MO R N I N G C O F F E E Tuesday, April 10, 2012

U.S. and European market roundup
The Dow and S&P 500 extended losses to a fourth day on Monday, as investors took their cues from last week's disappointing jobs report, which raised fresh concerns about the US economy's recovery. Banks and industrials led the S&P 500's slide. The two sectors are closely tied to the prospects for economic growth. In addition to the US jobs figures released last week, China's surprisingly soft producer prices data sparked concerns about waning demand in the world's second largest economy. The country's March PPI data reinforced expectations that a cooling economy has eclipsed inflation as the Chinese government's biggest near term worry. (Reuter)

European markets were closed for holiday.

Macro News
NA

Corporate News
Pakistan's palm oil importers want their government to reduce duty on palm oil product imports from Malaysia just Perusahaan Otomobil Kedua Sdn Bhd (Perodua) hopes to sell its car in South Africa by end of this year or early next year. The company aims to sell 20,000 Perodua cars overseas by 2015. Peruadua aims to sell 10,000- 11,000 cars this year in existing markets such as the UK, Mauritius, Singapore, Nepal, Fiji and Sri Lanka. On the local front, the company has set aside RM50m as capital expenditure this year to help increase new vehicle sales. (Business Times)

Boustead Holdings Bhd is banking on 'next generation super trees' and clonal materials to raise its oil yield by at least 15% to 300,000MT in 3 years. The plantation team will now accelerate replanting of aging trees with these super hybrids and clones. At prime fruit-bearing age, these super trees are capable of producing more than 35MT of FFB with over 23% of OER. The group has set aside RM1.3b for capital expenditure, of which some RM400m will be spent on land acquisition for property development. (Business Times)

UEM Land Holdings Bhd's wholly owned subsidiary, Nusajaya Premier Sdn Bhd (NPSB) has proposed to acquire 49.49ha of freehold land in Johor Bahru from Tanjung Bidara Ventures Sdn Bhd for RM93.2m cash. The land is adjacent to Kota Iskandar and the company's existing prime development in Nusajaya, Puteri Harbour. (Business Times)

  The Government is considering raising the minimum floor prices of house s foreigners are allowed to buy to RM1m from current RM500, 000 in an effort to control the rise in property prices. Deputy Finance Minster Datuk Donald Lim had recently told the press that the Government would take 'strict measure' to avoid US subprime mortgage financial crisis after average house price jump 7% in the fourth quarter of last year despite measure announced by BNM to rein in property prices. (StarBiz)

Guan Chong Bhd, is seeking a secondary listing in Singapore. The dual listing on the SGX-ST was to facilitate access to capital market in Singapore, providing flexibility to tap additional sources of equity funding for expansion. The purpose corporate exercise will entail two parts ' a public offering of up to 62mil shares if 25 sen par, or 19.4% of total existing share capital of 319.7mil of ordinary shares, compromising 31mil new shares and 31mil vendor shares to be offered to key substantial shareholders; secondly, a 1-for-2 bonus issue up to 205.3mil new share to the enlarged based of shareholders, subsequent to the public holdings. (StarBiz)

Silk Holdings Bhd's unit has secured a contract extension worth RM10.77m from Petrofac Malaysia Ltd. The award is for the contract extension of Jasa Merin's anchor handling tug supply vessel JM Intan to Petrofac. The contract which commenced in July 2009, had a primary period of two years with the extension options of 1+1+1 year, is to be extended for the second extension commencing July 2012 until July 2013. (The Edge Daily)

The 1Bestarinet project that was awarded to YTL Communication Sdn Bhd (YTL Comms), is said to be worth RM663m and for a period of 2'' years. The 1Bestarinet project conceptualised under the Economic
Transformation Programme, will ensure connectivity up to 10Mbps to all urban school and up to 4Mbps for rural school. It comes with al virtual learning platform, and YTL Comms is riding on 'Fog' virtual learning programme for its total solution package to school beside the internet. They will ensure that 9,924 government schools are wired according to what Government wants. (StarBiz)

Boustead Naval Shipyard Sdn Bhd (BNS) has issued three letters of award (LoAs) worth RM1.532b to Contraves Advanced Devices Sdn Bhd (CAD), a subsidiary of Boustead Heavy Industries Corp Bhd (BHIC). The three LoAs were in relation to the contract for second generation patrol vessels/ Littoral combat ships received previously by BNS from the Government. CAD is to undertake engineering and integration works in connection with the DCNS SETIS Combat Management System (CMS), together with procurement of the CMS and the Rheinmetall Fire Control System at a total ceiling contract sum of RM1.532b for an implementation period of up to 10 years from the commencement date of the awarded works. (StarBiz)

Bank Muamalat Malaysia Bhd expects a lower PBT for FYE Mar 2012 compared with its preceding year. CEO Datuk Mohd Redza Shah Abdul Wahid said the group is being more conservative as it is building its asset base for a stronger future for the coming years. On Bank Muamalat's NPLs rate, he said the rate is close to 1%, mostly from the corporate sector. (Bernama)

KFC Holdings (M) Bhd will spend about RM12m in advertising, marketing and promotions for its 'So Good' branding tagline over 3 phases this year. Managing director Jamaludin Md Ali said the campain is being held simultaneously nationwide. International celebrity Chef Wan has been appointed the first phase marketing campaign spokesman. The fast food company would spend some RM3m to improve the kitchen of the 300 KFC outlets with an enhanced efficiency system. Meanwhile on India, he said KFC Holdings was optimistic of opening 16 new KFC outlets, adding to the existing 12. On local front, the company aims to spend RM40m to open 15 new outlets this year, of which 5 were already operational. (StarBiz)

Source:Jupiter Securities Research 10 April 2012