Breakfast briefing: Thursday, May 26


  • Business
  • Thursday, 26 May 2016

In a filing with Bursa Malaysia yesterday, Sime Darby said SDE had on Feb 5 received a notice from the Dubai International Arbitration Centre (DIAC) that EMAS had submitted a request for arbitration against SDE which was filed on Jan 24, 2016. The amount that EMAS is seeking from the arbitration proceedings is AED41.04mil (about RM46.37mil).

MarketWrap: Wall Street rose robustly for a second straight session on Wednesday, helped by higher oil prices and investors becoming more comfortable with the prospect of an interest rate hike as early as next month. Combining Tuesday and Wednesday's performances, the S&P 500 gained 2%, its strongest two-day run since early March. - Reuters

DJIA added 0.82% to end at 17,851.51 points, the S&P 500 gained 0.7% to 2,090.54 and the Nasdaq climbed 0.7% to 4,894.89.

Forex summary

*The ringgit gained 0.48% to 4.0840 per US$

*It rose 0.33% to 4.5591 per euro

*Up 0.17% to 6.0047 to the pound sterling

*0.21% higher to 2.9668 per Singapore dollar

*0.54% higher to 2.9363 per Aussie

*Up 0.08% to 3.7209 per 100 yen

Energy

Oil prices rose as much as 1% on Wednesday after the US government reported a larger-than-expected drop in crude stocks for last week, but profit-taking after the data kept prices below the US$50 a barrel level that oil bulls had been hoping for. Brent LCOc1 settled up US$1.13 at US$49.74. Reuters

Top foreign stories

Microsoft to cut 1,850 jobs at struggling smartphone unit: Microsoft Corp announced more big cuts to its smartphone business on Wednesday, just two years after it bought handset maker Nokia in an ill-fated attempt to take on market leaders Apple Inc and Samsung Electronics Co Ltd.  Microsoft said it would shed up to 1,850 jobs, most of them in Finland, and write down US$950 million from the business. It did not say how many employees currently work on smartphones in the group as a whole. - Reuters

HP Inc profit beats Street amid weak market for PCs, printers: HP Inc, which houses the former Hewlett-Packard Co's legacy hardware business, reported a better-than-expected quarterly profit as aggressive cost cutting helped counter weak demand for personal computers and printers. Excluding items, the company earned 41 cents per share. Analysts on average had expected earnings of 38 cents per share. - Reuters

Bayer could get ECB financing for Monsanto bid, rules show: Bayer could receive financing from the European Central Bank that would help to fund a takeover of Monsanto, according to the terms of the ECB's bond-buying programme. US-based Monsanto, the world's largest seed company, turned down Bayer's US$62 billion bid on Tuesday, but said it was open to further negotiations. - Reuters

Top local stories

Axiata relooks Robi-Airtel deal: Axiata Group Bhd is taking another look at its proposed merger involving its unit in Bangladesh, Robi Axiata Ltd, with Airtel Bangladesh Ltd. This is due to a merger fee that the Bangladeshi government is imposing that may make the corporate exercise not viable. - StarBiz

Sime identifies buyer for Australian assets: Sime Darby Bhd has identified a potential buyer for the planned sale of its 14 industrial assets in Australia as the country’s biggest conglomerate steps up efforts to mitigate the impact of weak palm oil production and losses at its Malaysian motor division. The properties are estimated to be worth A$250mil (RM738mil).

* Sime posts a net profit of RM663.4mil in the third quarter, helped by a one-time gain of RM406mil from the deconsolidation of two properties in Singapore. - StarBiz

Internal funds to finance UMW Toyota’s new plant: The construction of UMW Toyota Motor Sdn Bhd’s new RM2bil vehicle manufacturing plant in Bukit Raja, Klang, does not require any debt undertaking and will solely be financed by internal funds, said UMW Toyota president Datuk Ismet Suki. - StarBiz

Brahim's hopes to seal deal with KTMB soon: Brahim’s Holdings Bhd says it is in the “final stages” of discussion with KTM Bhd (KTMB) to provide railway catering services. “We’ve been doing a pilot test for the past six months and we’re looking to formalise an arrangement with KTMB within the next two months,” executive chairman Datuk Seri Ibrahim Ahmad Badawi said. - StarBiz

RHB Cap first-quarter profit rises 16%: RHB Capital Bhd’s (RHB Cap) net profit rose 15.9% to RM552.02mil in the first quarter on higher net interest income and cost improvement efforts. Its revenue grew a marginally to RM2.73bil from RM2.70bil a year ago. - StarBiz

TSH earnings surge to RM54.7mil: Plantation company TSH Resources Bhd’s earnings surged 750% to RM54.72mil in the first quarter underpinned by higher exchange gains despite a decline in crude palm oil prices and lower fresh fruit bunches production due to the effects of the
El Nino. Its revenue slipped to RM202.28mil from RM206.03mil. The company remains optimistic on the long-term prospects of the palm oil industry. - StarBiz

Boosted posts RM9.5mil first-quarter profit: Boustead Holdings Bhd posted a net profit of RM9.5mil for the first quarter against RM69.5mil in the corresponding period of 2015 despite a RM34.6mil gain on disposal of plantation land during the period. Revenue slid 1.9% to RM1.86bil. The board declared a first interim dividend of 5 sen per share. - StarBiz

Puncak Niaga on M&A trail: Cash-rich Puncak Niaga Holdings Bhd will actively pursue mergers and acquisitions (M&As) opportunities in the environment-related businesses this year. “This year onwards we will be more focused in businesses related to environment and not only in water treatment and distribution but also in waste water management, renewable energy and power,” said executive chairman Tan Sri Rozali Ismail. - StarBiz

1MDB asset transfer may be completed by June: 1Malaysia Development Bhd (1MDB)’s asset transfer to the Ministry of Finance Incorporated (MoF Inc) will likely be completed by mid-June, says Deputy Finance Minister Datuk Johari Abdul Ghani. The company would thereafter become a shell company to manage liabilities and bonds it has issued, he said. - Bernama

KPS unit secures three contracts to supply chemicals: Kumpulan Perangsang Selangor Bhd’s (KPS) 51%-owned subsidiary Aqua-Flo Sdn Bhd has secured three contracts, worth a combined RM98.11mil over two years, for the supply and delivery of chemicals to water treatment plants operated by three companies. - StarBiz

Cityneon to see rising profit margins: Singapore-listed Cityneon Holdings Ltd, a subsidiary of the Star Media Group Bhd, is poised to see rising profit margins driven by its cash-generating exhibition produc- tion and distribution unit, say analysts. CIMB Research expects Cityneon’s topline growth for financial years 2016-2018 to come in between 10%-33%, and earnings per share to expand more rapidly at 35%-238% even after factoring in the company’s recent new share issuance of 20 million in FY16. - StarBiz

TM first-quarter profit soars to RM322mil: Telekom Malaysia Bhd’s (TM) net profit surged 150% to RM322.44mil in the first quarter on higher operating profit and net finance income from foreign exchange (forex) gains. Its revenue came in 2.9% higher at RM2.85bil from RM2.77bil, a year ago. - StarBiz

I-Bhd aims to double revenue to RM600m by 2018: I-Bhd is targeting to double its revenue and obtain a steady annual revenue of RM500mil to RM600mil by 2018. The group also plans to accumulate a RM1bil investment property portfolio by 2018, from RM285mil currently. - StarBiz

Bank Muamalat to raise up to RM1b via sukuk: Bank Muamalat Malaysia Bhd will set up a RM1 billion sukuk programme, after the Islamic lender said on Wednesday it would redeem RM400 million worth of subordinated sukuk on June 15. - Reuters

Kelington Group wins RM70m worth of civil works: Kelington Group Bhd’s wholly-owned sub- sidiary Kelington Technologies Sdn Bhd has bagged a RM70 million civil and structural works contract. - Edge FD

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