Morning Briefing, Wednesday

US Market :

U.S. fell on Tuesday, as a decline in Apple shares pushed the broader tech sector lower. House members voted to pass the tax bill on Tuesday. The Senate is also expected to pass the measure. The bill would cut the federal corporate tax rate to 21 percent from 35 percent.

Europe Market :
Europe markets closed lower Tuesday afternoon, despite investors monitoring the progress of a long-anticipated and market-friendly U.S. tax overhaul which appears highly likely to pass this week.

Precious Metal :
Gold dipped on Tuesday as U.S. Treasury yields rose on an uptick in housing starts for November and even though the dollar fell, a factor that generally supports gold. Market players were wary of taking new positions before the holiday season. Gold is on track to post its narrowest trading range of any quarter in a decade in the last three months of the year.



Crude Oil :
Oil edged up towards $64 a barrel on Tuesday, supported by the Forties pipeline outage in the North Sea, OPEC-led supply cuts and expectations that U.S. crude inventories had fallen for a fifth week.

Indices & Commodities :
DJIA: 24,754.45 (-37.45)
S&P500: 2,681.47 (-8.69)
NASDAQ: 6,963.85 (-30.91)
DAX: 13,215.79 (-96.51)
FTSE: 7,544.09 (+7.08)
EuroStoxx50: 3,582.12 (-27.30)
Comex Gold: 1,264.2 (-1.3)
Comex Copper: 3.1515 (+.0055)
WTI Crude Oil: 57.56 (+.34)
Crude Oil: 63.80 (+.39)

Economic Events :
9.45PM – GBP BoE Gov Carney Speaks
11.00PM – USD Existing Home Sales
11.30PM – USD Crude Oil Inventories
5.45AM – NZD GDP

FX & Bonds :
USD/MYR – 4.081
EUR/USD – 1.181
GBP/MYR – 5.450
AUD/MYR – 3.124
SGD/MYR – 3.028
Msia 10 yr Yield – 3.95%

19/12/2017 Bursa Trade Stat :
Retail (19.38%) – net BUY 28.53mil
Institution (63.1%) – net BUY 115.41mil
Foreign (17.52%) – net SELL 143.94mil
Total traded value 2908.47mil

CORPORATE NEWS

• Pestech International Bhd said its wholly-owned Cambodian unit, Pestech Ltd (PCL), has executed a contract agreement worth US$26 million (RM106.11 million), to develop two substations and double-circuit transmission line in .

• AirAsia X Bhd (AAX) has appointed Wong Mee Yen as its chief financial officer with effect from Jan 1, replacing outgoing CFO Cheok Huei Shian, who had led the AAX finance team since February 2015.



• Chemical Company of Malaysia Bhd said wholly-owned CCM Polymers Sdn Bhd is buying an office-cum-factory in Bandar Baru Bangi for RM20.8 million, in anticipation of growing market demand.

• G3 Global Bhd, formerly known as Yen Global Bhd, plans to sell its two loss-making units in the apparel business Evatech Sdn Bhd and Uni Jeans Care Sdn Bhd to Jelapang Subur Sdn Bhd for RM11.25 million and RM1.73 million respectively, or RM12.98 million in all.

• Vertice Bhd, formerly known as Voir Holdings Bhd, plans to place out up to 30% of its share base to independent third party investors to be identified, to raise up to RM62.79 million, mainly to fund its construction project and for working capital.

• Techfast Holdings Bhd has …
[08:49, 12/21/2017] +60 19-331 8811: 21 December 2017, Thursday 😐

US Market :
U.S. equities closed little changed on Wednesday as Congress approved a bill that would cut corporate taxes. Investors have been eagerly waiting for lawmakers to move forward with the bill, sending the major stock indexes to record highs this year.

Europe Market :
European markets closed lower Wednesday afternoon as the long-awaited U.S. tax overhaul wound its way through Congress.

Precious Metal Gold :
Gold prices rose on Wednesday for a fourth straight session to reach a two-week high as U.S. data showing solid home sales but a fall in mortgage applications pushed the dollar to a two-week low.

Crude Oil :
Oil prices rose on Wednesday, supported by a drop in U.S. crude stockpiles and the continued outage of the North Sea Forties pipeline system.



Indices & Commodities :
DJIA: 24,726.65 (-28.10)
S&P500: 2,679.25 (-2.22)
NASDAQ: 6,960.96 (-2.89)
DAX: 13,069.17 (-146.62)
FTSE: 7,525.22 (-18.87)
EuroStoxx50: 3,550.83 (-31.39)
Comex Gold: 1,269.6 (+5.4)
Comex Copper: 3.1960 (+.0445)
WTI Crude Oil: 58.09 (+.53)
Brent Crude Oil: 64.56 (+.76)

Economic Events :
Tentative – JPY BoJ Monetary Policy Statement
2.30PM – JPY BoJ Press Conference
9.30PM – USD GDP, Philadelphia Fed Manufacturing Index
9.30PM – CAD ADP Nonfarm Employment Change, Core CPI, Core Retail Sales

FX & Bonds :
USD/MYR – 4.073
EUR/USD – 1.184
GBP/MYR – 5.460
AUD/MYR – 3.123
SGD/MYR – 3.026
Msia 10 yr Bond Yield – 3.94%

20/12/2017 Bursa Trade Stat :
Retail (22.56%) – net SELL 36.79mil
Institution (62.36%) – net BUY 5.87mil
Foreign (15.08%) – net BUY 30.92mil
Total traded value 2260.22mil

CORPORATE NEWS

• Berjaya Land Bhd (BLand), the controlling shareholder of Berjaya Sports Toto Bhd, posted a net loss of RM99.92 million in the second financial quarter ended Oct 31, 2017 (2QFY18) compared with a net profit of RM180.47 million in 2QFY17, though revenue only slid marginally to RM1.61 billion from RM1.62 billion.

• Kimlun Corp Bhd is buying a plot of freehold agriculture plot measuring 11.734ha in Pulai, Johor, from UEM Sunrise Bhd for RM82.1 million to develop commercial properties.

• Poh Huat Resources Holdings Bhd’s net profit fell 6.4% to RM17.84 million in the fourth financial quarter ended Oct 31, 2017 (4QFY17), from RM19.06 million a year ago, due to lower contribution from its Vietnamese operations.



• Salcon Bhd stands to lose RM3 million in the event its appeal to overturn a court judgement favouring its contractor proves unsuccessful, and has made provision for the sum in its financial statement for the ending Dec 31, 2017 for that.

• Westports Holdings Bhd has been slapped with several bills of demand totalling RM59.51 million from the Royal Malaysian Customs.

• Dagang NeXchange Bhd (DNeX) announced today that the government has awarded it another year of extension to its contract for the National Single Window (NSW) for Trade Facilitation.

• Goh Ban Huat Bhd (GBH) is planning to buy several properties in Pontian, Johor, from three companies controlled by the family of its lar…
[08:50, 12/27/2017] +60 19-331 8811: 27 December 2017, Wednesday 😐

US Market :
U.S. stocks closed lower in light volume trade Tuesday as shares of Apple tumbled, offsetting gains in energy stocks as oil prices hit their highest in more than two years.

Europe Market :
Holiday – 🥊 Boxing Day

Precious Metal Gold :
Gold prices edged up on Tuesday to a more than three-week high on support from a weaker dollar and chart signals, as palladium touched the highest level since February 2001 on supply worries.

Crude Oil :
Oil prices soared to two-and-a-half year highs in light trading volume on Tuesday, boosted by news of an explosion on a Libyan crude pipeline as well as voluntary OPEC-led supply cuts.

Indices & Commodities :
DJIA: 24,746.21 (-7.85)
S&P500: 2,680.50 (-2.84)
NASDAQ: 6,936.25 (-23.71)
DAX: –
FTSE: –
EuroStoxx50: –
Comex Gold: 1,287.5 (+8.7)
Comex Copper: 3.2805 (+.0420)
WTI Crude Oil: 59.97 (+1.50)
Brent Crude Oil: 66.46 (+1.73)

Economic Events :
5.30PM – GBP BBA Mortgage Approvals
11.00PM – USD Pending Home Sales (MoM) (Nov)
1.00AM – EUR France Jobseekers Total
5.35AM – USD API Weekly Crude Oil Stock
7.50AM – JPY Industrial Production (MoM) (Nov), Retail Sales (YoY) (Nov)

FX & Bonds :
USD/MYR – 4.080
EUR/USD – 1.186
GBP/MYR – 5.454
AUD/MYR – 3.151
SGD/MYR – 3.038
Msia 10 yr Bond Yield – 3.94%

26/12/2017 Bursa Trade Stat :
Retail (26.63%) – net BUY 0.07mil
Institution (62.33%) – net SELL 14.92mil
Foreign (11.04%) – net BUY 14.85mil
Total traded value 1603.64mil

Corporate News

Malaysian Resources Corp Bhd (MRCB) has entered into agreement with Lembaga Tabung Haji for the pilgrim fund to purchase 70% stake in 59INC Sdn Bhd, which owns three parcels of land in Setapak for mixed development, for RM100.1 million cash.

The cash proceed from the divestment, MRCB said in its filing with Bursa Malaysia, will be utilised for working capital purposes and property development activities within 12 months from receiving the disposal consideration.

The three parcels of land, measuring 111,195 sq m in total, have a market value of RM270 million as at Aug 17, 2017.

Managepay Systems Bhd (MPay) will provide services under its e-marketplace platform BuyMalaysia.com to small and medium enterprises (SMEs) registered under eTRADE programme by Malaysia External Trade Development Corp (MATRADE).

MPay said it received a Letter of Offer from MATRADE to provide the services, which it said will contribute to its earnings in the financial year ending Dec 31, 2018 (FY18) onwards.

Pensonic Holdings Bhd is buying two parcels of freehold land in Taman Perindustrian WorldwideKapas Bestari (Phase 2) in Kapar, Klang from Cekal Unggul Sdn Bhd for RM20.07 million cash.

Pensonic said in a filing today that the acquisitions, made via Pensonic Sales & Services Sdn Bhd, are for construction a new warehouse and office block there, due to its strategic location near Port Klang.

Sona Petroleum Bhd has yet to receive the tax clearance for the final distribution of the remaining cash in its cash trust account amounting to 1.39 sen per share to shareholders.

It however said in a filing that tax returns for the Year of Assessment 2017 have been filed with the Inland Revenue Board (IRB), Sona said its tax agent had immediately sought for tax clearance,adding that the liquidation of subsidiary Sona E&O (Perth) Pty Ltd should complete by this month.

Tenaga Nasional Bhd (TNB) said that the Malaysian government’s decision to provide RM929.37 million or 1.80sen/kWh rebate under the current Imbalance Cost Pass Through (ICPT) for electricity customers from Jan 1 to June 30, 2018 as neutral on the utility giant’s business operations and financial position.

TNB said in a filing that the government has also agreed to maintain existing electricity tariff rates, which has been in place since Jan 1, 2014, unchanged until Dec 31, 2020.

Hibiscus Petroleum Bhd, which is acquiring 50% stake in the 2011 North Sabah EOR Production Sharing Contract (PSC) from Shell Sabah Selatan Sdn Bhd for US$25 million, announced that both parties have clarified and agreed on the conditions set by Petronas for the deal.

Hibiscus said that on Dec 22, the three parties had entered into a novation agreement so it can continue production and further develop the resources upon completion of the acquisition, which it expects to happen on March 31, 2018





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