Market Thoughts
US stocks eased off their session lows to close mixed Wednesday after the Federal Reserve left the door open for another round of monetary stimulus "fairly soon." Meanwhile, European shares ended lower across the board, led by cyclical, as investors took some profits following recent 13-month highs and amid renewed worries over Greece.

On the local market, the FBM KLCI gained 2.46 points to 1652.25 points. Given the uncertain market conditions in the US and Europe, we expect the FBM KLCI to remain range bound and move sideways. The local market could be influenced by corporate result announcements within these two weeks.

Malaysia News & Highlights
Astro to raise RM5.5bil in Malaysia’s third largest IPO
Satellite TV services provider Astro Malaysia Holdings Bhd is offering up to 1.52 billion shares in Malaysia's third largest initial public offering (IPO) this year. In an updated prospectus exposure released last Friday, the company said the shares represented 29.2% of its enlarged issued and paid-up share capital. A total of 1.26 billion shares or 24.2% of the shares would be offered to both local and foreign institutional investors, including bumiputra investors. Only 5% or 260 million shares would be made available to retail investors. According to Reuters, the indicative IPO price for bumiputra investors would be at RM3.60 per share. Based on the indicative price, the IPO would raise about RM5.47bil. (Source: The Star)

Allianz Life partners OSK Trustees to offer estate planning
Allianz Life Insurance Malaysia Bhd has entered into a strategic partnership with OSK Trustees Bhd to offer a holistic financial solution namely in estate planning. The business collaboration will see Allianz Life agents recommending a life insurance product as well as the estate planning services offered by OSK Trustees. (Source: Business Times)

Guan Chong bonus issue is on
Guan Chong Bhd, whose share price took a hit yesterday after it shelved plans for a secondary listing in Singapore, said it will proceed with a bonus issue that was proposed together with that listing exercise. Guan Chong, one of the region's largest cocoa processors that supplies to chocolate-makers such as Mars and Hershey's, expects its issue of up to 159.9 million shares - on the basis one bonus share for every two held - to be listed on September 12. (Source: Business Times)

Boustead posts steep fall in Q2 profit on lower CPO price
Boustead Holdings Bhd posted a steep 76.4% year-on-year drop in net profit to RM43.7mil for its second quarter ended June 30, 2012 due to lower crude palm oil prices and a slowdown in the maritime sector which impacted its heavy industries division. Revenue for the quarter under review increased 14.5% year-on-year to RM2.55bil. The conglomerate said in a statement that the earnings decline was strongly influenced by lower crude palm oil prices and lower contribution from the heavy industries division as a result of a slowdown in the maritime industry. (Source: The Star)

TSH shareholders give green light for proposed merger and acquisition of Pontian United Plantations
Shareholders of TSH Resources Bhd have given the company the go-ahead on the proposed merger and acquisition (M&A) of Pontian United Plantations Bhd (PUPB). At a press conference after the company's extraordinary general meeting yesterday, chairman Datuk Kelvin Tan said: “We are positive on whatever the outcome is.” Tan said both parties would benefit from combined synergistic value creation. (Source: The Star)

Foreign News
U.S. Stocks Reverse Losses as Minutes Show Easing Support
U.S. stocks reversed losses, after the Standard & Poor’s 500 Index briefly topped a four-year high yesterday, as minutes from the Federal Reserve’s last meeting showed many policy makers favored more monetary easing soon.

Greek Crisis Evasion to Fore as Merkel Hosts Hollande in Berlin
Chancellor Angela Merkel hosts President Francois Hollande today as officials look for ways to stave off an immediate crisis after a report due next month from Greece’s international creditors on the health of its finances.

European Stocks Fall on Japan Trade Deficit
European stocks slid the most in almost three weeks as Japan reported a wider-than-expected trade deficit and investors awaited the outcome of meetings between the leaders of countries in the euro area.

Aussie, N.Z. Dollars Advance as Fed Ready With Stimulus
The Australian and New Zealand dollars rose after minutes of the Federal Reserve’s latest policy meeting showed officials remain supportive of more stimulus unless the economy shows signs of expansion.

Oil Trades Near Three-Month High on U.S. Stockpiles, Fed Minutes
Oil traded near the highest level in more than three months after U.S. stockpiles declined more than analysts forecast and minutes from the Federal Reserve showed many policy makers backed more monetary easing.
(Source: Bloomberg)