Friday, January 29, 2010

20100129 1908 FCPO Weekly Chart Study.

FCPO closed : 2445, changed : -10 points, volume : lower slightly.
Bollinger band reading : bearish side way.
MACD Histrogram : recovering upward, seller reducing position.
Support : 2400, 2292 level.
Resistant : 2521, 2620 level.
Comment :
FCPO weekly chart has formed the 2nd weekly doji bar candle with some effort of testing the support level near the middle Bollinger band but the defence line seems still holding well. Technically, both indicators remain neutral suggesting a side way range bound market with a little biased to the upside still because price remained above middle Bollinger band and MACD still stay in the positive territory.

20100129 1856 FCPO EOD Daily Chart Study.

FCPO closed : 2445, changed : -6 points, volume : lower slightly.
Bollinger band reading : bearish side way.
MACD Histrogram : recovering upward, seller reducing position.
Support : 2440, 2400, 2370 level.
Resistant : 2470, 2500, 2521 level.
Comment :
A wild swing market today on FCPO that tested both low support level and high resistant level before closing near the opening to forming a long body doji bar candle. Chart wise, both Bollinger band and MACD indicator suggesting a consolidating side way range bound market with some downside biased likely. On the other hand, market is waiting for the soon to be release export data(positive expectation) next week and
there are some news saying that both Malaysia and Indonesia will be having lower production of crude palm oil due to the taking place replanting process.
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.

20100129 1841 FKLI Weekly Chart Study.

FKLI closed : 1259, changed : -36.5 points, volume : higher.
Bollinger band reading : neutral downside biased.
MACD Histrogram : turned lower, seller is here.
Support : 1250, 1230, lower Bollinger band level.
Resistant : 1297, 1309 level.
Comment :
FKLI ended the week with a wide range bar black candle with higher volume changed hand, a significant sign of buyer getting out and seller returning to the market. Weekly chart of FKLI has yet to turned bearish with the reading showing a neutral but weakening market. Thus expecting FKLI to trade side way range bound a little downside biased.

20100129 1821 FKLI EOD Daily Chart Study.

FKLI closed : 1259, changed : -8 points, volume : lower.
Bollinger band reading : bearish with oversold.
MACD Histrogram : dived deeper, seller still in charge.
Support : 1253, 1230 level.
Resistant : 1261, 1267, 1274, 1280 level.
Comment :
FKLI oversold condition triggered last hourly bargain hunting pulled market upward to recovered closed almost at the high of today's range forming a doji bar candle. Daily chart wise, market still remained bearish biased with possible pullback correction or side way range bound market.
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.

20100129 1322 FKLI Mid Day Hourly Chart Study.

FKLI(Feb 2010 Contract) closed : 1250, changed : -16.5 points, volume : high.
Bollinger band reading : bearish.
MACD Histrogram : turned lower slowly, seller in charge.
Support : 1247, 1240 level.
Resistant : 1256, 1261 level.
Comment :
Weaker DJIA closed overnight lead FKLI Feb 2010 contract to open and traded lower with supportive selling volume. Hourly chart wise, FKLI still potentially trade lower with some test activities at the support area. On the other hand, despite price continue to trade lower, MACD indicator has yet to record a lower low reading shows that the downward movement is still in early pre mature stage.

20100129 1251 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2436, changed : -15 points, volume : lower.
Bollinger band reading : side way.
MACD Histrogram : weakening, buyer not interested.
Support : 2440, 2400, 2370 level.
Resistant : 2470, 2500, 2521 level.
Comment :
FCPO traded lower with low volume changed hand due to weaker soy oil futures price. Market trade range bound mostly in the first session following pre closing selling pushed price to closed at the low. Technically, hourly chart remained neutral and side way range bound with testing of support and resistant market likely.

20100129 0944 Malaysia Corporate News.

The full implementation of the mandatory biodiesel blend programme could be deferred to next year, said Plantation Industries and Commodities Minister Tan Sri Bernard Dompok. He said the ministry was still looking at the fuel’s extra cost of about four to five sen per litre, mainly due to transport and blending costs, which needed to be handled amicably prior to selling the fuel.
  • The Government has a one-off capital expenditure (capex) of about RM200mil for the biodiesel programme but is concerned about the extra cost and which party would absorb it. “We don’t know whether to pass it to consumers, petroleum companies or the Government (to absorb it as subsidy), ” Dompok added. 
  • “Hopefully, we can stick to the B5 blend as the production of biodiesel will take up about 500,000 tonnes of palm oil, which is good given the current high palm oil stocks level,” Dompok said. (BT)
A delay in the full implementation of the biodiesel program is slightly negative for CPO price as the market has expected the biodiesel mandate to help boost demand for palm oil in Malaysia. However, it was reported two days ago that the government could start introducing a 5% blend fuel at the pump for private vehicle users in selected states in Peninsula Malaysia this year. This suggests to us that there could still be an incremental demand for palm oil for local biodiesel usage in 2010 but the increase will be lower than 500,000 tonnes.

EON Bank aims to give out RM4bn worth of car loans this year, up 8% from last year, driven by its year-long campaign that gives cash prizes to lucky customers. A successful hire purchase campaign last year has allowed the bank to disburse RM1.4bn financing within five months, helping it gain market share to become the third biggest car financier in the country. EON Bank has 11% of the car loan market, CEO Michael Lor said.
  • Despite the growth, he said its non-performing car loans ratio has fallen to 1.7% currently, compared with 2.4% at the end of 2008.
  • "Soon, we will report very strong earnings for the final quarter last year. It will surpass all expectations that you are seeing out there," Lor said. Overall, EON Bank expects to grow loans by 14% this year, while deposit is expected to grow 20%.
  • "This year we want customers looking for car-financing to remember EON Bank as the preferred Malaysian bank for two reasons - speed of approval and this Super Cash campaign," Lor said. He said EON Bank has the fastest approval in the country with its so-called AM/PM turnaround, which means customers who submit applications with relevant documents in the morning may get the loan approved by the same afternoon. (BT)
Sime Darby listed its Ringgit Malaysia Sukuk Programme on Bursa Malaysia with a combined master limit of RM4.5bn under the Exempt Regime. Based on the Islamic principle of musharakah, the 20-year tenure sukuk programme is rated MARC-1ID/AAAID for its Islamic Commercial Paper/Islamic Medium Term Note Programme and AAAID for Islamic Medium Term Note Programme as assigned by the Malaysian Rating Corp Bhd, Bursa added. (Bernama)

Sunrise is breaking free from its designation as a single location developer as it embarks on stage three of its growth plan, says executive chairman Tong Kooi Ong. Its recently announced JV with Sime Darby to develop a 21-acre land parcel in Bukit Jelutong intimated Sunrise’s business direction of moving away from Mont’ Kiara. It was too soon to say whether the pilot JV would lead to other opportunities at Bukit Jelutong. Tong said Sunrise was also looking elsewhere beyond Mont’ Kiara and Bukit Jelutong. (Financial Daily)

Bursa Malaysia may not have an IPO the size of Maxis this year, but several sizeable state-owned companies should be listed under the government's second wave of privatisation. CEO Datuk Yusli Mohamed Yusoff expects more IPOs this year with an improving economy. Interest would come from companies in China and countries "around Malaysia", he said. (BT)

AmIslamic Bank is confident of achieving double-digit growth in its Islamic banking business for the financial year ending 31 Mar. MD and CEO Datuk Mahdi Murad said the bank expected to see 30% growth in assets and profitability. “For the past five years, we have recorded double-digit growth, so we are confident of achieving it again,” he said. AmIslamic Bank was also targeting a 30% market share with its total Islamic banking profit this year, he said.
  • The bank expected its new branch at Universiti Islam Antarabangsa Malaysia to begin operation in March or April, Mahdi said. “We also plan to issue six more new products, including wealth management and structured products, this year,” he said. 
  • On NPLs, Mahdi said AmIslamic Bank expected the figure to be less than 1%. (StarBiz, Bernama)
Agrobank expects its total deposits to increase to RM8.7bn this year from RM5.9bn in 2009 with the launch of new products. Its acting MD, Datuk Ahmad Said, said the new deposit campaign, "Simpan ... Dapat Kereta", was launched as part of its effort to attract present and new clients. "About 50% of our existing customers are expected to participate in the campaign," he said.
  • Ahmad said the bank also aimed to grow its loan portfolio by 30% this year. Last year the loan portfolio stood at RM5.6bn, he said. (Bernama)
HSBC Amanah Takaful, the Islamic insurance arm of HSBC Bank Malaysia, plans to launch up to seven products this year. CEO Zainuddin Ishak said the company is now focused on traditional long-term plans such as retirement and medical health. HSBC Amanah Takaful aims to maximise its bankatakaful partnership by leveraging on its parent HSBC Bank Malaysia's client base. HSBC Amanah Takaful is a joint venture between HSBC Insurance (Asia Pacific) Holdings, Jerneh Asia and the Employees Provident Fund. (BT)

MRCB Land, the property arm of MRCB, has been awarded the Green Mark certification by Singapore’s Building and Construction Authority (BCA) for one its projects. KL Sentral Park recently received BCA’s Green Mark highest rating, making it the country’s first ever commercial development to be awarded the rating.
  • The BCA Green Mark certification is a rating system that evaluates a building’s environmental impact and performance. (BT)
Petra Perdana chairman and CEO Tengku Datuk Ibrahim Petra said the company has identified a potentially lucrative brownfield area to provide specialised well intervention vessels and barges. "This will involve Petra Perdana converting some of its existing workbarges and installing the required equipment to undertake the well intervention works. We foresee that this can potentially earn revenue of about RM50m per barge per year," he said. (BT)

Petra Perdana will today seek to set aside an injunction which stopped the further sale of Petra Energy shares. According to CEO Tengku Datuk Ibrahim Petra, Petra Perdana is expected to submit an application to lift the injunction filed by executive director Shamsul Saad. Shamsul had earlier obtained the court injunction on 23 Dec,and, together with a group of Petra Perdana shareholders, requisitioned an EGM on 4 Feb to consider boardroom changes. Asked if lifting the injunction is the right thing to do given that the EGM will be held next week, Tengku said: “Why not? There was no wrongdoing in the first place.” (Star)

Ramunia yesterday announced a tie-up with Coastal Contracts to bid for new oil & gas projects. Ramunia is one of seven local oil & gas fabricators licensed by Petronas, while Coastal’s wholly-owned unit Pleasant Engineering Sdn Bhd owns a 20.95-ha fabrication and engineering yard in Sandakan. Both Ramunia and Coastal have Lembaga Tabung Haji (LTH) as significant shareholder. LTH has a 25% stake in Ramunia and owns about 10% of Coastal’s shares. (Star)

Vastalux said Petronas has notified the company that the suspension of its licence was because of actions taken by Vastalux to rectify “relevant issues” raised “were not satisfactory". The relevant issues mentioned were the adverse report from Murphy Sarawak and Petronas Carigali pertaining to non-performance of Vastalux relating to projects awarded by them. (BMSB)

Malaysia Airports (MAHB) expects three or four more airlines, particularly from Asia, to fly into KL International Airport (KLIA) this year. "We can also expect to see the current airline operators increase their flight frequencies and add new destinations through KLIA," said senior general manager of operations Datuk Azmi Murad. (Starbiz)

Mah Sing aims for property sales to climb 39% to RM1bn this year, as an economic recovery spurs home purchases. “The impact of a possible increase in interest rates on property transactions will likely be minimal,” MD Tan Sri Leong Hoy Kum said. “This year will be a good year; our engine is going to ramp up again,” he added. The company aims to expand in markets including Vietnam, Australia and Singapore. (Bloomberg, Financial Daily)

Bursa Malaysia has publicly reprimanded Axis Corp and imposed a total fine of RM647,200 on its seven directors for the late submission of its financial accounts and a 525% deviation between its audited profits and unaudited profits. (BT)

Masteel has proposed a 10% private share placement involving the issuance of up to 19.5m new shares. (Financial Daily)

JCY International's owner may raise as much as RM1.2bn in Malaysia's second largest initial share sale in the past year, said two people familiar with the matter. Shareholder of YKY Investments, controlled by 54-year old Malaysian businessman Y K Yong, plans to offer 540.2m shares of JCY for RM1.60-RM2.20 apiece, said the people.
  • About 470.3m shares will be offered to institutional investors and the remainder to individuals. Individual investors will get a 5% discount to the institutional price, the other person said. (Bloomberg, BT)
Goh Ban Huat (GBH) has accepted a revolving credit facility of up to RM50m from AmBank for the purpose of meeting the working capital requirements of the group. GBH said the revolving credit facility was also to repay in full the term-loan facility amounting to RM36m that was granted by Kenanga Investment Bank. (Financial Daily)

Automotive parts manufacturer New Hoong Fatt (NHF) is building two new manufacturing facilities at a total cost of RM8m in the vicinity of its current factory in Klang in anticipation of increased demand for its products. MD Chin Jit Sin said the company had a good year in 2009 despite the economic downturn and, going forward, it saw opportunities emerging from the tax exemption under the Asean Free Trade Area (Afta) scheme as well as potential demand from China and India. (Financial Daily)

Taliworks is expanding its wastewater treatment businees in China via the acquisition of a 70% stake in an industrial wastewater plant operator, Eco 3 Technology and Engineering Pte Ltd for RM172,550. (Financial Daily)

As part of the Government Transportation Programme (GTP), the ONE-ticket system for public transport in the Klang Valley will be introduced by the end of the year. The "1Ticket, 1Seamless Journey" project would be launched for all 16 public tranport operators. (Malaysian Reserve)

Thursday, January 28, 2010

20100128 1810 FCPO EOD Daily Chart Study.

FCPO closed : 2451, changed : +22 points, volume : lower.
Bollinger band reading : bearish side way.
MACD Histrogram : recovering, seller closing position .
Support : 2440, 2400, 2370 level.
Resistant : 2470, 2500, 2521 level.
Comment :
Weaker US Dollar lead with recovering soy oil futures price lead FCPO to trade higher as seller decide to close partial of there positions. Looking on the daily chart, FCPO outlook still baised to bearish outlook with possible correction taking place. Expecting market to trade side way range bound downside biased in the near term.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with larger cut loss and profit target.

20100128 1725 FKLI EOD Daily Chart Study.

FKLI closed : 1267, changed : +5.5 points, volume : lower.
Bollinger band reading : bearish with pullback
MACD Histrogram : dived deeper, seller still in charge.
Support : 1260, 1253, 1230 level.
Resistant : 1267, 1274, 1280 level.
Comment :
Pullback effect correction took place today on FKLI that traded higher ended the day with a doji bar candle.
Seller decided the cash in their account realising some of their short positions profit after 2 days of hard work.
Daily chart still look bearish with possible correction to continue take place in the near term. Thus market is likely to trade side way range bound downside biased.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with larger cut loss and profit target.

20100128 1247 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1270.5, changed : +9 points, volume : low.
Bollinger band reading : neutral, side way.
MACD Histrogram : rising above zero level, seller lock in profit.
Support : 1260, 1253, 1230 level.
Resistant : 1274, 1280 level.
Comment :
FKLI is having a technical rebound following major Asia market that traded higher as seller decided to lock in profit after 2 days of severe falls. Hourly chart reading of FKLI suggesting a side way range bound downside biased market as price still traded below middle Bollinger band and MACD still at negative zone.

20100128 1235 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2444, changed : +15 points, volume : low.
Bollinger band reading : neutral, side way.
MACD Histrogram : rising above zero level, short covering.
Support : 2400, 2370, 2330 level.
Resistant : 2440, 2470, 2500 level.
Comment :
FCPO opened and traded lower followed by profit taking and short covering pushed price ended higher with low volume transaction. Sudden drop in US Dollar leads most commodities to trade higher including soy and crude oil futures. Hourly chart reading suggesting a side way range bound market with still a little downside biased. But on the other hand, there is a possible positive divergence forming on the price and MACD indicator.

20100128 0934 Malaysia Corporate News.

Sime Darby Property is in discussions with a few potential partners for possible joint ventures (JV) to develop its vast land bank in the country. The company has a land bank of 37,000 acres, of which 8,000 acres are in the Guthrie Corridor, according to MD Datuk Tunku Badlishah Tunku Annuar. "It is the company's strategy to team up with strategic partners to develop the land bank," he said. (Starbiz)
This is in line with the group's strategy to unlock the value of its rich property land bank and will be positive for the group's earnings in the medium term.

EON Capital (EONCap) has been given an extension until next Tuesday to decide on a RM4.92bn buyout offer by bigger rival Hong Leong Bank. EONCap chairman Tan Sri Syed Anwar Jamalullail said it was pleased with the time extension although he stressed that the "initial offer undervalues EONCap", while some of the proposed terms were "unacceptable. Mulpha International confirmed to Bursa Malaysia that it had asked for Bank Negara Malaysia's consent to negotiate for a share purchase in EONCap. (BT)

The board of Alliance Bank is in the midst of evaluating the response submitted by CEO Datuk Bridget Lai but no time frame has been set to complete the assessment, said bank director Tee Kim Chan. Tee said the board had received Lai's report late Mon evening and had yet to formally meet up to discuss the submission. "It was a long report and there is a lot of material for us to digest. We have to correlate the submitted material with the material we have, and the board has to exchange information," he said. (Financial Daily)

Sarawak’s first biodiesel plant will have an annual production capacity of 120,000 tonnes when it is fully operational in March. The RM80m plant is owned and operated by Sarawak company Senari Biofuels Sdn Bhd in collaboration with Assar Senari Group. Senari Biofuels ED Datuk Abang Khalid Marzuki said the plant, located within the Assar Senari Industrial Complex here, was now ready to commence production. “We expect to be in full operation by March. Our production will be mainly for the export market and we intend to expand the plant gradually to meet future demand,” he added. (BT)

The suit between Splash and Syabas has been set for mention at the Kuala Lumpur High Court on Feb 22. Splash is suing Syabas for RM196.3m in alleged outstanding amounts, not including interest. Splash’s claims were in respect to a supply charge and capacity charge from Syabas. Konsortium Abass had filed a suit for RM63m against Syabas for non-payment of water invoices in October. (Star)

Maxis is targeting 30,000 users for its newly-launched Unity Solutions by year-end, said its VP and head of enterprise and carrier business, Fitri Abdullah. Unity Solutions, which is anchored on a unified digital platform, offers seamless connectivity across different systems, devices and applications, enabling businesses to manage their employees and attend to customers anytime, anywhere. (Bernama)

International airlines suffered their biggest decline in traffic since 1945 last year as passenger demand fell 3.5%, IATA said yesterday. Freight also fell, by 10.1%, as "full-year 2009 demand statistics for international scheduled air traffic... showed the industry ending 2009 with the largest ever post-war decline," IATA said in a statement.
  • "We have permanently lost 2.5 years of growth in passenger markets and 3.5 years of growth in the freight business," said director general Giovanni Bisignani. 
  • Passenger traffic had improved in the final months of 2009; passenger traffic increased by 4.5% yoy in December and by 1.6% over November, but yields were still 5-10% lower yoy.
  • IATA predicted a slow recovery for cash-strapped carriers. "Revenue improvements will be at a much slower pace than the demand growth that we are starting to see," said Bisignani. "Profitability will be even slower to recover and airlines will lose an expected US$5.6bn in 2010," he added. This compares to the estimated US$11bn losses in 2009 despite a recovery in passenger traffic. (BT, AFP)
A decline in airfares is a given with the entry of AirAsia and AirAsia X on the major routes to India. Previously, Indian Airlines operated certain routes but it ceased over a year ago, following which Malaysia Airlines has been the sole carrier for some of the points. A check on the respective airlines’ websites revealed that a round trip from KLIA to New Delhi on August 5 to 15 is RM719 on a low-cost carrier; AirAsia X is more than 50% lower than MAS, whose online fare was RM1,592. “The incumbent will not drop fares to RM199 but a reasonable discount can be expected as it would want to safeguard its market share. Initially, the drop will be bigger but in the longer term and prices will stabilise. However, yields will come under pressure,” an industry source said. AirAsia and its sister airline, AirAsia X, finally got the nod to fly to New Delhi, Mumbai, Bangalore, Hyderabad and Chennai beginning April. Unlike the other sectors, fares are very competitive on the Chennai and Hyderabad routes as the routes are currently serviced by MAS, Jet Airways and Indian Airlines. (Star)

DRB-Hicom plans to pay RM80.83m to privatise its 79%-controlled Edaran Otomobil Nasional (EON) which would see Edaran's shareholders receiving RM1.55 for every share they hold. The proposed privatisation, which would be carried via a selective capital reduction and repayment exercise, is mooted as DRB-Hicom is facing difficulty in addressing the shortfall in the public shareholder spread requirement of 25%. It may be financed via internal funds and bank borrowings of Edaran. (Malaysian Reserve)

Petra Perdana has received a 32-page written representation from four of its board members, answering allegations over its recent sale of three new vessels and the disposal of its remaining stake in Petra Energy.
  • The four board members are group chairman/CEO Tengku Datuk Ibrahim Petra, his wife and executive director Datin Nariza Hajjar Hashim as well as independent non-executive directors Wong Fook Heng and Tiong Young Kong. 
  • The four also gave reasons behind executive director Shamsul Saad's call for its shareholders to vote them out of the board at the 4 Feb EGM. The document said the board had suspended Shamsul for two weeks from 22 Dec 09, pending further inquiries on the issues of insubordination and management of the group's operations. (BT)
With Petra Perdana’s EGM just a week away, the move by CEO Tengku Datuk Ibrahim Petra to challenge the court injunction that stopped the further sale of shares in associate Petra Energy does not benefit the company, says executive director Shamsul Saad.
  • He noted that the court had clearly ruled that the injunction should remain in place until 3 Mar “so that all Petra Perdana shareholders can be given a chance to decide on the matter themselves.” Shamsul had obtained the court injunction on 23 Dec 09 and, together with a group of Petra Perdana shareholders, requisitioned an EGM on 4 Feb to consider boardroom changes. 
  • Had it been allowed to proceed, the share sale would be the “worst thing” that could happen to Petra Perdana as the company would “lose a subsidiary and gain a competitor, said Shamsul. (Star)
The new Petronas CEO must be from within the conglomerate to ensure continuity, said company adviser Tun Dr Mahathir Mohamad. This was also necessary because the new CEO would be familiar with the operations, he said. “Most importantly, we have done business with so many countries. We know heads of governments and an entirely new person will find difficulty in establishing contact with the people we are doing business with,” he added. Speculation is rife the three candidates shortlisted to succeed Hassan are Datuk Shamsul Azhar Abbas, Datuk Anuar Ahmad and Datuk Wan Zulkiflee Wan Ariffin. (Star)

PetroChina Co said it won a joint bid with Petronas and Total to develop the Halfaya oil field in Iraq over 20 years. PetroChina is leading the consortium and will also own the biggest stake in the operating company. A fourth company, Iraq’s South Oil Co, will also take part in the venture. (Bloomberg)

Zurich Financial Services is exploring ways to take a controlling stake in its Malaysian JV and grow its business in Indonesia, its Asia-Pacific head Geoffrey Riddell said. Zurich Financial now holds a 40% stake in a JV offering general and life insurance in Malaysia. "We would like to have control but we want to get to control in a way that is comfortable to parties involved. It could take time. It could involve so many things," he said, adding that Zurich Financial could take a stake of up to 70% according to domestic rules. (Financial Daily)

CB Richard Ellis (Malaysia) (CBRE), a real estate services company, expects the number of property transactions in the country to improve this year, thanks to a new wave of interest from local and foreign institutional funds.
  • Executive chairman Christopher Boyd said there is strong buying interest from Singaporean, Hong Kong, Korean and Arab investors, looking for new office buildings in the Klang Valley and Penang. 
  • He said there is a possibility that the value of property transactions in the Klang Valley will exceed RM4bn this year as it expects more than 30 major deals.
  • Boyd also warned property developers to be cautious over the next six to nine months of over-launching their commercial projects as there is a strong possibility of a double dip in the West in the second half of 2010, which may impact the Southeast Asian market. (BT)
Sunway City has hired RHB Investment Bank and Credit Suisse as the main coordinators for the planned listing of its real estate investment trust (REIT) in Malaysia, sources with knowledge of the deal said. The listing of the REIT, the biggest ever in the Southeast Asian country, is likely to happen in 1H10 and the company may raise about RM1bn in its public offering, one of the sources told Reuters. "The REIT will have a market capitalisation of more than RM3bn," said one source. (BT)

Light-emitting diode (LED) maker D&O Ventures is investing more than RM50m to double its Malacca capacity and set up a new factory in Laos. “Energy-saving lightings like LED is gaining popularity as countries around the world become more conscious of the environment and opt for our products. We're doubling our capacity in Malacca and the new factory in Laos is set for completion by mid-year," MD Tay Kheng Chiong said. (BT)

Homeritz Corp, a home furniture maker and designer, plans to spend RM9.1m to set up two factories in Johor and Vietnam to meet new demand. The company is raising RM7.9m from an initial public offering, including a rights issue, prior to its listing on the Main Market of Bursa Malaysia on February 19. In addition, existing owners will sell shares to raise another RM22.76m from an offer for sale. The shares are priced at 65 sen apiece. (BT)

Gadang Holdings said its indirect wholly-owned unit, Natural Domain, will buy a piece of residential land measuring 49,377.47 sq m off Sungai Besi Highway in Kuala Lumpur for RM33m. (BT)

Bursa has rejected MEMS Tech's application for an extension of time to appoint a sponsor by Mar 31 and submit a regularisation plan by June 30, 2010. MEMS Tech said it intended to appeal to Bursa to reconsider the rejection and that the company was working with the intended investor on the appointment of the sponsor. With no further extension of time, trading in its securities would be suspended with effect from Feb 5, 2010. (Financial Daily)

The second phase of I-Berhad's integrated commercial development in Shah Alam, Selangor, is expected to kick off later this year, its top executive said. CEO Eu Hong Chew said the phase covering 3.64ha has a GDV of over RM150m. It will offer between 300,000 sq ft and 400,000 sq ft of office space. The construction cost will be between RM30m and RM40m and completion is due in 2013. (BT)

A 352-room hotel, an exhibition and convention centre along with commercial lots will form the third and fourth phases of the RM1.1bn Penang Times Square development in Penang. The project, which is being carried out by Ivory Properties Group, will also feature a cineplex and luxury condominiums, its executive director Datuk Seri Nazir Ariff Mushir Ariff said. "We are talking to several parties and hope to sign up with an investor for the hotel by the end of the year," he said. Nazir said it will either get the investor to buy up the 325- room hotel, or get a long-term operator to manage it. The property developer, which is awaiting final approval from the Securities Commission for an initial public offering, will launch the shopping mall portion of Penang Times Square on February 6 under the first phase. (BT)

Wednesday, January 27, 2010

20100127 1813 FCPO EOD Daily Chart Study.

FCPO closed : 2429, changed : +22 points, volume : higher.
Bollinger band reading : bearish.
MACD Histrogram : reversed slightly higher, up and down, up and down.
Support : 2400, 2370, 2330 level.
Resistant : 2440, 2470, 2500 level.
Comment :
One day down, one day up market for FCPO ended today with significant volume changed hand after market tested the support broken low and follow by buying activities pushed price to closed way off the low due to soy oil futures price recovery. Daily chart wise still suggesting a bearish near term outlook with price record lower low. Expect marke to trade side way range bound downside biased.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with larger cut loss and profit target.

20100127 1725 FKLI EOD Daily Chart Study.

FKLI closed : 1261.5, changed : -16.5 points, volume : higher.
Bollinger band reading : bearish and oversold.
MACD Histrogram : dived deeper, seller turned aggresive.
Support : 1253, 1230 level.
Resistant : 1267, 1274, 1280 level.
Comment :
A black wide range bar candle for the 2nd day with even higher volume transacted! Seller turned into a fat rich cow in 2 days. Technically today's candle closed way below the lower Bollinger band can expand to showing that the selling activities are way overdone. Despite the just turned bearish daily chart reading, market seems need to take a rest before going down further. Expecting market to have a pullback correction soon before going down further or at least wait until the lower Bollinger band to do some catch up to match the price diving pace.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with larger cut loss and profit target.

20100127 1305 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1272, changed : -6 points, volume : high.
Bollinger band reading : bearish.
MACD Histrogram : recovering, seller locking in partial profit.
Support : 1267, 1255 level.
Resistant : 1276, 1280, 1286 level.
Comment :
Seller continue to press the sell button since market opened in the morning follow by partially profit taking activities. Hourly chart does look ugly with price coming down like water diving divers. Expecting further downside market development but there is a possible pullback as price drop too severely.

20100127 1246 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2428, changed : +21 points, volume : low.
Bollinger band reading : bearish.
MACD Histrogram : recovering, seller lock in profit.
Support : 2400, 2370, 2330 level.
Resistant : 2440, 2470, 2500 level.
Comment :
FCPO recovered some of the yesterday losses with low volume transacted in tandem with better soy oil futures price. Hourly chart still recording bearish reading with price stayed below the middle Bollinger band and the band width expanding. Despite MACD Histrogram recovering, it is still below the zero line level suggesting that the underlying of the market remained weak in the near term. Expecting market to trade side way range bound downside biased.

20100127 0948 Malaysia Corporate News.

Sime Darby Property (Sime Property) is partnering Sunrise to develop a RM1bn integrated commercial project in the Bukit Jelutong township in Selangor next year. The two firms will have equal stakes in the joint-venture company, Baywood Avenue. They plan to build retail, shop-offices, office-suites and serviced apartments on some 8.4ha. The project, located opposite Sime Darby Pavilion, will be developed in five phases over seven years, beginning next year. The joint venture will buy the land from a subsidiary of Sime Property for RM118.1m, or RM125 per sq ft. (BT) We view this news positively as Sime will be able to unlock the value of its rich land bank through this joint venture by accelerating the development of its strategic land bank. However, we do not expect this news to have a material impact on the group's earnings in the short-term.

EON Capital (EONCap) may seek to enter takeover talks with Hong Leong Bank on a non-exclusive basis when it responds before a deadline this afternoon, people familiar with the situation said. "They will probably try to extend the process and reset some conditions, including perhaps to discuss (the takeover bid by Hong Leong Bank) not on an exclusive basis," a source said.
  • EONCap will likely put out an announcement today on its decision before the Hong Leong offer lapses by 5pm. Hong Leong has given EONCap seven days from last Thursday to decide on an offer to buy out its banking assets for RM7.10 cash per share. 
  • EONCap is barred from talking to other potential bidders once it agrees to the terms set out in the proposal. Other conditions would restrict EONCap from paying extraordinary dividends before the transaction is completed, or to have any adverse changes in its financial position before the deal is sealed. 
  • "The feeling from the management is that EONCap is being undervalued by the market and this particular bidder," the source added. (BT)
In what is turning out to be a heated takeover battle involving EON Capital, it is believed that property group Mulpha International has written to Bank Negara to seek the green light to start talks to acquire a stake in the bank.
  • “Mulpha has, a few days ago, sought the central bank’s permission to speak to EON’s shareholders to buy a stake in the bank. The decision is pending,” said a source. 
  • Listed Mulpha International is led by executive chairman Lee Seng Huang, who as at April 2009, owns a 32% interest in the group with core businesses in real estate and property-related services in Malaysia, Singapore, Australia, Hong Kong and China.
  • While it may pique curiosity that the property group is interested in acquiring a stake in a financial institution, it is noteworthy that Lee is also the executive chairman of Hong Kong-listed Sun Hung Kai & Co Ltd, a non-bank financial institution focused on wealth management, broking, corporate finance and consumer finance. Lee is a trustee of a discretionary trust which owns a controlling interest in Hong Kong-listed Allied Group Ltd, which is the ultimate holding company of Sun Hung Kai with a 70% stake. “The interest in EON Cap could be related to Sun Hung Kai. That is a logical link,” said a source.
  • One of Sun Hung Kai’s non-executive directors is Ming Cheng, who is MD of Hong Kong-based financial services holding company Primus Financial Holdings Ltd. Ng Wing Fai, non-independent director of EON Capital, is the MD and founding partner of Hong Kong private equity firm Primus Pacific Partners. Primus Pacific owns a 20.2% interest in EON Cap which it acquired back in 2008 at RM9.55 per share. (StarBiz)
Alliance Bank Malaysia has received group CEO Datuk Bridget Lai’s reply to the questions posed to her in the bank’s internal probe yesterday, a source close to the bank said. “She has replied and the board will look into the matter,” the source said.
  • It was reported earlier that Lai had to answer certain questions by the Alliance Bank board as part of the bank’s internal probe. The questions were given to Lai on 11 Jan. 
  • Alliance Bank had extended Lai’s deadline twice to give her more time to answer the queries.
  • When contacted, Lai confirmed that she had submitted her reply to the bank. “Yes. My reply has been submitted but I can’t speculate nor comment on what will happen next,” she said. 
  • The ongoing internal probe concerned operational matters related to renovations done in the bank’s property department. (StarBiz)
The government could introduce a 5% biodiesel blend fuel at the pump for private vehicle users in selected states in peninsula some time this year, Minister of Plantation Industries and Commodities Tan Sri Bernard Dompok said. "I think it will have to be this year, but I need to get my work done first," he added. (Edge Financial Daily)

The government said the windfall profit tax on oil palm planters will be maintained, dismissing calls for a review of the calculation of the levy. "The Cabinet has decided that the windfall tax on palm oil be maintained for now," said Plantation Industries and Commodities Minister Tan Sri Bernard Dompok. MEOA president Boon Weng Siew reportedly said it would be more justified if the windfall tax is on actual profits of audited financial accounts, like corporate tax. "This is because not every planter makes tonnes of money as the profitability of oil palm plantations depends on the age and productivity of the trees. A newly-replanted estate would still be losing money even if palm oil prices surpass RM3,000 per tonne." (BT)

Malaysian entrepreneurs are invited to establish palm oil refineries in Central Kalimantan. Deputy Governor Ir Achmad Diran said as the province's oil palm industry is developing rapidly, there is a need for more refineries to cater for the 1.2m tonnes of crude palm oil produced in Palangkaraya (Central Kalimantan). (Bernama, BT)

Current fundamentals look favourable for natural rubber (NR) prices to stay bullish, said Association of Natural Rubber Producing Countries (ANRPC) secretary-general Prof Djoko Said Damardjati. He said there was a tight supply situation caused by a progressive decline in global production and a marked rebound in demand. Yesterday, tyre-grade SMR 20 closed two sen higher at RM10.19/kg while Latex-In-Bulk rose RM1.50 to settle at RM6.96/kg. Djoko said that none of the NR producing countries currently hold any NR buffer stock, contrary to a recent report on a buffer stock of 300,000 tonnes. “Policies pursued in the major NR exporting countries are oriented towards ensuring the best price for NR with a view to enhance farmers’ income and improving export earnings,” he said. He added that putting a cap on rubber prices was not on the agenda of major exporting countries. (Starbiz)

The Malaysian property market, estimated to have registered transactions worth RM75.4bn last year, is expected to improve further in 2010 in line with the economic recovery. The transactions involved 337,990 properties as compared with the 340,240 valued at RM88.3bn in 2008, said director general of Valuation and Property Services Department, Finance Ministry, Datuk Abdullah Thalith Md Thani. (Bernama, NST)

Property prices in Malaysia are forecast to increase by 5% to 10% this year against last year in line with the recovering economy. Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia president James Wong said the market did not expect a big jump in property prices this year as the economy was not fully recovered yet. (Starbiz)

MK Land has denied that there is a dispute in the internal management of the company and a vacuum exists in the management. General manager of its legal department, Preetie Boler, said the company was "intensely moving ahead" with its three-pronged approach - sales of properties, cost-control measures and a corporate exercise - to strengthen its position as unanimously approved by its board of directors. (Starbiz)

While Petra Perdana chairman and CEO Tengku Datuk Ibrahim Petra claims that the disposal of the 5.38% stake in Petra Energy did not require shareholders’ approval, suspended executive director Shamsul Saad is disputing this.
  • “This sale was at a 12% discount to the weighted five-day average price of Petra Energy shares at that time and a breach of the Petra Perdana shareholder mandate,” Shamsul said. 
  • On 10 Sep, Petra Perdana placed 10.5m, representing 5.38% stake, in its then subsidiary Petra Energy at RM1.53 per share to TA First Credit Sdn Bhd. As a result of this disposal, Petra Perdana suffered a loss of RM500,000. Subsequently, TA First Credit resold the Petra Energy shares at RM1.80 each – 2m shares on 30 Sept and a further 7.7m shares on 27 Oct. 
  • Shamsul said TA Securities was appointed by Ibrahim at an “unusually high 3% in placement fees”. Coincidentally, TA Securities was also appointed by Ibrahim as valuation agent for the transaction. (Star).
Petra Perdana’s efforts to secure RM116m to help ease its tight cash situation was delayed following the court injunction to stop it from selling its remaining 29.59% stake in associate firm Petra Energy.
  • The amount is inclusive of the proceeds from its 5.38% divestment and repayment by Petra Energy. 
  • Petra Perdana CEO Tengku Datuk Ibrahim Petra said the company would on Friday seek to strike out the injunction, which could help the company proceed with the sale by convening an EGM to seek shareholders’ approval. 
  • Tengku Ibrahim said the reason they opted to divest the Petra Energy shares in the first place was to address the tight cashflow and to prepare for challenging times ahead, as agreed to by the board. (Bernama)
AirAsia is launching direct flights to six new Indian routes in the first quarter of 2010, including Chennai, Bangalore, Hyderabad, Mumbai and New Delhi from Kuala Lumpur and from Penang to Chennai.
  • AirAsia is the only airline from Malaysia which will be flying to Bangalore and Hyderabad from Kuala Lumpur and from Penang to Chennai. The Chennai, Bangalore and Hyderabad sectors will be serviced by AirAsia’s A320 aircrafts, Mumbai and Delhi will be served by its long-haul affiliate, AirAsia X via its new Airbus A330 fleet. 
  • This new development is subsequent to AirAsia’s huge success of Tiruchirapplalli (Trichy) followed-by Kolkata, Kochi and Thiruvananthapuram (Trivandrum) recording an average of 80% load factor on all our four existing routes. (Press release)
Zenith Media Malaysia is forecasting a 10% growth in the country’s adex this year. CEO Gerald Miranda said adex would benefit from the global economic recovery. He said government had forecast an economic growth of 2% to 3% this year, he believed actual growth would surprise on the upside. “Measures to increase consumers’ disposable income, such as through an increase in personal tax relief and the lowering of the maximum tax rate from 27% to 26%, will also help stimulate spending,” he said. (Star)

Perodua’s Myvi model was ranked highest in the compact car segment in the 2009 Malaysia Initial Quality Study conducted by J.D. Power Asia-Pacific. This is the third year in a row that Perodua Myvi was ranked highest. (BT)

The Naza Group of Companies expects to sell close to 3,000 units of Peugeot cars in Malaysia this year, mainly driven by new models. Its joint executive chairman SM Nasarudin SM Nasimuddin said the group is targeting to launch four new models this year, namely the 308CC, 508, RCZ and T33. "For T33 alone, we expect to sell about 500 units. Production of T33 at our facility in Gurun is expected to start in October," he said. He said Naza has also managed to export Peugeot's left-hand drive cars to other markets such as Australia and New Zealand. "There are also plans to export this car to other markets such as Japan and as far as South Africa," he said. Naza expects to sell between 25,000 and 26,000 units of cars under its stable this year. (BT)

Redtone hopes its IPTV, dubbed "DETV" subscriber base to hit 100,000 in 3-5 years from the launch of the new service. The plan is to tie up with more content partners in the future to bring in content from Hollywood, Bollywood or neighbouring countries such as Indonesia. "We have some 38 channels now but there is the possibility to increase it rapidly, to say even 100," managing director Wei Chuan Beng said. Subscribers of DETV need a set-top box, a television and 1Mbps broadband Internet speed. (BT)

Parkson Holdings said its wholly-owned unit Parkson Vietnam Co Ltd, increased its stake in Parkson Hanoi Co Ltd by investing some US$1.008m as charter capital of Parkson Hanoi. The company announced that Parkson Vietnam increased its stake in Parkson Hanoi from 49% to 70%, thus making the latter a subsidiary of Parkson Holdings. Parkson Hanoi has a total investment capital of US$6m and a charter capital of US$4.8m which has been fully paid. (BT)

Tuesday, January 26, 2010

20100126 1815 FCPO EOD Daily Chart Study.

FCPO closed : 2407, changed : -62 points, volume : higher.
Bollinger band reading : bearish.
MACD Histrogram : turned slightly lower, seller market.
Support : 2400, 2370, 2330 level.
Resistant : 2440, 2470, 2500 level.
Comment :
In tandem with a weaker world commodities price, FCPO price eased and closed at the low with supportive high volume traded today forming a black wide range bar candle. Daily chart reading suggest a bearish further downside likely market with both Bollinger band width expanding and MACD Histrogram turned lower admitting that seller is taking control of the market. Expecting FCPO to trade side way range bound downside biased.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with larger cut loss and profit target.

20100126 1739 FKLI EOD Daily Chart Study.

FKLI closed : 1278, changed : -17 points, volume : higher.
Bollinger band reading : bearish with side way.
MACD Histrogram : dived deeper, seller won the battle.
Support : , 1276, 1267 level.
Resistant : 1280, 1286, 1290 level.
Comment :
Timberrrrr !!! 17.5 points range long black body wide range bar candle. I haven't seen such a similar day long enough. Mr. Seller decided to go full throttle pressing the sell button all the way since the 2nd session started until the end forcing buyer to leaves the market for good and even break below 3 levels of supports. Daily chart reading has yet to turned totally bearish as the Bollinger band width still turning inwards but nevertheless today's sellers boldness should not be taken lightly. Expecting a pullback effect upward before any further downward movement.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with larger cut loss and profit target.

20100126 1310 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1287.5, changed : -7.5 points, volume : high.
Bollinger band reading : bearish.
MACD Histrogram : turned lower, seller in the market.
Support : , 1286, 1280 level.
Resistant : 1290, 1295, 1300 level.
Comment :
In tandem with major Asia market that traded lower in response to China central bank tightening policy, FKLI ended the first session poorly with ultra high volume changed hand. The hourly chart does look bearish with further downside potential as the Bollinger turned outward in fast pace. But having said that, there is also a possible pullback effect due to price traded a little outside of the lower Bollinger band.

Come to think of the China central bank policy, I was thinking despite it is a bad news for the equity and commodities market in the immediate term but fundamentally it's actually an action taken by the government of China due to the overheating economic condition. In other word, it means that the China economy is in GREAT shape! Don't you think ? Feel free to comment.

20100126 1255 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2441, changed : -28 points, volume : high.
Bollinger band reading : bearish.
MACD Histrogram : getting weaker, seller in the market.
Support : , 2440, 2400 level.
Resistant : 2470, 2500, 2521 level.
Comment :
It's all about China now ! The China central bank is tightening the reserve ratio on Chinese banks triggered most equity and commodities market to fall. Same fate happen to FCPO that opened gap down and continue to trade lower with high volume. Hourly chart wise, price just touched the lower Bollinger band today since 21 Jan indicate that seller are testing the market strength to see if there is any further downside potential. Should Bollinger band turned expanding in the afternoon session with MACD Histrogram continue lower and supportive volume will see FCPO to go further downward.

20100126 0930 Malaysia Corporate News.

Mudajaya Middle East Ltd, a 75% owned subsidiary of Mudajaya has entered into an MOU with Modern Electro-Mechanical Projects Ltd (MEPCO) of Saudi Arabia, and Mr Mubarak Abdullah bin Mohammed Al Khafram, with the intention of setting up a specialist equipment procurement contracting company called Mudajaya Power and Water Ltd (MPWL). The purpose of the MOU is to allow MEPCO and Mr Mubarak to enter as active shareholders in MPWL. The MOU is valid for a period of six months. (BMSB)
This is a positive development but not a surprise. This move is in line with the group's strategy in exploring EPCC opportunities in Saudi Arabia.

Genting Singapore has issued a notice to the holders of its S$450m convertible bonds due 2012 for the mandatory conversion of the outstanding bonds into fully paid-up shares at the conversion price of S$0.95. As at 25 Jan, the outstanding Bonds amounted to S$321.1m. (SGX)
This mandatory conversion is not entirely surprising given that i) it satisfies the conditions of the conversion as stipulated in the terms of the bonds and ii) 40% of Genting Singapore’s proceeds from its S$1.5bn rights issue has been earmarked to repay borrowings. We estimate that this mandatory conversion will require about 9% of Genting Singapore’s estimated S$3.5bn post-rights cash balance. But the impact to net gearing is minimal.

Malaysia’s rubber products export is expected to hit RM11.1bn this year with the bulk contributed by rubber gloves, said Malaysian Rubber Export Promotion Council (MREPC) chief executive officer Datuk Teo Suat Cheng. Of the total exports, rubber gloves are expected to generate about RM7.7bn this year.
  • “The outlook for rubber this year is expected to improve considerably especially with news of recovery in the global automotive sector coupled with the expected sterling performance of the rubber glove sector,” she said. In 2009, export of rubber products is expected to reach RM10.6bn with rubber gloves likely to exceed RM7.1bn and constituting about 67% of the total export value. (Starbiz)
Alliance Bank Malaysia has received CEO Datuk Bridget Lai's response and the board will meet to discuss this matter further, says a spokesperson. Alliance Bank Malaysia Bhd said its CEO Datuk Bridget Lai yesterday responded to questions raised by the board in its internal probe. The spokesperson, however, was unable to say when the board would meet or how long it might take to review Lai's response. Lai, when contacted, confirmed having sent the bank a letter with her replies yesterday. (BT)

CIMB Group Holdings has appointed Glenn Muhammad Surya Yusuf and Watanan Petersik as independent non-executive directors. Glenn is a prominent figure in the Indonesian corporate scene, with 28 years of experience in the corporate and financial sectors. Watanan is presently an independent director and chairman of the Nomination and Remuneration Committee of CIMB Thai Bank Public Co Ltd. (BT)

Sarawak State Economic Development Corp (SSEDC) and Borneo Resources Synergy Sdn Bhd (BRS) have agreed to jointly develop a RM40m swiftlet eco-park in Balingian, Mukah Division within the Sarawak Corridor for Renewable Energy. BRS, a whollyowned subsidiary of property development and investment firm Masmeyer Holdings Sdn Bhd, has a 80% stake in the joint venture. SSEDC holds the balance 20%.
  • Sited in a rural setting along the Mukah-Balingian coastal highway, the project will involve the development of 40 three-storey units and 15 three-storey bungalow units. “The project is targeted to be completed not later than 2012. Ideally, it is to be ready this year,” BRS director Choo Beng Kai said. (Starbiz)
Sime Darby Property, a unit of Sime Darby Bhd plans to sign a joint-venture agreement with a local partner to develop an "integrated commercial project" in its Bukit Jelutong township in shah Alam. The company will sign the agreement today, it said without naming the partner. (Bloomberg)

Malaysia Airlines has received approval from shareholders for a proposed RM2.67bn one-for-one rights issue to finance fleet expansion priced at RM1.60 each, but does not rule out another fund-raising exercise.
  • MAS has also signed an agreement with Airbus for 15 A330-300s (including 10 options) between 2011 and 2016. In addition, it will also buy six A380s and four bundled Boeings from Penerbangan Malaysia over the next two years. The rights exercise is expected to complete in 1Q10. 
  • Tengku Azmil said: "Based on our projection of all aircraft ordered, we do not need another rights issue either this year or next year. But we can't tell (for sure) ... the (airline) industry is very dynamic. Maybe there will be some other transactions that may require us to go back to shareholders. So, we cannot rule out further fund-raising exercise for other purposes." (SBT, BT)
AirAsia is set to announce six additional routes to India on the heels of a five-day state visit to India by Malaysian Prime Minister Najib Razak.
  • AirAsia currently flies to Tiruchirappalli, Trivandrum, Kolkata and Kochi, and claims a load factor of 82% for Kochi. Chennai, Hyderabad, Bangalore and Mumbai have been identified as cities on the carrier's radar. 
  • Two of the six additional routes are long haul, to be operated by AirAsia X. The additional routes would give South-east Asia's biggest budget carrier a total of 10 destinations to India from Malaysia.
  • While its focus in the past few years has been on China where it has established over 200 daily flights, the carrier has now turned its attention to India. 'India is underserved and fares are expensive,' head of commercial Kathleen Tan said.
  • Ms Tan believes that there is a very large VFR (visitors, friends, relatives) market to be tapped, owing to the fast expanding network of Indian small to medium companies as well as Indian professionals operating and working in the region. (SBT)
AirAsia hopes to boost its food and beverage revenue to RM48m this year, from RM38m achieved last year. It expects its latest tie-up with F&N Beverages Marketing Sdn Bhd, which allows the airline to sell 100PLUS and Coca-Cola on board its flights from Malaysia from February 1, to help meet this target.
  • "We target to sell some 24,000 cans per month, and hopefully we can increase our drinks revenue this year by some 20%," AirAsia chairman Datuk Aziz Bakar said. The exclusive agreement is for a one-year duration with the option for the airline to renew it. The drinks will be sold for RM5 per can on flight. (BT)
Malaysia Airports Holdings (MAHB) said it signed a preliminary agreement to provide technical services to GMR Hyderabad International Airport. The accord will allow Malaysia Airports to “further explore and venture in commercial opportunities with” GMR “particularly for the Rajiv Gandhi International Airport in Hyderabad,” the company said. (Bloomberg, BT)

Malaysia's timber products will use the "green lane" to the European market next year, in line with the implementation of the European Union's (EU) timber trade legislation, says the EU ambassador Vincent Piket. Malaysia is undertaking a bilateral voluntary partnership with the EU under its Forest Law Enforcement, Governance and Trade (FLEGT) Action plan to ensure that only licensed and certified timber enter the EU markets. Malaysian Timber Certification Council chairman Datuk Dr Freezailah Che Yeom said negotiations will come to an end possibly "within this quarter".
  • Dr Freezailah, who is adviser to the Ministry of Plantation Industries and Commodities on the negotiations with the EU, said the talks involve consultations between over 100 stakeholders, including industry players, the government and non-government organisations. 
  • "Some stakeholders feel that it (FLEGT) is too stringent at this point of time, while others feel it is not stringent enough."Malaysia has to strike a delicate balance but nonetheless, we have a strong commitment (to the plan) and where there is a will there is a way," he added. (BT)
The overall IT services market in Asia Pacific Excluding Japan (APEJ) is estimated to grow at a compound annual growth rate (CAGR) of 9.9% between 2009 and 2013, touching US$59.4bn by 2013. IDC Asia/Pacific Semiannual IT Services Tracker said with improved business sentiment and encouraging signs of economic recovery within the region, the IT services market looks set to regain its momentum to rebound at a forecasted 8.9% in 2010.
  • Apart from the positive economic indicators, IDC attributes this growth to three other key drivers, namely adoption of new technologies, impact of stimulus packages, particularly in the network services space as Asian governments look to improve connectivity to remote areas and continued investment in outsourcing and managed services, particularly in growth markets such as India. (Bernama)
Time dotCom will next Tuesday officially launch its FTTH offering to retail users in Mont Kiara with transmission speeds of up to 50Mbps. The pricing is still being worked out, said a company source. This is the first FTTH commercial rollout even though Telekom Malaysia is conducting trials for its HSBB in several areas in Kuala Lumpur. TdC, which offers up to to 1Gbps, has more than 10,000 corporate/enterprise customers. (StarBiz)

A group of potential suitors, including state-owned investment agency Khazanah Nasional, is said to have lined up for a stake in Singapore's Great Eastern Life Assurance (Malaysia) to help realise the insurer's takaful ambition. Sources say Great Eastern was one of the front runners to secure one of two family takaful licences to be issued by Bank Negara soon.
  • It was not clear how big a stake in Great Eastern Life would be up for sale, but it was believed to be up to 30%. A source in Great Eastern said that the insurer had been directed to look at several shareholding options. 
  • "We were asked to look for a new shareholder. We are evaluating several options now," he said. He said that if the company failed to find a shareholder, it might consider an initial public offering after obtaining a takaful licence. "Another option on the cards could be something that has not been done in the country before," the source said, without elaborating. (BT)
Khazanah Nasional has renewed the contract of managing director Tan Sri Azman Mokhtar for another three years, effective June 1.The company said in a statement that the board had on Dec 7 decided to renew Azman’s contract to May 31, 2013. Azman assumed his current position on June 1, 2004. (Starbiz)

The completion of MRCB's rights issue by the middle of next month will pave the way for the company to acquire some parcels of strategic land owned by the Federal Government in the Klang Valley, according to industry observers. It is understood that MRCB’s management recently reiterated its intention to acquire several plots of such land in the Klang Valley, including a 60-ha parcel in Jalan Cochrane and 8-12ha at Ampang Hilir. Industry observers believe the award of the Federal land deals will only be finalised in June during the tabling of the 10MP. (Star)

MK Land Holdings said its turnaround efforts were going smoothly as planned and that management remained solid. It was responding to a report in this newspaper last Saturday, which had said that its turnaround plan might have hit a bump as several senior officials were leaving. MK Land said it was "intensely moving ahead with its three-pronged approach", which entailed sales of properties, cost-control measures and a corporate exercise to strengthen its position.It added that there was no dispute within the MK Land management and that Tan Sri Mustapha Kamal Abu Bakar was still leading its team of executives. (BT)

The PM has met with the three potential candidates to succeed Tan Sri Mohd Hassan Marican and a decision on the post of president and CEO at Petronas would be made in the next few weeks. There is a good likelihood that an internal candidate may be picked among three names that are currently being talked about – Datuk Shamsul Azhar Abbas (former MISC MD who retired in Jan 09), Datuk Anuar Ahmad (Petronas Dagangan chairman) and Datuk Wan Zulkiflee Wan Ariffin (former MD/CEO of Petronas Gas from 2003-2007). (Star)

DRB-Hicom said it is in a preliminary stage of exploratory discussions with Bahrain-based Islamic lender Al Baraka on the latter’s interest in Bank Muamalat. DRB-Hicom did not elaborate further, saying that any decisions thereto are subject to among others Bank Negara Malaysia’s approval. (BT)

YTL Corporation has set up a sub-subsidiary in China known as Shanghai YTL Hotels Management Co. Ltd (SYLHM). YTL Corp said SYLHM's principal nature of business was to provide hotel management services,hotel development and design advisory and other related services. The new entity is wholly owned by YTL Singapore Pte Ltd, which in turn YTL's Corp's wholly owned subsidiary. (Financial Daily)

Dayang Enterprise Holdings’s subsidiary, Dayang Enterprise Sdn Bhd, has won a RM8.5m job from Petronas Carigali Sdn Bhd. The job is for the hook up and commission of Tangga Barat Drilling Riser Platform (TBDR-A), Tangga Barat Flare Platform (TBFP-A) and Bridges for Tangga Barat Cluster Development Project Phase 1. (BT)

Berjaya Assets said its wholly-owned unit Berjaya Times Square Sdn Bhd has sold off some 6.73m shares of Berjaya Corp for RM8.95m in the open market between December 31 last year and January 20 this year. The share disposal is roughly 0.18% cent of the total issued and paid-up share capital of Berjaya Corp, comprising 3.84bn shares of RM1.00 as at January 25 2010. “The gross proceeds from the disposal has been utilised to repay bank borrowings of Berjaya Times Square,” it told Bursa Malaysia yesterday. The disposal will result in a net gain of RM7.06m at the Berjaya Assets Group level. (BT)

Vastalux's Petronas license has been suspended. However, all existing projects awarded by Petronas and/or its subsidiaries are not affected and are on schedule. Vastalux is seeking for an immediate clarification from Petronas and has put forth an appeal for the reinstatement of the license. (BMSB)

mTouche wants to divest its stake in GMO Ltd - its associate company which was formed about four years ago. "We have been in talks with with various potential buyers from time to time," said mTouche CEO Eugene Goh. The mobile and television content business has been challenging in China lately, driven by the government's strict stance on televi-sion, mobile and Internet contents. "This has affected our business, especially GMO, as now, it takes longer time for the authorities to approve our products, such as mo bile contents," Goh explained. (BT)

Monday, January 25, 2010

20100125 1838 FCPO EOD Daily Chart Study.

FCPO closed : 2469, changed : +14 points, volume : lower.
Bollinger band reading : bearish.
MACD Histrogram : continue to recover, some short covering.
Support : , 2440, 2400 level.
Resistant : 2500, 2521 level.
Comment :
FCPO traded marginally higher with low volume changed despite a better export figure released by both export cargo surveyor. Trade mostly range bound through the day with some testing activited took place at near resistant and support level. Technically, the daily chart still biased to a downside market despite MACD Histrogram reading improve slightly but still remained under the negative territory. Fundamental wise, good news release but ended with a doji bar candle may suggest that the underlying market could still be weak.
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.

20100125 1736 FKLI EOD Daily Chart Study.

FKLI closed : 1295, changed : -0.5 point, volume : lower.
Bollinger band reading : neutral, side way  range bound.
MACD Histrogram : continue lower, seller testing their luck .
Support : 1290, 1286 level.
Resistant : 1295, 1300, 1309.
Comment :
FKLI closed half point lower after seller tested a new low but still feel not convinced enough with the market underlying weakness lead FKLI to a late recovery forming a wide range bar candle. Technically, daily chart and indicators readings suggesting a side way range bound market with some testing activities at the support and resistant level.
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.

20100125 1305 FKLI Mid Day Hourly Chart Study.

FCPO closed : 1293, changed : +2.5 points, volume : high.
Bollinger band reading : bearish biased.
MACD Histrogram : recovering slowly.
Support : 1290, 1286 level,
Resistant : 1295, 1300 level.
Comment :
Last Friday DJIA weaker closing leads FKLI to opened gap down near support level but recover slightly toward the close of the first session. FKLI hourly chart still looks weak by trading at below middle Bollinger band level. Expection market to trade side way range bound downside biased.

20100125 1255 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2479, changed : +24 points, volume : low.
Bollinger band reading : sideway bearish biased.
MACD Histrogram : getting higher slowly.
Support : 2470, 2440, 2400,
Resistant : 2500, 2521 level.
Comment :
FCPO recovered partially in the morning session after export cargo surveyor ITS reported a 20% improvement in crude palm oil export for the period of 1~25 Jan 2010 compare to the same period last month. Hourly chart suggesting that FCPO is likely to trade side way rangebound upside biased recovery stage but the upside room could be limited to the immdiate resistant levels unless there is a big suprise export data release by SGS export cargo surveyor on the second half session.

20100125 0943 Malaysia Corporate News.

PLUS Expressways entered into a Share Purchase cum Shareholders' Agreement with Navayuga Engineering Company Limited, Indu Projects Ltd, M/s. Abhishek Developers and Indu Navayuga Infra Project Private Limited for the proposed acquisition of up to 74% of Padalur-Trichy Highway, in the State of Tamil Nadu, south of Chennai, India. The highway is 39km in length and has a concession period of 25 years ending 2031. Construction is 95% completed (33km completed). PLUS will internally fund the acquisition cost of RM74m. (BMSB)
This news is positive but not entirely a surprise as PLUS had earlier indicated its intention to fulfill its 30% lane-km target for end 2009 with a potential acquisition of a foreign highway. This acquisition adds on to PLUS' existing three regional highways and also represents its 2nd acquisition of an Indian Highway. Indicative NAV of Padalur-Trichy Highway is beween RM150-200m based on an IRR of 15-18% which constitutes less than 1% of PLUS' total DCF value.

SapuraCrest’s 40%-owned Offshore International FZC (OIF) was awarded a US$75m subcontract by Larsen & Toubro to transport and install four platform jackets offshore Mumbai for ONGC. The subcontract is part of the main engineering, procurement, installation and commissioning contract which L&T had won from ONGC. OIF is expected to start the offshore work around mid-Nov using a pipelay barge called the LTS3000. (BMSB) Please refer to our note for comments.

The Rural and Regional Development Ministry will spend about RM2.1bn to provide rural basic infrastructures in Sabah and Sarawak under the National Key Result Areas (NKRA) this year. Its Minister, Datuk Seri Mohd Shafie Apdal, said the allocation also involved the completion of last year's projects to build new roads and provide water and electricity supply. Of the total about RM928m would be allocated to Sabah and RM1.2m for rural areas in Sarawak.
  • He said for NKRA's rural road projects, Sabah was allocated RM134.9m to complete 40 of last year's projects and another RM56.8m to implement 36 new projects, while Sarawak was allocated RM146m to complete 14 of the existing projects and RM352.3m to implement 62 new ones.
  • For NKRA's rural electricity supply projects, Sabah would get RM332m to complete 353 existing projects and RM81m to implement nine new ones, while Sarawak would get RM236m to complete 281 of last year's projects and RM56m to implement 10 new projects, he said.
  • Sabah and Sarawak would also receive of RM183m and RM211m respectively to implement rural water supply projects. (Bernama)
Sarawak needs coal-fired power to complement its hydro power generation, especially in Sarawak Corridor of Renewable Energy (Score) to meet high demand in energyintensive industries, Sarawak’s Second Minister for Planning and Resource Management Datuk Awang Tengah Ali Hassan said. “Yes, we know that coal is not a renewable energy. However, with the combination of resources, coal can be used as a source,” he added. (Bernama)

The14 initial public offering (IPO) applications received by the Securities Commission (SC) in 4Q09 reflected a higher interest in equity fund-raising by local and foreign companies. The number of applications was a 75% increase from the 8 IPO applications received in 3Q09.
  • The total IPO applications for 2009 stood at 35 compared with 23 in 2008. From the 35 IPO applications, the SC approved 12 and rejected two. 8 of the 12 companies had listed on Bursa Malaysia, including Maxis, which was one of the largest IPOs globally in 2009 having raised RM11.2bn from the market. (BT)
Indonesia is planning to set an exports quota for the tropical oil within the next five years in order to boost the by-product industry, Industry Minister M.S. Hidayat said. "For the downstream industry to grow, we need to limit exports by introducing a quota system," Hidayat said. In future, firms will be penalised for shipping more than their quota, while those who produce refined products will get incentives.
  • The government has projected this year's output to reach 23m tonnes, up from 21m tonnes in 2009. More than half of Indonesia's palm oil exports are in the form of crude palm oil, whereas rival Malaysia ships out mostly higher-value refined products. (Reuters)
Oil palm planters in Sarawak want a more “realistic” tax regime for the palm oil industry. This is especially for new planters with immature hectarage who also have to pay the hefty taxes, levy and cess imposed by the Federal and State Governments. Sarawak Oil Palm Plantation Owners Association (SOPPOA) chairman Datuk Abdul Hamed Sepawi said it was unfair to burden new planters with taxes based on the price of crude palm oil (CPO) as many of them were not even generating profits.
  • Given the shortage of mature areas, the cost of production among Sarawak planters is also the highest in the country at RM1,700 to RM2,000 for a tonne of CPO compared with RM1,100 to RM1,200 for the more efficient planters in Peninsular Malaysia. “We hope the proposed goods and services tax will improve our tax exposure. (Starbiz)
The oil palm industry has assumed a pivitol role in Sabah's economic development, Chief Minister Datuk Seri Musa Aman said. He said the industry also served as a catalyst for the development of other economic sectors such as transport, eco-tourism and livestock breeding. The oil palm industry, if managed systematically, can reap lucrative returns to the growers and contribute significantly to the state's economy," added Musa. (Bernama)

The much-awaited auction of radio waves for 3G in India is expected to garner at least Rs250bn (US$5.4bn) from private bidders, the communications minister A Raja said. "As the government has decided to hold the auction by February end, it is expecting to fetch the amount as a one-time payment from the bidders," he said. The government expects to garner 350bn (US$7.6bn) from sale of spectrum in this fiscal year. (Economic Times of India)

PAAB has submitted a proposal to take over the assets of water concessionaires in Selangor to the Energy, Green Technology and Water Ministry. However, according to a source, the ministry is combing through several fundamental issues before the offer can be made to the water players. “It’s not really moving as expected,” the source said.
  • It is believed that Minister Datuk Peter Chin has set a target of March 2010 for the restructuring process to be completed. “The restructuring hinges on resolving a few fundamental issues which are being ironed out now. Once resolved, the restructuring is probably 50% done. So, the target is (still) well on track,” said an industry source. (Star)
Kuwait Finance House (Malaysia) (KFHMB) is looking to buy Grade A commercial buildings and residential towers in Kuala Lumpur. "KFHMB prefer properties in the KLCC area. There are a few going below market value. Any transactions by KFHMB will be done outside of the bank's balance sheet," a source said.
  • He said KFHMB will set up a special real estate fund or entity to invest here, similar to what it did when it bought Glomac Tower and The Pearl @ KLCC. On KFHMB's move to not proceed with the purchase of half of YNH Tower on Jalan Sultan Ismail for RM920m, the source said the plan was aborted as the parameters had changed along the way. 
  • "From day one that we looked into the deal until now, there were a lot of variation. There were certain conditions that we stipulated, which were not met within the transaction," he said. (BT)
It is believed that Mizuho Financial Group may be pursuing one of several new banking licences that Malaysia plans to offer by 2012. Mizuho Financial Group Inc, Japan's third largest bank, says it is keen on obtaining a banking licence in Malaysia amid growing business opportunities between both countries. At present, the group has a representative office in Kuala Lumpur and an offshore branch in Labuan, under the Mizuho Corporate Bank banner.
  • "We would like to establish a reinforced structure and solid base in Malaysia in order to provide our customers with not just traditional lending and banking services, but also a full range of sophisticated financial solutions to meet their business development needs," a Mizuho spokesperson from the group's head office in Tokyo said (BT)
Genting Singapore’s Resorts World Sentosa (RWS) revealed that its four newly opened hotels 'have reached maximum capacity' until end-April but the IR ‘managed to free up some rooms’ in March and April. This past weekend (Jan 23-24), RWS saw occupancy rates at its four hotels soar to over 90%, said Robin Goh, assistant director for communications.
  • He added that both the Festive Hotel and the Hard Rock Hotel Singapore reported full houses. Already, every room during a nine-day period spanning the upcoming Chinese New Year holiday from Feb 13 to Feb 21 has been snapped up. (SBT)
Genting Singapore's Resorts World Sentosa has fired more than 30 casino employees. It was understood that the workers’ applications to work at the gaming tables were rejected by the Casino Regulatory Authority (CRA). No reasons were given, but it was likely that the affected workers had brushed with the law in the past. (Straits Times)

Malaysia Airlines
said its maintenance, repair and overhaul (MRO) services joint venture in India, MAS-GMR Aerospace Engineering (MAG), signed its first major deal with Jet Airways to provide heavy maintenance services for 10 years with the possibility to extend for another five years.
  • MAG is constructing its R400 crore MRO related facilities on a 250-acre site next to the Rajiv Gandhi International Airport in Hyderabad and is expected to begin operations by the first quarter of 2011 with management planning to make it into the preferred MRO service provide in the Indian subcontinent. (Malaysian Reserve)
Passenger and cargo traffic through the Senai International Airport in Johor is expected to grow significantly this year, driven by new airline services and projected new investments in Johor's Iskandar region, according to deputy chief executive officer Shahrull Allam Shah. Last year, the number of passengers using the airport fell 10% to 1.47m, while cargo volume dropped sharply to 5,200 tonnes due to the global economic crisis.
  • Senai Airport has a handling capacity of 4.5m passengers and 100,000 tonnes of cargo per year. Currently, airlines operating out of the airport comprise Malaysia Airlines, AirAsia and Firefly, while cargo airlines include MASkargo and Qatar Airways Cargo. The airport operator expects passenger traffic to increase to 1.6m by 2014, taking into account projected population growth within the Iskandar region from 1.4m in 2005 to three million by 2025. (BT)
Naza Group has lined up RM6.4bn of property projects this year and is in talks for its first overseas real estate foray in China. The company aims to more than double its property unit's revenue to RM2bn in five years. It has longer-term plans for a property trust and is drawing investors for a proposed 100-floor tower in Kuala Lumpur, CEO SM Nasarudin SM Nasimuddin said. (Bloomberg, Malaysian Reserve)

The property market in Malaysia is on an upward trend with middle class suburban property prices rising driven by the steady stock market movement. "However, the highend and high-rise property market is still in a cautious mode with property developed by branded developers expected to do well," said Ho Chin Soon, director of Ho Chin Soon Research.
  • Ho said demand for high rise properties in Kuala Lumpur was expected to continue due to limited land space. Ho said Malaysia was relatively sheltered from the global financial crisis (compared to the Asian financial crisis) and there was still an upside potential in property investment in Malaysia. (Bernama, Malaysian Reserve)
Plans to rejuvenate MK Land Holdings have hit a snag as three of its four COOs who were roped in to turn around the property development company are leaving. It is understood that there is a dispute over management of the company, controlled by tycoon Tan Sri Mustapha Kamal Abu Bakar.
  • Under the leadership of the four COOs, MK Land was recording average sales of RM30m/month, three times more than prior to their appointment. "With the key people leaving, there is a possibility it will impact the company's performance," the source said. (BT)
YTL Corp has proposed to use 81.5% of its proposed RM1.36bn bond issuance to refinance its 2007/2012 exchangeable bonds. Another RM230.26m would be used to finance future investments and/or repayment of borrowings. The remaining RM21m would be utilised within six months for expenses of the exercise. (Financial Daily)

Guinness Anchor (GAB) plans to spend about RM20m on Tiger Beer brand’s advertising and promotion activities for Chinese New Year and FIFA World Cup campaigns. Marketing manager who looks after the Tiger Beer business, Sean Koh said the company was expecting better sales for its Tiger Beer this year compared with last year, mainly due to encouraging momentum in the Year of the Tiger and its aggressive marketing campaigns. He expected a better business scene for the brewery market this year supported by the economic recovery and hoped this would improve spending sentiment. (Starbiz)

Ho Hup Construction Co has proposed to revamp its “initial regularisation plan” following fierce opposition from a group of shareholders led by its former MD. MD Lim Ching Choy said the revised scheme was “different” in structure from the original plan, but the ultimate goal remained the same – “to clean up the company’s balance sheet and to enable it to move forward.” The company has applied to the exchange for a three-month extension from 4 Feb to submit a revised regularisation plan. (Starbiz)

Hock Seng Lee (HSL) has secured a road construction job worth RM35.8m tendered from Sarawak's Works Department. Scope of the works includes earthworks, drainage, flexible pavement and bridges, expected to be completed by Feb-11. (Malaysian Reserve)

Yeo Hiap Seng (YHS) said the loss of the sales and distribution of 'Red Bull' products in Malaysia effective April 1 this year will cut group revenue by 10.8% and operating profit by 7.8% for FY10. (Malaysian Reserve)

Chemical Company of Malaysia (CCM) said its pharmaceuticals and fertilizers divisions plans to spend about RM119m for capital expansion in 2010. CCM expects to finance this via internal funds and bank loans, its group MD Datuk Dr Mohd Hashim Tajudin said. (Financial Daily)

Saturday, January 23, 2010

20100123 0104 FCPO Weekly Chart Study.

FCPO closed : 2455, changed : -35 points, volume : higher.
Bollinger band reading : side way .
MACD Histrogram : getting lower.
Support : 2400, middle Bollinger band, 2240 level.
Resistant : 2521, 2650 level.
Comment :
Correction continued this week after market tested the support near 2400 level and recovered slightly. Weekly chart suggesting a continue side way range bound market with possible testing the weekly middle Bolliger band level before resuming it's longer term uptrend movement.

20100123 0047 FCPO EOD Daily Chart Study.

FCPO closed : 2455, changed : -33 points, volume : lower.
Bollinger band reading : bearish.
MACD Histrogram : recovering slowly.
Support : 2440, 2400,
Resistant : 2470, 2521, middle Bollinger band level.
Comment :
Another tricky day for FCPO! Recovery on the US Dollar and news related to China economy triggered a wild swing on FCPO market today forming a doji bar candle. Daily chart remained biased to a bearish outlook in the near term with some recovery taking place. Intraday trader challenging market.  
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.

20100123 0029 FKLI Weekly Chart Study.

FKLI closed : 1295.5, changed : -6.5 points, volume : slightly lower.
Bollinger band reading : bullish but side way likely.
MACD Histrogram : nearly unchanged, rematch for buyer and seller next week.
Support : 1286, middle Bollinger band level.
Resistant : 1309, 1315 level.
Comment :
Weekly chart for FKLI still suggesting a uptrend side way range bound market for the comming week. Factor or catalyst to watch will be interest rate and news from China economy related policy.

20100123 0005 FKLI EOD Daily Chart Study.

FKLI closed : 1295.5, changed : -9 points, volume : higher.
Bollinger band reading : bullish but side way likely.
MACD Histrogram : getting lower, seller adding position.
Support : 1295, 1290, 1286 level.
Resistant : 1300, 1309, upper Bollinger band level.
Comment :
FKLI traded in negative zone today with supporting selling volume ended the day with a doji bar candle. Once tested the low of support level at the daily chart middle Bollinger band followed by positive news from China lead major Asia markets and the FKLI to recovered some of the early morning session losses. Daily chart uptrend trend line remained intact but sellers are likely to take their chances to test the market strength at further lower price level.
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.

Friday, January 22, 2010

20100122 1440 Heres Comes The China Effect Again !

Alert ! Commodities traded in China recovering like crazy !!! Still searching for the news !

20100122 1345 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1294, changed : -10.5 points, volume : high.
Bollinger band reading : bearish.
MACD Histrogram : getting lower, seller seems encouraged.
Support : 1295, 1290 level.
Resistant : 1300, middle Bollinger band, 1309 level.
Comment :
Haha! Finally some excitement happen today after the Dow closed lower followed by Hang Seng Index opened gap down and traded lower for the 3rd day. The tested few times 1300 support has now turned into resistant level for FKLI. Hourly chart do looks bearish with all indicators going align for negative signal. However, the last hourly candle closed way below the lower Bollinger band shows a temporary oversold market condition.