Mobius: ‘One should look at cheaper stocks with good growth but have relatively low price valuations.
MarketWrap: US stocks dropped on Wednesday and the Dow Jones industrial average suffered its worst day since February as feeble quarterly reports from Walt Disney, Macy's and Fossil undermined confidence across the consumer sector. - Reuters
The DJIA slumped 1.21% to 17,711.12 points, he S&P 500 lost 0.96% o 2,064.46, and the Nasdaq dropped 1.02% to 4,760.69.
Forex summary
*The ringgit gained 0.31% to 4.0225 per US$
*It declined 0.02% to 4.5958 per euro
*Up 0.17% to 5.8377 to the pound sterling
*0.11% higher to 2.9423 per Singapore dollar
*0.17% higher to 2.9589 per Aussie
*Up 0.33% to 3.7092 per 100 yen
Energy
Oil jumped on Wednesday, with Brent up more than 4% for a second day in a row, after the US government unexpectedly said crude inventories fell the first time since March, adding to concerns over supply outages in Canada and Nigeria. Brent crude futures LCOc1 settled up US$2.08, or 4.6%, at US$47.60 per barrel. - Reuters
Top foreign stories
EU blocks Hutchison's deal to buy Telefonica's O2 UK: The European Union's competition regulator blocked on Wednesday CK Hutchison Holdings' plan to become Britain's biggest mobile telecoms network operator. The European Commission said allowing Hutchison's 10.3 billion-pound (US$14.9 billion) acquisition of O2 UK from Spain's Telefonica would have led to higher British mobile prices, as it left just two rival network operators - BT Group's newly acquired EE, and Vodafone. - Reuters
Fed Board expands financial stability wing: The US Federal Reserve Board has expanded its office focused on financial policy and research into the Division of Financial Stability, a result of its growing task to pinpoint vulnerabilities in the country's financial system, it said on Wednesday. - Reuters
MF: Global corruption costs trillions in bribes, lost growth: Public sector corruption siphons US$1.5 trillion to US$2 trillion annually from the global economy in bribes and costs far more in stunted economic growth, lost tax revenues and sustained poverty, the International Monetary Fund said on Wednesday. - Reuters
Nissan, Mitsubishi Motors confirm tie-up talks: Nissan Motor Co and Mitsubishi Motors Corp on Thursday confirmed they are discussing a possible capital tie-up, after sources said Nissan is in advanced talks to take a roughly one-third stake in its scandal-hit rival. - Reuters
Top local stories
A grim reminder: New Bank Negara governor Datuk Muhammad Ibrahim noted the potential impact of technological disruptions to the financial sector and warned that an estimated 10% to 40% of overall banking revenues could be at risk by 2025 due to financial technology or fintech innovatons. - StarBiz
El Nino drying out: The bullish crude palm oil (CPO) price projections of between RM2,800 and RM3,000 per tonne in the next two months may be short-lived as the production in most plantations recovers with the El Nino dry weather drawing to an end. Plantation analysts say the average CPO price this year will remain at RM2,400-RM2,700 per tonne against last year’s average of about RM2,153 per tonne. - StarBiz
LKL International
posts Q3 profit of RM2.4m: LKL International Bhd, en route to an Ace Market listing, recorded a net profit of RM2.35mil on the back of revenue of RM11.78mil for its third quarter to Jan 31, 2016. For the nine-month period, net profit was RM4.13mil on a revenue of RM27.84mil. - StarBiz
RM1bil properties to be injected into IdealUBB: Ideal Property Development Sdn Bhd, the parent company of Ideal United Bintang Bhd (IdealUBB), intends to inject RM1bil worth of properties into IdealUBBin the second half of this year. It is part of an ongoing corporate exercise over five years to turn IdealUBB into a property company. - StarBiz
MBSB earnings weaker on higher provisions: Malaysia Building Society Bhd (MBSB) posted a lower net income of RM34.84mil for its first quarter due to higher allowances for impairments. It had set aside RM218.53mil as allowance for impairment losses, advances and financing, Its revenue stood at RM812.63mil, up from RM690.6mil a year earlier. StarBiz
PetDag earnings rise to RM219mil: Petronas Dagangan Bhd (PetDag) registered a 6.6% year-on-year growth in earnings to RM219.4mil for the first quarter. Its revenue was down 19.2% RM4.93bil, mainly due to a fall in selling price by 20% as a result of the drop in Mean of Platts Singapore prices. - StarBiz
BIMB first-quarter profit down slightly: BIMB Holdings Bhd’s net profit was down 0.33% to RM135.25mil in the first quarter mainly due to higher finance costs. Its revenue was up 10.84% to RM896.79mil. Earnings per share dropped to 8.57 sen from 8.84 sen previously. - StarBiz
KKB Engineering reports RM1.96mil net loss: KKB Engineering Bhd reported a net loss of RM1.96mil for its first quarter from a net profit of RM26.67mil a year ago due to a steep fall in manufacturing revenue. Its revenue fell by 71% year-on-year to RM22.16mil. - StarBiz
MRT Corp to give out four more line 2 contracts: Mass Rapid Transit Corp Sdn Bhd (MRT Corp) will announce four more contract awards totalling between RM2.5bil and RM3bil for the RM32bil MRT line 2 from Sungai Buloh-Serdang- Putrajaya this month. - StarBiz
Mobius: Ringgit to gain strength: seasoned fund manager Mark Mobius expressed optimism that the ringgit will strengthen and said issues surrounding 1Malaysia Development Bhd (1MDB) will not have a long-term impact on Malaysia. “The ringgit is so undervalued now... a lot of companies here are doing well, so funds will come back,” he said. - StarBiz
IPIC pays interest on 1MDB bonds amid dispute: Abu Dhabi’s International Petroleum Investment Co (IPIC) paid interest on 1Malaysia Development Bhd’s bonds after it said the latter defaulted on another coupon payment, according to Bloomberg. IPIC made the US$52.4mil (RM211mil) payment on 1MDB’s 5.99% dollar notes due 2022. StarBiz
Petronas signs three EPCC contracts for Pengerang: Petroleum Nasional Bhd (Petronas) has signed three engineering, procurement, construction and commissioning (EPCC) contracts for chemical plants in the Pengerang Integrated Complex. The plants are expected to be completed by early 2019, Petronas Refinery and Petrochemical Corp Sdn Bhd said. - Bernama
Chew Bros intends to seek waiver for MGO: Chew Bros (M) Sdn Bhd intends to seek a waiver from making a mandatory general offer (MGO) for Lysaght Galvanized Steel Bhd should the former is obliged to buy out the traffic pole maker after it garnered a 51.63% stake in the investment holding company called Lysaght (M) Sdn Bhd, which controls 55.14% of the listed entity. - Edge FD
Paramount Q1 earnings tumble on lower property sales: Property developer Paramount Corp Bhd saw its net profit plunge 58.21% to RM9.69 million in the first quarter due to dented sales in its property division. Its revenue declined 31.22% to RM113.33 million. - Edge FD
TSR to diversify into O&G industry: TSR Capital Bhd, a construction and civil engineering outfit, is diversifying into the oil and gas (O&G) industry. TSR said it has signed a memorandum of agreement with two individuals, Mohamad Othman and Datuk Seri Dr Prushotman Ragawan, to set up a special purpose vehicle for the O&G venture. - Edge FD
PRG plans one-into-two share split: PRG Holdings Bhd is proposing a one-into-two share split to reward shareholders and enhance the stock’s marketability and trading liquidity. - Edge FD
Gas Malaysia allocates RM140m for expansion: Gas Malaysia Bhd said it is allocating up to RM140 million for its expansion this year, which include growing its natural gas distribution system network in Peninsular Malaysia. Gas Malaysia CEO Ahmad Hashimi Abdul Manap said the group expects to build up to 100km of new pipelines across several states, including Perak and Johor, in 2016. - Edge FD
Genting ups bet on cruises with 3.5b euros ship order: Malaysian casino magnate Tan Sri Lim Kok Thay, who controls Genting Hong Kong Ltd, on Tuesday signed a 3.5 billion euros order for 10 cruise ships with its unit Lloyd Werft Group in a bid to capture the burgeoning Asian cruise market with the best fleet. - Edge FD
AGMs/EGMs
Ge-Shen Corporation Bhd
Time: 10am (AGM)/ 11.30am (EGM)
Venue: Room Sapphire 3, Level 4, Grand Paragon Hotel, No. 18, Jalan Harimau, Taman Century, Johor Baru
RHB Capital Bhd
Time: 10.30am
Venue: Taming Sari Ballroom 1 & 2, The Royale Chulan Kuala Lumpur, 5 Jalan Conlay, Kuala Lumpur
KKB Engineering Bhd
Time: 10am
Venue: Abell Hotel, No. 22, 4th Floor, Jalan Tunku Abdul Rahman, Kuching, Sarawak
Meda Inc Bhd
Time: 10am
Venue: Ballroom 1, Level 5, The Summit Hotel Subang USJ, Persiaran Kewajipan, USJ 1, 47600 UEP Subang Jaya, Selangor Darul Ehsan
UEM Edgenta Bhd
Time: 10am
Venue: Banquet Hall, Menara Korporat Persada PLUS, Persimpangan Bertingkat Subang KM15, Lebuhraya Baru Lembah Klang, Petaling Jaya, Selangor
Sin Heng Chan (Malaya) Bhd
Time: 10am
Venue: Banyan Room, Ground Floor, Sime Darby Convention Centre, 1A, Jalan Bukit Kiara 1, Kuala Lumpur.
Abric Bhd
Time: 10am
Venue: Kuala Lumpur Golf & Country Club, Function Room 2, 1st Floor, No. 10, Jalan 1/70D, Off Jalan Bukit Kiara, Kuala Lumpur
Limited time offer:
Just RM5 per month.
