MARKET ROUNDUP (Source Bloomberg)

U.S. Stocks Drop as Optimism About Spain Bailout Fades: as optimism over Spain's bailout plan gave way to skepticism it will succeed in halting the debt crisis. The S&P 500 fell 1.3 percent to 1,308.93, after futures on the index surged as much as 1.5 percent following Spain's request. It climbed 3.7 percent last week. The Dow Jones Industrial Average lost 142.97 points, or 1.1 percent, to 12,411.23.

European Stocks Erase Gain in Final Hour: Banks Retreat: led by a selloff in Spanish and Italian lenders, as optimism faded that Spain's 100 billion euro ($125 billion) bank bailout will contain the sovereign debt crisis. Germany's DAX climbed 0.2 percent, the U.K.'s FTSE 100 slipped 0.1 percent and France's CAC 40 slid 0.3 percent.

Oil Falls After Spanish Bailout Fails to Ease Europe Debt: Oil fell to an eight-month low in New York on skepticism that Spain's bailout plan will succeed in easing the euro region's debt crisis, which is slowing economic growth and curbing fuel use. Crude oil for July delivery declined $1.40 to $82.70 a barrel on the New York Mercantile Exchange, the lowest settlement since Oct. 6. The contract increased as much as $2.54, or 3 percent, early in the session. Prices have fallen 16 percent this year.

CORPORATE NEWS

Airline industry profits to plummet in 2012: IATA warned on Monday global profits would more than halve this year owing to surging oil prices and the eurozone crisis, with European carriers suffering losses of US$1.1 billion. Kumpulan Perangsang buys 40% of NGC Energy: via its unit Perangsang Oil and Gas Sdn Bhd, is acquiring a 40% stake in NGC Energy Sdn Bhd for RM40 million, marking the group's foray into the oil and gas (O&G) sector.

Handal bags RM120m job from Petronas Carigali: from Petronas Carigali Sdn Bhd to provide integrated crane services for the latter's operation in Kerteh, Terengganu.The five-year contract, which commences this month, will contribute positively to revenue, earnings and net assets per share of the Handal
Resources Group for the financial year ending Dec 31, 2012, Handal said.

-SunBiz

Malaysia's palm oil inventory falls: Local palm oil inventory in May fell 4.5% to the lowest in 13-month at 1.76 million tonnes compared with 1.85 million tonnes recorded a month earlier, according to the Malaysian Palm Oil Board (MPOB).Production, however, rose 8.7% to 1.38 million tonnes for the month under review compared with 1.27 million tonnes in the previous month, MPOB said in its latest palm oil statistics released yesterday.

Yinson, partner win RM2bil Vietnam O&G job: its Vietnam partner, PetroVietnam Technical Services Corp (PTSC), have secured a widely speculated deal worth US$737.3mil (RM2.35bil).

Possible lifeline for MAS: Malaysia Airlines (MAS), could overcome its present financial turbulence and head into clearer skies when the Asean air services is liberalised by 2015 if it adopts right strategies, say industry observers.

-StarBiz

Source:Jupiter Securities Research 13 June 2012