MO R N I N G C O F F E E  - Wednesday, April 18, 2012

U.S. and European market roundup
In Tuesday's rally, each of the three major indexes booked their largest percentage gained since March13.. S&P 500 gained 1.55 %, to 1,390.78. S&P 500 closed shy of its 14-day moving average and easily cleared its 50-day average, suggesting a turn in momentum after the recent pullback. The benchmark dipped below the 50-day line last week for the first time in more than three months. DJIA rose 1.50%.

Earlier in the day, Coca-Cola, Goldman Sachs and Johnson & Johnson all reported profits that beat analysts' estimates, in what has been a surprisingly strong start to earnings season. The better-than-expected results helped ease fears that earnings could start to tail off this quarter. Of the 39 S&P 500 companies that had reported earnings before Tuesday's opening bell, 74.4% beat estimates, according to Thomson Reuters data.

U.S. crude futures rose for a second straight day on Tuesday, as prospects of an earlier-than-expected reversal of the Seaway pipeline to help ease the glut of oil in the Midwest continued to fuel buying. NYMEX, crude for May delivery, which expires on Friday, settled at $104.20 a barrel, gaining $1.27, or 1.23%, the highest since April 2. - Reuters

German DAX 30 index rose 1.5% to 6,725.33, German investor confidence unexpectedly rose for a fifth month in April to the highest in almost two years, suggesting Europe's largest economy can weather the resurgent debt crisis in the euro region's periphery. French CAC 40 index rose 1.7% to 3,259.14 and the FTSE 100 index rose 1% to 5,724.90. - Bloomberg

Macro News
Washington-based IMF said in its World Economic Outlook, the world economy will expand 3.5% this year and 4.1% in 2013 raising forecasts made in January from 3.3% for 2012 and 4% for next year. The U.S. will grow 2.1% this year and 2.4% in 2013, up from 1.8% and 2.2% in the lender's January projections. - Bloomberg

IMF maintained China economy growth target at 8.2% this year- above the Chinese government target of 7.5% - and 8.8% in 2013. - AFP

MIER revise upward growth outlook this year from 3.7% to 4.2%, on improving consumer and business demand. They expect the economy to improve to 4.7% in 2013. - Btimes

Sales of new vehicles in March fell by 15.3% from a year ago to 53,583 units, according to the MAA. The total industry volume for the first quarter this year also recorded a fall by 12.5% to 138,544 units against the corresponding quarter last year.- StarBiz

Corporate News
I-Berhad aims to launch Rm450mil worth of properties a year at i-City in Shah Alam, Selangor, giving it a steady income of RM400mil to Rm500mil by 2014. I-Berhad revenue from developments has been averaging RM15mil a year for the past two years. 'Btimes

Hua Yang buys over developer Sunny Mode Sdn Bhd from Nestin Sdn Bhd,it has acquired 1.32mil shares of RM1 each representing 40% of the issued and paid up of the latter, for RM3mil. Sunny owns a vacant leasehold land measuring 28.5 acres located near Seremban, Negeri Sembilan. 'StarBiz

Ingenuity Solutions Bhd (Ingens) has obtained a RM125mil contract to be the sole distributor of WiMAX
modems for broadband player Packet One Networks (M) Sdn Bhd (P1). The company said it would supply P1 4G WiMAX modems to 858 P1 authorised resellers throughout Malaysia. 'StarBiz

APM Automotive Malaysia Bhd has won Indonesian government permission to set up RM33m facility in West Java. The total capital and investment outlay for the project will be finance by internal generated funds. -SunBiz

Ken Holdings Bhd will branch out into the hospitality sector with its upcoming Ken TTDI (Taman Tun Dr Ismail) commercial development. The Project is due to complete by 2014. FYE 31 Dec 2011, Ken Holdings recorded operating revenue of RM87.2mil. 'Btimes

Octagon Consolidated Bhd's subsidiary, Orizon Renewable Energy Pte Ltd has received approval from Sri Lanka's Ministry of Power and Energy to undertake a waste to energy project in Colombo. Octagon said the ministry confirmed that the power tariff applicable to the project was 21.93 Sri Lankan rupee (about 52 sen) per KWh. - Bernama

Malayan Banking Bhd (Maybank) has announced a final cash dividend of 36 sen per share less 25% taxation in respect of the six-month ended Dec 31, 2011. ex-date will be on April 27 and the entitlement date and time will be on May 2 and 5pm respectively.- Bursa

Wijaya Baru Global Bhd said that it was negotiating with interested parties to start timber extraction and thereafter plant oil palm in the Papua Province in Indonesia. The talks are in the preliminary stage and nothing has been finalised yet. -Starbiz

Source:Jupiter Securities Research 18 April 2012