Friday, February 23rd, 2018

 

US stocks rise ahead of Fed report

NEW YORK, Feb 23 ― Wall Street stocks rose early today as worries about higher interest rates moderated somewhat ahead of the release of a Federal Reserve monetary policy report. About 15 minutes into trading, the Dow Jones Industrial Average…


India instructs banks to link their core systems with SWIFT after huge fraud

MUMBAI, Feb 23 ― India’s central bank has asked commercial lenders to link their core software with the SWIFT interbank messaging system by the end of April, bankers said, in the latest regulatory action after a US$1.8 billion (RM7 billion)…


FGV not affected by EU ban on palm oil

KUALA LUMPUR, Feb 23 — The European Union’s (EU) plan to phase out palm-oil based biofuel from its energy mix from 2021 will not affect Felda Global Ventures Holdings Bhd (FGV) as its export to the EU is minimal, said its Group President and…


Ringgit ends marginally lower versus US dollar

KUALA LUMPUR: The ringgit ended marginally lower against the US dollar today, amid the tapering of global oil prices, said dealers.

At 6pm, the local note was quoted at 3.9170/9200 versus the greenback from 3.9150/9190 on Thursday.

Oanda Corp Asia Head of Trading for Asia Pacific Stephen Innes told Bernama, the crude oil market continued to communicate concern over rising levels of shale production.

“On other developments, we believe US interest rates are in the process of topping but until we get a definitive signal from the new Federal Reserve chair, Jerome Powell, hopefully, next week, we should expect offshore flows to remain light in the short-run,” he said.

Meanwhile, the benchmark Brent crude traded 0.44% lower at US$65.82 (RM258) per barrel.

The ringgit, meanwhile, traded lower against a basket of major currencies.

It declined against the Singapore dollar to 2.9607/9639 from Thursday's 2.9592/9629 and depreciated against the yen to 3.6642/6677 from 3.6476/6517 yesterday.

The local unit also decreased against the British pound to 5.4705/4762 from 5.4368/4439 and eased against the euro to 4.8203/8255 from 4.8123/8188 on Thursday. — Bernama


Scomi Engineering to be delisted on Feb 28

PETALING JAYA: Scomi Engineering Bhd (SEB) will be delisted from Bursa Malaysia on February 28 after the completion of its merger with parent company Scomi Group Bhd.

To recap, it was supposed to be a three-way merger between Scomi, SEB and Scomi Energy Services Bhd (SESB). However, the proposal received objection from SESB shareholders. As a result, Scomi did not proceed with its merger with SESB.

Trading in SEB shares has been suspended since February 9 to facilitate the implementation of the merger exercise.


YTL Corp Q2 earnings fall 14.6% on lower contribution from most business segments

PETALING JAYA: YTL Corp Bhd saw its net profit decline 14.6% to RM126.09 million for the second quarter ended Dec 31, 2017, from RM147.69 million in the previous corresponding quarter due to lower earnings from most business segments.

Revenue for the quarter up 7.7% to RM3.9 billion compared with RM3.62 billion in the same period a year ago.

In a filing with Bursa Malaysia, the group said the decrease in revenue and profits for its construction business was mainly due to lower site progress recorded.

Its hotel division recorded a decrease in profit attributed to the unrealised foreign exchange loss on inter-company balances, ongoing phased renovation as well as training expenses.

The cement manufacturing and trading segment also saw a dip in profit on the back of higher production cost and competitive pricing in the domestic market.

The utilities business, meanwhile, was dragged by lower margin for both electricity sales and oil tank leasing, coupled with higher finance cost recorded by multi utilities business division.

On its prospects, YTL said it expects the construction segment to achieve satisfactory performance for the financial year ending June 30, 2018 as the construction contracts relate mainly to the group's property development and infrastructure works.

For the six-month period, its net profit decreased 9.7% to RM268.99 million against RM298.02 million a year ago, while revenue grew 10% to RM7.83 billion from RM7.11 billion previously.

Its share price gained one sen or 0.68% to close at RM1.48 on 8.35 million shares traded.


Ringgit ends lower amid weaker oil prices

KUALA LUMPUR, Feb 23 ― The ringgit ended marginally lower against the US dollar today, amid the tapering of global oil prices, said dealers. At 6pm, the local note was quoted at 3.9170/9200 versus the greenback from 3.9150/9190 on Thursday….


VSolar’s power plant project with UTM lapses

PETALING JAYA: VSolar Group Bhd's plan to develop a 30MW solar energy plant with Universiti Teknologi Malaysia (UTM) has been aborted.

VSolar told Bursa Malaysia that both parties had mutually agreed to terminate their joint venture agreement (JVA) for the development of solar energy generation facilities.

“The mutual termination of the JVA is not expected to have a material impact on the profit and net tangible assets per share of the group for the financial year ending June 30, 2018,” it said.

Following the termination, VSolar said it will continue to explore opportunities in the acquisition and development of other solar projects.

VSolar's shares gained 3.85% to close at 13.5 sen with some 15.08 million shares changing hands.


Kuantan Flour Mills to expand into pet food industry

PETALING JAYA: Kuantan Flour Mills Bhd (KFM), a Practice Note 17 (PN 17) company, has entered into a memorandum of understanding (MoU) with MCM Petcare Sdn Bhd for a proposed business collaboration to facilitate its expansion into trading and retailing of pet food products.

The group said in a Bursa Malaysia filing that the eventual plan is to venture into the manufacturing of pet food products.

The collaboration could be executed either through a business collaboration arrangement between both parties or a direct acquisition of a majority equity interest in MCM.

The MoU is valid for a period of six months.

MCM has been distributing pet care products to retailers such as super or hypermarkets and pet shops throughout Malaysia since 1999.

KFM's shares fell 6.67% to close at 14 sen on some 10,000 shares done.


Dayang falls into the red in Q4 on lower profit margins

PETALING JAYA: Dayang Enterprise Holdings Bhd swung to the red registering a net loss of RM54.25 million in the fourth quarter ended December 31,2017 against a net profit of RM46.71 million in the same quarter last year, due to lower profit margins arising from lower charter rates and forex losses.

Its forex loses for the quarter under review amounted to RM19.6 million as compared to a forex gain of RM48.9 million reported in the last quarter of the previous year.

Revenue, meanwhile, declined 12.8% to RM173.76 million from RM199.2 million on the back of lower work orders received and performed.

The group expects 2018 to be busy and upbeat based on current work orders received from oil majors and the work planning activities which are currently on hand as well as renewed maintenance construction and modification (MCM), PAN hook-up and commissioning (HUC) contracts, engineering, procurement, construction and commissioning (EPCC) activities.

“Going into 2018, the group will continue to draw down its revenue from its balance contract order book of RM2.8 billion that stood as at December 31, 2017. The Group will continue to operate within the core competencies of the new MCM contract and also the remaining HUC and EPCC contracts and offshore support vessels charter.”

Dayang also highlighted that it is currently awaiting the results of some tenders for contracts with oil majors that are still under evaluation.

“Any successful win in this should see a further replenishment of the order book lasting for one to five years. Though it is not possible to predict the outcome of these tenders, the Group has always demonstrated its operational and technical supremacy in winning these brownfield contracts,” it said.

The group added that it will remain cautious and vigilant in its pursuit for more contract replenishment and in the management and sustenance of cash flow while also continuing to exercise due care and prudence in the running and administration of the company's business amid a very challenging industry.

For the whole of 2017, Dayang recorded a net loss of RM143.93 million as opposed to a net profit of RM54.54 million, due to an impairment loss on property, plant and equipment and forex losses, while revenue dropped 1.8% to RM695.49 million from RM708.24 million.

The stock gained 12.75% to close at 84 sen, with some 16.37 million shares changing hands.