Companies like CIMB Group Holdings Bhd, Hong Leong Financial Group Bhd (HLFG) and AmBank Group Bhd may have to beef up their capital structures by 2019.
MarketWatch: A heavy slate of US corporate earnings could set the course this week for a wavering US stock market. Better-than-expected big bank earnings on Friday somewhat helped shore up Wall Street's confidence, which has been shaken by a rocky beginning to third-quarter reporting season, marred by disappointing results from industrial and healthcare companies. - Reuters
Energy
Oil prices fell early on Monday, pulled down by a rising rig count in the United States, record Opec-output, and slowing global economic growth which could erode fuel demand. Brent crude oil futures LCOc1 were down, shedding 20 cents from their last settlement to US$51.75 per barrel. - Reuters
Top foreign stories
Deal with Rosneft is US sanctions-compliant, says Essar Group CEO: The US$12.9 billion sale of India's Essar Oil to a group led by Russia's Rosneft does not run foul of US sanctions imposed against the majority state-owned Russian energy firm, parent Essar Group's CEO said on Sunday. - Reuters
ZTO Express eyes largest Chinese company US IPO since Alibaba: Logistics company ZTO Express has set terms for what could be the largest US initial public offering this year and also the biggest by a Chinese company after the US$25 billion IPO of e-commerce giant Alibaba Group Holding Ltd in 2014. ZTO's IPO later this month could raise as much as US$1.5 billion. - Reuters
Egypt completes long-delayed 4G mobile license deals: Vodafone Egypt and Etisalat Misr signed licensing agreements on Sunday for the operation of 4G mobile broadband networks in Egypt in deals that will allow the country to introduce long-delayed high speed telecoms services. - Reuters
Top local stories
Wah Seong confident Nord job won’t hurt its balance sheet: Oil and gas services firm Wah Seong Corp Bhd is positive it can handle the 600-million-euro (RM2.73bil) job it secured under the Nord Stream 2 Project without straining its balance sheet. The group is close to securing funding from several banks, which analysts have estimated at RM546mil, or 20% of the contract value. - StarBiz
* After cutting its stake in its loss-making oil palm plantation development in Congo, Central Africa, to 49% last year, Wah Seong Corp Bhd is now looking to exit the business. - StarBiz
CIMB Niaga’s share overhang issue resolved: CIMB Group
Holdings Bhd’s 92.5%-owned Indonesia-based subsidiary PT Bank CIMB Niaga Tbk’s share overhang issue appears to be resolved. Together with the recovery in coal prices and continued reforms by the government, the fifth largest bank in Indonesia is well placed to ride on the country’s recovery story. - StarBiz
Highway play adds to Litrak’s allure: The search for yields globally has fuelled expectations that Lingkaran Trans Kota Holdings Bhd (Litrak) could be a prime candidate for a takeover. The Employees Provident Fund and the Retirement Fund Inc are strong possible contenders for Litrak as it gives a stable and predictable cashflow for shareholders amid global uncertainties. - StarBiz
Revamp, NBPOL to drive Sime’s growth: After enduring a tough 15-month spell, Sime Darby Bhd is now on the front foot after an aggressive monetisation exercise which saw it raise nearly RM6bil in fresh capital. Not only will the extra funds allow it to deleverage, the conglomerate will now be able to focus on growing its plantation business while improving the operational efficiency of its core divisions, say analysts. - StarBiz
SCB to bid for Baleh dam transmission line supply: Sarawak Cable Bhd (SCB) is eyeing the supply of power transmission line cables and construction job for the multi-billion ringgit Baleh hydroelectric dam project in the upper Rejang basin, Kapit division in central Sarawak. - StarBiz
BASF Petronas Chemicals invests RM2bil more in Pahang: BASF Petronas Chemicals Sdn Bhd has invested an additional RM2bil for the development of three new plants at its integrated petrochemical complex in Gebeng, Pahang. This brings total investments at the site to RM5.4bil. - Bernama
Shareholders give green light for Matang Bid IPO: Matang Holdings Bhd (MHB) shareholders had unanimously agreed to the proposed initial public offering (IPO) of Matang Bhd in a court convened meeting and EGM in Jphor Baru. Shareholders also approved the proposed exchange of MHB shares for Matang shares. - StarBiz
CIMB likely to sign HoA with China firm: CIMB Group Holdings Bhd is in advanced talks to sell up to 50% stake in its securities business and will likely sign a heads of agreement (HoA) as early as this week for the deal, sources said. - Edge FD
OFS: Most disputes involve insurance claims: Insurance-based claims account for more than half of the disputes brought to the Ombudsman for Financial Services (OFS). The OFS said 10,323 complaints were received in 2015, of which 6,039 (58.5%) were related to insurance claims and the remaining 4,284 (41.5%) were banking claims. - Edge FD
Lazada stays online: Chief executive officer Hans-Peter Ressel said Lazada Malaysia will concentrate on strengthening its online shopping business, rather than building physical stores to complement its online services. - Edge FD
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