Gamuda's 1HFY12 earnings of RM268.8m (+47.2% y-o-y) were inline with both our and consensus forecasts, making up 51.5% and 54.5% of therespective full-year estimates. Overall, we are encouraged by the progress inits execution of the KV MRT project after jointly clinching the tunnellingportion of the SBK line with MMC. We are now looking forward to more news onthe Gemas-Johor Bahru EDT in 3Q12 worth an estimated RM8bn. Maintain BUY, withour SOP-based FV unchanged at RM4.57.

Stuck in a  range. The  FBM KLCI  shed 4.35  pts to 1,583.7, weighed down by the downbeat  global sentiment, with blue chips like  CIMB, IOICorp, Tenaga and Petronas Gas losingground. Corporate newflows includes: AirAsia targets the listing of its Thaiand Indonesian operations by May and October this year respectively, BandarRaya Development has appointed a legal and financial adviser for the opentender of its assets sale, and Gamuda reported a 45% jump in 2Q12 net profit.Meanwhile, IGB has formed a JV with Selai Pantai SB to build a RM6bn megamallin South Key Johor Bahru and Bintai Kinden has secured a SGD166.2m construction contract for one of the SingaporeMRT line extension. On the global front, the Dow  lost 71.5  pts driven by concerns  over the sustainabilityof the US economic recovery.

The estimated RM6bn Southkey Megamall development in Johorby IGB Corp through a JV with a Johor-based property developer is expected tostart next year, according to IGB Corp group MD Robert Tan Chung Meng. Tan saida full planning and study of the project will be conducted first before signinga definitive agreement within the next one to two months which will beundertaken between IGB Corp and Selia Pantai SB.  (Malaysian Reserve) Please see yesterday's report

A listing in May is what Tan Sri Tony Fernandes is lookingat for Thai AirAsia and sometime in October for Indo AirAsia. And he has notgiven up hopes of trying to list AirAsia X this year too. 'There will be twolistings this year. If we can add AirAsia X, and I am confident we can, we willhave three listings this year,' the group CEO said. (StarBiz)

Bintai Kinden Corp secured a SGD166.23m (RM405.2m) worth ofcontracts via a joint venture for Singapore's MRT line extension, the DowntownLine Stage 3 project. The contract will be for the supply and installation of electricalservices worth SGD78.23m as  well as thesupply and installation of tunnel ventilation and environmental control systemsworth SGD87.94m. (Financial Daily)

Key West Global Telecommunication, together with MarylandInternational Offshore Ltd, has acquired Manjung Niaga SB (MNSB) for USD52.5m(RM160.65m) as part of Key West's plans to position itself as an oil and gas player.Key West has 78.9% equity interest and Maryland 21.1%. Key West executivedirector Stephen Ng said MNSB owns 95% of PT Formasi Sumatera Energi, whichowns a 15-year Kerja Sama Operasi concession to reactive and optimize theproduction of petroleum resources in the Tanjung Time Timur field in SouthSumatera, Indonesia. (Financial Daily)

Cypark Resources, via two wholly-owned subsidiaries, hassigned renewable energy power purchase agreement with TNB for a feed-in-tariffconcession period. The 21-year concession is for electricity generated fromCypark's 8MW solar park in Pajam, Negri Sembilan. (BT)

Vietnam's trade deficit narrowed in March as exports rose,supporting the currency. The gap fell to USD150m from a  revised USD279m in February, based onpreliminary figures released by the General Statistics. The shortfall totalledUSD251m in the first three months of the year. (Bloomberg)

Myanmar announced an overhaul of its antiquated currencysystem as part of burgeoning reforms to modernize an economy left in disarrayby decades of military rule and isolation. The impoverished nation will adopt amanaged floating exchange rate from 1 April, allowing market forces todetermine the value of the kyat, while leaving room for the central bank toinfluence its value, state media said. It described the move as the first step towardsunifying the nation's various exchange rates. (BT)

South Korea returned to a current- account surplus inFebruary as exports rose amid signs of an improving US economy and as the eurozone debt crisis eased. The surplus was USD639m, compared with a revised USD969mdeficit in January, the Bank of Korea said in Seoul. The current account is thebroadest measure of trade, tracking goods, services and investment income.(Bloomberg)

Growth in loans to households and companies in the 17-nationeuro area slowed in February as a cooling economy curbed demand for credit.Loans to the private sector grew 0.7% from a year earlier after gaining an annual1.1% in January, the ECB said. The rate of growth in M3 money supply, which theFrankfurt-based ECB uses as a gauge of future inflation, increased to 2.8% from2.5%. (Bloomberg)

The UK economy shrank more than previously estimated in the4^th quarter as services companies from airlines to banks cut outputamid concerns about the euro region debt crisis. GDP fell 0.3% from the  third quarter, compared with a previouslyestimated 0.2% drop, the Office of National Statistics said.(StarBiz)

Orders placed with US factories for durable goods rose inFebruary for a fourth month in the last five, signalling manufacturing will remain a source of strength for theexpansion. Bookings for goods meant to last at least three years advanced 2.2%,less than projected, after a revised 3.6% decline in January, data from theCommerce Department showed. Orders excluding transportation equipment increased1.6%, in line with the median forecast in a Bloomberg News survey ofeconomists. (Bloomberg)

Source: OSK188