MO R N I N G C O F F E E - Friday, May 11, 2012


U.S. and European market roundup-Bloomberg
S&P 500 Rises From 2-Month Low on Greece Government Talks: Greece attempted to form a new government and a decline in American jobless claims helped allay concern of a labor market setback. The S&P 500 rose 0.3 percent. The Dow Jones Industrial Average added 0.2 percent.

Oil Heads for Second Weekly Drop as Supply Exceeds Demand: after OPEC said that growth in global crude
supplies is outpacing demand. Crude for June delivery fell as much as 72 cents to $96.36 a barrel in electronic
trading on the New York Mercantile Exchange Source:Jupiter Securities Research 11 May 2012


European stocks rose, erasing an earlier decline: as companies from Deutsche Telekom AG to Repsol YPF SA
posted better-than-estimated quarterly profit. France's CAC 40 added 0.4 percent and the U.K.'s FTSE 100 rose 0.3 percent. Germany's DAX gained 0.7 percent.

Corporate News
Nomad to grow its serviced office space: Nomad Group Bhd wants equal contribution to revenue next year from its serviced offices, and its serviced residences and hotel segment, on the back of new office space in the region. Currently, 60% of the group's revenue comes from its serviced residences and hotel, and 40% from its serviced offices.

Century Q1 net profit falls 33%: decline in net profit for the first quarter ended March 31, 2012 to RM4.3 million, mainly due to a weak global economy resulting in reduced activities of the total logistics services segment as well as start-up losses from the operation of a tanker.

Pestech to use bulk of IPO proceeds to repay loans: will raise RM12.88 million under its initial public offering (IPO), with the bulk of the proceeds to be used to reduce debt, and the rest for business expansion and development of high-value products. Its executive director and CEO Paul Lim Pay Chuan said RM6 million will be used to repay loans and RM1.8 million for business and market expansion.

-SunBiz

ECM Libra-Kenanga merger finalised: will likely see Kenanga issuing cash and shares for the assets of ECM
Libra.In February, StarBiz reported that Kenanga was close to an agreement to buy the investment banking and broking unit of ECM Libra for about RM900mil.

Steep drop in earnings for Lingui and Glenealy: Lingui Developments Bhd posted a steep 80.3% year-on-year drop in net profit to RM13.6mil for its third quarter ended March 31, 2012 due to a slowdown in demand for timber products from major importing countries as well as cost pressures from higher diesel prices. Glenealy Plantations (Malaya) Bhd posted a 53% year-on-year drop in net profit
to RM10.9mil due partly due to higher production costs from increased fertiliser prices. Revenue for the quarter under review was 13.2% lower at RM60mil.

KKB Engineering a frontrunner for RM790mil job: one of the frontrunners for the job of constructing Asia Minerals Ltd's (AML) RM790mil manganese ferro alloy smelting plant in Samalaju Industrial Park,Bintulu.The contract is expected to be awarded in the next two to three months

-StarBiz

Malaysia's March industrial output growth short of expectations: industrial production grew at a slower pace than market expectations in March. The Industrial Production Index (IPI) grew by 0.6 per cent, down from a Business Times poll which expected the index to grow by an average 1.78 per cent year-on-year.

Genting Singapore's Q1 net profit down 33pc: Genting Singapore plc, which owns one of Singapore's two multibillion- dollar casino complexes, posted a 33 per cent fall in first quarter net profit yesterday, due to lower gaming revenues. Higher depreciation with the opening of new attractions in Genting's theme park in Singapore, as well as new hotels and a museum, also hit its earnings.

Infineon's RM4b reinvestment undertaking: German semiconductor giant Infineon Technologies AG will be
pumping in another RM4 billion into its Malaysian operations over the next decade. Malaysia's ability to
promote the development of high technology industries is a key reason for the company's huge reinvestment plan.

-Btimes


Source:Jupiter Securities Research 11 May 2012