Breakfast briefing: Tuesday, May 31

MarketWatch: US markets were closed for a public holiday on Monday.

Forex summary

*The ringgit gained 0.11% to 4.1118 per US$

*It was flat at 4.5832 per euro

*Down 0.34% to 6.0294 to the pound sterling

*0.03% higher to 2.9796 per Singapore dollar

*0.03% lower to 2.9568 per Aussie

*Down 0.04% to 3.7063 per 100 yen


Oil prices inched up toward US$50 a barrel on Monday, although uncertainty ahead of an Opec producer-group meeting later in the week was expected to cap gains. The Organisation of the Petroleum Exporting Countries meets in Vienna on Thursday and most analysts did not expect any changes in the group's production. Brent crude futures LCOc1 settled up 44 cents at US$49.76 a barrel, reversing losses from earlier in the day. - Reuters

Top foreign stories

Boeing set to win US$2.9b contract from UK MoD: Boeing Co is set to win a 2-billion-pound (US$2.92 billion) contract from the UK Ministry of Defence (MoD) for new Apache helicopters, The Telegraph reported. The MoD has decided to give Boeing a 50-aircraft contract, including servicing, and the announcement could come as early as July, the newspaper said. - Reuters

Air France-KLM in talks to sell stake in catering unit to China's HNA: Air France-KLM is entering exclusive negotiations with China's HNA Group to sell a stake in its catering business Servair, the Franco-Dutch airline group said on Monday. A deal to sell 49.99 percent of Servair and transfer operational control to HNA would be based on an enterprise value of the catering unit of 475 million euros (US$528.87 million), Air France said. - Reuters

Japan factory output unexpectedly rises, economy still in low gear: Japan's factory output unexpectedly rose in April 0.3% from the previous month despite soft exports and earthquakes that hit southern areas of the country during the month, offering some signs of hope for a fragile economic recovery. Manufacturers expect industrial production to rise in coming months, backing the central bank's view that the world's third-largest economy is sustaining a moderate recovery. - Reuters

Top local stories

AirAsia mulls sale of leasing ops: Speculation that AirAsia Bhd was looking to monetise its aircraft leasing business has been confirmed after its chief Tan Sri Tony Fernandes told Bloomberg in an interview that the carrier had received a US$1bil offer for it. Fernandes said he needed to discuss the offer at AirAsia’s board level. - StarBiz

Iris wins RM346mil Senegal biometric job: Iris Corp Bhd, a digital identity and business solutions company, has secured a contract worth RM346.2mil from Senegal for the supply of 10 million identification biometric cards over five years. Senegal has an estimated population of 13 million. - StarBiz

AWC bags TRX signature tower plumbing contract: AWC Bhd has secured a plumbing contract worth RM18.15mil from Mulia Property Development Sdn Bhd for the Tun Razak Exchange (TRX) project’s Signature Tower in Jalan Tun Razak/Jalan Davis. - StarBiz

KSTB major shareholders seek delisting: Kejuruteraan Samudra Timur Bhd (KSTB) says its major shareholders have requested the company to undertake a selective capital reduction and repayment, paving the way for the delisting of the company. - StarBiz

Eversendai slips into the red: Eversendai Corp Bhd suffered a net loss of RM50.43mil in its first quarter, compared with a net profit of RM19.4mil a year earlier, mainly due to a higher loss resulting from a fair value of financial assets and an unrealised foreign exchange (forex) loss.
Revenue grew 9.4% to RM440.73mil from RM402.78mil a year earlier. - StarBiz

Destini to expand MRO and marine services: Destini Bhd , which reported a first-quarter net profit of RM7.16mil in the first quarter on revenue that more than doubled to RM81.8mil, is targeting to expand its aviation maintenance, repair and overhaul (MRO) services and marine services. According to Bernama, the company is also targeting to boost its order book from RM650mil now to RM1bil by early next year. - StarBiz

TA Global to gain bulk of profit from Trump Tower: TA Global Bhd will realise a bulk of its profit from the successful construction of the Trump Tower in Canada in the financial year 2016 ending Dec 31, says director Datin Alicia Tan Kuay Fong. - StarBiz

Karambunai, Petaling Tin minority shareholders advised to reject Chen’s offer: The independent adviser for Karambunai Corp Bhd and Petaling Tin Bhd has recommended that minority sharehold- ers reject Tan Sri Dr Chen Lip Keong’s offer to buy out the two companies. In separate circulars to shareholders, Inter-Pacific Securities Sdn Bhd said Chen’s offers were “not fair” but “reasonable”. - StarBiz

RM1.1b GDV estimated for UEM Sunrise, TM project: Analysts estimate the high-rise mixed development to be built under an agreement between UEM Sunrise Bhd and Telekom Malaysia Bhd (TM) will have an estimated gross development value (GDV) of about RM1.1bil. - StarBiz

Tanjung Offshore ventures into education and training: Tanjung Offshore Bhd has signed a memorandum of understanding with Hills Education Group to venture into education and training. - StarBiz

DFI shareholders approve stake sale: Atlan Bhd subsidiary Duty Free International Ltd (DFI), the largest duty free retail outlet operator in Malaysia, has received unanimous shareholders’ approval for the disposal of up to 25% equity interest plus one share in unit DFZ Capital Bhd to Heinemann Asia Pacific Pte Ltd. - StarBiz

1MDB makes coupon payment of RM143.7mil: 1Malaysia Development Bhd (1MDB) has made a scheduled coupon payment amounting to RM143.75mil on its RM5bil 5.75% Islamic medium-term notes due 2039. - StarBiz

Tropicana attracts another Chinese land investor: Tropicana Corp Bhd is in the midst of finalising a deal to sell land in Pulai, Johor, to China-based Tiarn Group. Tropicana said its indirect unit Tropicana Desa Mentari Sdn Bhd had entered into a heads of agreement with Terran Property Sdn Bhd. The deal could be a land sale or the grant of development rights of the land to Terran Property or its related parties. - Edge FD

Bina Puri’s listing plan gets preliminary approval in Indonesia: The Indonesia Stock Exchange (IDX) has approved in-principle Bina Puri Holdings Bhd ’s plan to list its indirectly-owned unit PT Megapower Makmur Tbk. - Edge FD

Lim Yin Chow emerges as substantial shareholder of Mexter: Lim Yin Chow, a former non-executive director of Stemlife Bhd , Signature International Bhd and Rev Asia Bhd , has emerged as a substantial shareholder of Mexter Technology Bhd , after acquiring 55.85 million shares or a 28.38% stake in the company through an off-market deal. - Edge FD

Wah Seong Q1 net profit down 91%: Wah Seong Corp Bhd’s net profit dropped 91% to RM2.36 million on lower revenue recognised in its oil and gas segment in the current quarter, resulting in a loss. Revenue fell 35% to RM340.88 million. - Edge FD

Breakfast Briefing