Breakfast briefing: Thursday, May 5


  • Business
  • Thursday, 05 May 2016

MarketWrap: US stocks declined for a second day on Wednesday, weighed down by tepid data on private sector US jobs and a retreat in biotech shares. Weaker-than-expected results from Priceline added to the bearish tone. - Reuters

The DJIA ended down 99.65 points, or 0.56%, to 17,651.26, the S&P 500 lost 12.25 points, or 0.59%, to 2,051.12 and the Nasdaq finished 37.59 points, or 0.79%, lower at 4,725.64.

Forex summary

*The ringgit lost 0.58% to 3.9315 per US$

*It fell 0.48% to 4.6119 per euro

*Down 0.70% to 5.8229 to the pound sterling

*0.24% down to 2.9526 per Singapore dollar

*0.13% lower to 2.9920 per Aussie

*Down 0.41% to 3.7478 per 100 yen

Energy

A bigger-than-expected build in US crude inventories to fresh record highs pushed oil markets lower on Wednesday after an early rally over concerns about production cuts in Canada's oil sands region due to a wildfire. Brent crude LCOc1 settled down 35 cents or 0.78%t at US$44.62 a barrel. - Reuters

Top foreign stories

ICE shelves plans for London bourse counter bid: The New York Stock Exchange's owner has shelved plans to make a counterbid for London Stock Exchange that could have derailed the British firm's planned merger with Deutsche Boerse. - Reuters

Tribune Publishing rejects Gannett's unsolicited takeover bid:
Tribune Publishing Co said on Wednesday its board unanimously rejected Gannett Co Inc's unsolicited takeover offer and will proceed instead with a strategic plan to revive its print business and tap growth in digital content. - Reuters

Strong US services sector data buoy economic outlook: The US services sector expanded in April as new orders and employment accelerated, bolstering views that economic growth would rebound after almost stalling in the first quarter. The growth outlook was, however, dimmed by another report on Wednesday showing private employers hired the fewest number of workers in three years in April. - Reuters

Top local stories

LRT 3 project to start this month: The RM9bil light rail transit line three (LRT 3) project from Bandar Utama to Johan Setia, Klang, will kick off this month, with some 96 companies being shortlisted for the various jobs. - StarBiz

MAA plans special dividend payout: MAA Group Bhd is selling its takaful unit to Zurich Insurance Co Ltd for RM373.7mil and plans to return RM100mil, or 35 sen a share, to shareholders as special dividend. The remaining sum from the disposal has been allocated for future investment and acquisition of new businesses. - StarBiz

Daibochi Plastic Q1 profit up 5.2%: Daibochi Plastic And Packaging Industry Bhd recorded's net profit rose 5.2% to RM6.5mil in the first quarter on the back of stronger export sales. Its revenue for the quarter also rose to RM89.7mil from RM86.2mil a year earlier. - StarBiz

BioAlpha unit buys 60% of PT Herbal Malindo Makmur: BioAlpha Holdings Bhd subsidiary BioAlpha International Sdn Bhd has acquired 60% stake in PT Herbal Malindo Makmur (PT. HMM) of Indonesia. PT. HMM will be principally involved in the manufacture of BioAlpha’s health supplement products as the group plans to have its own manufacturing facility in Kampar of Riau province, it said. - StarBiz

F&N Q2 earnings rises to RM90m: FRASER & NEAVE HOLDINGS BHD (F&N) reported a 28.5% rise in earnings to RM90.57mil for its second quarter, supported by its food and beverage businesses in Malaysia and Thailand. Its revenue increased 6.31% to RM999.17mil. - StarBiz

Fitch sees TNB setting aside RM46b for capex in FY16-FY19: Tenaga Nasional Bhd (TNB) is expected to incur about RM46bil in capital expenditure (capex) for financial year ending Aug 31, 2016 (FY16) to FY19 to increase its domestic generation capacity and for maintenance, according to Fitch Ratings. - StarBiz

Chin Well expects lower export sales this year: Chin Well Holdings Bhd, one of the world’s largest manufacturers and suppliers of carbon steel fasteners, expects export sales to fall at least 10% this year due to competition from Chinese firms. - StarBiz

R&A plans to buy shipping company: R&A Telecommunication Group Bhd plans to buy a shipping company which is 49% owned by oil and gas firm SUMATEC RESOURCES BHD for RM150mil. The purchase is part of the loss-making company’s regularisation plan to maintain its listing status. - StarBiz

MAS inks ‘major deal’ with Amadeus: Malaysia Airlines, through a new passenger service system, will be able to provide travellers more speed and convenience and a sophisticated web booking experieence, among others. The national carrier said it has signed “a major deal” with global travel technology leader Amadeus for the system. - StarBiz

RAM raises 2016 CPO price forecast: RAM Rating Services Bhd RAM forecasts crude palm oil prices to average between RM2,400 and RM2,600 per tonne in the second quarter of 2016, as it expects a lower output due to a prolonged period of unfavourable weather conditions. - Edge FD

AGMs/EGMs

THREE-A RESOURCES BHD

Time: 11am

Venue: Ballroom Level 1 Tropicana Golf & Country Resort, Petaling Jaya, Selangor

MALAYSIA BUILDING SOCIETY BHD

Time: 10am (AGM)/ 12pm (EGM)

Venue: Grand Nexus, Level 3A, Connexion@Nexus, No. 7 Jalan Kerinchi, Bangsar South City, Kuala Lumpur

* MBSB seeks shareholder approval for a renounceable two-call rights issue to raise up to RM2 billion

Globetronics Technology Bhd

Time: 10.30am

Venue: Merbah Room, Lower Level, Hotel Equatorial Penang, Bayan Lepas, Penang


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