Tuesday, December 22, 2009

20091222 1839 FCPO EOD Daily Chart Study.

FCPO closed : 2515, changed : -40 points, volume : lower.
Bollinger band reading : sentiment turned negative. 
MACD Histrogram : getting lower, selling activities continue to increase.
Support : 2490, lower Bollinger band level.
Resistant : middle Bollinger band, 2550 level. 
Comment : 
FCPO traded negatively today and couldn't even climb back to yesterday 2555 closing price level. Stronger US dollar and directionless soy oil futures price together with holiday mood is believed to major reason for a weaker FCPO closing. Expecting market to trade side way range bound with further downside biased. 
When to buy : buy at support or weakness with quick cut loss and profit target. 
When to sell : sell at resistant or strength with larger cut loss and profit target

20091222 1748 FKLI EOD Daily Chart Study.

FKLI closed : 1257.5, changed : -1.5 point, volume : low. 
Bollinger band reading : bearish.
MACD Histrogram : slightly lower, low participation by both buyer and seller. 
Support : the lower upward triangle line, 1251.5 level.
Resistant : middle Bollinger band, the upper downward triangle line. 
Comment : 
Today candle closed right at the support of the lower upward triangle line with low volume. Should this support level break, market is likely to test the next support level at 1251.5, else stay side way with tighter and tigher range bound until a break out from the triangle occur.
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 / sell at break down with larger cut loss and profit target.

20091222 1312 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1256.5, changed : -2.5 points, volume : moderate. 
Bollinger band reading : bearish but downside limited. 
MACD Histrogram reading : stay nearly flat, no significant move by both buyer and seller. 
Support level : 1254. 
Resistant level : 1261.5 or the middle Bollinger band.
Comment : 
Market do looks weak but after 8 continuous black bar candle with the last bar touched the lower Bollinger band, a possible near term pullback could happen any time.
I am trying a more simplified elaboration. Feel free to give comment.

20091222 1257 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2539, changed : -16 points, volume : low.
Bollinger band reading : bearish with possible further downside. 
MACD Histrogram reading : continue lower, seller still in the market. 
Support level : 2530, 2510.
Resistant level : 2555, 2575. 
Comment : 
Market could still trade lower but downside room is limited due to support is just around the corner and a better soy oil future price.
I am trying a more simplified elaboration. Feel free to give comment.

20091222 0948 Malaysia Corporate News.

Eastern & Oriental (E&O) has entered into a sale and purchase agreement to sell a 4,651.203 sqm land together with preliminary works carried out thereon to Hap Seng Consolidated for RM103m. The sale is expected to be completed by first quarter of 2010. The plan is for Hap Seng to develop a 35-storey office building with a five-storey basement carpark on the land. (BT)
We are not entirely surprised by the sale and view the move positively as it will enable the group to recognise around RM30m in profits in FY10 and will strengthen balance sheet further. This brings total asset sales for E&O as part of its asset disposal and fund raising exercise to RM250m, just short of its RM300m target. We will likely adjust FY10 earnings up by RM30m but keep FY11/12 forecasts relatively unchanged.

The Indian government said on Mon that it would stick to its Jan 2010 schedule for the auction of 3G spectrum but allot airwaves only in Aug. The Indian telcos seemed pleased with the decision because the airwaves will be given simultaneously to all four successful bidders and allow them more time to muster the resources that will be needed to roll out their networks. Furthermore, they will be required to pay only a quarter of the bid amount this fiscal and the rest when the spectrum is allotted, telecom minister A Raja said. Mr Raja also said the government has decided to stay with the plan of auctioning four slots of bandwidth, in addition to the one already allotted to state-owned telcos BSNL and MTNL. (Economic Times of India)
The delay in allotment of airwaves is somewhat negative as it would extend the spectrum constraint faced by the Indian telcos. However, on the flipside, we are positive that four slots will be auctioned off, rather than the proposed three earlier, as it would mean a less competitive bidding process for the 3G spectrum. Moreover, we regard the ability to stretch out the payment for the 3G auction as positive as it would not immediately hit the cash flows of the Indian telcos and allow them to budget and gather the funds necessary for the 3G auction and rollout.

Malaysia’s car sales in November rose 10.6% from a year ago, the second consecutive month of expansion. Sales rose to 45,200 units in November from 40,865 units before as market conditions improved, said the Malaysian Automotive Association (MAA). "The yearon-
year expansion of sales volume is expected to continue in December, although the month-on-month volume is likely to be lower," said MAA. (BT) 

Annualized total industry volume now stands at 533,357, representing a 3% yoy contraction from 2008’s 548,115 units. This is broadly in line with our expectations of a 3% contraction in TIV to 531,672 units in 2009.

Genting Singapore appointed Tan Hee Teck as its president and COO (designate) from next year. He will continue to hold his appointment as CEO of Resorts World at Sentosa. Justin Tan, who is MD, intends to retire at or before the forthcoming AGM, which is likely to be held in Apr-10. Genting Singapore’s CFO, Jaclyn Loy, has resigned and will be replaced by Lee Shi Ruh from 1 Jan 2010. Prior to this new appointment, Ms. Lee was the VP (Finance) in Genting Malaysia. (SBT)

EON Capital (ECB), the holding company of EON Bank Group announced yesterday that the Board of Directors of ECB has received a letter dated 21 Dec 09 from Kualapura (with 11.1% stake in ECB), R.H. Development Corporation (16.3%) and Lintang Emas (4.3%) stating that the companies has received approval from Bank Negara Malaysia to commence negotiation with Hong Leong Bank for the potential equity divestment in ECB. (BMSB)

Marina Bay Sands would now be operational only in Apr-10 instead of Feb-10 as previously announced. Las Vegas Sands chairman and CEO Sheldon Adelson said construction has been slowed down by the monsoon rains and financial problems facing some subcontractors. "We're here for the long-term, we expect to have this opened for decades and that's what counts," he said, describing the new opening target as only a "minor delay." (AFP, BT)

Bank Islam Malaysia aims to increase its personal financing portfolio to RM2bn for the FY6/10, from RM1.5bn previously. Its consumer banking division GM Khairul Kamarudin said the bank will execute an aggressive and effective marketing campaign to attract customers. Khairul said more than RM30m in loans had been disbursed until 30 Nov with the campaign having began on 1 Sep this year. (BT)

Maybank Investment Bank and Japan's Mizuho Securities have formed a strategic alliance to further develop markets in Malaysia, Japan and other regions. Both parties concluded their memorandum of understanding to work together in areas such as primary and secondary markets, merger and acquisition advisory, and Islamic markets. (BT)

HSBC Bank Malaysia has appointed Mukhtar Hussain as its new deputy chairman and CEO starting from 15 Dec. Mukhtar will retain his dual role as global CEO of HSBC Amanah and continue to oversee the global expansion of the Islamic financial services business. (BT)

Malaysian Airline System (MAS) is considering raising at least RM1bn in a rights offering of shares, two people familiar with the proposal said. The airline's board and government have yet to give approval for the plan, the people said, declining to be identified as the discussions are private. (Bloomberg, BT)

Airports Council International (ACI) Asia-Pacific has appointed Malaysia Airports Holdings MD Tan Sri Bashir Ahmad as acting president of ACI Asia-Pacific Region effective 1 Jan 10. He replaces Max Moore-Wilton, chairman of Sydney Airport, who will assume the role of chairman of ACI World. (BT)

The Penang Development Corporation (PDC) and YTL Land & Development signed a 50:50 agreement to develop luxury apartments on a 1.38-ha land in Lebuh Farquhar in Penang. The project could start anytime soon, said Penang CM Lim Guan Eng. The new project comprises three six-storey 76-unit apartment blocks including an underground basement, a clubhouse and a restaurant. (Bernama)

Malaysian Resources Corp (MRCB) has made an informal approach to buy or help develop thousands of acres of federal land in the Klang Valley. But CEO Mohamed Razeek Hussain stressed that no formal bid has been submitted. MRCB, he said, is unlikely to make any cash call in the next five years after its proposed renounceable 1-for-2 rights issue. (BT)

Petra Perdana said Tengku Datuk Ibrahim Petra will continue to serve as the group's executive chairman and CEO. Tengku Ibrahim will also remain as executive chairman of Petra Energy, despite the group's sale of a 25% stake in Petra Energy. "Of course, if you do an analytical review of the divestment exercise now, it may not look favourable. Let the restructuring be completed and give it time for it to work. This is not an overnight remedy to generate immediate results. It is after all, a long term strategy," he said. (BT)

Hock Heng Stone Industries, one of the country’s major manufacturers of dimension stone products, has received approval from the SC to list on the Main Market of Bursa Malaysia. It is targeting to list by 1Q10. Malacca-based Hock Heng sources, processes and distributes a wide range of dimension stones including granite, marble, sandstone and slate. (BT)

KPJ Healthcare is targeting for its annual revenue to reach RM2bn in 2012 through the continued expansion of operations throughout the country. According to chairman Tan Sri Muhammad Ali Hashim, the company will expand operations in the country either organically, by takeovers or building new hospitals. On its overseas operations, he said, the company will re-evaluate investments in Bangladesh and Saudi Arabia following the current international financial crisis. (Bernama)

Taliworks Corp has proposed to issue RM395m of secured bonds 2009/2024, which would partly finance the early redemption of its convertible bonds that will expire in 2012. (Financial Daily)

Ekovest has submitted tenders for projects worth RM1bn-2bn in Malaysia. Executive vice chairman Datuk Lim Kang Hoo said the bulk of the tenders are for government-related projects and the company is also bidding for some projects in Iskandar Malaysia. (Malaysian Reserve)

The Securities Commission has rejected AKN Technology’s application to acquire a glove manufacturer for RM17.3m. This was because the target, Nobel Gloves, has yet to commence operations and does not have the required facilities to immediately start operations. (Financial Daily)

Puncak Niaga’s 70%-owned Syabas has entered into a loan agreement with the federal government to obtain a RM320.8m loan facility for the payment of water purchased from its operators. (Financial Daily)