MarketWrap: Wall Street ended mixed on Monday after a rally in Allergan Plc and other healthcare companies offset a decline in energy shares. Five of 10 S&P sectors ended higher, led by the health sector's 1.13% increase, while energy and materials sectors both tumbled 1.25%. - Reuters
The DJIA ended down 0.2% at 17,705.91 points, the S&P 500 edged up 0.08% to 2,058.69 and the Nasdaq added 0.3% to 4,750.21.
Forex summary
*The ringgit lost 0.94% to 4.0500 per US$
*It declined 0.92% to 4.6139 per euro
*Down 0.83% to 5.8377 to the pound sterling
*0.43% down to 2.9529 per Singapore dollar
*0.34% lower to 2.9590 per Aussie
*Down 0.81% to 3.7338 per 100 yen
Energy
Oil prices tumbled on Monday on expectations that US crude inventories would again build to record highs, taking the market's focus off swooning Canadian oil output due to raging wildfires. Brent's front-month, July LCOc1, tumbled by US$1.74, or 3.8%, to settle at US$43.63. It had risen as high as US$46.48. - Reuters
Top foreign stories
Japanese regulator says banks should keep role in determining lending risks: A move by banking regulators to curb the ability of banks to assess for themselves their lending risks could backfire if as a result they lose the incentive to reduce those risks in order to cut the amount of capital they must hold as a buffer against possible defaults, a senior Japanese regulator said on Monday. - Reuters
Medivation succumbs to pressure to explore sale: US cancer drug maker Medivation Inc has decided to explore a sale following a US$9.3 billion acquisition offer from France's Sanofi SA and interest from other companies, people familiar with the matter said on Monday. - Reuters
US companies brighten their earnings outlook: The profit recession that has weighed on large-cap stocks on Wall Street for the past three quarters may be loosening its grip as US companies allow a hint of blue sky to poke through the gloom. As companies share their expectations for coming months, the proportion of raised forecasts to those that are lowered is the healthiest it has been since 2011, according to Thomson Reuters data. - Reuters
Top local stories
MISC sells logistics arm: MISC Bhd
is disposing of its entire stake in wholly-owned subsidiary MISC Integrated Logistics Sdn Bhd (MILS) to Swift Haulage Sdn Bhd for RM257.2mil.MISC said Swift would also fully repay the shareholders loan, owed by MILS, to MISC of RM66.8mil upon completion of the deal, in addition to other receivables due from MILS to MISC of up to RM34mil. - StarBiz
IOI challenges suspension of its RSPO certification: IOI Corp Bhd, one of the founding members of the Roundtable on Sustainable Palm Oil (RSPO), is challenging the decision by the RSPO board of governors to suspend its sustainability certificates. The palm oil giant said it had filed a challenge proceeding with the Justice of Peace in Zurich, where the seat of the not-for-profit association is located. - StarBiz
FGV: Smallholders marginalised by RSPO standards: Felda Global Ventures Holdings Bhd (FGV) is urging the Roundtable of Sustainable Palm Oil (RSPO) to re-examine existing certification standards for the tens of thousands of smallholders who currently do not have the means to apply them. - StarBiz
TNB buys 30% stake in India's GMR for RM1.2bil: Tenaga Nasional Bhd (TNB) has entered into a conditional share subscription deal to buy a 30% stake in India-based GMR Energy Ltd for US$300mil (RM1.21bil) cash, as part of its plan to secure new generation capacity internationally. - StarBiz
PetGas Q1 profit marginally lower: Petronas Gas Bhd posted a slight drop in net profit to RM447.16mil for the first quarter due to a higher tax expenses. Its revenue came in at RM1.13bil. - StarBiz
PetChem posts lower earnings: Petronas Chemicals Group Bhd (PetChem) posted a marginal decline in net profit for the first quarter of RM592mil on stronger operational perfor- mance with higher plant utilisation. Its revenue was flat at RM3.147bil on a higher sales volume and the stronger US dollar offsetting the impact of lower average product prices. - StarBiz
Fernandes lobbies for consolidation: AirAsia Bhd chief executive officer Tan Sri Tony Fernandes is not ruling out consolidation of the low-cost carrier’s regional airline units into an entity. “This has always been my plan, to consolidate, but we have to talk to many different authorities to do so. There is no timeframe yet,” he said. - StarBiz
YTL Power raises stake in Jordan’s APCO to 45%: YTL Power International Bhd has increased its stake to 45% in the US$2.1bil 554-MW oil shale project being developed by Attarat Power Company (APCO) in Jordan. - StarBiz
Ncell’s unusual tax move: In unusual move to resolve the capital gains tax in Nepal following Axiata Group Bhd’s purchase of an 80% in Ncell Pvt Ltd, Ncell has stepped forward to deposit the advance tax on behalf of its former owners. - StarBiz
1MDB to engage with US dollar bondholders: 1Malaysia Development Bhd (1MDB) has hired Alvarez & Marsal Asia Ltd as it starts an engagement process with holders of its US dollar denominated bond following the default on the US$1.75bil 1MDB Energy (Langat) Ltd papers. - StarBiz
Chew Bros now controls Lysaght: Lysaght Galvanized Steel Bhd may be looking at a potential mandatory general offer now that Chew Bros (M) Sdn Bhd has acquired a 51.63% stake in Lysaght (Malaysia) Sdn Bhd, the immediate holding company of the former. - StarBiz
High Court rejects Best Oracle’s leave application: Special purpose acquisition company CLIQ Energy Bhd said Best Oracle Sdn Bhd has failed to obtain leave for judicial review in relation to the winding up of the company. - StarBiz
Bursa reprimands KAF over fourth quarterly report: Bursa Malaysia has publicly reprimanded stockbrocker and fund manager KAF-Seagroatt & Campbell Bhd for failing to ensure that its fourth quarterly report for the financial year ended May 31, 2015 is factual, clear and accurate. - StarBiz
Khazanah to seek bank pitches to pare stakes in three firms: Khazanah Nasional Bhd is considering paring its stakes in three listed companies, in deals that could raise as much as RM3.6 billion, sources said. Khazanah asked banks to pitch for a role arranging the sale of about 2% each in Tenaga Nasional Bhd, IHH Healthcare Bhd and Axiata Group Bhd, they said. Khazanah, which is the largest shareholder in the three Malaysian companies, may decide to sell stock in one or all of the firms, one of the sources said. - Bloomberg
Kerjaya Prospek to bag contract worth RM300m from BCB: Kerjaya Prospek Group Bhd (formerly Fututec Bhd) is set to win a contract worth RM300 million from property de- veloper BCB Bhd to build a major high-rise project in Iskandar Malaysia, Johor, according to sources. It is understood that the project is related to BCB’s Elysia Park Residence, which is located in Medini, Nusajaya. - Edge FD
Sunsuria in JV project with Taiwan’s Welcome Global: Property developer Sunsuria Bhd is partnering Taiwan-based Welcome Global Co Ltd for a mixed development project at Sunsuria City in Salak Tinggi, Selangor. The estimated total gross development value of the project is approximately RM694mil, Sunsuria said. - StarBiz
XL Axiata prices rights issue at 3,150 rupiah: PT XL Axiata Tbk, a 66.4%-owned subsidiary of Axiata Group Bhd, said it is pricing its 100-for-25 rights issue at 3,150 rupiah (RM0.95) per share, the proceeds from which will be used to fully repay the US$500 million (RM2.01 billion) loan from the parent company. - Edge FD
AGMs/EGMs
MSM Malaysia Holdings Bhd
Time: 11am
Venue: Banquet Hall, Menara Felda Platinum Park, No 11 Persiaran KLCC, Kuala Lumpur
Sedani Innovator Bhd
Time: 10am
Venue: Dewan Presiden, Kelab Golf Negara Subang, Jalan SS7/2, Kelana Jaya, Petaling Jaya, Selangor
Taliworks Corporation Bhd
Time: 10.30am (AGM)/11am (EGM)
Asiamet Education Group Bhd
Time: 10.30am
Venue: The Auditorium, Taman Kemacahaya, Cheras, Selangor
MMC Corporation Bhd
Time: 10am
Venue: Mahkota II, Hotel Istana, Jalan Raja Chulan, Kuala Lumpur
PPB Group Bhd
Time: 10am
Venue: Sabah Room, B2 Level, Shangri-La Hotel Kuala Lumpur, Jalan Sultan Ismail, Kuala Lumpur
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