Wednesday, October 17th, 2018

 

Italian bonds hit by concerns EU may reject budget plan

LONDON, Oct 17 — A recovery in Italy’s bond market fizzled out today, with yields rising once again – this time on a report that the EU will say the draft Italian budget does not meet the bloc’s guidelines, news of fresh supply and a selloff…


US rescinds Prudential’s ‘too-big-to-fail’ designation

WASHINGTON, Oct 17 — US regulators today removed insurance giant Prudential Financial from the list of financial institutions that are deemed “systemically important” and placed under heightened government supervision. The Financial Stability…


LRT3 to proceed at total cost of RM16.6b under fixed-price contract

PETALING JAYA: The government has agreed to continue with the Light Rail Transit Line 3 (LRT3) from Bandar Utama (Petaling Jaya) to Johan Setia (Klang) project at a total cost of RM16.6 billion under a fixed price contract regime.

In a filing with Bursa Malaysia, George Kent (Malaysia) Bhd said MRCB George Kent Sdn Bhd was informed by Prasarana Malaysia Bhd of the government's decision via a letter dated Oct 16.

The RM16.6 billion includes land acquisition costs, interest payments during construction and other costs while the implementation concept will be remodelled from a project delivery partner (PDP) to a fixed price contract.

To recap, George Kent and Malaysian Resources Corp Bhd (MRCB) were appointed the PDP of LRT3 on Sept 4, 2015 at an approved construction budget of RM9 billion.

In March, Prasarana requested an additional RM22 billion in government guarantee to ensure funding for the construction and completion of LRT3. This was on top of a RM10 billion bond facility guaranteed by the government in 2015.

However, in July, the Finance Ministry said it would not support additional funding for the 37km project unless Prasarana cut the cost of the project, which was estimated to rise to as high as RM31.45 billion.

On Bursa Malaysia today, George Ken leaped 12.87% or 13 sen to close at RM1.14 with 18.58 million shares traded, making it one of the top gainers and top active stocks on the bourse.

MRCB surged 10.42% or 7.5 sen to close at 79.5 sen on volume of 84.23 million shares. It was the most actively traded stock on the bourse today.

The revised deal comes less than a week after the government said it would review an earlier plan to terminate and retender MMC Corp Bhd and Gamuda Bhd's underground works contract for MRT2.


SC says yet to receive details of Country Heights’ cryptocurrency plans

PETALING JAYA: The Securities Commission Malaysia (SC) is still in the dark about Country Heights Holdings Bhd's (CHHB) plans for its own cryptocurrency and the associated initial coin offering (ICO) after they were disclosed by the company a month ago. 

“We have engaged the company and they have yet to provide us with details of the proposed ICO,” an SC spokesperson told SunBiz via email.

CHHB is set to hold an EGM on Nov 8 to gain support from its shareholders to proceed with the appointments of technology partners and other external consultants to give back-end support to the exercise, particularly its implementation.

CHHB has said that it will engage with the relevant authorities for approval, if needed, upon receiving the green light from its shareholders.

Another general meeting will be called for the final endorsement for the launch of the ICO, its structure, mechanism and the exchange centre once the board has decided to proceed with the offering.

The proposed RM2 billion asset-backed cryptocurrency, dubbed “Horse Currency”, will function as a utility token and royalty programme for stays at the Palace of the Golden Horses, golf club memberships, private jet trips and medical treatments and checks at the Golden Horses Health Sanctuary, among others.

The group is also looking at allowing Horse Currency to be legal tender in purchasing and leasing its unique properties scheme, especially resort properties.

CHHB has proposed to issue one billion units, of which an initial 300 million units will be made available to the public. Its assets will be placed in a trust held by a reputable legal firm and a prominent technology partner and other external consultants.

CHHB had said despite no regulation specifically regulating its cryptocurrency issuance, it would keep the authorities well informed of the group's initiative.


US-China trade talks appear to be on hiatus, commerce secretary tells CNBC

WASHINGTON, Oct 17 — US Commerce Secretary Wilbur Ross said in an interview with CNBC today that trade negotiations with China appear to have taken a brief pause, and he damped expectations that an agreement would come out of an upcoming G20…


Merkel warns of no-deal Brexit danger as Europe meets

BRUSSELS, Oct 17 — Germany’s Chancellor Angela Merkel warned today that Europe must be prepared for a no-deal Brexit, as EU leaders sought to unblock stalled divorce talks with Britain. Prime Minister Theresa May was due in Brussels to present…


US stocks fall on housing data, mixed earnings

NEW YORK, Oct 17 — Wall Street stocks retreated early today following lacklustre US housing data and mixed corporate earnings. About 20 minutes into trading, the Dow Jones Industrial Average stood at 25,620.19, down 0.7 per cent. The broad-based…


Canada becomes first industrialised nation to legalise cannabis

ST JOHN’S (Newfoundland), Oct 17 — Canada became the first industrialised nation to legalise recreational cannabis today, but a lawful buzz will be hard to come by in its biggest cities like Toronto and Vancouver, which will have no stores open….


Kumpulan Perangsang Selangor unit bags RM162.5m deal from Air Selangor

PETALING JAYA: Kumpulan Perangsang Selangor Bhd’s (KPS) 51%-owned subsidiary Aqua-Flo Sdn Bhd has clinched a RM162.5 million contract from Pengurusan Air Selangor Sdn Bhd (Air Selangor) to supply and deliver chemicals.

Aqua-Flo is a trading company offering chemicals and equipment, as well as provision of technical services in the water, waste and sewage treatment industries.

Under the contract, Aqua-Flo will provide chemicals to water treatment plants in Selangor, Kuala Lumpur and Putrajaya for two years from Nov 1, 2018, KPS said in a statement.

According to its filing with Bursa Malaysia, Aqua-Flo has entered into a framework agreement with Air Selangor for the chemical supply contract.

Under the agreement, the estimated contract sum is based on the actual total quantities to be supplied based on the purchase orders issued by Air Selangor.

The contract is expected to contribute positively to the group for financial years ending Dec 31, 2018 to 2020.

KPS CEO Ahmad Fariz Hassan said, backed by the group’s excellent track record, the contract win, which was secured through an open tender, strengthens Aqua-Flo’s status as one of the market leaders in the supply of water treatment chemicals.

“Aqua-Flo has been safeguarding the quality of water in Selangor since 1994 and we are heartened by the continued vote of confidence by Air Selangor to provide international-standard drinking water in the state.”


KPS unit bags deal from Air Selangor

PETALING JAYA: Kumpulan Perangsang Selangor Bhd’s (KPS) 51%-owned subsidiary Aqua-Flo Sdn Bhd has clinched a RM162.5 million contract from Pengurusan Air Selangor Sdn Bhd (Air Selangor) to supply and deliver chemicals.

Aqua-Flo is a trading company offering chemicals and equipment, as well as provision of technical services in the water, waste and sewage treatment industries.

Under the contract, Aqua-Flo will provide chemicals to water treatment plants in Selangor, Kuala Lumpur and Putrajaya for two years from Nov 1, 2018, KPS said in a statement.

According to its filing with Bursa Malaysia, Aqua-Flo has entered into a framework agreement with Air Selangor for the chemical supply contract.

Under the agreement, the estimated contract sum is based on the actual total quantities to be supplied based on the purchase orders issued by Air Selangor.

The contract is expected to contribute positively to the group for financial years ending Dec 31, 2018 to 2020.

KPS CEO Ahmad Fariz Hassan said, backed by the group’s excellent track record, the contract win, which was secured through an open tender, strengthens Aqua-Flo’s status as one of the market leaders in the supply of water treatment chemicals.

“Aqua-Flo has been safeguarding the quality of water in Selangor since 1994 and we are heartened by the continued vote of confidence by Air Selangor to provide international-standard drinking water in the state.”