The ringgit , touched a low of 4.4785 per U.S. dollar, according to Reuters data - its weakest level since January 1998, during the height of the Asian financial crisis.
MarketWrap: US stocks fell in low volume on Wednesday in a broad decline triggered in part by a sharp drop in home resales. Contracts to buy previously-owned US homes fell in November to their lowest level in nearly a year, a sign that rising interest rates could be weighing on the housing market. - Reuters
The DJIA fell 111.36 points, or 0.56%, to 19,833.68, the S&P 500 lost 18.96 points, or 0.84%, to 2,249.92 and the Nasdaq dropped 48.89 points, or 0.89%, to 5,438.56..
Forex summary
*The ringgit gained 0.03% to 4.4820 per US$
*It was 0.14% higher at 4.6750 per euro
*Up 0.23% to 5.4829 per pound sterling
*Flat at 3.0903 per Singapore dollar
*0.17% higher to 3.2224 per Aussie
*0.25% lower at 3.8332 per 100 yen
Energy
Crude oil prices edged up for a fourth consecutive session on Wednesday, close to their highest levels since mid-2015, ahead of US oil inventory figures and as the market awaits evidence of Opec supply reductions in the new year. Brent crude futures were up 30 cents at US$56.39 a barrel. - Reuters
Top foreign stories
US shale companies to boost spending as banks loosen purse strings: US shale drillers are set to ramp up spending on exploration and production next year as recovering oil prices prompt banks to extend credit lines for the first time in two years. North America-focused oil and gas producers are expected to increase capital investments by 30% in 2017, according to analysts at Raymond James. - Reuters
Writedown fears wipe US$5b off Toshiba's value as it weighs options: A looming writedown at Japanese conglomerate Toshiba Corp has wiped almost US$5 billion off its value in two days and prompted a credit rating downgrade on Wednesday, as the company grapples to plug a potential multi-billion dollar hole. - Reuters
US fund investors cheer stocks at year's end: Investors' enthusiasm for equities and corporate bonds showed little sign of waning during the latest week, with funds in both categories scooping up more money, data from the Investment Company Institute showed on Wednesday. Stock mutual funds and exchange-traded funds netted US$1.2 billion in the week through Dec. 21, while taxable bond funds added US$1.7 billion, the trade group said. Municipal bond funds, by contrast, posted US$3.9 billion in withdrawals. - Reuters
Top local stories
Ringgit volatility down: Bank Negara’s measure to compel exporters to convert 75% of their pro- ceeds into ringgit is starting to bear fruit, follow- ing lower volatility in the ringgit.
According to central bank statistics, the intraday ringgit movement against the US dollar has averaged around 90 points compared to 228 points in November. And liquidity in the domestic foreign exchange (forex) market has also improved, with the daily average volume rising to around US$9bil (RM40.3bil) in December. - StarBiz
Petronas picks new shipping site for Canadian project: Petroliam Nasional Bhd (Petronas) is seeking to move ahead with a proposed US$27bil liquefied natural gas plant in western Canada after identifying a new site for shipping the fuel, a shift that may help reduce costs and quell local opposition. - Bloomberg
Tariff revision for non-power sector gas supply: Gas Malaysia Bhd
has received the approval from the Government to effect the revision of natural gas tariff for the non-power sector in Peninsular Malaysia from Jan 1 next year to Dec 31, 2019 in line with the Incentive Based Regulation framework. - Bernama
Scientex acquires 49ha in Kulai for RM123.6m: Property developer and packaging manufacturer Scientex Bhd has acquired two parcels of land totalling 49ha in Kulai, Johor, for RM123.6mil, boosting its land bank to 271ha. - Bernama
Ekovest plans RM244m special dividend: Ekovest Bhd plans to make a special payout to shareholders of up to RM244mil, or 25 sen a share, if the company’s proposal to sell a stake in its highway to the Employees Provident Fund materialises. - StarBiz
Econpile unit wins RM158m job: Econpile Holdings Bhd’s wholly-owned subsidiary, Econpile (M) Sdn Bhd (EMSB), has secured a contract under the Projek Penswastaan Lebuhraya Bertingkat Sungai Besi-Ulu Kelang worth RM158.27mil. - StarBiz
KFM de-listing postponed: Kuantan Flour Mills Bhd (KFM), a Practice Note 17 company, said Bursa Malaysia Securities has postponed the trading suspension and de-listing pending the decision on KFM’s appeal for more time to submit a regularisation plan. - StarBiz
Monetisation boost seen for Boustead Plantations: The latest monetisation efforts by Boustead Plantations Bhd is positive for the group as the market may have previously under-appreciated the immense value of its assets, said Maybank IB Research. The company’s efforts to unlock the value of its prime estates will raise RM680mil in cash, it said. - StarBiz
F&B companies under pressure: Food and beverage (F&B) companies in Malaysia will likely remain pressured by margin compression for at least the next two consecutive quarters, says MIDF Research. Controlling raw material costs would be a challenge to F&B companies in the short term due to the normalisation of commodities prices on top of weakening of the ringgit, it said. - StarBiz
Vizione begins corporate restructuring: Vizione Holdings Bhd said its corporate exercise is being undertaken as scheduled, as it has received closure on breaches committed by former directors while the company was still known as Astral Supreme Bhd. - Edge FD
Ire-Tex aborts private placement plans: Ire-Tex Corp Bhd has aborted its planned private placement of up to 10% of its issued share capital to raise up to RM2.94 million, pending further review. - Edge FD
Fitters unit’s IPO aborted due to unsatisfactory performance: Fitters Diversified Bhd said it decided not to proceed with plans to list its wholly-owned subsidiary Future NRG Sdn Bhd on the Catalist board of the Singapore Exchange because the latter’s financial performance was unsatisfactory. - Edge FD
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