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.