Innovative product: A unit for the i-DCD drive motor, the world's first electric motor for hybrid cars that uses no heavy rare earth metals, jointly developed by Honda Motor Co and Daido Steel Co.
MarketWrap: Major stock markets around the world fell on Monday and US and European bond yields slipped from four-month highs amid uncertainty over the health of the global economy. US stocks fell as declining oil prices pushed energy stocks down and consumer discretionary shares stumbled. - Reuters
The DJIA fell 51.98 points, or 0.29%, to 18,086.4, the S&P 500 lost 6.48 points, or 0.3%, to 2,126.5 and the Nasdaq dropped 14.34 points, or 0.27%, to 5,199.82.
Forex summary
*The ringgit gained 0.34% to 4.2035 per US$
*It was 0.04% higher at 4.6318 per euro
*Down 0.37% to 5.1531 per pound sterling
*Up 0.01% to 3.0333 per Singapore dollar
*0.52% lower to 3.2231 per Aussie
*Up 0.28% to 4.0487 per 100 yen
Energy
Oil prices settled down on Monday, weighed by oversupply concerns, with a spike in trade volume driving US prices below US$50, but losses were limited amid a projected drop in American shale output. Brent crude fell 43 cents, or 0.8%, from the last settlement to close at US$51.52 per barrel, after hitting a session low of US$51.16 a barrel. - Reuters
Top foreign stories
Deutsche Bank to pay US$38m in US silver price-fixing case: Deutsche Bank AG has agreed to pay US$38 million to settle US litigation over allegations it illegally conspired with other banks to fix silver prices at the expense of investors, according to court papers filed on Monday. - Reuters
IBM third-quarter revenue falls, but tops forecasts on cloud, analytics growth: International Business Machines Corp posted better-than-expected third-quarter revenue on Tuesday, helped by growth in the company's cloud and analytics businesses. Revenue rose 16% to US$8 billion in the third quarter. Cloud revenue jumped 44% compared with a 30% rise in the second quarter, it said. - Reuters
Fed 'very close' to employment, inflation goals: Fischer: The Federal Reserve is "very close" to its US employment and inflation targets, Fed vice-chair Stanley Fischer said on Monday, as he warned against making rash changes to the policy framework in an effort to boost economic growth. - Reuters
Honda to build new factory in China for compact cars: Honda Motor Co will build a new factory in Wuhan, China, that would begin producing compact cars in spring 2019, boosting its output capacity in the country by about a fifth, the Nikkei business daily said on Tuesday. Japan's third-largest automaker by sales will spend "hundreds of millions of dollars" on the plant, which will start with capacity of 120,000 cars a year and gradually double in line with demand, the paper said. - Reuters
Hyundai Merchant Marine considering bid for Hanjin's Asia-US route operations: South Korean shipper Hyundai Merchant Marine Co Ltd said on Tuesday it is considering submitting a preliminary bid for Hanjin Shipping Co Ltd's Asia-to-U.S. route operations. Hanjin put up the operations, which would include manpower systems, five container ships and 10 overseas businesses, for sale last week. - Reuters
Icahn says a lot of S&P 500 companies 'way overvalued’: Billionaire investor Carl Icahn warned on Monday that many S&P 500 companies are "way overvalued," considering soft-to-weakening economic growth in the United States as well as in emerging markets. Icahn said he is cautious about the US stock market on a long-term basis, but on the short-term period, it is "anybody's guess.” - Reuters
Top local stories
Mokhzani and KC Yeow part ways: The two principal owners of Kencana Capital Sdn Bhd – Tan Sri Mokhzani Mahathir and Datuk Yeow Kheng Chew, better known as KC Yeow - are splitting their business interests in the investment holding company as part of a large scale restructuring. Part of the reshuffle involves the buyout of Yeow’s stake in Kencana Capital. In turn, he is acquiring Kencana’s stake in Yinson Holdings Bhd
. - StarBiz
Puncak Niaga ventures into palm oil ops in Sarawak: Puncak Niaga Holdings Bhd is going into the palm oil business in Sarawak via its 60%-owned subsidiary. It said Danau Semesta Sdn Bhd had entered into an agreement to acquire Shin Yang Holding Sdn Bhd’s plantation company Danum Sinar Sdn Bhd for RM446.5mil cash. Danum Sinar has 46,674ha of plantation land in Murum, Sarawak. - StarBiz
Uncertainty still surrounds O&G sector: The Organisation of the Petroleum Exporting Countries (Opec)’s planned output cut has not convinced analysts that the sector would turn around any time soon. The Opec move may not be enough to improve local oil and gas (O&G) services players’ earnings, as the anticipated oil price improvement is not expected to lift oil producers’ capital expenditure significantly, at least in the medium term. - StarBiz
CIMB, China Galaxy sign pact on stockbroking JV: CIMB Group Holdings Bhd and China Galaxy Securities Co Ltd are looking at starting a 50:50 joint venture in the stockbroking business. The JV will place CIMB in a strong position to capitalise on China-outbound mergers and acquisitions, as well as other capital market activities. - StarBiz
Orion wants to buy rival ASAP for RM73mil: Orion IXL Bhd, an IT company formerly known as CWorks Systems Bhd, is proposing to acquire rival ASAP Bhd for RM73mil. Orion will pay RM39mil in cash and issue new rights shares that come with free detachable warrants to settle the deal. - StarBiz
Disposals to reduce MRCB debts by almost 50%: The sale of a highway to Johor that forms a vital link to Singapore and an office building in Kuala Lumpur is expected to shave off almost 50% of Malaysian Resources Corp Bhd’s (MRCB) debts. Sources said the company was looking cut its gearing 0.7 times from 1.28 times once the sale of the Eastern Dispersal Link and the disposal of Menara Shell to its real estate investment trust are completed. - StarBiz
CIMB Thai unit posts Q3 net profit of RM52mil: CIMB Group Holdings Bhd said its Thai commercial banking unit CIMB Thai Bank Plc posted a lower net profit of 431 million baht (RM51.5mil) in the third quarter, despite steady operating income, as it set aside more money to cover potential loan losses. - StarBiz
CPO soars on bullish near-term price outlook: The price of crude palm oil (CPO) climbed to its highest level since March, boosted by bullish near-term price outlook for the edible oil. The third month CPO futures contract on Bursa Derivatives rose RM110 on Monday to close at RM2,768 a tonne. - StarBiz
Miti: Car sector ‘under control’, no special measures needed: The current challenging situation in the local car sector is still “under control” and does not necessitate any special measures to boost sales, said the International Trade and Industry Ministry (Miti). - Bernama
Genting family dispute: Grandson wins 2nd round: In the latest development in the family feud between the sons and three grandchildren of Genting Bhd founder, the late Tan Sri Lim Goh Tong, the Court of Appeal on Monday ordered the disclosure of the Tee Keong Family Trust deed. The discretionary trust was set up by Goh Tong in 1990 for his son, the late Datuk Lim Tee Keong, and his family. - Edge FD
TH Heavy denies defaulting on RM170m sukuk: TH Heavy Engineering Bhd denied it had defaulted on its non-rated sukuk murabahah, which has a nominal value of RM170 million. TH Heavy said the variation of terms to extend the maturity date of the Islamic bond by one year from Sept 30 this year to Sept 29 next year, had earlier been approved by the sukuk holders. - Edge FD
Spotlight on revenue- boosting measures: Malaysian rating agencies are expecting revenue-boosting measures to be in the spotlight for Budget 2017, as government revenue remains subdued while expenditure remains high. Malaysian Rating Corp Bhd noted that government rev- enue declined 10% year-on-year for the first half of 2016, while overall expenditures rose by 5.4%, leading to higher-than-expected budget deficits for the period. - Edge FD
KPJ to build RM67.6m hospital in Johor: KPJ Healthcare Bhd plans to develop a five-acre (2.02ha) land in Batu Pahat, Johor into a RM67.6 million hospital to be known as KPJ Batu Pahat Specialist Hospital. - Edge FD
Green Packet plans private placement to raise up to RM14.5m: Green Packet Bhd has proposed to undertake a private placement of up to 10% of its capital to raise up to RM14.5 million for product and business development, future investments and working capital. - Edge FD
Takaful Malaysia’s Q3 net profit jumps 30%: Syarikat Takaful Malaysia Bhd recorded a 30% jump in its net profit to RM44.86 million for the third quarter due to higher sales generated by both the family takaful and general takaful businesses as well as higher wakalah fee income. Revenue rose 10% to RM426.97 million. - Edge FD
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