Breakfast briefing: Monday, July 11


  • Business
  • Monday, 11 Jul 2016

KUALA LUMPUR- Press conference by Maybank on group's financial results, 51st Floor, Menara Maybank, 100, Jalan Tun Perak, Kuala Lumpur at 1200 (0400 GMT) KUALA LUMPUR- Press conference on CIMB Group Holdings Bhd's financial results, 31st Floor, Tun Abdul Razak Hussein Room, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur Sentral, Kuala Lumpur at 1630 (0830 GMT)

MarketWatch: The focus on Wall Street will shift to corporate earnings this week after a strong June jobs report on Friday gave investors confidence that the US economy was on stable footing and left the S&P 500 within a whisper of a new closing record high. - Reuters

Energy

Crude prices edged down in early Asian trade on Monday to hold near two-month lows on seasonally weak consumption, despite comments from the Saudi Arabian oil minister that the oil market was becoming more balanced. London Brent crude for September delivery was down 22 cents at US$46.54 a barrel by 2247 GMT on Sunday.

Top foreign stories

Japan's Orix buys US housing tax credit syndicator: Japanese financial services company Orix Corp has bought Boston Financial Investment Management, a US money manager specialised in tax credit investments for low-income housing suppliers, two sources said. Orix paid several hundred million dollars to buy Boston Financial Investment Management, they said. - Reuters

As yuan weakens, Chinese stock investors seek safety in Hong Kong: Chinese investors are placing increasing bets on Hong Kong stocks, partly in search of a safe haven from the decline in the yuan, which fell last week to its lowest levels against the dollar since 2010. The investment flows underline concerns that the slide in the yuan could increasingly fuel capital outflows from China, although official data suggest speculative capital flight is under control for now. - Reuters

Deutsche Boerse says might lower acceptances threshold for LSE merger: Deutsche Boerse AG is considering lowering the approval threshold for its proposed merger with London Stock Exchange Group Plc from shareholders representing 75% of its shares, the German exchange said on Sunday. - Reuters

China June inflation eases further, more policy stimulus anticipated: China’s June consumer inflation grew at its slowest pace since January as increases in food prices eased while producer prices extended their decline, reinforcing economists’ views that more government stimulus steps will be needed to support the economy. The consumer price index (CPI) rose 1.9% in June from a year earlier. - Reuters

Top local stories

Fair value seen in FBM KLCI following fund outflows: The exit of foreign capital amounting to more than RM20bil over the past three years means that the FBM KLCI’s valuations will be properly reflected in the fundamentals going forward, say analysts. “Investors who are hungry for yields would naturally turn to emerging markets. So, Malaysia’s place as an investment destination is assured,” a fund manager said. - StarBiz

AIRASIA eyes HK listing as it expands in North Asia: AirAsia is studying a dual listing in Hong Kong, part of plans to become a pan-Asian low-cost airline player as it also moves toward setting up a joint venture in China, people familiar with the matter said on Sunday. It is simultaneously looking for more aircraft to meet strong demand in North Asia and elsewhere, the people said on the eve of Britain's Farnborough Airshow. - Reuters

Pressure on TH Heavy: Analysts say TH Heavy Engineering Bhd, 30%-owned by Lembaga Tabung Haji, is in a situation where current cash flows are unable to service debt, while the option of external financing is tough. AmInvestment Bank Research said the company may need to recap- italise its balance sheet via an equity raising exercise. - StarBiz

Plastics and packaging sector to draw investors’ interest: Backed by capacity expansion and better margins growth that would lead to stronger earnings, the plastics and packaging industry could pique investors’ interests in coming months, according to Kenanga Research. - StarBiz

Race on for IoT networks: New city-wide networks are being built in the country that will enable the entry of the “Internet of Things” or IoT type applications. The latest player to enter this space is lit- tle-known Atilze Digital Sdn Bhd, a wholly-owned unit of Penang-based Yen Global Bhd. Last month, TELEKOM MALAYSIA BHD said it was rolling out a similar nationwide network. - StarBiz

Bright outlook seen for bond market: With the strong prospect of an overnight policy rate cut this year, coupled with the UK leaving the European Union, the outlook of the Malaysian bond market looks bright with yields expected to slide further. - StarBiz

All eyes on the price tag MoF could fetch for land near palace: All eyes are on the price tag that the ministry of finance (MoF) could fetch for two parcels of land located near the palace and in Jalan Tuanku Abdul Halim.that it has put up for sale at the time when the property market is experiencing a slowdown. - Edge FD

Maybank beats RHB in H1 to become top bond player: Maybank Investment Bank Bhd overtook RHB Investment Bank Bhd to become the top player in the Malaysian bond and sukuk markets in the first half of 2016, in terms of market share, according to the latest analysis from Bloomberg. - Edge FD

Analysts positive on YTL’s Yes 4G strategy: Analysts are positive on YTL Communications Sdn Bhd’s Yes 4G LTE network and view it as a step in the right direction. However, they will wait for clearer visibility on the loss-making company’s turnaround plan before flagging a rerating of YTL POWER INTERNATIONAL BHD shares. - Edge FD

GSK targets double-digit growth in Malaysia this year: As healthcare costs continue their relentless upward spiral, the practice of self-medicating has been gaining traction in Malaysia, — all of which spell opportunities for GlaxoSmithKline (GSK) Malaysia, despite the wider, more challenging macroeconomic environment. Which is why the healthcare group is expecting its consumer healthcare sector in Malaysia to register a double-digit growth this year. - Edge FD

UDA to launch RM1.8b worth of projects: UDA Holdings Bhd will launch two projects in Bertam on Penang’s mainland which have a total gross development value of RM1.8 billion, said managing director Datuk Ahmad Abu Bakar. - Edge FD


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