Friday, October 12th, 2018

 

US stocks open higher after two-day rout

NEW YORK, Oct 12 — Wall Street stocks jumped in early trading today, recovering some of losses from a two-day rout following upbeat comments from the US Treasury Secretary and leading bank executives. The Dow Jones Industrial Average was up 1.3…


US Treasury Secretary: Economy strong, stock drop a ‘natural correction’

WASHINGTON, Oct 12 — Treasury Secretary Steven Mnuchin said today the US economy remains strong, and the recent decline in the stock market was “just a natural correction.” After two days of sharp declines in US and global stock markets over…


OSK unit OCC Cables’ listing in Hong Kong aborted

PETALING JAYA: In a surprise move, OSK Holdings Bhd has aborted the proposed listing of its indirect subsidiary OCC Cables Ltd on the Hong Kong Stock Exchange, a day after its public offer closed.

OSK said in a filing with the stock exchange that in view of the current adverse global market conditions, the board has resolved that the listing will not proceed as originally scheduled.

“Further announcement will be made after the board has made further deliberations.”

OCC Cables’ initial public offering (IPO) was supposed to raise HK$149 million (RM79 million) and it was scheduled to be listed next Friday.

It manufactures power cable products for power transmission and distribution systems in Malaysia and Vietnam.

 


Alam Maritim to raise RM160m via convertible notes, proposes 1-for-2 bonus issue of warrants

PETALING JAYA: Loss-making Alam Maritim Resources Bhd proposes to issue redeemable convertible notes to raise up to RM160 million.

It also plans to undertake a bonus issue of up to 462.23 million free warrants on the basis of one free warrant for two shares held, which could potentially raise up to RM73.96 million to fund capital expenditure and working capital, among others, based on an indicative exercise price of 16 sen per warrant.

Meanwhile, of the RM160 million proceeds raised from the notes issue, RM50 million will be used for maintenance and inspection/drydocking works; RM80 million as capex for vessel acquisition and conversion; and RM17.6 million as working capital.

The notes, carrying 1% interest per annum with a maturity period of three years, will be issued in three tranches.

Alam Maritim does not expect the proposed notes issue to have an impact on its controlling shareholder as the subscribers will not hold more than a 10% stake.

“In addition, the proposed bonus issue of warrants will enable the existing shareholders to increase its shareholding proportionately upon the exercise of the free warrants,” it explained.

Alam Maritim said the proposed notes issue is the most appropriate avenue of raising funds to improve the group’s financial performance as it is cost effective with a flexibility in drawdown.

The stock was unchanged at 12.5 sen with 722,200 shares done.


Ringgit rebounds versus US dollar

KUALA LUMPUR: The ringgit rebounded to close slightly higher against the US dollar, lifted by positive market sentiment, a dealer said.

At 6 pm, the ringgit stood at 4.1530/1560 from 4.1580/1600 yesterday.

Among others, the market was boosted by higher Brent crude price which traded at US$80.88 per barrel, up 0.77 per cent.

“Perhaps with the upcoming Budget 2019 the government would announce “goodies”, but measures that could further enhance the economy and at the same time reduce debts,” he said, adding that this would lure more foreign investors into the country.

Meanwhile, against a basket of major currencies, the local note was traded mixed.

It fell against the Singapore dollar to 3.0149/0175 from 3.0124/0143, eased versus the euro to 4.8092/8139 from 4.8054/8094 on Thursday but rose against the yen to 3.6971/7008 from 3.7052/7080 and increased to 5.4861/4917 from 5.4873/4916 against the British pound. — Bernama


Bursa Malaysia snaps seven-day losing streak

KUALA LUMPUR: Bursa Malaysia snapped its seven-day losing streak to end higher today on renewed bargain hunting activity.

The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) strengthened 22.25 points or 1.30 per cent to finish at 1,730.74 against Thursday's close of 1,708.49.

The index moved between 1,703.92 and 1,732.16 after opening 4.57 points weaker at 1,703.92.

On the scoreboard, market breadth was positive with gainers leading losers 578 to 334 while 351 counters were unchanged, 609 untraded and 17 others were suspended.

Volume, however, was easier at 2.22 billion units valued at RM2.49 billion versus 3.10 billion units valued at RM3.70 billion.

Regionally, Japan's Nikkei 225 rose 0.46 per cent to 22,694.66, Singapore's Straits Times Index increased 0.93 per cent to 3,075.47 and Hong Kong's Hang Seng Index jumped 2.12 per cent to 25,801.49.

Inter-Pacific Securities Research Head Pong Teng Siew said the improving market sentiment was in line with the strengthening of the Dow Jones Industrial Average futures by more than 200 points, which gave pointers for investors to essentially come back to the market to bargain hunt.

“Whether this can be sustained, it is still an outside question. I would think that we will have to wait for the news about how the Dow Jones Industrial Average (index) performs on Monday, that is the best gauge. I am quite sure that the Dow Jones will rebound tonight on bargain hunting,” he told Bernama.

On the oil market, Brent crude futures was up 0.93 per cent to US$81.01 per barrel while the ringgit stood at 4.1530/1560 against the US dollar from 4.1580/1600 yesterday.

Among Bursa Malaysia's heavyweights, Maybank surged 30 sen to RM9.58, Public Bank rose eight sen to RM24.98, TNB soared 32 sen to RM14.60, Petronas Chemicals rose six sen to RM9.28, CIMB improved 29 sen to RM5.95 and Hong Leong Bank increased 20 sen to RM20.50.

But Axiata fell 10 sen to RM3.91 and Sime Darby Plantation decreased three sen to RM5.21.

As for actives, MYEG jumped nine sen to RM1.56, Vortex Consolidated added one sen to nine sen, Hibiscus Petroleum eased one sen to RM1.18 while Sapura Energy and Borneo Oil edged down half-a-sen to 36 sen and 5.5 sen, respectively.

Gamuda expanded five sen to RM2.35 while MMC Corp improved two sen to RM1.15, after the Minister of Economic Affairs Datuk Seri Mohamed Azmin Ali confirmed that the Cabinet has set up a committee to review the underground station contract that was awarded to MMC-Gamuda for the Mass Rapid Transit 2 project.

The FBM Emas Index strengthened 123.28 points to 11,981.86, the FBM Emas Shariah Index bagged 96.41 points to 11,988.96 and the FBMT 100 Index surged 123.92 points to 11,809.62.

The FBM Ace Index increased 103.67 points to 5,008.02 while the FBM 70 widened by 36.88 points to 13,860.09.

Sector-wise, the Plantation Index was 19.26 points higher at 7,411.80, the Financial Services Index strengthened 309.32 points to 17,528.62 while the Industrial Products and Services Index added 0.72 of-a-point to 171.60.

Main Market volume eased to 1.45 billion shares, valued at RM2.34 billion, against 2.08 billion shares, valued at RM3.52 billion, traded on Thursday.

Warrants turnover fell to 452.14 million units, worth RM91.12 million, against Thursday's 566.80 million units, worth RM105.21 million, recorded yesterday.

Volume on the ACE Market slipped to 315.58 million units, valued at RM58.90 million, versus Thursdays 455.56 million units, 'worth RM82.14 million.

Consumer products and services accounted for 228.85 million shares traded on the Main Market, industrial products and services (260.25 million), construction (155.48 million), technology (159.06 million), SPAC (289,000), financial services (60.38 million), property (100.02 million), plantations (20.80 million), REITs (7.36 million), closed/fund (49,000), energy (333.31 million), healthcare (42.32 million), telecommunication and media (35.67 million), transportation and logistics (14.59 million), and utilities (30.02 million).

The physical price of gold as at 5pm stood at RM157.39 per gramme, up RM2.47 from RM154.92 at 5pm yesterday. — Bernama


Ringgit rebounds on positive market sentiment

FRANKFURT, Oct 12 — The ringgit rebounded to close slightly higher against the US dollar, lifted by positive market sentiment, a dealer said. At 6pm, the ringgit stood at 4.1530/1560 from 4.1580/1600 yesterday. Among others,…


FGV CFO Tifli Mohd Talha quits

PETALING JAYA: Nearly a month after the departure of president and CEO Datuk Zakaria Arshad, FGV Holdings Bhd today announced the resignation of CFO Ahmad Tifli Mohd Talha effective immediately.

In a filing with Bursa Malaysia, the group said Ahmad Tifli, 53, has resigned to pursue other career opportunities. He joined the group as senior vice president and CFO in 2011.

In June last year, he was suspended along with Zakaria. He resumed his duty in October last year, after a four-month leave of absence.

Last month, Zakaria stepped down after he was suspended for a second time.

FGV’s share price rose 2.16% or 3 sen to close at RM1.42 on Friday with 5.28 million shares traded.


Bursa snaps seven-day losing streak

KUALA LUMPUR, Oct 12 — Bursa Malaysia snapped its seven-day losing streak to end higher today on renewed bargain hunting activity.     The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) strengthened 22.25 points…


Vertice inks corporate supply agreement for smart hotel chain biz

PETALING JAYA: Vertice Bhd's wholly owned subsidiary Vertice Construction Sdn Bhd (VCSB) and Smuzcity Bhd's wholly owned subsidiary Smuzhotel Management Sdn Bhd (SMSB) have entered into a corporate supply agreement for the smart hotel chain business following a memorandum of understanding signed in July.

Vertice told Bursa Malaysia that the agreement has an initial term of one year, effective from Oct 12, 2018. After the initial term, the agreement will be automatically renewed for additional successive one-year period.

The agreement governs the supply relationship between VCSB and SMSB in respect of construction materials, hotel furnishing products and/or related services. In addition, SMSB may source the products or services from VCSB under the terms and conditions of the agreement.

“The rationale of the agreement is to further cement the relationship with Smuzcity and pave the way for Vertice to participate further in the construction activities in the development of building of smart hotel chain based on the concept of 'unmanned' and 'cashless' using technologies such as virtual reality, artificial intelligence and mobile apps which will be applied into various hotel services applications,” Vertice said.

Smuzcity has intention to expand its portfolio of unstaffed hotels to 100 in the next few years.