DIALOG (FV RM3.07' BUY) Company Update: All is Well Recently, we met up with Dialog's management, from which we gather that the company is making good progress in its Pengerang deepwater terminal and Balai  marginal oilfields projects. Dialog has reclaimed more than 150 acres of land to construct the terminal, which is more than sufficient for Phase 1. Meanwhile, the Balai marginal oilfield's pre-development stage is slated for completion by 2013, if not this year.

Overall, we see the company's prime projects being well on track and progressing as scheduled. Maintain BUY.

Uncertainty in Europe. The FBM KLCI lost 5.70 pts to 1584.90 pts on the back of losses by Genting Malaysia, Maybank, IOI Corp and Petronas Dagangan. With continued weakness in European and US markets and the political uncertainty in Greece, we expect market sentiment to remain volatile. The corporate headlines are Sime, CapitaMalls plan a RM500m mall, Felda eyes Louis Dreyfus as its strategic partner in its upcoming IPO, and  Mass Rapid Transit Corp (MRT Corp) has awarded four  more  packages for the construction of the Sungai Buloh-Kajang (SBK) MRT Line totalling RM3.22bn to Sykt Muhibbah Perniagaan & Pembinaan SB (SMPP) and Sunway Construction SB. Overnight, the Dow Jones closed 97.043 pts lower as political uncertainty in Greece raised  the risk of unravelling of the bailout package to the latter and sparking off a possible contagion across Europe.

The Dow Jones Industrial Average declined for a sixth straight day amid concern Greece's debt crisis is worsening as the nation struggles to form a coalition government. The Standard & Poor's 500 Index fell 0.7% to 1,354.58, a two-month low while the Dow slid 97.03 pts, or 0.8%, to 12,835.06. It had the longest slump since August last year, three days before S&P stripped the US of its AAA credit rating. Global stocks fell as Greece's political turmoil looks set to enter a fourth day with coalition talks deadlocked. The standoff has reignited concerns over its ability to hold to the terms of its two bailouts negotiated since May 2010. With Parliament split and policy makers in Berlin and Brussels urging Greece to stay the course, the country at the epicenter of the debt crisis is again facing the risk of an exit from the euro.  (Bloomberg)

Shell Malaysia Trading SdnBhd (SMTSB) has signed a sale and purchase agreement with Oman's National Gas Co SAOG (NGC) to divest its liquefied petroleum gas (LPG) business in Peninsular Malaysia to the latter at an undisclosed amount. SMTSB managing director Tuan Haji Azman Ismail said the divestment was part of its strategy to concentrate on other businesses and streamlined its downstream business. Azman said the divestment underwent a thorough tender process for about a year and NGC succeeded based on its competitive bid. He said the sale of its LPG business would not affect other businesses and the handover would be a 'seamless transition'. However, he said the deal was still pending regulatory approval as any company looking to retail petroleum products needed to obtain a licence. (StarBiz)

Sabah is expected to receive an investment of more than RM1bn from US-based company Dole, in the food and fruits industry. Sabah Chief Minister Datuk Seri Musa Aman said further discussions are being held to determine the best method of collaboration with one of the state government agencies. 'They (Dole), a major company in the food and fruits industry, have expressed deep interest in a collaboration." Musa said foreign companies were keen to invest in Sabah as it was known as a peaceful state and suitable for investing. He said under the five years of the Ninth Malaysia Plan, Sabah's economy had expanded at the rate of 5% annually, with the agricultural sector contributing RM7.24m to the 2010 GDP compared to RM3.8m in 2005. (StarBiz)

Sime Darby Property, the country's largest developer by landbank size, plans to develop a RM500m shopping mall in the Klang Valley, in partnership with CapitaMalls Asia Ltd. The mall, to be located on 242,000 sq-ft freehold land in Taman Melawati here, is  expected to be completed in 2016. It will have a net lettable area of around 635,000 sqft and serve a catchment population of about 800,000 people within a 10-minute drive. For CapitaMalls Asia, the project will be its first greenfield developments in Malaysia. The mall is surrounded by the residential areas of Taman Melati, WangsaMaju, Taman Permata and Kemensah Heights. (BT)

Global commodities trading powerhouse Louis Dreyfus has emerged as the frontrunner candidate in Felda's search for a strategic partner ahead of its USD3.3bn (RM10.13m) public offering. Industry executives said soonto-be listed Felda Global Ventures Holdings (FGVH) wants the French trading company as its cornerstone investor for its upcoming IPO. Louis Dreyfus is also being touted as a strategic partner to bolster the downstream business of FGVH, which is set to become the world's largest listed palm oil producer when its shares are listed at end-June.  (Financial Daily)

Mass Rapid Transit Corp (MRT Corp) has awarded four additional packages for the construction of the Sungai Buloh-Kajang (SBK) MRT Line, totalling RM3.22bn. The big winners for the new contracts were Syarikat Muhibbah Perniagaan & Pembinaan SB (SMPP) and Sunway Construction SB, which won jobs worth RM1.09bn and RM1.17bn respectively. The packages, awarded after the conclusion of  the One Stop Procurement Committee (OSPC) meeting yesterday, are for Viaduct 1, Viaduct 4, Viaduct 7 and Depot 1. MRT Corp is expected to award more tenders over the next month. (Malaysian Reserve) Please see accompanying reports

Malaysia's exports unexpectedly fell in March as manufacturers shipped fewer electrical and electronics products, bolstering the case for the central bank to hold off from interest-rate increases. Overseas shipments fell 0.1% to RM61.79bn (USD20bn) from a  year earlier after gaining 14.5% in February, according to a Trade Ministry statement yesterday. Malaysia's imports rose 1.6% in March from a year earlier. The trade surplus narrowed to RM10.45bn from RM10.58bn in February. (Bloomberg)

China Investment Corp has stopped buying European government debt because of an economic crisis on the continent, though it continues to look for new investments there, said CIC President  GaoXiqing.  'What is happening in Europe right now is of course of concern,' Gao said yesterday in an interview. 'We still have our people looking at opportunities in Europe, even though we don't want to buy any government bonds.'European leaders are struggling to contain a debt crisis that has entered its third year and led to bailouts of Greece, Portugal and Ireland. (Bloomberg)

From the monetary fortress of the European Central  Bank to the pro-European duchy of Luxembourg, policy makers are beginning to air their doubts that Greece can stay in the euro. Post-election tumult in Athens has put the once-taboo subject of an exit from the 17-country currency union on the agenda, lifting the veil on possible scenario planning afoot behind the scenes. After EUR386bn (USD499bn) in aid pledges for Greece, Ireland and Portugal, EUR214bn in ECB bond purchases and another trillion euros in low-interest loans for banks, plus 17 high-level crisis summits, Greece's political chaos thrust Europe into a perilous new phase. (Bloomberg)

UK retail sales fell the most in more than a year last month as poor weather and consumer caution on spending curbed demand at stores. Sales at stores open at least 12 months, measured by value, declined 3.3% from a year earlier, the London-based British Retail Consortium said yesterday. That's the biggest monthly drop since March 2011. Including stores  open less than 12 months, sales decreased 1%. With Britain suffering its first double-dip recession since 1975, the Bank of England's Monetary Policy Committee will decide tomorrow whether to add more stimulus to its existing GBP325bn (USD524bn) of bond purchases. (Bloomberg)

Employers in the US were seeking to fill more jobs in March than at any time in almost four years, showing growing confidence in the US economy. The number of open positions increased by 172,000 to 3.74m, the most since July 2008, from a revised 3.57m the prior month that was larger than previously estimated, the Labor Department said yesterday. Another report showed small companies were more optimistic on their outlook. More vacancies are a sign American companies were planning to expand at the end of the first quarter, undaunted by the jump in fuel costs or concerns that global economic growth will slow. (Bloomberg)