Tan Sri Tony Fernandes
MarketWrap: US stocks fell on Tuesday, with financials, transports and other big post-election gainers losing ground as earnings season kicked into gear. Also weighing on stocks were concerns about protectionist trade policies planned by US President-elect Donald Trump. The concerns pushed the dollar to its lowest in more than a month and bond yields down as investors cut risk. - Reuters
The DJIA ended down 58.96 points, or 0.3%, to 19,826.77, the S&P 500 lost 6.75 points, or 0.3%, to 2,267.89 and the Nasdaq dropped 35.39 points, or 0.63%, to 5,538.73.
Forex summary
*The ringgit gained 0.37% to 4.4458 per US$
*It was 0.17% higher at 4.7543 per euro
*Down 1.45% to 5.4918 per pound sterling
*Up 0.27% to 3.1334 per Singapore dollar
*0.33% higher to 3.3534 per Aussie
*0.82% higher at 3.9315 per 100 yen
Energy
Oil prices were little changed on Tuesday as a decline in the US dollar and comments by Saudi Arabia that it would adhere to Opec's commitment to cut output. That offset forecasts that US and Russian producers would boost crude output later this year. Brent futures lost 39 cents, or 0.7% to settle at US$55.47 a barrel. - Reuters
Top foreign stories
Restaurant chain Chuck E. Cheese prepares IPO: The parent of Chuck E. Cheese has begun preparations for an initial public offering (IPO) that could value the US restaurant chain at more than US$1 billion, including debt, sources say. - Reuters
Capital curbs push Chinese firms to risky, costly dollar bonds: China's efforts to support its currency and cool its hot property market are encouraging more Chinese companies, including many state firms, to take on extra cost and risk by raising foreign-currency bonds in Hong Kong and other offshore locations. - Reuters
Deutsche Bank signs US$7.2b deal with US over risky mortgages: Deutsche Bank finalised a US$7.2 billion settlement with the US Department of Justice over its sale of toxic mortgage securities in the run-up to the 2008 financial crisis, the government agency said on Tuesday. - Reuters
Xi makes case for Chinese leadership role: Chinese President Xi Jinping offered a vigorous defence of free trade at the World Economic Forum in Davos on Tuesday in a speech that underscored Beijing's desire to play a greater global role as the United States turns inward. Xi also cautioned other countries against blindly pursuing their national interests, in an apparent reference to the "America first" policies of Donald Trump. - Reuters
Top local stories
Changes in Felda: New Felda chairman Tan Sri Shahrir Samad has promised a major shake- up at the Federal Land Development Authority (Felda) in a bid to improve the governance and financial performance of the government entity. Monetising assets and achieving returns from new ventures are the key responsibilities faced by Shahrir. - StarBiz
AirAsia expects binding bids by March: AirAsia Bhd expects to get binding bids for its aircraft-leasing unit by March, group chief executive officer Tony Fernandes said. The airline expects to close the deal this year and the board would decide whether to use the proceeds to pare debt or pay a dividend, Fernandes said in a Bloomberg Television interview. - Bloomberg
Ekovest unit to undertake road project worth RM6b: An Ekovest Bhd subsidiary will undertake the construction of 72.5km of roads in Kuala Lumpur, which will link the Kampung Baru link, Istana link and Kapar link expressway at a total project cost of RM6.32bil. - StarBiz
Margma: Medical glove demand reaches critical level: Demand for medical gloves is not only growing but has reached a critical situation as some countries are badly hit by the bird flu and are running out of stock, says the Malaysian Rubber Glove Manufacturers Association (Margma). It is optimistic of the usual eight to 10% annual growth for medical gloves. - StarBiz
Onshore forex market hits US$40b daily average volume: Financial markets continue to see healthy activities, with the onshore foreign exchange (forex) market recording a daily average volume of US$9.2bil (RM40.48bil) across all types of forex transactions, says Bank Negara. - StarBiz
Berkshire Hathaway wins reinsurance licence in Malaysia: Warren Buffett’s Berkshire Hathaway has won a licence to provide reinsurance services in Malaysia, as it expands operations in Asia. Berkshire Hathaway Specialty Insurance Company said it has established an office in Kuala Lumpur to provide the non-life reinsurance services. - Reuters
Matang chairman confident of better outlook for crude palm oil: Matang Bhd expects to register a strong performance this year on favourable crude palm oil (CPO) prices and robust demand. The newly listed group is also looking at transforming from a small firm into a mid-tiered plantation company, says chairman Datuk Teh Kian Ming. - StarBiz
Higher palm oil export revenue seen: Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong said the ministry expects palm oil prices to remain at high levels of RM2,700 to RM2,800 per tonne this year and this will result in an overall increase in export revenue. - StarBiz
Perodua to boost capex to RM557m this year: Perusahaan Otomobil Kedua Sdn Bhd (Perodua) will be ramping up its capital expenditure (capex) this year to RM557mil from RM492mil in 2016 to modernise its existing plant and upgrade its dealer network, says president and chief executive officer Datuk Aminar Rashid Salle. - StarBiz
JV to build RM3.5bil housing project called off: The proposed collaboration between Malaysia’s and Indonesia’s top property developers - Sime Darby Bhd, SP Setia Bhd, Permodalan Nasional Bhd’s unit I&P Group Sdn Bhd and PT Hanson International Tbk - to develop a RM3.5bil housing project in Jakarta has been cancelled. - StarBiz
Bank Negara seen standing pat to stabilise ringgit: Bank Negara is expected to keep its benchmark rate steady on Thursday as policymakers work to stabilise a fragile ringgit currency and support an economy that is just starting to pull ahead after well over a year of slowing growth. - StarBiz
Govt-linked fund in preliminary talks to buy SILK highway: SILK Holdings Bhd s believed to be in preliminary talks with a government-linked fund which has expressed interest in the asset, say sources. Trading in its shares are suspended pending a material announcement. - Edge FD
EPF to allocate RM50b more to Islamic fund in 2018: The Employees Provident Fund (EPF) will allocate a further RM50 billion to its Islamic fund in 2018, potentially boosting the domestic Islamic finance market. The additional injection is more than the RM20 billion to RM30 billion the fund had estimated that it would allocate for 2018. - Reuters
Events calendar
Concrete Engineering Products
Bhd AGM
Points of interest to be raised by MSWG:
* What is the status of the group’s order book and potential orders from new projects in Malaysia and regionally;
* What are the board’s strategies for export sales, given they have dropped by 56%; and
* What new markets other than Myanmar and Nigeria is the company exploring.
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