TSH Resources (TSH) joined us in hitting the road inSingapore recently to meet 9 institutional funds. FFB production growth wasspectacular last year, surging by m ore than 40% y-o-y, with its young Indonesian estates being the key growthdriver. Management is looking to quicken the pace of new planting over the nextfew years and also shed light on why the company is further expanding inKalimantan. TSH continues to have one of the best tree age profiles, with 75.0%of its trees below peak. Maintain BUY, with FV of RM2.65.

Powers ahead. The  FBM KLCI closed at 1,601.27, up 4.1 pts  with buying interest  on selected blue chips. However, declinersled advancers 366 to 360 while 321 counters were traded unchanged and 481 wereuntraded. Among the key market news today are, AmG Insurance inks deal to buyentire Kurnia stake for RM1.55bn, TNB back in the black with 1Q net profit ofRM2.8bn, Malayan United Industries to dispose of  insurance operations to TokioMarine, CIMB and RBS sign cooperation agreement, Johor Corp to raise RM3bn viaissuance of Islamic bonds, Kim Hin Industry buys Aussie building for RM28m andKejuruteraan Samudra in rig-lease deal. Meanwhile, Axis REIT buys industrialassets  for RM26.5m and  fire in K-One Technology may cost the companyRM13m. On the global front, US stocks rallied as investors entertained thoughtsof further stimulus from global central banks, and embraced lower borrowingcosts in Europe and the assumption that China's economy is headed for a softlanding. We expect  the local bourse tobe well-supported by the higher Dow that rose 181.1 pts, or 1.4%, to 12,986.5.

US stocks rose, giving the S&P's 500 Index its biggesttwo-day rally in 2012, on policymakers' signals that interest rates will remainlow. Commodity shares gained the most among 10 S&P 500 groups. The DowJones Transportation Average, a proxy for the economy, added 2.2%.Hewlett-Packard Co. surged 7.2%, the biggest advance since 2009, after GartnerInc. said the global personal-computer industry grew in the first quarter asthe company remained a market leader. Google Inc. added 1.8% as profit beatestimates. The S&P 500 advanced 1.4% to 1,387.57 rising 2.1% in two days.The Dow Jones Industrial Average climbed 181.19 points to 12,986.58. About 6.3billion shares changed hands on US exchanges yesterday. (Bloomberg)

The Federal Government has thrown debt-laden Johor Corp(JCorp) a financial lifeline by guaranteeing a fundraising exercise that willhelp the state agency meet its immediate debt obligations. JCorp, the strategicinvestment are of Johor, announced that it planned to issue a sukuk wakalahIslamic finance instrument worth RM3bn to be directed at redeeming thestate-owned corporation's outstanding bonds worth RM3.2bn maturing at end-July.The guarantee, approved by the Cabinet, represents a major department from theGovernment's treatment of loans by state agencies. (Financial Daily)

AmG Insurance, the general insurance arm of AMMB Holdings,has wholly acquired Kurnia Insurans for RM1.5bn cash, making it the country'snumber one general and motor insurance firm. In a statement yesterday, AMMBdirectors said the purchase would elevate the company into becoming Malaysia'slargest general insurer with over RM1.7bn in gross written premium. AMMB andAmG chairman Tan Sri Azman Hashim said the acquisition would enable AmG toachieve its objective of being among the top three domestic general insurers. "Thecombined businesses of AmG and Kurnia will see it emerge as the largestdomestic general insurer and the market leader in motor insurance," saidAzman. He added that this acquisition complemented AmBank Group's medium-termaspiration and strategic priorities of growing income from profitablesegments.  (BT) Please see accompanyingreport.

Malayan United Industries (MUI) has proposed to sell theinsurance assets and liabilities of MUI Continental Insurance Bhd (MCI) to Tokio Marine Insurans for a premiumof RM180.23m. MUI told Bursa Malaysia that it had applied to Bank Negara forits approval of the proposed sale on 10 April. MCI is a 52.2% owned subsidiary ofNovimax SB, which is a wholly-owned subsidiary of MUI. 'The value of theinsurance assets to be transferred to Tokio Marine shall be equal to the valueof the insurance liabilities assumed by Tokio Marine as at the transfer date,to be determined,' said MUI. (StarBiz)

CIMB Group and Royal Bank of Scotland (RBS) have enteredinto a cooperation agreement which covers potential collaboration in capitalmarkets activities, mergers and acquisitions, equities, derivatives, loanmarkets, trade advisory and trade financing solutions, cash management servicesand agent or custodian bank arrangements. 'We're extremely pleased to be ableto do this so quickly after announcing our acquisition of RBS' investmentbanking and cash equities businesses in Asia-Pacific last week. This willprovide a framework for our ex-RBS team to continue to work together with theirex-colleagues in areas of mutual interest between RBS and CIMB,' said CIMBGroup CEO Datuk Seri Nazir Razak. The deal would see CIMB emerge as the largestinvestment banking franchise in Asia-Pacific, excluding Japan. Nazir said thecooperation agreement would allow both CIMB Group and RBS Group to leverage offeach other in key Asia-Pacific markets. (StarBiz)                           

Tenaga Nasional (TNB) has posted its first quarterly profitafter three consecutive quarters in the red. For its 2Q ended 29 Feb, thenational utility recorded a net profit of RM2.82bn, almost 340% higher y-o-y.This was largely because of a RM2.02bn compensation paid to it by theGovernment and Petronas under a cost-sharing mechanism agreed to last year,following a shortfall in gas supply which crippled TNB's electricity generationand forced it to spend RM2.1bn to burn costly oil and distillates. It has alsoapproved an interim dividend of 5.09 sen per ordinary share less income tax of25%. (StarBiz) Please see accompanying report

Telekom Malaysia (TM) is proposing a final single-tierdividend of 9.8 sen per share for the financial year ended 31 Dec 2011. Thecompany said in a filing with Bursa Malaysia that the dividend would go ex on22 May. The entitlement date would be 24 May subject to shareholders' approvalin the upcoming AGM on  8 May, it added (StarBiz)

Axis Real Estate Investment Trust (REIT) is proposing toacquire two leasehold industrial properties near Nilai, Negri Sembilan, fromLRS Property SB for RM26.5m. The REIT manager said in an announcement to thestock exchange that the proposed acquisition would be paid for in cash and thatthe properties were tenanted with various term leases. (StarBiz

Indonesia's central bank left its benchmark interest rateunchanged for a second month as inflation risks persist even after thegovernment was forced to postpone an increase in subsidized fuel prices. BankIndonesia kept the reference rate at 5.75%. Inflation in March rose for thefirst time in seven months, and lawmakers have rejected an immediate fuel-costincrease while giving the government power to act if Indonesian crude exceeds thebudget assumption of $105 a barrel by 15% over six months. (Bloomberg)

Australian payrolls rose more than economists forecast inMarch, capping the best quarter since 2010, led by financial and manufacturingstates Victoria and New South Wales. Payrolls rose by 44,000, almost seventimes the median estimate for a 6,500 increase in a Bloomberg News survey of 24economists. The jobless rate stayed at 5.2%, compared with expectations for arise to 5.3%. (Bloomberg)

India reported a smaller-than-expected expansion in Februaryindustrial production and sprang a surprise by sharply slashing the previouslyreported January data, reviving worries that an economic upturn may not happen anytimesoon. Industrial output rose 4.1% from a year earlier in February, missing the6.6% median estimate in a poll of 15 economists, as manufacturing growthremained weak. For January, it revised the output growth number to 1.1% from6.8%, blaming inflated sugar production data in the previous print. (Bloomberg)

China's new yuan loans were the most in a year andmoney-supply growth quickened after Premier Wen Jiabao moved to bolster theeconomy by cutting banks' required reserves and helping smaller businesses getfinancing. Local-currency-denominated loans were CNY1.01tn in March, up fromCNY710.7bn in February. M2, the broadest measure of money supply, grew 13.4%from a year earlier. Its foreign exchange reserves, the world's largest, roseto a record USD3.31tn as of 31 March after dropping for the first time in morethan a decade in the fourth quarter. (Bloomberg)

European industrial production unexpectedly rose inFebruary, led by France and Netherlands, adding to signs of economicstabilization after a fourth-quarter contraction. Production in the 17-nationeuro area increased 0.5% from January, when it remained unchanged. From a yearearlier, production decreased 1.8%. (Bloomberg)

UK trade deficit widened to the most in three months inFebruary as exports of cars and heavy machinery fell, especially to the US,China and Russia. The goods-trade gap widened to GBP8.77bn from a revisedGBP7.88bn in January. Exports fell 3.4 percent while imports were unchanged.(Bloomberg)

US trade deficit narrowed unexpectedly in February asexports hit a record high, imports from China and other key suppliers declinedand oil import volume fell to the lowest in 15 years. The monthly trade gapshrank 12.4% to USD46.0bn, the biggest month-to-month decline since May 2009.Exports edged slightly higher to a record USD181.2bn, led by record exports ofservices and capital goods, such as civilian aircraft and industrial machineswhile imports dropped 2.7% to USD227.2bn, the biggest monthly drop in threeyears. (Bloomberg)

More Americans than forecast filed applications for joblessbenefits last week, reinforcing concern among Federal Reserve policy makersthat the labour-market recovery will be slow to develop. Unemployment claims increased13,000 in the week ended 7 April to 380,000, the highest since 28 Jan.(Bloomberg)

Source: OSK188