Friday, November 10th, 2017

 

Wall Street down on signs of delay in corporate tax cuts

NEW YORK, Nov 10 — Wall Street edged lower at the open today hurt by signs of delay in corporate tax cuts until 2019, which may stall the market rally. Senate Republicans have unveiled a tax-cut plan that would delay lowering corporate rate to…


Berjaya Land’s BCity Project to resume following High Court decision

PETALING JAYA: Berjaya Land Bhd (BLand) will resume the development and construction of the BCity Project and the equestrian centre following the Shah Alam High Court's judgment in its favour.

In a filing with Bursa Malaysia today, BLand said the application for judicial review, which was heard on Sept 29, 2017, was decided by the High Court in favour of the applicants, namely BLand, Berjaya Tagar Sdn Bhd (BTSB) and Berjaya City Sdn Bhd (BCity).

The judgment was rendered by the High Court yesterday (Nov 9) and is pending receipt of the official grounds of judgment and fair order of the High Court.

Based on the notes of proceedings, the High Court ruled that the applicants had a legitimate expectation that the site would be constructed and developed for the BCity Project, and that the Selangor state government and Selangor town and country planning department had failed to re-table the execution of the BCity Project.

It said that the two respondents had acted unreasonably when they failed to have regard to all relevant considerations and disregarded all improper considerations to re-table the execution of the BCity Project, which resulted in unfairness to the applicants as it is tantamount to abuse of power.

The High Court ordered that the applicants be allowed to continue with the development and construction of the BCity Project and the equestrian centre, but have to submit the comments by the technical departments to the relevant parties, who will revert with their response/feedback within three months, failing which the relevant departments are deemed to have no objection to the development.

In respect of the Selangor Turf Club (STC) proposals, the Selangor state government and Selangor town and country planning department have been ordered to re-table its relocation and construction to the National Physical Planning Council within three months upon receipt of the proposal from the applicants.

“The applicants shall submit the said proposal within three months upon receipt of the fair order, failing which the applicants are deemed to be no longer interested in carrying out the said proposal,” it said.

The High Court also allowed for compensation to be paid to the applicants by the Selangor state government and Selangor town and country planning department. The compensation amount will be assessed in subsequent proceedings.

To recap, BLand had on July 19, 2004 announced that BTSB had entered into a conditional sale and purchase agreement (SPA) with STC to buy 244.79 acres of leasehold land in Sungai Besi together with existing buildings erected thereon for RM640 million.

The RM640 million was to be settled by RM35 million cash and the balance RM605 million to be satisfied by transfer of 750 acres of land in Sungai Tinggi with a newly built turf club thereon.

BTSB proposed to buy the Sungai Tinggi land from BCity and to appoint BCity as the turnkey contractor of the new turf club known as BCity Project.

On June 28, 2010, BLand said some of the conditions precedent (CP) under the SPA were unfulfilled, including the approval for the master layout plan for the Sungai Tinggi land, which was obtained on Feb 11, 2008 but had to be re-tabled due to the change in the Selangor state government.

In March 2016, BLand instituted legal action against the Selangor state government and the relevant state agencies by way of an application for judicial review, after the parties failed to proceed with the approval process and procedures in order for BTSB to fulfill the CPs, despite several applications and requests.


EasyJet appoints Johan Lundgren as new CEO

LONDON, Nov 10 — British budget airline easyJet said today its new chief executive officer would be Johan Lundgren, a travel executive who most recently spent 12 years at rival travel firm TUI. Lundgren replaces Carolyn McCall, who has run…


Petronas Dagangan’s net profit triples in Q3 on RM430.8 million disposal gain

PETALING JAYA: Petronas Dagangan Bhd's net profit for the third quarter ended Sept 30, 2017 more than tripled to RM761.73 million from RM248.76 million a year ago, thanks to a disposal gain of RM430.8 million.

During the quarter, the group disposed of 100% equity interest in a subsidiary Petronas Energy Philippines, Inc and 40% equity interest in an associated company Duta Inc to P-H-O-E-N-I-X Petroleum Philippines, Inc for RM560.5 million, resulting in a gain on disposal of RM424.6 million.

Thang Long LPG Company Ltd was also sold to Noi Thuong Bac Joint Stock Company for RM18.5 million, resulting in a gain of disposal of RM6.2 million.

Petronas Dagangan's revenue for the quarter rose 22.15% to RM6.69 billion from RM5.48 billion a year ago due to higher sales volume by 3% and an increase in average selling price by 18% following the increase in Mean of Platts Singapore (MOPS) prices.

The group declared an interim dividend of 20 sen per share amounting to RM198.69 million for the quarter under review.

For the nine months ended Sept 30, 2017, its net profit rose 84.58% to RM1.26 billion from RM683.12 million a year ago while revenue rose 26.58% to RM19.74 billion from RM15.60 billion.

The group expects the business environment for the upcoming months to remain challenging and will continue to focus on inventory management, supply and distribution efficiency as well as operating expenditure optimisation to ensure it remains resilient.

Its share price rose 0.75% or 16 sen to close at RM21.60 on Friday with a total of 788,300 shares traded, giving it a market capitalisation of RM21.46 billion.


Dialog to lease land, buy tank terminal facilities at Tanjung Langsat for RM153 million

PETALING JAYA: Dialog Group Bhd is expanding its tank terminal storage capacity at Tanjung Langsat, Johor through the lease of land and purchase of tank terminal facilities from Johor Corp for a total of RM153 million.

Dialog told Bursa Malaysia that its wholly owned subsidiary Dialog Terminals Sdn Bhd had entered into a lease agreement with Johor Corp to lease two parcels of land measuring 35 acres at Tanjung Langsat for a term of 30 years at a lease rental of RM62 million.

It also inked a sale of facilities agreement with Johor Corp for the purchase of tank terminal facilities located on the land for RM91 million.

The facilities comprise equipment, machinery and assets for the handling, storing, separating, blending and distributing petroleum by vessel and petroleum related products, petrochemical products and such chemical products and other substances of blending components of about 100,000 cubic metre in storage capacity.

Dialog noted that the proposed transactions pave the way for the group to expand its tank terminal storage capacity and operations at Tanjung Langsat.

Its share price gained 8 sen or 3.6% to close at RM2.33 on Friday on some 16.74 million shares traded.


Ringgit rises on the back of rising crude oil

KUALA LUMPUR: The ringgit continued its upward momentum to finish higher against the US dollar, prompted by rising crude oil prices coupled by renewed optimism that the Malaysian economy was strengthening as indicated by Bank Negara Malaysia.

Yesterday, the central bank left the overnight policy rate (OPR) unchanged at its eighth consecutive meeting.

''This generated optimism among foreign exchange market participants,” said dealers.

And the renewed support for the local unit was obvious when it rose 150 basis points to 4.1900/1930 against the greenback from Thursday's 4.2050/2080.

The ringgit was traded mostly higher against a basket of major currencies.

It rose against the Singapore dollar to 3.0804/0835 from 3.0878/0905 on Thursday and appreciated versus the yen to 3.6952/6988 from 3.7058/7088 yesterday.

Against the British pound, the ringgit decreased to 5.5099/5155 from 5.5060/5112 yesterday and depreciated versus the euro to 4.8855/8899 from 4.8782/8830 on Thursday. — Bernama


Bursa Malaysia ends week lower

KUALA LUMPUR: Bursa Malaysia finished the week lower on profit-taking in selected heavyweights and trade and services counters, dealers said.

A dealer said continuous selling activities pushed the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) to close at 1,742.28, down 4.53 points, or 0.26%, from yesterday's 1,746.81 points.

The index opened 0.28 of-a-point easier at 1,746.53 and moved between 1,740.94 and 1,748.94 throughout the day.

Sellers thumped buyers by 479 to 370, with 400 counters unchanged, 575 counters untraded and 20 others suspended.

Volume increased to 3.10 billion units valued at RM2.13 billion from 3.09 billion units valued at RM2.33 billion on Thursday.

Among the top losers, MISC dipped 15 sen to RM7.30, Axiata and Genting Malaysia fell 10 sen each to RM5.34 and RM5.05, respectively, Genting and Westports eased seven sen each to RM9.41 and RM3.67, respectively, and Kim Loong declined 24 sen to RM4.61.

An analyst told Bernama the local market was on correction mode after recent gains and the downtrend was also in line with the softer regional bourses following the overnight losses on Wall Street on profit-taking and uncertainties over US tax reforms.

Regionally, Japan's Nikkei 225 was down 0.82% to 22,681.42, Hong Kong's Hang Seng eased 0.05% to 29,120.92, South Korea's Kospi shed 0.30% to 2,542.95 while the Singapore Straits Times index decreased 0.05% to 3,422.32.

However, he said, Bursa Malaysia's decline was capped by gains in finance and oil and gas-related stocks, after Bank Negara Malaysia yesterday announced it would keep the overnight policy rate unchanged at 3%, as well as steady global oil prices.

Maybank rose two sen to RM9.18, Hong Leong Bank, Hong Leong Financial Group and Petronas Chemicals added four sen each to RM16.00, RM16.70 and RM7.44, respectively, PetGas rose 10 sen to RM17.80, Petronas Dagangan surged 16 sen to RM21.60 and Hengyuan Refining firmed 12 sen to RM10.00.

As for actives, Sumatec rose half-a-sen to 5.5 sen, Hibiscus gained 5.5 sen to 79 sen, Malayan United Industries and Key Asic added two sen each to 26.5 sen and 26.5 sen, respectively while Key Alliance fell one sen to 21 sen.

The FBM Emas Index fell 16.97 points to 12,581.49, FBMT 100 Index lost 17.89 points to 12,218.69, FBM Emas Shariah Index eased 6.38 points to 13,029.72 and the FBM Ace declined 13.44 points to 6,828.72.

The FBM 70 advanced 28.57 points to 15,548.87.

Sector-wise, the Plantation Index was 7.78 points weaker at 8,016.01, Industrial Index fell 5.35 points to 3,201.75 and the Finance Index decreased 10.55 points to 16,229.72.

The Main Market volume fell to 1.82 billion units worth RM2.11 billion compared with Thursday's 1.82 billion units worth RM2.11 billion.

Volume on the ACE Market soared to 2.02 billion shares valued at RM1.96 billion from 1.04 billion shares valued at RM190.03 million yesterday.

Warrants volume firmed to 218.49 million units worth RM30.06 million from Thursday's 201.65 million units worth RM26.74 million.

Consumer products accounted for 69.32 million shares traded on the Main Market, industrial products (491.75 million), construction (74.87 million), trade and services (879.66 million), technology (303.65 million), infrastructure (2.60 million), SPAC (3.21 million), finance (38.59 million), hotels (8.41 million), properties (137.64 million), plantations (11.16 million), mining (14,700), REITs (5.26 million), and closed/fund (4,500). — Bernama


Uber loses Britain appeal bid to overturn workers’ rights decision

LONDON, Nov 10 — Uber lost an appeal today to overturn a decision by a tribunal which said its drivers deserved workers’ rights such as the minimum wage, in a blow to the taxi app as it also battles to keep its licence in London. Uber’s…


Property retail sales improved 11.5pc in Q2, real estate firm says

KUALA LUMPUR, Nov 10 — Consumer sentiment has turned around since the introduction of the goods and services tax in 2015 with retail sales rising 11.5 per cent, year-on-year, in the second quarter of 2017 (Q217), said real estate and management…


Ringgit ends higher on rising oil prices

KUALA LUMPUR, Nov 10 — The ringgit continued its upward momentum to finish higher against the US dollar, prompted by rising crude oil prices coupled by renewed optimism that the Malaysian economy was strengthening as indicated by Bank Negara…