MO R N I N G C O F F E E - Wednesday, April 25, 2012

U.S. and European market roundup

The Dow and the S&P 500 rose on Tuesday after strong earnings and upbeat outlooks from big manufacturers like 3M Co (MMM), but Apple's slide ahead of its results drove the Nasdaq down. Dow gained 0.58%, S&P500 rose 0.37% but Nasdaq slipped 0.30%. Many analysts have cautioned that a correction is near, given the stock market's sharp rally since October. The S&P 500 is up 9.1% so far for the year.

The earnings season so far has been stronger than analysts expected. With results in from 153 S&P 500
companies, more than three-fourths have topped analysts' estimates, according to Thomson Reuters Proprietary Research. Economic data took a backseat to earnings news. U.S. single-family home prices rose for the first time in 10 months in an encouraging sign the battered sector was starting to stabilize, according to the latest S&P/Case- Shiller report.

Crude up a third day, extends gains after APIs data showed that domestic crude stocks fell last week. NYMEX crude oil for June delivery settled at $103.55/brl, gaining 44 cents. -Reuter

European stocks rebounded from a three-month low as earnings from Nordea Bank AB to Kone Oyj topped analyst estimates and sales of new homes in the U.S. exceeded forecasts. Sales of new U.S. homes were stronger than projected in March, indicating cheaper borrowing costs are helping stabilize the real estate market. France's CAC40 rose 2.3%, U.K.'s FTSE100 increased 0.8% and Germany's DAX added 1%. -Bloomberg

Corporate News

HELP to grow revenue from non-degree courses. HELP University expects its non-degree segment to contribute 30% to revenue in five years and student base is expected to grow to 20,000 in 2018 from the 11,000 (both locally and overseas) at present. General insurers record RM14b gross premium in 2011, up 7.85% from the previous year. General Insurance Association of Malaysia's (PIAM) said there is room for growth in the industry as Malaysians are still under-insured when compared to the people of other Asian economies. -SunBiz

Metronic sells more Ariantec shares. Proceeds from the share disposal would be utilised to pay creditors as well as administration and operating expenses. Metronic, a provider of intelligent building management systems, told Bursa Malaysia that the share disposal had reduced its stake in Ariantec, an information technology company by 2.2% to 10.9%

Developers eyeing former Unilever plant site in Bangsar. Among the interested bidders are Mah Sing Group Bhd and UEM Land Holdings Bhd. Located at the intersection of Jalan Bangsar and Jalan Maarof in Kuala Lumpur, the land initially belonged to Perbadanan Aset Keretapi but has since changed hands to new owner Pelaburan Hartanah Bhd (PHB). -StarBiz

Scomi Group sells registered shares. Scomi has disposed 498 registered shares representing 99.6% of the issued and paid up share capital of its indirect subsidiary, Scomi Oiltools Kish Limited to Behnam Mousavi Moustafa, for a total cash consideration of US$17mil or RM52.1mil.


Sharp increase in Ramunia draws interest. In May 2011, Ramunia told Bursa Malaysia that its regularisation plan would comprise of capital reconstruction where it would cancel 25 sen from the par value of the existing ordinary share of 50 sen each, of which the credit would be used to offset its accumulated losses. -StarBiz

TH Plantation 1Q net profit down 40% on lower CPO prices. Its palm kernel average selling prices fell 36.5% to RM1,935 per tonne from RM3,046 per tonne while fresh fruit bunch prices slipped 18.3% to RM579 per tonne from RM709 per tonne during the same quarter last year. -Financialy Daily

 Source:Jupiter Securities Research 25 April 2012