Monday, December 24th, 2018


Losses on Wall Street deepen amid Washington turmoil

NEW YORK, Dec 24 — Wall Street was heading for another rout early today amid turmoil in Washington, with the Dow losing as much as two per cent after its worst week since the 2008 financial crisis. At 1525 GMT, the Dow Jones Industrial Average was…

Mnuchin to convene US ‘Plunge Protection Team’ as markets worry

WASHINGTON, Dec 24 — The Trump administration is arranging a phone call today with top US regulators to discuss financial markets as stocks fell again amid concern about slowing growth, the government shutdown and the independence of the Federal…

UK markets fall on Christmas eve, no Santa rally in sight

LONDON, Dec 24 — British shares dipped today as world stocks fell on reports that US President Donald Trump privately discussed firing the head of the Federal Reserve and a partial US government shutdown. The FTSE 100 was down 0.5 per cent and the…

Asia stocks mixed after Mnuchin’s weekend of triage

HONG KONG, Dec 24 — Asian stocks were mixed today after a weekend call by Treasury Secretary Steven Mnuchin to top US banking executives aimed at stemming the market panic which resulted in Wall Street experiencing its worst week in a decade. The…

AirAsia’s indirect unit to sell Merah Aviation for RM3.22b

KUALA LUMPUR, Dec 24 — AirAsia Group Bhd’s indirect wholly-owned subsidiary, Asia Aviation Capital Ltd (AACL) is disposing of Merah Aviation Asset Holding Ltd to AS Air Lease Holdings 5T DAC, an entity indirectly controlled by Castlelake LP, for…

AirAsia sells Merah Aviation Asset for RM3.22b

PETALING JAYA: AirAsia Group Bhd is disposing of its entire stake in Merah Aviation Asset Holding Ltd to AS Air Lease Holdings 5T DAC for US$768 million (RM3.22 billion).

AS Air Lease is indirectly owned by Castlelake LP, a US-based global private investment firm and leader in aircraft ownership and servicing.

AirAsia told Bura Malaysia that its indirect wholly-owned subsidiary Asia Aviation Capital Ltd (AACL) had entered into agreements to sell Merah Aviation, which will comprise 25 existing aircraft to be leased to AirAsia.

Castlelake will also purchase from AACL a total of four new aircraft to be delivered in 2019 for a purchase consideration to be determined at a later date. The aircraft will be leased back to AirAsia and/or its affiliates.

Merah Aviation is principally engaged in the owning, leasing and/or financing of aircraft.

AirAsia said the transaction is subject to its shareholders’ approval and other relevant customary closing conditions, and is expected to be completed in the second quarter of 2019.

Bulk of the proceeds will be used for the repayment of existing debt.

AirAsia noted the proposed disposal is in line with the group’s strategy to focus on its core airline operations with an estimated net gain of about RM174.9 million.

It will also allow the group to reduce its financial leverage as the gross gearing ratio is expected to fall from 0.53 times to 0.24 times.

Castlelake specialises in providing creative, flexible capital solutions for its airline partners. Since its inception in 2005, Castlelake has invested in and managed more than 500 aircraft on behalf of its funds

With the closing of this transaction, Castlelake’s current fleet will comprise more than 250 aircraft.

Sunway REIT acquires properties worth RM550m

KUALA LUMPUR, Dec 24 — Sunway Real Estate Investment Trust (Sunway REIT) has acquired lands and buildings worth RM550 million from Sunway Destiny Sdn Bhd, a wholly-owned subsidiary of Sunway Bhd. The acquisition include three parcels of leasehold…

Jaycorp reports fire incident at Malacca plant

PETALING JAYA: A fire broke out at JayCorp Bhd’s factory in Malacca yesterday morning.

“The assets damaged include a finishing line, part of the factory roof, some spray guns, fire extinguishers and sprinklers. While further work needs to be carried out to ascertain the exact value of damages sustained, we roughly estimate that the total value of damage to these assets is in the region of RM500,000 to RM900,000,” it told the stock exchange.

In addition, Jaycorp said some work in progress (WIP) was also damaged.

“We roughly estimate that the damage caused to WIP is below RM100,000. In total, we do not expect the combined value of damages sustained by the fire incident to exceed RM1 million. All assets and WIP are adequately insured.”

The affected factory, owned by Jaycorp Trading Sdn Bhd, is located in Sungai Rambai and. It is currently being rented out to Yeo Aik Wood Sdn Bhd.

Both Jaycorp Trading and Yeo Aik Wood are wholly owned subsidiaries of Jaycorp group.

The area damaged by the fire was restricted to a single finishing line within the factory with minimal impact to other areas of the factory.

The fire started at around 8.40 am on December 23 and was extinguished within 30 minutes.

“No major injuries were sustained. We have not yet determined the exact cause of the fire but we are in the process of carrying out the necessary investigations. A police report was made on the same day.”

Jaycorp said it does not expect any major impact to its operations as it has another finishing line facility.

“As such, although there may be some minor production delays in the immediate short term due to the damage caused by the fire incident, we expect to fully recover from this within two weeks.”

Sunway sells land, assets to Sunway REIT for RM550m

PETALING JAYA: Sunway Bhd is selling its land and assets to Sunway Real Estate Investment Trust (Sunway REIT) for RM550 million cash.

Sunway told Bursa Malaysia that its wholly owned subsidiary Sunway Destiny Sdn Bhd had on December 24 entered into a conditional sales and purchase agreement with RHB Trustees Bhd, being the trustee of Sunway REIT, for the proposed disposal.

The exercise entails the disposal of three parcels of leasehold land in Sunway Town, Petaling Jaya, together with buildings comprising a five-storey academic block, a six-storey academic block, a 13-storey academic block as well as four blocks of five-storey walk up hostel apartment.

Sunway said the proposed disposal will allow the group to unlock the value and realise its investment in the land and buildings, which will result in an improvement in the earnings per share of the Company by about 0.9 sen.

Proceeds from the disposal will also lead to a net cash inflow of RM311.3 million for the group, with part of the proceeds will be utilised to repay existing bank borrowings, which is expected to reduce the group’s gearing and potentially save RM9.9 million of finance expense per annum.

Bursa Malaysia ends at the day’s high on window dressing activities

KUALA LUMPUR: Bursa Malaysia ended firmer, with the FTSE Bursa Malaysia KLCI (FBM KLCI) finishing at the day’s high of 1,683.82, up 13.54 points or 0.81%, from last Friday’s close of 1,670.28.

This is in line with fund managers’ year-end window dressing, despite rising concerns over uncertainty at the global level, which include a potential interest rate hike by the US Federal Reserve, as well as the probability of the US government shutdown extending into next year from last Friday.

Regionally, stock markets were mixed, with Singapore’s Strait Times added 0.16% to 3,051.06, but Japan’s Nikkei declined 1.11% to 6,667.76, Hong Kong’s Hang Seng eased 0.76% to 25,558.94 and South Korea’s Kospi was 0.31% lower at 2,055.01.

After opening 0.29 point lower at 1,669.99, the FBM KLCI moved between 1,658.10 and 1,683.82 throughout the session.

Among the top gainers were Aji, gaining RM1.08 to RM19.0, BAT improving 60 sen to RM35.90 and F&N edging up 44 sen toRM31.78, while heavyweight counters, Tenaga adding 52 sen to RM14.0 and PetDag advancing 50 sen to RM26.50.

As for other heavyweights, Maybank fell three sen to RM9.26, PBBank gained 10 sen to RM24.78, PChem and CIMB both increased three sen each to RM9.23 and RM5.68, respectively.

Of actives, SapNRG gained 1.5 sen to 31.5 sen, Hubline was flat at four sen, MyEG rose five sen to 87.5 sen, while Velesto and VS were both half-a-sen higher at 18 sen and 70.5 sen, respectively.

Market breadth on Bursa Malaysia was positive with 380 gainers and 302 losers, while 426 counters remained unchanged, 780 untraded and 25 others suspended.

Total volume decreased to 1.27 billion units worth RM875.79 million from 1.75 billion units worth RM1.88 billion last Friday.

The FBM Emas Index was 87.14 points higher at 11,458.25, the FBMT 100 Index gained 86.15 points to 11,375.17, the FBM 70 increased 75.52 points to 12,901.91, the FBM Emas Shariah Index was 140.71 points better at 11,459.38, but the FBM Ace Index fell 32.02 points to 4,226.59.

Sector-wise, the Financial Services Index garnered 4.53 points to 17,148.07, the Industrial Products and Services Index added 0.32 of-a-point to 165.79, while the Plantation Index was 29.03 points easier at 6,781.23.

Main Market volume declined to 901.4 million units worth RM806.57 million from 1.22 billion units worth RM1.76 billion previously.

Warrants turnover decreased to 232.65 million units worth RM49.41 million from 353.90 million units worth RM93.93 million previously.

Volume on the ACE Market shrank to 130.04 million shares worth RM19.54 million from 167.16 million shares worth RM25.47 million.

Consumer products and services accounted for 102.94 million shares traded on the Main Market, industrial products and services (132.14 million), construction (54.71 million), technology (129.88 million), SPAC (15.1 million) financial services (16.64 million), property (78.79 million), plantations (20.13 million), REITs (3.68 million), closed/fund (20,000), energy (211.87 million), healthcare (13.49 million), telecommunications and media (27.38 million), transportation and logistics (80.72 million), and utilities (13.9 million). — Bernama