Market roundup-Bloomberg

Dow Falls to Four-Month Low as Greece Overshadows Economy: as Greece's failure to form a new government offset better-than-estimated American economic data. Investors' demand for safety pushed up the Dollar Index (DXY), a gauge of the currency against six major peers, for the 12th straight day. The dollar gain helped send copper, gold and oil lower. Gauges of energy and raw material shares in the S&P 500 slumped at least 1.4 percent. In the U.S., a Commerce Department report showed that retail sales increased 0.1 percent in April. The Standard & Poor's 500 Index fell 0.6 percent, dropping 2 percent in three days. The Dow lost 63.35 points, or 0.5 percent, to 12,632, the lowest since Jan. 19.

Oil Falls to Five-Month Low on New Greek Election: after a second Greek election was called for as attempts to form a government failed, sending the euro tumbling. Greece has been without a government since an election on May 6, increasing concern the country will renege on pledges to cut spending as required by the terms of two bailouts negotiated since May 2010. That has spurred speculation it may ultimately leave the euro currency union. Crude oil for June delivery decreased 80 cents to $93.88 a barrel on the New York Mercantile Exchange, the lowest settlement since Dec. 19. Prices are down 4.9 percent this year.

European Stocks Retreat as Greece Will Hold New Election: European stocks dropped for a second day, as Greece called a new election after the country's politicians failed to form a government. Gross domestic product in the 17-nation euro area stagnated in the first quarter compared with the final three months of 2011, according to the European Union's statistics office in Luxembourg. The U.K.'s FTSE 100 lost 0.5 percent and France's CAC 40 lost 0.6 percent. Germany's DAX retreated 0.8 percent.

Corporate News
Brahim's investing RM130m in sugar refinery: to build an integrated sugar refinery production facility in Demak Laut Industrial Park, Sarawak, is expecting a substantial contribution from this new business. The plant, which will be commissioned in 2014, will have an initial capacity of 100,000 metric tonnes per annum, growing to 330,000 metric tonnes.

Tomei allots RM20m for network expansion: to expand its retail network this year, given the encouraging consumer response in the past year. The company plans to open up to six new retail outlets nationwide, including in Kuala Lumpur, Selangor, Kedah and Sabah

BHIC posts RM14.5m loss in Q1: due to adverse economic condition that has affected its business. The group munufacturing segments recorded lower sales as a results of a downturn in the semiconductor equipments industry, while the decline in the maintainance, repair and overhaul (MRO) business saw a reduced contribution from the heavy engineering segments.

-SunBiz

AirAsia expected to propose dividend of 50%: will recommend a first and final single tier dividend of 50% or five sen per ordinary share of 10 sen for its financial year ended Dec 31, 2011 at its upcoming AGM. For the financial year ended Dec 31, 2011, AirAsia's after-tax profit fell 47% to RM564.1mil from RM1.061bil previously.

Southern Steel falls into the red : for its third quarter ended March 31 with a net loss RM25.1mil on the back of revenue of RM869.3mil due to depressed steel prices.

Kinsteel back to the black: its first quarter ended March 31 to RM10.3mil from a net loss RM3.6mil a year ago due to lower cost of raw materials and higher steel prices during the quarter.

-StarBiz

Jump in Q1 manufacturing investment in Malaysia: MALAYSIA recorded a 12 per cent jump in approved investments in the manufacturing sector in the first quarter of this year compared with the corresponding period last year.

TDM Q1 pre-tax profit slips: the first quarter ended March 31 slipped 32 per cent to RM25.8 million from RM37.9 million in the same quarter last year. Weaker performance was mainly due to lower average crude palm oil (CPO) prices realised compared with the previous corresponding quarter.

Mitrajaya unit gets RM112m Putrajaya job: wholly-owned subsidiary, Pembinaan Mitrajaya Sdn Bhd, has received RM111.8 million contract from Putrajaya Holdings Sdn Bhd for the construction of City Campus Development Phase 1 at Precinct 5, Putrajaya

-Btimes

Source:Jupiter Securities Research 16 May 2012