BURSA MALAYSIA (TUE, 27 NOV 2018)
MID-DAY LUNCH BREAK REVIEW
BRIEF MARKET REVIEW:
According to The Edge, the FBM KLCI fell 0.95% at the mid-day break today after Morgan Stanley cut Malaysia to “underweight” with 3% implied downside as market tends to underperform when in rising emerging market and falling oil prices provide headwind with budget set at US$70/bbl (RM293.55/bbl) while earnings face further risk as fiscal consolidation bites into infrastructure projects
Losers beat gainers by 560 to 162, while 302 counters traded unchanged. Volume was 1.17b shares valued at RM1.27b.
Asia markets traded mostly higher on Tuesday, following an overnight bounce on Wall Street as investors await a crucial meeting between President Donald Trump and Chinese leader Xi Jinping.
It was reported that Apple suppliers in Asia will be closely watched throughout the trading day after Trump suggested that he could place a 10 percent tariff on iPhones and laptops imported from China. Apple products are currently exempt from tariffs.
STOCKS IN THE LIMELIGHT:
GENTING MALAYSIA (RM3.07, -14.72%)
Shares of GENM tumbled to a two-year low of RM2.93 on Tuesday as FOX terminated a memorandum of agreement and claimed some US$46.2m in accelerated payments. The stock closed mid-day at RM3.07, down 14.72%, with 186.2m shares traded.
Local media, The Star, reported that Walt Disney Co and Twenty-First Century Fox Inc were sued for more than US$1 billion on Monday by casino operator GENM, which accused them of abandoning a contract related to its planned construction of the first Fox-branded theme park. The lawsuit was filed in the U.S. District Court in Los Angeles as Disney prepares to complete its $71.3 billion purchase of many Fox assets, expected in the first quarter of 2019.
Genting said the problems began as Fox engineered years of delays to force a renegotiation of the contract, which did not give it a share of gate sales. But according to the complaint, Disney is now “calling the shots,” and wants to end the contract because associating with a gaming company didn’t fit its “family-friendly” brand strategy. Genting said Fox issued a default notice with the hope of terminating the contract, in a manner “entirely consistent with Disney wanting to kill the deal” to benefit itself.
LAY HONG (RM0.375, -15.73%,)
Local media, The Edge, reported that the poultry and egg producer Lay Hong Bhd group posted a net loss of RM10.96m in the second financial quarter ended Sept 30, 2018 (2QFY19)– its first loss-making quarter in two-and-a-half years – compared with a net profit of RM12.17m a year ago due to higher feed cost, resulting from the stronger US dollars.
LAYHONG closed at RM0.375 mid-day on a high volume traded of 17.1m shares.
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