News Bits | 13 August 2012

Highlights of the day

§  Plantation (Sector Update): Production levels recovering, inventory rises to 2m mt (Maintain NEUTRAL) [download report]

MPOB statistics for July saw production levels showing signs of recovery, after gaining 15% m-o-m due to improving yields particularly in Peninsula Malaysia. However, exports contracted by 15% m-o-m due to decreased shipments to China, India and Pakistan. This caused inventory levels to jump 18% m-o-m to 2.00m mt, the highest since February 2012. SOI readings have returned to neutral levels, but we do not discount the possibility of El Nino conditions on the horizon. Maintain NEUTRAL.

Other reports

§  Newz Bits [download report]

Other Malaysian news

§  Sime Darby: Doesn’t need to make MGO

§  Tan Chong Motor: ETCM counts on Nissan Almera

§  MRCB: Working to settle debt woes

§  Naim Indah: Forms joint venture with Keloil

§  George Kent: Starts work on Ampang LEP

§  Silk Holdings: Gets contract extensions from Petronas Carigali

§  Construction: Work on MRT viaduct package to begin soon

§  IPO: IGB REIT feeds into thirst for yield

Global news

§  US: The economy bucks export slowdown

§  US: July budget gap narrows on lower spending, payment shifts

§  US: Import prices unexpectedly fell in July for fourth month

§  Europe: Spain banks won’t get rescue funds until October

§  Europe: Greece clears sale of state stakes in post office, vehicle maker

§  China: Export growth collapses as world recovery slows

§  Hong Kong: Government cuts 2012 growth forecast as world economy falters

§  Global: IEA forecasts oil demand growth slowdown on economic outlook

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