By Nimesh Vora and Kevin Lim
SINGAPORE (Jun 23) -- Malaysian shares posted their worst weekly performance this year as a slump in crude prices to multi-month lows weighed on the oil-exporting nation's assets. Mobile operator Maxis contributed heavily to this week's losses.
Singapore stocks fell for a second consecutive week, led by losses in Global Logistic Properties and Genting Singapore.
Brent crude prices traded at their lowest levels since November, with the benchmark contract on course for a fifth straight weekly decline amid continued concerns over rising global supplies. Malaysian oil and gas major Sapura Energy slumped 15% this week, while offshore services provider Bumi Armada lost 6%. Sapura's disappointing fiscal first quarter earnings also played a part in the stock's tumble. Singaporean rig builder Keppel Corp. also edged lower this week.
The FTSE Bursa Malaysia KLCI added 0.1% to 1,779.45 on Friday. The 30-stock gauge is down 0.7% for the week, with Maxis's 4% drop contributing most to losses, according to QUICK Analytics available on N2N Connect. The telecom operator announced plans to raise 1.6 billion ringgit ($387 million) from sales of 300 million shares at 5.52 per share. On Friday, the stock rose 0.9% to 5.64 ringgit.
Plantation stocks fell in the five-day period after crude palm oil prices ended lower for a fifth week out of the last six. UOB Kay-Hian earlier this week downgraded the sector to "underweight" citing risk of "significant" crude palm oil (CPO) price weakness going into 2018.
Kuala Lumpur Kepong and IOI Corp fell 2% each this week. On Friday, Kepong lost 0.2% and IOI ended unchanged.
DRB-Hicom said on Friday it will sell a 49.9% stake valued at 460.3 million ringgit in its financially stressed car-making unit Proton Holdings to China's Geely Zhejiang. Last month, DRB-Hicom had signed a stake-sale pact with Geely that also included the sale of Proton's sports car unit Lotus. Trading in DRB-Hicom shares has been halted since Wednesday.
S P Setia slumped 6.1% Friday after the property developer announced plans for a rights issue and private placement of shares to raise about 3.2 billion ringgit to finance a deal to buy sister company I&P Group.
Jaycorp rallied 8.8% on Friday after the furniture-maker said fiscal third-quarter net profit jumped 66% and revenue rose 14%.
Comintel Corp. slumped 15% after the communication-equipment maker said fiscal first-quarter net profit declined 53%. Revenues fell 15.8%.
Singapore's FTSE Straits Times Index fell 0.2% to 3,209.47 on Friday, ending the week with a loss of 0.7%.
Global Logistic Properties closed 5.3% lower on Friday. The warehouse-operators shares plunged more than 10% intraday following a report by the Financial Times that its preferred bidders had backed out of a potential deal to buy the company. The stock pared some losses when it resumed trading after the company said it remains in talks with shortlisted bidders and that "directors with a conflict or a potential conflict of interest recused themselves from decisions relating to review." The stock lost more than 4% this week for its worst weekly performance in more than a year.
Genting Singapore slipped 1.8% on Friday, extending losses for the week to 6.2%. Deutsche Bank reportedly downgraded the leisure and hospitality major earlier this week. The stock still remains up 18% so far this year.
Singapore developer UOL Group fell 1% on Friday after announcing a share-swap deal with Haw Par Corp, which will allow UOL to raise its stake in United Industrial Corp. to just below 49%. The move gives UOL greater control of UIC, a major landlord in the city-state's central business district. Under the agreement UOL will issue 27.27 million new shares to Haw Par for 60 million UIC shares owned by Haw Par. Shares of Haw Par fell 1% on Friday, and UIC slipped 1.2%. Trading in UOL was halted Wednesday and Thursday.
- By Kevin Lim and Nimesh Vora; firstname.lastname@example.org; +65 6331 6250
- Edited By Suzannah Benjamin
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