Wednesday, July 19th, 2017


US appeals court voids Libor convictions of ex-Rabobank traders

NEW YORK, July 19 — A federal appeals court today overturned the convictions of two former London traders in what had been the US Department of Justice’s first criminal trial stemming from the worldwide probe into the manipulation of the…

US tech stocks lift Nasdaq, S&P to new highs; IBM weighs on Dow

NEW YORK, July 19 — The Nasdaq and the S&P traded at record levels in late morning trading today, powered by technology and healthcare stocks, while IBM capped gains on the Dow. IBM fell 3.7 per cent after the company’s quarterly revenue…

19/07/2017 23:02:02

19/07/2017 22:33:23

China multi-billion dollar hotel sale in last minute change

BEIJING, July 19 — Chinese conglomerate Wanda will sell almost 80 hotels to Guangzhou-based R&F Properties instead of developer Sunac China in a last-minute change to one of the country’s largest ever property deals. The news follows reports…

Oil steadies amid mixed signals on US crude inventories

NEW YORK, July 19 — Oil was steady amid mixed signals on US crude inventories, with industry data showing supplies increased last week while government statistics were expected to show a decline. Futures were little changed in New York after…

Murdochs warn UK a delay to Sky-Fox deal could hit inward investment

LONDON, July 19 — James and Lachlan Murdoch urged the British government to let their company buy pay-TV group Sky , saying today that further delays to the US$15 billion (RM64.3 billion) deal could sour the climate for foreign investment in…

Singtel’s NetLink makes muted debut

SINGAPORE: NetLink NBN Trust units closed steady at their offer price yesterday, although analysts said the muted debut was not a surprise given the large size of the listing and that the outlook for Singapore's initial public offering (IPO) market remained positive.

The city-state has been previously pegged as the likely hot spot for IPOs in Southeast Asia in 2017 with sales of stakes in business and real estate investment trusts (REITs), as volatile currencies and weak investor sentiment curb deals elsewhere.

The US$1.7 billion (RM7.2 billion) NetLink IPO, the largest in Singapore in
four years and which has propelled listings in the country in terms of money raised to a multi-year high, is a shot in the arm for the Singapore Exchange (SGX) that has been trying to attract more big-ticket IPOs.

SGX is encouraged by the larger transactions done for this year and the potential listings due later this year, its head of equities and fixed income, Chew Sutat, said.

“We have already exceeded the total primary and secondary funds raised from last year. Beyond the REITs and business trusts, the consumer and healthcare sectors continue to do well,” he told Reuters.

In recent years, SGX has become an attractive destination for companies to list their global assets by way of REITS or business trusts, as yields of as much as 6-7% draw in strong participation from retail and institutional investors amid relatively low interest rates.

Australia's Cromwell Property Group is aiming to launch a more than US$1 billion Singapore REIT IPO later this year and has hired three banks so far, financial sources said.

The REIT will include a portfolio of European offices, industrial and office assets, giving investors access to a large European footprint. Cromwell declined to comment.

Following the NetLink offering, the total amount raised via IPOs in Singapore this year has already hit about US$2 billion, Thomson Reuters data shows. That is more than last year's U$1.7 billion and the highest since at least 2014 when companies raised US$2.56 billion.

NetLink, the broadband unit of Singapore Telecommunications (Singtel), had offered 2.9 billion units in its IPO, at S$0.81 apiece, raising about S$2.3 billion (RM7.2 billion).

The offering had been priced at the lower end of its indicative S$0.80-S$0.93 range.
“As a business trust, the future cash flow is predictable, so there is a lack of imagination on this kind of IPO,” said Margaret Yang, a market analyst at CMC Markets, Singapore.

Analysts said the size of the IPO had lowered the possibility of a price surge on the first day.

According to Thomson Reuters data, the NetLink IPO is the biggest since Mapletree Greater China Commercial Trust's 2013 offering raised US$2.06 billion.
NetLink rose to S$0.815 per unit before closing at S$0.810.

Singtel owns 24.99% of NetLink after the IPO.

Singapore is a major financial centre but the city-state's only stock exchange has long experienced low trading volumes and weaker valuations compared with Hong Kong, which in turn has been a deterrent for companies seeking IPOs. To counter this, the bourse is considering several measures, including looking at whether it should introduce dual-class share listings. – Reuters

UK’s May seeks to ease Brexit fears at new business council

LONDON, July 19 — Prime Minister Theresa May will chair a discussion on Brexit and the economy at the first meeting of a new business council tomorrow, a bid to rebuild bridges with companies concerned over UK’s departure from the European…

Capitaland Malaysia Mall Trust registers slightly lower net property income

PETALING JAYA: CapitaLand Malaysia Mall Trust (CMMT) registered net property income (NPI) of RM59.8 million for the second quarter ended June 30, 2017, slightly lower than the RM60 million for the corresponding period last year.

Its manager CapitaLand Malaysia Mall REIT Management Sdn Bhd (CMRM) said this largely due to lower contribution from the Klang Valley shopping malls, namely Sungei Wang Plaza, Tropicana City Mall and The Mines, which was mitigated by stronger performance from Gurney Plaza and East Coast Mall.

Distributable income for 2Q 2017 was RM41.9 million and distribution per unit (DPU) was 2.06 sen.

The total DPU for the period from Jan 1 to June 30, 2017 (1H 2017) was 4.14 sen and the annualised DPU of 8.35 sen for 1H 2017 translates to an annualised distribution yield of 5.4%, based on CMMT's closing price of RM1.55 per unit on July 18, 2017.

As CMMT's DPU is paid out on a half yearly basis, unitholders can expect to receive their 1H 2017 DPU on Aug 25, 2017.

“Lifted by stronger domestic demand, the Malaysian economy expanded 5.6% in the first quarter of 2017, and is projected to grow 4.3% to 4.8% for the full year. However, retail sales in 1Q 2017 have yet to recover and have fallen by a further 1.2% year-on-year. In light of the prevailing cautious consumer sentiment and increasing competition brought on by new malls, the operating environment for the retail industry is expected to remain challenging. Despite this, we remain positive that our portfolio of well-diversified necessity malls will continue to deliver sustainable income distribution for unitholders in the long term,” CMRM Chairman David Wong.

Its CEO Low Peck Chen said for the quarter under review, the increased contributions of Gurney Plaza and East Coast Mall helped to moderate the lower contributions from its Klang Valley malls, which were impacted by increased competition in the area and higher costs of living. Amidst a challenging operating environment, all its malls achieved a committed occupancy level of above 90%, and on the whole, its portfolio occupancy stood at a healthy 95.8% as at June 30, 2017.