(Jan 28): To many on Wall Street, the painful selloff that’s been racing through the Treasury market this month is only the opening act. On Wednesday, Federal Reserve Chair Jerome Powell’s hawkish tone added fuel to the rout after he said the bank is poised to start raising interest rates in March, sending two-year Treasury yields surging the most since March 2020. Despite the sharp rise in Treasury yields this month, those rates -- which serve as a benchmark for the financial system -- remain historically low, with yields still below the expected rate of inflation. The inflation adjusted, or real, 10-year Treasury yield is at minus 0.55%, a sign of ultra loose financial conditions. “The Fed is going to ultimately have to do something about it and I don’t think 7 hikes are going to do it.

KUALA LUMPUR: Axiata Group Bhd 's proposal to acquire a 66.03% stake in one of Indonesia's leading providers of high-speed broadband and cable TV could unlock synergies for the telco group.The group announced in a bourse filing yesterday that it has proposed to acquire PT LInk Net Rbk for IDR8.7 trillion (RM2.5bil) or IDR4,800/share via indirect wholly owned subsidiary Axiata Investments (Indonesia) Sdn Bhd and 61.48%-owned PT XL Axiata Tbk.TA Securities in a report said it expects Link Net to be a positive addition for XL due to the synergies that will be created. "According to the announcement, the complement of XL’s mobile business and Link Net’s fixed broadband business is expected to allow delivery of enhanced fixed-mobile converged proposition to both the retail and enterprise markets. "Significant synergies are also expected through the sharing of backbone and transmission networks, and the cross-selling of various services, it said.It added that the acquisition is deemed strategic as it will enable XL to strengthen its presence and fast-track expansion in Indonesia's underpenetrated and fast-growing fixed broadband market.Furthermore, the acquisition is expected to lead to a strong fixed-mobile proposition to help XL defend and grow its market share in Indonesia's highly competitive mobile market while also offering upside to average revenue per user, it said.TA Securities estimates Axiata's effective stake of 58.33% in Link Net to lift its 2023 forecast earnings per share for the group by about 5.9%.The assumptions are based on Link Net's 2020 net profit of RP900bil net estimated finance cost on 100% borrowings to fund the acquisition.The brokerage also expects the potential impact from the total purchase consideration of IDR8.7 trillion on Axiata and XL's balance sheet to increase gross debt to Ebitda from 1.6 times to 1.8x and 0.8 time to one time, which it considers manageable.TA Securities maintained its "buy" recommendation on Axiata with a target price of RM4.55.

KUALA LUMPUR (Jan 27): CapitaLand Malaysia REIT Management Sdn Bhd intends to lessen its reliance on the retail segment by diversifying into industrial real estate, logistics and data centres over the next year. Tan revealed that CapitaLand would then continue to focus on the Klang Valley in order to solidify its position before moving on to secondary cities such as Penang and Johor Bahru. “Once we have more concrete information, we definitely can be a bit more concrete and we will share it,” he added. Meanwhile, CapitaLand Malaysia Trust’s net loss narrowed to RM30.93 million in the financial year ended Dec 31, 2021 from RM84.50 million a year ago. Revenue fell 14.3% to RM224.11 million from RM261.34 million previously, mainly due to lower gross rental income, lower car park income, lower recovery of utilities and lower marketing communications income.

BANGKOK (Jan 27): Thai banks facing an uptick in Covid-19-fuelled bad loans got a reprieve with the central bank allowing them to form joint ventures with asset management companies to handle their non-performing credits and assets. The joint ventures "will help financial institutions manage non-performing assets more efficiently as well as to bring in the experience and expertise of asset management companies", Rung said. "This will provide financial institutions with additional resources to better take care of debtors who are in the recovery period." The ratio of non-performing loans was stable in the fourth quarter of last year due to debt-relief measures, she said. Non-performing loans at Thai banks rose to 3.14% of their total lending at the end of September, up from 3.09% at mid-year, according to central bank data.

KUALA LUMPUR (Jan 27): China Automobile Parts Holdings Ltd (CAP) is terminating the Memorandum of Understanding (MoU) to buy Master Tec Wire & Cable Sdn Bhd with immediate effect. The exercise also included a proposed exchange of CAP shares with Newco shares, proposed shares placement by Newco and a proposed transfer of listing status from CAP to Newco. CAP noted, the late issuance of Master Tec’s FY21 AFS may potentially delay the formulation of the proposed regularisation plan and its subsequent announcement and submission of the said plan. According to CAP, the termination of the MoU is not expected to have any financial impact on the company. CAP shares have been suspended from trading since June 8, 2017, after it failed to release its financial reports within the stipulated time.

PETALING JAYA: Those aged 18 and above will be able to walk into any integrated vaccination centre (PPV) in the Klang Valley for their Covid-19 booster dose starting Thursday (Jan 27), says the Health Ministry. In a statement Wednesday (Jan 26), the ministry said walk-ins would now be allowed at the following PPVs - World Trade Centre, Kuala Lumpur; Axiata Arena in Bukit Jalil; Ideal Convention Centre, Shah Alam; and Dewan Soka Gakkai, Klang. The ministry added that this was an effort to increase booster dose intake to ensure as much of the population is protected against more contagious Covid-19 variants such as Omicron. In the Klang Valley alone, 68.2% of the adult population have been inoculated with a booster dose, right behind Sarawak, which recorded the highest booster coverage so far with 69.5%. As of Jan 25, 2022, a total of 11,119,363 or 47.5% of the population in Malaysia have received their booster dose - this includes those 18-years-old and above.

Wall Street ended the day in mixed territory after spending most of the day up roughly 2%. Stocks shed those gains following an afternoon policy update from the Fed and press conference by Fed Chairman Jerome Powell, which suggested the Fed would push forward with interest rate hikes. The Dow Jones Industrial Average closed down 0.38%, while the S&P 500 fell 0.15% and the Nasdaq Composite gained just 0.02%. Stocks turned negative during his comments, as some investors bet the Fed would prioritize fighting inflation over ensuring robust economic growth. The Fed also said its policy-setting members had agreed on a set of principles for shrinking its balance sheet, set to start sometime after interest hikes begin.

MELBOURNE (Reuters) -After a phenomenal performance against Jannik Sinner on Wednesday, Greek Stefanos Tsitsipas feels as though he is in the zone to produce something special at the 2022 Australian Open. Injuries, including the elbow problem that threatened his participation in Melbourne this year, and difficult defeats had taught him the importance of remaining grounded. "You know when you're dancing and when you're doing well, you tend to glorify yourself, as if you are untouchable," he told reporters. Tsitsipas is hoping it will be third time lucky for him in an Australian Open semi-final. After defeating Roger Federer on the way to a semi-final in 2019, he found Rafa Nadal too strong.

PETALING JAYA: Economists are predicting a higher dividend payout for Employees Provident Fund (EPF) contributors for the year 2021. “EPF has remained committed and guided by its Strategic Asset Allocation (SAA) that has helped it endure volatile market conditions,” said Mohd Afzanizam. Speaking on the increase of the mandatory retirement age, Malaysian Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman, said it was not the right time. Those beyond retirement age should be encouraged to remain in employment depending on their performance and health status, he said. “Rehiring them on a contractual basis is a more efficient method than enforcing a general blanket increase in retirement age,” he said.

KUALA LUMPUR (Jan 26): Financial technology (fintech) firm Boost Holdings Bhd is poised to expand its presence in the financial sector by focusing on banking and lending segments while persistently seeking new markets. Boost chief executive officer Sheyantha Abeykoon said the company is confident of obtaining one of the five digital banking licences offered by BNM because it submitted a fairly strong application and is positive on the consortium's application. "We engaged in a very deep engagement with BNM and the regulator when the digital banking licence application came, and we already know what technology is required, at least from a technological standpoint. Commenting on Boost’s performance last year, Sheyantha said the fintech firm recorded gross total value transactions of US$1.2 billion and over US$900 million loans were disbursed. The fintech business is operated by five different entities — Boost Life, Boost Biz, Boost Credit, Boost Connect and Boost Indonesia, making it one of the few fintech companies to operate a payment, lending, merchant solutions and cross border remittance platform at scale in Malaysia.

KUCHING (Jan 26): Samsung Engineering Co Ltd, one of the world’s leading engineering, procurement and construction (EPC) and project management companies, has signed a memorandum of understanding (MoU) to develop a green hydrogen and ammonia project in Sarawak. “The H2biscus project aims to convert hydropower and natural gas to green hydrogen/methanol and blue hydrogen and convert hydrogen to ammonia, with the target to supply hydrogen and ammonia to South Korea and Sarawak,” Samsung Engineering said in a statement made available here on Wednesday (Jan 26). Samsung Engineering president and chief executive officer Sungan Choi said the project would bring an opportunity to produce a wide range of eco-friendly products, such as green hydrogen, green and blue ammonia, green methanol, and carbon capture and utilisation. “The partnerships with Samsung Engineering, Posco and Lotte Chemical will make this a reality which we truly value and appreciate. Samsung Engineering is currently executing the Sarawak PetChem methanol plant project in Bintulu, which is expected to produce 5,000 tonnes per day of methanol.

(Jan 26): Retail investors who netted billions in the legendary pandemic bull market are getting schooled on stock volatility at long last, as the rates-fueled rout resumes. Now the selloff has resumed with the S&P 500 falling as much as 2.8% in the Tuesday session before paring losses. “The current crop of retail investors came into the markets during a period of QE, zero percent interest rates, and there-is-no-alternative,” said Matthew Tuttle, chief executive officer at Tuttle Capital Management LLC. At the same time, JPMorgan Chase & Co. strategists led by Marko Kolanovic continued to urge investors to buy the dip. According to a recent survey of global retail investors from eToro, roughly a quarter of the respondents have been investing for two years or less.

KUALA LUMPUR (Jan 25): Consumer electrical and electronics retailer Senheng New Retail Bhd faltered on its maiden trading day on Bursa Malaysia’s Main Market on Tuesday (Jan 25). It opened at 90 sen and rose to as high as RM1.01 before closing at 85.5 sen, representing a 21.5 sen or 20.09% discount from its initial public offering (IPO) price of RM1.07. Senheng is the largest consumer electrical and electronics chain retailer in Malaysia with a chain of 105 physical stores — operating under four different store concepts, namely Grand Senheng Elite, Grand Senheng, Senheng and senQ — which are located throughout Malaysia and online platforms, while carrying around 10,000 stock-keeping units from over 280 different brands, according to its prospectus. Meanwhile, TA Securities initiated coverage of Senheng in a research note on Jan 6, with a target price of RM1.21, representing a 13.08% or 14 sen premium to its IPO price of RM1.07. The research house added that the IPO price of RM1.07 would value the consumer electrical and electronics retailer based on a trailing price-earnings ratio of 28.8 times based on its calendar year 2020 earnings.

KUALA LUMPUR (Jan 25): XOX Networks Bhd, formerly known as Macpie Bhd, said Grant Thornton Malaysia PLT has resigned as the group’s auditors. The group said it has received notice in writing of Grant Thornton Malaysia’s decision to resign, adding that the auditors' term of office will end after 21 days from Monday (Jan 24). XOX Networks is in the midst of identifying new auditors, according to its filing with Bursa Malaysia. “Further announcement will be made by the company in due course once the appointment of the new auditors is finalised,” it said. XOX Networks shares settled at four sen, up half a sen or 14.29%.

(Jan 25): Bears are on the prowl in markets while a different sort menaces Europe's eastern flank. Clearly dip-buyers haven't entirely fled equity markets. The impulse hasn't carried through, with Asia deep in the red and Wall Street futures down almost 2%. In the middle of this market churn, the Fed starts a two-day meeting which may well be the last before a March interest rate liftoff. And after all, they add "the worst-case scenario could see the return of the Fed put".