The week at a glance 16 July 2017

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Sabah & Sarawak

Malaysia May reevaluate trade with France over palm biofuels stand

Malaysia will be compelled to reevaluate options on trade with France if the country keeps its stand on palm biofuels, said Plantation Industries and Commodities Minister, Datuk Seri Mah Siew Keong. He said this following the recent announcement by the French Minister of Environment, Nicholas Hulot, who suggested for measures be taken to restrict the use of palm oil in biofuels, to reduce deforestation in the countries of origin.

 

RAM reaffirms Sabah Credit Corporation’s sukuk ratings

RAM Ratings has reaffirmed the AA1/Stable/P1 ratings of Sabah Credit Corporation’s (SCC) outstanding sukuk instruments. SCC is wholly owned by the State Government of Sabah, and operates under the purview of the Sabah State Ministry of Finance.

 

Petra Energy a strong contender for Petronas’ MCM contract

Petra Energy Bhd (Petra Energy) remains a strong contender to win the upcoming modification, construction and maintenance (MCM) contract from Petroliam Nasional Bhd (Petronas). Tthe research arm of Affin Hwang Investment Bank Bhd  believed that Petra Energy’s current outstanding order book of RM1.4 billion, which will be expiring in May 2018, might not be fully translated into actual revenue due to its call-out nature.

 

Analysts reaffirm Vivocom’s earnings estimates

The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) emerged from a meeting with Vivocom International Holdings Bhd (Vivocom) executive director Choo Seng Choon feeling reassured with its estimates. MIDF Research noted that year-to-date, Vivocom share price decreased 36.11 per cent and comparatively, 53.63 per cent from its high in May, 2016. The research arm attributed the tumble to bad press and market cyclicality.

 

National

Business confidence in Malaysia remains marginally optimistic for 3Q

Business confidence in Malaysia remained marginally optimistic in the third quarter (Q3) of this year, said Dun & Bradstreet (D&B) Malaysia Sdn Bhd. The finding was based on its Business Optimism Index (BOI) study.

 

Lotte debuts at RM6.50 on main market of Bursa Malaysia

Lotte Chemical Titan Holding Bhd made its debut on the Main Market of Bursa Malaysia on Wednesday at RM6.50, unchanged from its initial public offering price. The integrated petrochemical producer, which expected to raise close to RM3.8 billion from the IPO involving up to 580 million shares – the largest listing since 2012 – saw 21 million shares traded at the opening.

 

Malaysian venture the first for WeChat beyond China, HK shores

Tencent Holdings Ltd has applied for a license in Malaysia to offer local payment services via its WeChat Pay, in what would be a first for the platform beyond mainland China and Hong Kong, the director of WeChat Pay’s global operation told Reuters. If approved, users in Malaysia will be able to link their local bank accounts to WeChat Pay and pay for goods and services in ringgit.

 

AFG gets shareholder nod for listing status change

Alliance Financial Group Bhd (AFG) has received shareholder approval for the proposed corporate reorganisation exercise whereby its listing status will be assumed by its wholly-owned core subsidiary, Alliance Bank Malaysia Bhd. AFG chairman Datuk Oh Chong Peng said the proposed corporate exercise would involve, among others, the AFG shareholders exchanging their existing shares for ABMB’s shares on a 1-for-1 basis where the number of shares held and the percentage shareholding would be the same in both companies.

 

BNM maintains OPR at 3 pct

The overnight policy rate has been maintained at three per cent by the Monetary Policy Committee of Bank Negara Malaysia. In a statement, BNM said at the current level of the OPR, the stance of monetary policy is accommodative and supportive of economic activity.

 

SC to launch SRI funds framework by year-end

The Securities Commission Malaysia (SC) will launch a sustainable and responsible investment (SRI) funds framework by year-end to strengthen Malaysia’s position as a centre for Islamic funds and finance. SC Development and Islamic Markets managing director Zainal Izlan Zainal Abidin said the framework, to be launched in the second half of the year, would be based on Islamic values, as both SRI and Islamic finance have similar principles.

 

Plantation, commodities generate in RM122 bln in export revenue in 2016

Malaysia generated RM122 billion in revenue from the plantation and commodity sector last year, making it one of the country’s main export contributors. Plantations Industries and Commodities Minister Datuk Seri Mah Siew Keong said the sector made a big impact on the nation’s socio-economic development, especially to the smallholding community.