CIMB Research was more positive on MSM following the sugar price revision.
Energy
Brent crude was 0.50% lower to US$48.13 per barrel at 3.42pm.
Forex
Ringgit down 0.46% to 4.0708 versus the US dollar at 3.52pm.
Top foreign stories
UK house prices rise, consumers regain some confidence after Brexit hit: British house price rises picked up speed in August and households recovered some confidence which had plunged after June’s Brexit vote, according to surveys that added to signs of calm among consumers after the unexpected referendum result. - Reuters
Experts: G-20 to go long on rhetoric, short on economic policy: G-20 leaders will meet in China this weekend in a climate of economic uncertainty and sluggish global growth - but the absence of an urgent crisis means the forum will be short on breakthroughs, analysts say. — AFP
Taiwan’s Mega Financial chairman submits resignation after US fine: Taiwan’s Mega Financial Holding Co said chairman Shiu Kuang-si has submitted his resignation, in a widening fallout after the company’s banking unit was fined earlier this month for violating US anti-money laundering regulations. — Reuters
Hanjin Shipping to file for receivership; rival eyes assets: South Korea’s Hanjin Shipping Co Ltd said it would file for court receivership after losing the support of its banks, which said funding plan by its parent group was inadequate to tackle the firm’s 5.6 trillion won (US$5 billion) in debt. The country’s financial regulator said a rival operator will look to buy Hanjin’s “good” assets. — Reuters
BoJ will make full use of existing tools to hit price goal: Japan: Bank of Japan (BoJ) board member Yukitoshi Funo said the central bank will make full use of its existing policy tools to encourage household and companies to start spending again and shed their deflationary mindset. — Reuters
Rabobank: Asian F&B margins at risk due to higher sugar prices: A higher sugar price trend is likely to persist over the next few quarters and will substantially impact Asian food and beverage (F&B) corporate margins, a Rabobank report said. It said world raw sugar prices have risen 30% since mid-April, as the market factored in potentially lower global sugar output in 2016/17. — Bernama
China funds cut equity allocations, raise bonds and cash: China fund managers continued to cut suggested equity holdings for the next three months, as they seek to reduce exposure at a time when the market sees limited upside opportunity in a rangebound market, according to Reuters’ latest monthly poll. Eight fund managers cut their recommended equity allocations for the next three months to 71.9% from 76.3% a month ago. — Reuters
Bad Finance: Japan Inc’s problem treasury shares: Too many Japanese companies hoard their own shares. Canon, Fujifilm, Nintendo and other blue-chips own lots of so-called treasury stock. To the uninitiated, that can add billions of phantom dollars onto firms’ valuations. It also distorts incentives for company bosses. — Reuters
JX values takeover of rival oil refiner TonenGeneral at US$3b: JX Holdings Inc, Japan’s biggest oil refiner by sales, has agreed to pay about 352 billion yen (US$3.4 billion) in stock for TonenGeneral Sekiyu KK , the country’s third-largest refiner by sales. The companies said in separate statements that JX would pay 2.55 shares for each TonenGeneral share. — Reuters
What can we learn from Singapore-listed Swiber?: Ramifications from the oil price slump hit Singapore’s shores when Swiber Holdings Ltd, a Singapore-listed marine engineering company, defaulted on a coupon payment early August. According to an S&P Global Ratings executive comment published on Wednesday, two reasons for Swiber’s failure stand out: the protracted oil price slump and its impact on earnings; and the company’s high leverage. — S&P Global Ratings
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