MO R N I N G C O F F E E - Tuesday, May 8, 2012

U.S. and European market roundup
Investors brushed off Europe's election results, as the S&P 500 rebounded from early losses to end nearly unchanged on Monday, despite the uncertainty surrounding the euro zone's ability to tackle its debt crisis. U.S. financial stocks, normally highly sensitive to events that could unsettle the euro zone's fiscal stability, were not only the biggest gainers, but had the heaviest volume.

The Dow Jones industrial average slipped 29.74 points, or 0.23%, to 13,008.53 at the close. But the Standard & Poor's 500 Index inched up just 0.48 of a point, or 0.04%, to 1,369.58. The Nasdaq Composite Index added 1.42 points, or 0.05%, to 2,957.76.

On the New York Mercantile Exchange, June crude fell 55 cents, or 0.56%, to settle at $97.94 a barrel, having dropped to $95.34, the lowest intraday price since Dec.20.
Monday's intraday peak was $98.24.

-Reuters

European stocks rose the most in more than a week as German Chancellor Angela Merkel said she will receive
French president-elect Francois Hollande with 'open arms' as they work together to tackle the debt crisis. Germany's DAX added 0.1% and France's CAC 40 increased 1.7%, U.K. markets were closed for a holiday.

-Bloomberg


Corporate News Headlines
Moody's: RHB's merger with OSK is credit negative: greater volatility as it shifts its business mix towards riskier and market-sensitive activities, Moody's Investors Service Singapore Pte Ltd said. US-based Bose sets up plant in Penang: its first in Asia- Pacific ' to serve the booming market in the region.

-SunBiz

MSM profit rises on higher export sales, average price: posted a 7% rise in first-quarter net profit to RM66.386mil, from RM62.016mil a year earlier.

F&N net profit falls on lower revenue: second-quarter ended March 31 year-on-year (y-o-y) net profits declined by 18.89% to RM107.06mil from RM131.99mil as revenue dropped to RM730.43mil from RM1.01bil a year earlier.

Microlink, Formis voluntarily suspended: shares have been voluntarily suspended from trading on the stock exchange, with a source saying Formis will sell some of its businesses to Microlink in exchange for shares. Eonmetall to dispose of Penang land: is disposing of its freehold industrial land in Penang, together with the threestorey office building annexed with a single-storey factory building sitting on it, for a total cash consideration of RM26mil.

-StarBiz


Bumi Armada unit bags Mexican deal: subsidiary, Bumi Armada Navigation Sdn Bhd, has signed a five-year charter and operations contract with Mexico's Tecnologias Relacionadas con Energia y Servicios Especializados S.A. de C.V. (TRESE) for its accommodation workboat called Armada Firman 3.

Pavilion REIT Q1 pre-tax hits RM47.8m: on a revenue of RM85.3 million for the first quarter ended March 31 2012. MMC hopes to start MRT job by January: expects to commence the RM8.28 billion underground works package for the RM30 billion Klang Valley MY Rapid Transit (MRT) project by January next year

-Btimes


Source:Jupiter Securities Research 8 May 2012