Breakfast briefing: Thursday, January 28

Market wrap: Wall Street dropped sharply on Wednesday after the US Federal Reserve frustrated stock investors hoping for a strong sign it might scale back future interest rate hikes because of recent financial and economic turmoil. In a widely expected decision, the Fed kept interest rates unchanged and it said it was "closely monitoring" global economic and financial developments, but it maintained an otherwise upbeat view of the US economy. - Reuters

The DJIA ended down 1.38% at 15,944.32 points, the S&P 500 lost 20.68 1.09% to 1,882.95 and the Nasdaq dropped 2.18% to 4,468.17.

Forex summary

*The ringgit declines 0.26% to 4.2627 per US$

*It falls 0.54% to 4.6463 per euro

*Up 0.17% to 6.0762 to the pound sterling

*0.02% up to 2.9775 per Singapore dollar

*0.15% lower to 2.9930 per Aussie

*Down 0.37% to 3.5962 per 100 yen

Energy

US crude futures fell more than 1% in Asian trading on Thursday, paring gains of nearly 3% in the previous session, after Russia held out the possibility of cooperating with Opec to control global oversupply. Brent crude ended up US$1.30, or 4.1%, at US$33.10 a barrel. - Reuters

Top foreign stories

Fed keeps rates unchanged, wary eye on global market: The US Federal Reserve kept interest rates unchanged on Wednesday and said it was "closely monitoring" global economic and financial developments, signalling it had accounted for a stock market selloff but wasn't ready to abandon a plan to tighten monetary policy this year. Fed policymakers said the economy was still on track for moderate growth and a stronger labor market even with "gradual" rate increases, suggesting its concern about global events had diminished but not squashed chances of a rate hike in March. - Reuters

Shell shareholders approve US$50b BG takeover: Royal Dutch Shell shareholders approved its US$50 billion takeover of BG Group on Wednesday, clearing the last main hurdle to creating the biggest liquefied natural gas trader in the world. BG shareholders are also expected to approve one of the biggest deals in the energy sector in the past decade at a meeting on Thursday, a vote that would allow the two oil and gas companies to merge on Feb 15. - Reuters

Samsung Elec warns of difficult 2016 as smartphone market peaks: Tech giant Samsung Electronics Co Ltd on Thursday warned of possible weaker earnings this year compared with 2015 due to softer sales of gadgets such as smartphones, a trend that is also hurting rival Apple Inc and major chipmakers. - Reuters

Apple shares fall most in two years in wake of earnings report: Apple Inc shares fell more than 6.5% on Wednesday, the biggest percentage drop in two years, after the company reported its slowest-ever rise in iPhone shipments and forecast that quarterly sales for the current period would post the first drop in 13 years. - Reuters

Top local stories

Pengerang faces challenges in securing new investors for latter stages: The planners of the multi-billion ringgit oil and gas hub in Pengerang, Johor are finding it difficult to secure investors for its latter phases, as global players rein in investment plans owing to plummeting oil prices. - StarBiz

Singapore court says No to Soh’s bid to return to Malaysia: Singapore’s Court of Appeal on Wednesday turned down an application by Datuk Soh Chee Wen that his police bail be amended to allow him to travel to Malaysia between Feb 6 and 23 to visit his ailing mother and attend his son’s wedding. The prosecution contended  that charges may be brought against Soh in relation to the “penny stock” collapse in October 2013. - StarBiz

SC can protect witnesses’ statements: The Federal Court ruled in favour of the Securities Commission’s (SC) appeal to protect statements provided by its witnesses, saying statements given by individuals to the SC are considered to be communications made to a public officer in official confidence. - StarBiz

KWAP completes purchase of KL land: Kumpulan Wang Persaraan (Diperbadankan) or KWAP has concluded the acquisition of a development land in Kuala Lumpur for RM140mil, which will be developed into projects with an estimated gross development value of RM780mil. The 5,048-sq-m land was bought from the Federal Government. - StarBiz

Syarikat Takaful earnings up on higher sales: Syarikat Takaful Malaysia Bhd’s net profit for the financial year ended Dec 31, 2015, rose 11% to RM155.98mil on higher sales from both family and general takaful as well as higher net investment income. Its revenue rose 8.2% to RM1.79bil. - StarBiz

Poh Kong ‘cautiously optimistic’: Poh Kong Holdings Bhd remains “cautiously optimistic” of sustaining profits for its financial year 2016. The group has also forecasts steady demand for gold, as customers turn to commodity to hedge against inflation and a slowing economy. - StarBiz
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Mier forecasts Malaysia’s GDP growth at 4.7% for 2016: The Malaysian Institute of Economic Research (Mier) estimates Malaysia’s gross domestic product growth for 2016 at 4.7%, compared with the estimated 4.9% growth for 2015. Executive director Dr Zakariah Abdul Rashid said the country’s economy will continue to be domestically driven and remain fundamentally strong but stabilisation issues will need to be addressed. - Bernama

DNeX counts on new ops: Dagang Nexchange Bhd (DNeX) hopes to double its revenue this year as the effects of its newly-ventured energy business kick in. DNeX’s acquisition of the entire equity interest in OGPC Sdn Bhd and a 52% equity interest in OGPC O&G Sdn Bhd will see the company having two core businesses, with the ICT providing it with the cash-flow. - StarBiz

Tropicana takes cautious stance: Tropicana Corp Bhd will thread cautiously this year given the soft property market, said its group chief executive officer Datuk Yau Kok Seng. The company will be selective in launching its properties in 2016 although its 2015 sales target had exceeded the previous year’s figure, he said. - StarBiz

LPI Capital earnings higher at RM321mil: LPI Capital Bhd's earnings for financial year 2015 rose 13.4% to RM320.99mil while revenue came in 9.8% higher at RM1.284bil underpinned by healthy growth in gross premium income but it foresees challenges ahead. - StarBiz

Govt sees up to RM11b shortfall with US$30 oil: Putrajaya is expected to face a revenue shortfall of between RM5 billion and RM11 billion, based on the assumption that crude oil prices average at US$30 per barrel this year and that Government maintains its fiscal deficit target at 3.1% of gross domestic product, said economists. - Edge FD

Fernandes to deal in AirAsia shares: AirAsia Bhd’s group chief executive officer Tan Sri Tony Fernandes intends to deal in the co pany’s shares during the closed period prior to the release of its results for the fourth quarter ended Dec 31, 2015. In a filing with Bursa Malaysia, AirAsia said Fernandes owns 530.14 million shares or 19.05% of the company. - Edge FD

Malaysia’s healthcare spending may rise to US$20b by 2020: Malaysia’s healthcare spending could rise to as high as US$20 billion (RM85 billion) by 2020, due to the rising incidence of chronic diseases, increasing healthcare costs and a weak ringgit, according to consulting firm Frost & Sullivan. - Edge FD

AGMs/EGMs

Homeritz Corporation Bhd

Time: 11am

Venue: Level 9, Classic 1, Banquet Meeting Hall, Hotel Classic, Muar, Johor

Chin Teck Plantations Bhd

Time: 10.30am

Venue: Conference Room, Suite 2B-3A-3, Block 2B, Level 3A, Plaza Sentral, Jalan Stesen Sentral 5, Kuala Lumpur

WZ Satu Bhd

Time: 10am/10.45am

Venue: Kristal Ballroom 1, Level 1, West Wing, Hilton Petaling Jaya, Petaling Jaya, Selangor

WZ Satu is seeking shareholder approval for:

* A 1-for-5 bonus issue

* The establishment of a long-term plan for eligible executives of the company and its subsidiaries and executive directors of the company.

Saudee Group Bhd

Time: 9am

Venue: Helang Hall, Cinta Sayang Resort, Persiaran Cinta Sayang, Sungai Petani, Kedah

Saudi Group is seeking shareholder nod for a renounceable two-call rights issue one the basis of one share for every three shares held together with free detachable warrants.

Ingenuity Consolidated Bhd

Time: 10.30am

Venue: 16th Floor, Persoft Tower, 6B, Persiaran Tropicana, Tropicana Golf & Country Resort, Petaling Jaya, Selangor

Ingenuity seeks shareholder approval for the company's name change to MMAG Holdings Bhd.

Mah Sing Group Bhd

Time: 10am

Venue: Penthouse Suite 1, Wisma Mah Sing, No. 163, Jalan Sungai Besi, Kuala Lumpur

Mah Sing seeks shaholder approval for variation of utilisation of proceeds raised from its renounceable rights issue with warrants which was completed on Feb 26, 2015.