Key Interest Rate Unchanged At 3%- Bank Negara
Leaving borrowing costs unchanged again, this marked Bank Negara’s seventh consecutive meeting where it has left its overnight policy rate unchanged at three percent. The central bank committee concluded that considerable uncertainties continue to be apparent in the global economic and financial environment. The central bank expects domestic demand to continue to be the anchor of growth for the economy, with strong investment activities mainly led by domestic-oriented industries, the oil and gas sector and steady progress in the construction of infrastructure projects. On the external outlook, the central bank noted that its latest data pointed to slower economic activity and more challenging growth prospects.
Significance: In view of the seventh consecutive unchanged rate, Bank Negara’s policy statement certainly stems from a dovish point of view, suggesting no hurry to change its monetary course unless domestic conditions turn ugly. This could mean no changes in interest rates at least till year end.
Hock Seng Lee Bags UiTM Campus Contract Worth RM291m
Marine and civil engineering and building construction company, Hock Seng Lee, has won a contract worth RM291 million to design and build an educational institute in Mukah, Sarawak. Done for Concessionaire KP Mukah Development, the contract work is for the Universiti Teknologi Mara campus facility. Expected to be completed in the third quarter of 2015, the work includes sand filling, piling, civil infrastructure works, specialist campus buildings and mechanical and electrical works. Covering 24.9 hectares, the proposed campus will include themed walkways and five blocks of five-storey apartment.
Significance: The job will effectively bring the value of Hock Seng Lee’s projects in hand to RM2 billion. The job will likely give its earnings a boost and contribute positively to its earnings for the year right through to the third quarter of 2015.
IHH Healthcare IPO Experiences Over Subscription By 60 Times
60 Times. That’s the orders received for Asia’s biggest hospital operator IHH Healthcare when it sold US$2 billion shares to institutions. Having filed its IPO prospectus on 3 July, IHH plans to set a final price for the offering on 12 July. 62 percent of the IPO has been reserved for cornerstone investors who must hold the shares for a minimum of 180 days. According to the sales document, these names include Government of Singapore Investment Corp, Fullerton FundManagement Co and Usaha Tegas. Some of the cornerstone investors have asked to add to their allocated position by bidding for shares in the open institutional portion.
Significance: Given the sentiment fuelling the tremendous demand of IHH’s shares despite of the uncertainty surrounding the global economy, it is probable that IHH’s could price at the high end of its marketed range.