September 2016

Friday 30 September 2016

Oil prices rise despite doubts over OPEC output deal

Oil costs added Thursday to soak picks up fuelled by OPEC's arrangement to cut rough yield, however examiners questioned the cartel's capacity to truly handle a supply overabundance.

Taking after a meeting that included Russia, the Organization of the Petroleum Exporting Countries shocked markets Wednesday by saying it wanted to trim aggregate generation by approximately 750,000 barrels for each day.

This took after talks in Algiers on how the cartel could prop up costs that have dove from $100 in mid-2014 to underneath $30 toward the begin of 2016, predominantly inferable from abundance supplies.

Accurate subtle elements of the arrangement stay to be concurred and experts said markets will now hold up to perceive how other real makers respond.

Recently Russia had communicated its backing for a yield solidify. Be that as it may, on Thursday Russian Energy Minister Alexander Novak said that his nation means to keep oil creation at current levels.

The cartel's declaration of a first authority lessening in eight years sent unrefined costs surging six percent Wednesday, while vitality firms over the globe have seen their offer costs take off.

Toward the end of six hours of transactions and weeks of stallion exchanging, OPEC said it would slice creation to 32.5-33 million barrels for each day from around 33.5 million in August.

Be that as it may, the business sector picks up directed early Thursday. The US benchmark, West Texas Intermediate for conveyance in November, added 78 pennies to settle at $47.83 a barrel.

In London, Brent North Sea rough for November rose 55 pennies to $49.24 a barrel.

However experts were questionable that an arrangement would have much genuine effect on the supply-request condition in the business sector.

"We are certain that OPEC nations won't adhere to the understanding," remarked Commerzbank examiner Carsten Fritsch.

Regardless of the possibility that they do, he said, exceptions from slices conceded to Iran, Nigeria and Libya imply that "the issue of surplus won't be understood if these nations take full favorable position of their abilities once more".

Wednesday's arrangement came after OPEC kingpin Saudi Arabia permitted biting opponent Iran to be exempted from the reductions, as the Islamic Republic recoups from years of authorizations on its oil sends out.

"It is Saudi Arabia who has plainly flickered to begin with, permitting Iran, its fundamental adversary, to increase generation," said Jeffrey Halley, senior business sector expert at Oanda exchanging bunch.

"These two don't see eye-to-eye on anything so this is a tremendous concession by Saudi Arabia to "grease up" the procedure," he told AFP.

The Paris-based International Energy Agency called the understanding "an imperative improvement for the oil market", however it additionally forewarned that it was too soon to tell how it would really influence market equalizations.

"The IEA keeps on trusting that oil costs ought to be controlled by business sector basics," it said.

French bank Societe Generale said in a note to customers that the arrangement gave a more grounded help to oil-delicate stocks and coinage than it did to unrefined petroleum itself.

"The reality of the situation will become obvious eventually whether oil costs will drift higher (after an automatic rally), and the business sector will first hold up to perceive how the cuts are divvied up between individuals," to be chosen at the November OPEC meeting.

Another inquiry is the manner by which the new move will influence US yield. The Saudi technique of flooding the business sector was coordinated especially at US high-taken a toll shale makers, with Riyadh wanting to drive them bankrupt.

The effect was clear: US oil generation fell by 12.5 percent, or 1.2 million barrels a day.

Be that as it may, the dive in oil incomes hurt everybody. It cleared out Saudi Arabia with a record shortfall, provoking sharp slices to spending and pay rates.

"Saudi Arabia have maybe reassessed their dumping oil procedure to make US shale bankrupt as the weight on their financial plans has unmistakably achieved a tipping point also," Halley said.

Malaysian shares bounce back

KUALA LUMPUR: Malaysian shares and the ringgit rose Thursday in the wake of an assention between real oil makers to control yield.

The benchmark FTSE Bursa Malaysia KLCI rose 0.3 for every penny to 1,669.64 focuses Thursday. The list is minimal changed for the week as such.

As indicated by a Nikkei Asian Review (NAR) report, Malacca Securities said in a note that OPEC's choice to utmost generation, combined with the bounce in oil costs, floated oil and gas stocks on Bursa Malaysia,

The KLCI could focus on the following resistance level of 1,680 over the close term, the business said.

The ringgit rose 0.3 for each penny to 4.122 against the dollar, yet stays 0.3 for each penny lower for the week, as indicated by NAR.

Worldwide unrefined costs hopped just about 6 for every penny Wednesday after the Organization of Petroleum Exporting Countries consented to abridge yield interestingly since 2008.

The NAR report said OPEC individuals had consented to confine their creation to 32.5 million to 33 million barrels for every day from the current assessed yield of 33.24 million barrels a day.

The insights about how much every part nation will deliver is to be chosen at a meeting in November.

The benchmark Brent raw petroleum contract was last down 1 for each penny at USD48.15 per barrel.

As indicated by the NAR report unrefined costs, which have more-than-divided since 2013 in the midst of oversupply concerns, are as of now set out toward their first yearly progress in four years.

On the KLCI, 15 of the 30 constituents finished higher Thursday and six shut unaltered, while general declining issues dwarfed propelling ones 448 to 342.

SapuraKencana Petroleum bounced 4.7 for each penny to RM1.57, driving increases on the KLCI. On Wednesday, SapuraKencana reported a close to 8 for each penny year-on-year ascend in second-quarter net benefit to RM112.26 million.

Sime Darby finished 1.6 for every penny higher at RM7.77.

The NAR report said that not long ago, the organization said it had cut the cost at which it would offer a portion of its stake held in property designer Eastern and Oriental to RM323.3 million to better mirror the present attitude toward Malaysia's property division.

Malayan Banking rose 1.3 for every penny to RM7.62, while RHB Bank rose 0.8 for each penny to RM4.85. Petronas Chemicals rose 1.4 for every penny to RM6.69.

Astro Malaysia slipped 1.7 for each penny to RM2.83.

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Second Singapore-dollar bond default by oil & gas services firm looming

Kuala Lumpur-recorded seaward administrations firm Perisai Petroleum Teknologi and its investors are attempting to go to a concurrence on the $125 million worth of notes because of experienced next Monday.

What's more, Singapore-recorded Ezra Holdings, with a 22.5 for each penny stake in Perisai through two units, could wind up in danger too ought to the firm neglect to reclaim its bonds. The two firms are connected through a US$43 million (S$59 million) put alternative.

The arrangement 001 notes, with a coupon rate of 6.875 for every penny, were issued under Perisai's $700 million multi-coin medium-term note program in 2013.

On Sept 10, Perisai began to look for assent from note holders to postpone the installment of note vital and interest. They are expected on Oct 3.

The firm likewise needs to defer the development date by four months to Feb 3 one year from now.

Perisai likewise plans to have the capacity to postpone any resistance or potential rebelliousness of least intrigue scope proportion agreements for the second from last quarter; erase the underwriter's pledge to keep up a base interest scope proportion; and forgo any resistance with the arrangement of the notes and event of any default or potential default.

Perisai said it is working under "amazingly tight monetary conditions" as business has been harmed by powerless unrefined costs and moderate financial development.

Quickening notice recorded by note holders

The gathering, which has twice postponed conveyance of a penetrating apparatus it had gotten a Sembcorp Marine unit to manufacture, had RM36 million (S$12 million) in real money and bank parities as at March 31, as per its outcomes.

Perisai has set a meeting for Oct 3 - the development date - where it should acquire a 75 for each penny endorsement from investors for its obligation commitments to be effectively conceded. Be that as it may, its investors speaking to around 32 for each penny of the remarkable bond issue, on Sept 11 documented a quickening notice with the trustee of the firm, sources said.

This implies Perisai will bring to the table new terms to its note holders, or be compelled to recover the bonds with prompt impact when the quickening notification is in the long run served.

"They're requesting an unlimited free pass," said a note holder, who declined to be named. "All we're searching for is a more sensible determination." Mr Terence Lin, aide chief of securities and portfolio administration at asset specialist iFast, noticed that Perisai's expressions don't accompany any assurance that speculators will get back their cash in February. "The organization is purchasing time to arrange with moneylenders and conceivably work out some kind of rebuilding arrangement. In the event that investors choose to vote against the arrangement, the organization will be in default and it is improbable that bank loan specialists will keep arranging."

In the interim, examiners trust that the fiscally focused on Perisai is prone to practice the put alternative to offer its 51 for every penny stake in SJR Marine and a versatile seaward generation unit to Ezra's EOC for US$43 million - exerciseable on Nov 26.

The move could spell torment for Ezra, officially one of the vigorously utilized firms in the seaward part here. "Perisai is going to practice the put alternative, yet whether EOC can convey - that is another issue," an examiner said, taking note of that Ezra is likewise "entirely tight as far as their income and money related position".

Ezra's second from last quarter comes about demonstrated its aggregate gathering borrowings and obligation securities remained at $1.2 billion as at May 31, while money and money reciprocals added up to simply $43.6 million. Whenever inquired as to whether the gathering has the cash to respect the put alternative, an organization representative just said: "We are aware of the progressing examinations and are observing the improvements. As and when there are material advancements to the circumstance, we will give a convenient upgrade through the Singapore Exchange."

Thursday 29 September 2016

Oil stocks in focus after OPEC move to curb crude output

KUALA LUMPUR: Lower liners oil and gas stocks ascended in dynamic exchange on Thursday, riding on the increases in oil prospects after an amazement move by OPEC to control unrefined yield.

At 10am, the KLCI was up 2.88 focuses or 0.17% to 1,667.84. Turnover was 525.39 million shares esteemed at RM260.48mil. There were 289 gainers, 192 failures and 286 counters unaltered.

The Organization of the Petroleum Exporting Countries consented to breaking point its generation to a scope of 32.5 million to 33.0 million barrels for each day (bpd) in talks hung on the sidelines of a vitality gathering in Algeria, Reuters reported.

US light rough had risen 28 pennies to $47.33 a barrel by 0020 GMT, in the wake of shutting the past session down US$2.38, or 5.3%. Brent rough climbed 31 pennies to US$49 a barrel, having settled up US$2.72, or 5.9%.

At Bursa Malaysia, Borneo Oil, which is included in oil and gas furthermore gold mining, climbed 0.5 sen to 18.5 sen and it was the most dynamic with 46.5 million shares done.

Sumatec likewise added 0.5 sen to nine sen, Bumi Armada 2.5 sen higher at 71.5 sen while Perisai Petroleum rose 0.5 sen to 14.5 sen. KNM added one sen to 42 sen.

SapuraKencana rose eight sen to RM1.58 while the call warrants, C25 rose 1.5 sen to 7.5 sen.

Concerning buyer stocks, BAT added 40 sen to RM49.52 with 2,100 shares done while F&N propelled eight sen to RM24.26.

Hong Leong Bank was the top gainer, up 10 sen to RM13.20 yet Public Bank shed six sen to RM19.88.

Poultry organization Lay Hong added 10 sen to RM10.

Genting Plantations fell the most, down 12 sen to RM10.76.

Pos Malaysia surrendered a portion of the earlier day's additions, plunging five sen to RM3.90.

Glove creators Top Glove fell 11 sen to RM4.96 and Kossan lost nine sen to RM6.80.

On the specialized viewpoint for the KLCI, Kenanga Investment Bank Research said on the outline, the KLCI is as yet floating sideways over its 1,662 (S1) bolster level.

"We watch that a 'demise cross' has been framed by the 20-day and 50-day SMA pattern lines, painting an all the more unsatisfying viewpoint ahead.

"With the absence of crisp impetus locally and also nonattendance of any purchase flag in fact, the nearby bourse could be balanced for further union on an unstable design inside 1,662-1,680 level this week. Overhead resistance are found at 1,680 (R1) and 1,691 (R2), while drawback backing are topped at 1,662 (S1) trailed by 1,650 (S2)," it said.

Better oil prices lift ringgit higher against US dollar

KUALA LUMPUR: The ringgit rebounded from three days of losses to open higher against the US dollar this morning, lifted by stronger oil prices, dealers said.

At 9 am, the ringgit traded at 4.1120/1170 to the US dollar from 4.1360/1410 on Wednesday.

A dealer said the rebound of crude oil prices came as hopes have risen that a deal to curb oil production could be reached at the formal Organisation of the Petroleum Exporting Countries (OPEC) meeting in November.

It was reported that OPEC has agreed to cut oil production to 32.5-33.0 million barrels per day (bpd) during a talk held in conjuction with the three-day informal meeting in Algeria that began on Sept 26.

The surprise move has led overnight Brent crude prices to rise 31 cents to US$49.00 a barrel, while US West Texas Intermediate crude oil price went up 28 cents to US$47.33 a barrel.

Meanwhile, the ringgit also traded higher against other major currencies.

It appreciated against the Singapore dollar to 3.0231/0272 from 3.0380/0422 yesterday and strengthened versus the yen to 4.0644/0710 from 4.1081/1143.

The local unit rose vis-a-vis the British pound to 5.3649/3739 from Wednesday's 5.3747/3821 and expanded against the euro to 4.6165/6234 from 4.6389/6454.

Oil prices retreat as investors wait for clarity on OPEC deal

Oil fates withdrew on Thursday as the business sector developed more suspicious on how OPEC would actualize an arrangement to check oil yield a day after the gathering consented to utmost creation.

Benchmark costs had at first amplified increases made in the past session taking after the choice by the Organization of the Petroleum Exporting Countries (OPEC) to lessen its total yield by 700,000-800,000 barrels for each day (bpd), or to around 32.5 million to 33 million bpd.

In any case, Brent and U.S. West Texas Intermediate (WTI) withdrew from their largest amounts in over two weeks as the business sector concentrated on the absence of hard realities about the arrangement.

"Financial specialists and dealers are distrustful – in light of current circumstances. More pessimistic brokers are scrutinizing the complete absence of point of interest, including the possibly risky inquiry of which countries will diminish creation," Michael McCarthy, boss business sector strategist at Sydney's CMC Markets, told Reuters.

OPEC said every part's yield cuts will be chosen at its next formal meeting in November, when a welcome to join the arrangement could likewise be reached out to different makers, for example, Russia.

Brent unrefined had fallen 26 pennies to $48.43 a barrel by 0431 GMT, after prior moving to a high of $49.09 when the business sector opened, its most astounding since Sept. 9. Brent settled up $2.72 a barrel, or 5.9 percent, in the past session.

WTI unrefined fell 6 pennies to $46.99 a barrel, after first hitting $47.47, its most noteworthy since Sept. 8. The U.S. oil rose $2.38, or 5.3 percent, on Wednesday.

"There is an absence of clarity and point of interest which is the reason individuals are taking benefits," said Virendra Chauhan, oil expert at Energy Aspects in Singapore.

Vitality Aspects evaluated the net impact of the generation cuts would be around 400,000 barrels a day as yield from Libya and Nigeria stayed questionable.

"A creation solidify at a level that permits everybody to deliver at or close greatest limit will do almost no to decrease the oversupply in the business sector," Peter Lee, oil and gas investigator at BMI Research, told Reuters.

Some backing at costs came as U.S. unrefined stocks fell 1.9 million barrels to 502.7 million barrels in the week to Sept. 23, against investigator desires for a 3 million barrel increment, information from the U.S. Branch of's Energy Information Administration appeared. [EIA/S]

Inventories were required to bounce back after a major drop a couple of weeks prior, however rather stocks have kept on declining, alongside imports.

U.S. inventories, nonetheless, still stay at generally abnormal states for this season of year, as per the EIA.

Wednesday 28 September 2016

Crude Oil : Asia Fuel Oil-Time spreads and cracks consolidating, poised for ‘breakout’

Asia's fuel oil markets were unfaltering in the midst of restricted action on Tuesday yet kept on hinting at combination from which a deviation may soon develop, industry sources said.

"The business sector has been combining and is prepared for a breakout soon, presumably to the drawback in the event that you ask me since the technicals are looking bearish," said a Singapore-based dealer.

"It's still really tranquil, the vast majority are sitting out the Algiers meeting which is bringing about a great deal of unpredictability," said a Singapore-based representative.

The 380-cst front month Oct/Nov time spreads have exchanged a tight range between in addition to $1 and in addition to $1.25 a ton to Singapore cites in the course of the last four sessions. On Tuesday, the 380-cst Oct/Nov time spreads slipped 25 pennies to $1 a ton above Singapore cites.

The front month 180-cst fuel oil split to Dubai rough exchanged at a rebate of short $3.74 a barrel, the base end of the previous eight days' exchanging scope of less $3.22 to less $3.74 a barrel.

Splits of the 180-cst fuel slipped 42 pennies a barrel on Tuesday because of Monday's expansion in raw petroleum costs, industry sources said.

On Sept. 20, refining edges for Asia's 180-cst fuel oil were at their tightest in around eight months, supported by firm interest for the modern fuel and also contracting inventories in key stockpiling center points.

Regarding market basics, be that as it may, close term prospects appear to be more strong.

"Supplies throughout the following couple of months are on the dainty side which ought to bolster the business sector, particularly when you think about that interest is still quite great," another Singapore merchant said.

RELATED STORIES:

– Saudi Arabia and Iran on Tuesday dashed trusts that OPEC oil makers could secure a yield constraining arrangement in Algeria this week as sources inside the exporter bunch said the contrasts between the kingdom and Tehran remained too wide.

– Saudi Arabia will cut priests' compensations by 20 percent and scale back monetary advantages for open segment workers in a standout amongst the most extraordinary measures yet by the vitality rich kingdom to spare cash during an era of low oil costs.

– Russian oil majors Rosneft and Gazprom Neft are raising the offer of creation from difficult to-recoup stores, to counter declining ordinary yield, demonstrating the complexities confronting maker countries trying to handle a worldwide oversupply of unrefined.

KLCI NEWS | KLCI gains 0.32% in line with regional markets

KUALA LUMPUR (Sept 28): The FBM KLCI ascended at mid-morning today, in accordance with the additions at most territorial markets.

At 10.02am, the FBM KLCI rose 5.36 focuses to 1,670.08.

The top gainers included Teck Guan Perdana Bhd, Malaysian Pacific Industries Bhd, Ajinomoto (M) Bhd, British American Tobacco (M) Bhd, Scientex Bhd, Lay Hong Bhd, Atta Global Group Bhd, Superlon Holdings Bhd, CIMB Group Holdings Bhd, Petron Malaysia Refining and Marketing Bhd and George Kent (M) Bhd.

The actives included Sanichi Technology Bhd, Lion Corp Bhd, Asia Media Group Bhd, Red Sena Bhd, Tek Seng Holdings Bhd and Clig Energy Bhd.

The top washouts included Dutch Lady Milk Industries Bhd, Kuala Lumpur Kepong Bhd, United Plantations Bhd, Panasonic Malaysia Manufacturing Bhd, CSC Steel Holdings Bhd and Syarikat Takaful Malaysia Bhd.

Asian stocks edged up from the get-go Wednesday taking after an overnight ascent for U.S. stocks, while lessened trusts that a meeting of significant makers would decrease an oversupply weighed intensely on unrefined petroleum costs, as indicated by Reuters.

MSCI's broadest file of Asia-Pacific shares outside Japan rose 0.1 percent, it said.

Hong Leong IB Research said regardless of the Dow organizing a specialized bounce back overnight, Bursa Malaysia may experience instability ahead in the midst of debilitating oil costs.

"In any case, any pullback will be padded by potential 3Q16 window dressing exercises and pre-Budget rally combined with the availability of Bank Negara Malaysia to bolster monetary development through facilitating.

"Quick upside targets are 1678-1684 while bolsters fall on 1645-1656," it said.

KLCI up among key markets at midday

KUALA LUMPUR: Bursa Malaysia was the main business sector in the Asian area which figured out how to squeeze out a few increases at late morning on Wednesday, helped by some gentle asset purchasing, lifted by additions in CIMB Group Holdings Bhd and Sime Darby Bhd.

At 12.30pm, the KLCI was up 2.12 focuses or 0.13% to 1,666.84. Turnover was 770.04 million shares esteemed at RM704.54mil. There were 295 gainers, 352 failures and 374 counters unaltered.

The ringgit fell against the US dollar to 4.1385 – the weakest since April 20 this year – from 4.1255 the earlier day. It debilitated against the pound sterling to 5.3801 from 5.3526 and slipped against the Singapore dollar at 3.0430 from 3.0353. In any case, it edged up against the Euro to 4.6385 fromm 4.6406.

Among the banks, CIMB rose eight sen to RM4.85 and supported the KLCI by 1.15 focuses. Hong Leong Bank added six sen to RM13.08, Public Bank rose four sen to RM19.98, AmBank added three sen to RM4.21 however Maybank lost three sen to RM7.56.

Raw petroleum costs squeezed out a few additions at noontime, with US light unrefined up three pennies to US$44.70 and Brent added 18 pennies to US$46.15. Petronas Gas was level at RM21.90, Petronas Dagangan lost four sen to RM23.44 and Petronas Chemicals shed one sen to RM6.69. SH Petro increased one sen to RM1.51.

Buyer stocks were among the top gainers, with Dutch Lady up RM1.10 to RM59.90 and Nestle added 16 sen to RM79.34. BAT fell the most, down 42 sen to RM49.70. Poultry organization Lay Hong rose 14 sen to RM9.99 in meager exchange.

Among the telcos, Axiata felll five sen to RM5.40, Digi added one sen to RM4.99, Maxis three sen higher at RM6.18 and Telekom was level at RM6.79.

Unrefined palm oil for third month conveyance fell RM18 to RM2,645 per ton. With respect to ranches, Genting Plantations fell 12 sen to RM10.82 and United Plantation lost eight sen to RM27.90, PPB Group shed six sen to RM16.12 while KL Kepong shed two sen to RM24.08 however IOI Corp rose two sen to RM4.51.

Concerning steel items creators, CSC Steel fell 10 sen to RM1.91 and Choo Bee shed nine sen to RM1.95.

Among the key territorial markets,

Japan's Nikkei 225 fell 1.53% to 16,429.35;

Hong Kong's Hang Seng Index lost 0.64% to 23,421.91;

CSI 300 shed 0.19% to 3,234.15;

Shanghai's Composite Index fell 0.28% to 2,989.70;

Hang Seng China Enterprise lost 0.91% to 9,657.44;

Taiwan's Taiex fell 0.97% to 9,194.52;

South Korea's Kospi shed 0.48% to 2,052.99;

Singapore's Straits Times Index fell 0.18% to 2,855.06

Spot gold fell US$1.87 to US$1,325.45.

Tuesday 27 September 2016

Maybank : KLCI NEWS .

KUALA LUMPUR: Maybank, CIMB and IHH Healthcare drove the FBM KLCI more profound into the red at the early afternoon break on Tuesday in the midst of the weaker more extensive market yet the firmer ringgit could give some backing later.

At 12.30pm, the KLCI was down 5.7 focuses or 0.34% to 1,663.80. Turnover was 858.92 million shares esteemed at RM802.66mil. There were 251 gainers, 399 washouts and 362 counters unaltered.

The ringgit solidified against the significant monetary standards as it progressed against the US dollar to 4.1178 from the past close of 4.1328 and fortified against the pound sterling to 5.3427 fromn 5.3502. It ascended against the Singapore dollar to 3.0301 from 3.0379 and it picked up against the Euro to 4.6366 from 4.6499.

Reuters reported China stocks were minimal changed on Tuesday as financial specialists were hesitant to stake out crisp positions in front of a week-long occasion notwithstanding information demonstrating August mechanical benefits surged the most in three years.

China's blue-chip CSI300 record rose 0.1% to 3,223.15 by the meal break, while the Shanghai Composite Index lost 0.2% to 2,975.92.

In Hong Kong, offers ricocheted more than 1%, recouping quite a bit of Monday's drop, yet financial specialists were supporting a drop in inflows from China as the Shanghai-Hong Kong Stock Connect plan will be suspended Sept 29-Oct 10.

At Bursa Malaysia, Maybank fell nine sen to RM7.60 and eradicated 1.48 focuses from the KLCI, CIMB lost seven sen to RM4.73 and wiped out one point while Public Bank shed four sen to RM19.94. HLFG lost 20 sen to RM15.74, AFG fell 12 sen to RTM3.91 yet Hong Leong Bank added two sen to RM13.

Among the heavyweights, Genting Bhd lost nine sen to RM7.96, IHH fell nine sen and eradicated 1.22 focuses, Tenaga lost two sen to RM14.38 however MISC rose four sen to RM7.56. UMW lost 16 sen to RM5.86.

Among the telcos, Axiata rose two sen to RM5.39, Digi and Telekom were level at RM5 and RM6.79 while Maxis shed one sen to RM6.13.

Unrefined palm oil (CPO) for third month conveyance fell RM29 to RM2,689 per ton. Sime Darby fell nine sen to RM7.69, KL Kepong and PPB Group shed two sen each to RM24.08 and RM16.14 while IOI Corp was level at RM4.48.

BAT was the top gainer, up 38 sen to RM49.96 while Ajinomoto picked up 16 sen to RM13.66 and Apollo 10 sen higher at RM5.94.

The world's greatest glove creator, Top Glove added 17 sen to RM4.99.

Unrefined petroleum cost slipped after the earlier day's solid increases. US light unrefined petroleum fell five sen to US$45.88 and Brent shed 12 sen to US$47.23. Petronas Dagangan rose eight sen to RM23.48, Petronas Gas shed two sen to RM21.88 and Petronas Chemicals one sen lower at RM6.69 while SK Petro facilitated one sen to RM1.53.

KLCI NEWS

KUALA LUMPUR: Genting Bhd, IHH Healthcare and UMW were the fundamental delays the FBM KLCI early Tuesday as key Asian markets withdrew after the overnight droop on Wall Street while unrefined petroleum costs were went under benefit taking.

At 9.30am, the KLCI was down 4.87 focuses or 0.29% to 1,664.63. Turnover was 220.33 million shares esteemed at RM91.91mil. There were 129 gainers and 208 washouts while 245 counters were unaltered.

Kenanga Investment Bank Research said the KLCI stopped its three-day rally to close beneath its 20-day and 100-day SMA pattern lines on Monday, as the decrease was in accordance with key markets.

"RSI and Stochastic pointer are additionally moving over to mirror the withdrawing bulls, suggesting a few headwinds resistance ahead for the benchmark list.

"With that, we see that the neighborhood bourse will probably combine inside 1,660-1,673 this week in the midst of the absence of crisp household impetus. Resistance level are topped at 1,680 (R1)/1,691 (R2), while backings are found at 1,662 (S1)/1,650 (S2)," it said.

Unrefined fates slipped in Asian exchange on Tuesday as financial specialists took benefits after costs climbed more than 3% in the past session.

US West Texas Intermediate (WTI) rough had fallen 38 pennies to US$45.55 a barrel by 0103 GMT, subsequent to rising US$1.45, or 3.3%, in the past session. Brent rough fates slipped 43 pennies to US$46.91 a barrel subsequent to quitting for the day, or 3.2%.

At Bursa, Genting Bhd fell 12 sen to RM7.99, IHH nine sen to RM6.34 while UMW lost seven sen to RM5.95.

Genting Plantations fell the most however with only 100 shares done, down 32 sen to RM10.66. Lafarge lost 15 sen to RM8.01, SWS Cap nine sen to RM1.17, Teck Seng warrants fell 8.5 sen excessively 92.5 sen and Tek Seng eight sen lower at RM1.19.

BAT was the top gainer, up 36 sen to RM49.94 with 400 shares done while Petronas Dagangan added 20 sen to RM23.60 and MAHB seven sen to RM6.70.

Teck Guan Perdana surged 31 sen to RM1.37, UEM Edgenta added 12 sen to RM3.37 and MyEG five sen higher at RM2.30.

Oil prices slip on profit-taking as investors await U.S. stockpile data

Rough prospects slipped in Asian exchange on Tuesday as financial specialists took benefits after costs climbed more than 3 percent in the past session.

The dollar was additionally weighing on oil costs in the wake of ascending against a wicker bin of monetary forms, proposing markets were judging Democrat Hillary Clinton as the champ in the principal U.S. presidential verbal confrontation with Republican hopeful Donald Trump.

A more grounded greenback makes wares like unrefined that exchange on a dollar premise more costly for customers that compensation in different monetary forms.

Desires of a work in U.S. rough stockpiles a week ago, as per a Reuters survey, likewise influenced costs in the midst of worries of a worldwide oversupply.

Real oil makers are social occasion in Algeria for a three-day meeting that could see moves to cut or stop oil yield with an end goal to bolster oil costs.

The Organization of the Petroleum Exporting Countries and other oil makers drove by Russia are meeting casually on the sidelines of the International Energy Forum in Algeria from Sept. 26-28.

Be that as it may, markets stayed doubtful that makers would achieve an arrangement, said Michael McCarthy, boss business sector strategist at Sydney's CMC Markets.

"The overwhelming news for financial specialists is U.S. stock information unless we see something shocking out of Algiers," he said.

The inversion in oil costs amid the Asian time zone on Tuesday implied speculators were by and large benefit taking, McCarthy said.

Brent unrefined prospects slipped 15 pennies to $47.20 a barrel starting 0346 GMT subsequent to quitting for the day, or 3.2 percent in the past session.

U.S. West Texas Intermediate (WTI) unrefined fell 6 pennies to $45.87 a barrel, subsequent to rising $1.45, or 3.3 percent, in the past session.

U.S. business unrefined petroleum stocks likely rose by a normal of 2.8 million barrels to 507.4 million barrels in the week to Sept. 23, switching three weeks of surprising drawdowns, a Reuters survey of seven examiners appeared.

That came in front of week by week stock reports from industry bunch the American Petroleum Institute (API) that will be discharged later on Tuesday, and the U.S. Division of's Energy Information Administration (EIA) that will be distributed on Wednesday.

OPEC part Iran on Monday made light of the odds of oil makers securing a yield limitation bargain albeit a few different makers, including the United Arab Emirates and Algeria, trusted measures could be consented to check yield.

"With the business sector still unconvinced an assention will be achieved, any signs that OPEC will top yield could see costs surge higher," said ANZ in a business sector report on Tuesday.

Monday 26 September 2016

Oil price movements in Malaysia.

KUALA LUMPUR: Despite desire of change in oil costs in 2017, Hong Leong Investment Bank (HLIB) Research does not envision a solid recuperation in apparatus tallies.

"We opine that a couple overhangs should be cleared Organization of the Petroleum Exporting Countries (OPEC's) choice underway stop, rising oil creation in Russia, and shorter than normal speculation cycle of US shale oil penetrating," HLIB said in a report.

The exploration house said its study had demonstrated that oil value unpredictability was in reality a superior gage for anticipating rig number levels.

It noticed that the pattern was clear in 2009-2011 periods whereby oil costs were rising however with instability yet fix checks were all the while slowing down. Rig include just enhanced 2011-2014 day and age where oil costs balanced out above US$100 per barrel levels.

"Rig tally in Malaysia dropped to as low as four in 2016 contrasted with 6-10 rigs range seen in 2015, a dreary domain to be worked in for nearby apparatus players.

"The apparatus check appears to slack the oil value pattern in view of our perceptions potentially because of apparatus retirement slack and basic leadership slack by the oil makers," HLIB said.

It noticed that day by day sanction rate (DCR)for high-spec lift rigs had dove to US$70,000-90,000/day from US$130,000-150,000/day in the midst of serious industry downturn.

"We don't envision the rates to recuperate to their past highs in any event for 2017 supported by two noteworthy contentions oil costs are not anticipated that would recoup to US$70 per barrel level and past soon, making oil makers to keep their costs low regardless of recuperation in industry action, and supply shade of 177 apparatuses still under different development stages in the yards which should be ingested," HLIB said.

Aside from industry major issues, the neighborhood rig showcase likewise confronts basic financing issue.

"Two noteworthy apparatus players, in particular Perisai and UMW Oil and Gas, have an aggregate fleeting financing hole of near around RM1bil in light of our figurings.

"Obligation renegotiating is dependably the principal decision however we opine that it is hard to acquire in this environment because of low bank longing to give credit to O&G organizations," HLIB said, including that the organizations may turn to value gathering pledges if all else fails to connect their financing crevice.

"This would be dilutive for their shareholders with Perisai to confront bigger dilutive effect as 3.9 billion new shares should be issued in light of last exchanged value contrasted with 461.2 million shares for UMWOG. This could send a negative sign to the business sector yet the likelihood of this answer for be utilized is still there as we would see it," it said.

HLIB has looked after "unbiased" position on the segment. It looks after its "offer" on UMWOG (TP: 69 sen) and stop scope on Perisai (because of its high liquidity hazard in the midst of troublesome working environment).

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