The Malaysian Insider :: Business

Need for faster financial instruments launch, says China’s central bank

Wed, 16 May 2012 14:44:29 GMT

BEIJING, May 16 – China should quicken the pace of launching new financial instruments and capital markets must to be strengthened to improve their contribution to supporting economic activity, central bank governor Zhou Xiaochuan said today. Zhou made his comments in a speech to an audience of financial regulators and industry ...

Media Prima Q1 profit down to RM28.9m

Wed, 16 May 2012 12:34:32 GMT

KUALA LUMPUR, May 16 – Media Prima Bhd’s pre-tax profit for its first fiscal quarter ended March 31, 2012, dropped to RM28.922 million from RM47.561 million recorded in the corresponding quarter last year. Revenue for the three-month period was also down to RM335.284 million from RM354.189 million previously. In a filing to Bursa Malaysia today, ...

WCT hopeful of clinching RM1b contracts

Wed, 16 May 2012 12:29:34 GMT

KLANG, May 16 – WCT Bhd, a civil engineering and construction company, hopes to secure contracts worth RM1 billion, out of RM5 billion worth of contracts the group is bidding for internationally and locally, says independent non-executive chairman Datuk Ahmad Sufian. The company is mostly bidding for infrastructure projects and 40 per cent of the ...

GM to drop Facebook ads due to low consumer impact

Wed, 16 May 2012 12:02:37 GMT

DETROIT, May 16 – General Motors Co said yesterday it will stop advertising on Facebook, even as the social networking website prepares to go public, with a source familiar with the matter saying the carmaker had decided Facebook’s ads had little impact on consumers. The decision by GM, the third-largest advertiser in the United States, marks the ...

Fear factor sends UK’s FTSE down through 5,400 mark

Wed, 16 May 2012 11:38:55 GMT

LONDON, May 16 – Britain’s top share index fell through the 5,400 point level for the first time since mid-December, driven lower by a slump in heavyweight mining stocks and fears over Greece, which have pushed investors out of equities and into cash or gilts. The FTSE 100 index was down 0.9 per cent, or 51.12 points, to 5,386.50 points – its ...

SE Asia Stocks: Shares fall amid Greek political turmoil

Wed, 16 May 2012 11:05:39 GMT

BANGKOK, May 16 – Shares in Philippines and Malaysia suffered their biggest daily loss in seven months today as equity markets in southeast Asia followed a broad global selloff, touched off by worries that the euro zone’s debt crisis would worsen. The Philippine index finished down 2.3 per cent at 4,864.23 while Malaysia’s main share index ended ...

Singapore Airlines to suspend services to Abu Dhabi, Athens

Wed, 16 May 2012 10:14:05 GMT

SINGAPORE, May 16 – Singapore Airlines Ltd (SIA) , which is struggling with weak load factors, said today it will suspend services to Abu Dhabi and Athens from Oct 26 due to weak demand. SIA, the world’s second-largest carrier by market value, currently flies to and from Abu Dhabi three times a week. The Singapore flag carrier flies to the Greek ...

Hong Kong shares post biggest loss in six months, China slides

Wed, 16 May 2012 09:56:20 GMT

HONG KONG, May 16 – The Hang Seng index posted its biggest loss in six months today after mainland media reported flat loan growth for the country’s “Big Four” state-owned banks in the first two weeks of May, fanning fears about the slowing Chinese economy. Those concerns combined with Greece’s failure to form a government and a three-day losing ...

Samsung loses US$10b market value on Apple order report

Wed, 16 May 2012 09:12:37 GMT

SEOUL, May 16 – Shares in Samsung Electronics Co slumped more than 6 per cent today, wiping US$10 billion (RM31.18 billion) off the electronics giant’s market value, on a report that Apple placed huge chip orders with troubled Japanese chip rival Elpida. Taiwan’s DigiTimes, an online trade news site, reported that Apple recently placed large ...

Greeks pull funds from banks; emergency cabinet to be named

Wed, 16 May 2012 07:33:39 GMT

ATHENS, May 16 — Greece’s political leaders meet today to form a caretaker government to take it to a second election in just over a month, with its euro membership at stake and its president speaking of “fear that could develop into panic” at its banks. President Karolos Papoulias was forced to call a new vote after failing to cobble together a ...

MISC Q1 losses up 51pc, outlook gloomy

Wed, 16 May 2012 06:28:37 GMT

KUALA LUMPUR, May 16 — Shipping liner MISC Bhd said in a filing to Bursa Malaysia today that its first quarter losses rose 51 per cent, to RM465.08 million from RM307.88 in the same period last year. According to the filing, the higher losses were due to lower operating profit, recognition of impairment provisions and additional liner exit ...

Ringgit set for worst day in 6 months, Greek woes hit Asia FX

Wed, 16 May 2012 06:12:38 GMT

SINGAPORE, May 16 — The Malaysian ringgit is set to suffer its biggest daily loss in nearly six months on Wednesday, while its Asian peers also shed on expectation of further slides amid growing worries about Greece's exit from the euro zone. The ringgit hit a four-month low on dollar-short covering, leading losses in emerging Asian currencies, ...

GM to drop Facebook ads due to low consumer impact

Wed, 16 May 2012 05:58:34 GMT

DETROIT, May 16 — General Motors Co said on Tuesday it will stop advertising on Facebook, even as the social networking website prepares to go public, with a source familiar with the matter saying the automaker had decided Facebook's ads had little impact on consumers. The decision by GM, the third-largest advertiser in the United States, marks ...

Shares fall as Greek turmoil saps risk appetite

Wed, 16 May 2012 04:59:46 GMT

TOKYO, May 16 — Asian shares fell and the dollar rose broadly on Wednesday after efforts to form a new government in Greece collapsed, fuelling fears that a second election in June could precipitate Athens' exit from the euro zone and deepen the bloc's debt crisis.Investors continued to reduce positions in riskier assets, leading to a fall of more ...

SapuraKencana to bid for RM12b jobs by year-end

Wed, 16 May 2012 04:58:57 GMT

KUALA LUMPUR, May 16 — SapuraKencana Petroleum Bhd expects to grow its bidding order to RM12 billion by year-end from the current RM7 billion. President and Group Chief Executive Officer Datuk Seri Shahril Shamsuddin said the RM7 billion worth of bids made currently are 50 per cent for local projects and the remaining for projects in Australia and ...

MIDF raises SP Setia to buy

Wed, 16 May 2012 04:57:02 GMT

KUALA LUMPUR, May 16 — MIDF Amanah Investment Research upgraded property stock SP Setia to buy from neutral as the company's property sales are expected to hit a record high in 2012. The broker said in a research note on Wednesday that SP Setia may be awarded more public sector related property contracts as Malaysian government investment arm, ...

Felda gets major investors for FGVH listing

Wed, 16 May 2012 04:09:57 GMT

KUALA LUMPUR, May 16 — Felda hopes that having top industry players as anchor investors for the upcoming US$3.3 billion (RM10.2 billion) listing of Felda Global Ventures Holdings Bhd (FGVH) will boost market confidence. The key investors include French commodities group Louis Dreyfus, banking tycoon Tan Sri Quek Leng Chan and Tan Sri Chua Ma Yu, ...

Analyst calls for May 16

Wed, 16 May 2012 03:41:14 GMT

KUALA LUMPUR, May 16 — This is a selection of morning calls by local research houses for the day. From HWANGDBS-Vickers: Southern Steel 3QFY12/9MFY12 losses were below our and consensus’ expectations. Cut FY12/13F earnings after imputing higher raw material prices. Downgrade to Hold; cut TP to RM1.95. Boustead Heavy Industries Corp 1Q12 result ...

Sina Corp could see further losses due to Weibo, says CEO

Wed, 16 May 2012 01:47:43 GMT

SHANGHAI, May 16 — Sina Corp could post further losses due to its investment in microblogging platform, Weibo, its Chief Executive Officer Charles Chao said today. Sina Corp reported quarterly results that beat Wall Street's targets after advertising revenue shot up 9 per cent despite a weak Chinese market, propelling its shares up 7 per cent in ...

Bankers call Moody’s mass downgrade attack on Italy

Tue, 15 May 2012 23:41:16 GMT

ROME, May 16 — Italy's banking and business leaders attacked Moody's mass downgrade of Italian banks on Tuesday, branding the move as an irresponsible blow to the economically-strapped country while it battles euro zone debt woes and economic recession. Moody's downgrade of 26 Italian banks is the first round of a wave of credit rating cuts that ...

Facebook increases IPO range to raise US$12.1 billion

Tue, 15 May 2012 15:08:44 GMT

NEW YORK, May 15 – Facebook Inc increased the price range on its initial public offering an average of 14 per cent to raise more than US$12 billion (RM36.99 billion), giving the world’s No. 1 social network a valuation potentially exceeding US$100 billion. The company, which began in a Harvard dorm room by Mark Zuckerberg, raised the target range ...

Facebook increases IPO range to raise US$12.1 billion

Tue, 15 May 2012 15:08:41 GMT

JPMorgan loss shows risks in safe-haven banks

Tue, 15 May 2012 14:24:47 GMT

LONDON, May 15 – JPMorgan Chase & Co’s US$2 billion (RM6.16 billion) trading loss stems from an embarrassment of riches, as like other banks that came out well from the financial crisis it has surplus money burning a hole in its pocket. Safe-haven banks – a category which also includes Britain’s HSBC Holdings Plc – are few and far between and have ...

Over 55 and jobless, Americans face tough hunt

Tue, 15 May 2012 14:11:35 GMT

WASHINGTON, May 15 – Jean Coyle, 67, has a new kind of ministry. The former professor had just begun a career as a Presbyterian minister in Virginia when the economic downturn forced her church to let her go in 2007. After that, she found only temporary work. She relied on savings while job hunting, but at 64, had to dip into her Social Security ...

RBS going back to ‘basics’ after CIMB deal

Tue, 15 May 2012 11:03:22 GMT

KUALA LUMPUR, May 14 – The Royal Bank of Scotland (RBS) is looking at consolidating its corporate banking business in Malaysia following the sale of its regional investment banking unit to CIMB and said it has a strong pipeline of European companies looking to tap the large pool of liquidity in the country’s bond market. RBS Malaysia country ...

SE Asia Stocks: Late buying lifts Singapore, Thailand

Tue, 15 May 2012 10:46:36 GMT

BANGKOK, May 15 – Stocks in Singapore and Thailand pushed higher today, with beaten down commmodities-related shares rebounding, as strong growth in Germany spurred late buying and eased worries over the political turmoil in Greece and the euro debt problems. Singapore’s main index edged up 0.44 per cent at 2,876.70, bouncing back from an intraday ...

Australia’s ANZ to invest US$300m in China expansion

Tue, 15 May 2012 10:00:33 GMT

SYDNEY, May 15 – Australia and New Zealand Banking Group said on Tuesday it would invest US$300 million (RM925.05 million) more to support growth in its China subsidiary as it seeks to boost its presence in Asia. The additional investment is the first since an initial investment of A$395 million (RM1.22 billion) in 2010, the bank said in a ...

News Corp to acquire 20pc of Chinese film distributor

Tue, 15 May 2012 08:52:20 GMT

BEIJING, May 15 – News Corp has agreed to buy a stake in Chinese movie distributor Bona Film Group Ltd , becoming the latest US media company to expand into China’s booming movie market. News Corp will take a 19.9 per cent stake in Bona Film from founder and chief executive Yu Dong, Bona said in a statement. It gave no financial details. The ...

As funds flee, India’s pain is Southeast Asia’s gain

Tue, 15 May 2012 07:46:07 GMT

HONG KONG, May 15 — Southeast Asian nations are swallowing an outflow of money from India, as foreign investors lose patience with its policy paralysis and slowing growth and aim instead for more promising emerging markets such as Indonesia. Corruption scandals and high inflation have added to India's woes, which have seen growth slow to a ...

Singapore shares reverse earlier losses

Tue, 15 May 2012 05:55:38 GMT

SINGAPORE, May 15 — Singapore shares inched higher by midday, reversing earlier losses on bargain hunting in oversold stocks such as Neptune Orient Lines , but gains were capped by worries over the political turmoil in Greece. The benchmark Straits Times Index (STI) rose 0.2 per cent to 2870.58, rebounding from an intraday low of 2,850.61. "The ...

Felda faces dip in profits due to old palm trees

Tue, 15 May 2012 04:11:10 GMT

KUALA LUMPUR, May 15 - Aging palm oil plantations will affect Felda's future profitability as it will lead to a lower yield, the Wall Street Journal reported today. Putrajaya is currently forging ahead with Felda's controversial planned public listing despite criticism from some settlers and the opposition who claim that it will shortchange some ...

Analyst calls for May 15

Tue, 15 May 2012 03:33:35 GMT

KUALA LUMPUR, May 15 — This is a selection of morning calls by local research houses for the day. From Ambank Research: We maintain BUY on Bumi Armada, with an unchanged sum-of-parts-based fair value of RM5.05/share, which implies an FY12F PE of 26x. We continue to like the stock due to the following re-rating catalysts:- (1) Likelihood of new ...

Shares slide as Greece risks dominate

Tue, 15 May 2012 01:39:38 GMT

TOKYO, May 15 — Shares fell on Tuesday as investors liquidated riskier assets and sought refuge from the political turmoil fuelling fears of Greece's exit from the euro and threatening to ruin any progress made so far to solve the euro zone debt crisis. The euro slipped to a four-month low of US$1.2815 (RM3.9428) early on Tuesday and the ...

Yields fall as Europe, China worries fuel safety bid

Mon, 14 May 2012 23:23:39 GMT

NEW YORK, May 15 — US Treasury prices rose on Monday, pushing yields down to their lowest levels since early October, as political turmoil in Greece, an anti-austerity vote in Germany and concern of slower growth in China drove a bid for safety. Uncertainty over the impact of a potential Greek exit from the euro spurred the rush to safety, ...

Greek impasse prompts euro exit warnings, rattles markets

Mon, 14 May 2012 13:49:49 GMT

ATHENS, May 14 — With efforts to patch together a Greek government looking doomed, EU policymakers warned the country it could not remain in the euro zone if it ripped up its bailout programme, and financial markets ratcheted up the pressure on the bloc. Eight days after inconclusive elections, Greece’s political parties have failed to form a ...

Yahoo investors applaud change, fear limbo

Mon, 14 May 2012 13:17:29 GMT

NEW YORK, May 14 — Yahoo Inc investors welcomed the appointment of a media veteran as interim chief executive of the Internet company even as analysts worried that the company’s strategy would face months of uncertainty. Yahoo’s shares rose 2.5 per cent today after Chief Executive Scott Thompson stepped down — after just four months on the job — ...

Kwok graft case back in spotlight in Hong Kong

Mon, 14 May 2012 12:33:21 GMT

HONG KONG, May 14 — Sun Hung Kai Properties board member Thomas Chan had his bail extended today, according to a source familiar with the matter, in a widening graft scandal involving one of Asia’s richest families. Chan, the first person to be named in the probe that has shocked shareholders and threatened to cut into the knot binding its clubby ...

Palm oil plunges to 3-month low, Greek turmoil weighs

Mon, 14 May 2012 10:43:18 GMT

SINGAPORE, May 14 — Malaysian palm oil futures suffered their sharpest fall in more than a year today, closing at a three-month low as failed talks to form a new Greek government heightened fears about the euro zone’s debt crisis. Market sentiment was bearish as talks to form a coalition government in Greece stalled, pushing the debt-laden country ...

Despite Germany, euro zone sinks towards recession

Mon, 14 May 2012 10:13:13 GMT

BRUSSELS, May 14 — Strong production in Germany could not make up for a slump across the rest of the euro zone in March with declining output at factories falling and signalling an oncoming recession may not be as mild as policymakers hope. Industrial production in the 17 countries sharing the euro fell 0.3 per cent in March from February, the ...

Gas Malaysia to list on June 11, says source

Mon, 14 May 2012 09:38:03 GMT

KUALA LUMPUR, May 14 — Gas Malaysia Bhd is expected to debut on the Malaysian bourse on June 11, a source with direct knowledge of the listing told Reuters, after it obtained approval today from Malaysia’s Securities Commission to register its listing prospectus. The planned listing of the country’s sole supplier of natural gas to the non-power ...

JPMorgan CIO chief Drew quits after trading loss

Mon, 14 May 2012 08:14:28 GMT

NEW YORK, May 14 — JPMorgan Chase & Co Chief Investment Officer Ina Drew retired today, the first casualty after the bank suffered trading losses that could reach US$3 billion (RM9 billion) or more and that have tarnished the reputation of high-profile Chief Executive Jamie Dimon. In Drew’s place, the bank named Matt Zames, a trader by background ...

Hong Kong, China shares up but conviction lacking

Mon, 14 May 2012 06:06:53 GMT

HONG KONG, May 14 — Hong Kong and China shares edged higher today, led by mainland developers, while the banking sector was mixed after the Chinese central bank moved on Saturday to bolster lending to counter signs of an economic slowdown. The gains came in choppy trade, due partly to low turnover, as investors eyed the possibility of further ...

Far behind rivals, Ford tries to play catch-up in China

Mon, 14 May 2012 05:02:50 GMT

CHONGQING, China, May 14 — Frank Chuang proudly surveys his immaculate new car plant as partly assembled versions of the Ford Focus travel down the production line. Glancing at the small cars in the massive manufacturing complex in the city of Chongqing in southwestern China, the 32-year Ford veteran is satisfied with the way production has ramped ...

Maybank IB upgrades Kinsteel to buy

Mon, 14 May 2012 04:43:59 GMT

KUALA LUMPUR, May 14 — Maybank IB Research upgraded Kinsteel Bhd to buy as it expected the steel manufacturer to turn around in its upcoming earnings result on lower iron ore cost and better local sales. “After posting losses in the past six quarters and the inventory write-down of RM94 million in the fourth quarter of last year, we expect the ...

Shares fall as deepening Greek turmoil weighs

Mon, 14 May 2012 04:35:42 GMT

TOKYO, May 14 — Asian shares fell today after weekend talks to form a new Greek government failed, and China’s latest move to loosen monetary policy highlighted concerns its economy is faltering, prompting investors to further trim their exposure to risk. MSCI’s broadest index of Asia-Pacific shares outside Japan fell as much as 0.6 per cent to ...

Kenanga ups Malaysia Building’s target price

Mon, 14 May 2012 03:09:20 GMT

KUALA LUMPUR, May 14 — Kenanga Research lifted the target price of Malaysia Building Society Bhd (MBSB) to RM2.70 a share despite the lender’s first-quarter earnings result coming in marginally below expectations. “The stock’s valuation still looks undemanding at 5.9 times price-to-earnings ratio post adjustment, against its banking peers of 13.0 ...

Analyst call May 14

Mon, 14 May 2012 02:42:30 GMT

KUALA LUMPUR, May 14 — This is a selection of morning calls by local research houses for the day. HwangDBS Vickers Market Preview Although Wall Street finished between flat and just marginally lower last Friday, we could see renewed selling pressures on Malaysian equities when trading resumes this week. Essentially, unresolved political stalemate ...

Europe, US key to next stage of HSBC turnaround

Mon, 14 May 2012 00:36:18 GMT

LONDON, May 14 — HSBC boss Stuart Gulliver needs to map out his route to recovery for the bank’s European and US businesses at a strategy update this week to bolster confidence in a turnaround plan that has shown progress on cost cutting and asset sales. First-quarter results from Europe’s biggest bank last week showed Gulliver, a 32-year HSBC ...

Yahoo CEO out, board settles with investor Loeb

Mon, 14 May 2012 00:22:35 GMT

SAN FRANCISCO, May 14 — Yahoo Inc chief executive Scott Thompson has stepped down after a controversy over a fake computer science college degree on his biography, t he third CEO in three years to leave the Internet company struggling to define its future. The departure is a victory for hedge fund manager Daniel Loeb of Third Point LLC, which is ...

Fears over Spain linger despite banking plan

Sun, 13 May 2012 12:50:41 GMT

LONDON, May 13 — Spain’s clean-up plan for its troubled banks lacks some of the key ingredients that helped other governments restore faith in their financial sectors, restructuring experts say, pointing to a potential need for heavier state intervention. Madrid told lenders on Friday to put aside even more funds against potential losses from ...