Morning Coffee - 30 July 2012

MARKET ROUNDUP (Source Bloomberg)

U.S. Equity Futures, Euro Drop On Concern Of Economic Slowdown: signaling the Standard & Poor’s 500 Index may trim last week’s advance, and the euro weakened as confidence among South Korean manufacturers fell to a three-year low and economists said the American jobless rate remained above 8 percent in July. The S&P 500 advanced 1.7 percent to 1,385.97 last week, rising the most since June and extending its gain for the year to 10 percent. The Dow Jones Industrial Average climbed 253.09 points, or 2 percent, to 13,075.66. Its three-week rally was the longest streak since January.

European Stocks Climb For An Eighth Week; Santander Jumps: as German Chancellor Angela Merkel and French President Francois Hollande joined European Central Bank President Mario Draghi in promising to do everything to protect
the euro. The DAX gained 1.6 percent, FTSE Index added 54.05 points, or 1 percent and CAC added 2.3%.

Oil Trades Near Week High Before Central Banks Meet On Economy: on speculation that U.S. and European policy makers may act to boost growth. Oil for September delivery was at $90.18 a barrel, up 5 cents, in electronic trading on the New York Mercantile Exchange at 9:39 a.m. Sydney time. The contract climbed 0.8 percent to $90.13 on July 27 for a fourth day of gains and the highest close since July 20. Prices are up 6.1 percent this month.

CORPORATE NEWS

All eyes on Asia Media after strong showing: Much of the interest in Amedia stems from its plans to transfer its listing status to the main board from the ACE Market. For the record, Amedia had posted an aggregate audited consolidated after-tax profit of RM28.65 million over the past three financial years, which makes it eligible to seek an upgrade in its listing status.

MRCB in line for RM1b MRT job: MRCB, which is 42 per cent owned by the Employees Provident Fund, also won a RM1.33 billion contract for the Ampang light rail transit (LRT) extension project in August 2011. The MRT contract is expected to boost MRCB's existing order book to more than RM2.5 billion.

Btimes

Palm oil prices seen to trend lower this week: on concerns that the lingering European debt crisis will dampen demand growth from major economies, dealers said. Malaysia's palm oil exports fell 14.3% and 18.6% for the July 1 to 25 period compared to the same period a month ago, according to cargo surveyors Intertek Testing Services and Societe Generale de Surveillance respectively.

CMS Cement says will not raise price: Sarawak’s sole cement producer and manufacturer, will not raise the price of cement despite recent reports of a nationwide cement price hike, Cahya Mata Sarawak Bhd. CMS had always remained
committed to the state’s socio-economic growth and would not increase its prices although cement production in Sarawak posed a logistical challenge due to terrain, raw materials and geographical population spread.

BizTheStar

Source:Jupiter Securities Research 30 July 2012