Morning Coffee - 26 July 2012

MARKET ROUNDUP (Source Bloomberg)

S&P 500 Erases Advance As Apple’s Plunge Offsets Banks: as a rally in bank and industrial shares wasn’t enough to overcome disappointing results at Apple (AAPL)Inc. and an unexpected drop in new home sales. About five stocks rose for every four falling on U.S. exchanges. The S&P 500 slid less than 0.1 percent to 1,337.89, after gaining 0.4 percent earlier. The benchmark gauge has lost 2.8 percent in four days. The Dow Jones Industrial Average rose 58.73 points, or 0.5 percent, to 12,676.05. Volume for exchange-listed stocks in the U.S. was 6.6 billion shares, or about in line with the three-month average.

European Stocks Drop As U.K. GDP Shrinks: as reports showed the U.K. economy shrank the most in three years last quarter and U.S. new-house sales unexpectedly dropped last month. The U.K.’s FTSE 100 Index fell less than 0.1 percent,
while France’s CAC 40 Index gained 0.2 percent. Germany’s
DAX Index climbed 0.3 percent.

Oil Rises As Equities Rally, Euro Rises Against Dollar: after financial shares led U.S. equities higher and the euro advanced against the dollar for the first time in six days. Crude oil for September delivery advanced 47 cents to $88.97 a barrel on the New York Mercantile Exchange. Futures touched $86.84, the lowest intraday level since July 16. Prices are down 10 percent this year.

Scomi closer to completing its revamp: Scomi, together with Standard Chartered Private Equity Ltd and Fuji Investments I, was selling the stakes in Scomi Oilfield Ltd (SOL) and Scomi Sosma Sdn Bhd to Scomi Marine for about RM1.02 billion and RM6.71 million, respectively. The group was also selling its 48 per cent stake in Scomi KMC Sdn Bhd to Scomi Marine for RM769,911,000. Upon completion of the SOL disposal, Scomi's stake in Scomi Marine will increase from 42.76 per cent to 65.65 per cent, triggering a mandatory general offer for the rest of the
shares.

AirAsia carries 13pc more passengers in Q2: The budget carrier said in a statement that the capacity increased by 13 per cent to 10.462 million seats, while load factor was 79 per cent compared to 80 per cent last year. AirAsia added seven aircraft, raising its fleet to 100. The airline strengthened its Malaysian operations in the domestic and international market by increasing frequencies on Kuala Lumpur-Terengganu, KLLangkawi, KL-Vientiane, Langkawi-Singapore, KL-Saigon and utilising one new aircraft that was delivered end-May 2012.

Btimes


TAS Q4 net profit surges on sale of harbour tug: net profit in its fourth quarter ended May 31 almost tripled to RM7.12mil from RM2.57mil a year ago, although revenue was 16.03% lower at RM33.42mil against RM39.79mil previously. The Sibubased shipbuilder's earnings per share was 4.02 sen compared with 1.43 sen in the previous corresponding period. It declared a dividend of 1.5 sen per share.

MAS sees more revenue: is eyeing an additional US$100mil (RM320mil) in interlining passengers' revenue a year through the induction of the national carrier into the oneworld alliance early next year. Oneworld is one of the world's three largest global airline alliances, with its central management team,
Oneworld Management Company, based in New York.The alliance has an incomparable route network, covering more than 800 destinations in 150 countries, with MAS adding another 15 places and two countries when it joins the airline grouping next year. The oneworld alliance brings together 11 of the biggest and best names in the global airline business and 20 affiliated carriers.

BizTheStar

Source:Jupiter Securities Research 26 July 2012