News Bits | 11 May 2012

Highlights of the day

§   Economics (Industrial Production Index): March 2012: Weak production, weak exports, weak demand [download report]

March industrial production index for Malaysia grew slower at 0.6% y-o-y after a jump of 7.5% y-o-y in February. The slow growth is a reflection of weak demand for production, as indicated by contraction in exports in Malaysia and in other export-oriented Asian economies. Steep decline in the mining sector contributed to the weak IPI growth. Due to worsening export figures in April for other Asian economies, we project Malaysian April production to stay approximately flat from a year ago. (refer to report for details)

§  Plantation (Sector Update): Inventory levels reach 12 month low (Neutral) [download report]

MPOB April statistics saw inventory levels decline 6% m-o-m to 1.85m mt, reaching a 12 month low. Production levels remain lower y-o-y and cumulative 4M production is down 3% y-o-y. Exports contracted slightly by 1% m-o-m, but cumulative 4M exports are up 11% y-o-y. We maintain our NEUTRAL call on the sector with CPO ASP of RM3,200/mt for 2012. (refer to report for details)

Other reports

§  Property (Sector Update): Cooler market (Neutral) [download report]

§  Newz Bits [download report]

Other Malaysian news

§  Maybank: Issues RM2.1bn bonds

§  Genting: Genting Singapore’s 1QFY12 net profit falls 33%

§  AirAsia: Appoints new Singapore head

§  Dialog: 3QFY12 revenue up 39%, but EPS flat

§  IGB Corp: Johor Mid Valley City land to cost RM259m

§  MAS: To get up to RM1.5bn bridging loan from CIMB

§  ECM Libra - Kenanga: Merger finalised

§  KKB Engineering: Among the top contenders for RM790m job

§  Pelikan: Plans to delist from Swiss bourse

§  Sarawak Cable: HNG confirmed as buyer of 15% stake

§  Xidelang: Eyes primary listing in Hong Kong

§  EP Manufacturing: Maju defends highway sale

§  Harvest Court: MD pares stake

§  Transportation: Consultants to study Malaysia-Singapore rapid transit system

§  Oil & Gas: Johor refinery project timely

§  Technology: Infineon pumping in RM4bn for Kulim Hi-Tech Park

Global news

§  US: Jobless claims allay concern on labor market

§  Europe: BOE halts stimulus as inflation threat outweighs slump

§  China: China trade lagging behind estimates

§  South Korea: Bank of Korea holds rate for 11th month

§  Indonesia: Indonesia takes steps to reduce cash as interest rate held

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