MarketWrap: US equities touched record highs on Tuesday and the dollar rose to its highest level in 14 years as markets shrugged off risk aversion and continued the rally that has elevated Wall Street since Election Day. - Reuters
The DJIA rose 91.56 points, or 0.46%, to 19,974.62, the S&P 500 gained 8.23 points, or 0.3%, to 2,270.76 and the Nasdaq added 26.50 points, or 0.49%, to 5,483.94.
Forex summary
*The ringgit was up 0.07% at 4.4765 per US$
*It was 0.05% lower at 4.6537 per euro
*Up 0.11% to 5.5359 per pound sterling
*Down 0.08% to 3.0983 per Singapore dollar
*0.34% lower to 3.2494 per Aussie
*0.04% higher at 3.7988 per 100 yen
Energy
Oil prices edged higher on Tuesday on forecasts of a steep draw in US crude oil stocks that could indicate a global oversupply is starting to shrink. International Brent crude oil futures rose 64 cents to US$55.56 per barrel at 2156 GMT. - Reuters
Top foreign stories
Linde, Praxair agree US$65b merger outline, ambitious cost savings: German industrial gases group Linde and U.S. suitor Praxair have agreed an outline for a US$65 billion-plus merger, with the combined company to be run out of the United States by Praxair chief executive Steve Angel. - Reuters
Monte dei Paschi's new debt swap offer raises 500 million euros: Italy's Monte dei Paschi di Siena has raised around 500 million euros as of Tuesday in a voluntary debt-to-equity offer that is a key part of a last-ditch attempt to raise 5 billion euros (US$5.2 billion) and avert state intervention, a source close to the matter said. - Reuters
Sanofi's takeover talks with Actelion progressing: Talks between Actelion and Sanofi are making progress, despite investors' fears that the Swiss biotech firm's chief executive and founder might not want to sell, a person with direct knowledge of the situation said on Tuesday. - Reuters
Allergan to buy Acelity's tissue unit LifeCell for US$2.9b: Drugmaker Allergan Plc said on Tuesday it would buy LifeCell, a regenerative medicine unit owned by privately held Acelity LP Inc, for US$2.9 billion in cash, bringing the number of deals it has made this year to an even dozen. - Reuters
Top local stories
Bursa to do better in 2017: Shares on Bursa Malaysia will likely trend higher next year, with some analysts expecting the FBM KLCI to end 2017 at around 1,720-1,750 points. The positive trend, said experts, is due in part to the expected rebound in corporate earnings from a low base and the prevailing inexpensive valuations of the Malaysian bourse. - StarBiz
Johari: Malaysia won’t bring back capital controls: Malaysia vowed it won’t bring back capital controls to stem the currency’s slump to its lowest since the 1998 Asian financial crisis and is confident the economy can weather the market rout. Authorities don’t have plans to peg the ring- git and restrict foreign flows, says Second Finance Minister Datuk Johari Abdul Ghani. - Bloomberg
NSA to make MGO in reverse takeover of Goodway: NSA Technology Sdn Bhd has decided not to seek an exemption from making a mandatory general offer (MGO) for shares in rubber products maker Goodway Integrated Industries Bhd (GIIB) under revisions made to its reverse takeover exercise, which also involve putting a higher price tag on the NSA unit to be injected into GIIB. - StarBiz
Lower net profit for BLand in Q2: Berjaya Land Bhd’s (BLand) net profit for the second quarter dropped 15.42% to RM180.47mil on a 0.6% jump in revenue to RM1.62bil. Earnings per share fell to 3.62 sen from 4.17 sen a year earlier. - StarBiz
Yinson Q3 earnings down 26.4% to RM63m: Yinson Holdings Bhd’s net profit for the third quarter was down 26.4% to RM63.11mil due to lower impairment in receivables and favourable fair value in derivative contracts, but was set off by lower favourable foreign-exchange movement. Revenue was up 15.56% to RM127.94mil. - StarBiz
George Kent secures RM365m Putrajaya hospital job: George Kent (M) Bhd has been awarded an RM364.9mil contract to design and build a 220-bed endocrine hospital in Precinct 7, Putrajaya, by the Works Ministry. The the contract would bring the group’s total order book to over RM6.2bil, its all-time high. - StarBiz
HLT Global plans to set up factory: HLT Global Bhd, a glove-dipping lines maker which is aiming to be the first company to list on Bursa Malaysia in 2017, intends to use proceeds from its initial public offer to set up a new factory. It is also planning to venture into Vietnam next year. - StarBiz
Auto sector may hit lowest sales in 6 years: Malaysian automotive sales look set to hit its lowest in six years, as weak economic conditions and cautious consumer sentiment have emphatically slammed the brakes on growth. Most industry observers believe that the total industry volume for this year won’t hit 600,000 units. - StarBiz
Johor going all out to lure more investors from Taiwan: Johor is going all out to strengthen bilateral ties with the Taiwanese government to attract more investors it the state. Johor Domestic Trade, Tourism and Consumerism Committee chairman Datuk Tee Siew Kiong said Taiwan would be another area of focus for the state to attract new investments. - StarBiz
Eaglexpress second airline with wings clipped: Eaglexpress Air Charter Sdn Bhd has become the second airline to lose its licence this year after it failed to comply with certain conditions imposed by the Malaysian Aviation Commission (Mavcom) within the stipulated deadlines. Mavcom said Eaglexpress’ air service permit is no longer usable effective Wednesday. - Edge FD
Felcra to restructure before considering IPO: Felcra Bhd said it will be focusing on restructuring and strengthening its operations — which includes a proposed venture into property development — before the group considers any potential listing of its subsidiaries. The group is looking into three key business areas to be developed going forward. - Edge FD
* Felcra said it retracted its interest in Kuantan Flour Mills Bhd “to avoid further public misconception of the matter”. It said it was “caught by surprise” when KFM disclosed the proposal to the bourse, as KFM did not issue a formal response to Felcra prior to the announcement.
Lay Hong mulls price hike for eggs, frozen products: Integrated poultry company Lay Hong Bhd
is mulling over price increases for all its products to counter a weakening ringgit and rising operating costs. Executive director Yap Chor How said a stronger US dollar had resulted in a higher import cost for poultry feed such as corn. - Edge FD
Upbeat prospects for palm oil in 2017: Analysts expect next year’s oil palm output to rise by at least 10% compared with this year as the El Nino drought effect has come to an end. The average price for 2017 is also expected to be slightly higher, at above RM2,600 a tonne. - Edge FD
Priceworth delays placement exercise: Priceworth International Bhd has delayed the its private placement exercise as potential investors required time to obtain the necessary internal ap- provals. Priceworth said the proposed private placement is now expected to be completed by end-January 2017. - Edge FD
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