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Breakfast briefing: Tuesday, June 14

by June 14, 2016 General

MarketWrap: Wall Street stumbled for a third straight session on Monday as tech stalwarts Microsoft and Apple dragged on indexes and investors braced for major economic and political events in the United States and Europe. – Reuters

The DJIA closed down 132.86 points, or 0.74%, to 17,732.48, the S&P 500 lost 17.01 points, or 0.81%, to 2,079.06 and the Nasdaq dropped 46.11 points, or 0.94%, to 4,848.44.

Forex summary

*The ringgit gained 0.02% to 4.0893 per US$

*It was 0.16% lower to 4.6169 per euro

*Down 0.43% to 5.8123 to the pound sterling

*0.13% lower to 3.0166 per Singapore dollar

*0.20% up to 3.0212 per Aussie

*Up 0.06% to 3.8470 per 100 yen


Oil prices edged lower on Monday, pressured by a strong U.S. dollar and gloomy economic prospects in Europe and Asia, but supported by ongoing supply outages in Nigeria. Brent crude oil futures LCOc1 settled down 19 cents, or 0.4%, at US$50.35 per barrel. – Reuters

Top foreign stories

Microsoft agrees to buy LinkedIn for US$26.2b: Microsoft Corp agreed to buy LinkedIn Corp for US$26.2 billion (RM106.89 billion) in cash, the companies said. The offer of US$196 per share represents a premium of 49.5% to LinkedIn’s closing price last Friday.

South Korea’s Hotel Lotte postpones US$4.5b IPO indefinitely after raids: South Korea’s Hotel Lotte Co Ltd said on Monday it was indefinitely postponing its IPO worth up to US$4.5 billion, as the wider Lotte Group reeled from the impact of a series of raids on group firms by prosecutors. – Reuters

Nokia signs US$1.5b framework deal with China Mobile: Nokia has signed a 1.36 billion euro (US$1.5 bln) one-year framework deal with China Mobile, the Finnish company said on Monday, easing fears that it would lose market share while it merges operations with Alcatel-Lucent. – Reuters

Top local stories

Auto players say timing not right for Govt to implement B10: Some automotive players are crying foul over the upgrading of the B7 (petroleum diesel blend consisting of 7% palm methyl ester) to the B10 biodiesel blend to be used for the transport sector progressively effective this month. Industry sources said diesel-powered vehicles are not ready for this regulatory move and that the B7 blend is still preferred, given the many unknown factors with the B10 adoption so far. – StarBiz

The Avengers to assemble in Singapore: Star Media Group Bhd’s Singapore- listed subsidiary, Cityneon Holdings Ltd, is gearing up to assemble Marvel’s The Avengers in Singapore this October. Known as the Marvel Avengers S.T.A.T.I.O.N. (Scientific Training And Tactical Intelligence Operative Network), the interactive exhibition will take up 20,000 sq ft at the Science Centre Singapore. – StarBiz

Crest Builder clinches RM438mil contract: Crest Builder Holdings Bhd has clinched a RM438.3mil contract to build residential and commercial buildings at Sime Darby Property’s KL East development in Setapak, Kuala Lumpur. – StarBiz

BAuto net profit dips slightly to RM52mil: Berjaya Auto Bhd (BAuto), the distributor of Mazda vehicles, saw a slight decline in net profit during the fourth quarter to RM51.6mil from RM55.3mil a year ago, despite recording higher revenue. Auto recommended a fourth interim dividend of 2.50 sen a share and a special dividend of 7.50 sen a share. – StarBiz

BCorp injects Bauto shares into SPV: Berjaya Corp Bhd (BCorp) is selling its remaining 113 million shares in Berjaya Auto Bhd (BAuto) to a special-purpose vehicle (SPV) for RM237.3mil, or RM2.10 a share. Upon the completion of the disposal, BCorp will no longer have any direct interest in BAuto but will indirectly hold about 17.11% in BAuto via its 33.3%-owned SPV. – StarBiz

Knusford wins RM43mil job in Pengerang from Petronas: Knusford Bhd has been awarded a RM42.9mil contract by Petroliam Nasional Bhd for the engineering, procurement, construction and commissioning of buildings in Pengerang, Johor. – StarBiz

Shell, Technip-MMHE complete Malikai platform: Shell and Technip-MMHE Joint Venture have completed the onshore fabrication and commissioning of the Malikai deep-water platform. – StarBiz

Ishak charged with making misleading statements: Businessman Datuk Ishak Ismail has been charged at a Sessions Court with making misleading statements in relation to dealing in shares of furniture manufacturer Kenmark Industrial Co (M) Bhd in 2010. – StarBiz

Perak seeks return of undeveloped land from Sunway: The Perak government, which is a joint partner in the Sunway City Ipoh development, has asked Sunway Bhd to return the undeveloped portion of the land in their joint development agreement dated Sept 11, 1997, but Sunway wants to refer the matter to arbitration. – StarBiz

Bank Muamalat turns in better pre-tax profit: Bank Muamalat Malaysia Bhd’s profit before tax for its financial year ended March 2016 rose 36.9% to RM167.2mil. Its revenue increased 12.9% to RM1.210bil, boosted by an18.7% growth in financing income. – StarBiz

AirAsia shares surge on bumper dividend hopes: Shares in AirAsia Bhd climbed to its highest level in more than a year on hopes the low cost airline will pay out a bumper dividend from the impending sale of its aircraft leasing business. CIMB Research expects 96 sen a share payout assuming the deal goes through. – StarBiz

CPO prices likely to get a boost: Falling crude palm oil (CPO) stockpile in the country, which hit a five-year low in May, will boost prices of the commodity in the short term, but analysts say the impact on planters’ earnings will be harder to predict given the recent weak production numbers. – StarBiz

MAHB says no to AirAsia’s proposed ‘klia2 is LCCT2’ campaign: Kuala Lumpur International Airport 2 (klia2) is neither an independent airport nor a hub, Malaysia Airports Holdings Bhd (MAHB) said, in rejecting AirAsia Bhd’s proposed campaign to promote the budget terminal as Low-Cost Carrier Terminal 2 (LCCT2). – Edge FD

Westports poised to lose biggest customer CMA CGM: Westports Holdings Bhd is poised to lose its largest customer, French container shipping firm CMA CGM SA, which is planning to move its shipping traffc from Malaysia to Singapore following a deal with the Port of Singapore (PSA), according to a report by French daily Les Echos, cited by Reuters on Monday. – Edge FD

Penang sees lower FDI in first quarter: Penang, which attracted the highest amount of foreign direct investment (FDI) among all states in 2015, is expecting a slowdown this year as business sentiment has turned cautious. – Edge FD