Breakfast briefing: Wednesday, December 28


  • Business
  • Wednesday, 28 Dec 2016

Money needed: Toshiba is restructuring after a US$1.3bil (RM5.38bil) accounting scandal.

MarketWrap: US stocks rose slightly on Tuesday, supported by upbeat consumer and housing data, with gains in technology shares lifting the Nasdaq Composite to a record close. At just over four billion shares traded, it was one of the lowest-volume sessions of 2016. Volume across markets is expected to continue to be weak through the end of the year. - Reuters

The DJIA rose 11.23 points, or 0.06%, to 19,945.04, the S&P 500 gained 5.09 points, or 0.22%, to 2,268.88 and the Nasdaq added 24.75 points, or 0.45%, to 5,487.44.

Forex summary

*The ringgit lost 0.04% to 4.4810 per US$

*It was 0.16% lower at 4.6887 per euro

*Down 0.11% to 5.5059 per pound sterling

*Down 0.03% to 3.0934 per Singapore dollar

*0.11% lower to 3.2236 per Aussie

*0.09% higher at 3.8108 per 100 yen
 
Energy

Oil gained 1.5% on Tuesday, continuing its year-end rally with support from expectations of tighter supply once the first output cut deal between Opec and non-Opec producers in 15 years takes effect on Sunday. Brent crude LCOc1 settled up 93 cents, or 1.7%, to US$56.09 a barrel. - Reuters

Top foreign stories

Toshiba flags hit of 'billions of dollars' on US nuclear acquisition: Toshiba Corp said it may have to book several billion dollars in charges related to a US nuclear power plant construction company acquisition, sending its stock tumbling 12% and rekindling concerns about its accounting acumen. - Reuters

Abbott gets US antitrust approval to buy St Jude Medical: Healthcare company Abbott Laboratories has won US antitrust approval for its proposed US$25 billion acquisition of medical device maker St Jude Medical Inc, the US Federal Trade Commission said on Tuesday. - Reuters

Australia's Woolworths sells petrol chain to BP for US$1.3b: Australia's top grocer Woolworths Ltd said on Wednesday it will sell its chain of petrol stations to BP plc for A$1.8 billion (US$1.3 billion), the latest disposal in a bid to return the company's focus to its core supermarket business. - Reuters

Japan Inc could claim edge in overseas deals as China faces restraints: Japan Inc may become a more important force in dealmaking next year as its cashed-up companies seek to buy growth prospects elsewhere in the world and as Beijing's crackdown on capital outflows prevents some Chinese companies from making foreign acquisitions, bankers and lawyers said. - Reuters

Top local stories

Tang family’s offer for The Store turns unconditional: The Tang family, which is seeking to buy out The Store Corp Bhd, has secured acceptances for 59% of the company’s equity, making their offer unconditional despite its share price closing higher than the fresh offer price of RM3.70 per share. The Store shares closed at RM3.75 on Tuesday. - StarBiz

Bank Negara acts against lender in ringgit fixing case: Actions have been taken against a financial institution for failing to quickly report on an audit finding in relation to its dealers’ misconduct for the fixing of the US dollar-ringgit exchange rate, Bank Negara said. “The finding indicates that there were communications with traders from other foreign financial institutions which included inappropriate references to the fixing rate submission process,” it said. - StarBiz

KFM to raise funds, partners Lotus Essential: Kuantan Flour Mills Bhd (KFM), a PN17 company, is proposing an equity fund-raising exercise and a partnership with coal and starch trader Lotus Essential Sdn Bhd as part of the company’s plan to restructure debt and revamp the business. - StarBiz

Mitrajaya wins RM183mil West Coast Expressway job: Mitrajaya Holdings Bhd has secured a RM183.44mil contract for the construction and completion of civil works for Section 2 of the West Coast Expressway. - StarBiz

Felda to fund Eagle High stake buy with sukuk, loan: The Federal Land Development Authority (Felda) is likely to finance half its purchase of 37% stake in PT Eagle High Plantations Tbk for RM2.26bil through a loan with a major European banking group and balance via a sukuk issuance. - StarBiz

Maxis buys rest of spectrum owner from Astro: Maxis Bhd is acquiring the remaining 25% non-controlling interest it does not own in Advanced Wireless Technologies Sdn Bhd for RM15.83mil cash from Astro Malaysia Holdings Bhd. - StarBiz

PKT Logistics in tie-up to offer e-commerce logistics: PKT Logistics Group Sdn Bhd is teaming up with China IOT Co Ltd to provide e-commerce logistics services and solutions. - StarBiz

Analyst: YNH’s disposal of medical facility timely: Property developer YNH Property Bhd’s move to dispose of a medical facility in Perak for RM63mil was timely, given the less-than-stellar property market outlook, says a property analyst. - StarBiz

UOB Malaysia aims to increase local card base by 13%: United Overseas Bank Bhd (UOB) aims to grow its local credit and debit cards base by 13%. It is also seeking to improve total billings by 14% in the next four years. - StarBiz

GDEx set to ride on region’s booming e-commerce: Kenanga Research says GD Express Carrier Bhd’s (GDEx) is well-positioned to ride on the booming e-commerce in the region, as the industry will undergo a period of robust growth in the coming few years. - StarBiz

Selangor Properties earnings down 88% in Q4: Selangor Properties Bhd posted an 88% decline in net profit to RM57.4mil for the fourth quarter versus a year earlier after an extraordinary gain last year from the disposal of land. Its revenue increased 30% to RM35.5mil due to higher occupancy and rental rental revenue. - StarBiz

UOB survey: Affluent Malaysians now more cost-conscious on holidays: While travelling is important to the rich - with more than nine in 10 affluent Malaysians going overseas on holidays at least once a year - they are becoming more cost-conscious in light of the weak ringgit, a survey by United Overseas Bank (M) Bhd shows. - Edge FD

Foreign fund  ow turns negative again: Malaysian foreign equity fund flows turned negative again last week, with an outflow of RM481.7 million compared to the prior week’s net purchase of RM44 million, says MIDF Research. - Edge FD

Inix posts loss for first quarter: INIX Technologies Holdings Bhd reported a net loss of RM1.97 million for the first quarter compared with a net profit of RM108,000 a year earlier on higher administrative expenses in its core information technology segment that has yet to be realised as income. Its revenue plunged 91.3% to RM103,000 from RM1.19 million previously. - Edge FD

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