theSundaily.my Business http://www.thesundaily.my/sites/default/files/images/thesundaily_logo_google.png theSundaily.my Business http://www.thesundaily.my/rss/business http://www.thesundaily.my/rss/business en P&G shares tumble after lackluster earnings http://www.thesundaily.my/news/2017/10/21/pg-shares-tumble-after-lackluster-earnings
The earnings, the first since the consumer products giant claimed a narrow win over activist Nelson Peltz in a shareholder vote earlier this month, are "unlikely to silence dissenters," said Morningstar analyst Erin Lash.

Net income for the fiscal first quarter of 2018 came in at US$2.9 billion (RM12.24 billion), up 5.1% from the year-ago period.

Sales edged up 0.8% to US$16.7 billion (RM70.51 billion).

Results were pressured by a string of hurricanes in the US and Puerto Rico and an earthquake in Mexico, which dented sales in those regions and lifted prices of some commodities used in P&G products.

Leading P&G brands include Crest toothpaste, Bounty paper towels and Oil of Olay soap.

Strong categories included beauty — which was boosted by strong growth in Chinese premium skin products and healthcare — where the sale of electric toothbrushes was again a bright spot.

But P&G saw no relief from the continued slump in shaving, where competition from newer US e-commerce brands has bruised the performance of Procter's Gillette brand. Sales in grooming sank five percent from the year-ago period.

P&G has slashed prices on Gillette products by an average of 12% in an effort to coax more sales. Chief financial officer Jon Moeller told analysts it was too soon to see results from the investment but that shaving in the US is "operating as we expected it would."

The weakness in Gillette was among the trouble spots highlighted in a campaign by activist shareholder Peltz of Trian Fund Management in which Procter has claimed a narrow victory after a hard-fought and costly campaign.

Peltz still considers the vote too close to call and said he will wait until final results are certified by an independent inspector.

Goldman Sachs characterized the results as disappointing overall, pointing to a weaker-than-expected gross profit margin and downcast commentary from chief executive David Taylor on "decelerating" market conditions.

"All-in, we expect results to be met with disappointment and would be surprised if the stock does not trade-off," Goldman said.

P&G shares tumbled 4.0% in afternoon trading to US$87.98 (RM371.45). — AFP]]>
Business Sat, 21 Oct 2017 07:15:25 +0000 theSundaily 495042 at http://www.thesundaily.my
2018 budget to fuel ringgit trading next week http://www.thesundaily.my/news/2017/10/21/2018-budget-fuel-ringgit-trading-next-week
They, however, said the newly-passed United States budget blueprint for the 2018 fiscal year would curb and limit the upside for the ringgit against the US dollar.

The Republican dominated US Senate passed the budget blueprint on Thursday, sending the greenback broadly higher against a basket of major currencies as the approval indirectly paved the way for tax cuts and legislation without the Democratic party's support.

"This raises hope of a fiscal boost to the US economy and positively affirming the safe-haven currency," a dealer told Bernama.

Back home, Prime Minister Datuk Seri Najib Razak is set to announce the 2018 Budget on Friday, which many economists and analysts expect would address the needs of targeted group of the Bottom 40% household income group (B40).

On a Friday-to-Friday basis, the ringgit was traded marginally lower at 4.2240/2260 against the greenback from 4.2200/2240.

Against other major currencies, the ringgit was traded firmer.

It appreciated against the Singapore dollar to 3.1057/1085 from 3.1146/1187 last Friday, strengthened versus the Japanese yen to 3.7252/7279 from 3.7638/7677 and improved against the British pound to 5.5512/5555 from 5.5995/5065.

The ringgit was firmer vis-a-vis the euro at 4.9885/9922 from 4.9918/9970 as demand for the currency weakened due to the Catalonia crisis in Spain.

The local market was closed on Wednesday for Deepavali. — Bernama]]>
Business Sat, 21 Oct 2017 02:37:24 +0000 theSundaily 494966 at http://www.thesundaily.my
Bursa M'sia expected to recover next week on bargain hunting http://www.thesundaily.my/news/2017/10/21/bursa-msia-expected-recover-next-week-bargain-hunting
Affin Hwang Investment Bank Vice-President and Head of Retail Research, Datuk Dr Nazri Khan Adam Khan said shares on Bursa Malaysia had been oversold and after testing its six-month low, the key index would likely fluctuate between 1,750 and 1,760.

"Bursa Malaysia, together with its regional peers would likely track the strong external factors, namely US President Donald Trump's decision to cut tax.

"Investors were expecting to see this move to give positive catalyst especially to the exporters. On top of this, we also hope that the outcome of the Chinese Communist Party's congress would provide some financial or economic clues," he told Bernama.

On the home front, Nazri Khan said although the September inflation rose 4.3 % from a year earlier, it had moderated.

The Sept inflation was driven by higher fuel costs, with the transport index rising 15.8 % from a year earlier, data from the Statistics Department showed.

Headline inflation reached an eight-year high of 5.1 % in March, but had since moderated, the department noted.

Nazri Khan also said higher commodity's prices including the Brent crude, which is trading at above US$55, (RM232) per barrel currently, would lift the market.

As for the 2018 Budget, he said it was going to be a consumer's budget with the government expected to give goodies for public servants as well as increasing the 1Malaysia People's Aid programme to support public spending and boost the economy.

On a weekly basis, the benchmark FTSE Bursa Malaysia KLCI slipped 14.67 points to 1,740.65 from 1,755.32 last Friday.
The FBM Emas Index declined 65.90 points to 12,513.79 and the FBMT 100 Index slid 69.44 points to 12,155.78.

The FBM Emas Shariah Index decreased 364.05 points to 12,513.79, the FBM 70 rose 35.34 points to 15,278.18 and the FBM Ace added 26.63 points to 6,949.37.

On a sectoral basis, the Finance Index dropped 224.52 points to 16,296.10, the Industrial Index fell 25.39 points to 3,190.23 and the Plantation Index declined 44.17 points to 7,922.59.

Total turnover shrank to 11.79 billion units valued at RM9.28 billion from 16.33 billion units valued at RM10.05 billion last week.

Main Market volume dwindled to 6.43 billion shares valued at RM8.35 billion from 9.80 billion shares valued at RM9.06 billion.

Warrants volume eased to 626.73 million units worth RM70.06 million versus 663.12 million units worth RM74.29 million.

The ACE Market decreased to 4.66 billion units valued at RM854.74 million compared with 5.83 billion units valued at RM912.72 million previously.

The gold futures contract on Bursa Malaysia Derivatives is likely to trade in a cautious mode next week, amid a stronger US dollar, said Phillip Futures Sdn Bhd Dealer, Leo Goh Boon Hao.

He said the supporting level for gold futures next week was expected at RM172.50/g.

Demand in the local market would be heavily dependent on the performance of the US Commodity Exchange's (COMEX) gold futures market and the US dollar, he added.

For the week just-ended, gold futures contracts on Bursa Malaysia fell one per cent on a weekly basis, tracking COMEX gold futures as possible US Federal Reserve Chair candidate would shore up the greenback and put pressure on the gold price.

On a Friday-to-Friday basis, spot month October 2017, December 2017 and January 2018 each fell 36 ticks to RM174.10, RM174.30 and RM174.80/g respectively, while November 2017 dropped 56 ticks to RM174.30/g.

Weekly turnover slipped to 23 lots worth RM309,152 from 25 lots worth RM438,106 in the previous week, while open interest widened to 101 contracts from 96 contracts.

The local market was closed on Wednesday for Deepavali. — Bernama]]>
Business Sat, 21 Oct 2017 02:19:00 +0000 theSundaily 494961 at http://www.thesundaily.my
Captain Izham Ismail named Malaysia Airlines new CEO http://www.thesundaily.my/news/2017/10/20/captain-izham-ismail-named-malaysia-airlines-new-ceo
Izham is presently the COO of MAB and he will assume the role of CEO on Dec 1 upon the departure of Bellew, who is currently on administrative leave. Bellew will return to Ryanair as COO on Dec 1.

MAB said in a statement that Izham's appointment is in line with the succession plan that MAB has put in place as part of the 12-point MAS Recovery Plan (MRP), which provides for the development and succession of Malaysian leadership talent.

"To ensure a smooth transition, a Board Executive Committee will be in place for up to six months. It will be led by chairman Tan Sri Md Nor Yusof and will include board members Tan Sri Krishnan Tan Boon Seng, Tan Sri Zamzamzairani Isa and Sheranjiv Sammanthan."

MAB said Izham has been integral to the airline's ongoing turnaround effort.

"As COO, he was responsible for the operations division, which includes flight and airport operations as well as engineering. He led the restructuring of the engineering division for more efficient and leaner operations, and was also responsible for the airline's fuel savings initiative."

Izham has 38 years of experience in the aviation industry, having started his career with MAB as a pilot in 1979. He broke world aviation records when he flew the first B777-200 eastward from Seattle to Kuala Lumpur and back.

"The flight set new world records for longest flight and fastest round-the-world flight by a commercial airliner, with a total flight time of 41 hours 59 minutes over a distance of 23,310 miles."

MAB noted that Izham has climbed through the ranks over the years, including as senior instructor pilot, fleet manager and director of operations. Prior to becoming COO in 2016, he served as CEO of MASwings, sister company of MAB in Sabah and Sarawak.

"On behalf of the Malaysia Airlines group, I am extremely pleased to welcome Captain Izham to this new role. Captain Izham is a key member of the MH family and brings with him 38 years of experience in the aviation industry. He has a valuable breadth of understanding that spans airline operations and business management. I am proud that he is our own internal home grown talent and I am confident that he will be able to take the airline further forward and ensure the turnaround plan is met," said Md Nor Yusof.

"The MRP launched by Khazanah Nasional Bhd on August 29, 2014 provides for plans for a local successor, and the succession plan has now been accelerated. We are now in the third year of the five year MRP and it is timely for us to appoint a Malaysian to see it through to the finish line," he added.

Meanwhile, Izham said he is extremely honoured to be entrusted with the new position.

"My entire career has been spent with MAB and it is very much my family. Helming the national airline is a big responsibility. I am humbled and at the same time, ready for the challenge. We are on track towards a full and complete transformation as outlined in the MRP, and I am looking forward to working with my MH colleagues to make this airline the pride of the nation again," he noted.]]>
Business Fri, 20 Oct 2017 13:33:06 +0000 sunbiz@thesundaily.com 494905 at http://www.thesundaily.my
Ringgit end marginally lower against US dollar http://www.thesundaily.my/news/2017/10/20/ringgit-end-marginally-lower-against-us-dollar
At 6pm, the local unit finished at 4.2240/2260 versus the US dollar from 4.2220/2250 on Thursday.

A dealer said the greenback rebounded against a basket of major currencies after the Republican-dominated United States Senate passed a budget blueprint, which paved the way for tax cuts without the Democratic party's support.

Speaking to Bernama, the dealer said this sparked positive sentiment towards the safe haven currency alongside hopes for a fiscal boost to the economy.

Another dealer said the upcoming 2018 Budget, which will likely target the need to assist the bottom 40% household income group (B40), helped lend support to the ringgit today.
"However, demand for the US dollar was stronger," he added.

Meanwhile, the ringgit ended mostly higher against other major currencies, except for the euro, against which it fell to 4.9885/9922 from 4.9870/9923 on Thursday.

The ringgit rose against the Singapore dollar to 3.1057/1085 from 3.1097/1123, strengthened versus the Japanese yen to 3.7252/7279 from 3.7466/7502, and appreciated against the British pound to 5.5512/5555 from 5.5536/5593. — Bernama]]>
Business Fri, 20 Oct 2017 12:24:08 +0000 theSundaily 494889 at http://www.thesundaily.my
Icon Offshore managing director to quit http://www.thesundaily.my/news/2017/10/20/icon-offshore-managing-director-quit
Amir's resignation is to pursue other opportunities, according to a filing with the stock exchange.

"The invaluable experience I gained at Icon will serve me well beyond the oil and gas sector, into my next role at Themed Attractions Resorts & Hotel Sdn Bhd," said Amir.

He was appointed on June 1, 2016 to replace Jamal Yusof, who was remanded in April 2015 to facilitate and assist investigations by the Malaysian Anti-Corruption Commission (MACC).

Icon said over the next few months, it will be conducting a search to find its new managing director. During this transition period, COO Captain Hassan Ali will lead the group as acting managing director.

Icon shares closed unchanged at 27.5 sen on Friday on some 1.73 million shares done.]]>
Business Fri, 20 Oct 2017 11:50:39 +0000 sunbiz@thesundaily.com 494888 at http://www.thesundaily.my
Nova MSC to raise RM7.99 million via private placement http://www.thesundaily.my/news/2017/10/20/nova-msc-raise-rm799-million-private-placement
In a filing with Bursa Malaysia, the group said it plans to issue up to 88.82 million new shares, representing 10% of the issued shares of the company to third party investors to be identified later.

The group said the issue price will be determined later, but the indicative price is 9 sen per placement share. The counter closed 5.88% higher at 9 sen on Friday with 12.4 million shares done.

Nova MSC said bulk of the proceeds will be used for the purchase of hardware and software, which mainly consist of system hardware equipment, control and instrumentation devices, application software and other computer related products.

Recently the group was awarded by Singapore's Urban Redevelopment Authority to upgrade and provide maintenance support of Development Application Exchange System with a contract sum of about RM14.8 million.

As at June 30, 2017, its order book stood at RM57.1 million.

The proposed private placement is expected to be completed by the fourth quarter of 2017.]]>
Business Fri, 20 Oct 2017 11:03:37 +0000 sunbiz@thesundaily.com 494867 at http://www.thesundaily.my
Ranhill secures RM19.33 million water treatment concession in Thailand http://www.thesundaily.my/news/2017/10/20/ranhill-secures-rm1933-million-water-treatment-concession-thailand
The concession period is 20 years, including the construction period of 10 months, which is expected to start in January 2018.

Ranhill told Bursa Malaysia that Amata Water Company Ltd had via its letter dated October 16 accepted the proposal by its indirect subsidiary AnuRAK Water Treatment Facilities Co Ltd for the water treatment deal.

The plant, which is located at Amata City Phase 4 Industrial Estate, has an output capacity of 7 million litres per day (MLD).

A formal concession agreement is required to be executed in due course.

Ranhill said the new concession will cover the construction of the reclamation water treatment plant to treat treated waste water to enable reuse for industrial purposes.

"The source of water will be from the treated effluent produced by AnuRAK's existing wastewater treatment plant of 10 MLD, a concession currently held by AnuRAK."

AnuRAK already has an existing 10 MLD water reclamation plant in Amata Nakorn Industrial Estate, Chonburi province, which has been in operations since year 2012 producing treated water for industrial reuse purposes. Hence, this new project will increase the Ranhill's reuse and recycle treatment capacity in Thailand to 17 MLD.

Ranhill said the Amata BOT project is expected to contribute positively to its revenue and earnings for the financial year ending December 31, 2018.

Its shares were unchanged at 80 sen on Friday on some 18,300 shares done.]]>
Business Fri, 20 Oct 2017 10:57:47 +0000 sunbiz@thesundaily.com 494866 at http://www.thesundaily.my
Bursa M'sia ends mixed in cautious trading http://www.thesundaily.my/news/2017/10/20/bursa-msia-ends-mixed-cautious-trading
At the close, the key FTSE Bursa Malaysia KLCI (FBM KLCI) fell 3.34 points to close at 1,740.65, after moving between 1,740.65 and 1,745.41 throughout the day.

It opened 1.04 points better at 1,745.03 from Thursday's close of 1,743.99.

On the broader market, gainers outpaced losers by 430 to 422 with 385 counters unchanged, 615 untraded and 19 others suspended.

Volume decreased to 2.58 billion units worth RM2.22 billion from 3.16 billion units worth RM2.51 billion.

A dealer said trading on Bursa Malaysia was mixed but the bourse was expected to stage a technical rebound soon, in line with other Asian markets, which were mostly higher today following the US Senate's decision to cut tax.

It was reported that the US Senate had adopted a fiscal 2018 budget resolution, a step forward towards overhauling the tax code.

"Generally, gains were somewhat muted as investors are awaiting the outcome of the Japanese election, as China's central bank governor, Zhou Xiaochuan, warned of an excessive optimism," the dealer said.

Of the heavyweights, Maybank fell six sen to RM9.29, Public Bank was down two sen to RM20.46, Tenaga was flat at RM14.32 but Sime Darby rose two sen to RM9.06.

Among active counters, Hubline added 2.5 sen to 19 sen, Trive Property gained 4.5 sen to 24.5 sen, Key Alliance edged up half-a-sen to 16.5 sen while Hibiscus Petroleum was one sen lower at 70 sen.

The FBM Emas Index lost 13.37 points to 12,513.79 but the FBM Emas Shariah Index added 7.07 points to 12,855.23, and the FBM 70 gained 3.71 points to 15,278.18.

The FBMT 100 Index was down by 16.69 points to 12,155.78 and the FBM Ace slipped 6.99 points to 6,949.37.

Sector-wise, the Plantation Index improved 11.42 points to 7,922.59, while Industrial Index fell 0.65 of-a-point to 3,190.23 and the Finance Index gave up 50.63 points to 16,296.10.

The Main Market volume increased to 1.73 billion units worth RM2.06 billion from 1.69 billion units worth RM2.54 billion.

Volume on the ACE Market shrank to 681.11 million shares valued at RM133.48 million from 1.27 billion shares valued at RM234.41 million.

Warrants volume declined to 153.77 million units worth RM19.53 million versus 191.32 million units worth RM19.66 million.

Consumer products accounted for 171.74 million shares traded on the Main Market, industrial products (330.39 million), construction (75.82 million), trade and services (569.18 million), technology (388.09 million), infrastructure (11.57 million), SPAC (565,600), finance (48.93 million), hotels (391,200), properties (95.87 million), plantations (22.68 million), mining (12,000), REITs (10.57 million), and closed/fund (9,800).

The physical price of gold as at 5pm stood at RM168.30/g, down 32 sen from RM168.62 at 5pm yesterday. — Bernama]]>
Business Fri, 20 Oct 2017 10:17:17 +0000 theSundaily 494836 at http://www.thesundaily.my
ABM: Car loan approval rate remains steady at 68% http://www.thesundaily.my/news/2017/10/20/abm-car-loan-approval-rate-remains-steady-68
It was responding to an article in a local publication titled "High car bookings, but 60% loan rejection rate".

ABM said based on feedback from eight commercial banks that offer hire purchase financing, the approval rate for loans to purchase cars in 2016 stood at the same percentage of 68% of the total number of applications received.

"We would also like to state that, as with all loans, banks would in their credit evaluation process consider all aspects to determine an applicant's ability to service the loan. "

ABM said among the factors that banks take into consideration in assessing a car loan application include the applicant's ability to service the loan, repayment track record, amount of applied loan and length or term of the loan.

Among the main reasons for the loans rejection include history of credit default/unfavourable track record, insufficient income evidence, uncertain payment ability as well as low net disposable income.

ABM further noted that commercial banks in Malaysia have remained supportive of the automotive sector as evidenced by the high approval rate, and car loans will continue to be extended to eligible borrowers.]]>
Business Fri, 20 Oct 2017 10:09:25 +0000 sunbiz@thesundaily.com 494835 at http://www.thesundaily.my