Genting Malaysia shares active, down 10 sen in early trade as FOX files counterclaim

PETALING JAYA: Genting Malaysia Bhd’s (GENM) share price fell as much as 10 sen this morning on news of FOX filing a counterclaim seeking US$46.4 million (RM191.7 million) from GENM.

The stock opened lower at RM3.19 this morning and traded at a low of RM3.16 compared with its last adjusted closing price of RM3.26. At 11.17am, the stock fell 8 sen or 2.45% to RM3.18 with 12.14 million shares traded, making it one of the top losers and top active stocks on the bourse.

Yesterday, GENM told Bursa Malaysia that Fox Entertainment Group LLC, Twentieth Century Fox Film Corp and FoxNext LLC (collectively known as FOX) and The Walt Disney Company had on Jan 22 filed answers to its lawsuit, but at the same time filed a counterclaim alleging breach of the implied covenant of good faith and fair dealing.

In addition, FOX is claiming a sum of RM191.7 million in respect of annual licence fees, guarantee amounts/royalties and travel reimbursements pursuant to the memorandum of agreement dated June 1, 2013, as amended, as well as consequential damages, reasonable costs and other relief under applicable law.

To recap, GENM is suing FOX and The Walt Disney Company for more than US$1 billion (RM4.13 billion) for terminating their contract to develop a Fox-branded theme park at Resorts World Genting in Malaysia.

Bursa remain higher at mid-morning

KUALA LUMPUR, Jan 24 — Bursa Malaysia remained higher at mid-morning, in line with most of its regional peers, due to emerging buying interest as investors took chance from the cheaper stocks price, a dealer said. At 11am, the…

Bursa rebounds on buying sentiment

KUALA LUMPUR, Jan 24 — Bursa Malaysia rebounded from yesterday's losses to open slightly higher today, spurred by renewed buying interest in selected heavyweights as lower share prices attracted investors back into the market, dealers…

Bursa M’sia rebounds in early trade

KUALA LUMPUR: Bursa Malaysia rebounded from yesterday’s losses to open slightly higher today, spurred by renewed buying interest in selected heavyweights as lower share prices attracted investors back into the market, dealers said.

At 9.23 am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) was 0.62 of-a-point higher at 1,688.76, from yesterday’s close of 1,688.14 after opening 1.16 points higher at 1,689.30.

Market breadth was positive, as gainers outnumbered losers 206 to 130, while 172 counters were unchanged, 1,391 untraded and 24 others suspended.

Turnover amounted to 258.40 million shares worth RM105.46 million.

In a research note today, Maybank IB Research believed the the FBM KLCI would range between 1,680 and 1,710 points today, with downside supports at 1,658 and 1,644 points.

“The FBMKLCI Index pared earlier losses but it still ended in negative territory yesterday, taking cue from the weaker regional performance.

“Despite the cooling off yesterday, second and third liners will continue to be in the spotlight, at least in the near term,” it said.

Among heavyweights, Maybank and CIMB rose two sen each to RM9.56 and RM5.68, respectively, TNB added four sen to RM13.58, Petronas Chemicals improved five sen to RM8.47 but Public Bank slipped two sen to RM24.78.

Of actives, Hubline and Inix Technologies earned half-a-sen each to 6.5 sen and 10 sen, respectively, V.S Industry gained three sen to 81.5 sen, while Eduspec was flat at 2.5 sen.

The FBM Emas Index was 11.50 points higher at 11,674.22, the FBMT 100 Index increased 10.75 points to 11,557.63, the FBM Emas Shariah Index advanced 16.42 points to 11,591.87, the FBM 70 bagged 39.78 points to 13,735.21 and the FBM Ace Index rose 1.11 points to 4,444.89.

Sector-wise, the Finance Index went up 31.66 points to 17,549.42, the Plantation Index recovered 4.24 points to 7,252.75 and the Industrial Products and Services Index earned 0.81 of-a-point to 162.09.

Gold futures contracts on Bursa Malaysia Derivatives opened untraded today.

As at 9.45 am, January 2019, February 2019, March 2019 and April 2019 remained at RM170.30, RM170.30, RM170.80 and RM170.90 a gramme, respectively.

Volume was nil, while open interest amounted to 23 contracts.

At 9.30 am, the price of physical gold was up down by 49 sen to RM165.08 per gramme from RM164.57 per gramme at the close yesterday. — Bernama

Miti: Malaysia to explore potential collaborations with Palestine

KUALA LUMPUR, Jan 24 — Malaysia is committed to bring a government and business delegation, including Khazanah Nasional Bhd, to Palestine to explore potential collaborations in Islamic finance, agriculture and renewable energy. In a statement…

FGV appoints Haris Fadzilah as CEO

KUALA LUMPUR: FGV Holdings Bhd has appointed Datuk Haris Fadzilah Hassan as its group chief executive officer, effective yesterday, replacing Datuk Zakaria Arshad who resigned in September last year. In a filing with Bursa Malaysia, FGV said Haris comes with 28 years of experience in the corporate sector, especially in strategy and change management. “Most […]

Timber, products exports likely to grow this year

KUALA LUMPUR: Malaysia’s exports of timber and timber products are expected to grow to RM23 billion in 2019 from RM22.30 billion estimated last year on strong demand from India and as Malaysia seeks new markets in Oceania. Malaysian Timber Industry Board (MTIB) deputy director-general Norchahaya Hashim said the strategy of penetrating new markets would also […]

Perodua charts sales record, targets 231,000 units in 2019

KUCHING: Perodua, which recorded its best-ever sales performance of 227,243 units in 2018, aims to better that figure by four per cent to 231,000 units by end-2019, underpinned by the Myvi and the recent introduction of the Aruz. The Myvi was Perodua’s best-selling model in 2018, with 82,122 registered out of 117,844 booked in that […]

Dyson moves vacuum giant’s HQ to Singapore

LONDON: James Dyson, the billionaire Brexit supporter who revolutionised vacuum cleaners with his bagless technology, is moving his head office to Singapore from Britain to be closer to his company’s fastest-growing markets. Dyson’s company said the move to Singapore, where it will build its new electric car, was not driven by Britain’s looming departure from […]

Malaysia may feel bite of China economic slowdown

PETALING JAYA: The slowdown in China may impact Malaysia more given the strong trade linkage with China, according to PublicInvest Research.

“China is not only our biggest trade partner in 2018 (YTD 2018: 16.7%) but also our largest export market (YTD 2018: 13.9%) and our second biggest import source after Singapore (YTD 2018:19.8%). This could bring negative ramifications not only to Malaysia but also to other peers like Singapore, Thailand, Indonesia and the Philippines and hence, the growth prospects of Asean-5,“ the research house said in a report today.

In fact, it said, the simmering trade stress has caused noticeable dent to export momentum in November with Singapore, Thailand and Indonesia suffering a contraction in exports. This could be repeated in December.

PublicInvest Research said unfavourable outcomes to the trade negotiation may see longer times taken for growth to normalise due to demand deficiencies which are always more damaging than supply shocks.

“Other than this, the pullback in global financial and commodity markets arising from pockets of stress mentioned above can hurt Malaysia as well due to contagion effects. This can bring down the ringgit in addition to putting a cap in the prices of our key commodity exports like crude oil, crude palm oil and rubber,“ it explained.

The slowdown in China is particularly alarming and shows signs of worsening following the release of its 2018 growth of 6.6% (2017: 6.8%), the slowest since 1990.

“We don’t see negative surprises in this as it is within the People’s Bank of China’s estimates,“ it said, adding that the International Monetary Fund (IMF) expects China’s slowdown to continue, forecast to ease to 6.2% in 2019 amid firmed commitment to reforms and rebalancing on the back of the trade collision with the US.

PublicInvest Research said the slew of IMF downgrades could result in negative ramifications not only to global financial markets but also commodities. Risk aversion could heighten, pushing investors to take less risks which may be precursor to elevating demand for safe haven assets particularly bonds.

“Among all the growth risks mentioned by IMF, we are particularly concerned over China given its extensive trade network and huge economy.”

PublicInvest Research said unfavourable trade negotiations could be harmful not only to China’s outlook but also emerging economies, particularly Asean, given their strong interdependence on trade. This could lead to inexorable downturns to Asean economies, particularly those that depend on China’s exports (intermediate goods).

“Over and above all, we think that China still has sufficient tools to support growth should trade negotiations turn unfavourable although the impact could still be there.”