U.S. and European market roundup
The Dow closed at its highest level in more than four years on Tuesday after U.S. manufacturing expanded at a faster pace than expected in April. Financial, transportation and energy shares, all of which are linked to economic growth, were strong performers.The Institute for Supply Management said U.S. manufacturing growth came in at its strongest rate in 10 months in April. That reading suggested the economy remains resilient after indications it had lost momentum at the start of the second quarter.

The Dow Jones industrial average gained 0.50%, Standard & Poor's 500 Index rose 0.57% and NASDAQ
Composite Index added 0.13%.The Dow earlier rose as high as 13,338.66 points, its highest since December 2007. The gains leave the benchmark S&P 500 within about 16 points of a high reached in May 2008. NYMEX-Crude ends at 5-wk high on robust factory data. Crude for June delivery closed $1.29 higher, at $106.16 a barrel, the highest settlement since March 27.

-Reuters


Macro News
PMI comes in slightly below market expectations. China's official purchasing managers' index (PMI) rose to a 13-month high in April, signaling the economy has found a footing and may be recovering from a first- uarter trough, but smaller factories are still struggling.

UK manufacturing loses steam. British manufacturing eked out growth in April as an economic slowdown in the eurozone curbed demand for goods made in Britain, a survey showed.

-Starbiz

Australia surprises with big rate cut. Australia slashed interest rates by a shock 50 basis points yesterday to 3.75 per cent due to weaker economic conditions and lower inflation, causing a drop in the Aussie dollar but a sharemarket boost.

S. Korean exports shrink for second straight month. South Korea's exports shrank year-on-year for a second straight month in April on sluggish demand from China and a decline in sales to the recession-hit eurozone, official figures showed yesterday.

-Btimes

Corporate News Headlines

MISC cuts 1,400 jobs worldwide this year following its exit from the liner business. MISC, the listed shipping arm of Petroliam Nasional Bhd (Petronas), had announced its exit from the liner business last November in view of. the rapid evolvement of the industry, coupled with overcapacity and container rates trending below operating costs, threatened the company's liner business restructuring plans.

Hap Seng opens Mercedes Autohaus in Vietnam. The new Mercedes-Benz Brand Gallery was established with an investment of US$5 million (RM15.14 million) from Vietnam Star, Hap Seng Star Sdn Bhd's unit and authorised Mercedes-Benz dealer in Vietnam, and is ranked as a flagship Autohaus 600, according to the global standards of Daimler AG, the owner of the Mercedes-Benz marque.

LBS to pay dividend, first since 2006, a first and final dividend of 2.5 sen per share for the financial year ended Dec 31, 2011

-SunBiz

Bina Puri eyes China coal mine, Kelantan tin mine, Jakarta bridge. It is believed to be in negotiations to acquire a coal mine in China and a tin mine in Kelantan, sources said.

Changes in mTouche seems like hostile takeover. Last Friday, four out of seven mTouche directors, including its chairman and chief executive officer Eugene Goh, resigned from all their positions in the firm.

Hunza sees income from Gurney Paragon in 2013. The development of Gurney Paragon was in line with the group's plan to transform itself from a property developer to one, which also included being a real estate landlord.

-StarBiz

Felda Global productivity push. According to sources, although half of FGVH's 355, 846ha oil palm estates are past their prime at over 25 years old, another 17 per cent of the estates are at their prime production between 20 and 25 years old

-Btimes

Source:Jupiter Securities Research 02 May 2012