A bartender serves a glass of Carlsberg beer at a bar in Kuala Lumpur, Malaysia in this July 4, 2012 file photo. - REUTERS
MarketWrap: US stocks rose modestly on Tuesday, as gains in the tech sector helped buoy the Nasdaq to a record intraday high and solid housing market data provided more evidence the economy may be picking up momentum. With the US earnings season winding down, investors are also turning their focus to the likelihood of an interest rate hike in the coming months. - Reuters
The DJIA rose 17.88 points, or 0.1%, to 18,547.3, the S&P 500 gained 4.26 points, or 0.2%, to 2,186.9 and the Nasdaq added 15.48 points, or 0.3%, to 5,260.08.
Forex summary
*The ringgit lost 0.12% to 4.0375 per US$
*It was 0.03% higher at 4.5627 per euro
*Down 0.21% to 5.3217 to the pound sterling
*Down 0.04% to 2.9849 per Singapore dollar
*0.19% higher to 3.0738 per Aussie
*Up 0.03% to 4.0215 per 100 yen
Energy
Oil prices rose on Tuesday after Reuters reported Iran was sending positive signals that it may support joint Opec action to prop up the market, before the market pared gains on trade data showing a surprise build in US crude stocks. Brent crude settled up 80 cents, or 1.6%, at US$49.96 a barrel. - Reuters
Top foreign stories
AIG in talks to sell Lloyd's insurance business to CPPIB: American International Group Inc is in early talks to sell Lloyd's of London Ltd's insurance operations to Canada Pension Plan Investment Board (CPPIB), the Wall Street Journal reported on Tuesday. If the deal comes through, it could fetch the insurance conglomerate hundreds of millions of dollars in proceeds, the Journal reported, citing sources. - Reuters
Samsung Electronics says Galaxy Note 7 demand beats supply: Tech giant Samsung Electronics Co Ltd said on Wednesday stronger-than-expected demand for the new Galaxy Note 7 is causing supply constraints globally, suggesting strong initial sales for the premium device. - Reuters
China's Silk Road powers bids for US$1.5b Pakistan utility stake: Chinese state-backed firms are frontrunners to buy a US$1.5 billion controlling stake in Pakistani utility K-Electric, sources said, as they bet the benefits of a Beijing-led economic corridor will trump the risks of investing in Pakistan. - Reuters
China's richest man set to seal two billion-dollar US film deals: Real estate and entertainment conglomerate Dalian Wanda Group Co expects to seal two billion-dollar film-related deals in the United States this year, chairman Wang Jianlin said on Tuesday, as China's richest man steps up his push into Hollywood. - Reuters
Study: UK banks seen losing customers after Brexit: British banks could lose a good number of European and domestic corporate customers in the aftermath of Brexit, a survey from Greenwich Associates showed. About 40% of European companies and nearly 25% of UK companies already have or are planning to reallocate their banking business, the survey said. - Reuters
Top local stories
Sime pares down debt: Sime Darby Bhd
, which has been on deleveraging mode over the past one year to pare down its borrowings, will be ready to return to the market to fund any future expansion plans. This will be after the conglomerate completes its proposed private placement of 5% of its share capital that is expected to raise RM2.37bil, assuming the issuance is done at RM7.51 per share. As of June, Sime’s total borrowings stood at RM15.83bil. - StarBiz
MISC wins RM926mil contract from Chevron: US oil giant Chevron has awarded a US$230mil (RM925.8mil) contract to MISC Bhd’s unit, MISC Offshore Floating Terminals (L) Ltd, for the lease and operations of a floating, storage and offloading vessel in the Gulf of Thailand. The contract is for a duration of 10 years, with an option for up to five extensions of one year each. - StarBiz
MSM’s net profit down on raw material costs: Sugar producer MSM Malaysia Holdings Bhd’s earnings weighed down by higher raw material costs and a weakening ringgit in the second quarter, with net profit declining by 70% to RM23.68mil. Revenue rose 7.74% to RM633.85mil. - StarBiz
SP Setia revises 2016 sales target: SP Setia Bhd has revised its sales target for the year to RM3.5bil from RM4bil previously amid the continued weak sentiment in the Malaysian property market and the global uncertainty caused by Brexit. - StarBiz
TNTT launches takeover of Wong Engineering: TNTT Realty Sdn Bhd, the private vehicle of Tiong Nam Logistics Holdings Bhd managing director Ong Yoong Nyock, has launched a takeover of Wong Engineering Corp Bhd at 65 sen a share. on Tuesday TNTT – a major shareholder of Tiong Nam - and Yong Loy Huat acquired 39.42 million Wong Engineering shares or a 43.07% stake for RM25.62mil. - StarBiz
IOI Corp hit by foreign exchange losses: Plantation firm IOI Corp Bhd slipped into the red during the final quarter of its 2016 financial year with a net loss of RM59mil on lower operating profit and foreign exchange translation losses. The company posted a revenue of RM2.82bil. - StarBiz
MCIL earnings drop to RM20m in first quarter: Media Chinese International Ltd (MCIL) posted a lower net profit of RM20.25mil for its first quarter, versus RM35.64mil a year earlier, on declines in turnover for the media firm’s publishing and printing as well as tour segments. Revenue came in at against RM333.75mil against RM403.05mil previously. - StarBiz
Hartalega net profit margin set to improve: Hartalega Holdings Bhd’s net profit margin for the future quarters is expected to improve, on the back of its cost management exercise and delayed commencement of additional production capacity. “It will not be a high 20% net margin, but it will not decline (from first quarter’s 14%),” Hartalega managing director Kuan Mun Leong said after the company’s AGM. - StarBiz
Censof raises RM33.7mil from sale of DNeX shares, warrants: Censof Holdings Bhd has raised gross proceeds of RM33.7mil from the sale of Dagang Nexchange Bhd (DNeX) shares and warrants. - Bernama
Citibank launches voice biometrics hotline calls: Citibank Bhd has launched a voice biometrics authentication feature for consumer banking customers when calling to the bank’s customer service hotline. Citibank’s clients can opt to enrol by recording their voices when calling into the customer service hotline. - StarBiz
Proton on track to identify partner: Proton Holdings Bhd is working closely with the Government’s Task Force Committee and is on track to identify a strategic partner within the stipulated deadline next year, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said. “Proton will get a strategic partner within the next few months,” he said. - StarBiz
Credit Suisse raises stake in Sona Petroleum: Credit Suisse Group AG has acquired 2.62 million shares in Sona Petroleum Bhd on the open market, increasing its stake to 16.72%. Sona posted a net loss of RM13.39mil in the first half from a net loss of RM6.87mil a year ago. The company did not register any revenue. - StarBiz
Tesco cuts about 600 jobs in Malaysia: Loss-making UK-based retailer Tesco Stores (M) Sdn Bhd, which operates hypermarkets in Malaysia, is retrenching around 600 employees, as part of its transformation and restructuring exercise, an industry source said. - Edge FD
FMM: Switch to higher value products: Pointing out that Malaysia is still lagging behind com- pared to top export nations, the Federation of Malaysian Manufacturers (FMM) has called on manufacturers to go for higher value products in order to further grow the sector. Chairman Tan Sri Saw Choo Boon said manufacturers must move away from lower-end manufacturing, which requires extensive use of low-skilled workers. - Edge FD
Carlsberg Q2 net profit surges 62% to RM51.36m: Carlsberg Brewery Malaysia Bhd’s net profit for the second quarter surged by 62% to RM51.36 million, partly because last year saw a one-time RM12.5 million impairment in relation to the divestment of Luen Heng F&B Sdn Bhd. Revenue contracted 1.62% to RM395.83 million. - Edge FD
Company results announcements on Wednesday
* RHB Bank Q2
* MSM Q2
* Hap Seng Plant Q2
* WCT Q2 briefing
Economic Calendar
* Malaysia’s Consumer Price Index data from the Statistics Department
* Existing home sales for July. Consensus is for minus 1.3%
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