The Star Online: Business
The Star Online: Business |
- Maersk plans to move away from shipping
- FBM KLCI starts the week lower
- Barclays denies buying its way to win Saudi licence
| Maersk plans to move away from shipping Posted: 18 Nov 2012 06:31 PM PST COPENHAGEN - Danish oil and shipping group A.P. Moller-Maersk will not invest significantly in its shipping business over the next five years and will focus on its oil, drilling rigs and ports, the Financial Times reported on Monday. "We will move away from the shipping side of things and go towards the higher profit generators and more stable businesses," Maersk Chief Executive Nils Andersen told the newspaper. "What we are going to do over the next five years, we are not going to invest significant amounts in Maersk Line. We have sufficient capacity to grow in line with the market." Maersk Line, the company's container shipping unit, has struggled with profitability due to the global economic slowdown and an oversupply of vessels that could intensify next year. The subsidiary is a barometer of world trade as its fleet carries more than 15 percent of all sea-borne containers. Ship owners are raising rates and cutting costs to cushion falling volumes as global trade slows. A rebound in container rates returned Maersk Line to profit in the third quarter after four successive periods of losses, although Andersen warned earlier this month that the recovery does not mean there is no chance of a relapse for prices on some routes. "When we have taken that shift, probably more than 50 percent of our capital will be tied in these three other businesses," the FT quoted Andersen as saying, referring to the oil, drilling rigs and ports divisions. "Maersk Line will then account for 25-30 percent of capital. We will have four businesses of almost equal size." - Reuters |
| FBM KLCI starts the week lower Posted: 18 Nov 2012 06:25 PM PST KUALA LUMPUR: The FBM KLCI started the week lower today, dragged down by BAT and Axiata. At 9.05am, the FBM KLCI was down 5.96 points to 1,623.32. Turnover was 17.70 million shares valued at RM7.9mil. There were 58 gainers, 52 losers and 80 counters unchanged. HwangDBS Vickers Research said the FBM KLCI would likely stage a technical rebound today following a decline of 46.4-point or 2.8% over the last nine market days. "On the chart, the benchmark index may attempt to overcome the support-turned-resistance line of 1,635 ahead," it said. Reuters reported that US President Barack Obama will meet with congressional leaders in the week after Thanksgiving to discuss the "fiscal cliff" of expiring tax cuts and spending reductions. It said economists had warned that the sudden shock of austerity, combined with consumers putting more of their dollars toward taxes instead of shopping, could plunge the United States back into a recession. Although Wall Street ended moderately higher on Friday, it still recorded losses for the week, with the Dow Jones industrial average standing at 12,588.31, the Standard & Poor's 500 Index at 1,59.88 and the Nasdaq Composite Index at 2,853.13. Among stocks that might see movements today are Malaysian Resources Corp Bhd (MRCB) and Guan Chong. A news report said MRCB and DMIA Sdn Bhd have jointly submitted a plan to build a RM3bn railway line for freight trains. While Guan Chong's third quarter results came in below expectations at RM27.4mil as margins were eroded by lower selling prices. At Bursa Malaysia, CIMB shed six sen to RM7.58, BAT down RM1.32 to RM58.42 and Axiata lost four sen to RM5.96. RHB Cap rose nine sen to RM7.69 while YTL Power and Tenaga both edged up one sen each to RM1.54 and RM6.95. Among the plantations, Kuala Lumpur Kepong declined 14 sen to RM20.60 and Genting Plantations shed 12 sen to RM8.50. |
| Barclays denies buying its way to win Saudi licence Posted: 18 Nov 2012 05:47 PM PST DUBAI: Barclays did not make any "illegal payment" to win a banking licence in Saudi Arabia, the bank said in a statement in response to a newspaper report said US authorities were looking at whether improper payments were made. The Financial Times had reported on Nov 10 that the United States Department of Justice (DoJ) was investigating whether Barclays made any improper payments to win a banking licence in Saudi Arabia to operate a wealth-management arm and investment bank, citing people familiar with the investigation. "The board of directors of Barclays Saudi Arabia and its executive management takes the issue raised by the media very seriously," the bank said on Saturday. "Barclays Saudi Arabia confirms that it did not make any illegal payment to the CMA (Capital Markets Authority) or any of its officials regarding the granting of Saudi licence." "Barclays SA will continue to conduct business in the kingdom in accordance with the highest professional standards and is fully committed to the development of Saudi Arabia's financial market," the bank said. Barclays was licensed to start business in Saudi Arabia in August 2009 and given final approval to begin securities trading in May 2010 after the Saudi regulator said the bank had met all requirements. The CMA said last week that it was not aware of any investigations and had not received any inquiries from regulatory bodies on the issue. Barclays is facing a series of investigations into its business, including one by Britain's Serious Fraud Office and Financial Services Authority which are scrutinising payments made by Barclays to Qatar as part of a 2008 fundraising. The bank has come under scrutiny regarding manipulation of benchmark interest rate Libor and could face fines over an investigation into the manipulation of power prices the United States. Barclays Saudi Arabia is a closed joint stock company regulated by the CMA. - Reuters |
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