Morning Coffee - 13 Jun 2012

MARKET ROUNDUP (Source Bloomberg)

U.S. Stocks Gain Amid Speculation Of More Fed Stimulus: amid speculation the Federal Reserve will take steps to stimulate the economy and after the European Central Bank endorsed a plan to guarantee bank deposits. The S&P 500 advanced 1.2 percent to 1,324.18, after briefly erasing gains following Fitch Ratings’ downgrade of 18 Spanish banks. The Dow Jones Industrial Average increased 162.57 points, or 1.3 percent, to 12,573.80. Trading volume for exchange-listed stocks in the U.S. was about 6.2 billion shares, 8.6 percent below the three-month average.

European Stocks Rise For First Time In Three Days: on speculation that the Federal Reserve will opt for more stimulus, outweighing a surge in Spanish borrowing costs to a euro-era record. The Federal Open Market Committee holds its next policy meeting on June 20. France’s CAC 40 climbed 0.1 percent, the U.K.’s FTSE 100 added 0.8 percent and Germany’s DAX increased 0.3 percent.

Oil Rises From Eight-Month Low On Stimulus Speculation: On the New York Mercantile Exchange, crude for July delivery settled at $83.32 a barrel, gaining 62 cents, or 0.75 percent. Federal Reserve Bank of Chicago President Charles Evans said he would support a variety of measures to generate faster job growth. Oil supplies fell the most in almost five months last week as refineries boosted output, a government
report may show tomorrow.

CORPORATE NEWS

MAS’ RM2.5b sukuk fully subscribed: has received a boost in its fund-raising exercise when its RM2.5 billion Perpetual Junior Sukuk Programme, which was issued yesterday, was fully subscribed by local institutions.Group CEO Ahmad Jauhari Yahya said the first tranche of RM1 billion was taken up by pension fund Kumpulan Wang Persaraan (Diperbadankan) or KWAP.

MBSB sees RM500-RM600m disbursement from Islamic offering each month: Yesterday, MBSB signed a four-year licensing agreement with Idottv Sdn Bhd, a subsidiary of Sedania Corp Sdn Bhd, for the As Sidq system for the Personal Financing-i product. The As Sidq will enable MBSB to correspond with customers using SMS as a primary mode for Akad agreement and ultimately minimise the turnaround time in the disbursement of financing.

Cepco buys more Inch Kenneth shares: Concrete Engineering Products Bhd (Cepco) has been accumulating shares in Inch Kenneth Kajang Rubber Plc lately to raise its stake in the plantation and property group to 13.19% stake or 55.51 million shares.Yesterday, it acquired 55,200 Inch Kenneth shares from the open market for RM31,740, or 57.5 sen each.

-SunBiz

Edaran Tan Chong will unveil new Nissan model by Q4: will introduce a new powerful and exciting Nissan model, the Nissan Almera, or Nissan Sunny as it was known earlier, in the last quarter of this year. The Almera will compete in one of the largest segments of the passenger car market with almost about 40 per cent market share.

MRT receives three bids to supply rolling stocks: The companies were Changchun Railways Vehicle Co Ltd, Siemens SMH Rail Consortium and CSR Zhuzhou Electric Locomotive Co Ltd

Btimes

Bank Negara keeps key interest rate unchanged: will maintain its key benchmark interest rate at 3% due to robust domestic demand unless the country's export growth is affected sharply by global developments, including the eurozone sovereign debt crisis.

Production of natural rubber down in April: fell by 4,569 tonnes (7% year-on-year) to 60,888 tonnes. Compared with March, production fell by 6,488 tonnes (9.6% month-on-month). According to the Statistics Department, the level of stocks in April was 118,214 tonnes, which meant a decrease of 6.4% year-on-year and 17.2% month-on-month.

UEM Land’s dividend policy: will be adopting a dividend policy of a payout of 20% to 40% of the group’s consolidated realised profit after tax and minority interests. The dividend policy was subject to, among others, the availability of distributable reserves and adequate free cash flow from operations.

-StarBiz

Source:Jupiter Securities Research 13 June 2012