CPO futures likely to see profit-taking next week
KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade lower next week on profit-taking after prices rallied to above RM5,600 a tonne, Interband Group of Companies senior palm oil trader Jim Teh said. "The market is forecast to trade between RM5,000 and RM5,100 per tonne next week,” he told Bernama. Meanwhile, palm oil trader David Ng said CPO is expected to trade on a downward bias as profit-taking is expected to emerge due to the recent rally in prices. For the week just-ended, the CPO futures finished higher tracking gains in the crude oil market, stronger soybean oil performance on the US Chicago Board of Trade, and Indonesia’s restriction on CPO exports. The physical CPO price for February South rose RM300 to RM5,800 a tonne.
Source:The Star
January 29, 2022 07:42 UTC
Top Builders, formerly known as Ikhmas Jaya, now under PN17
KUALA LUMPUR (Jan 28): Top Builders Capital Bhd — formerly known as Ikhmas Jaya Group Bhd — has been classified as a Practice Note 17 (PN17) company after Bursa Malaysia Securities Bhd rejected the company's application for a six-month extension of the relief period. As such, it continues to trigger the PN17 criteria of the Main Market Listing Requirements (MMLR). "[The company] is now classified as a PN17 listed issuer of which the requirements under PN17 of the MMLR shall apply to Top Builders with effect from Dec 30, 2021," it added. An announcement on Top Builder triggering the PN17 criteria was also made by Bursa Securities. Top Builder first triggered the PN17 criteria in 2020.
Source:The Edge Markets
January 29, 2022 03:08 UTC
Sustainable recovery down south
THE Johor residential property market witnessed plenty of uncertainty over the past couple of years as a result of the Covid-19 pandemic. However, amid brighter economic prospects and better control over the Covid-19 crisis in the country, the market is expected to stage a sustainable recovery in 2022. However, Samuel says the Johor residential market is only expected to see a marginal improvement rather than a V-shaped recovery. “Landed residential units priced below RM700,000 in good locations are still in demand. In the first nine month of 2021, Lo says the Johor property market suffered due to lengthened lockdown periods that were implemented by the government.
Source:The Star
January 29, 2022 00:16 UTC
Affin Hwang Asset Management deal bumps up CVC Capital’s Malaysian investment to above US$1 billion
KUALA LUMPUR (Jan 28): CVC Capital Partners' purchase of a 68.35% stake in Affin Hwang Asset Management Bhd (Affin Hwang AM) for RM1.54 billion is the private equity fund’s sixth investment in Malaysia since 2007, bringing its total capital invested to over US$1 billion. “We are particularly excited to partner with Affin Hwang AM’s talented management team, who has shown a track record of outperformance, and Nikko Asset Management (Nikko AM), who will remain as a strategic shareholder. CVC’s unit Starlight Asset Sdn Bhd has signed a conditional share purchase agreement with Affin Bank Bhd to take over the controlling stake of Affin Hwang AM. The sale values Affin Hwang AM, whose assets under management amount to RM81 billion, at RM2.25 billion. "We are delighted to continue our long-term partnership with the [Affin Hwang AM] management team and welcome CVC.
Source:The Edge Markets
January 28, 2022 21:20 UTC
January's treasury losses were brutal, but it may be just the start
(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.
Source:The Edge Markets
January 28, 2022 16:51 UTC
Axiata's proposed Link Net acquisition to create new synergies
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.
Source:The Star
January 28, 2022 15:38 UTC
CapitaLand to reduce reliance on retail, ventures into industrial real estate, logistics, data centres
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.
Source:The Edge Markets
January 28, 2022 08:04 UTC
Thai banks get green light to form ventures to tackle bad loans
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.
Source:The Edge Markets
January 28, 2022 01:05 UTC
PN17 China Automobile ends MoU to buy Master Tec as latter's late financial statements stymie regularisation plan
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.
Source:The Edge Markets
January 27, 2022 20:17 UTC
Covid-19: Adults can walk in for booster jabs starting Jan 27
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.
Source:The Star
January 27, 2022 06:11 UTC
Stocks shed gains, Treasuries jump as Fed signals rate hikes could come 'soon'
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.
Source:The Edge Markets
January 27, 2022 00:50 UTC
Tennis-Tsitsipas dances into Australian Open semis with Sinner thrashing
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.
Source:The Star
January 27, 2022 00:47 UTC
EPF payout could hit 6%
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.
Source:The Star
January 26, 2022 23:57 UTC
Boost confident of securing digital banking licence, ready to deepen foothold
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.
Source:The Edge Markets
January 26, 2022 17:19 UTC
Samsung Engineering plans green hydrogen, ammonia project in Sarawak
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.
Source:The Edge Markets
January 26, 2022 15:28 UTC