Aircraft flies over a Wal-Mart billboard in Mexico City March 24, 2015. REUTERS/Edgard Garrido/File Photo
MarketWrap: US stocks rose to fresh record highs on Tuesday, boosted by strong earnings reports from Wal-Mart and Home Depot and continued optimism about the economic agenda of President Donald Trump. - Reuters
The DJIA rose 118.95 points, or 0.58%, to 20,743, the S&P 500 gained 14.22 points, or 0.60%, to 2,365.38 and the Nasdaq added 27.37 points, or 0.47%, to 5,865.95.
Energy
Oil prices ended about 1% higher after touching three-week highs on Tuesday on Opec's optimism for greater compliance with its deal with other producers including Russia to curb output in an effort to clear a glut that has weighed on the market. Brent crude LCOc1 ended the session at US$56.66 a barrel, up 48 cents or 0.9%, after hitting its highest since Feb 2 at US$57.31. - Reuters
Forex summary
*The ringgit lost 0.04% to 4.4592 per US$
*It gains 0.04% to 4.7068 versus euro
*Down 0.68% to 5.5759 per pound sterling
*Down 0.25% to 3.1434 per Singapore dollar
*0.61% lower to 3.4318 per Aussie
*0.22% lower at 3.9293 per 100 yen
Top foreign stories
Verizon, Yahoo agree to lowered US$4.48b deal following cyber attacks: Verizon Communications Inc said on Tuesday it would buy Yahoo Inc's core business for US$4.48 billion, lowering its original offer by US$350 million in the wake of two massive cyber attacks at the internet company. - Reuters
Higher customer traffic boosts Wal-Mart's sales in holiday quarter: Wal-Mart Stores Inc reported higher-than-expected US sales on Tuesday for the crucial holiday quarter as its low prices attracted more customers to its stores and online activity accelerated. The company said US comparable sales rose 1.8%, excluding fuel price fluctuations, during the fourth quarter ended on Jan. 31. Analysts on average were expecting a 1.3% increase. Reuters
Saudi Aramco selects lead underwriters for US$100b IPO: Oil giant Saudi Aramco has selected JPMorgan Chase & Co, Morgan Stanley and HSBC Holdings Plc as lead underwriters on the firm's planned initial public share offering, the Wall Street Journal reported, citing sources. Saudi authorities are aiming to list up to 5% of the world's largest oil producer on both the Saudi stock exchange and one or more international markets in an IPO that could raise US$100 billion. - Reuters
Wall Street challenges US regulator over proposed commodities rule: Wall Street is pushing back against a proposed rule to force US banks like Goldman Sachs Group Inc to hold more capital against investments in commodities, placing what some see as an overly restrictive limit on banks' ties to the sector. - Reuters
Top local stories
Petronas clears the air on partnerships: Petroliam Nasional Bhd (Petronas)’s discussions with potential equity partners for its projects are driven by its interest in bringing in new technologies, as well as diversifying risks in exploration activity. “We never take on a project with the view that we have to depend on investors for funding to complete the project,” says president and chief executive Datuk Wan Zulkiflee Wan Ariffin. - StarBiz
O&G consolidation not moving fast enough: There still needs to be more consolidation in the oil and gas (O&G) industry, says Petronas chief. Citing O&G fabrication yards in Malaysia, Datuk Wan Zulkiflee Wan Ariffin explained that while there were eight of them, the oil company’s requirements for the next few years would only be sufficient to cater to the optimum utilisation of two to three fabrication yards. - StarBiz
Ann Joo posts 2016 net profit of RM167m: Ann Joo Resources Bhd turned around in the fourth quarter with a net profit of RM45.9mil, from a net loss of RM47.7mil a year earlier. Revenue came in at RM472.1mil, up 14.1%. For the full 2016 financial year, the company posted a net profit of RM166.7mil versus a net loss of RM135.5mil in 2015. - StarBiz
Serba Dinamik buys 40% stake in Konsortium Amanie: Serba Dinamik Holdings Bhd is buying a 40% stake in water treatment plant builder Konsortium Amanie JV Sdn Bhd for RM34mil cash from FCA Capital Sdn Bhd and Mirmas Holding Sdn Bhd. The stake purchase would see the company leveraging on Konsortium Amanie’s RM1.31bil contract from the Terengganu government. - StarBiz
HLB sees better net interest margin: Hong Leong Bank Bhd (HLB) expects its net interest margin (NIM) to be better than initially anticipated for its financial year ending June 30, 2017, driven by loan pricing and better cost of fund management. The lender has revised its NIM target for FY17 to more than 2% from the initial target of 1.9%. - StarBiz
China operations continue to weigh on Parkson: Parkson Holdings Bhd posted earnings of RM72.66mil in the second quarter due to exceptional gains, as the department store’s financial performance continued to be weighed down by its China operations. Its revenue was slightly higher at RM1.05bil compared with RM1.04bil a year ago. - StarBiz
Carlsberg net profit at RM204.9mil in FY16: Carlsberg Brewery Malaysia Bhd posted a net profit of RM204.9mil for the financial year ended Dec 31, 2016, down 5% on the previous year, as it took a share of loss of RM5.1mil from associate company Lion Brewery (Ceylon) Plc. Revenue rose 1.2% to RM1.68bil, mainly driven by higher export sales and a price increase in the domestic market despite lower sales in subsidiary Carlsberg Singapore Pte Ltd. - StarBiz
EC opens second bidding process for solar PV plants: The Energy Commission (EC) is conducting a second competitive bidding process for companies to build large scale solar photovoltaic (PV) plants in Peninsular Malaysia and Sabah/ Labuan. - StarBiz
UEM Sunrise unit eyes over RM750m GDV: UEM Sunrise Bhd unit Sunrise Innovation Sdn Bhd will develop the Malay College Old Boys Association (MCOBA)’s land in Kuala Lumpur into a mixed development project, with a gross development value (GDV) of over RM750mil.
The group said its unit would build two blocks of serviced apartments, with supporting facilities. - StarBiz
Strong results for IOI Prop in Q2: IOI Properties Group Bhd (IOI Prop)’s second-quarter revenue jumped 34% to RM1.19bil, mainly boosted by its property development segment. Its net profit fell 11% to RM273.5mil on a fall in the share of results from its joint ventures derived from a net fair value gain of RM121mil. - StarBiz
AllianceDBS cautious on top lenders’ Indonesia ops: The outlook for Malayan Banking Bhd’s (Maybank) and CIMB Group Holdings Bhd’s Indonesian operations could still be hazy this year, impacted by asset quality issues, despite the banking arms’ healthy results for the financial year ended Dec 31, 2016 . AllianceDBS Research remained cautious on PT Bank CIMB Niaga Tbk and PT Maybank Indonesia, saying that apart from unresolved asset quality issues in Indonesia, pressure on net interest margins may possibily dent topline growth. - StarBiz
Pharmaniaga turns in lower earnings: Pharmaniaga Bhd’s earnings fell 45.7% to RM45.6mil in the financial year ended Dec 31, 2016, impacted by higher operating expenses and finance costs. Revenue was flat at RM2.19bil. - StarBiz
PSA, Geely submitted bids for stake in Proton: France’s PSA Group and China’s Zhejiang Geely Holding Group Co have submitted bids to buy a stake in money-losing Proton Holdings Bhd, say sources. Negotiations are still preliminary, with bids being evaluated and claried, said one of the peo- ple. - Bloomberg
Mercury Industries bags RM238m construction job: Mercury Industries Bhd
’s 70%-owned construction unit Paramount Bounty Sdn Bhd has won a mixed development project worth RM238 million in Gombak, Selangor. The project comprises 1,632 units of small office home office and 32 shoplots. - Edge FD
Melati Ehsan looks to affordable housing: Melati Ehsan Holdings Bhd plans to develop more affordable housing around the Klang Valley area to lessen its dependence on its construction segment, which has not been doing well due to intense competition, says group managing director Tan Sri Yap Suan Chee. The group wants to achieve construction and property development revenue contribution at around 50% each. - Edge FD
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