FW: AmBank Research - Telecommunication: Pressure cooker for mobile and fixed broadband NEUTRAL, 28 Jun 2018

 

 

SECTOR FOCUS OF THE DAY

Telecommunication: Pressure cooker for mobile and fixed broadband   NEUTRAL

 

In our view, near- to medium-term revenue growth outlook remains weak given the likelihood of further intensification in the mobile wars, with Digi and Celcom likely to raise the ante against both U Mobile’s plan and unifi Mobile’s unlimited mobile data/voice/SMS pricing plans. As U Mobile and unifi Mobile wrestle for new customers on the unlimited mobile data arena, prospects will deteriorate for incremental service revenue accretions in the sector.

 

Maintain NEUTRAL call given the continued intense competition in both the mobile and fixed broadband markets. Our top BUYs remain Axiata and TM due to the game-changing merger possibility which will significantly enhance their earnings and market share trajectory while Maxis and Digi are HOLDs due to the resistance in gaining traction in revenue growth amid potential loss in competitive advantage under a re-energised Axiata-TM brand. 

 

Others:

N2N Connect: Reshaping trading environment with blockchain                  BUY

Yinson Holdings: Cruising on a tail wind                                                                  BUY

Gamuda: 9MFY18 core net profit grows 21% YoY                                               HOLD

 

 

NEWS HIGHLIGHTS

Property Sector: Unsold residential, SoHo units at RM22¬bil

Country Heights: Plans to raise RM1b ‘war chest’

Alam Maritim Resources: Navigates through choppy waters

T7 Global: We have not got any job from ECRL project

 

 

 

 

DISCLAIMER:

The information and opinions in this report are prepared by AmInvestment Bank Bhd. The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of AmInvestment Bank Bhd. Bhd may from time to time have a position in or with the securities mentioned herein. Members of the AmBank Group Bhd and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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FW: 20180628 AmBank FX Daily Outlook

 

 

Highlights of today’s AmBank FX Daily Outlook as follows:-

Dollar surges as US-China tensions take a breather MYR to fluctuate in the range of 4.0240 – 4.0320 against US dollar Key Watch: (i) US Fed Bullard & Bostic Speech; (ii) EU ECB General Council Meeting & Economic Bulletin; (iii) UK BoE Haldane Speech; (iv)Indonesia Interest Rate Decision; (v) 1Q US GDP & PCE Prices; (vi) Jun EU Business Confidence, Services & Economic Sentiment; (vii) Jun Germany CPI & Jul Consumer Confidence

 

Best regards,

FX Research & Strategy

AmBank Research, AmBank (M) Berhad

+603 2036 2255 (DL) +03 2031 7218 (Fax)

Level 15, Bangunan AmBank Group, 55 Jalan Raja Chulan, 50200 Kuala Lumpur

 

 

 

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FW: Fixed Income Daily Pulse - 27 June 2018

 

 

Apologies for the delay.

Good Morning ,
Wednesday’s trade recap by our trading desk:-
In the local bond space, market interests were focused on the belly of the curve in both MGS and GII space. Yields however ended the day largely unchanged as local govvies mostly traded sideways throughout the day. Prices remained well bided even as Ringgit continued its weakening bias to close the day at 4.0300. There was a concern of a spillover effect into Asean currencies due to Chinese Yuan weakness. UST10y yields eased 3bps lower to 2.85% at the time of writing due to ongoing threat of the trade war.
Malaysia Government Bonds Benchmark Issues MGS Closing Level (%) Change (bp) Volume (RM m) 3-yr 3.620 - 40 5-yr 3.850 - - 7-yr 4.060 +1.0 60 10-yr 4.210 -3.5 75 15-yr 4.640 - - 20-yr 4.895 - - 30-yr 5.000 - - Source: BondStream, AmBank *Closing levels are based on traders’ quotes.	Interest Rate Swap Closing Rates IRS Closing Yield (%) Change (bp) 1-yr 3.725 - 3-yr 3.795 - 5-yr 3.883 1.2 7-yr 4.000 0.5 10-yr 4.185 2.5 Source: Bloomberg, AmBank

 

Best regards,

Fixed Income Research & Strategy

AmBank Research, AmBank (M) Berhad

+603 2036 2255 (DL) +03 2031 7218 (Fax)

Level 15, Bangunan AmBank Group, 55 Jalan Raja Chulan, 50200 Kuala Lumpur

 

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FW: CIMB Fixed Income Daily - 28 Jun 2018 - UST rally ought to support EM Asia bonds today

 

 

US Treasuries gained with yields down about 5bps including the longer tenors. News that Trump remain serious to take action to limit investments from China but by using existing tools caused some net selling at the start of US session. However, UST remained strong via safe haven demand. There was also signal that foreign investors were buying up US Treasuries to hedge against their local currencies’ weakness. PBOC announced cut in reserve requirement rate starting 5 July whilst setting its yuan fixing weaker to 6.5569 mid-point or weakest in six months.

 

Another emerging risk is threat of a snap election being called in Germany. Rally in UST but USD index backing away from 95.50 amid ongoing headline risks ought to support EM Asia bonds today, in our opinion.

 

The Treasury Department sold $36b of the 5T but demand was mildly better at 2.55x bid-cover (2.48x average past 12 auctions) at high yield 2.719% (2.262% past 12 auctions). Indirect bidders, which include foreign central banks, bought a lower 62.0% of the auction (63.6% past 12 auctions).

 

Malaysia’s government bonds saw heavier trading but the day’s session ended on the weaker side, coming alongside generally weak sentiment in the EM space on Wednesday. Heavily traded included MGS 11/27 but which closed weaker at 4.35% up 6bps though there some late demand on the security after intraday saw 4.37% traded.

 

Today is tender closing for reopening of 15y GII (GII 06/33) worth RM3.5b. There was little interest and no trades for the paper along the weak secondary market yesterday. However, we’re hoping for decent demand at today’s tender. Current low inflation should add demand into longer-tenor MGS and GII, in our opinion. Last week, Malaysia reported headline inflation nudging up to 1.8% yoy in May (CIMB: +2.0% yoy, Bloomberg consensus: +1.8% yoy, Apr: +1.4% yoy), amid the low base in fuel inflation. In comparison, core inflation was unchanged at +1.5% yoy in May. Our CIMB economist says to account for downward consumer price adjustments resulting from the GST cut, the reintroduction of the sales and service tax (SST) in Sep, and curbed spillover effect from global oil prices to retail RON95 petrol and diesel prices, she is revising down CIMB’s 2018 headline inflation forecast from 2.6% to 1.3%, which is well below Bank Negara Malaysia’s policy target of 2-3%.

 

Asian dollar credits remained to see weak movement amid the global growth concerns. There also remained little action along the primary segment. Bloomberg reported only Korean National Oil Corp as the only issuer marketing USD bonds; it reportedly gave guidance for 5y FRNs at 3mL+90bps.

 

 

CIMB Treasury & Markets Research-Fixed Income

Tel: +603 2261 8557

www.cimb.com

Find us on Bloomberg at CIMR <Go> 

 

 

 

 

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FW: FI Research - Reopening of 15-year MGII

 

 

Dear Readers,   Highlights of the report as follow:-

The reopening of the 15-year MGII 06/33 with a size of RM3.5bil, recorded a strong bid-to-cover (BTC) ratio of 2.783 times. Average yield for this MGII is 4.778%, which sits within a slightly higher range as compared to the previous 15-year MGII auction, between 4.768% and 4.794%. At present, we found the 15-year MGII/MGS spread has narrowed down to 13.40bps from its one-year average of 16.66bps (Chart 1). The higher volatility in MGS with a standard deviation of 0.11 compared to the MGII’s 0.09 was largely induced by the external factors i.e. concerns over emerging market debt crisis due to Feds’ aggressive rate hike path added with trade tension. As the investors’ primary focus is whether US and China can avert a full blown trade war, the overall sentiment in both domestic and external front has been rather subdued.  The next tender to watch is the new issuance of the 30-year MGS 07/48. The last auction of such papers was the 30-year MGS in October 2017 which reported a 1.603 times BTC ratio.

 

Best regards,

Fixed Income Research & Strategy

AmBank Research, AmBank (M) Berhad

+603 2036 2255 (DL) +03 2031 7218 (Fax)

Level 15, Bangunan AmBank Group, 55 Jalan Raja Chulan, 50200 Kuala Lumpur

 

 

 

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FW: CIMB Market Musings - 28 Jun 2018 - 15y GII auction: Opportunities reveal demand

 

 

15y GII 06/33 issued at 4.794%. We saw the reissuance of the 15y GII 06/33 which saw a bid-to-cover (BTC) ratio of 2.783x. This tender had a large tender amount of RM3.5bn, comparable to the previous tender for the 15y GII in March.

 

Yields traded higher reflecting the recent shift up in the yield curve. The fall in the MGS and the MYR has taken its toll on the yield curve, pushing up rates across the board.  The average yield of this auction was at 4.778%. This compared to the previously traded yield of 4.724% for the security. The spread of the 15y GII will now sits at 45bps above that of the 10y GII. (It is currently 40bps for the conventional spread).

 

Investment opportunities reveal demand from investors. The current auction occurs in a period of lengthened risk sell down globally, further precipitated by concerns on a deterioration in the tariff battles currently playing out between the US and China. Despite these ongoing concerns, this auction saw a strong BTC of 2.78x, a level stronger than the 1.996x BTC seen in the March tender of a similar tenure. This could be signaling a pent up in demand among domestic investors especially considering the lackluster primaries in the local currency debt market. We would look forward to the upcoming 30y MGS to further reveal investor appetites especially in the longer end of the yield curve.

 

We remain upbeat on the MGS as a whole. The recent global volatility in yields and the rise in the USD have continued to remain a point of concern for investors in the region. The Malaysia’s CPI was reported within expectations at 1.8% yoy (1.5% mom) for the month of May on the back of pre-election spending and on the Ramadhan period. Expectations still remain of a reduction in the yoy CPI especially in light of the cancellation of the GST and its replacement with the SST on September. We remain upbeat on the MGS in the medium to long term (see our CIMB Fixed Income Navigator - 3Q 2018 - The Yield Direction Is Not As Simple As “Up” dated 19 June 2018), and maintain expectation for 10y MGS to move to 4.10% by 3Q2018. 

 

CIMB Treasury & Markets Research-Fixed Income

Tel: +603 2261 8557

www.cimb.com

Find us on Bloomberg at CIMR <Go>

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FW: Auction Results: GII 6/33 Reopening

 

 

Dear all,

 

Auction Results: GII 6/33 Reopening

• Solid bids. Today’s 15y GII 6/33 reopening auction garnered a strong bid/cover of 2.783x despite the larger-than-expected MYR3.5b size. Domestic real money and buy-and-hold investors were keen to participate in this primary offering in spite of the thin liquidity in secondary market as cheapened yields were appealing.
• WI was initially quoted wide at 4.85/70% but it then narrowed to 4.82/74% this morning before auction closed which is higher than where the 15y GII 6/33 was quoted at around 4.75/72% prior to the auction announcement two days ago.
• Successful yields averaged 4.778% and cut off at a high of 4.794%, well within the pre-auction WI range. The lowest successful yield result was 4.768%.
• Next scheduled auction is a new issue of 30y MGS 7/48 in a size of MYR3b, we estimate.

 

Bid to cover:            2.783x

Highest yield:           4.794%

Average yield:         4.778%

Lowest yield:           4.768%

Cut off:                   85%

 

 

Regards,

 

Winson Phoon, ACA

(65) 6231 5831

winsonphoon@maybank-ke.com.sg

 

Se Tho Mun Yi

(603) 2074 7606

munyi.st@maybank-ib.com

 

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FW: RHB | FIC Rates & FX Market Update - 28/6/18

 

 

 

28 June 2018

 

 

Rates & FX Market Update

 

 

No Backing Down on “Trade War” From the US Side

 

Highlights

 

¨    Global Markets: Trade tensions and risk aversion dominated markets once again following comments from Trump’s economic adviser Larry Kudlow who mentioned that the US President is maintaining his hard stance on trade. Treasuries rallied, 10y yield dropped -5.1bps d-o-d and the US Dollar appreciated across the board (against G10 and EM Asian currencies).

¨    AxJ Markets: Chinese May industrial profits climbed at a healthy pace of 21.1% y-o-y (YTD: 16.5%), rebuffing any imminent slowdown concerns at this juncture. However, the USDCNY surged past the 6.60 mark overnight, with investors fearful of an impending bear stock market, coupled with US officials’ affirmation of not softening towards China at this juncture. However, fixings came in stronger than expected, softly affirming PBoC’s desire to maintain stability to avoid a repeat of 2015/16; we eye a higher USDCNY over the medium term.

¨    The Sterling Pound is the currency that fell the most against the USD under our coverage. While the Dollar rose across the board, the speech by the Bank of England’s governor, Mark Carney, weighed further on the GBP. He expressed concerns about protectionism and the effects on global growth, and the emerging risks of disruption for financial firms with the Brexit. Such factors limit the opportunity for the central bank to raise interest rates this year; remain neutral GBP.

 

 

 

 

FW: Global Markets Daily: AXJs Weighed

 

 

AXJs Weighed Global Markets Daily by Saktiandi Supaat FX Research Risk appetite returned overnight after Trump came out in support of Treasury Secretary Mnuchin's proposal to use the Committee on Foreign Investment in the US (CFIUS) to scrutinise investments, including those from China, into sensitive sectors. This less controversial route was a relief to the markets that had feared extreme measures to restrict foreign investments in the US. This together with firmer oil prices on US pressure on allies to stop oil imports from Iran lifted the Dow ... Saktiandi Supaat     (65) 6320 1379     saktiandi@maybank.com.sg Leslie Tang     (65) 6320 1378     leslietang@maybank.com.sg Disclaimer This message is intended only for the use of the person to whom it is expressly addressed and may contain information that is confidential and legally privileged. If you are not the intended recipient, you are hereby notified that any use, reliance on, reference to, review, disclosure or copying of the message and the information it contains for any purpose is prohibited. If you have received this message in error, please notify the sender by return e-mail immediately and delete all its contents. If you wish to read Disclaimer in details, please click HERE. To unsubscribe or change preference settings, please click here to contact your representative.

FW: RHB | FIC Rates & FX Market Update - 27/6/18

 

 

 

27 June 2018

 

 

Rates & FX Market Update

 

 

Strong Singapore IP Anchored SGD against Regional FX

 

Highlights

 

¨    Global Markets: Markets were once again dominated by trade tensions and geopolitical news flows. On the latter, US President is pressing its allies to stop Iranian oil imports pushing Brent higher despite the Saudi increase output. While in theory rising inflationary pressure should push US Treasury yields higher, trade tensions kept yields in balance and Treasuries closed the day flat. On FX markets, the USD rose across the board; the EURUSD closed -0.46% lower since ECB Lane (Governor of the Central Bank of Ireland) said that inflation is rising but below its target.

¨    AxJ Markets: Over in Singapore, IP surged 11.1% y-o-y (consensus: 10.0%), driven by pharma and petrochemicals, and continues to showcase Singapore’s economic strength in these areas. SGD outperformed most regional currencies overnight on the solid print, although global trade tension persists which continue to generate headwinds for the export-dependent nation; stay neutral SGD.

¨    CNY fell c.0.6% against the USD overnight, extending its losing streak against the Greenback as doubts over the resiliency of the Chinese economy on any major trade war with the US surfaced. PBOC weakened its fixing by 0.6% to 6.5569, although markets are looking for an even weaker Yuan over the coming days, especially as PBoC remains on easing mode; stay neutral CNY over the medium term.

 

 

 

 

FW: CIMB Fixed Income Daily - 27 Jun 2018 - Bonds still pressured by trade concerns; UST rangebound overnight

 

 

CIMB Fixed Income Daily - 27 Jun 2018 - Bonds still pressured by trade concerns; UST rangebound overnight 

 

US Treasuries closed rangebound despite concerns over global trade whilst UST players took on $34b auction of 2y notes. In China earlier on Monday, president Xi sounded tough on trade saying “in the West you have the notion that if somebody hits you on the left cheek, you turn the other cheek. In our culture we punch back”. Atlanta Fed president Raphael Bostic said if trade concerns escalate he may vote against a fourth hike this year.

 

Tuesday’s Treasury auction garnered bid against cover of 2.73x but which is lower against average of 2.85x in the prior 12 2T auctions. High yield was 2.538% which is higher than 1.879% average past 12 auctions but lower than 2.590% for the 2T auction last month. Indirect bidders which includes foreign central banks ended up with 42.3% of the amount sold but lower than 47.1% average prior 12 auctions. Sale of 5T amounting to $36b is up on Wednesday.

 

Malaysian government bonds saw heavier trading at RM2.37b volume. However, interest was more towards off-the-runs for a second consecutive day especially from domestic players, for maturities up to 2023. Meanwhile, the central bank released information for upcoming reopening of the 15y GII (GII 06/33) amounting to RM3.5b which we think is slightly on the high side. WI was 4.85/70%. We noted GII 10/35 was traded last at 5.00% which is on the more attractive side.

 

Current low inflation should add more demand into longer-tenor MGS and GII, in our opinion. Last week, Malaysia reported headline inflation nudging up to 1.8% yoy in May (CIMB: +2.0% yoy, Bloomberg consensus: +1.8% yoy, Apr: +1.4% yoy), amid the low base in fuel inflation. In comparison, core inflation was unchanged at +1.5% yoy in May. Our CIMB economist says to account for downward consumer price adjustments resulting from the GST cut, the reintroduction of the sales and service tax (SST) in Sep, and curbed spillover effect from global oil prices to retail RON95 petrol and diesel prices, she is revising down CIMB’s 2018 headline inflation forecast from 2.6% to 1.3%, which is well below Bank Negara Malaysia’s policy target of 2-3%.

 

In Indonesia, with risk-off mode still in play the Rupiah and IndoGBs remained under pressure. Though we noted defensive bids there was also foreign outflows mostly on non-benchmark bonds with maturity 5-10y. Market volume leapt to IDR 29.5 trillion whilst trade concentration stayed at the belly and the tail of the curve.

 

CIMB Treasury & Markets Research-Fixed Income

Tel: +603 2261 8557

www.cimb.com

Find us on Bloomberg at CIMR <Go> 

 

 

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FW: [Maybank IB] Today's Research - Malaysia

 

 

FEATURED CALLS Malaysia | Sime Darby Property Value emerges Wei Sum Wong   COMPANY RESEARCH Yinson Holdings | 1QFY19 results preview Thong Jung Liaw MACRO RESEARCH Malaysia | KLFIN Index: Potential Short-Term Rebound Nik Ihsan Raja Abdullah NEWS Outside Malaysia Other News COMPANY RESEARCH Malaysia Rating Change Sime Darby Property (SDPR MK) by Wei Sum Wong Share Price: MYR1.20 Target Price: MYR1.53 Recommendation: Buy Value emerges Recent weakness in SDPR's share price has created a buying opportunity, to accumulate shares in this land-rich yet strong balance sheet company. The sale of Battersea Power Station (BPS) commercial spaces will be concluded in July 2018 and SDPR is now working with the Negeri Sembilan State Government for its MVV land. We lower earnings forecasts but maintain MYR1.53 RNAV-TP (on 0.55x P/RNAV). We upgrade SDPR to BUY. FYE Jun (MYR m) FY16A FY17A FY18E FY19E Revenue 2,590.7 2,564.4 3,183.5 2,869.6 EBITDA 1,033.1 556.2 1,543.0 1,033.0 Core net profit 749.1 607.9 983.1 705.1 Core EPS (sen) 11.0 8.9 14.5 10.4 Core EPS growth (%) 33.6 (18.8) 61.7 (28.3) Net DPS (sen) 0.0 0.0 5.8 3.7 Core P/E (x) na na 8.3 11.6 P/BV (x) na na 0.8 0.8 Net dividend yield (%) na na 4.8 3.1 ROAE (%) 18.2 10.7 12.2 7.0 ROAA (%) 6.2 4.5 7.1 5.0 EV/EBITDA (x) na na 5.8 8.4 Net debt/equity (%) 22.4 1.4 5.8 2.6 Wei Sum Wong    (603) 2297 8679    weisum@maybank-ib.com Malaysia Results Preview Yinson Holdings (YNS MK) by Thong Jung Liaw Share Price: MYR4.65 Target Price: MYR4.60 Recommendation: Buy 1QFY19 results preview We expect 1QFY1/19 results, due this week, to be in line, on softer YoY earnings. We remain upbeat on Yinson's business direction, its ability to create value, steady earnings growth, a visible tender pipeline and cashflow strength. Our estimates currently exclude the FPSO FEP win. Our unchanged TP of MYR4.60 is SOP-based. Maintain BUY. FYE Jan (MYR m) FY17A FY18A FY19E FY20E Revenue 764.2 910.2 1,113.4 1,114.1 EBITDA 283.8 645.0 771.4 771.7 Core net profit 219.5 341.6 294.0 279.2 Core EPS (sen) 20.6 31.4 26.9 25.5 Core EPS growth (%) 26.8 52.6 (14.3) (5.1) Net DPS (sen) 16.8 10.0 10.0 10.0 Core P/E (x) 14.1 11.3 17.3 18.2 P/BV (x) 1.3 1.5 1.8 1.7 Net dividend yield (%) 5.8 2.8 2.2 2.2 ROAE (%) 8.5 11.6 10.8 9.6 ROAA (%) 3.9 5.3 4.4 4.0 EV/EBITDA (x) 21.4 10.8 9.3 8.9 Net debt/equity (%) 114.7 90.1 72.9 57.3 Thong Jung Liaw    (603) 2297 8688    tjliaw@maybank-ib.com MACRO RESEARCH MY: Traders' Almanac KLFIN Index: Potential Short-Term Rebound by Nik Ihsan Raja Abdullah Technical Research FBMKLCI fell for the second day in a subdued session. At day's end, the benchmark fell 2.24pts to 1,675.85. Declines were led by RHBBANK, DIGI, and TM. Market breadth remained negative with losers outpacing gainers by 547 to 264. A total of 1.87b shares worth MYR1.93b changed hands. The recovery in oil price along with positive overnight US markets could lift sentiment today. We expect bargain hunting activities to pick up. Nik Ihsan Raja Abdullah    (603) 2297 8694    nikmohdihsan.ra@maybank-ib.com Tee Sze Chiah     (603) 2082 6858     szechiah.t@maybank-ib.com NEWS Outside Malaysia: U.S: Consumer confidence cools on drop in optimism for economy. U.S. consumer sentiment eased in June as Americans became less optimistic for the economy and income growth, according to figures from the New York-based Conference Board. Confidence index fell to 126.4 from 128.8 in May (prev. 128). Present conditions measure little changed at 161.1 after 161.2. Consumer expectations gauge fell to 103.2, lowest in 2018, from 107.2. (Source: Bloomberg) U.S: Trump signals he favors Mnuchin's path to shield tech from China. President Donald Trump signaled he may take a less confrontational path toward curbing Chinese investments in sensitive American technologies, potentially relying on a U.S. committee that scrutinizes foreign acquisitions for national security risks. Trump made remarks at the White House that appeared to align with Treasury Secretary Steven Mnuchin's approach, in an internal administration debate over how to protect U.S. intellectual property from China. Trump directed the Treasury Department in March to weigh options for restricting Chinese investment in American companies. In May, he said the U.S. "will implement specific investment restrictions and enhanced export controls for Chinese persons and entities related to the acquisition of industrially significant technology." (Source: Bloomberg) U.S: Home prices in 20 cities continued to advance at a solid, albeit a touch slower, pace in April, reflecting lingering inventory shortages, according to S&P CoreLogic Case-Shiller data. 20-city property values index increased 6.6% YoY, after rising 6.7% YoY. National home-price gauge advanced 6.4% YoY after 6.5%. Seasonally adjusted 20-city index rose 0.2% MoM (est 0.4%), the smallest gain since July. The report indicates a respite in the steady acceleration in property values since the end of 2014. Seattle, San Francisco and Las Vegas led the gain among cities posting a year-over-year advance in April. Price gains in this recovery have been supported by healthy demand amid a strong labor market and improving consumer finances. (Source: Bloomberg) S. Korea: Consumer confidence fell to the lowest in more than a year as a slowdown in hiring and tensions between the U.S. and China clouded the economic outlook. The Bank of Korea's monthly consumer sentiment index dropped to 105.5 in June from 107.9 the previous month, according to a statement by the central bank. The decline was the biggest since November 2016, when the country was mired in a political scandal that led to the ouster of the then president. The drop comes as China and the U.S. -- South Korea's two biggest trade partners -- escalate threats of tariffs and other protectionist measures. A slowdown in global trade would be a blow for the South Korean economy. (Source: Bloomberg) Other News: Oil & Gas: Malaysia resumes exports of Bentara crude after output rises. Malaysia has resumed exports of Bentara crude oil after a hiatus as field upgrading increased oil output from the field, two industry sources said on Tuesday. Malaysia's state-owned Petroliam Nasional Bhd, or Petronas, is about to finalise a deal to sell 150,000-barrel cargo of Bentara crude for Aug. 15 to 19 loading on Tuesday after selling 110,000 barrels of the grade last month, one of the sources said. "The field's production is currently at 150,000 barrels per day (bpd), up from 50,000 bpd in 2015, the source said, declining to be named. (Source: The Star) T7 Global: Keen to proceed with ECRL project despite lower cost. The group is keen on continuing to participate in the controversial East Coast Railway Line project even if it is to be implemented at a substantially lower cost, as long as the group "can make a decent profit" from it, its executive deputy chairman Tan Sri Tan Kean Soon said today. Last night, Prime Minister Tun Dr Mahathir Mohamad said the Pakatan Harapan-led government will proceed with the ECRL if it can obtain more favourable terms through renegotiation and if the project's cost is brought down from the current MYR55b. (Source: The Edge Markets) MSM Malaysia: Eyes Africa and China as new export markets. The country's leading refined sugar producer, is now looking to penetrate the African and Chinese markets to make full use of the new production capacity that will come on stream once its new sugar refinery in Tanjung Langsat, Johor, commences operations next month. MSM, which currently commands about two-thirds of the domestic refined sugar market, is now studying options on how to enter the two markets so that it does not "financially burden MSM" unnecessarily, according to its group's chairman Datuk Wira Azhar Abdul Hamid. 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