News bit | 12 April 2012

Highlights of the day

§  AMMB Holdings (Company Update): No impact from acquisition of Kurnia Insurans (Maintain HOLD, TP: RM5.70) [download report]

AMMB is acquiring Kurnia Insurans to have the largest general insurance and motor insurance company in Malaysia.  Estimating the borrowing cost to be incurred to fund the acquisition, and AMMB’s share of net profit from Kurnia Insurans, we find that the net impact on AMMB’s earnings is immaterial.  Hence, we are not revising our earnings forecasts, valuation nor HOLD recommendation for AMMB.

Other reports

§  Newz Bits [download report]

Other Malaysian news

§  Building Materials: Cement industry for re-rating as big projects gain momentum

§  CIMB: Signs cooperation agreement with RBS

§  Tenaga: Back in the black

§  MMC Corp: Revises share allocation

§  Axis REIT: Buys land for RM27m

§  Hibiscus: Associate secures 4th Mideast concession

§  MUI: To sell insurance arm to Tokio Marine

§  Golden Land: To double plantation landbank

§  Tanjung Offshore: Ekuinas to spearhead merger in OSV sector?

§  Property: Residential overhang units fall 15%

§  Oil & Gas: Shell, Petronas Carigali ink 2 new contracts with Petronas

§  Economy: Putrajaya to back JCorp debt refinancing

Global news

§  US: Unemployment claims rose to two-month high

§  US: Trade gap narrows more than forecast as imports drop

§  US: Producer costs minus food, fuel rise more than forecast

§  Europe: Industrial output unexpectedly rises on energy

§  UK: Trade gap widened as car exports dropped to US, China

§  China: New Yuan loans surge

§  Indonesia: Extension in pause in rate cuts as price risk persists

§  Global: IMF’s Lagarde lowers her request for resources as risks abate

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