Monday, November 30, 2009

20091130 1837 FCPO November 09 Monthly Chart Study.

FCPO ended the November 2009 month with a wide range up bar candle marching through and closed above the middle Bollinger band = market sentiment has just started to turn positive at the very initial premature stage. Bollinger band width continue to narrowing = market could still possilbly trading side way range bound. MACD Histrogram reading improved = buying interest started to returned to the market. Still too early to confirm anything at this moment of time and the plotted upward trend line should be taken as a guide and also possible support line. 

20091130 1825 FCPO EOD Daily Chart Study.

FCPO closed 10 points lower at 2472 with lower volume traded forming a doji bar candle. Price still closed above middle Bollinger band = market uptrend remained unchanged. Bollinger band width turned narrowing = the uptrend correction phase is likely to continue. MACD Histrogram getting lower = selling activities dominated today's market transaction. Correction likely to continue to immediate support stands at 2430 level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20091130 1802 FKLI November 09 Monthly Chart Study.

FKLI monthly chart wise showing no sign of the bear yet with price continue to trade higher above the middle and near the upper Bollinger band. Bollinger band width continue to narrowing may suggest that market could possibly near a significant top or major resistant level unless the band width started to turn outwards. MACD Historgram continue to record higher reading telling us that buyer participantion in ther market still increasing. Overall the uptrend remained intact with possible correction taking place.     

20091130 1742 FKLI EOD Daily Chart Study.

FKLI Nov 09 contract closed marginally higher up 1.5 point at 1267 with higher volume transacted. Chart wise, price still trading below the middle Bollinger band with the band width getting tighter = market is likely to trade side way range bound downwards biased. MACD Histrogram stayed slightly lower = buying and selling activities are near evenly distributed. Expecting a side way range bound market downward biased market. 
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell
: sell at resistant/strength/break down with larger cut loss and profit target.

20091130 1407 Malaysia Corporate News.

Hampered by poor offtake and excalating cost of subsidy, the Government’s highly promoted B5 mandate – the blending of 5% biodiesel with 95% diesel – now stands at the crossroads. Seen initially as one of the national strategic measures for better palm oil stock management with full implementation by January 2010, the B5 mandate is now being closely scrutinised by the Government for a possible reduction to B3 mandate soon.
  • This latest decision however does not “blend” well with local palm oil biodiesel producers which have long suffered in silence over the snail phase progress of the B5 mandate. Despite making huge investments in their biodiesel plants here, many felt that their plight were overlooked. (Starbiz) 
Last Thursday, the economic regulator of water and sewerage companies in England and Wales, Ofwat, published final determinations of water and sewerage charges for 2010-15. YTL Power’s Wessex Water has been granted a 1.2% average annual price increase limit, higher than the 0.5% weighted average for all the water and sewerage companies. (Ofwat’s Press Release)

CEO of YTL Power’s YTL Communications, Wing K Lee, is confident that a nationwide WiMAX connectivity is a very real possibility. He also said that the introduction of mobile 4G WiMAX was more than the upgrading of existing technology; it was an entire paradigm shift.
  • YTL Communications expects to require 1,920 base stations to cover the whole of Peninsula Malaysia.
  • Rolling out in 3Q 2010, YTL is promising a nationwide WiMAX network with greater speeds than existing 3G networks. (Financial Daily)
There is no denying that competition has gone up several notches of late in the broadband space. Industry players are scrambling for net adds. While Green Packet’s P1 added 36,000 subscribers in 3Q, Telekom Malaysia (TM) saw a further reduction of its broadband net addition subscribers to 28,000. TM, however, is not sitting idle. In an earlier interview, group CEO Datuk Zam Isa said the company would continue to put in a lot of effort to improve its Streamyx service on all fronts. (Starbiz)

Axiata Bangladesh, and Warid Telecom have signed an infrastructure sharing agreement which allows both the operators to share tower spaces for setting up microwave and GSM antennas. It also allows sharing land for setting up BTS rooms, electrical power and generator power sharing. (Telecompaper) 

Emery Oleochemicals Group, 50% owned by Sime Darby, is geared for competition and profit growth after a year of internal restructuring and rebranding. Emery CEO and board member Dr Kongkrapan Intarajang said the group has been busy with internal restructuring and reorganising its operations in the US, Canada, Germany and Malaysia since PTT Chemical's entry. "Previously, the group operated regionally. Now, it has been reorganised to operate across regions and interact seamlessly as a global company headquartered here in Malaysia. "We have trimmed it into three main regions comprising Asia, Europe and the US," Kongkrapan added. (BT)  

Sime Darby will build a new RM100m hospital at its residential development in Ara Damansara, Selangor, bringing the group's total number of hospitals in the country to four. The new hospital is expected to be completed by 2012. An industry source said the new hospital is part of Sime Darby's vision in becoming a formidable healthcare player in the country and the region. "The new hospital in Ara Damansara will be known as the Sime Darby Medical Centre Ara Damansara. Sime Darby is intensifying efforts to bolster its healthcare business division, where the segment is very competitive but recession-proof, enabling the group to earn an income even during economic hard times," the source added. (BT) 

A new 300MW gas-fired power plant, owned by a 60:40 JV company between Petronas Gas and Yayasan Sabah’s business arm NRG Consortium, is set to give Sabah’s critical energy sector a boost by 2013. CM Datuk Musa Aman said the plant would resolve much of the power shortage problems on the west coast of the state although there was still a need for another plant on the east coast. (Starbiz)

MMC Corp’s unit, Malakoff Corp, is exploring the possibility of acquiring a substantial stake in 1,400MW Jimah power plant and the company undertaking its operations and maintenance works, say sources. “It is carrying out due diligence on Jimah O&M Sdn Bhd and Jimah Teknik Sdn Bhd and will decide if these are feasible investments,” says a source. “The due diligence is expected to be concluded next month,” adds the source. The coal-fired Jimah power plant is 80%-owned by Jimah Energy Ventures Sdn Bhd while Tenaga holds 20%. (The Edge Weekly)

Port of Tanjung Pelepas (PTP) and the Federation of Malaysian Manufacturers' (FMM) Johor branch have agreed to leave the final decision to consolidate PTP and the Johor Port to the Cabinet. PTP deputy CEO Azlan Shahrim said the consensus was reached after a two-hour meeting between the two parties. Azlan said the consolidation was proposed by MMC Corp as Johor Port was congested and operating at full capacity with no room for expansion. (BT) 

The Penang government has allowed two local companies to build 1km monorail test tracks in Seberang Perai Selatan, Deputy CM II P. Ramasamy said. "Our aim is to showcase the monorail technology. The state government is not bound by any agreement involving project cost," he said. "We hope that the monorail tracks and coaches will be ready in one year. The two companies will be asked to dismantle the tracks and vacate the land if we feel that it is unsuitable," he added. (Bernama) 

Malaysia Airlines’ (MAS) success in securing finances worth US$126m under the Japanese Operating Lease (JOL) for seven ATR72-500s aircraft was named “Aircraft Leasing Deal of the Year – Asia” by Jane Transport Finance. The success in securing the financing was especially significant in light of a very quiet Japanese equity market. JOL is a unique aircraft financing structure whereby the financier takes the form of a special purpose vehicle, which acquires title of the aircraft, and leases the same to MAS on operating lease terms. (BT)

Proton is set to launch its maiden MPV Exora in the Thai market at the Thailand International Motor Expo this week. Based on initial feedback from the media and industry experts, a good response was expected from Thai buyers. (Bernama)

TA Global is teaming up with Townline Gardens Inc, a Canadian home builder, on a 65:35 JV basis, to develop a C$130m (RM422.5m) mixed-development project over seven years. The residential and commercial units will be built on a 8.9ha land in the City of Richmond, British Columbia, in a project known as "The Gardens". (BT)

20091130 1327 FKLI Mid Day Hourly Chart Study(Dec09 Contract)

Last Friday panic regional equity market selldown due to Dubai dept incident spurts over during FKLI opening this morning followed by buyer bargain hunting activities and major Asia market recovery helped stabilise the market's. Hourly chart wise (Dec09 chart), price still closed below the middle Bollinger band with the band width expanding marginally = market could possibly move lower. However, MACD Histrogram continue to edge higher = buying power remained strong through out the morning session. Immediate resistant seen at the middle Bollinger band followed by 1267 level.

20091130 1312 FCPO Mid Day Hourly Chart Study.

Crude palm oil futures continue to consolidate traded 19 points lower to closed at 2463. Hourly chart wise, price traded below the middle Bollinger band = market is in selling mood. Bollinger band width turning inwards mildly = side way range bound market likely. MACD Histrogram continue to fall lower = seller took charge of the market in the morning session. Should Bollinger band width reversed and turn outwards, further downside movement would be likely. Immediate support seen at the lower Bollinger band and followed by 2430 level. 

20091130 0923 FCPO Weekly Chart Study.

A double bottom formation has been identified on the FCPO weekly chart basis that tested the neckline resistant. All the indicators in the chart are showing an upside biased market movement for the week ahead thats favour a double bottom break up. Should this is the case the immediate target/resistant will be at the 2800 level. And should the break up failed, expecting a sideway range bound market with the resistant still rest at the 2523~2525 level and immediate support stands at the 2285 and followed by the middle Bollinger band level.

20091130 0910 FKLI Weekly Chart Study.

FKLI weekly chart still maintaining its uptrend sentiment. At closed of the week, price still trading at above Bollinger band and within the narrowing uptrend channel = market still remained biased to the upside. However, Bollinger band width narrowing and MACD Histrogram continue to dive lower = a correction would be likely to happen in the near term. Expecting a side way range bound market. Immediate support rest at the plotted lower trendline followed by the middle Bollinger band.

Thursday, November 26, 2009

20091126 1849 FCPO EOD Daily Chart Study.

FCPO closed unchanged at 2482 after opened gap up followed by traders profit taking activities to close position ahead of the long weekend forming a black bar candle. Chart wise, Bollinger band reading still favour a upside bias movement market and on the other hand MACD Histrogram recorded a lower reading due to seller profit taking activites. Market tested today's high and also resistant level of 2521 and closed lower could hints that the market may need to take some rest(side day or downward correction) to gather enough strength before marching higher. Immediate support stands at 2420~2430 and resistant rest at 2521~2525.
When to buy : buy at support or weakness with quick cut loss and profit target or buy on break up with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target. 

20091126 1755 FKLI EOD Daily Chart Study.

Wow! Today's doji bar candle marked the 8th correction bar to closed 3 points lower at 1265.5 with last minutes selldown. Chart wise, price penetrated below the middle Bollinger band = market sentiment has turned negative. Bollinger band width continue to squeeze narrower = the negative sentiment has yet to turn severe with possible side way range bound. MACD Histrogram continue to fall = sellers refused to leave the market and have started building their colony. Immediate support stands at 1257~1254 level and resistant rest at the middle Bollinger band level.
When to buy
(Dec09 Contract) : buy at support or weakness with quick cut loss and profit target.
When to sell
(Dec09 Contract) : sell at resistant/strength/break down with larger cut loss and profit target.

20091126 1313 FKLI Mid Day Hourly Chart Study.

 A very slow 5 points range trading market on FKLI that end the morning session up 2 points at 1270.5. Bollinger band flat small band width with price bar up and down suggesting a side way range bound market. MACD Histrogram also act indecisively in the whole morning by turning up and down show no hint of direction. The spotted descending triangle break out could ignite some reason for market to go upward biased but it could also stay side way range bound. Expecting a boring market ahead. 

20091126 1302 FCPO Mid Day Hourly Chart Study.

Crude palm oil futures closed up 11 points at 2493 after market opened gap up, tested the high at 2521 followed by profit taking activities to pushed price down to closed at the low of the first session. Price stay near above the middle Bollinger band with the band width turning inwards = the upward movement market are likely to trade side way range bound in the near term. MACD Histrogram slipping lower into the negative zone = profit taking activities took place with low buying interest present. The immediate support stand at the plotted upward trend line followed bt the 2475 level.

20091126 1155 Malaysia Corporate News.

The CIMB Group will dispose part of CIMB Bank's NPL to a special-purpose company, Southeast Asia Special Asset Management (Seasam). The group will dispose of mostly legacy NPLs from CIMB Bank, comprising about 45,000 accounts with gross loan amount of RM8.4bn and net book value of RM928m to Seasam. Seasam will be wholly owned by the CIMB group and CIMB-bank is expected to de-consolidate these assets. This should see CIMB Bank's gross NPL ratio drop to 2.8% and the net NPL to 1.3%. Loan loss coverage will improve to 116.1% from 91.8% with no change to the group's consolidated ratio. (Starbiz)

The Selangor state government has not agreed to compensate Puncak Niaga Holdings the RM339m that has been included by the latter in its quarterly results. Menteri Besar Tan Sri Khalid Ibrahim said while it had not consented to Puncak’s subsidiary Syarikat Bekalan Air Selangor Sdn Bhd’s (Syabas) increase in water tariff, it had not considered compensating the company.
  • “The state government would like to stress that although these terms are included in the concession agreement between the state and Syabas, the terms are applicable only when the state gives its consent,” he said. Khalid said in board meetings, Kumpulan Darul Ehsan Bhd (KDEB), the Selangor state government’s investment arm, had always stated that Syabas must get approval from the state to arrive at an agreed tariff. He added that as there was no such “agreed tariff”, the question of compensation did not arise.
  • However, yesterday Khalid said by including the compensation in its 3Q09 results, Puncak did not  comply with the arrangement with the state. He said therefore, it appeared that Puncak had overstated” its profits and urged the company to take responsibility to its shareholders with regard to the state’s view.
  • Khalid said the state was in the midst of negotiating with the federal government and the state’s water concessionaires and hoped to come up with a solution that would give the people of Selangor, Kuala Lumpur and Putrajaya “the best value for money”. (The Edge)
The benchmark February CPO contract hit an intra-day high of RM2,516 per tonne – the highest since Aug 13 – before closing RM4 higher at RM2,482 per tonne from Tuesday’s close of RM2,478 per tonne yesterday. 
  • A CPO futures trader told StarBiz that CPO prices would continue to gain momentum on positive factors such as the current abnormal heavy rainfall that would affect production in the coming months and encouraging exports for November. “CPO is still the world’s most tradeable edible oil with continued strong demand in India, China and the United States mainly for food-related industries,” the trader added.
  • Both independent cargo surveyors Intertex and Societe Generale de Surveillance (SGS) yesterday reported higher CPO exports for Nov 1-25. Intertek said Malaysia’s palm oil exports rose 1.2% to 1.13 m tonnes while SGS reported 1.18m tonnes, up 6.4% from October. (Starbiz)
Consumers in Malaysia pay some of the highest prices for broadband in the region, one major reason being the monopoly which Telekom Malaysia holds on submarine cable landing rights, said Ryaz Patel, Intel Electronics country manager for Malaysia and Brunei. 
  • He said Singapore users pay nearly US$85 or US$10.20 mbps. For 4mbps in Malaysia, consumers pay US$76 or US$35 mbps. Vietnam's 3mbps bandwidth - although a tad slower - costs users US$50.55, or US$16.85 mbps. There is no shortage of gateway service providers seeking landing rights because of the pent-up demand for quality bandwidth, but the government must deregulate or liberalise gateways in order to improve competitiveness by providing larger broadband at lower costs, said Patel.
  • Malaysia Australia Business Council vice-chairman Michael Halpin said large technical documents from Australia had difficulty getting sent over because of the poor quality broadband. 'Australian and American investors see this as a nuisance and an impediment to them to do business successfully here,' he said. (SBT)
136 companies have shown interest to participate in Syarikat Prasarana Negara Bhd’s open tender bidding for the RM7bn extension of its two LRT lines project in the Klang Valley, says Group MD Datuk Idrose Mohamed. The contractors had collected prequalification forms from Prasarana to be submitted in a month’s time for assessment and shortlisting of candidates to bid for the project. 
  • Prasarana would also assess the feedback from the three-month public display for the proposed LRT line extension ending Dec 14, said Idrose.“If everything goes well, the construction of the LRT extensions will start in 1Q10,” he said. When completed in three years, the LRT extension is expected to double the current daily passenger volume of 170,000 for Ampang LRT and 180,000 for Kelana Jaya LRT. (Starbiz) 
The auction of 3G spectrum in India, is likely to be deferred by a few weeks, as the Department of Telecom (DoT) of India, and the defence ministry will require more time to coordinate and assign the airwaves vacated by the armed forces. While the armed forces have agreed to vacate 25 MHz of 3G spectrum for the auctions by December 7, officials in the know said it could take ‘several weeks’ for both ministries to work out the specific frequencies or sub-bands of these airwaves, which can be assigned to telcos
  • This could push the auction process to mid-February ‘10, an official with direct knowledge of the developments said, while adding: “The focus is to ensure that the auctions are held before the end of this fiscal. The DoT will meet the finance ministry’s target and ensure that the proceeds from the sale of airwaves are included in the government receipts for this year.” (Economic Times of India)
India will introduce MNP on Dec 31, a move that could further intensify the stiff competition and push call charges lower. Mobile Number Portability (MNP), which allows users to retain their number even if they switch operators, will be introduced in two phases, the telecoms regulator said, first in the metro cities and the so-called Category A telecom zones and in other areas by March 20.
  • The regulator also notified certain charges associated with MNP and said switching charges for users must not exceed Rs 19. However, operators are free to levy any amount less than or equal to this charge. (Economic Times of India) 
Malaysia Airports (MAHB) said it will continue to depend on increasing revenue from its commercial activities, although overall passenger movements have grown. MD Tan Sri Bashir Ahmad said the group is relying on its Retail Optimisation Programme (ROP) to ensure that its overall revenue growth is sustained. Efforts on ROP so far has contributed double-digit growth increase in its commercial revenue, comprising of rental, advertising, retail, food and beverage activities. (BT)

Malaysia Airlines (MAS) will launch 2x new weekly non-stop flights from Kuala Lumpur to Brisbane from March 28 2010. The flights, on Fridays and Sundays, will complement its current five times weekly flights from Kuala Lumpur to Brisbane via Sydney. (BT)

MMC Corp said an initial pact with Dubai World to develop a major industrial project in south Johor has been terminated. The proposed plan, announced in Sep-07, was to have comprised oil terminal activities, drydocks, a shipyard, conventional cargo handling facilities, logistic parks and real property development on MMC's 913ha at Tanjung Bin, Johor. MMC gave no reason for the termination. However, it had said on August 18 that Dubai World was reassessing its priorities because of the global financial crisis. Dubai World, set up by the Dubai government, is a holding company for a specific portfolio of investments. (BT)

The Naza group, through Naza Kia Sdn Bhd, will launch four Kia models next year as it seeks to double sales volume to 26,000 units, its chief said. Two of the models will be replacements of the Sportage and Sorento multi-purpose vehicles, Naza group joint executive chairman SM Nasarudin SM Nasimuddin said. The other two will be the all-new Kia Soul and a Forte coupe model. Nasarudin added that the Forte, locally assembled at Naza's manufacturing plant in Gurun, Kedah, could be exported to Brunei, Thailand and Indonesia. (BT)

Mercedes-Benz Malaysia Sdn Bhd expects the improving market landscape and launch of new car models to drive sales of its passenger cars to over 4,000 units next year. President and chief executive officer Peter Honegg said next year’s passenger car market was projected by the Malaysian Automotive Association to be better than this year. He said the company sold 4,200 passenger cars last year and planned to sell between 200 and 300 units more than its initial target of 3,600 units this year.
  • Honegg said Mercedes-Benz currently held about 43% in the luxury car segment and it aimed to improve its position “a little” next year. “There are more competitors coming in but we try to maintain the leading position in this segment,” he said. (Starbiz)
Penang Port has invested RM1.1bn over the last 5 years to upgrade infrastructure at the port and container terminal as part of initiatives to pump-prime the state economy, says Penang Chief Minister Lim Guan Eng. To realise Penang Port's mission to provide worldclass shipping services, Lim said the port's latest and efficient logistics would be the yardstick to increase the number of merchant ships and containers anchoring at the port. 
  • Lim also called on the Federal Government to re-start the RM353m project to deepen the North Channel at Penang Port to facilitate smooth sailing-in of container vessels. " If the deepening work is not done in compliance with environmental requirements, it will harm plans to turn Penang into a green state," he said. He also hoped projects promised for Penang under the current Ninth Malaysia Plan but have not been implemented due to various reasons would be carried forward to the 10th Malaysia Plan. (Bernama)
Federation of Malaysian Manufacturers (FMM) Johor Branch argued against consolidation of the containers handling functions between PTP and Pasir Gudang ports, citing potential disruption of manufacturing operations, substantial increase in logistical costs, inadequate readiness at PTP and concerns on cargo security. Shippers operating out of Johor have strongly opposed the proposed port rationalisation exercise involving Johor Port in Pasir Gudang and Port of Tanjung Pelepas (PTP) in Johor. 
  • Under the rationalisation exercise, all container operations would be moved to PTP while Johor Port would handle all other cargo such as bulk and liquid shipments from Jan-10. It also estimates that the haulage costs are expected to double after taking into account the higher port charges at PTP. “The sudden introduction of the weighbridge charges of RM7.50 per container at PTP is unjust.
  • It was never implemented prior to the rationalisation,” it added. FMM Johor Branch also said PTP was not ready for such a move because there are only two main line operators operating in PTP notably Maersk and Evergreen. (BT) 
Bonia Corp plans to set up a factory in Guangzhou, China, in the next 1-2 years, says Group finance director Chong Chin Look. Malaysia now contributes 70% to the company's earnings. The rest are from Indonesia, Singapore, Vietnam, Thailand, Syria and Dubai. Bonia has identified a few sites in Guangzhou and is finalising land matters with the local authorities. "Looking at our turnover of more than RM300m, we need more capacity to cater to the growing demand for our products," he said. 
  • The proposed Chinese plant would be its second wholly-owned asset. It has one in Malacca, set up in 1990, which is producing 200,000 Bonia leather bags annually. Bonia currently has a plant in Guangzhou, but on lease, operating since Nov-08. It makes 100,000 pieces of bags and wallets annually, but would double in a few years in tandem with demand, Chong said.
  • Bonia ED Alex Chiang said the company has also identified South Africa and Sweden as new markets to grow its business. "We have entered into formal agreements with local distributors there. We aim to set up our own outlets but it would be a long-term strategy," Chiang said. He sadi Bonia will open 10 new counters and outlets over the next 12 months. We have capital expenditure of RM10m for this and also to upgrade a few of our existing outlets," Chiang said. (BT)
Dijaya Corp is buying the land in Jalan Ampang on which the historical Bok House used to sit for RM123m cash. The price translates into about RM2,200/sf, which is slightly below the RM2,588/sf that Sunrise paid last year for the land where Wisma Angkasa Raya is located. The price also means that the property market in the Kuala Lumpur City Centre (KLCC) area is still firm. (BT)

Kelington Group, an ultra high purity (UHP) gas and chemical delivery systems provider, has been awarded a job worth RM5m in a wafer fabrication facility in Dalian, China. The group, via its subsidiary Kelington Engineering (Shanghai) Co Ltd, will be responsible to design, install, test and commission the UHP water and chemical delivery system. The facility is expected to be completed by 1Q10. (BT)

Frontken Corp hopes to raise up to RM31.8m through a rights issue. It plans to issue up to 288.9m new Frontken shares together with 288.9m warrants, on the basis of two rights share with two warrants, for every five existing Frontken shares. Proceeds raised will mainly be used to reduce borrowings, as well as for future expansion plans. (BT)

Golden Frontier is spending over RM20m to expand its operations in Penang and Vietnam for the rest of this year and the 1H10. Executive chairman Datuk Khor Teng How said that the market demand for corrugated packaging materials in Vietnam and Malaysia, estimated to be about RM2.5bn in 2009, was expected to grow by 10% in 2010. 
  • “The driver for growth would come from food and beverage products, electronic and electrical goods, and wood-based furniture,” he said. The expansion exercise would increase the group’s yearly ouput to 120,000 tonnes next year from 90,000 presently, he added. (Starbiz)

Wednesday, November 25, 2009

20091125 1822 FCPO EOD Daily Chart Study.

Crude palm oil futures traded mostly higher today after tested the a new high at 2518 followed by some late profit taking activities pushed the price down to closed up only 4 points at 2482. Today's doji bar candle ended near the upper Bollinger band with the band width continue to expand = further upward movement still insight. However, MACD Histrogram turned slightly lower = profit taking activities could take place anytime to close position ahead of a long weekend. Immediate resistant rest at the 2525 level and support at 2450 level.
When to buy : buy at support or weakness with quick cut loss and profit target or buy on break up with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20091125 1802 FKLI EOD Daily Chart Study.

A tight 4 points range trading on FKLI ended the day up 1 point to closed at 1268.5 with high rollover volume changed hand. Today 7th correction candle still remained slightly above the middle Bollinger band with the band width continue to turned inwards = market still in side way range bound correction phase. MACD Histrogram dropped lower by a small fraction = no significant seller action in the market. Immediate support stands at the middle Bollinger band and follow by the 1262 level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with quick cut loss and profit target.

20091125 1745 DJIA EOD Daily Chart Study.

The Dow closed marginally lower at 10433.71 down 17.24 with lower volume traded. Daily chart wise, Bollinger band reading still suggesting an upside biased movement market but however MACD Histrogram taking an opposite call by turned lower telling us that selling mood remained strong. With these mixture signals and for the sake of risk management, it would be better to only do intraday trading with quick cut loss and profit target.

20091125 1454 FKLI Mid Day Hourly Chart Study.

A narrow range trading rollover day for FKLI that closed the first session up 3 points at 1270.5 with high volume traded. At last looked market opened the second session higher above the middle Bollinger band with the band width stay nearly unchanged = market could possibly trade higher but with limited upside or stay side way. MACD Histrogram edged higher = buyers activities outnumber sellers. Immediate support at 1264.5 and resistant at 1274. Patience game ahead.

20091125 1442 FCPO Mid Day Hourly Chart Study.

Crude palm oil traded firmer with high volume, up 15 points higher at 2493 in response to steady export figure released that up 1.2% to 1,131,258 tonnes by export cargo surveyor ITS. Hourly chart wise, price tested the physiological level of 2500 and continue to stayed above the middle Bollinger band with the band width narrowing = market upward movement could stay side way range bound for a small while. MACD Histrogram stayed flatted = buyer is still trying to take control of the market. Overall market still favour an upward movment with temporary side way consolidation with immediate support at the middle Bollinger band and resistant at 2520~2525 level.

20091125 1101 Malaysia Corporate News.

The Federal Land Development Authority (Felda) is set to sell electricity to Tenaga Nasional (TNB) by end-2011 when Felda's biomass-powered energy plant at its land scheme in Jengka, Pahang, will be ready. Felda Holdings general manager and head of biomass division of corporate planning and biomass, Ahmad Nor Azman Jamin, said the plant's connectivity to the national power grid will be its first initiative to support the government's Small and Renewable Energy Programme (SREP). "The plant will generate 10 megawatts (MW) of power and we will sell it to TNB at 21 sen per kilowatt hour," he said. Ahmad said the biomass plant in Jengka will use 300,000 tonnes of empty fresh fruit bunches or oil palm waste (biomass) derived from its seven mills. It will also be modelled after the group's existing biomass plant in Sahabat. (BT)

The Sabah state’s electricity shortage has become even more acute, with power tripping unexpectedly at several stations. Sabah Electricity Sdn Bhd (SESB) said the tripping had forced power generation to drop by about 79MW. SESB’s corporate communications manager Chendramata Sinteh said load-shedding had to be implemented as they could not meet the peak demand of 730MW. (The Star)

Syarikat Prasarana Negara (SPNB) is evaluating 136 contractors, under a prequalification exercise, for the proposed extension of the Kelana Jaya and Ampang Light Rail Transit (LRT) lines which are estimated to cost RM7bn. "We have given them a month to fulfil the requirements. We have to pre-qualify them to determine if they can undertake the job," said its group managing director Datuk Idrose Mohamed. He said it was up to the contractors concerned to bid for the project via joint ventures or on their own. "Following the pre-qualification exercise, we will call for the actual tenders by early next year," he said.
  • "There are lots of processes involved in the extension of the LRT lines. We have to do a final design and submit for approval to the local authorities. "Once everything is completed, we will start the actual construction which is targeted for early next year," he said. He also disclosed that the project will be completed in three years.
  • Meanwhile, Idrose said Prasarana will be introducing a longer, four-car train for the Kelana Jaya LRT line, a key metro system in KL. He said the first batch of the four-car train, which is currently undergoing testing, will be operational by year-end, and a total of 35 trains will be delivered in one and a half years, with four being delivered quarterly. (Bernama)
The Islamic Financial Services Board (IFSB), in collaboration with the Islamic Development Bank (IDB), hopes to put in place a liquidity management framework by next year, Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz said. As part of global efforts to enhance the efficiency of Islamic financial institutions in managing liquidity at the national level as well as across borders, a management task force has been set up to look into the matter, she said. (BT)

Melewar Industrial Group (MIG) hopes to secure as much as 20% of the estimated RM20bn water pipe replacement contracts on offer nationwide. Executive chairman Tunku Datuk Ya'acob Tunku Abdullah said the pipe replacement contracts are likely to be offered next year by the newly established Pengurusan Aset Air (PAAB). "With the formation of PAAB, I believe there is a strong possibility that the company will actually start renewing (the country's) water pipes next year," he said.
  • Tunku Ya'acob also said that MIG's associate Mycron, which produces high quality cold rolled coil (CRC) for national carmaker Proton Holdings, is also in talks to supply the high quality CRC to Perusahaan Otomobil Kedua Sdn Bhd. CRC in the automotive sector contributes about 5% to Mycron's bottomline," said Tunku Ya'acob. (BT) 
Perodua says its new multi-purpose vehicle, known as the Alza, could help triple sales of the overall MPVs in Malaysia. Perodua outgoing MD Datuk Syed Abdull Hafiz Syed Abu Bakar said MPVs now account for about 10% of the total industry volume (TIV). A consumer study done by Perodua prior to the Alza introduction indicated that there was potential for the MPV segment to make up 30% of the TIV, Syed Abdull Hafiz said. This indirectly means that the Alza will soon control about two thirds of the segment now dominated by Proton Exora, Toyota Avanza and Nissan Grand Livina. Syed Abdull Hafiz expects the Alza to rake in monthly sales of 4,000 units next year. Since bookings were opened on November 13, Perodua received orders for about 3,500 units of the 1.5-litre MPV. (BT)

Edaran Otomobil Nasional's (EON) subsidiary Euromobil, the distributor of Audi vehicles in Malaysia, has awarded RM5.1m worth of construction works to Comtrac Builders, a 70% unit of DRB-HICOM. The construction works are for the Audi hangar at Glenmarie, Shah Alam, and three other branches located in Kuala Lumpur, Juru in Penang and Johor Baru. Construction work for the Kuala Lumpur branch is expected to be completed by next month, while the Audi hangar, Juru and Johor Baru branches have been completed. (BT)

AirAsia X has started flying five times a week from Kuala Lumpur to Abu Dhabi, expanding its network into the Middle East. Abu Dhabi has the potential to become a hub for the carrier to expand its network into the Middle East. "I take it (Abu Dhabi ) as a priority market. We are now focusing on adding more capacity and working on the service's efficency. We will focus on Abu Dhabi first, before expanding our network further into this region," CEO Azran Osman-Rani said. (BT)

Tune Talk is in talks with two of its three Singaporean counterparts for a potential international roaming partnership. The talks, if they go well, will allow Tune Talk to offer customers significantly lower international direct dialling rates. "Roaming is a big business. Things that were discussed include technical issues as well as call flows," said CEO Jason Lo. The company, which launched its service in mid-Aug, currently has more than 200,000 subscribers. By year-end, it is confident to hit the 300,000 mark. (BT)

Kurnia Asia, the country's largest general insurer, said its overseas operations in Indonesia and Thailand will contribute 20-25% to the group's top line in the next three to five years. "We expect the overseas units to grow at strong double digits in the medium term," Kurnia Asia director of corporate planning and investor relations, James Tee said. To meet its goals, plans include expanding the group's distribution channels via bank tieups as well as beefing up its agency force.
  • Overseas business now contributes 10%, or RM85m, to the group's gross premium income of RM1.05bn for FY6/09.
  • Kurnia Asia acquired PT Kurnia Insurance Indonesia in 2007 and a 25% stake in Kurnia Insuran-ce (Thailand) Co Ltd in Dec 08. The group has invested about RM43m in both the foreign units (RM17m in Thailand and RM26m in Indonesia). Looi said there is no immediate plan to raise capital for both units. (BT)
The Federation of Malaysian Manufacturers (FMM) Johor branch is opposing a proposed port consolidation plan involving MMC Corp’s wholly-owned Johor Port and 70%-owned Port of Tanjung Pelepas (PTP). The plan would see Johor Port being dedicated to handling on bulk cargo while PTP would serve as a dedicated container port from 1 Jan 2010. FFM Johor said it had expressed “grave reservations” on the proposed move as it would cause serious repercussions and disruptions in the operations of manufacturers in the industrial estates (Financial Daily)

MMC Corp said that some foundation works for its multi-billion dollar JV project, Jazan Economic City, in Saudi Arabia has been completed. MMC believes that the tenders for the proposed refinery, aluminium smelter, water desalination and sewage treatment plants will be awarded over the next few months pending some adjustments involving possible equity involvement of Saudi companies or interests in some of the projects. (Malaysian Reserve)

British American Tobacco (Malaysia) plans to dispose of a parcel of industrial land in Sabah, which has been unoccupied since early this year, for RM1.9m to an individual. The disposal of the 0.806ha-acre land includes a single-storey leaf store with an attached double-storey office, one single-storey tobacco store and one single agriculture inputs (fertiliser) store. Proceeds from the disposal will be used for working capital. (BT)

AKN Technology, a provider of manufacturing and advanced technology products and services to the semiconductor industry, hopes its financial position will strengthen by 2HFY6/10. CEO Zakaria Merican said the group would now focus on its recovery plan. Zakaria also said the group had proposed to be involved in the manufacturing and trading of gloves and rubber products via the proposed acquisition of Nobel Gloves Sdn Bhd but the application was rejected by the Securities Commission, which among others, required the group to address the Regularisation Plan. (Bernama)

Rail would be a good option to help Malaysia increase public transport usage among its population from less than 16% to 25% by 2012, says Scomi Engineering SVP Mike Dickinson. Aware that rail investments need massive capital outlay, he said the government can ease such financial burden and associated risks by teaming up with companies under the public-private partnership or 3P. (BT)

QL Resources says it may be ready to build the first commercial scale biomass power plant on new technology it developed in the next FYE3/11. "We are going to build at least one plant. This will be the first of its kind. Nobody has done it on a commercial scale before," MD Chia Song Kun said. (BT)

New mobile operator XOX Com Sdn Bhd (XOX Com) is confident of reaching 1m subscribers by end-2010 from the 100,000 currently, said president, Ng Kok Heng. He also said that the introduction of postpaid and mobile internet services in two months will further support XOX Com's efforts to achieve the subscriber target. Ng said XOX Com is also planning to increase its dealer network to 10,000 nationwide by mid-2010 from the 7,500 currently to support the growing subscriber base. (Bernama)

Tuesday, November 24, 2009

20091124 1827 FCPO EOD Daily Chart Study.

FCPO closed marginally lower at 2478 down 8 points forming a doji bar candle despite weaker soy oil futures price after tested the low at 2430. Daily chart wise still biased to a bullish uptrend market for FCPO in both Bollinger band and MACD indicators reading. Immediate upside target rest at 2525 and support stands at 2401.
When to buy : buy at support or weakness with quick cut loss and profit target or buy on break up with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20091124 1733 FKLI EOD Daily Chart Study.

FKLI traded in a 8 points range market today to closed down 5 points at 1268 with higher volume traded. Once tested the middle Bollinger band support but managed to pulled itself to closed above it = possible support coming in to hold the market. Bollinger band width continue to move inwards = market still trading side way range bound. MACD Histrogram continue to head south = seller activities dominated the market today. Immediate support stands at the middle Bollinger band followed by the plotted upward trend line.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with quick cut loss and profit target. 

20091124 1659 DJIA EOD Daily Chart Study.

The Dow closed higher yesterday up 132.79 points at 10450.95 and tested another new high at 10495.6 following spillover from major regional market that closed firmer. The wide range bar candle stood higher above the middle Bollinger band = market uptrend remained intact. Bollinger band width continue to narrowing = the uptrend correction phase might not yet ended. MACD Histrogram has stopped falling and stay unchanged = buyer returned to the market only for a short term intraday gain. A mixtured of signals suggested that the market could still trade side way range bound.

20091124 1433 FKLI Mid Day Hourly Chart Study.

Down 2.5 points to closed at 1270.5, FKLI continue its side way range bound market as suggested by the chart's indicators. Hourly chart wise, the 1266.5 horizontal line will serve as the immediate support with the plotted downward line as the immediate resistant. 

20091124 1257 FCPO Mid Day Hourly Chart Study.

FCPO traded weaker after yesterday price surged to closed down 31 points at 2455 with moderate volume. Chart wise, price still holding up nicely above the middle Bollinger band with the band width stay unchanged = market remain bullish in the middle of a consolidation. MACD Histrogram sliding lower to near zero line level = profit taking activities took place. The plotted uptrend channel will likely to serve as the immediate support and resistant level. 

20091124 1027 Malaysia Corporate News.

Sources of The Australian say that Astro has taken a significant stake in Fetch TV, an IPTV start-up that is slated to launch its services in Australia next year. This is to seize the opportunity created by the Australian government's proposed national broadband network (NBN), which opens the door for new players to challenge traditional media players for a share of the country's TV viewers. Astro neither confirmed nor denied the news. (Financial Daily)
This news is a surprise and should be positive for Astro in the long run as it attempts to expand its media reach regionally. However, there could be start-up risks involved going by the "greenfield" nature of the venture and stiff competition. Astro may adopt its Malaysian pay TV model there, which would leverage on Australia's high population base.

The government is working on a plan that allows households to sell excess solar power to the national grid to spur usage of renewable energy, said Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui. This will form part of the new Renewable Energy Act that is expected to be tabled in Parliament by next June, the minister said. A feed-in tariff mechanism modelled after Germany's system will be introduced under the new law. (BT) 

Tenaga has signed a Renewable Energy Power Purchase Agreement (REPPA) with Achi Jaya Plantations Sdn Bhd for 21 years to purchase electricity from the company for RM2.3m/year. The plant has an export capacity of 1.25 MW. Todate, the total capacity under the REPPA is 75.8 MW. (BMSB)

CPO rose to its highest price in more than three months on the back of bullish sentiments on commodities and strong trading interest. The contract for February delivery rose 2.8% to RM2,486 per tonne, the highest since mid-August. Jim Teh, a palm oil trader at Interband group, said CPO was mainly boosted by speculative interest as volume was low. Societe Generale de Surveillance said Malaysia's palm oil exports rose 16% in the first 20 days of November. Another surveyor, Intertek said palm oil exports increased 15% for the same period. (Financialdaily) 

Perodua expects to capture 33.3% share of the local car market next year, citing better sales for its models, an improving market and better purchasing power of consumers as factors. For the first 10 months this year, its market share was 31.1%, said group MD, Datuk Syed Abdul Hafiz Syed Abu Bakar. 
  • Besides the Myvi and Viva models, the local car manufacturer was also banking on its newly launched MPV, ALZA, model to rake in more sales.
  • ALZA, for which booking was opened 10 days ago, has received 3,500 bookings up to 2pm yesterday. (Bernama)
Despite the current market outlook, Proton expects sales in the domestic and overseas market to improve with the gradual introduction of the Saga and Exora in the global markets, beginning with the Asean region. Meanwhile, MD Syed Zainal Abidin said the carmaker hopes to announce a strategic partner ‘very soon’, without naming names. “It will be a partner that is good for the country and the eco-system. It will be a much bigger collaboration,” he added. (Malaysian Reserve)

Domestic rebar prices in Malaysia have remained flat in the past two weeks on weak demand, sources said. Malaysian mills and traders said rebar prices were at RM1,950-2,100/tonne, unchanged from a fortnight ago. But many mills or traders are undercutting prices to encourage sales, according to traders and mill officials. 
  • November and December are traditionally off-peak months due to the upcoming festive season, a Malaysian mill official said. "Mills often give RM25-50 discount to close deals,” he said. The low demand has also been due to rains that have slowed construction projects, a Singapore-based trader with operations in Malaysia said.
  • Demand in Malaysia is not expected to increase until January, when post-seasonal demand returns, market participants said. But no further price cuts are expected as international prices are showing an upward trend recently, sources said. "We are just trying to maintain the current level," the mill official said. (Metal Bulletin)
MMC Corp's Port of Tanjung Pelepas (PTP) and Johor Port are awaiting the green light from the Government to consolidate and rationalise their operations. Under the proposal, Johor Port’s container operations in Pasir Gudang will be moved to PTP in Gelang Patah, turning Johor Port into a non-containerised port, while PTP will focus on its forte of handling containerised cargo. “The Government is still deliberating on the proposal but is expected to make a decision probably before the end of the year or early next year,” industry sources said.
  • They said the Government was likely to approve the proposal, citing the move was of national interest and that the Transport Ministry and the Malaysian Industrial Development Authority (Mida) had been tasked to oversee its implementation. Senior officials from MMC Corp Bhd, Johor Port and PTP had on Oct 5 briefed the Transport Ministry on the proposal. A closed-door briefing was held recently between senior officials from Mida, MMC, Johor Port and PTP with the companies in Pasir Gudang to discuss the proposal. However, no agreement was reached between the parties concerned.
  • Another meeting will be held next month as shippers had raised concerns earlier of the higher haulage costs likely to be incurred if they were to use PTP instead of Johor Port. “However, they (shippers)  must look at the positive side – the increase (in cost) will be offset by the time saved through direct sailings out of PTP,” the sources said, adding that unlike PTP, Johor Port could only cater to smaller vessels. (BT)
Unicorn Investment Bank BSC may make three purchases, including buying a stake in Bank Islam Malaysia from Dubai Group LLC, as the financial crisis lowers corporate valuations. "We understand Dubai Group is accessing its own options with regard to that investment," managing director of Unicorn's strategic mergers and acquisitions, Fred Stonehouse said.
  • "We feel we know the Malaysian market well and it's a well developed Islamic market so any opportunities that becomes available for a major stake, will be taken". Unicorn plans to use its strategic acquisitions fund and money from co-investors and shareholders to finance purchases, which may include a minority stake in a Bahrain-based Islamic institution and controlling sake in Gulf based asset management firm, Stonehouse said. (Bloomberg)
DNP Holdings, will launch its most expensive residential project dubbed "Le Nouvel", worth an estimated RM1bn, in Kuala Lumpur by end-2010 or early 2011, says GM Lee Kong Beng. Le Nouvel comprises two residential towers with 43 and 49 floors respectively, offering a total of 197 condominium units ranging from 1,800-4,700sf. 
  • The towers will be built near Avenue K on Jalan Ampang. "We have the approvals to do the project, but the current market conditions are unfavourable to a launch. A better timing would be a year from now," says Lee.
  • DNP may sell the buildings enbloc if it receives good offers. DNP's immediate focus is to launch 25 units of luxury condominiums in a five-storey block along Jalan U-Thant, Kuala Lumpur, for some RM200m, in 3-6 months from now. DNP will also launch Block B and D of Verticas Residences in Bukit Ceylon, Kuala Lumpur, pending sales of Block A. (BT)
Faber Group has won an AED154m (RM142m) contract to maintain and upgrade facilities and projects at Madinat Zayed – Zone-1 in the Emirate of Abu Dhabi. The work was awarded by the Department of Municipal Affairs for the Western Region Municipality, Faber said. The annual contract, which can be extended for another three years, comes with certain conditions like a bank guarantee and the submission of insurance documents. (BT)

The four-year court battle between KSL Holdings and Danaharta Hartanah Sdn Bhd over parcels of land measuring 1,516 acres that are currently under companies owned by Tan Sri Syed Mokhtar Albukhary ended yesterday with the Federal Court shutting the final door on the Johor-based property developer. The Federal Court also disallowed the company from appealing in the matter. (Financial Daily)

TA Global is looking at more than just hospitality projects in Canada and Australia. “If we decide to do something, future projects in those countries would most likely take the form of JVs,” TA Enterprise’s MD and CEO Datin Alicia Tiah said. (Financial Daily)

KPJ Healthcare expects revenue to hit a record RM2bn in 2012 with more hospital openings. Its chairman Tan Sri Muhammad Ali Hashim said the group is confident of achieving the target based on the favourable performance of the Johor Corp Group and other business strategies including the opening of more hospitals. 
  • "We now have 19 hospitals nationwide and are in the process of identifying locations for new hospitals," he said. Under the expansion plan, KPJ Healthcare is looking at either acquiring existing private hospitals or building new hospitals. (BT) 
Supportive International Holdings has signed a strategic cooperation agreement with Digital China Advanced Systems Services Ltd. The deal entails commissioning Digital China to provide technical advisory service in relation to the Value Added Operations Project in Hunan province Chang De municipal in China. Supportive International Holdings will pay 2m yuan to Digital China for its technical advisory services. (BT)

Monday, November 23, 2009

20091123 1825 FCPO EOD Daily Chart Study.

FCPO started the week positively by closing 67 point higher at 2486 in unison with soy oil futures bullish price development. Looking at the chart, all indicators still agreed on the bullish development of crude palm oil. However, today's white candle closed above the upper Bollinger band shows that today hikes might be a little over extended to triggered some profit taking.
When to buy : buy at support or weakness with quick cut loss and profit target or buy on break up with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target. 

20091123 1743 FKLI EOD Daily Chart Study.

4.5 points range trading for today's FKLI doji bar candle that closed 2 points higher at 1273 with thin volume traded. Price still stay above middle Bollinger band with band width contracted = market uptrend correction side way market is likely to continue. MACD Histrogram taken a little step lower = buyer are not interested to participate in the market. Side way range bound market ahead with immedia support stands at the middle Bollinger band. 
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20091123 1714 DJIA EOD Daily Chart Study.

Dow ended marginally lower to closed at 10318.16 down 14.28 point with higher volume. All indicators suggest that the uptrend correction phase side way range bound is likely to continue. Having said that, major Asia and European market traded mostly in positive tone could spurt some short term buying interest when US market open.     

20091123 1254 FKLI Mid Day Hourly Chart Study.

FKLI traded unchanged to closed at 1270.5 staying side way range bound in the first half session to continue its correction phase with lower volume traded. All the chart's indicators suggesting a side way range bound market downward biased market in FKLI at this point of time. It would be difficult to identify the direction of FKLI price movement unless price break away from the plotted 2 horizontal lines at 1277 and 1266.5 respectively.

20091123 1239 FCPO Mid Day Hourly Chart Study.

Crude palm oil futures open gap up due to stronger soy oil futures price and traded side way the whole morning to closed 21 points higher at 2440 with low volume traded. At closing, price managed to keep staying at the upper Bollinger band with the band width continue to widen = market sentiment still favour the upside. MACD Histrogram continue to edge up higher buy slowly = buyer activities dominate the market by a small margin. More volume transaction is needed in order for the upward price movement to sustain or else market is likely to trade side way range bound with immediate support stands at 2419 level.

20091123 1125 Malaysia Corporate News.

Malaysia's finance ministry has issued a commercial banking licence to China's largest bank, the country's central bank announced last Friday. The licence for the Industrial and Commercial Bank of China Limited (ICBC) follows the signing of an arrangement between the China Banking Regulatory Commission and Bank Negara in the early part of the year, it said.
  • "This licence is separate from the new commercial banking licences that will be issued under the liberalisation initiative and is therefore part of a very limited number of banking licences that Malaysia may issue from time to time under a bilateral arrangement." The issuance of the licence comes a week after both central banks signed a deal to increase cooperation in banking supervision during a state visit to Malaysia by Chinese president Hu Jintao. (AFP)
More banks are expected to roll out renminbi-based trade settlement as the new offering will be an additional stream of fee income. The opportunity to offer such a service arose late last year when the Chinese Government launched its pilot programme for trade settlement in renminbi for 400 designated mainland China companies and 12 countries, including 10 in Asia. Malaysia-based banks that currently offer renminbi-based trade settlement include Maybank, Standard Chartered Bank Malaysia and HSBC Bank Malaysia. Another large bank in the country is expected to launch similar services soon. (Starbiz)

Jerneh Asia said some foreign multinational insurance companies have expressed interest to buy the company. The general insurer is 80% owned by Jerneh Asia and the balance by Paramount Corp Bhd. In a joint statement issued yesterday, Jerneh Asia and Paramount Corp said in view of these expressions of interests, they have made applications to Bank Negara Malaysia for the commencement of preliminary negotiations with the interested parties. (BT)

Splash’s RM196m suit against Puncak Niaga’s 70%-owned Syabas for not committing to its capacity payments to Splash was mainly due to cashflow issues arising from the absence of the scheduled 37% water tariff hike for 2009. Syabas has only been paying 50-60% of what it owes. This situation is affecting water treatment players like Splash which need to satisfy their commitment to bondholders/debts. On the takeover front, The Edge’s sources said that PAAB’s due diligence on the values of water assets in Selangor is expected to be concluded by 2 Dec 09. PAAB is likely to make an offer for the water assets owned by the Splash, Konsortium Abass, Syabas and PNSB. (Edge Weekly)

Hap Seng Plantation Holdings is buying Pelipikan Plantation Sdn Bhd for RM31.4m. Hap Seng Plantation said that Pelipikan was currently the registered sub-lessee of 251 parcels of land in Kota Merudu, Sabah, which was contiguous with its existing plantation estate in the same area. It said the proposed buy was part of the group strategy to acquire more plantation land around the existing plantation area, which would strengthen its position there. (Malaysian Reserve)

Permodalan Nasional Bhd (PNB) may convert Bangunan MAS into a business or fivestar hotel and demolish the multi-level podium next to it to make way for a luxury serviced apartment tower worth a combined RM1bn PNB bought the 35-storey building on Jalan Sultan Ismail from Malaysia Airlines (MAS) three years ago for RM130m. The building, the former MAS headquarters, is currently 60-70% tenanted at an average RM3.50/sf. Its biggest tenants are Jabatan Kebudayaan dan Kesenian Negara and Syarikat Perumahan Negara Bhd, each occupying 10-12 floors. 
  • It is learnt PNB is finalising details of the building plans and is getting the necessary approvals from the relevant authorities.PNB president Tan Sri Hamad Kama Piah Che Othman said the redevelopment of Bangunan MAS would take place "soon". (BT)  
AirAsia is gearing up for network expansion in India with more destinations after achieving a wide coverage in China.The company currently has about 200 flights a week to seven cities in China. AirAsia regional head of commercial, Kathleen Tan, said the budget carrier had been looking at the Indian market for a long time and that it took a while to go there due to a lot of documentation issues. “There is a lot of demand for flights between India and Kuala Lumpur. The expansion of the Indian routes will help open up the tourism industry in both countries and stimulate the labour market as well,” she said. (Starbiz)

Freeseas, which operates smaller handysize bulk carriers, was confident the dry bulk rally this month was sustainable into 2010 as it had been supported by rises for all vessel sizes, not just capesizes. “What we have seen recently and I find very interesting is that, for the first time, all segments are moving in the same direction,” said chief executive Ion Varoukaxis.
  • “I remind you that last time we had an improvement in cape rates, handysizes had been pretty flat. Now, all segments are moving in the same direction. We feel this is a significant change in the direction [of the market]. For the smaller sizes, we see this as a sign of sustainable demand,” he said. (Lloyd's List)
Although a swollen bulk carrier orderbook of 100m dwt is scheduled to enter service next year — representing 20% of the current fleet — Navios Maritime Holdings was optimistic about the balance between supply and demand.
  • “It remains a real doubt as to where we are, if we meet the ambitious delivery schedules and whether these newbuildings can be financed,” president Ted Petrone said.
  • Congestion and delays at loading and discharge ports are the hot topic of the moment, with at least 130 capesizes from the 930-strong global fleet thought to be waiting to berth. “Remember, congestion is not the driver of the market — it is the demand behind the congestion that’s really driving the market,” said Mr Petrone. “This demand is coming from China and now the OECD countries are also getting their act together on the steelmaking process.” (Lloyd's List)
Tenaga is the best-ranked electric utilities in Asean in Platts Top 250 Company in 2009, an energy industry award that recognises the outstanding financial performance of top energy companies.The annual rankings by Platts measures companies’ performance last year using four key metrics – asset worth, revenues, profits and returns on invested capital. In Asia, Tenaga took the fourth position trailed by companies such as Kansai Electric Power Co and Chubu Electric Power Co from Japan, Hong Kong Electric Holdings Ltd and Kepco. (Starbiz)

Tenaga can now proceed with upgrading works of high-voltage cables in Rawang to increase electricity supply in Kuala Lumpur and the Klang Valley. This follows the Federal Court ruling on Friday in allowing Tenaga's appeal to lift an injunction order obtained by 23 villagers in Kampung Sungai Terentang to halt the construction of the transmission line through their village. (Bernama)

The Energy Efficiency Master Plan that provides guidelines and direction for efficient energy use is being drafted and will be ready in March, said Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui. Chin said the plan will be tabled to Cabinet for consideration in 1Q 2010. According to him, the plan involved a comprehensive approach on energy in among others the industrial sector, buildings and public use. (Bernama)

Puncak Niaga Holdings has singed a memorandum of understanding (MOU) with Indian firm P&C Constructions (P) Ltd to work together to bid for a project called for by the Tamil Nadu Water Supply and Drainage Board. The proposed joined bid for an international competitive tender for the pre-qualification of contractors for Hogenakkal water supply and fluorosis mitigation project for Dharmapuri and Krishnagiri Districts Package IV that would involve works on the transmission main from Madam to Hosur and Union Villages, as well as allied works.
  • Puncak Niaga said both itself and P&C would look to form an unincorporated joint venture (JV) with it holding a controlling 60% stake and the Indian form holding the 40% balance. (Malaysian Reserve)
Star expects to get RM111m in profit under a proposal to redevelop its Section 13 property via a JV. It is learnt that Star will team up with a reputable developer and secure up to 30% share of the GDV in exhange for the use of its land. The redevelopment of the site is estimated to cost RM215m with GDV of RM370m. The site meassures 2.4 ha and is valued at RM48.3m. The development involves construction of four blocks of office. (FInancial Daily)

TA Enterprise (TAE) does not plan to enter the investment banking business now, said Group MD Datin Alicia Tiah. Premium to apply for a investment banking licence was costly compared with the amount of work in Malaysia. TAE would have to pay RM52m if it wants an investment banking status.
  • "It doesn't make economic sense to pay that much premium to be an investment banker, especially when the field is overcrowded and there are not enough jobs to go around. Its focus now is to expand its stockbroking arm and it may do venture capital as well. (BT)
Sands China and parent Las Vegas Sands Corp raised HK$19.4bn in a Hong Kong share sale conducted at the low end of the offered range. A total of 1.87bn shares were sold at HK$10.38 each, compared with the HK$10.38-13.88 range that the company had sought, according to Bloomberg data. The sale values Sands China at HK$83.4bn. Sands China's share of the proceeds, together with US$1.75bn in bank financing, will help it resume construction of the 1.24m sq m casino-resort that was halted in Nov-08 after credit markets seized up and revenue dwindled. (Bloomberg)

Bina Puri Holdings is planning a luxury resort development in Kota Kinabalu that could cost more than RM1.5bn, says MD Datuk Henry Tee Hock Hin. Tee said it would be Bina Puri's first luxury development of such scale. Bina Puri is in talks with local developers and foreign parties, and a joint-venture company will be set up once all parties reach agreement.
  • "It is too early to say when the project will start, but we are looking at it seriously. What is important is to get the right partners in to build it together. "We have seen a few parcels of land. BPCSB will ink some deals soon for the project," Tee said. Tee also said that Bina Puri, will launch Phase 2 of its Jesselton condominium project in Tuaran, Kota Kinabalu, costing some RM50m. Phase 1, comprising 133 luxury condominium units worth RM64m, was sold within a year of its launch at end-2006. (BT)
Bumi Armada and Vietsovpetro have signed a US$700m deal with Vietnam-based Hoang Long Joint Operating Co for the lease of a floating, production, storage and offloading (FPSO) vessel to be deployed at the Te Giac Trang (TGT) oilfield, off the coast of Vietnam. The contract will run for seven years, with an option for yearly extensions of up to 15 years. Bumi Armada executive director and chief executive officer Hassan Basma declined to provide a breakdown of the contract but said the company would get a “substantial portion” of the US$700m. (Starbiz)

Samchem will invest about RM7.5m in a second partnership to expand its business in Indonesia. Samchem CEO Ng Thin Poh said the company will partner Herisun Hassan, the president of PT Prasandha Byantara Abadi (PBA), to set up a new subsidiary, which will start operations in 1Q10. Samchem will hold 60% and the rest will be with Herisun. Ng expects RM100m revenue from the Indonesian market by 2011. (BT)

Permaju Industries unit Cergazam Sdn Bhd has entered into an agreement with General Motors (Thailand) Ltd and DRB-Hicom Auto Solutions Sdn Bhd, which will see Cergazam becoming an interim Chevrolet super dealer. Permaju said that under the terms of the agreement, all vehicles supplied and imported from GM by DRB-Hicom Auto Solutions are sold and supplied exclusively to Cergazam. It said that the appointment was only temporary in nature until a permanent or regular local importer and distributor for Chevrolet products could be found. (Malaysian Reserve)

Uzma Bhd unit Uzma Engineering Sdn Bhd (UESB), which has a 35% stake in a petroleum operation in Inner Mongolia, has announced the successful completion of the Baiyin Changan Da-9 drilling campaign. Uzma said that the drilling programme was aimed at establishing a pattern for further field development as well as one strategic well in the neighbouring Da-13 field. Subject to availability of equipment and the severity of the winter conditions in Inner Mongolia, it was looking at the strategic perforation and production from the six wells in the area over the next three to four months. (Malaysian Reserve)

20091123 0928 FCPO Weekly Chart Study.

Crude palm oil closed the week strongly with a wide range bar candle and higher volume changed hand. Looking at the weekly chart, all indicators on the chart are giving supporting signal for FCPO to move higher with a potential double bottom in the forming. Immediate support stands at the middle Bollinger band level and resistant rest at the 2521 level.

20091123 0912 FKLI Weekly Chart Study.

Another doji week for the FKLI that trading 2 points lower with lower volume traded. Weekly chart wise, the doji bar candle has yet to touched the middle Bollinger band = market tone still remained positive. Bollinger band stayed narrowing = market are likely to trade side way range bound. Interesting happening to the MACD Histrogram that turned into negative territory = buyer strength to hold on to the market seems deteriorating. Immediate support stands at 1255 followed by 1250 level and resistant rest at the previous high at 1286.

20091123 0858 Commodities ‘09 Investment Inflows Head To Record $60B - Barcap

Investment inflows into commodities are heading for a record high of $60 billion this year to reach a total of $230 billion to $240 billion of commodity assets under management, said Barclays Capital in a note dated Thursday. Strong inflows during October have continued into the current month, and yearto-date allocations into the commodity sector are approaching $55 billion, displacing the previous record of $51 billion during 2006. 
“Absent any significant reversal in the macroeconomic outlook, we expect investment flows to remain strong throughout the fourth quarter 2009, heading for a record high of $60 billion for the year as a whole and with commodity AUMs likely to end the year at about $230-240 billion,” Barclays said. During November, commodities such as copper and gold rallied sharply, with market participants frequently citing a “wall of money” hitting the market as investors picked commodities as an alternative investment. This week, London Metal Exchange copper hit a 14-month high of $6,992 a metric ton, and gold peaked at a record high of $1,153 a troy ounce.
A weakening dollar and ultra-low U.S. interest rates encouraging carry trades also boosted commodities’ profile. Barclays Capital predicted different commodity markets to take on a more
“nuanced” view of supply and demand fundamentals, resulting in a more differentiated price performance within different sectors.