The KBW regional banking index fell 5.5% in its biggest daily percentage drop since March 13. Energy shares dropped along with oil prices as investors worried about a potential US debt default. The S&P 500 energy sector dropped 4.3%, the most of any major sector, followed by S&P financials, which fell 2.3%. With first-quarter reports over halfway through, analysts see aggregate earnings for S&P 500 companies declining 1.4% year-on-year, according to IBES data from Refinitiv Tuesday. The S&P 500 posted 17 new 52-week highs and 13 new lows; the Nasdaq Composite recorded 46 new highs and 407 new lows.
Source:The Edge Markets
May 03, 2023 10:34 UTC
Pre-tax profit tripled to US$12.89 billion, beating an estimate of US$8.64 billion. The jump was partially driven by a reversal of an impairment linked to the delayed sale of its French retail arm and the booking of a gain from its purchase of Silicon Valley Bank’s (SVB) UK business. HSBC is in the midst of a pivot to Asia while shedding unprofitable businesses in North America and Europe. It took over the UK operations of SVB for £1 (US$1.20 or RM5.57) this year, shortly after the failure of the California-based bank. Read also:HSBC CEO says SVB UK will form core of new global tech unit
Source:The Edge Markets
May 02, 2023 18:07 UTC
This was despite a moderation in loan growth and current accounts and savings accounts (Casa). Maybank Investment Bank (Maybank IB) said that loan applications increased month-on-month (m-o-m) by 29% in February and 23% in March after contracting from August 2022 to January 2023. “Including bank loans, total industry credit growth was 4.9% y-o-y, versus 5.3% y-o-y in February 2023,” he said. MIDF's top picks for the sector include Public Bank Bhd, with a "buy" call and a target price (TP) of RM5.08, and RHB Bank Bhd (buy; TP: RM6.74). Meanwhile, Maybank IB has made several "buy" calls for the sector, including CIMB Group Holdings Bhd (TP: RM6.60), Hong Leong Bank Bhd (TP: RM24.10), RHB Bank (TP: RM7.10), Hong Leong Financial Group Bhd (TP: RM22.20), AMMB Holdings Bhd (TP: RM5.15), and Alliance Bank Malaysia Bhd (TP: RM4.00).
Source:The Edge Markets
May 02, 2023 16:30 UTC
(May 1): JPMorgan Chase & Co won the bidding to acquire First Republic Bank in an emergency government-led intervention, after private rescue efforts failed to fill a hole on the troubled lender’s balance sheet and customers yanked their deposits. JPMorgan will take over First Republic’s assets, including about US$173 billion (RM771.67 billion) of loans and US$30 billion of securities, as well as US$92 billion in deposits. The transaction makes JPMorgan, the nation’s largest bank, even more massive — an outcome government officials have taken pains to avoid in the past. The bank advised its smaller rival in its attempt to find strategic alternatives, and Dimon was key in marshalling bank executives to inject the US$30 billion in deposits. The bank has been bought and sold several times over the years, with Merrill Lynch & Co paying US$1.8 billion to acquire First Republic in 2007.
Source:The Edge Markets
May 02, 2023 03:32 UTC
And the selloff is spreading to nations with the closest trade ties to China, such as South Korea and South Africa. Investors remain underexposed to China as they seek more consistent policy signals that can sustain the economic recovery. That has sent the ratio between emerging markets and rich nations down 5.6% this year, the biggest retreat since at least 2020. Since then, China’s economic data have indeed shown improvement. The MSCI China Index has tumbled 5.3% in April, erasing this year’s advance.
Source:The Edge Markets
May 01, 2023 06:26 UTC
But Ola Kaellenius said decoupling from China, the world's second largest economy, was "unthinkable for almost all of German industry". "The major players in the global economy, Europe, the US and China, are so closely intertwined that decoupling from China makes no sense," he was quoted as saying. German carmakers depend on the Chinese car market, the world's largest, and Mercedes-Benz counts China's Beijing Automotive Group Co Ltd and Geely chairman Li Shufu as its two top shareholders. China accounted for 18% of revenues and 37% of car sales at Mercedes-Benz in 2022 and Kaellenius predicted more to come. "Our sales figures in China are increasing and I am quite optimistic that we will also grow this year.
Source:The Edge Markets
April 30, 2023 19:36 UTC
KUALA LUMPUR (April 30): Perusahaan Otomobil Kedua Sdn Bhd (Perodua) has come out to say that there will be no recall of its Perodua Axia model, as it is deemed safe for driving. “We wish to offer some background, insight and perspective on the nature of this announcement, especially in reference to the new Perodua Axia,” Perodua president and chief executive officer Datuk Seri Zainal Abidin Ahmad said in a statement on Sunday (April 30) evening. He explained: “Perodua engaged Daihatsu to carry out safety testing for the new Perodua Axia in Japan, which was witnessed by relevant authorities and agencies for their respective assessment. “We were assured that despite the revelation by Daihatsu, the UN-R95 certification given to the Perodua Axia is intact. This means that the Perodua Axia is safe for driving and no recall will be issued, nor will Perodua stop delivery of this new model to our valued customers.”Zainal Abidin apologised for the distress the matter had caused its customers.
Source:The Edge Markets
April 30, 2023 19:30 UTC
Asked if Musk had proven himself to be the best possible steward for the platform, Dorsey said, “No. “It all went south,” Dorsey wrote on Bluesky, the invite-only Twitter alternative that he’s backing. Dorsey, who was friendly with Musk for years and suggested he get involved with Twitter, was previously publicly in favor of the deal. Last year, he called Musk as the owner of Twitter “the singular solution I trust”. “Payment as proof of human is a trap, and I’m not aligned with that at all,” Dorsey said on Bluesky.
Source:The Edge Markets
April 29, 2023 18:49 UTC
Choo Meng’s sister, Michelle Ong Tzu Chuen, also owned 2.69 million shares or a 1.33% stake in Apex Equity. Jacky Pang and associatesInterestingly, Sanichi’s Pang owned 1.63 million shares or a 0.81% stake in Apex Equity. The regulator claimed Apex Securities contravened the securities laws “as ACE has become a controller of Apex Securities, when ACE is not a fit and proper person” to do so. Following ACE's divestment of shares, a big block of Apex Equity shares was made available in the market. The new and notable Apex Equity shareholders, namely the Hextar family members and their business associates, Pang and his associates, as well as Proven Venture Capital, controlled a total of 18.58% of Apex Equity as at end March.
Source:The Edge Markets
April 29, 2023 09:59 UTC
NEW YORK (April 29): Economically sensitive areas of the US stock market are flashing warnings over growth, even as major equity indices edge higher. Beneath the surface, however, areas of the market tied to economic sentiment such as transports, semiconductors and small-cap stocks dropped in April, while so-called defensive sectors are outperforming. “People are starting to more defensively position themselves,” said Aaron Dunn, a co-head of the value equity team at Eaton Vance. At the same time, consumer staples and healthcare sectors favoured by investors during uncertain times have rallied in the past month. "They are talking about demand being down, and they are ridiculously important shipping companies,” said Matt Maley, the chief market strategist of Miller Tabak.
Source:The Edge Markets
April 29, 2023 08:04 UTC
KUALA LUMPUR: Main Market-bound DXN Holdings Bhd aims to raise about RM121.6mil from the public issue portion of its initial public offering (IPO), which will go towards the repayment of bank borrowings and working capital requirements. The maximum IPO price is set at 76 sen per share with the final price to be determined via a bookbuilding exercise. Maybank Investment Bank Bhd is the principal adviser of the IPO, as well as joint global coordinator, joint bookrunner, joint managing underwriter and joint underwriter. CIMB Investment Bank Bhd is joint global coordinator, joint bookrunner, joint managing underwriter and joint underwriter. CLSA Limited and CLSA Securities Malaysia Sdn Bhd are joint global coordinators and joint bookrunners for the IPO whereas RHB Investment Bank Bhd is a joint bookrunner and joint underwriter.
Source:The Star
April 28, 2023 16:45 UTC
KUALA LUMPUR (April 27): Genting Malaysia Bhd’s proposed US$1.225 billion (RM5.433 billion) land divestment in Miami is set to reinforce the group’s financial strength in its bid for a downstate New York gaming licence. Genting Malaysia originally bought the Miami Herald land for US$246 million in 2011. Genting Malaysia is bidding for a New York table gaming licence, and the projected capital expenditure is US$1 billion,” they added. The disposals, which require shareholders’ approval, would enable Genting Malaysia to recognise an estimated gain of US$967 million. “Thus, the sale of the aforesaid property will not negatively impact our Genting Malaysia earnings estimates materially,” he said.
Source:The Edge Markets
April 28, 2023 15:16 UTC
KUALA LUMPUR (April 27): Property developer Radium Development Bhd, en route to a Main Market listing on May 31, has set a price of 50 sen per share for its initial public offering (IPO) exercise that will raise RM434 million. The exercise comprises a public issuance of 868 million new shares, or 25% of its enlarged share capital of 3.47 billion shares. A further 435 million shares will be offered by way of private placement to selected Bumiputera investors approved by the Ministry of Investment, Trade and Industry, followed by the remaining 100 million shares for selected investors by way of private placement. In terms of financial results, Radium posted a PAT of RM128 million on the back of a revenue of RM472.81 million for FY2019. Read also:Radium Development inks underwriting agreement with Malacca Securities and CIMB Investment BankRadium Development gets SC's nod to list on Main MarketProperty developer Radium Development seeks Main Market listing
Source:The Edge Markets
April 28, 2023 02:34 UTC
KUALA LUMPUR: CIMB Group Holdings Bhd 's 92.5% indirectly held Indonesian subsidiary PT Bank CIMB Niaga Tbk (CIMB Niaga) reported a 29.5% year-on-year (YoY) jump in pre-tax profit to 2.0 trillion rupiah (about RM607mil) in the first quarter, translating to earnings per share of 63.42 rupiah. Total loans/financing grew 10.1% YoY to 201.1 trillion rupiah (or 199.6 trillion rupiah excluding Salam financing) contributed mainly by growth in corporate banking and consumer banking. Mortgages grew by 5.5% YoY, while auto loans rose 20.6% Y-o-Y, including contributions from the bank’s subsidiary, PT CIMB Niaga Auto Finance (CNAF). “In CIMB Niaga, we also focus on customer centricity, which we do by continuing to provide unique and different values as well as a positive experience to customers when performing banking transactions with CIMB Niaga," Lani said. To support its business growth, CIMB Niaga continues to improve customer experience by offering a comprehensive suite of products and services through its 414 branches and networks (including 37 digital lounges).
Source:The Star
April 27, 2023 22:29 UTC
TAIPEI (April 27): The billionaire founder of Taiwan's Foxconn and presidential hopeful Terry Gou said on Thursday (April 26) China does not want war with the island and would not attack if he become president as he would not declare independence. Gou, one of Taiwan's most recognisable faces, stepped down as chief of major Apple Inc supplier Foxconn, which has extensive manufacturing facilities in China, in 2019. China wanted to develop its economy and focus on things like finding jobs for college graduates and feeding its people, Gou said. "I won't (declare) independence, you won't attack me or fly around Taiwan," he added, referring to the almost daily missions by China's air force in the vicinity of the island. Tsai has repeatedly offered talks with China but she has been rebuffed as Beijing believes she is a separatist.
Source:The Edge Markets
April 27, 2023 18:04 UTC