Wednesday, March 31, 2010

20100331 1823 FCPO EOD Daily Chart Study.

FCPO closed : 2551, changed : +6 points, volume : lower.
Bollinger band reading : side way downside biased.
MACD Histrogram : recovering, seller lock in partial profit.
Support : 2550, 2521, 2500, 2470 level.
Resistant : 2570, 2590, 2620 level.
Comment :
Better export data released today seems didn't entice FCPO enough to end the day just fraction higher in lower volume after yesterday ultra high volume transacted. Daily chart technical reading has turned from a downside biased into a side way range bound downside biased market as the Bollinger band width stopped expanding today.
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.

20100331 1757 FKLI EOD Daily Chart Study.

FKLI closed : 1316.5, changed : -1.5 point, volume : low.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : getting lower, buyer reduce exposure.
Support : 1312, 1307, 1300  level.
Resistant : 1318, 1325, 1330 level.
Comment :
Last transaction day of the month FKLI(Mar 2010 contract) ended marginally lower in thin volume as most trader turned their focus to Apr 2010 contract. Daily chart still suggesting a side way range bound market with a little upside biased. However, base on today Apr 2010 contract turned spot month chart tomorrow that closed the day at a 10 points premium should make the daily chart turned into bullish further upside potential daily chart reading.
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.

20100331 1447 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2535, changed : -10 points, volume : low.
Bollinger band reading : side way range bound.
MACD Histrogram : up and down, bueyr and seller still battling.
Support : 2521, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
Despite improving export data released this morning, FCPO eased lower in low volume transacted. Hourly chart reading suggesting a side way range bound market with a little downside biased potential.

20100331 1429 FKLI Mid Day Hourly Chart Study.

FKLI(Apr2010) closed : 1322, changed : +2 points, volume : low.
Bollinger band reading : side way range bound little downside biased.
MACD Histrogram : recovering,  seller reducing position.
Support : 1318, 1312, 1307, level.
Resistant : 1325, 1330, 1335 level.
Comment :
FKLI traded mostly higher in the morning session with thin volume changed hand. Hourly chart wise, market seem facing some resistant near the middle Bollinger band level when price tried to crossover it. Overall. market is likely to trade side way range bound little downside biased.

20100331 1108 Malaysia Corporate News.

Hong Leong Bank has revived an earlier offer to buy out smaller rival EON Capital at the same price, which was to buy out its assets and liabilities for RM4.92b cash, which equal to RM7.10/share. The new proposal almost mirrors the one rejected earlier by EONCap's previous board. Similar to the condition set in the previous proposal, EONCap has been given seven days to decide if it will table to offer to shareholders. Once it agrees, the smaller lender must deal with Hong Leong exclusively on the sale, according to the proposal. (BT)

Unlocking the full potential of smallholder planters and genome research are the two key initiatives identified by the Government to boost higher productivity and sustainability level of the palm oil industry in the country. The National Economic Advisory Council (NEAC) said that more than one-third of palm oil production came from smallholders, who currently had lower yields than commercial estates. (Starbiz)

Petronas will list two "sizeable" subsidiaries with good track records on the local stock exchange this year, says Prime Minister Datuk Seri Najib Razak. "These initiatives have the goal to reduce the government's presence, directly or indirectly, in business activities that are best carried out by the private sector," he further commented. Petronas had identified the companies to be listed, but did not name them. "We have heard for some time that the Petronas group was looking at listing some of its subsidiaries. So we look forward to hearing the details of that. We're very much looking foward to the (listings) happening," says Bursa Malaysia CEO Datuk Yusli Mohamed Yusoff. (BT)

Tenaga Nasional expects foreign investors' interest in its shares to return once the government gives more clarity on the tariff structure and fuel pass-through formula, says CEO Datuk Seri Che Khalib Mohamad Noh hopes that an announcement will be made soon by the government on the matter, perhaps before the next power tariff review due in early July. "If the government is going to remove (gas) subsidy, this more transparent cost pass-through formula has to come together, because you can't have a removal in subsidy on one side, while the power tariff is not certain," said Che Khalib. (BT)

The Energy, Green Technology and Water Minister Datuk Seri Peter Chin has announced the appointment of Tan Sri Dr Ahmad Tajuddin Ali and Ahmad Fauzi Hassan as chairman and chief executive officer (CEO) respectively for the Energy Commission of Malaysia for two years, effective April 1. The appointments were made pursuant to the separation of the post of chairman and CEO, under the Energy Commission Act 2009 (Amendment). (Bernama)

CIMB Group expects the corporate deal pipeline to remain positive after a strong start to the year, chief executive officer Datuk Seri Nazir Razak said. “The year has started off much better than I expected,” he added. “It was a very strong quarter for the capital markets side. We got privatisations and M&As and IPOs,” Nazir said. “Some of the deals announced today (yesterday) means that there will be more in the pipeline. I’m positive about the dealflow,” he said. (Starbiz)

Axiata Group says it is likely to use part of proceeds from the sale of shares in its Indonesia-based subsidiary to reduce debts and as dividend to shareholders. "We are looking at a few possibilities. One of it is a special dividend or we make it as part of a longterm dividend, or we pare down our debts. What we are more inclined at this point in time, is a combination of the latter two. This means, we will pare down the debts and at the same time, build enough cash accumulation, so that we can give shareholders a good progressive dividend," said president and group CEO Datuk Seri Jamaludin Ibrahim. (BT)

Malaysia's first 4G WiMAX network has the potential to change how people live, work and communicate, according to YTL Corp MD Tan Sri Francis Yeoh. More importantly, 4G services could enable businesses to be conducted more efficiently, which is in line with the Government's New Economic Model (NEM) to transform the country into a high-income nation, he said. "A 10% improvement in broadband penetration increases GDP by 1.3%. Currently our broadband penetration is only 25% and if we move it to 75%, we will have a 6% increase in GDP" and would create a more sustainable economy dependent on knowledge workers, he said. (Starbiz)

YTL Corp is optimistic of better years ahead, helped by the recovery of the property market, its wireless broadband business, as well as its other businesses. "For the full year results (ending June 30 2010), the absolute sum will be double that of our first-half numbers," said group MD Tan Sri Francis Yeoh. Meanwhile, Yeoh said the group will use the US$350m (RM1.1bn) raised via a five-year exchangeable bonds to build its war chest. (BT)

The India telco ministry has cleared all nine telecom companies to participate in 3G airwaves sale process scheduled to begin on Apr 9. It has also approved the 11 firms that submitted bids for broadband wireless spectrum (BWA) auctions that will begin after completion of 3G sale process. According to the telecom department, all six of India’s largest private telecom companies — Bharti Airtel (SingTel's Indian associate), Reliance Communications, Vodafone Essar, Idea Cellular (Axiata's Indian associate), Tata Teleservices and Aircel — have bid for 3G spectrum in all 22 circles. These six companies have also bid for BWA airwaves on pan-India basis. Three other service providers — Etisalat, S Tel and Videocon — will take part in the 3G sale process, but in select circles. These three operators have also not bid for BWA airwaves, the telecom department said. (Economic Times of India)

IJM Corp is bidding for some RM4bn worth of jobs at home and abroad, says MD Datuk Krishnan Tan. "For the construction sector, in terms of order flow and news flow, it should get a lot more positive going forward," says Tan. The group has a construction order book of RM3.6bn and this is expected to cross the RM4bn mark by the year end. He noted that this is still far off from the RM6bn order book that IJM used to enjoy at its peak.
  • Tan also said the government's plan to tender out land to the private sector to develop is a new phenomenon in Malaysia, but is something that is already done in countries like Hong Kong and Singapore. Prime Minister Datuk Seri Najib Razak said yesterday that several parcels of land in Jalan Stonor, Jalan Ampang and Jalan Lido in Kuala Lumpur have been identified to be tendered out. "I think it's a good process and I'm sure the big property players would want to participate because these are quite attractive land pieces," he said. 
  • IJM has some 4,000ha to 5,000ha in Penang, the Klang Valley and Johor. (BT)
The International Air Transport Association (IATA) announced that February 2010 international scheduled air traffic showed continued strengthening of demand.
  • Compared to February 2009, passenger demand was up 9.5%, while cargo demand grew 26.5%. Passenger demand must recover by a further 1.4% to return to pre-crisis levels. Cargo traffic, which plunged much further than passenger demand, has a further 3% to recover in order to return to pre-crisis levels. 
  • The highlight for February was improved load factors which stood at 75.5%. Considering that February is traditionally the weakest month for travel, and if seasonally adjusted, this translates to an all-time record February load factor of 79.3%. While demand increased by 9.5%, supply was held back to just 1.9%.
  • In contrast to Europe (+4.3% yoy) and North America (+4.4%), Asia-Pacific carriers posted strong international passenger traffic growth of 13.5%, which was partly boosted by the timing of the Chinese New Year. Compared with the mid-2009 low there has been a 19% rebound.
  • Despite the sluggish US economy, North American airlines have seen an air freight volume rebound (+34.1%) equivalent to those experienced by Asia-Pacific (+34.5%) and Latin American airlines (+41.9%). European freight volume grew just 7.2% in February. The global strong air freight upturn has been largely driven by the business inventory cycle, which is expected to wear-out in 2H10 when inventories reach normal levels. (IATA)
Cargo airline Transmile Air commenced operations to Singapore's Changi Airport, operating six weekly scheduled cargo flights from Singapore to Kuala Lumpur via Kuching and Labuan. Transmile Air chief operating officer Robert John Hyslop said the airline's operations from Changi Airport was especially ideal for the oil and gas industry, as Transmile would be able to accept shipments that were too large or bulky for shipping on narrow-body passenger aircraft. (Bernama, BT)

Vale SA and BHP Billiton Ltd ended a 40-year system of setting annual prices for iron ore by signing short-term contracts with Asian mills. Sumitomo Metal industries Co agreed to pay Vale US$100-110 a tonne for the quarter starting April 1, a spokesman said. BHP said it will sell the majority of its production to Asian steel mills on shorter-term contracts without giving pricing. Moving to quarterly pricing will help steel producers benefit from surging spot prices for iron ore, which are trading at more than double the annual-contract price. (Bloomberg)

Genting says it is extensively scouting the US for strategic investments. It is also keen to invest in this region where the gaming market is opening up, head of strategic investments and corporate affairs Datuk Justin Leong said. (BT)

Sapuracrest Petroleum is bidding for projects worth as much as RM6bn in the region, including Australia, Saudi Arabia and India, says executive vice-chairman Datuk Shahril Shamsuddin. He hopes to secure between 50-60% of those jobs. "We will continue to bid for projects. Our order book now stands at RM11bn," he said. "I think it's going to be better than last year. Signs of recovery in developing countries are already there. That will drive more development in the oil and gas industry. So the activities there will increase," he further commented. (BT)

Salcon has been awarded a RM11.8m contract to build a sewage treatment plant in Kota Baru, Kelantan. The group said the project is expected to contribute positively to Salcon's earnings for the FY10 and FY11. (BT)

Foreclosed properties worth an indicative value of RM235m under Pengurusan Danaharta Nasional are up for grabs this year. Muhammad Solleh Ramli, head of property department of Prokhas, which manages the tender, said these properties were located across the country. "The tender involves mostly local property investors," Muhammad Solleh said. Prokhas' upcoming real estate tender exercise, a month-long initiative from April 5 to May 4 this year, involves a total of 110 property listings across multiple segments. These include agricultural land and development projects, besides residential, commercial, industrial, office and retail units. (Financial Daily)

Parkson Holdings will spend some RM250m this year to refurbish and increase retail space by a fifth across China, Malaysia and Vietnam. The Malaysian retailer is looking at adding 12 new stores in the three countries, bringing the total number of stores to 97 by year-end. Parkson is also expected to start construction of its first outlet in Cambodia in the next few months, with opening scheduled for 2012. (BT)

Yinson Holdings is buying a RM68m vessel to support its venture in the marine transport industry. The group bought the vessel from Airia Jaya Marine. (BT)

Favelle Favco has accepted purchase orders worth a combined RM79.8m to supply offshore cranes and tower cranes to five companies. The cranes are scheduled to be delivered by the end of this year and the middle of 2011. (BT)

20100331 1057 Malaysian Economic News.

The New Economic Model (NEM) will be realised through an Economic Transformation Programme (ETP), one of the four pillars to propel Malaysia to being a sustainable and inclusive high-income economy and developed nation status by 2020. Three principles of the NEM are high income, sustainability and inclusiveness. Eight strategic reform initiatives are set out to achieve this transformation.
  • Economic reforms can boost average annual growth to 6.5% in the 2011-2020 period and per capita gross national product (GNP) will rise to about US$17,700 by 2020 (vs. current US$7,558). Private consumption will rise and increase its share of GDP. On the supply side, the share of agriculture and manufacturing to GDP will continue to slide while services’ share of GDP will increase from almost 59% in 2010 to slightly above 67%by 2020. 
  • The government will revise its affirmative action policies, which would be built on four principles: market friendly, merit based, transparent and needs based. The strategies will focus on the bottom 40% of households by income, as the country must reduce income gaps in all races, he said.
  • The NEM calls for a further reduction in the fiscal deficit with the easing and exit from fiscal stimulus to a near-balance by 2020. In the 2011-2020 period, it envisages a slight dip in the total national debt to just under 30% of GDP by 2020.
  • The NEM will be integrated into the 10th Malaysia Plan (10MP) while the details of the new economic policy will be unveiled in 3Q. (Bloomberg, Bernama) Please see our Economic Focus for further details
The Malaysian Industrial Development Authority (MIDA), which will be renamed as the Malaysian Investment Development Authority is expected to be fully corporatized by August. MIDA is looking at liberalising some services sub-sectors this year to attract more foreign investments, according to its director-general Datuk Jalilah Baba. She said there was interest by foreign companies to participate in these sub-sectors but it was hampered by several issues (i.e. equity conditions). Among the sub-sectors likely to be selected are renewable energy and energy conservation, medical tourism, and private education, which did not have many local players. Investments in services could go up to RM48bn, surpassing the Industrial Master Plan average of RM45bn, bolstered by the liberalisation process, she added. (Bloomberg)

The Ministry of Science, Technology and Innovation is seeking more than RM4bn to be utilised for research and development funding under the 10th Malaysia Plan (10MP) (vs. RM2.9bn in 9MP). Its minister, Datuk Seri Dr. Maximus Ongkili said the government expenditure for research and development is only 0.64% of gross domestic product (GDP). (Bernama)

Malaysia remains China's largest trading partner within Asean with total trade amounting to US$10.02bn Jan-Feb this year. The trade volume represents about a quarter of China's total trade with Asean countries during the period under review, said the Chinese Ministry of Commerce. (Bernama)

20100331 1043 Global Economic News.

The US Conference Board’s confidence index rose to 52.5 in March from 46.4 in February, exceeding the median forecast of economists. The Conference Board’s measure of present conditions increased to 26 from 21.7, the highest level since May. The gauge of expectations for the next six months rose to 70.2 from 62.9. (Bloomberg)

US home prices, according to the S&P/Case-Shiller Home Price Index of 20 cities, unexpectedly rose in January indicating the housing market is stabilising as the economy expands. The home-price index climbed 0.3% mom on a seasonally adjusted basis, matching the gain in December. The gauge was down 0.7% from January 2009, the smallest year-over-year decrease in three years. (Bloomberg)

Chicago Federal Reserve Bank President Charles Evans said he was "very concerned" about unemployment in the United States, predicting that the unemployment rate would rise above 9% by the end of the year. Evans forecast the unemployment rate to contract, however, to 8% by the end of 2011 and then to 5% with an economic recovery. (CNBC)

President Barack Obama and four other leaders (South Korean President Lee Myung Bak, UK Prime Minister Gordon Brown, Canadian Prime Minister Stephen Harper and French President Nicolas Sarkozy) said “more work” is needed to repair the balance sheets of some international banks after the worst financial crisis since the Great Depression. “While confidence in the financial system has improved, more work is required to restore the soundness of some global banks’ balance sheets, to avoid leaving the global financial system vulnerable and restricting its ability to provide the credit needed to fuel sustainable growth,” they said. (Bloomberg)

The International Monetary Fund (IMF) cut its growth forecast for Germany after a recovery in Europe’s largest economy came to a halt, and said the government needs a “credible” plan to reduce its deficit. It expects the German economy to expand 1.2% this year and 1.7% in 2011 (vs. January’s forecast of 1.5% in 2010 and 1.9% in 2011). (Bloomberg)

Britain emerged from recession in 4Q09 at a faster pace than previously estimated, providing a boost for Prime Minister Gordon Brown with a general election weeks away. Gross domestic product (GDP) rose 0.4% qoq in 4Q09 (vs. previous calculation of 0.3%). Economists forecast for a 0.3% increase. (Bloomberg)

Reserve Bank of Australia (RBA) Governor Glenn Stevens said policy makers need to manage economic “upswings” to prevent future deep downturns, signaling that the central bank may raise interest rates next week. “Very deep recessions leave a long-lasting legacy of unemployment and all the things that go with it,” he noted. (Bloomberg)

Japan’s industrial production fell 0.9% mom in February (+2.7% in Jan) and the unemployment rate held at the lowest level (4.9%) since Mar 09, underscoring an uneven economic recovery that has yet to end deflation. Household spending unexpectedly slipped 0.5% yoy in February (+1.7% in Jan), marking the first decline in seven months. (Bloomberg)

A growing number of foreign companies in China plan to relocate plants inland or outside the country because of rising labor and logistics costs, a survey by the American Chamber of Commerce in Shanghai showed. The proportion of companies with such plans doubled last year compared with 2008. Southwest or central Chinese cities and emerging Asian economies including India, Vietnam and Indonesia are “new horizons” for their lower-cost, export-driven operations. Multinational corporations still prefer China in order to benefit from the nation’s rapid expansion, it said. (Bloomberg)

Hong Kong’s retail sales rose 35.8% yoy to HK$26.9bn in February (6.5% in Jan), marking the fastest pace in more than 20 years after unemployment fell and more tourists arrived during the Lunar New Year. Economists forecast it would increase by 39.0%. (Bloomberg)

Singapore’s electricity will cost more for the upcoming quarter, starting April. It will be the fourth consecutive quarter of increase due to a continued increase in fuel oil prices. The average fuel oil price over the last three months has increased from S$99.38 to S$102.95 per barrel. With the increase of some 3.0%, electricity will cost 23.56 cents per kilowatthour. (Channel News Asia)

Vietnam’s economic growth accelerated to 5.83% yoy in 1Q10 (6.9% in 4Q09), buoyed by construction, tourism and banking services amid robust domestic demand. Industry and construction expanded 5.65% and services grew 6.64% in 1Q. (Bloomberg)

Tuesday, March 30, 2010

20100330 1021 Malaysia Corporate News.

Sarawak Energy is expected to export 1,600MW of electricity to Peninsula Malaysia by 2019. Senior Manager (power systems planning) Dr Lee Hau Aik said this would increase by another 1,600MW by 2024. However, he said power sales to the peninsula would depend on the completion of the submarine cables that would be laid across South China Sea. It was reported earlier that the first submarine cable would be completed in 2016, followed by the second a year later. (Starbiz)
While not entirely surprising, the delayed timing for the transmission of power from Sarawak to Peninsula Malaysia is a slight negative for Tenaga who is depending on cheaper hydropower sources from Sarawak to diversify its generation mix away from gas and coal options.

The Sarawak Corridor of Renewable Energy (SCORE) has attracted many investors with 20 direct negotiations held with potential investors so far. “As of now, SCORE has received RM30bn investments and many more are expected to come,” Sarawak Second Planning and Resource Management Minister Datuk Amar Awang Tengah Ali Hassan said. (Bernama)

SP Setia has bought a piece of land in Melbourne, Australia, for A$30m (RM90m). The company acquired the 4,340sq m land and plans to develop a high-density inner city integrated residential and commercial project on the land. "Barring unforeseen circumstances and subject to Australia's Foreign Investment Review Board approval, the proposed acquisition is expected to be completed in Oct-FY10," said SP Setia. The group targets to launch the project within 18-24 months of the date of acquisition.
  • The land is strategically located in the central spine of Melbourne's central business district, between A'Beckett Street and Franklin Street and between Elizabeth and Queen Streets. "The site is a short walk to Melbourne's central shopping centre and railway station, and is close to the Queen Victoria Market. (BT)
Sabah Softwoods, a plantation subsidiary of state government agency Innoprise Corporation, is drawing up a new five-year plan to optimise the use of its resources. CEO Mohd Hattah Jaafar said the old masterplan would expire soon. On oil palm, Hattah said Sabah Softwoods hoped to produce 31.5 metric tonnes of fruit per hectare for all its mature plantation areas covering 26,000 hectares by 2015. Last year, oil palm contributed more than 90% to the company's profit of RM55m and by 2015, Sabah Softwoods expected timber plantation to contribute 30%, he said. The company's long term target was for timber and oil palm plantations to contribute 50% each, he added. "Sabah Softwoods' profit will not fall below RM100m by 2011, Provided that the price of crude palm oil is at the RM1,800-level, Sabah Softwoods will record a profit of above RM100m," he added. (Bernama)

Unilever says it will not cancel palm oil supply contracts with IOI Corp and that it is confident the planter will address concerns over logging forests raised by a green group. IOI earlier dismissed the report by Friends of the Earth that it cleared rainforests on Borneo island to expand, saying the allegations were inaccurate. "We believe IOI is a very responsible supplier and are confident that if there is truth in the current allegations, IOI will address them," Unilever head of sustainability Jan-Kees Vis said. Unilever, the world's top palm oil buyer, has so far blacklisted two Indonesian suppliers after verifying reports of the firms felling forests and clearing peatlands to expand - practices that release global warming emissions. (Reuters)

The Japan Bank for International Cooperation (JBIC) will, through regional banking group CIMB Group Holdings, provide US$300m (RM984m) in long-term financing to small- to mid-sized businesses in Southeast Asia. The two parties formalised the arrangement, said to be the largest the Japanese government-run JBIC has ever provided to a commercial institution.
  • The funds are meant to support firms in the region that have Japanese links. Loans will be channelled through CIMB Bank in Malaysia, CIMB Niaga in Indonesia and CIMB Thai. "This is particularly for small- to medium-sized enterprises which continue to face difficulty obtaining long-term financing," JBIC's resident executive officer for Asia and Oceania, Ryuichi Kaga, said. 
  • Dato’ Sri Nazir Razak, CIMB group chief executive said that the largest loan size for a company is expected to be up to US$25m (RM82m). Nazir believes that two-thirds of the funds may flow into Indonesia given the current favourable rates and the country's strong growth outlook. (BT)
CIMB Group Holdings has applied for new banking licences in Vietnam and Cambodia in a bid to strengthen its regional presence. The group already operates in Indonesia, Thailand and Singapore. "We've applied for new banking licences in Vietnam and Cambodia," group chief executive Dato’ Sri Nazir Razak said.
  • The Malaysian-listed lender, which owns CIMB Thai Bank, has also been eyeing a listing in Thailand and this may happen by mid-June this year, Nazir said. "The process under the FRS139 accounting standard requires us to announce our first quarter earnings before the submission. That is why the timing is such," he added. CIMB Thai will remain listed even after the group's dual listing, its CEO Subhak Siwaraksa said. 
  • Nazir also noted that CIMB Group has a strong capital base and would be "comfortable" supplying capital to CIMB Thai and Indonesian banking unit CIMB Niaga if the need arose. Both units are also capable of funding their growth via bonds, he said.
  • CIMB Niaga president director Arwin Rasyid said the Indonesian lender planned to sell sub-debt of US$300m by June to boost capital and pay debt. CIMB Niaga has US$100m (RM328m) of sub-debt maturing this year and US$200m (RM656m) next year. The bank is also considering a rights offer, Arwin was reported to have said.
  • This follows hot on the heels of CIMB Thai's move last week in announcing plans to raise about 9bn baht (RM910m) via rights and bonds issues.
  • Meanwhile, Arwin said that he expected CIMB Niaga's loans to expand in the range of 20% or higher this year on the back of strong economic growth in Indonesia. Loans grew 12% last year. CIMB Niaga is Indonesia's fifth largest lender with 5% market share of loans. (BT)
The government has no intention of divesting its equity in Proton Holdings as it does not want the national car manufacturer to be controlled by foreign parties, the Dewan Rakyat was told. Deputy FM Datuk Chor Chee Heung said Proton was currently negotiating assembly and product JV possibilities with several OEMs. However, he said the discussions did not involve equity participation but a strategic partnership. (Malaysian Reserve)

Market talk had it that Proton Holdings had firmed up some sort of collaboration deal with Volkswagen AG (VW) of Germany. Details were scarce but according to auto sources, the deal hinged around Proton undertaking contract assembly of certain VW models for the German auto giant, but this remains unsubstantiated. (Financial Daily)

Edaran Otomobil Nasional shareholders approved of its biggest shareholder DRBHICOM Bhd taking private the company. While many minority shareholders voted against the corporate move, EON's second biggest shareholder Kualapura S/B voted for the privatisation at RM1.55/share via a selective capital reduction (SCR). EON's privatisation is expected to be completed by the third week of August, said chairman Tan Sri Marzuki Mohd Noor. "The meeting ended well. More than 90% of the shareholders were present and voted in favour of the resolution," said Marzuki. (BT)

Malaysian builders are setting their eyes on expanding into the Middle Eastern markets as infrastructure spending in the area increases, a report from Bernama said. Local contractors are currently working on 51 projects worth US$10bn in the Middle East and are eyeing for more amid a projected upswing in construction demand. The majority of projects are in the United Arab Emirates, Saudi Arabia, Qatar, Bahrain, Oman, Syria, Iran, Jordan and Yemen. The Malaysia External Trade Development Corporation (Matrade) noted the Middle East contributed the highest share (42%) among the 614 overseas projects worth US$24bn local contractors have worked on from 1997 to 2009. (Building Materials Week)

The new board of directors of Ho Hup Construction Co will meet with Malton today to renegotiate the JDA concerning the former’s only remaining landbank and its jewel, a 60- acre parcel in Bukit Jalil. Ho Hup will also try to negotiate for a construction job on the JDA as it was the company’s core business. (Financial Daily)

ExxonMobil is said to be ready to privatise its downstream asset Esso Malaysia. It is prepared to make a GO for the remaining 35% of Esso shares it does not own, without revealing the offer price. (Malaysian Reserve)

Two directors with links to the Shapadu Group, Rosthman Ibrahim and Mohamad Hasif Mohd Nahar, have been appointed to the board of beleaguered oil & gas outfit Vastalux. Mohamad Hasif has acquired an 11.6% stake in Vastalux, buying over the block from Mohamad Nor Abdul Rashid who ceased to be a substantial shareholder. Vastalux's Petronas license was suspended in Jan. (Edge Daily)

Lityan CEO Nor Badli Munawir is slated to helm Ramunia as Lembaga Tabung Haji (LTH) plans to play a more prominent role in the company. LTH has a 25.2% stake in Ramunia and owns 65% of Lityan. Ramunia has been without an MD since Mar 09. (Edge Daily)

KFC Holdings plans to invest RM40m to open 40 new KFC outlets in Malaysia, bringing the total number of outlets to 518. The new outlets will include some drive-through ones, combining KFC and Pizza Hut outlets, with each drive-through outlet costing RM5m. (Star)

20100330 1013 Malaysian Economic News.

The highly anticipated New Economic Model (NEM) to be unveiled today aims to transform the country into a high-income nation. The framework of the NEM will recommend action on: (i) reducing subsidies, (ii) providing a wider safety net to cover more people, (iii) improving the skills of the locals, (iv) addressing the question of affirmative action, and (v) redefining the poor and how to help them. Today’s unveiled framework is the first part of the NEM. (The Star)

The 'Impact of Foreign Workers on the Malaysian Economy' study by the National Economic Action Council (NEAC) cost RM1.16m, the Dewan Rakyat was told. Prime Minister Datuk Seri Najib Tun Abdul Razak said based on the study, seven new initiatives were implemented among them the establishing of a special task force by the Home Ministry to review policies and procedures in the hiring of foreign workers. (Bernama)

Malaysia's banking system remains strong and well capitalised to provide loans to anyone especially for running and expansion of businesses, the Dewan Rakyat was told. Deputy Finance Minister Datuk Chor Chee Heung said Bank Negara's decision to shorten the non-performing loan (NPL) classification period to 3 months from 6 months did not adversely affect the country's banking system. It also did not change the way banks handle the NPL issue. (Bernama)

Total trade in the Multi-Level Marketing (MLM) industry is expected to reach RM10bn by the end of the 10th Malaysia Plan (10MP) (estimated RM5bn in 2009), Minister of Domestic Trade, Cooperatives and Consumerism, Datuk Seri Ismail Sabri Yaakob said. Sabri added that the MLM industry had the potential to expand even faster if it was regulated closely by an effective Act. (Bernama)

Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed, has invited Thai companies to invest more in Malaysia. He said the companies could leverage on Malaysia's conducive investment environment through establishing joint ventures with local companies. "The New Economic Model (NEM) will present exciting opportunities for business collaborations," he said. (Bernama)

Thai entrepreneurs are seeking Malaysian joint venture (JV) partners to enhance cooperation in trade and investment to benefit from the establishment of an Asean Economic Community (AEC) in 2015. Thailand Chamber of Commerce chairman, Dusit Nontanakorn, said AEC aimed to turn the region into a single market with over 500m people, into a community where goods, production assets, people and capital could move across borders freely. (Bernama)

The Employees Provident Fund (EPF) plans to increase its overseas investment to 10.0% over the next one to two years (vs. current 6.0-7.0%). Its CEO Tan Sri Azlan Zainol said the focus would be on investing further in equity of public-listed companies. (Financial Daily)

A new Employees Provident Fund scheme to enable contributors to get higher housing loans based on their Account II savings will be implemented this year. Its CEO Tan Sri Azlan Zainol said several banks had expressed interest in the scheme and were willing to help contributors obtain higher financing. (NST)

20100330 1009 Global Economic News.

US consumer spending rose in February for a fifth consecutive month, a rebound that will require gains in employment to be sustained. Personal consumption expenditures (PCE) increased US$34.7bn or 0.3% (US$38.5bn or 0.4% in Jan), matching market estimates. US personal income increased US$1.2bn or less than 0.1% in February (US$30.4bn or 0.3% in Jan), and disposable personal income increased US$1.6bn or less than 0.1% (US$26bn or 0.2% in Jan), according to the Bureau of Economic Analysis. (Xinhua)

The US economy looks set to return to relatively rapid growth soon, International Monetary Fund (IMF) chief Dominique Strauss-Kahn said. "It's a flexible economy. We'll see how rapid the recovery in the US economy can be. But I'm rather confident that the US economy will grow rather rapidly again quite soon," he added. (Channel News Asia)

The US Treasury Department Monday confirmed its plan to sell all of its approximately 7.7bn shares of Citigroup stock over the course of 2010. The Treasury said it will initiate its disposition of the shares pursuant to a pre-arranged written trading plan, and assured that it will sell its Citigroup common shares into the market through various means in an orderly and measured fashion. (Xinhua)

European confidence in the economic outlook improved to the highest in almost two years in March, beating economists’ forecasts and signaling the recovery is gathering strength as a weaker euro helps exporters. An index of executive and consumer sentiment in the 16 nations using the euro rose to 97.7 from 95.9 in February. Economists forecast it would increase to 97.1. (Bloomberg)

Australia’s central bank said home-loan rates rising faster than its benchmark interest rate were part of its policy “deliberations,” suggesting fewer increases may be required to return borrowing costs to normal levels. “The cash rate determined by the Reserve Bank is still the major determinant of the interest rate structure in Australia, including that of mortgage rates,” Assistant Governor Guy Debelle said. (Bloomberg)

Japan’s retail sales rose 4.2% yoy in February (2.3% in Jan), marking the biggest monthly jump since 1997 and signaling that a drop in the unemployment rate is feeding through to higher household spending. The growth was well above the economists’ forecast for a 1.6% yoy gain. (Bloomberg)

South Korea’s current account
swung back to surplus last month as energy imports declined and fewer people traveled overseas. The current-account surplus was US$158m in February (-US$631m in Jan). The figure will climb to about US$1.5bn in March, helped by an increase in the trade goods surplus, bank official Lee Young Bog said. (Bloomberg)

South Korean manufacturers’ confidence rose from 101 to 105 in April, marking the highest level in more than seven years as the nation’s economic recovery strengthens. A measure of non-manufacturing companies’ expectations fell to 88 from 91. (Bloomberg)

China’s National Social Security Fund (NSSF) plans to increase its investment in the US and European Union (EU), Dai Xianglong, the head of the pension fund said. This is in order to reap higher returns, even though it expects the yuan to rise in the long term. The dollar would remain a key global currency and expressed confidence that the eurozone’s sovereign debt strains would not escalate, he noted. (Financial Daily)

Thailand’s Finance Ministry raised its economic growth forecast for this year as the nation’s economic recovery gains momentum, buoyed by rising exports and public spending. Gross domestic product (GDP) is projected to expand 4.0-5.0% in 2010, with a mid-point forecast of 4.5%. The ministry in December predicted growth of 3.0-4.0% this year, with 3.5% as the mid-point of the range. (Bloomberg)

Monday, March 29, 2010

20100329 1628 FCPO EOD Daily Chart Study.

FCPO closed : 2520, changed : -14 points, volume : higher.
Bollinger band reading : downside biased.
MACD Histrogram : continue lower, seller in control.
Support : 2500, 2470, 2450 level.
Resistant : 2521, 2550, 2570 level.
Comment :
Improving volume FCPO traded slightly lower within a 47 points range market despite a stronger crude oil and soy oil development. Daily chart reading remain downside biased with further downward movement potential.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/breakdown with larger cut loss and profit target.

20100329 1754 FKLI EOD Daily Chart Study.

FKLI closed : 1324.5, changed : +3.5 points, volume : ultra high.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : rising slowly, buyer in charge.
Support : 1318, 1312, 1307, level.
Resistant : 1325, 1330, 1335 level.
Comment :
Ultra high volume FKLI traded firmer within a 7 points range market. Daily chart wise, the reading still suggesting a side way range bound little upside biased market mainly because of the Bollinger band width has yet to turn outward. Perhaps we would need to wait for another day.
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.

20100329 1332 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1322.5, changed : +1.5 point, volume : high.
Bollinger band reading : upside biased.
MACD Histrogram : getting weaker, buyer taking partial profit.
Support : 1318, 1312, 1307, level.
Resistant : 1325, 1330, 1335 level.
Comment :
FKLI continue to trade higher with high volume transaction in tandem with major Asia market positive development except the Nikkei 225. Hourly chart shows that market is likely to trade side way range bound with a little upside biased but having said that rollover activities ahead of Mar2010 contract expiry may lead market to go down a little further.

20100329 1304 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2540, changed : +6 points, volume : low.
Bollinger band reading : side way downside biased.
MACD Histrogram : recovering, seller reduce exposure.
Support : 2521, 2500, 2470 level.
Resistant : 2550, 2570, 2590 level.
Comment :
21 points range FCPO traded marginally higher in recovery mode but in volume changed hand. Hourly chart suggesting a downside biased market with temporary side way correction as a result of last Friday drastic selling and closed below the Bolliger band level.

20100329 1255 Malaysia Corporate News.

According to Gamuda Group MD Datuk Lin Yun Ling, Splash’s takeover proposal was also motivated by the unofficial/verbal takeover offer by PAAB on 18 March 2010 which was lower than the Selangor state government’s last offer. PAAB’s offer for Splash was, at most, half of the RM1.4bn equity value offered by the Selangor state government. Splash’s proposal addresses funding and pricing, the two main concerns that arose from the Selangor state government’s unsuccessful takeover offers. Splash plans to raise its paidup capital from RM400m to RM2.4bn via equity injection by its existing shareholders. With the large capital, banks would be willing to lend about RM8bn. The RM2.4bn would be more than enough to cover the risk of losses or cost overruns.
  • Splash’s proposed water tariff hike is 2-3% p.a. or 9% every three years over the life of its proposed concession agreement (CA) of 30 years. This would give Splash a decent return on investment of around the mid-teens, which is better than for toll highways. Tariffs under Splash would be 35% below Syabas’ existing tariff. (Star, Edge Weekly)
In a telephone interview on his wish list of changes to improve the capital market, Bursa Malaysia’s CEO Datuk Seri Yusli Mohamed Yusof told Business Times that Malaysia’s stock exchange wants certain regulatory constraints to be removed to help improve retail participation in stock trading. The constraints include the 30% Bumi quota for licensed dealers, which is said to be limiting the growth of remisiers and dealers. This has hampered retail investor growth.
  • "It's fine to have this requirement, but if it's getting in the way of the growth of the industry, then I think we should consider some other ways of encouraging more Bumiputera participation in the industry," Datuk Yusli said. "We rely a lot on the retail broker and remisier base to tap into the retail investor segment. But if you study the statistics over the last 10 to 15 years, the number of retail brokers and remisiers hasn't grown," he lamented. The number of active remisiers has shrunk "quite substantially" and this will get in the way of Bursa trying to grow the retail segment. 
  • He also thinks that more foreign brokers should be allowed to serve investors, particularly retail investors, as this would stir innovation in the industry. "We have a very strong middle-class, which I think is not being adequately serviced by our retail brokers," he remarked. (BT) 
IOI Corp dismissed claims by a green group that it cleared rainforests on Borneo island to expand oil palm estates, saying the report was inaccurate.
  • IOI Corp said on Friday it conducted its own investigations and held a dialogue with Friends of the Earth group, which published a report last week looking at how the planter was expanding estates on the Indonesian side of the island. The report alleged the planter was enroaching into rainforests, draining peatlands and practicing open burning, which leads to vast amounts of global warming emissions getting released. 
  • That prompted one of IOI's key customers, Neste Oil to say it will carry out its own investigations on the planter that supplies Finnish refiner's biofuel plants in Europe.
  • "It has been established that Friends of the Earth's field research had been highly selective and limited, and that several incidents on which allegations were based were incorrectly reported," IOI said in a statement on its website. "IOI Corporation is also not involved in any open burning activities and as part of its zero-burning policy, it is monitoring and preventing third-party burning activities on its concessions."
  • The planter also said, without going into the details, that it had set up a clear action list and timeframe to address Friends of the Earth's remaining concerns. IOI owns 80,000 hectares of land in Indonesia, mostly in Kalimantan province in Borneo. (Reuters)
The prompt response by IOI Corp on the negative report by Friends of the Earth is positive as it will help allay fears that this could escalate to a bigger issue, for example its customers potentially cutting ties with the group. The report has so far led one of IOI Corp's customers to initiate investigation into the planter's estate practices in Indonesia.

Nestle SA’s decision to stop buying from Indonesian palm-oil producer Sinar Mas Group over deforestation concerns is “perfectly normal,” the country’s environment minister said, suggesting the government doesn’t plan to protest. “That’s their right as a consumer,” Gusti M. Hatta said in an interview in Jakarta yesterday, speaking of Nestle’s decision. “If there’s a clear violation, then I would cut them off without mercy,” he said, adding an investigation into the country’s biggest maker of palm oil is ongoing. Nestle’s dropping of Sinar Mas sparked calls for the government to speak out on behalf of the palm-oil industry, which produces the country’s biggest agricultural export by sales. The Indonesian Palm Oil Association last week said the Vevey, Switzerland-based company’s decision was “unfair.” (Bloomberg)

The Invest Malaysia 2010 conference is expected to attract over 600 participants. Todate, 170 local and foreign investment institutions had shown interest, Bursa Malaysia said in a joint statement with co-hosts, Maybank Investment Bank and Nomura Holdings. "The conference, themed 'Powering Global Excellence', offers an opportunity for access to key personalities who have contributed to the country's success story," it said. (Bernama)

Malaysia needs more companies that represent the country's strengths listed on Bursa Malaysia, says Bursa Malaysia CEO Datuk Sri Yusli Mohamed Yusof. "We have icons in plantations (i.e. Sime Darby Bhd) and rubber gloves (i.e. Top Glove Bhd), but we don't have major icons in oil and gas, for example," said Yusli. Malaysia is strong in Islamic finance, business process outsourcing and medical tourism, but there are no real icons on Bursa representing these fields for people to invest in, he noted. He said there were already such companies in the pipeline that could be listed but some were possibly not ready yet.
  • "As a country we have certain strengths and we should be highlighting those strengths. So if we happen to have a Fortune 500 company, most countries would be excited to profile this on their market," he remarked. Malaysia's oil and gas giant Petronas, a Fortune 500 company, stands out as an unlisted icon. Big new listings have been slow in coming to Bursa and Yusli's job to spur this has been made more frustrating with a rising number of sizeable companies going for privatisations and delistings. (BT)
Tenaga (TNB) wants to resume the survey in Kampung Sungai Terentang, Rawang so that work on the Central Area Reinforcement (CAR) project can proceed. President/CEO Datuk Seri Che Khalib Mohd Noh said, "We are a responsible GLC and cannot simply go in and do what we like. We will make sure there will be minimal land acquisition within the area.” "TNB has seen 'near-miss' blackout. The project is critical and we are trying to do whatever it takes to avoid any blackout again," he added. (Bernama)

The first phase of the study on the restructuring of toll rates has been completed and the Economic Planning Unit (EPU) is now in various stages of deliberation with government agencies and toll concessionaires, said Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop. The government was looking into how best to implement the process without burdening the low-income group. Nor Mohamed said the government needed to look into many aspects before making a decision as it will affect various parties including the government, consumers and concessionaires. (Bernama)

The Malaysian Automotive Association (MAA) is maintaining its motor vehicle sales forecast at 550,000 units this year compared with 536,905 units sold last year (+2.4% yoy). President Datuk Aishah Ahmad said the target is achievable following improved economic conditions and positive performance in 1Q10’s sales, estimated to record more than 20% growth. "2Q10 seems to be positive too as car sales are improving and we hope the momentum will continue," she added. (Bernama)

Volvo Construction Equipment has appointed TCIM Sdn Bhd as the Malaysian distributor for Shandong Lingong (SDLG) Wheel Loaders from China. TCIM is a subsidiary of Warisan TC Holdings (Tan Chong Group) while Shandong Lingong Machinery Co. Ltd is a construction equipment manufacturer. Following this, the LG938 and LG958 Wheel Loaders were unveiled in the Malaysian market. (Bernama)

The Berjaya group’s Cosway Corp Ltd is on track to realise its global ambition by establishing presence in two of the world’s largest economies – the United States and Japan – in the next few months as well as Europe later this year. Already a major player in Asia Pacific, Cosway will begin operations in the US and Japan by end-May and August respectively. Its venture into Europe will kick off in Britain in the fourth quarter of the year and subsequently in Germany early next year. Founder and CEO Al Chuah is confident that Cosway’s entry into major developed economies will catapult the multi-level marketing company into the global top three over the next one to two years. At present, it is among the 20 largest direct-selling companies in the world. To facilitate its aggressive overseas expansion, Chuah says the company has allocated RM47m as capital expenditure (capex) for its financial year ending April 30, 2010 (FY10). (Starbiz)

Berjaya Corp chairman and chief executive officer Tan Sri Vincent Tan and Tan Sri Lim Kok Wing have been named The BrandLaureate Entrepreneur of the Year Award and The BrandLaureate CEO of the Year Award respectively. (Starbiz)

MISC started its new East India Service (EIS) with the first sailing from Yangon, Myanmar, on March 22. Through EIS, MISC offers a dedicated weekly service between East India and Myanmar with routes from Yangon, Chennai, Colombo, Chenna and back to Yangon. MISC said the new service will allow customer in the region to access its premium halal express service (HES) in Colombo and reach the Middle East and Far East markets. The weekly service is being served by two MISC's 700-TEU (20-foot equivalent unit) capacity vessels - Bunga Mas 11 and Bunga Mas 12. The EIS also sees MISC intensify its commitment to customers in India as it now adds Chennai to the list of Indian ports currently called by its vessels, namely Nhava Sheva and Pipavav. "With just a three-day transit time between Yangon and Chennai, EIS has one of the most competitive transits in the market," the national shipping firm said in a statement last week. (BT)

Alliance Bank Malaysia is considering a candidate from among eight individuals to replace Datuk Bridget Lai as its CEO, sources said. The bank hopes to send the name of the chosen candidate to Bank Negara Malaysia for approval before the end of next month. Bank Negara typically takes about two to three months to approve such candidates, which means that Alliance Bank could have a new CEO in place by end-June.
  • Out of the eight candidates, three are Malaysian, three Singaporean and the rest foreigners from other countries. All are from the banking industry. "Except for one, most of the names are not familiar," one source said. 
  • Sources said Alliance Bank is also on the lookout for senior management as it looks to partially reorganise the bank's management structure. At least two people quit recently. New positions may be created and it may be looking for more than five individuals, the sources said. (BT)
EON Capital has received Bank Negara Malaysia's approval to bring in seven new independent directors and let go of two. The new directors were earlier appointed by its shareholders during a special meeting this month. Their appointments became official on 26 Mar 10 after Bank Negara's approval. The central bank also allowed Datuk Dr Mohd Shahari Ahmad Jabar and Rodney Gordon Ward - the last two of four independent directors who tendered their resignation last week - to leave. (BT)

Axiata is expected to raise between RM1.8-RM2bn in gross proceeds from an initial offering of shares in its subsidiary, Indonesia based XL Axiata. It said in a statement that it has successfully completed the book building exercise for the international offering of shares in XL with the sale of 1.53bn XL shares representing 18% stake at the price of Rp3,300/share. Axiata said the offering could be upsized by an additional 153m XL shares under the option granted to Goldman Sachs in connection with price stabilisation initiatives. The offering was oversubscribed by three to four times and was priced at the high end of the indicative range of Rp3,000-Rp3,300 per share. (Starbiz)

India telcos got temporary relief against shelling out higher taxes to the government from Apr 1. The telecom tribunal , TDSAT, has stayed the government’s directive to hike the levy operators pay to use spectrum by up to 50%. The country’s leading GSM telcos — Bharti Airtel, Vodafone Essar and Idea Cellular — had approached the tribunal against the new charges. Currently, all mobile services in the country are offered on 2G frequencies and telecom operators pay 2-6 % of their annual gross revenue, depending on the amount of spectrum they hold, as spectrum usage charges to the government. Last month, the government announced it was increasing this levy by up to 50%, implying that telcos would be charged 3-8 % of their revenues as spectrum usage fee in the coming financial year. (Economic Times of India)

MMC Corp has hired HSBC Holdings plc’s local unit to help it borrow RM750.75m, said a person familiar with the matter. The company’s amortising loan will be for five years, said the person. (Bloomberg, BT)

Alam Maritim has landed two charter contracts totaling RM83.16m from two unidentified oil majors to provide an accommodation vessel and an accommodation work barge for a primary period of 13 months with options to extend for two years. (Malaysian Reserve)

Mah Sing Group is confident of achieving a sales target of RM1bn this year encouraged by the RM516m sales recorded in 1Q 2010. "This is 3x the RM170m sales achieved in 1Q09, said MD Tan Sri Leong Hoy Kum. (Bernama)

Unisem is allocating between US$60-70m as capex for FY10 to expand capacity and capitalise on rising demand for electrical and electronic (E&E) components and products. Unisem chairman and MD John Chia said about 75% of the capex would go towards expanding production capacity at its manufacturing site in Chengdu, China by building more factories. The remaining 25% will be used to augment the assembly and test capabilities at its factories in Ipoh, and Batam. "We will embark on organic growth in 2010- 2012," Chia said in a recent interview. Chia said the group's two factories in China were running at full capacity and expansion was needed to double the daily semiconductor output to 10m pieces per day. It has no immediate fund raising plans. (Financial Daily)

20100329 1246 Malaysian Economic News.

PM Datuk Seri Najib Tun Razak said whatever approach the government adopts in implementing the New Economic Model (NEM) will have all round support from Bumiputeras, non-Bumiputeras, foreign investors and the global market. He also said the government would ensure the NEM would attain the objective of transforming the country into a developed high-income economy.
  • The NEM would emphasise on more equitable opportunities so that each and every Malaysian would be able to realise their maximum potential. The government would also identify new sources of growth, both in terms of where the growth was going to come from, plus looking at new markets. (Bernama)
DPM Tan Sri Muhyiddin Yassin gave assurance that the New Economic Model (NEM) that is being staged to make Malaysia a developed country by 2020 will not sideline rural folks. He said although many rural folks had achieved progress there were many others who were still left behind and were among those in hardcore poverty. (Bernama)

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the New Economic Model (NEM) will focus on Small and Medium Enterprises (SME). He added the government aimed to double the per capita income of Malaysians from the RM23,135 annually. The government would continue to help SMEs particularly those that involve partnership between Bumiputeras and non-Bumiputeras. (Bernama)

The country’s RM1bn annual sugar subsidy can be put to better use in rural Sarawak, said Assistant Minister in the Chief Minister’s Department Datuk Daud Abdul Rahman. He feels the money should be spent on development projects such as roads in the interior of Sarawak. (The Star)

The data on wealth distribution in the country will be updated, said deputy prime minister Tan Sri Muhyiddin Yassin. He said the updating could cover the distribution by race so that the people’s social-economic development could be evaluated. “Current records show that a large portion of the nation’s wealth is in the hands of the non-Malays.” (The Star)

The government has targeted 4,000 large-scale entrepreneurs under the Amanah Ikhtiar Malaysia (AIM) scheme by 2012. Deputy Human Resources Minister Datuk Maznah Mazlan said it’s viewed as a machinery to eradicate poverty under the National Key Result Areas (NKRA) by the government and the number was out of 240,000 AIM members nationwide. (Bernama)

The Rural and Regional Development Ministry will spend RM900m to provide various infrastructure facilities for the rural community including in Sabah and Sarawak under the National Key Result Area (NKRA) this year. Minister Datuk Seri Mohd Shafie Apdal said the cabinet had given the go-ahead to the ministry to spend the allocation and the amount was part of the RM18bn allocation provided by the government to implement NKRA programmes nationwide. (Bernama)

Civil servants in the country must be ready to change their mindset to ensure the success of the Government Transformation Programme (GTP) introduced by PM Datuk Seri Najib Tun Razak, says deputy director-general of Public Service Malaysia, Datuk Dr Ismail Alias. The role of the civil servants is significant in carrying out the aspirations and agenda of the government to be more effective in its delivery of services and accountable for outcomes that matter most to the people. (Bernama)

Some RM60bn of new issuances are expected for Malaysia’s bond and sukuk markets this year, which is about a quarter more than last year. Government-related infrastructure and bank’s capital raising exercises are projected to form the bulk of the domestic debt capital market’s activity this year, according to RAM Rating Services Bhd. (BT)

20100329 1241 Global Economic News.

US consumer confidence was higher than anticipated in March as companies slowed the pace of job cuts and stocks advanced. The Reuters/University of Michigan final consumer sentiment index for this month held at 73.6. The preliminary reading for the measure, released March 12, was 72.5. Economists forecast the final gauge would fall to 73. (Bloomberg)

The US economy recorded growth of 5.6% in 4Q09, down from a previous estimate of 5.9%. It compares with growth of 2.2% in 3Q09. However, the figures for the full year’s GDP were unchanged, showing a 2.4% decline, the biggest 12-month fall since the 10.9% recorded in 1946. The downward revision in the quarterly figures, slightly worse than the 5.7% expected by economists, was driven by a decline in business investment and inventories. Consumer spending was also less buoyant than originally thought. (Times Online)

World Trade Organization (WTO) economists in Switzerland estimated global trade would grow 9.5% in 2010 (-12.2% by volume in 2009), coming off the worst decline in decades. Trade among developed countries would expand by 7.5% in 2010, while trade among developing countries is expected to grow 11.0%. With a nearly global recession receding, economists "see the light at the end of the tunnel," said WTO Director-General Pascal Lamy. "But we must avoid derailing economic revival through protectionism," Lamy added. (WTO)

Profits in China's major industrial enterprises more than doubled in the first two months this year compared with a year earlier, the National Bureau of Statistics (NBS) said. The combined profit of major industrial enterprises with annual business revenues exceeding RMB5m was RMB486.74bn from Jan-Feb 10, up 119.7% (-37.3% in Jan-Feb 09). (Xinhua)

China’s banking regulator ordered lenders to take more care when making real-estate loans, widening efforts to prevent property speculators from causing asset bubbles and bad debt. Banks should not lend to developers found by state agencies to have held land without building houses, the government said in a statement posted online. They should also stop approving new lines of credit to 78 government-controlled companies whose core business isn’t property development if they use collateral other than construction projects already in progress, the statement said. (BT)

Japan’s consumer prices fell for a 12th month in February, adding pressure on the central bank to eradicate deflation that is hampering the economic recovery. Prices excluding fresh food slid 1.2% yoy after dropping a 1.3% in each of the preceding two months. (Bloomberg)

Singapore’s visitor arrivals grew by 24.2% yoy to 857,000 in February (908,000 in Jan). The growth was the highest ever recorded, and this was also the third consecutive month of record visitor arrivals. The city-state's top five visitor-generating markets in February were Indonesia (144,000 visitors), followed by China (143,000 visitors), Malaysia (69,000 visitors), Australia (55,000 visitors) and United Kingdom (48,000 visitors). (Bernama)

Singapore’s industrial production increased for a third straight month as rising exports of electronics and pharmaceuticals spurred output, bolstering economic growth. Manufacturing gained 19.1% yoy in February (39.2% in Jan). The median forecast was for a 13.7% gain. (Bloomberg)

Vietnam’s trade deficit widened in March from February as imports climbed. The shortfall this month was US$1.35bn (-US$1.33bn in Feb). For the year to date, Vietnam posted a US$3.5bn trade gap, compared with a surplus a year earlier. (Bloomberg)

Greek Prime Minister George Papandreou, fresh from winning a European Union aid package last week, now has to prove he can keep his nation’s finances afloat. His government still has to raise as much as €15.5bn (US$21bn) by the end of May, almost as much debt as it sold in the first quarter, says Petros Christodoulou, head of the country’s debt agency. Failure to do so could spark a new round of the fiscal crisis and trigger the use of the aid plan crafted by EU leaders in Brussels on March 25. The EU and International Monetary Fund pledge to help Greece finance the region’s biggest budget deficit should it run out of options in capital markets helped lift the euro from a 10-month low against the dollar and drove stocks higher around the world. (Bloomberg)

Bank of Thailand Deputy Governor Bandid Nijathaworn said on Friday, “Political factors don’t have a significant impact on the financial markets. The movements are normal and reflect economic fundamentals. “The impact may be felt in tourism, consumption and confidence. Still, the level of impact depends on how quickly the situation can be resolved. “We will monitor how the political situation develops and assess it at our next meeting.” (Bloomberg)

Thai Prime Minister Abhisit Vejjajiva and leaders of anti-government protests said they would try again this evening at 7 pm, after failing to reach an agreement yesterday in nationally-televised talks on how to solve the country's political crisis. (Today Online)

Friday, March 26, 2010

20100326 1853 FCPO Weekly Chart Study.

FCPO closed : 2534, changed : -43 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : getting lower, seller taking exposure.
Support : 2530, 2500, 2450 level.
Resistant : 2580, 2630, 2700 level.
Comment :
FCPO continue to trade lower in diminishing volume week on week. However, weekly chart reading has yet to turn negative and still suggesting a side way range bound market as the Bollinger band width continue to turn inward. Should price continue to trade lower with supportive volume in the coming week and Bollinger band width stop contracting will lead market to a negative biased development.

20100326 1836 FCPO EOD Daily Chart Study.

FCPO closed : 2534, changed : -41 points, volume : lower.
Bollinger band reading : downside biased.
MACD Histrogram : reversed lower, seller taking chances.
Support : 2521, 2500, 2470 level.
Resistant : 2550, 2570, 2590 level.
Comment :
Weaker soy oil futures price development lead FCPO to trade lower with improved volume changed hand. Daily chart recorded a weaker outlook with further downside potential.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/breakdown with larger cut loss and profit target.

20100326 1802 FKLI Weekly Chart Study.

FKLI closed : 1321, changed : +23 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : recovering, buyer still in charged.
Support : 1310, 1300, 1270 level.
Resistant : 1335, 1350, 1360 level.
Comment :
FKLI ended the week boldly forming a up wide range bar with increased volume transacted. Weekly chart wise, the market downward correction has ended and resumed its uptrend movement. Expect market to trade side way range bound with a little upside biased in the coming week.

20100326 1740 FKLI EOD Daily Chart Study.

FKLI closed : 1321, changed : +3.5 points, volume : higher.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : rise higher, buyer still defending.
Support : 1318, 1312, 1307, level.
Resistant : 1325, 1330, 1335 level.
Comment :
Closed near the high FKLI traded firmer with continue improving volume following major Asia market that closed in positive territory. Daily chart reading outlook starting to turn bullish biased with potential testing further upside resistant level.
When to buy : buy at support/weakness/break up with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100326 1250 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1315, changed : -2.5 points, volume : high.
Bollinger band reading : side way range bound.
MACD Histrogram : not much changes, battle still on between buyer and seller.
Support : 1312, 1307, 1300, 1295 level.
Resistant : 1318, 1325, 1330 level.
Comment :
FKLI opened and traded side way range bound with better volume changed hand. Hourly chart continue to show a side way range bound market trading within the immediate support and resistant level of 1312 and 1318
until price break away from this range to identify the market new direction.

20100326 1239 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2552, changed : -23 points, volume : low.
Bollinger band reading : side way downside biased.
MACD Histrogram : falling, seller returned.
Support : 2550, 2521, 2500 level.
Resistant : 2570, 2590, 2620 level.
Comment :
Weaker overnight soy oil futures price lead FCPO to opened and traded lower in light volume. Hourly chart suggesting market to trade downside biased with possible small upward correction as price once overly penetrated below the lower Bollinger band level.

20100326 1015 Malaysia Corporate News.

Maybank proposed to undertake a recurrent and optional dividend reinvestment plan, which allows its shareholders to reinvest their dividends in new ordinary Maybank shares. The subscription to the new Maybank shares will be at a discount of not more than 10% to the 5-day volume weighted average market price prior to the price fixing date. The proposed dividend reinvestment plan will provide shareholders with greater flexibility in meeting their investment objectives as they will have the choice of receiving cash or reinvesting in the company through subscription of additional Maybank shares without having to incur material transaction or other related costs. Whenever a cash dividend (interim, final, special or other dividend) is announced, the board will decide if the reinvestment plan applies to the whole or a portion of the dividend. (BMSB)

Indonesia in April will raise the tax on palm oil exports to 4.5% from 3%, Diah Maulida, director general of foreign trade at the Trade Ministry, said in a mobile-phone text message today. The government raised the base price used to calculate the duty to US$752 a metric ton from US$708 a metric ton, she said. (Bloomberg)
This is expected and is in line with the rising international CPO price.

Hartalega Holdings is spending some RM40m to upgrade Plant 1 which will help to almost triple production capacity by next year. With 10 production lines, Plant 1 currently is only producing about 500m pieces of gloves a year. The refurbished plant will increase production to 1.7bn pieces of gloves a year. The refurbished plant is expected to be ready by July next year. Hartalega is also in the midst of completing its Plant 5 by November which will have 10 production lines. Currently, the group produces 7bn pieces of gloves a year and once all the new plants are upgraded and completed, the group will produce 9.7bn pieces of gloves a year. Kuan said the group is continuously looking to acquire land to prepare for the next phase expansion. (BT) Management's comments are in line with our estimates. Thus, no change to our earnings forecasts.

Malaysia Airlines is targeting a profit of RM100-300m this year, which would mark an improvement in operating terms from 2009, CEO Tengku Azmil Aziz said on Wednesday.
  • Mr Azmil said at the FIDAE air industry fair in the Chilean capital that the carrier would look at debt financing, possibly including corporate bonds, to fund its fleet renewal, but had no plans for any additional equity raising. 
  • 'Results for last year incorporated a lot of the fuel price difference. So if you strip that out, RM100-300 million would be better. We did lose money at an operating level last year,' he added.
  • 'The key thing will be what happens to the global economy. We are seeing quite different regions recovering at different paces. Fuel prices obviously are a concern as well. Those are the two big elephants in the room. The other things don't matter as much.' (Reuters, SBT) 
We are currently projecting operating loss under FRS of RM432m for 2010, so MAS’s projections for RM100-300m profit exceed our expectations.

Malaysia Airlines will reinstate most of the capacity it took out during the economic downturn in the coming days to months as demand for air travel picks up except for its American route.
  • Its forward bookings for 2Q10 is also showing a strong growth trend with bookings hitting 70% despite 2Q being traditionally a slower quarter. “We carried about 62% load last year,’’ MAS senior general manager (sales) Datuk Bernard Francis said. 
  • Traffic picks up in 3Q and exceptional growth is experienced by most airlines in 4Q. Bernard said it would be good if the airline could end the year with loads of 70% to 75%. He said there was a lot of growth in the Asia-Pacific region, Asean, Europe and Australia but a bit slower in the United States.
  • To reinstate capacity, the airline will add flights from Kuala Lumpur to Auckland (from four to five weekly) and Perth (from nine to 10 weekly) before end of March. For Paris, the plan is to add two weekly flights from five to seven, and recently it added two weekly flights to Brisbane. “With this and some more, we would have added back more than half the capacity that we took out during the crisis,’’ he said.
  • By the last quarter of this year the airline will take delivery of three new aircraft and for that it is reviewing its network to add more frequency and routes. It has eyes on the Indian sub continent, Middle East and Asean. “We run labs to determine profit viability of each route that we intend to mount and we will make the announcements in mid-year,’’ he said. (StarBiz)
A Malaysia Airlines Boeing 737 from Singapore to Langkawi via Penang, with 83 passengers and seven crew members on board, made an emergency landing at the Bayan Lepas International Airport yesterday. The plane landed safely and all passengers and crew on board were safe. A passenger on the flight, Eddie O’Hara from Sydney, said that before the plane made an emergency landing, he heard loud noises and saw fire and thick smoke from one of the engines. “The captain made a circular movement and attempted to land on the runway but had to abandon the move and take off before making a second attempt successfully.” He also praised the pilot for being very professional throughout the ordeal and for his ability to land the plane safely without causing any injuries to the passengers or crew. (Bernama)

A battle royal is shaping up between Gamuda and the Selangor government over the longdrawn planned consolidation of the water services industry in the state. A day after Gamuda made a RM10.75bn takeover bid, Selangor said it would continue to negotiate with federal government for it to be in the driver's seat in the exercise. "The state will continue to work with the federal government to implement the Water Services Industry Act (WSIA) 2006 to consolidate all water concession operators into a single entity under the control of the state government," the Selangor government said yesterday. However, Syarikat Pengeluaran Air Sungai Selangor Sdn Bhd (Splash) which is 40% owned by Gamuda, said it has the shareholders' mandate to legally challenge the WSIA. "We have a clear mandate from our shareholders to challenge the constitutionally of WSIA 2006 in court if we are pushed to the corner," Splash said. (Financial Daily)

Telekom Malaysia (TM) which has just launched its high speed broadband (HSBB), UniFi is maintaining the pricing for most of the packages offered under its current broadband service, Streamyx. Group CEO Datuk Zamzamzairani Mohd Isa said although TM had introduced the 5 Mbps package for UniFi, it was maintaining the prices for the current 1 Mbps and 2 Mbps by Streamyx. However, TM is offering new and existing 4 Mbps Streamyx combo and non-combo customers a rate of RM140/month effective immediately regardless of their location. TM's UniFi pacakges comrpise triple-play service of highspeed Internet, video (IPTV) and phone, with speeds of 5 Mbps, 10 Mbps and 20 Mbps. The 5 Mbps packaged is priced at RM149/month, the 10 Mbps at RM199, and the 20 Mbps at RM249 with a two-year contract. (Starbiz)

Freight Management Holdings, a Port Klang-based multimodal freight service provider, is planning to enter the Vietnamese market under a joint venture (JV) with a local partner Dang Anh Binh. Under the deal, Freight Management will hold 51% of the stake in the JV and the rest will be owned by its Vietnamese partner. The new Ho Chi Minh City-based JV will initially operate a freight forwarding business. It had last year entered into JVs with local partners in Thailand and Indonesia in 2008. In 2006, it bought a 51% equity interest in TCH Marine Pte Ltd, a Singapore-based barge and tugboat operator. Prior to that, Freight Management also established its first overseas office in Western Australia with the setting up of a JV company, Icon Freight Services Pty Ltd, in which it controls 55%. "After Vietnam, Freight Management is likely to venture into neighbouring Cambodia," said the source. (BT)

The Kuala Lumpur International Airport has emerged tops in the Best Airport Immigration Service and Staff Service Excellence category in Southeast Asia, in the recent Skytrax 2010 World Airport Awards. For the top 25 rankings in the World Airport Awards for 2010, KLIA improved its position to fifth placing, from seventh previously. (Bernama)

Kuala Lumpur tops the list for cheapest holiday destination, according to global travel specialist STA Travel UK. The list is based on what is described by STA Travel as the main ingredients for a good holiday -- a meal in a local restaurant, a pint of beer, a night in a hostel, a bus ride and a sightseeing bus tour around the city. When totalling the typical price for such items, Kuala Lumpur emerged the cheapest at £13.09, followed by Hanoi (£18.29), Seoul (£18.38), Mexico City (£22.84), Beijing (£24.82), Istanbul (£27.38), Bangkok (£27.40) and Cape Town (£31.68). (Bernama)

Loh & Loh Corp said a 60:40 JV between its subsidiary has accepted the terms of Tenaga Nasional Bhd's (TNB) letter of intent for the award of a RM828.3m contract involving the Hulu Terengganu hydroelectric project. The project should be completed in 56 months with a defect notification period of 12 months. (BT)

Holcim Malaysia Sdn Bhd, a subsidiary of Swiss-based Holcim Ltd, has launched the first in a series of technologically-advanced and eco-friendly cement products for the country's building industry. The new range of Holcim products contains fly ash, which makes cement stronger, more durable and resistant to chemical attack. The new portfolio of products offers not only total solutions to customers, but is also expected to contribute significantly to Holcim's corporate purpose of providing solutions in building foundation for a sustainable future. (BT)

20100326 1009 Malaysian Economic News.

The Malaysian Industrial Development Authority (MIDA) is encouraging German companies to enter the machinery and equipment, and renewable energy sectors in Malaysia. "The oil and gas industry is quite advanced here and there are many openings. In addition, the renewable energy sector is another important platform that has room for investment as Malaysia is accelerating efforts and initiatives in this sector,” said MIDA director-general and chief executive officer Datuk Jalilah Baba. (Bernama)

Germany expects its trade with Malaysia to increase by 5.0% with more interest in the renewable energy and green technology industries, said German ambassador to Malaysia Dr Gunter Gruber. "We foresee more business activities taking place in green technology and renewable energy industries as the interest among industry players is increasing," he said. (Bernama)

The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) is optimistic the government's target of 6.0% economic growth this year will be achieved on the back of global recovery, improvements in local sales and overseas orders. "The government needs to open up more land for mining tin, iron ore and coal because these are the rich resources," its president, Tan Sri William Cheng Heng Jem said. (Bernama)

The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM)’s survey on the economic situation for 2H09, which involved 310 respondents, found that most of the respondents were more confident and optimistic of the future of the economy and businesses outlook for this year and next year. About 75% of them said they would be able to maintain or achieve export sales and local orders in 1H10. While13% of the respondents planned to increase their investments in new resources/plants during 1H10. More than half of the respondents said that the good and services tax (GST) would bring negative impact to their businesses. (Bernama)

Malaysian Employers Federation (MEF), the country's premier employers organization, proposed that the Employees Provident Fund (EPF) be revamped into a pension scheme for private sector workers. Its executive director, Shamsuddin Bardan, said a separate pension scheme for this category of workers would merely be a duplication of the EPF. It would be unfair and costly for the private sector employers to be imposed with compulsory contributions to the EPF and also the proposed pension scheme. (Bernama)

Deputy International Trade and Industry Minister, Datuk Mukhriz Tun Mahathir said that the tenacity of local workers is not at par with foreign workers from neighbouring countries. "This was a loss for the industry member after having given them the training. Their salaries had been considered but even that was not enough for them to stay on the job," he added. (Bernama)

The government is poised to attract more foreign direct investment (FDIs) when higher skills and productivity set In through the New Economic Model (NEM). “This is our wakeup call. With stiff competition for FDIs from our neighbours and the world’s focus on the larger Asian economies of China, India, Vietnam and Indonesia, Malaysia faces challenges in not just attracting FDIs but also in attracting talent to our shores,” Umno’s economic bureau member Datuk Dr Norraesah Mohamad said. (The Star)

The country’s electric and electronics (E&E) sector has been seeing persistent pick-up in orders the past five months, according to International Trade and Industry Minister Datuk Seri Mustapa Mohamed. He said the ministry would continue working with companies in ensuring Malaysia progressed and remained competitive, especially in the E&E industry. (StarBiz)

20100326 1006 Global Economic News.

To Wall Street's delight, Federal Reserve Chairman Ben Bernanke signalled once more that the Fed will keep interest rates at very low levels for some time to come in congressional testimony on Thursday. Bernanke said there will come a time when the Fed will need to tighten its unprecedentedly easy money policies and said the Fed has the tools to do so. But he made clear he is no hurry to raise rates. (Xinhua)

US initial jobless claims dropped 14,000 to 442,000 in the week ended March 20. The level was just below the 450,000 level expected by the market. The 4-week moving average of initial claims, which smoothes out volatility in the measure, was 453,750. That's down 11,000 from the previous week's revised average of 464,750. The report also said 4,648,000 people filed continuing claims in the week ended March 13 vs. preceding week's revised 4,725,500 claims. (CNN Money, Xinhua)

The Federal Reserve must start making plans now for asset sales to meet its goal of returning a record US$2.32tr balance sheet to its pre-crisis size and makeup, St. Louis Fed President James Bullard said. “You have to think about what kind of time horizon you want to get back to that normal balance sheet, and probably that has to involve some asset sales at some point,” said Bullard. He said there’s no agreement among policy makers on when to start the sales, and the economic recovery remains too fragile to start now. “I don’t think you could do any kind of tightening policy right now,” Bullard said. (Bloomberg)

Europe’s loans to households and companies declined 0.4% yoy in February, marking the sixth straight month of decline as sluggish economic expansion reduced demand for credit. M3 money supply, which the ECB uses as a gauge of future inflation, fell 0.4% yoy in February (+0.1% in Jan), worse than market consensus of a 0.1% yoy drop. M1 money supply growth eased to 10.9% (+11.5% in Jan). (Bloomberg)

European Central Bank (ECB) President Jean-Claude Trichet said the bank will leave emergency collateral rules in place into 2011, softening his stance as Greece struggles to reduce the European Union’s largest budget deficit. “It is the intention of the ECB’s Governing Council to keep the minimum credit threshold in the collateral framework at investment grade level (BBB-) beyond the end of 2010,” he said. (Bloomberg)

European chiefs agreed to bring in the International Monetary Fund (IMF) to help aid debt-stricken Greece in the face of opposition from the European Central Bank (ECB). Leaders of the 16-nation euro region endorsed a Franco-German proposal for a mix of IMF and bilateral loans as the ECB’s president, Jean-Claude Trichet, said Europe has to resolve the crisis on its own. “If the IMF or any other authority exercises any responsibility instead of the eurogroup, instead of the governments, this would clearly be very, very bad,” Trichet said. (Bloomberg)

Australian borrowing costs need to continue being moved gradually toward “more normal levels” to prevent the nation’s economic rebound from stoking inflation, Assistant Governor Philip Lowe said. “We need to ensure that inflation pressures remain contained and that inflation expectations remain well anchored,” he noted. (Bloomberg)

Japan’s government, faced with more houses than households, is encouraging people to renovate their homes as a step toward creating a strong resale market. Prime Minister Yukio Hatoyama’s administration is offering environmental incentives to homeowners to remodel, rather than follow the postwar scrap-and-build policy of tearing down old houses. The ruling Democratic Party of Japan aims to boost sales of existing homes and extend their lifespan from an average of 30 years, compared with 55 in the US. (Bloomberg)

Taiwan’s central bank signaled it will accelerate the withdrawal of funds from the financial system and impose “prudent” measures on property lending to prevent the emergence of asset bubbles. The central bank will issue longer-dated certificates of deposit to banks to soak up liquidity, it said. Governor Perng Fai-nan and his board left the benchmark discount rate on 10-day loans to banks at 1.25%, as forecast by economists. “Taiwan’s property prices are high in certain areas, so we can’t use blunt policy. We need to use targeted measures and supervision to handle the matter,” Perng said. (Bloomberg)

Indonesia hopes to attract US$90bn of private infrastructure investment in the next five years to help it reach its growth target of 7.0%. Poor infrastructure is one of the main obstacles to unlocking the huge potential for Southeast Asia's biggest economy. "We plan to spend US$140bn for infrastructure spending in the next five years. However, US$90bn of that has to come from the private sector," Investment Coordinating Board chairman Gita Wirjawan said. (Channel News Asia)

Debt-laden Dubai World said it has proposed to repay its creditors in full through the issuance of two tranches of new debt maturing in five and eight years. It said that the total debt owed to creditors which will be negotiated amounts to US$14.2bn, implying that the remaining of total liabilities of US$23.5bn "as at 31 Dec 09" will be paid by the government. The government will convert its financial support of US$8.9bn to the group into equity. The government will also commit to inject up to US$1.5bn in cash into Dubai World "to fund the company's working capital and interest payment commitments that will arise from the new debt facilities," the firm added. (Channel News Asia)

Hong Kong’s exports rose 28.5% yoy in February (18.4% in Jan). That compares with the median estimate for a 25.3% gain. Import growth slipped to 22.4% yoy (39.5% in Jan), narrowing the trade deficit to HKD19.7bn (-HKD29.5bn in Jan). (Bloomberg)

India’s food-price inflation rate fell to a five-month low, a drop that may be insufficient to avert further interest-rate increases by the central bank. An index measuring wholesale prices of lentils, rice, vegetables and other food articles compiled by the commerce ministry rose 16.22% yoy in the week ended March 13, after a 16.3% gain the previous week. (Bloomberg)

The world’s largest economies, including the US, UK and Europe, face “difficult fiscal decisions” in coming years to curb debt levels, according to Australian central bank Governor Glenn Stevens, the only Group of 20 policy maker to boost borrowing costs this year. “At some point, significant discretionary tightening will be required. Without a “credible path to fiscal sustainability” economic growth “could easily be stunted by rising risk premia built into interest rates as markets worry about long-run solvency,” Steven noted. (Bloomberg)

China central bank Deputy Governor Zhu Min said interest rates are a “heavy-duty weapon” and alternative tools for addressing liquidity are working well, helping to explain why the bank hasn’t raised borrowing costs. “We are very careful on the interest rate, because it is a heavy-duty weapon. We are very careful managing liquidity” with other instruments, and it looks like that “works very well,” he said, citing an expected slowdown in credit growth in March. (Bloomberg)

South Korea’s economy expanded 0.2% qoq in 4Q09 (3.2% in 3Q09), matching the initial estimate. Gross domestic product (GDP) increased 6.0% yoy (0.9% in 3Q09), also matching the January estimate. (Bloomberg)

The University of the Thai Chamber of Commerce said anti-government protests in Thailand could harm growth, forecasting the economy may expand as little as 3% in 2010. Thailand might lose as much as THB100bn (US$3.1bn) from falling consumption and lost investment and tourism revenue should the protests last for three months, the university said. (Bloomberg)

Thursday, March 25, 2010

20100325 1810 FCPO EOD Daily Chart Study.

FCPO closed : 2575, changed : +15 points, volume : lower.
Bollinger band reading : side way downside biased.
MACD Histrogram : continue rising, seller reducing exposure.
Support : 2570, 2550, 2521 level.
Resistant : 2590, 2620, 2650 level.
Comment :
FCPO traded side way range bound within a 28 point range with lesser volume changed hand ended the day higher. Side way range bound downside biased market suggestion remained unchanged from the daily chart reading stand point.
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.