Friday, November 13, 2009

20091113 1906 FCPO Weekly Chart Study.

FCPO closed the week marginally higher up 26 points with lesser volume changed hand. The small body white candle managed to gripped just above the middle Bollinger band with the band width continue to hold tighter = market is testing the upside territory and may still move side way to gather sufficient strength before it can move higher comfortably. MACD Histrogram also edge up higher into the positive area = buyer still in control of the market in a smaller scale. Looking at the weekly chart, price just tested the plotted upper resistant line but with low volume and should the coming week price breached above the line with higher volume, further upside movement will be likely.

20091113 1841 FCPO EOD Daily Chart Study.

Crude palm oil futures advanced 24 points higher to closed at 2269 with lower volume transacted. Today white bar candle closed nearer to the upper Bollinger band with the band width expanding = market remained biased to upside movement. MACD Histrogram flatted nearly unchanged = both buyer and seller are taking cautions measure ahead of the Monday export data figure and also swicthing of Jan09 contract to Feb09 contract starting from next Monday onwards. Market managed to test the plotted upper resistant line but failed to break through above it. Overall market still potentially trade higher should the plotted immediate resistant line broken with supportive volume. 
When to buy : buy at support/weakness/break up with larger cut loss and profit target. 
When to sell : sell at resistant or strength with quick cut loss and profit target.

20091113 1815 FKLI Weekly Chart Study.

Weekly wise, FKLI gained 7.5 points forming a shooting star doji bar candle with lower transaction done. Trading near the upper Bollinger band with the band width narrowing = market upside movement could be limited near the upper band level. Despite price moved higher, MACD Histrogram stay just a fraction lower = buyer are reluctant to participate in the market. However, the uptrend still remained intact with immediate resistant level at 1309 and supports stands at 1262 and 1234 level.

20091113 1737 FKLI EOD Daily Chart Study.

FKLI closed the day 6 points higher to closed at 1274.5 with lower volume traded forming a white bar candle. With price still stay above the middle Bollinger band and the band width stay nearly unchanged = there still no sign of the market upward movement momentum turned deteriorating. MACD Histrogram also remained flatted = both buyer and seller are still playing defense on their respective territory. Overall market still trading within the plotted possible ascending triangle formation waiting for break up or break down.
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.

20091113 1618 DJIA EOD Daily Chart Study.

Finally the long waited pull back effect took place yesterday after a 6 straight days up resulted the Dow to end down 93.79 to closed at 10197.47. Yesterday black bar candle closed above mid Bollinger band with the band width continue expanding = market is still in an uptrend with a pull back effect took place or a possible consolidation/correction. MACD Histrogram also turned lower =  long position trader locking in profit. Immediate support stands at the 10118 level and the next one at the middle Bollinger band level. At last looked, Dow futures up 21 point and major European market opened and traded mostly on par. Hang Send Futures just closed at discount of 53 points to its cash market.

20091113 1309 FKLI Mid Day Hourly Chart Study.

FKLI ended the morning session 2.5 points higher to closed at 1271 after gap down during the opening and edge up higher after that. At the first half closed, the doji bar candle still hovering up and down at the middle Bollinger band with the band width stay unchanged = market are like to trade side way range bound. MACD Histrogram risen to the zero line level = buyer activities picked up slowly with some short covering. The immediate support level fall on the plotted upward support line and next support level at 1262.

20091113 1257 FCPO Mid Day Hourly Chart Study.

FCPO closed unchanged at 2245 with low volume traded despite news of possible flood occurs in the palm oil plantation estate. On hourly chart, price has dive through and stayed below the middle Bollinger band with the band width contracting = market  sentiment has turned negative and is likely to trade side way range bound. MACD Histrogram dip lower into the negative zone since market opened = market started the day in selling mood. Seems like market will be trading withing the plotted resistant and support lines and waiting for a break up or break down.

20091113 1027 Malaysia Corporate News.

Palm Oil : Heavy rains threaten to reduce November's palm oil output in Malaysia by a quarter as rising moisture levels sap yields and possible floods make tough the transport of the vegetable oil to refineries and ports. 
  • Estate owners and traders said that production could fall as low as 1.48m tonnes in November from a month ago as monsoon rains approach southern Malaysia's key palm oil producing state of Johor.
  • "Production was unusually high last month and it is set to fall very steeply because rains will increase the moisture content of the palm fruits," said a plantation owner in Johor."And judging by previous years, floods will definitely appear."
  • Sabah, which accounts for more than a quarter of production, has also experienced heavy rains, and planters say in some areas yields have fallen by 30 to 40% and plantation roads were submerged. (Reuters)
This will be positive for CPO price as palm oil supplies will fall short of market expectation.
We believe market is currently expecting a good crop in November due to seasonal factor.

The Sabah 2010 Budget will place emphasis on continuing efforts to improve the well being of the people. Sabah Chief Minister Datuk Seri Musa Aman said that efforts would be made to maintain the momentum in the development agenda, including improving infrastructure and intensifying the programme to eradicate poverty. Musa said the measures to be taken under the budget are expected to make the state more attractive and conducive to local and foreign investors. (Bernama)

Banks may have decided to raise home financing rates, but prospective homebuyers can still snap up selected properties at cheap rates at least until early next year. "Most banks have revised their rates on average by 50 basis points to BLR minus 1.8%, but they don't want to make a drastic revision and incur the repercussions. So the end-financing for selected projects is still using the old rates of BLR -2.4% to pull in more customers, and clear old stock," Mortgage Broker Sdn Bhd sales director Adrian Un said. (Financial Daily)

National Water Servies Commission or SPAN is set to give its authorisation to four private concessionaires to continue operating and see out their concession periods. SPAN CEO Datuk Teo Yen Hua said an audit by the commission found the tariff and service charges for distribution and/or treatment of water were generally fair at Southern Water Corporations, Equiventures, Air Utara Indah and Metropolitan Utilities Corporation and these utilities will be authorised by SPAN under the Water Services Industry Act 2006 to see out their concession periods. The Commission however would like to seek lower charges for Taliworks Corp's treatment and distribution concession in Langkawi. (Malaysian Reserve) 

DiGi.Com believes its Internet division will act as a driver of growth in 2010 and 2011, backed by its expansion plan, said its CEO Johan Dennelind. He said the Internet division had to-date contributed at least RM40m to DiGi's run rate, based on the amount of sales from its services. Dennelind said Digi would invest RM300-400m annually in capital expenditure for the 2009-2011 period to grow its 3G network and "ensure enough capacity to support data".
  • The company targets 6-7m Internet users from both large-screen PCs and laptops using broadband, and small screen handphones using 3G by year-end. He added that the company aimed to increase its 3G network reach to 50% nationwide by next year and was working on getting its 3G penetration rate to the level of its EDGE network by 2012.(Financial Daily)
Green Packet will need up to RM500m in capital expenditure in the next 12-18 months to increase its 4G Wimax coverage nationwide to 65%. This does not include a RM155m capex it plans to spend first over the next three quarters to raise the high-speed broadband service coverage to 45%, Green Packet MD C.C. Puan said it had so far invested RM337m to roll out the 4G service. The company's 4G service, known as P1 and run by subsidiary Packet One Networks (Malaysia) Sdn Bhd, now covers 25% of the Peninsular. (BT) 

SP Setia has expanded its Penang landbank with the purchase of two plots of land on the island which are being earmarked for residential development. SP Setia property division (north) general manager S. Rajoo said two parcels of land - one inn Sg Ara and the other in the affluent Jesselton neighbourhood - have been acquired for a total of RM87m. (BT) 

Eastern & Oriental's rights issue of ICSLS has achieved an oversubscription rate of 2.9x above the minimum subscription level. The company said in a statement that RM236m was raised from the exercise. The ICSLS is expected to be listed on Bursa Malaysia on Nov 20. (Starbiz)

Guoco Group has methodically built up its stake in Bank of East Asia (BEA) in a steady and cost-conscious manner that bankers say is typical of the conglomerate's investment approach. Guoco has snapped up BEA stock throughout the year, adding a chunk of the bank after its share price fell in the wake of last year's financial crisis. It disclosed last week that it had subsequently raised its stake in the lender above 8%, entrenching its position as the second-largest shareholder in the bank. 
  • Guoco's announcement has prompted speculation of a possible bidding war over control for BEA that has powered a surge in its share price. The lender has advanced 18.6% so far this week and completed its largest one-day gain in 11 years on Wednesday. 
  • "By reputation, Guoco is a very savvy, very shrewd investor," said a banker familiar with the company. "And they are still sitting on a big pot of cash, so they have the opportunity to make some deals."
  • A Guoco spokesman reiterated that BEA was one of the group's strategic investments,but declined to say whether the conglomerate would further increase its holding in Hong Kong's biggest locally owned bank. (SCMP)
The Transport Ministry has agreed to provide Malacca International Airport with several incentives to help spur its usage by air carriers, including considering granting AirAsia rights to six destinations in Indonesia. Chief Minister Datuk Seri Mohd Ali Rustam said the state hoped to see several low-cost carriers establish operations at the airport which would officially be opened by the Prime Minister on Jan 15. 
  • This includes a RM25 incentive for each incoming passenger for the first 12 months for new airlines flying to new routes or increasing flight frequency.
  • Another benefit is the RM10-15 incentive for each incoming passenger after the period, depending on the performances of the air carriers.
  • Also included is the deferment of landing charges for three years and six-month rent free office space for those setting up operations at the airport. (The Star)
Galaxy Entertainment will have financing for its Mega Resort project in Macau "locked up" this year, said CFO Robert Drake. The company will explore "as many options as we can" in its efforts to secure financing for the HK$14.1bn RM6.15bn) casino resort, Drake said. He declined to say if the funds will be raised through loans, or sales of shares or bonds. (Bloomberg, Financial Daily)

Salcon has won a contract worth RM35.8m from Vintage Heights Sdn Bhd to undertake a vacuum sewerage system project. The project at Pantai Sepang Putra in Selangor will be constructed in two phases and is expected to be completed in 39 weeks for phase one and 78 weeks for phase two, Salcon.
  • Work will start from the date for site possession on Nov 17. When completed, the vacuum sewerage system will service approximately 2,000 existing households in PantaiSepang Putra," says CEO How See Hock. Vacuum sewerage system suitable for use in places where there are high water table and poor soil conditions such as at Pantai Sepang Putra, says Salcon. (Bernama)
Three-A Resources announced yesterday it has completed the private placement of
61.6m new shares at RM0.75/share issue price and the new shares will be listed today, 12
Nov. (BMSB)

20091113 0919 Affin Bank Weekly Chart Study.

Affin Bank daily and weekly chart wise do looks positive with all indicators showing bullish signal. The next immediate target rest at 2.35 which is also the 61.8% Fibonacci retracement strong resistant level.