Public Bank will reduce its base rate (BR) and base lending rate (BLR) by 50 basis points (bps), in line with Bank Negara Malaysia’s (BNM) overnight policy rate (OPR) cut yesterday.

BNM made its third OPR cut of the year, reducing it by 50bps to 2%, a level last seen during the 2008-09 global financial crisis. BNM earlier cut the OPR by 25bps in January and another 25bps in March.

Public Bank lowers base rate, base lending rate by 50bps

The FBM KLCI closed up 12.96 points or 0.94% at 1,389.55 today as a confluence of factors, including higher crude oil and palm oil prices as well as Bank Negara Malaysia’s (BNM) 50 basis-point overnight policy rate (OPR) cut to 2.00%, spurred broad-based buying across Bursa Malaysia.

BNM OPR cut, oil price rise spur Bursa share gains

A mild improvement was seen in Malaysia’s first-quarter (1Q) trade performance, but economists say the outlook for the next two quarters is dim as a result of the movement control order (MCO).

Data released by the Department of Statistics Malaysia today showed exports and imports rising by 1.1% and 1.3% year-on-year during the first quarter of the year.

Malaysia’s 1Q trade numbers up slightly, but economists say outlook dim

The wearing of face masks at airports has been made compulsory by Malaysia Airports Holdings Bhd (MAHB) under its new guidelines for passengers, with the resumption of domestic air travel.

Passengers must wear face mask when entering airport terminals, says MAHB

Moody’s Investors Service expects to place more banks on a negative outlook as the economy enters a prolonged downturn caused by the pandemic crisis.

It said the capital levels of banks globally will be a key differentiator when assessing their credit profiles in the current recession.

Outlook for more banks could be downgraded as pandemic deepens — Moody’s

CGS-CIMB Research has lowered its end-2020 KLCI target to 1,348 from 1,375 (based on 14.5x P/E) previously.

In a strategy note May 4, the research house downgraded its 2020F KLCI earnings forecasts to -9.1% from -3.5% to reflect recent downgrades in MISC Bhd, Genting Bhd, Kuala Lumpur Kepong Bhd, Maxis Bhd and consensus downgrade in CIMB earnings estimates.

CGS-CIMB lowers end-2020 KLCI target to 1,348

The FBM KLCI closed 31.19 points or 2.22% lower at 1,376.59 today as investors weighed the prospect of renewed US-China trade tension amid a spat over the origin of the Covid-19 pandemic.

In Malaysia, the IHS Markit Malaysia Manufacturing Purchasing Managers' Index's (PMI) latest reading, which showed a deterioration in the local industry, also affected market sentiment, according to analysts

KLCI falls on dour manufacturing sentiment, US-China Covid-19 spat

Exports fell 4.7% year-on-year (y-o-y) in March to RM80.1 billion, mainly driven by a decline in exports of electrical and electronics products, according to the Department of Statistics Malaysia.

Imports also fell 2.7% y-o-y to RM67.8 billion in March, the department said in a statement today.

March exports fall 4.7% to RM80.1b as electrical products drag

The Association of Banks in Malaysia (ABM) confirmed today that its member banks will be reaching out to their respective hire purchase (HP) customers to notify them of the procedures needed to effect the moratorium on their loans.

This follows Bank Negara Malaysia’s (BNM) statement earlier in the day requiring banking institutions to take appropriate steps to ensure that borrowers or customers are provided with clear information on the process and changes to terms of their agreements.

ABM confirms loan moratorium procedures for hire purchase customers

The Companies Commission of Malaysia (SSM) has appointed Nor Azimah Abd Aziz as its new chief executive officer, effective May 1.

Nor Azimah, who was previously the deputy CEO in charge of corporate affairs, takes over from Dr Azman Hussin

Nor Azimah Abd Aziz is new SSM CEO

(May 9): Arm Holdings Plc shares tumbled after the chip designer gave a lukewarm revenue forecast for the fiscal year, raising concerns that the tech industry’s artificial intelligence spending spree is slowing.

For fiscal 2025, which ends next March, revenue will be US$3.8 billion to $...

Arm shares fall after company gives tepid annual forecast

KUALA LUMPUR (May 9): All eyes wiill be on Bank Negara Malaysia as the central bank is set to announce its overnight policy rate (OPR) decision later this afternoon.

A Bloomberg poll showed that all 24 economists it surveyed are expecting BNM to keep the OPR unchanged at 3% following Ma...

Economists bet on BNM leaving the OPR unchanged later today

MADRID (May 9): Real Madrid showed they remain Europe's comeback kings as Joselu's late double rescued them from the brink of elimination to reach the Champions League final with a dramatic 2-1 second-leg win over Bayern Munich at Santiago Bernabeu on Wednesday.

A 4-3 aggregate victorys...

Real Madrid stun Bayern with late fightback to reach Champions League final

(May 9): Tesla Inc.’s directors say they don’t want a do-over in Texas of the Delaware court battle that killed co-founder Elon Musk’s US$56 billion pay package — regardless of whether shareholders approve reincorporating the electric-car maker in the Lone Star state.

Lawyers for Tesla’...

Tesla board vows not to move Musk pay court fight to Texas

(May 9): House Democrats joined with Republicans to block a hardliner attempt to overthrow Speaker Mike Johnson, a rare cross-party alliance formed to reward the GOP leader for help securing US$61 billion in aid for Ukraine.

Yet the speakers’ reliance on partisan opponents to maintain h...

House Democrats quash ouster of partisan foe Speaker Johnson

(May 9): The Dow Jones Industrial Average ended higher on Wednesday, stretching its winning streak to six straight and closing above 39,000 points for the first time in five weeks, as investors kept betting on supportive U.S. monetary policy.

The other Wall Street benchmarks cooled a to...

Dow ends higher for 6th session, but Treasury yields pressure market

NEW YORK/LONDON (May 9): Global equity markets mostly faltered on Wednesday as investors await fresh inflation data to better assess the likelihood of Federal Reserve interest rate cuts, while the dollar edged higher on expectations of U.S. economic out-performance.

European stocks rose...

Stocks slip, dollar gains as market awaits inflation data

(May 9): Aston Villa are ready to face their biggest challenge of the season on Thursday when they look to overturn a two-goal deficit against Olympiakos in the second leg of their Europa Conference League semi-final on Thursday, manager Unai Emery said.

Ayoub El Kaabi scored a hat-tric...

Villa ready for season's biggest challenge against Olympiakos, Emery says

(May 9): Goldman Sachs on Wednesday said they no longer expect OPEC+ to announce a partial unwind of voluntary production cuts in June.

The bank said inventories have recently surprised to the upside, and as a result, their model now estimates only a 37% chance of a production increase ...

Goldman Sachs sees OPEC+ unlikely to raise production at June meeting

(May 9): Britain is refusing to sign the World Health Organization's pandemic accord because the country says it would have to give away a fifth of its vaccines, the Telegraph reported on Wednesday.

Britain will only agree to a legally binding global accord if there is a commitment that...

UK refuses to sign global vaccine treaty, The Telegraph reports

KUALA LUMPUR (May 8): The global semiconductor industry is expected to rebound this year, driven by demand for generative artificial intelligence (AI), with the industry’s upcycle likely to continue until 2025 or 2026, said Nomura Asset Management.

Global semiconductor industry to recover this year through 2026 on generative AI demand — Nomura

Industronics Bhd said it has been appointed as the project management company to develop a hotel and golf course on a 155-acre parcel of land in Langkawi.

Widad’s largest shareholder appoints Industronics to manage Langkawi golf course, hotel development

The emergence of digital banks in Malaysia does not significantly impact traditional banks, primarily due to their limited ability to achieve rapid growth within the initial years of operation.

S&amp;P Global Ratings senior analyst, financial institution ratings, South and Southeast Asia (SSEA), Sue Ong said that the five digital banking licences issued by the Bank Negara Malaysia (BNM) in 2022 do not seem to be a game changer for now.

Digital banks will not affect traditional banks in Malaysia — S&P Global Ratings

Pharmaniaga Bhd’s (KL:PHARMA) has been flagged by its independent auditors again, as its current deficit and capital deficiency for the financial year ended Dec 31, 2023 (FY2023) widened from a year ago.

Messrs PricewaterhouseCoopers PLT (PwC) raised material uncertainty on the Pharmaniaga whereby its audit indicated that the group and the company incurred net losses of RM78.7 million and RM63.3 million respectively.

Pharmaniaga’s auditors raise going concern issue again as current deficit, capital deficiency widen

Fitters Diversified Bhd [KL:FITTERS] saw Doris Wong Sing Ee emerge as its substantial shareholder after she acquired 45 million shares in the fire protection equipment supplier.

Wong acquired 45 million Fitters shares from the open market on May 3, raising her stake in the fire protection equipment supplier to 5.12%, Fitters bourse filing showed.

Metronic Global director Wong emerges as Fitters’ substantial shareholder

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EVENING 5: Five things you need to know today

KUALA LUMPUR (May 8): Here is a brief recap of some business news and corporate announcements that made the headlines on Wednesday:

Sentral Real Estate Investment Trust (KL:SENTRAL), or Sentral REIT, posted a 30.29% increase in its net property income in the first quart...

Sentral REIT, Vstecs, Dufu Tech, MNRB, Mega First,  Ivory Properties, Paragon Globe and Sarawak Cable

Mega First Corp Bhd (MFCB) is buying a 64% stake in CSC Agriculture Holdings Sdn Bhd, a company that is involved in plantation and the wholesale of fruits and vegetables, for RM25 million.

Mega First buys 64% stake in CSC Agriculture for RM25 mil

Malaysian conglomerate Axiata Group (KL:AXIATA) and Indonesian group PT Sinar Mas have sought permission from the Indonesian government to merge their telco units, the communications minister told Reuters on Wednesday.

Axiata, Sinar Mas seeking permission for Indonesia telco merger, minister says

The Home Ministry (KDN) has inked 14 contracts with local companies valued at RM2.156 billion in conjunction with the Defence Services Asia (DSA) Exhibition &amp; Conference 2024 and National Security (NATSEC) Asia 2024.

Home Minister Datuk Seri Saifuddin Nasution Ismail said the signing of the contracts is symbolic of the ministry’s continuous efforts for agencies under its purview.

Home Ministry signs 14 contracts with local companies worth over RM2 bil

Paragon Globe Bhd (KL:PGLOBE) is selling part of a parcel of freehold land it had just acquired in the district of Plentong, Johor Bahru, for RM238.32 million to improve its liquidity and financial position.

Paragon Globe to sell part of JB land it just bought for RM238 mil

Sarawak Cable Bhd (KL:SCABLE) has to go back to the drawing board and look for a new white knight to regularise its financials.

The Practice Note 17 (PN17) company announced that the Memorandum of Agreement it entered with Serendib Capital Ltd has fallen through.

Sarawak Cable needs a new white knight as 'resuscitation exercise' falls through

Intel Corp expects second-quarter revenue to fall below the midpoint of previously issued projections because of a new US ban on chip exports to Huawei Technologies Co.

Intel sees revenue falling below midpoint on US Huawei ban

The Transport Ministry (MOT) does not reject any strategic partnerships with private parties to provide services for its agencies, but such partnerships needed to be done properly and required official approval.

Its minister, Anthony Loke said the ministry did not want any company to launch or announce any services for government departments suddenly without the knowledge of the ministry itself.

Loke tells BJAK to submit official application for strategic partnership with MOT, JPJ

The Malaysian Anti-Corruption Commission (MACC) has arrested a company director and a law firm owner on suspicion of submitting false information related to foreign currency investments, totalling approximately RM38 million.

Company director, law firm owner detained over RM38 million investment case — MACC

Practice Note 17 (PN17) company Ivory Properties Group Bhd (KL:IVORY) said in a Bursa Malaysia filing on Wednesday it had been granted a restraining order by the High Court of Malaya in Penang to restrain all further proceedings against the company including winding up, execution and arbitration from its creditors.

The restraining order, which will last for a period of three months from April 19, 2024, is to enable Ivory Gleneary Sdn Bhd (IGSB), a wholly-owned subsidiary of Ivory Properties, and its creditors to formalise the proposed scheme of arrangement and thus allow for the extension of time to submit the company's regularisation plan in order to get out of the PN17 status.

Ivory Properties gets three-month restraining order to avoid winding up proceedings by creditors

Financial planners need to carry out their duty to report any suspicious activities, that might be linked to money laundering, to the authorities, Bukit Aman Anti-Money Laundering Criminal Investigation Division assistant director ACP Foo Wei Min.

Financial planners should report suspicious activities to authorities — police

Annum Bhd (KL:ANNUM), formerly known as Cymao Holdings Bhd, has been categorised a Practice Note 17 (PN17) company as its new external auditor&nbsp;Messrs SBY Partners PLT expressed a disclaimer of opinion on its audited financial statements for the 18 months ended June 30, 2023, after they failed to obtain sufficient evidence to verify the group's assets.

Annum slips into PN17 after auditor says it can't vouch for company's financials

SINGAPORE (May 8): Local telco operators StarHub and M1 are said to be back to exploring a potential merger of their businesses, according to TMT Finance, citing five sources familiar with the matter.

StarHub, M1 potential merger said to be back on — TMT Finance

The Malaysian Anti-Corruption Commission (MACC) arrested a lawyer on Wednesday afternoon on suspicions of soliciting and accepting a bribe of around RM1.6 million from an entrepreneur.

The suspect, who is in his 30s, was arrested at a fast food restaurant around Ipoh, Perak at around 12 noon after receiving RM100,000 in cash and two cheques for RM1.5 million, a source said.

Syahirah Syed Jaafar

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