Market wrap: Global equity markets staged a late rebound along with oil prices on Wednesday to cut declines from 2-1/2 year lows, but remained on pace for one of the most dismal monthly performances on record. - Reuters
DJIA fell 249.28 points, or 1.56%, to 15,766.74, the S&P 500 lost 22 points, or 1.17%, to 1,859.33 and the Nasdaq dropped 5.26 points, or 0.12%, to 4,471.69.
* The MSCI World equity index lost 2% after falling as much as 3.4% its lowest level since June 2013.
* FTSEurofirst 300 .FTEU3 down 3.3%, to notch its biggest single-session decline in six weeks.
* France's CAC .FCHI and Britain's FTSE .FTSE both tumbled more than 3% for their worst session declines of the year.
* Germany's DAX .GDAXI lost 2.8%, for its worst daily drop since the first trading day of 2016.
Forex summary
*The ringgit gains 0.51% to 4.3728 per US$
*It rose 1.27% to 4.7559 per euro
*Up 0.12% to 6.2067 to the pound sterling
*0.15% higher to 3.0455 per Singapore dollar
*1.17% down to 3.0383 per Aussie
*Up 0.90% to 3.7241 per 100 yen
Energy
US oil prices crashed below US$27 a barrel on Wednesday for the first time since 2003, caught in a broad slump across world financial markets with traders also worried that the crude supply glut could last longer. Brent futures for March delivery fell 88 cents to settle at US$27.88 a barrel, a 2.7% loss after pulling back from a new contract low of US$27.10. - Reuters
Top foreign stories
News Corp denies rumours of Twitter bid: Rupert Murdoch's News Corp said rumors about the company's interest in buying microblogging site Twitter Inc or building a stake in it were untrue. - Reuters
Weak US inflation, housing data lower March rate hike chances: US consumer prices unexpectedly fell in December as the cost of energy products and food declined, offering signs of weak inflation that further diminish expectations of a Federal Reserve interest rate hike in March. The Labor Department said its Consumer Price Index slipped 0.1% after being unchanged in November. Other data on Wednesday showed a drop in housing starts and building permits last month. - Reuters
US hedge funds boast lower losses as markets tumble further: For some of the hedge fund industry's titans, including Nelson Peltz and William Ackman, 2016 is starting with heavy losses as big bets on General Electric, Valeant and Mondelez have been battered by the market's abrupt drop. But as a group, hedge funds have navigated the sharp sell-off relatively smoothly, finally boasting better performance than the equity markets they have trailed for the last years. - Reuters
IMF opens search for top job; Lagarde has offered to serve again: The International Monetary Fund said it plans an open selection process for its top job and will begin accepting nominations on Thursday, even though Christine Lagarde has said she is open to another term leading the crisis lender. Lagarde's initial five-year term as managing director expires on July 5, and IMF executive board member Aleksei Mozhin said he expects the board to complete its selection process by early March. - Reuters
Half of Japan firms see no escape from deflation this year: Around half of Japanese firms believe their country will have failed to rid itself of deflation a year from now, a Reuters poll shows, a sign that authorities are not gaining the traction they want as they battle an entrenched deflationary mindset. - Reuters
Goldman Sachs sees M&A business weathering market slump: Goldman Sachs Group Inc, the 2015 M&A champion, is putting a brave face on the prospects for its dealmaking business this year even with markets plunging. The Wall Street firm, which last year topped the global dealmaking charts, is not yet concerned about the impact declining oil prices and China's slowing economy will have on dealmaking. - Reuters
Top local stories
OSV firms worst hit in Petronas cutback: With Petroliam Nasional Bhd (Petronas) planning to slash RM50bil from its operating and capital expenditures over the next four years, companies most affected are those providing offshore support services. The offshore support vessel (OSV) segment is considered the most vulnerable within the value chain of the Malaysian oil and gas services sector as it is relatively higher leveraged and has lower cash-coverage ratio compared to other segments. - StarBiz
BCorp wins Vietnam lottery contract: Berjaya Corp
Bhd (BCorp) together with Vietnam Computerized Lottery One Member Limited Liability Company (Vietlott) have been award- ed an exclusive 18-year contract to invest in and operate a nationwide computerised lottery in Vietnam. - StarBiz
Khazanah buys into China’s WeLab: Sovereign wealth fund Khazanah Nasional Bhd has bought into China’s WeLab, a mobile lending and credit analytics platform player, with an investment of US$160mil (RM701mil) in a fundraising exercise. Khazanah led a consortium of investors including ING Bank and Guangdong Financial Technology Group in the fundraising exercise. - StarBiz
MMC offer for NCB shares closes: MMC Port Holdings Bhd said its unconditional takeover offer to acquire all remaining shares in its subsidiary NCB Holdings Bhd for RM4.40 per share closed on Wednesday. - StarBiz
Nexgram identifying special auditor: Nexgram Holdings Bhd, which has come under the scrutiny of the Securities Commission (SC), said it is taking steps to identify an independent qualified accounting firm to undertake the role of special auditor. - StarBiz
FGV expects to conclude talks on Eagle High deal by March: Plantation firm Felda Global Ventures Holdings Bhd (FGV) is expected to conclude negotiations on the acquisition of a stake in PT Eagle High Plantations Tbk by March. FGV chairman Tan Sri Mohd Isa Abdul Samad said negotiations were ongoing and talks should be settled within the next two months. - StarBiz
Chugoku to boost TNB plant’s efficiency: The emergence of Japan’s Chugoku Electric Power as a new shareholder in Tenaga Nasional Bhd’s (TNB) 70%-owned Jimah East Power Sdn Bhd is not a game changer for the utility company, but will .enhance the operating efficiency of the Jimah East power plant project in Negri Sembilan, says AmResearch. - StarBiz
Fututech targets RM500mil-RM600mil new jobs: Construction firm Fututech Bhd is tendering for RM1.17bil worth of jobs for financial year 2016 and is targeting to secure a minimum of RM500mil to RM600mil. The company’s current order book totalled RM2.7bil, - StarBiz
SRC says unaware of sale plan: Shell Refining Company (Federation of Malaya) Bhd (SRC) has yet to confirm the move by Chinese petrochemical producer Shandong Hengyuan Petrochemical Co Ltd (SHP) to acquire Royal Dutch Shell Plc’s 51% stake in the Port Dickson-based company. - StarBiz
CMMT posts lower profit: Mall operator Capitaland Malaysia Mall Trust (CMMT) recorded an 18.9% fall in net profit to RM46.68mil for the fourth quarter despite higher revenue of RM93.27mil, up 16.2%. - StarBiz
Lower contribution from projects hurts Guocoland: Property developer GuocoLand (M) Bhd posted a net loss of RM7.5mil in the second quarter, versus a net profit of RM3.02mil a year earlier, on lower contribution from the company’s projects. Revenue fell 34.9% to RM36mil. - StarBiz
Inflation to rise this year: Malaysians should brace for higher prices this year on rising public transportation charges, toll rates and the abolishment of electricity rebates.
Nomura Holdings Inc senior economist for South-East Asia, Euben Paracuelles, said in a note that prices would increase by 2.8% year-on-year for 2016 compared with a 2.1% rise last year. However, he said inflation could moderate should crude oil prices continue to fall. - StarBiz
Felda, Encorp scale down Bukit Katil project: The upcoming integrated township in Bukit Katil, Malacca, to be developed by Encorp Bhd and the Federal Land Development Authority (Felda), has been scaled down from a gross development value of RM4.9bil to RM3.2bil. - StarBiz
Navaratnam: spread out projects under budget revision: A revision of Budget 2016 should also include spreading out projects under the development expenditure with high import content, says Centre for Public Policy Studies chairman Tan Sri Ramon Navaratnam. He said the alternative would be to have deep cuts in the operating expenditure, which would mean cutting jobs in the civil service. - StarBiz
Manufacturing and business chambers say govt should sign TPPA: More business groups have come out in support of the Trans-Pacific Partnership Agreement (TPPA), with seven different manufacturing and commerce bodies coming together to state their stance. The trade bodies the Federation of Malaysian Manufacturers, Malaysian International Chambers of Commerce and Industry, Associated Chinese Chambers of Commerce and Industry of Malaysia and Malay Consultative Council, SME Association of Malaysia, Malay Businessmen and Industrialist Association of Malaysia and American Malaysian Chamber of Commerce. - StarBiz
Instacom bags RM240.42m job from Coneff Corp: Instacom Group Bhd has bagged a RM240.42 million contract from Coneff Corp Sdn Bhd to provide construction works for two blocks of commercial towers at the Desa Tasik project in Sungai Besi, Kuala Lumpur. - Edge FD
Bintai Kinden: No more impairment of receivables in near future: Bintai Kinden Corp Bhd, which on Wednesday bagged a RM120 million contract for the construction of student housing in Malacca, expects no more impairment of its receivables in the near future. “We have written off everything that is necessary. Whatever remains in our receivables are all new jobs. I believe the worst is over,” the group’s executive vice-chairman Ong Puay Koon said. - Edge FD
Brunei’s Prince Abdul Qawi invests in Malaysia’s BookDoc: Prince Abdul Qawi, the nephew of Brunei’s ruler Sultan Hassanal Bolkiah, has invested in BookDoc, a Malaysian healthcare technology start-up. BookDoc said it has concluded its seed funding round, led by the prince’s investment, but did not state the amount that it has raised. - Edge FD
AGMs/EGMs
Fraser & Neave Holdings Bhd
Time: 10am
Venue: Banyan, Casuarina & Dillenia Sime Darby Convention Centre 1A, Jalan Bukit Kiara, Kuala Lumpur
Netx Holdings Bhd
Time: 10.30am
Venue: Level 4, Menara Lien Hoe, No. 8, Persiaran Tropicana, Tropicana Golf & Country Resort, Petaling Jaya, Selangor
NETX seeks shareholder approval for:
* Reduction in share capital of the company by reducing the par of share from 10 sen 5 sen;
* Renounceable rights issue of up to 625,553,033 new shares on the basis of one share for every share held together with up to 625,553,033 free detachable warrants on basis of one warrant for every rights share subscribed to;
* A share issuance scheme of up to 30% of the company's capital;
* Increase in the authorised share capital to RM250 million from RM70 million.
Limited time offer:
Just RM5 per month.
