Friday, September 6th, 2019

 

US stocks flat as August jobs growth disappoints

NEW YORK, Sept 6 — Wall Street stocks were little changed early today after US employment data showed job growth slowing in August. The weaker-than-expected jobs report, which also cut estimates for new positions in two earlier months, comes as US…


Kudlow says trade talks between China, US will likely ‘heat up’

WASHINGTON, Sept 6 — White House economic adviser Larry Kudlow said today that talks between American and Chinese trade negotiators could “heat up” during meetings in October, though he said he could not predict the outcome of the talks….


US states announce antitrust probe of Facebook

WASHINGTON, Sept 6 — A coalition of US state officials announced today they had launched an antitrust investigation of Facebook to determine if the social media giant “has stifled competition and put users at risk.” New York state Attorney…


Bursa Malaysia ends higher on optimism over global economy

KUALA LUMPUR: Bursa Malaysia closed higher today in tandem with positive sentiment on the regional stock markets as investors remained optimistic on the global economic outlook, dealers said.

The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.72 points to 1,604.47 at the close after trading between 1,599.75 and 1,606.40 throughout the day.

The market barometer opened 1.91 points higher at 1,601.66.

Phillip Capital Management senior vice-president (investment) Datuk Dr Nazri Khan Adam Khan said investors were positive on the bullish economic outlook on the global front and expectation of higher crude palm oil (CPO) demand from India moving forward.

“Overall, based on the current technical landscape, we opine that the local bourse is still in the process of recovering. The strong support is within 1,600 to 1,572 points. Conversely, the immediate resistance remains at between 1,620 and 1,680 points, followed by the psychological 1,700-point resistance threshold,” he told Bernama today.

Meanwhile, another dealer said the Asian market was in an uptrend today, in line with global market sentiment, boosted by firm US economic data and next month’s meeting between US and Chinese negotiators which signalled an easing in trade tensions.

Among the heavyweights, Maybank rose one sen to RM8.75, TNB improved two sen to RM13.82, Petronas Chemicals jumped 12 sen to RM7.00, IHH Healthcare went up four sen to RM5.80 while Public Bank slipped four sen to RM20.20.

As for actives, Priceworth International gained half-a-sen to five sen, GD Express improved one sen to 29.5 sen, while Vsolar fell one sen to 11.5 sen and Bumi Armada eased half-a-sen to 25.5 sen.

The FBM Emas Index added 33.58 points to 11,281.12, the FBMT100 Index was 34.02 points higher at 11,120.66 and the FBM Emas Shariah Index perked 58.44 points to 11,826.29.

The FBM Ace advanced 8.67 points to 4,457.38 and the FBM 70 went up 47.61 points to 13,788.45.

Sector-wise, the Financial Services Index slid 31.67 points to 15,479.17, the Plantation Index inched up 10.43 points to 6,806.94 and the Industrial Products and Services Index was 1.30 points higher at 149.12.

Market breadth was positive as gainers led losers 406 to 340, with 405 counters unchanged, 797 untraded and 33 others suspended.

Turnover was lower at 1.67 billion units worth RM1.44 billion from Thursday’s 1.85 billion units worth RM1.58 billion.

Main Market volume contracted to 1.04 billion shares valued at RM1.30 billion from Thursday’s 1.28 billion shares valued at RM1.46 billion.

Warrants turnover rose to 365.06 million units worth RM80.29 million from yesterday’s 264.55 million units worth RM48.71 million.

Volume on the ACE Market narrowed to 257.20 million shares valued at RM56.63 million from 310.05 million shares valued at RM75.40 million previously.

Consumer products and services accounted for 149.06 million shares traded on the Main Market, industrial products and services (216.54 million), construction (44.82 million), technology (98.01 million), SPAC (nil), financial services (39.66 million), property (73.96 million), plantations (10.83 million), REITs (10.61 million), closed/fund (50,000), energy (184.67 million), healthcare (19.01 million), telecommunications and media (82 million), transportation and logistics (97.79 million), and utilities (15.19 million).

The physical price of gold as at 5.00pm stood at RM195.68 per gramme, down RM5.45 from RM201.13 at 5.00pm yesterday. — Bernama


EPF sees marginal dip in Q2 investment income

PETALING JAYA: The Employees Provident Fund (EPF) reported a total investment income of RM12.32 billion for the second quarter ended June 30, 20149 (Q219), a marginal 0.6% dip from RM12.39 billion recorded in the corresponding quarter of the previous year.

Its deputy CEO (investments) Datuk Mohamad Nasir Ab Latif (pix) attributed the lower earnings to the weak performance of the Malaysian stock market that saw a 1.1% drop in the period compared to previously, which resulted in the EPF’s domestic equity portfolio recording an income of RM1.51 billion.

“The benefit of having a diversified portfolio is that the investment income from overseas assets helped to cushion the decline in income from the domestic equity portfolio. For us at the EPF, the short-term volatility gave us a chance to buy good assets to strengthen the portfolio for the long term,” said Mohamad Nasir in a statement .

Equities, which make up 39.2% of its total investment assets, continues to be the main revenue driver, contributing RM6.33 billion, equivalent to 51.4% of total investment income for the quarter.

Meanwhile, 50.6% of the fund’s investment assets were in fixed income instruments, which continue to provide a consistent and stable flow of income, returning RM5.12 billion, equivalent to 41.6% of the quarterly investment income.

Income from Malaysian Government Securities (MGS) & equivalent in 2Q19 reached RM2.69 billion, while loans and bonds generated an investment income of RM2.43 billion.

For Q219, real estate & infrastructure represented 4.9% of the pension fund’s total investment assets, which recorded a RM460 million income and investments in money market instruments, which represent 5.3% of total investment assets, contributed RM410 million.

Breaking down the contributions, EPF revealed that RM890 million from the RM12.32 billion gross investment income was generated for Simpanan Shariah, and RM11.43 billion for Simpanan Konvensional.

For the remaining quarters Mohamad Nasir said that market conditions for the rest of the year will continue to be extremely challenging and volatile.

“There are a lot of uncertainties, especially around Brexit, the ongoing US-China trade dispute, and growing protectionism in other countries such as Japan and South Korea. We are also keeping a close eye on the possibility of an economic slowdown and the rising risk of recession in major economies, which may have a knock-on effect on global growth.”


China to cut reserve requirements for banks to boost economy

BEIJING, Sept 6 — China’s central bank announced today it was cutting the reserve requirements for banks, in a bid to boost lending and bolster the slowing economy. The People’s Bank of China (PBoC) will cut the reserve requirement ratio (RRR)…


Finance minister sees sustainable economic growth for Malaysia in 2H19

KUALA LUMPUR, Sept 6 — The Malaysian economy is expected to grow sustainably for the second half of this year following the better-than-expected export growth in July and a 97.2 per cent growth in approved foreign investment…


Bumi Armada sells Armada Perdana FSPO for US$40m

PETALING JAYA: Bumi Armada Bhd’s wholly-owned subsidiary Armada Oyo Ltd (AOL) has entered into an agreement with Century Energy Services Ltd (CESL) for the sale of its Armada Perdana floating production storage & offloading (FSPO) for US$40 million (RM167.18 million).

CESL plans to redeploy the vessel to another field in Nigeria.

The purchase price will be settled via a US$5.5 million (RM23 million) deposit, of which US$4.5 million has been paid by CESL to AOL and the remaining to be payable before the end of 2019. A sum of US$11.6 million will be fully settled against amounts owed by companies within the Bumi Armada group to CESL as at July 31, 2019.

In addition, additional vessel expenses from August 1, 2019 up to the date the vessel is delivered to CESL will be set off against the purchase price. Another US$5 million will be paid to the group on or before the date of six months after the delivery date or when oil is first produced in the field, whichever is earlier. The remaining balance of US$17.9 million will be payable within two years from the first oil date.

The group will hold a mortgage over the Armada Perdana FPSO to secure the unpaid portion of the purchase price.

“The conclusion of the sale of the Armada Perdana FPSO will absolve the group from its demobilisation obligations,” Bumi Armada said.

The group will recognise the unpaid portions of the purchase price as and when funds are received from CESL. The gain to be recognised in the financial statements for the financial year ending Dec 31, 2019 will be US$5.0 million.

The Armada Perdana FPSO has been out of contract in Nigeria since its previous charterer, Erin Petroleum Nigeria Ltd, along with its parent company Erin Energy Corporation, filed for bankruptcy under Chapter 11 of the US Bankruptcy Code in April 2018.


Bumi Armada sells Armada Perdana FSPO for US$40m

PETALING JAYA: Bumi Armada Bhd’s wholly-owned subsidiary Armada Oyo Ltd (AOL) has entered into an agreement with Century Energy Services Ltd (CESL) for the sale of its Armada Perdana floating production storage & offloading (FSPO) for US$40 million (RM167.18 million).

CESL plans to redeploy the vessel to another field in Nigeria.

The purchase price will be settled via a US$5.5 million (RM23 million) deposit, of which US$4.5 million has been paid by CESL to AOL and the remaining to be payable before the end of 2019. A sum of US$11.6 million will be fully settled against amounts owed by companies within the Bumi Armada group to CESL as at July 31, 2019.

In addition, additional vessel expenses from August 1, 2019 up to the date the vessel is delivered to CESL will be set off against the purchase price. Another US$5 million will be paid to the group on or before the date of six months after the delivery date or when oil is first produced in the field, whichever is earlier. The remaining balance of US$17.9 million will be payable within two years from the first oil date.

The group will hold a mortgage over the Armada Perdana FPSO to secure the unpaid portion of the purchase price.

“The conclusion of the sale of the Armada Perdana FPSO will absolve the group from its demobilisation obligations,” Bumi Armada said.

The group will recognise the unpaid portions of the purchase price as and when funds are received from CESL. The gain to be recognised in the financial statements for the financial year ending Dec 31, 2019 will be US$5.0 million.

The Armada Perdana FPSO has been out of contract in Nigeria since its previous charterer, Erin Petroleum Nigeria Ltd, along with its parent company Erin Energy Corporation, filed for bankruptcy under Chapter 11 of the US Bankruptcy Code in April 2018.


Bumi Armada sells Armada Perdana FSPO for US$40m

PETALING JAYA: Bumi Armada Bhd’s wholly-owned subsidiary Armada Oyo Ltd (AOL) has entered into an agreement with Century Energy Services Ltd (CESL) for the sale of its Armada Perdana floating production storage & offloading (FSPO) for US$40 million (RM167.18 million).

CESL plans to redeploy the vessel to another field in Nigeria.

The purchase price will be settled via a US$5.5 million (RM23 million) deposit, of which US$4.5 million has been paid by CESL to AOL and the remaining to be payable before the end of 2019. A sum of US$11.6 million will be fully settled against amounts owed by companies within the Bumi Armada group to CESL as at July 31, 2019.

In addition, additional vessel expenses from August 1, 2019 up to the date the vessel is delivered to CESL will be set off against the purchase price. Another US$5 million will be paid to the group on or before the date of six months after the delivery date or when oil is first produced in the field, whichever is earlier. The remaining balance of US$17.9 million will be payable within two years from the first oil date.

The group will hold a mortgage over the Armada Perdana FPSO to secure the unpaid portion of the purchase price.

“The conclusion of the sale of the Armada Perdana FPSO will absolve the group from its demobilisation obligations,” Bumi Armada said.

The group will recognise the unpaid portions of the purchase price as and when funds are received from CESL. The gain to be recognised in the financial statements for the financial year ending Dec 31, 2019 will be US$5.0 million.

The Armada Perdana FPSO has been out of contract in Nigeria since its previous charterer, Erin Petroleum Nigeria Ltd, along with its parent company Erin Energy Corporation, filed for bankruptcy under Chapter 11 of the US Bankruptcy Code in April 2018.