on Tuesday, adding pressure on policymakers to take bolder steps to ward off fears of a sharper slowdown that are jolting global financial markets. Fourth-quarter gross domestic product growth is expected to slow to 6.8% from a year earlier, down from 6.9% in the third quarter. - Reuters
Volkswagen faces shareholder claims over emissions scandal: Dozens of large shareholders in Volkswagen plan to sue the carmaker in a German court, seeking compensation for the plunge in its shares due to its emissions test cheating scandal. Law firm Nieding + Barth said on Monday it would lodge a case this week, seeking hundreds of millions of euros in damages on behalf of 66 institutional investors from the United States and Britain. - Reuters
Japan economic fundamentals solid despite stock sell-off: Japanese Economics Minister Akira Amari said on Tuesday that the recent sell-off in Japanese shares was due to external factors and that the country's economic fundamentals remained solid. - Reuters
Investor group buys Barclays' offshore trust business: Barclays has sold its offshore trust business to an independent investor group but will keep a 20% stake in the new company, renamed as ZEDRA, for at least three years. The price was not disclosed. - Reuters
Top local stories
Probe into Nexgram
deepens: Following the unprecedented action by the Securities Commission (SC) to disclose questionable actions by Nexgram Holdings Bhd, the regulator’s next course of action is a thorough investigation into the money trail relating to the RM84.5mil cash balance that had previously existed in the company, sources said. - StarBiz
Salim-linked firm buys into CAB Cakaran: A company linked to Indonesian billionaire Anthoni Salim has emerged as a shareholder in CAB Cakaran Corp Bhd after paying a huge premium for a stake in the integrated poultry farmer. CAB Cakaran said the placement will raise RM31.2mil and help accelerate its expansion into Indonesia. - StarBiz
Hap Seng to buy China firm: Hap Seng Consolidated Bhd has proposed to acquire Lei Shing Hong Wood Products Ltd from Lei Shing Hong Trading Ltd, a wholly-owned subsidiary of Lei Shing Hong Ltd for US$3.21mil cash. The deal presents an opportunity for Hap Seng group to expand its fertiliser trading business in China. - StarBiz
First phase of BBCC project to take off by Q2: The developer of the RM8.7bil Bukit Bintang City Centre (BBCC), a mixed development to be undertaken on the former Pudu Jail site, plans to launch the first phase of project by the second quarter of this year. Eco World Development Group Bhd said The first phase, which has a gross development value of RM1.4bil, will comprise a shopping mall, four-star hotel, strata office and two blocks of serviced apartments. - StarBiz
Boustead plans rights issue to raise RM1bil: Boustead Holdings Bhd plans to issue renounceable rights shares to raise RM1bil in fresh capital, as the diversified group seeks to reduce debts and fund its property development and other investment activities. - StarBiz
Abric to return 43 sen per share to shareholders: Abric Bhd has proposed to undertake a cash distribution of 43 sen for every share in the company to facilitate its delistng. The company was left with no business, but plenty of cash following the disposal of its entire business to Essentra Plc for RM146mil in 2014. - StarBiz
Sime set to be major rubber producer: Sime Darby Bhd plans to develop almost 100,000ha of rubber estates in Malaysia, Indonesia and Liberia within the next few years. It has identified some 30,000ha of oil palm estates in Malaysia and 10,000ha in Indonesia to be replanted with rubber trees. It also plans to plant 40,000ha to 50,000ha of new rubber estates in Liberia. - StarBiz
Repco Low sentencing deferred: The Kuala Lumpur Sessions Court has deferred the sentencing for Low Thiam Hock, better known as Repco Low, to Jan 22. On Jan 11, the court had found Low guilty of market manipulation involving the shares of Repco Holdings Bhd, where he was the former executive chairman. - StarBiz
EKA Noodles to tie up with China partner for sweetener venture: EKA Noodles Bhd has signed a memorandum of understanding with a Chinese technology partner, Anhui Huijia Biological Science and Technology Co Ltd for the production of sweetener and extraction of rice protein powder in Malaysia. - StarBiz
Proton to spend RM600mil on new engines: Proton Holdings Bhd has allocated RM600mil to develop new car engines with engineering partners in the UK, as the local carmaker plots its return to European markets. The new engines are expected to be ready by the end of 2017. - StarBiz
CIMB says won't lay off more staff: CIMB Group Holding Bhd said it has no new plan to lay off staff in Malaysia and Indonesia in 2016 after the completion of last year’s mutual separation scheme, said chief executive officer Tengku Datuk Seri Zafrul Aziz. Instead, the focus would be on improving productivity within the group. - StarBiz
China to use more soy oil: Growth in China’s palm oil imports, under pressure due to a slowing economy, will suffer another setback this year as the country taps into ample global supplies of the rival soy bean to feed its expanding livestock sector. Any dent to palm oil purchases by the world’s No. 2 consumer will add to pressure on benchmark prices of palm oil that are currently near one-month lows. - Reuters
Court dismisses appeal by Tajudin, Bistamam: An appeal by Tan Sri Tajudin Ramli and his younger brother Datuk Bistamam Ramli against a judgement of the Kuala Lumpur High Court dated March 20, 2013 in favour of Technology Resources Industries Bhd (TRI), a wholly-owned subsidiary of Celcom Axiata Bhd, has been dismissed. In a filing with Bursa Malaysia, Axiata Group Bhd said the Court of Appeal on Monday dismissed the appeal with cost of RM30,000 to be paid by Tajudin and Bistamam. - Edge FD
AmFirst REIT secures RM250m loan for land acquisition in Penang: AmFirst Real Estate Investment Trust (AmFirst REIT) has secured a RM250 million syndicated-term loan from Public Bank Bhd and AmBank (M) Bhd to acquire six pieces of land in Seberang Perai Tengah, Penang. The land parcels come together with a three-storey hyper mall. - Edge FD
Bank Negara okays talk extension for MBSB-Bank Muamalat merger: Bank Negara Malaysia has “no objection” to the one-month extension until Feb 2 that is being sought by Malaysia Building Society Bhd (MBSB) and DRB-Hicom Bhd to conclude their talks on the proposed merger between MBSB and Bank Muamalat Malaysia Bhd. - Edge FD
AGMs/EGMs
PLB Engineering Bhd
Time: 3pm
Venue: 3rd Floor, Training Room, 1320, Jalan Baru, Taman Chai Leng, Prai, Penang
The Media Shoppe Bhd
Time: 9am
Venue: Level 16, Persoft Tower, 6B, Persiaran Tropicana, Tropicana Golf & Country Resort, Petaling Jaya, Selangor
The Media Shoppe seeks shareholder approval for:
* Diversification of the business of the company and its subsidiaries to include property construction and related business.
* Variation to the use of proceeds from the rights issue that was completed on January 19, 2012.
* Name change to SKH Consortium Bhd.
Limited time offer:
Just RM5 per month.
