Monday, 16 April 2012

OSK188 - 16 April 2012: DAIRY RESEARCH REPORT


On The Platter
SECTOR UPDATE : PLANTATION (NEUTRAL): CPO price in correction mode We believe a correction in CPO price has begun and production in the months ahead will be stronger. A subsequent price lull should take place as early strong demand is matched by ample supply. We may need to upgrade our CPO price assumption in the months ahead. Sector outperformers have been largely smaller growth stocks while larger stocks which are sector proxy have been flat. We believe this will continue to be the case until CPO price correction is over hence quality growth stocks should continue to be bought. Maintain Neutral on sector.

UMW (FV: RM8.38) Company Update: Another Stellar Year Seen

BERJAYA SPORTS TOTO (FV: RM4.72) Corporate News Flash: Expansion Drive

ANGANG STEEL (FV: HKD4.59  – SELL)  Company Update:  Stumped by Another

Massive Loss Guidance
Market Review
Key index marginally higher. FBM KLCI rose 1.85 pts to 1,603.12 as market sentiments improved. Gainers led losers by 400 to 325 while 355 counters were unchanged. Among the key market news over the weekend include, Tabung Haji to invest RM975m in UK property, Eversendai appointed sub-contractor for Jeddah project to erect structural steel works worth RM158m, sources said Balfour Beatty Plc. may buy Ingress stake in BBRail, Tan Sri Ling Chiong Ho is understood to plan a major move into Wijaya Baru Global to secure the latter’s landbank in Indonesia and Genting Plantations proposed a JV to develop and cultivate 74,000ha of palm oil plantation in Indonesia. Last Friday, Wall Street sentiment also was damped by rising concerns across the Atlantic that Spain and Italy may be the next to succumb to the eurozone debt crisis. With the DJIA diving 136.99 pts to finish at 12,849.59, investors may stay at the sidelines pending any fresh leads.  


MEDIA HIGHLIGHTS
S&P 500 posts first back-to-back weekly drop for 2012
US stocks fell,  sending the Standard & Poor’s 500 to its first back-to-back weekly decline since Nov, after employers added fewer jobs than estimated and investor concern over global economic growth intensified. The S&P 500 dropped 2% to 1,370.26 over the week and 1.2% last Friday. The decline came even as the benchmark index for American equities had its best two-day gain of the year on 11 and 12 Apr, sparked by optimism about earnings and signals from the Federal Reserve that interest rates will remain low. The Dow lost 210.55 pts, or 1.6% over the week and 1.1% last Friday, to 12,849.59. (Bloomberg)

Syed Mokhtar, Sunway eye land
Industrialist Tan Sri Syed Mokhtar Al-Bukhary and Sunway Bhd have submitted a proposal for a prime piece of real estate controlled by Kelab Gold Negara Subang (KGNS), which includes two 18-hole golf courses with a commercial value estimated at over RM5bn. The yet-to-be-publicised privatization plan for the KGNS land is surely to stir public debate and will represent a new twist in the ownership struggle for this lucrative piece of real estate located on the leafy fringes of Kelana Jaya in Selangor.(Financial Daily)

TM to expand UniFi coverage to 1.3m premise passes
Telekom Malaysia (TM) aims to expand its UniFi high-speed fibre-optic broadband coverage to 1.3m premise passes by year-end in an effort to provide better services to customers. Currently, the telecommunication giant has 1.2m premise passes and 320,000 customers nationwide. Chief executive officer Datuk Zamzamzairani  Mohd Isa said among the efforts put in place, aside from expanding UniFi’s network coverage, was the transformation of its frontline touch point, call centres and also technicians. (Malaysian Reserve)

MBM Resources eyeing local distributor of China carmaker
MBM Resources Bhd, which aims to become a prominent automaker within the next three to five years, has approached a local distributor of a China carmaker for a possible substantial stake. An industry observer hinted that MBM may be a potential investor in financing the expansion plan of the local distributor’s assembly plant to manufacture vehicles for the domestic and rofeign markets. (Malaysian Reserve)

Affin Bank injects RM500m into Tier 1 and Tier 2 capital
The Affin Bank group has boosted its Tier 1 and Tier 2 capital by RM500m in the first quarter of the year, and further capital injection, in view of Basel 3 requirements, is in the pipeline. The banking group’s asset base has doubled to RM50bn in six years. Likewise, its capital base has also gone up by RM2.3bn to RM4bn, with RM3.3bn or about 83% representing the core or Tier 1 capital. (BT)

Malaysian banks invited to expand Islamic banking in Pakistan
Malaysian financial institutions have been invited to explore expansion opportunities in Pakistan, particularly in Islamic banking. Pakistan’s high commissioner to Malaysia, Masood Khalid said that he expects Bank Negara Governor, Tan Sri Dr Zeti Akhtar Aziz to have a discussion on how Malaysia financial institutions could expand their operations to Pakistan, when she meets with the governor of State Bank of Pakistan, Yaseen Anwar, in the near future. (StarBiz)

Source: OSK188

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