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Breakfast briefing: Monday, May 23


MarketWatch: Economic data will garner most of the attention this week, with investors placing a heavy weight on a host of reports as they try and determine the likelihood of a rate hike by the US Federal Reserve at its June meeting. Multiple gauges of the manufacturing sector will be released along with durable goods orders, a reading on consumer sentiment and the revised gross domestic product report for the first quarter. Signs of improvement in the data would likely heighten expectations of a rate hike and put equities under pressure. - Reuters

Top foreign stories

Britain risks year-long recession if votes for Brexit: Osborne: Britain could sink into a year-long recession if it votes to leave the European Union, finance minister George Osborne said in his latest attempt to focus voters on the potential hit to the economy from an "Out" vote. - Reuters

Japan April exports suffer biggest drop in 3 months, bode ill for growth: Japan's exports fell in April at the fastest pace in three months as a stronger yen and weakness in China and other emerging markets take their toll on the country's shipments, boding ill for growth prospects for the current quarter. Exports declined 10.1% year-on-year in April, Ministry of Finance data showed on Monday. - Reuters

Top local stories


UEM Edgenta ’s big challenge: UEM Edgenta has a tough job of sweating its assets following the completion of a three-way merger between Faber Group Bhd, Opus Group Bhd and Projek Penyelenggaraan Lebuhraya Bhd. UEM Edgenta is the largest total asset solutions entity in Malaysia, with group assets worth over RM2.6bil as of 2015, after the RM1.51bil merger in 2014. - StarBiz

KPS’ proposed RM116mil stake buy in spotlight: Kumpulan Perangsang Selangor Bhd (KPS)’s plan to buy a 60% stake in a mattress maker for RM115.9mil cash may attract queries from shareholders at the group’s AGM this Friday. KPS, which is 57.88% owned by the Selangor investment arm Kumpulan Darul Ehsan Bhd, said last week it was buying into a profitable company that generates licensing revenue of RM29.2mil last year from its businesses in 80 countries. - StarBiz

Edra plans RM400mil solar plant: Edra Power Snd Bhd plans to build a RM400 million solar power plant in Kedah. - Bernama

Demand still good for landed properties: Demand for landed residential units is still promising despite the current property glut, says CBRE|WTW managing director Foo Gee Jen. - StarBiz

Private equity deals dwindle: Private equity (PE) activi- ties in South-East Asia, impacted by macro uncertainty, rich valuations and high compe- tition, have dwindled to its worst ever perfor- mance since 2004. The total deals value for last year was US$4.2bil (RM17.2bil), down from US$7.5bil in 2014 and about one-third of the five-year average, according to a study by Bain & Company. Star biz

Tropicana set for stronger quarters: Tropicana Corp Bhd is set to report strong quarterly earnings in the remaining quarters of the year, an analyst said, as it unlocks the value of its land bank in the Klang Valley, as well as in the northern region. The property developer has a land bank of more than 647.49ha across the country, with potential gross development value of more than RM50 billion. - Edge FD

Maybulk on selling spree as dry bulk market picks up: Malaysian Bulk Carriers Bhd (Maybulk) is said to be putting two more vessels up for sale. This comes on the heels of reports that it has sold one of its five post-Panamax dry bulk carriers for US$6.8 million (RM27.88 million). - Edge FD


Breakfast Briefing

   

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