Wednesday, December 16, 2009

20091216 1820 FCPO EOD Daily Chart Study.

Stronger commodities price push FCPO price to closed higher at 2587 up 57 points with supportive volume transacted. At closed, the daily candle stayed near the upper Bollinger band = the downward correction has ended with possible upward movement resume. Bollinger band with getting narrower = market upside is temporary limited to the upper Bollinger band, may go side way from there before the band width started to turn outward. MACD Histrogram recorded higher reading = buyer has returned back to the market. With the underlying strength gathered after downward rest correction of the uptrend market, expecting a trade upside biased with immediate target/resistant at 2606 followed by 2651 level.
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.

20091216 1755 FKLI EOD Daily Chart Study.

3.5 points range FKLI market closed the day up 1.5 point at 1267 with drying volume. Daily chart wise, price manage to trade above the middle Bollinger band = market have turned into positive tone mildly. Bollinger band width continue to narrow = side way range bound likely. MACD Histrogram reading improved = light buying activities with the absence of seller. Closed right at the resistant upper downward channel line, waiting for market to decide on its direction either to break above or retrace downward again or even continue to go side ways. Wait and see but seriously, regardless of where the market move, the range is just too small to earn a penny. I think its already half life near death with the deteriorating volume. Hahaha.. Just my imaginative jokes.
When to buy : Better off for Christmas shopping or take a rest.
When to sell : Better off for Christmas shopping or take a rest. 
Plan for next year !

20091216 1341 FKLI Mid Day Hourly Chart Study.

FKLI tested the upper downward channel line and seems lack of momentum to march further ended the first session down 0.5 point to closed at 1265. The last hourly chart candle still holding above the middle Bollinger band with the band width turning inwards = market tested resistant level and likely to trade side way with a little upside biased for the near term. MACD Histrogram last reading seems weaker than the previous bars = seller still in control of the market. At the juction, expecting market to trade side way ranging due to lack of evidence for market to march up further. But should increasing volume returned to the market at the second session with price break above the upper downward channel line, market could possible test the next resistant level at 1269.

20091216 1322 FCPO Mid Day Hourly Chart Study.

FCPO third month contract traded firmer with improved volume up 49 points to closed at 2579 at the first session. Hourly chart wise, market gap up and traded strongly through out the entire morning and closed right above the upper Bollinger band with the band width expanding = market movement has turned upside biased for the near term. MACD Histrogram recorded some good progress = buying interest has returned to the market. Market managed to test above the minor resistant line at 2590 to reach the high of 2595 before easing downward due to mild profit taking activities by intraday trader. Should more volume come in at the second half session, market is likely to rest another stronger resistant level at the previous high level of 2606. Immediate support stands at 2535 level.

20091216 0956 Malaysia Corporate News.

Malaysia's power demand may rise 3% in FYE8/10, Tenaga’s CEO Datuk Seri Che Khalib Mohamad said. Electricity demand was already up by more than 3% in Oct-Dec 2009 period, he added. (Reuters) 
We are neutral on this news as the 3% power demand growth guidance exactly matches our FY10 projection for Tenaga.

Mah Sing Group has secured an en bloc sale of a seven-storey retail and office space known as Apex Tower to a Taiwanese individual, Chen Ho-Yuan, for RM63m cash. The tower, which has about a net floor area of 90,126sf, formed part of the overall freehold commercial development project, Southgate, located at the intersection of Jalan Dua and Jalan Sungai Besi. The latest transaction had helped Mah Sing clock up total sales of RM678m, exceeding its full-year target of RM453m by 1.5x. (Financial Daily) 
We are not surprised by the sale as it has been Mah Sing's intention to find an en bloc buyer for the building. Nonetheless, it is a positive development and indicates that the en bloc market still exists for strategically located property and developers with strong marketing prowess can still secure such sales. 

Genting Singapore’s UK arm has been selected as the new casino operator of The Nile Ritz Carlton Hotel in Cairo for an initial period of 10 years. The Nile Hotel is owned by Misr Hotels Company, a leading government-controlled hotel owner and operator in Egypt. Misr Hotels will shortly refurbish this hotel before reopening it in early 2012. Genting UK plans to operate under the “Crocksfords on the Nile” brand when the hotel re-opens its doors. (SGX)

Mudajaya JV has bagged a RM241.3m contract to construct Boulevard Plaza in Putrajaya. The JV, comprises Mudajaya (51%) and Bina Rezeki Sdn Bhd (49%). The project is to be completed by Dec 2011. (BT, BMSB)
This announcement is positive but not a major surprise as the company had indicated potential local contract wins before end 09. This project was awarded on a negotiated basis. Mudajaya would undertake 51% share of works. Assuming a pretax margins of 10%, this project would raise FY10-11 pretax profits by around 2% and raise outstanding orderbook by 2% to RM5.5bn.

The much anticipated grand opening of the largest AEON Jusco mall in the country in Melaka this Dec 17 is likely to be postponed following a fatal gas explosion. The explosion was said to have happened at the food court section located on ground floor of the threestorey complex. Initial investigations indicated the blast originated from a leak in the gas system. (Star, Bernama)
Though this news is a negative surprise, we do not expect this to have a major implication to WCT, who is the contractor for the project. The project is already at its tail-end.

LCL Corp announced that it is now considered a Practice Note 17 (PN17) company as it is unable to provide a solvency declaration to Bursa. Bursa also publicly reprimanded LCL for failing to submit its FY08 annual audited accounts before end-Apr 09. LCL submitted it on 5/5/09, after a delay of two market days. (BMSB)

Tenaga (TNB) said the plan to supply electric power from the 2,400MW Bakun hydro dam to Peninsular Malaysia by 2015, is still on. "As far as we understand TNB will still be able to access power produced by the hydro plants in Sarawak," said its chairman, Tan Sri Leo Moggie. "Obviously some of the power will be utilised by Sarawak’s heavy industries but Sarawak has a potential of producing substantial capacity," Moggie said. What has been identified for transmission to Peninsular Malaysia, will still be within the total available capacity that can be generated in Sarawak. TNB plans on bringing in only 1,600MW and 800MW respectively by 2015 and 2017, he said. (Bernama)

Tenaga has short-circuited hopes for a reduction in power charges. “Logically, you can’t reduce both subsidies and tariffs at the same time,” said CEO Datuk Seri Che Khalib. “I think the revision of gas prices in Jan-10 and its impact is more crucial, rather than asking TNB whether we are going to increase tariffs,” he said. He added that any move by the government to lower electricity prices, even as natural gas costs rise, would not be feasible. (Starbiz)

Tenaga has no intention of selling its 20% stake in Jimah Energy Ventures Sdn Bhd. "There's no reason why we should sell," president and CEO Datuk Seri Che Khalib Mohamed Noh. "We have not been notified by Jimah. We are also a shareholder of Jimah. In fact, under the Jimah shareholder agreement, we have pre-emptive right and if they want to sell their stake to other party, they have to seek our consent," Che Khalib added. (Bernama)

AirAsia yesterday launched the Kochi - Kuala Lumpur route, its latest Indian destination alongside Kolkata and Thiruvananthapuram, which opened for sale on 15 October 2009. 
  • Since the opening of these routes less than two months ago, AirAsia has experienced an overwhelming response, of nearly 100,000 seats sold. AirAsia is the only airline from Kuala Lumpur which is servicing the flight to Kochi with direct daily flights.
  • Kathleen Tan, Regional Head of Commercial AirAsia said: “Amongst the destinations which are on our network radar include Chennai, Hyderabad, Banglore and Mumbai, so stay tuned for our latest development on these exciting routes.”
  • AirAsia launched its first route to Trichy, India which is situated in the South Indian state of Tamil Nadu on 1 December 2008, with the second daily frequency launched on 1 September 2009. (AirAsia Press Release)
Packet One Networks expects to launch its WiMAX service in East Malaysia as early as July next year, its vice president (corporate office) IR Ismail Haron said. (Bernama)

Telekom Malaysia (TM) is offering a special year-end promotion for most of its telephony, internet and SMS products and services. In a statement today, it said among the products on promotion are the Streamyx Super Upgrade Deal campaign, low call rates from ITalk and TM Homeline, the ITalk iWin Contest and TM's InfoBlast promotion. 
  • "During the promotion period, users will be able to enjoy super low rates on calls and SMS greeting for Christmas and New Year and faster Streamyx speeds at cheaper subscription rates until Dec 31," TM VP of retail product, Azizi A.Hadi said. (BT)
More than 122 households in Bangsar, Taman Tun Dr Ismail, Subang Jaya and Shah Alam here are currently involved in a high speed broadband (HSBB) retail service trial. The trial is part of Telekom Malaysia’s (TM) plan to roll out its commercial HSBB services in the four initial rollout areas by the end of 1Q10. 
  • These “beta testers” are experiencing and enjoying network access speeds of 15Mbps along with the related triple-play services of voice, video and high-speed Internet, TM announced. To date, TM has a “premises passed” achievement of 143,000 with a target completion of 150,000 premises passed by year end.
  • By Dec 31, TM also expects to complete 100% physical upgrade work in the four exchanges of Taman Tun Dr Ismail, Subang Jaya, Shah Alam and Bangsar. Currently, physical fibre access work in 44 exchanges out of 95 exchanges earmarked for HSBB network rollout nationwide is ongoing. (Star)
Sime Darby is sticking to its RM530m acquisition price for the Teluk Ramunia fabrication yard, despite independent valuation showed that the assets are worth RM434.69m. (Financial Daily)

YTL Corp is proposing to issue up to US$400m nominal value of up to seven-year guaranteed exchangeable bonds that may be exchangeable into new YTL Corp shares. Proceeds raised were to refinance existing borrowings and to grow its operations and pursue opportunities in Malaysia and abroad. (Starbiz)

Genting Malaysia should have, in the spirit of good corporate governance, sought the approval of its minority shareholders for its latest RPTs, Minority Shareholder Watchdog Group (MSWG) said. MSWG CEO Rita Benoy Bushon voiced hopes that the regulators would look into RPTs of this nature and reduce the threshold level to, say, 2% instead of the current 5% of shareholders funds, especially for deals not in the ordinary course of business. (BT)

Kuwait Finance House has pulled out from a RM920m deal to purchase 50% of Menara YNH from YNH Property, with no immediate word from either party as to the reason for the move. YNH said that it may seek damages from the Kuwait based Islamic bank. (Malaysian Reserve)