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)