Friday, July 30, 2010

20100730 1848 Global News.

China has overtaken Japan to become the world's second-largest economy, the fruit of three decades of rapid growth that has lifted hundreds of millions of people out of poverty. pricorn23: Depending on how fast its exchange rate rises, China is on course to overtake the United States and vault into the No.1 spot sometime around 2025, according to projections by the World Bank, Goldman Sachs and others

Though the rate increased from 20.05 percent in the first three months of the year, the National Statistics Institute (external link) said the number of people working actually increased. Still, the overall unemployment rate rose to its highest level since 1997 because of a large increase in the work force. Spain crawled out of recession in the first quarter of this year after nearly two years of economic contraction and has been a focus of concern in recent months, as investors fretted that its bloated deficit and troubled banking sector could necessitate a Greek-style bailout.

20100730 1846 FCPO Weekly Chart Study.

Weekly Close: 2517, High: 2539, Low: 2434, Range: 105 points
FCPO closed : 2517, changed : +19 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : recovering, buyer strength increased.
Support : 2500, 2450, 2400 level.
Resistant : 2540, 2600, 2650 level.
Comment :
Week on week marginal gain FCPO traded in lesser volume as market opened and tested higher and also tested lower below middle Bollinger band support level but still manage to recover and closed at higher ground formed a long lower shadows doji bar candle. Weekly chart wise, overall outlook remained unchanged with a side way range bound market development.

20100730 1845 FCPO EOD Daily Chart Study.

FCPO closed : 2517, changed : +3 points, volume : higher.
Bollinger band reading : range bound, upside biased.
MACD Histrogram : weakening, buyer profit taking.
Support : 2500, 2470, 2450 level.
Resistant : 2520, 2550, 2570 level.
Comment :
Continue improving volume FCPO closed for weekend marginally higher after market opened gap up at the high of the day but immediately head south due to profit taking activities tested below support level and following by last hour bargain hunting push price upward to register minor gain. Daily chart wise, market outlook adjusted into suggesting a range bound upside biased market as Bollinger band width seems started to turned inwards.
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.

20100730 1821 FKLI Weekly Chart Study.

Weekly Close: 1356.5, High: 1363.5, Low: 1350.5, Range: 13 points.
FKLI closed : 1356.5, changed : +2.5 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : rising higher, buyer still in charge.
Support : 1350, 1335, 1310 level.
Resistant : 1360, 1375, 1385 level.
Comment :
Recorded marginally week on week higher FKLI traded in tight range marker with improved encouraging volume transaction. Weekly chart wise, market traded range bound testing support and resistant level with the reading still suggesting a upside biased market development outlook.

20100730 1806 FKLI EOD Daily Chart Study.

FKLI closed : 1356.5, changed : -5.5 points, volume : lower.
Bollinger band reading : side way range bound, upside biased.
MACD Histrogram : turned downward, buyer clearing position.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385 level.
Comment :
FKLI July contract ended lower on last trading day as buyer clearing off positions without much trading activities and tight range market. Today daily chart small body and range candle doji opened lower and traded range bound with the outlook having side way range bound upside biased reading. Another interesting aspect will be a possible negative divergence in the forming between price and MACD Histrogram plus volume.
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.

20100730 1445 FKLI Mid Day Hourly Chart Study.

FKLI last looked(Aug 2010) : 1359, changed : -5.5 points, volume : low.
Bollinger band reading : side way range bound.
MACD Histrogram : falling lower, no much participation from both buyer and seller.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385 level.
Comment :
Thin trading FKLI traded lower ahead of weekend and month end following overnight lower DJIA closed and negative development over major regional market. Hourly chart wise market opened gap down lower and continue to test lower support level and now hovering around middle Bollinger band level with the outlook having side way range bound marker reading.

20100730 1443 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2524, changed : +10 points, volume : low.
Bollinger band reading : correction, upside biased.
MACD Histrogram : weakening, buyer taking profit.
Support : 2520, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
Quiet weekend mood volume transaction FCPO continue to register small gain for the first session after market opened gap higher at the high of the day and immediately faced profit taking selling pressure pressed price to closed near the low. Hourly chart reading suggesting a range bound correction upside biased market development for the near term.

20100730 1417 Local & Global Economic News.

Malaysia: Malacca halal hub aims for RM155m investment, says CM
The Melaka Halal Hub in Serkam, Jasin, aims to woo RM155m investment by year-end, says Chief Minister
Datuk Seri Mohd Ali Rustam. Currently, the 53.6 hectare hub has received RM125m investments, he said. 48 of the 58 factories at the hub were already owned by the investors. (BT)

Singapore: Economic expansion may spur inflation
Singapore, which had a record first-half expansion, said economic activity will probably remain at “high levels” for the rest of the year, adding pressure on business costs and spurring inflation. Growth is supported by a broad range of industries that will remain “largely intact” in 2010, the Monetary Authority of Singapore said. The central bank said it will issue as much as SGD20bn (USD15bn) in bills starting next year as a new instrument in money-market operations to help lenders manage liquidity. (Bloomberg)

China: People’s Bank of China sees ‘less need’ to lift rates, IMF says
China sees little need for an imminent increase in interest rates, standing apart from Asian counterparts that are
raising borrowing costs as the region shrug offs risks from advanced economies. People’s Bank of China officials said “that with a benign inflation outlook there was less need for higher nominal interest rates at this
point,” the International Monetary Fund said in a statement after annual consultations with the Chinese government. “Also, they were concerned that higher interest rates could risk fueling capital inflows.” (Bloomberg)

Russia: Debt risk drops most in four months as growth picks up
The cost of protecting Russian government bonds from non-payment fell the most in four months in July, helped by rising oil prices, accelerating economic growth and a declining budget deficit. Russia’s five-year credit-default swaps dropped 32 basis points, or 0.32% point, the biggest monthly decline since March, to 164 as of July. The move was more than the 18 basis-point retreat for Brazil contracts, 14 for Mexico and 12 for China, according to data compiled by Bloomberg. (Bloomberg)

EU: Europe economic confidence rises as exports improve
European confidence in the economic outlook rose to the highest in more than two years in July and German
unemployment declined for a 13th month as exports sustained a recovery in the region. An index of executive
and consumer sentiment in the 16 euro nations increased to 101.3 from 99 in June, the European Commission
said. That’s the highest since March 2008. (Bloomberg)

US: Jobless claims in US declined by 11,000 to 457,000
The number of Americans filing first-time claims for unemployment insurance fell to 457,000, a figure that signals the labor market will be slow to improve even as the economy grows. Initial jobless claims dropped by 11,000 in the week ended July from a revised 468,000, Labor Department figures showed. Applications were in line with the median forecast in a Bloomberg News survey. (Bloomberg)

US: Deficit panel eyes reining in tax breaks
A US presidential commission charged with cutting the budget deficit discussed the politically charged issue of
scrapping or changing tax breaks that cost about USD1trn a year. Senate Budget Committee chairman Kent
Conrad suggested ending some of the tax breaks as part of a broader effort to streamline the US tax code to
make the economy more competitive globally and generate revenue without raising tax rates. (Financial Daily)

20100730 1415 Malaysia Corporate News.

Dr Ling Liong Sik charged over PKFZ scandal
The Government kept its momentum on the Port Klang Free Zone fiasco going when it charged former transport minister Tun Dr Ling Liong Sik with misleading the Government in relation to the acquisition of a piece of land in Pulau Indah to the tune of RM1.1bn yesterday. (Financial Daily)

Ananda may buy out Tanjong for RM4.4bn
Billionaire Tan Sri T. Ananda Krishnan is set to buy out Tanjong, the second of his listed firms in three days in a deal worth RM4.4bn, two sources with direct knowledge of the deal said. Ananda's Usaha Tegas investment vehicle will launch a bid for Tanjong today at RM20.50 per share for 53% of the 403m shares not held, said the two sources, who declined to identified as they are not authorized to speak to the media. (BT)

Last-minute deferment on listing unavoidable, says Focus Point
Focus Point clarified Thursday that the last-minute deferment notice on its listing exercise made on Tuesday
morning was unavoidable as matters had evolved only at the 11th hour. In a statement, the company said it has been cooperating with the regulatory authorities "to address the malicious allegations against the company and believes that everything will be sorted out in just a matter of time". (Bernama)

Selangor sticks with decision to not allow Syabas to raise water tariffs
The Selangor government reiterated that it would stick to the decision to disagree with a rise in water tariffs as
proposed by Syabas. A statement from the Menteri Besar's office Thursday on the water issue stated that no
matter what the conditions were, there was no agreeing to a rise in water tariffs for customers. The state
government also indicated, it was prepared to defend its stand while saying it would however, not stop anyone, including Syabas from seeking justice in court. (Bernama)

JCorp chief Muhammad Ali quits
Johor Corp's president and CEO Tan Sri Muhammad Ali Hashim surprised the Johor corporate community
yesterday when he walked out of the company's board meeting after announcing his immediate resignation from the post. The 62-year-old Johor corporate personality was earlier scheduled to retire in November. Reasons for his abrupt resignation remain sketchy but there have been talk that quarters in Johor wanted him out due to dissatisfaction of his management and debts incurred by the corporation. (BT)

Alliance eyes 16% ROE
Alliance is aiming for a 16% ROE within at least a year from 11% now, its new chief Sng Seow Wah said. Its
main focus will continue to be on consumer banking, which is its key earnings driver, and SME banking. (BT)

Scomi Engineering eyeing more jobs
Scomi Engineering, a 69.3% subsidiary of Scomi Group, confirmed that it has submitted proposals to upgrade
trains from the existing two-car to four, and is waiting for a decision on the extension of the current KL Monorail line. Previously, it was reported that Scomi Engineering is poised to be awarded a RM600m contract in a bid by the government to fast-track the upgrade of public transportation system in the city. (Financial Daily)

20100730 1407 Global Market News,

Asia stocks slip on U.S. worries
HONG KONG, July 30 (Reuters) - Asian stocks sagged  as worries U.S. growth data may surprise on the downside and downbeat comments from a Federal Reserve official gave investors reason book profits from a steady rally this month.
"For all the risk on/off talk, I would suggest that risk is never off, rather it becomes more selective," said Geoff Howie, Sales and Markets Strategist, MF Global Markets in Singapore. 

NEW YORK, July 29 (Reuters) - Global stocks fell on Thursday as tech companies' weak outlooks fueled recovery concerns, although the euro rose to a 12-week high against the dollar on better-than-expected European economic data.
"There is still a lack of confidence in the sustainability of economic growth and the sustainability of the earnings stream being extended into 2011," said Heino Ruland, strategist at Ruland Research in Frankfurt.  

Earnings boost stocks, dollar slips to 3-mth low
LONDON, July 29 (Reuters) - Robust quarterly earnings from Europe drove world stocks higher, while the dollar hit a three-month low on the back of weak U.S. data and a downbeat assessment of the economy from the Federal Reserve.
"Second-quarter results are better than expected and it supports the market, but the rise is capped by the rather poor macro data," said Emmanuel Morano, head of equity management at fund management firm UFG-LFP in Paris.

20100730 1404 Soy Oil & Palm Oil Related News.

Soyoil futures climbed in unison with advances in the rest of the soy complex, with spillover strength from crude oil futures and fresh export sales to China lending support. December soyoil settled 0.43 cents or 1.1% higher at 40.00 cents per pound. (Source:CME)

Global weather concerns lift palm oil
KUALA LUMPUR, July 29 (Reuters) - Malaysian crude palm oil rose 1.1 percent  concerns that dry weather in Europe will curb global vegetable oil supplies in the medium-term.
"There was no follow through in the technical correction earlier this week for palm oil. Traders are watching the weather developments in Europe and the U.S.," said a trader with a foreign broker in Malaysia. "Crude oil is giving support."

Indonesian Sinar Mas-linked firms wrecked forest-report
JAKARTA, July 29 (Reuters) - Greenpeace said on Thursday it had fresh evidence that palm oil firms linked to Indonesian agribusiness giant Sinar Mas have bulldozed rainforest and destroyed endangered orangutan habitats in Kalimantan.
The charges were denied by palm oil firm PT SMART Tbk , part of Sinar Mas, which has already said it would stop clearing critical forests.

Thursday, July 29, 2010

20100729 1855 FCPO EOD Daily Chart Study.

FCPO closed : 2514, changed : +19 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : weakening, buyer still in and locking in profit.
Support : 2500, 2470, 2450 level.
Resistant : 2520, 2550, 2570 level.
Comment :
FCPO ended the day registering some gain with better volume transacted after market opened and tested higher but profit taking activities pressured price to downward resulted FCPO to closed off the high of the day. Daily chart technical reading suggesting an upside biased market market development but with weak supportive volume.
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.

20100729 1854 FKLI EOD Daily Chart Study.

FKLI closed : 1362.5, changed : +6.5 points, volume : lower.
Bollinger band reading : side way range bound, upside biased.
MACD Histrogram : reverse upward, buyer still in charge.
Support : 1360, 1350, 1345 level.
Resistant : 1375, 1385, 1395 level.
Comment :
Despite thin volume trading and 1 day ahead of expiry, FKLI still managed to closed the day at higher ground doing 4 points premium compare to cash market. Daily chart wise, market outlook suggesting a side way range bound upside biased development.
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.

20100729 1300 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1356.5, changed : +0.5 point, volume : low.
Bollinger band reading : side way range bound.
MACD Histrogram : recovering, not much participation from both buyer and seller.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385 level.
Comment :
Near expiry FKLI traded in thin volume tight range market closed 1 tick higher for lunch. Hourly chart study suggesting a side way range bound little upside biased market development.

201000729 1258 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2522, changed : +27 points, volume : moderate.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : rising, buyer remained in charge.
Support : 2500, 2470, 2450 level.
Resistant : 2520, 2550, 2570 level.
Comment :
Buyer dominated FCPO continue to trade firmer with supportive volume changed hand after market opened gap higher and continue to move upward. Hourly chart show market break above 2500 resistant level and now reached the upper Bollinger band. Outlook wise, technical reading suggesting a side way range bound upside biased market.

20100729 1236 Local & Global Economics News.

Australia: Consumer prices rose 0.6% QoQ in the 2Q10 from the previous three months, the Bureau of Statistics said in. Prices increased 3.1% YoY. (Source: Bloomberg)

Malaysia: Miti taking proactive measures to attract FDIs
The drop in foreign investments into Malaysia is not as bad as revealed by the Unctad World Investment Report (WIR) 2010 and changes are under way to ensure the country competes to attract high value-added investments. International Trade and Industry Minister Datuk Seri Mustapa Mohamed said net investments in the first quarter rebounded to USD1.41bn and exceeded that of the whole of last year and he had told the Cabinet that the ministry would be taking proactive measures to encourage mo re foreign and domestic investment. (StarBiz)

Malaysia: Consumer confidence turns more optimistic
Consumer confidence in Malaysia inched up to 99 index points in the second quarter from 98 points in the first quarter of this year, according to the latest Nielsen Global Consumer Confidence Survey. In a statement, Nielsen said the latest consumer confidence index gain in Malaysia also represented an 18-point surge from an all-time low in the first quarter last year. Consumer Confidence Index levels above and below a baseline of 100 indicate degrees of optimism and pessimism respectively. (StarBiz)

New Zealand: Raises benchmark rate for second month. "Further removal of monetary policy stimulus is appropriate," central bank Governor Alan Bollard said in a statement released in Wellington after boosting the official cash rate by a quarter percentage point to 3%. (Source: Bloomberg)

Japan: Slower production may build case for stimulus extension
Japanese industrial production probably grew at the slowest pace in more than a year last quarter, adding pressure on the government to extend consumer incentives as export growth cools. Factory output rose 0.2% in June from May, according to the median estimate of 26 economists surveyed by Bloomberg News ahead of a Trade Ministry report to be released in Tokyo. That would cap the smallest quarterly gain since production fell in the first three months of 2009. (Bloomberg)

Japan: Refining hits 10-week high at oil plants
Oil refining in Japan, the world’s third-largest consumer of crude, rose to a 10-week high as producers resume operations after maintenance shutdowns. The nation’s refiners were using more than 75% of capacity in the week ended 17 July, the highest rate since 8 May, according to data from the Petroleum Association of Japan. That compares with this year’s low of less than 62% in the week ended 19 June. (Bloomberg)

EU: ECB says banks tightened credit standards further
European banks continued to tighten credit standards for companies and households in the second quarter as the sovereign debt crisis impaired their access to funding, the European Central Bank said. “The downward trend in the net tightening of credit standards on loans to enterprises, which came to a halt in the first quarter of 2010, was reversed in the second quarter, increasing from 3% to 11%,” the Frankfurt-based central bank said in its quarterly Bank Lending Survey. (Bloomberg)

S. Korea: Current-account surplus widened to a one-year high in June as the global recovery supported demand for the country's cars and semiconductors. The windfall was USD 5.04b, from a revised USD 3.82b in May, the Bank of Korea said. The surplus was the biggest since June 2009. (Source: Bloomberg)

UK: King forecasts no early return to ‘normal’ rate level
Bank of England Governor Mervyn King said there may be a “considerable” way to go before UK interest rates return to “normal” as policy makers debate when to start withdrawing emergency stimulus from the economy. “There will come a point when we will certainly need to ease off the accelerator and return Bank Rate to more normal levels,” King told lawmakers in London. “I look forward to that time because it will probably be a signal that there is a smoother drive ahead, with the economic outlook improving in a durable way. But I fear there is some considerable distance to travel before we can begin to use the word ‘normal’.” (Bloomberg)

US: Durables show investment picking up
Business investment in the US picked up in the second quarter, helping sustain the economic recovery, June data on durable goods showed. Orders for non-military capital equipment excluding aircraft climbed 0.6% last month after jumping 4.6% in May, more than previously reported, figures from the Commerce Department showed in Washington. Sales of such gear, used in calculating gross domestic product, also rose. (Bloomberg)

U.S: Fed's Beige Book says economic recovery slowed in some areas over the past two months, dragged down by commercial real estate and the expiration of a tax credit for homebuyers. "Economic activity has continued to increase, on balance, since the previous survey," the central bank said in its Beige Book business survey, while noting that two of the Fed's 12 districts reported the economy "held steady" and two said the pace of expansion slowed. (Source: Bloomberg)

20100729 1233 Malaysia Corporate News.

RM4.20 per share for MEASAT
In an unusual twist of events, shares of two companies controlled by Malaysian billionaire T Ananda Krishnan - regional satellite network operator MEASAT and conglomerate Tanjong plc - were suspended from trading on Bursa Malaysia Securities yesterday, fuelling rumours of major corporate exercises. The reclusive tycoon holds a 59.56% stake in MEASAT and 30.92% in Tanjong Plc. Ending long time speculation, MEASAT Global Network Systems SB announced yesterday evening a privatization offer for MEASAT Global at RM4.20 cash per share. The offer is conditional upon acceptance from 90% of the nominal value of the shares (excluding those already held by MEASAT Global) and relevant approvals.(Financial Daily)

Khazanah to raise SGD2.65bn for Parkway takeover
Fresh from winning the battle for Singapore’s healthcare group, Parkway Holdings Ltd, state-owned investment arm Khazanah Nasional is looking to raise around SGD2.65bn (RM6.19bn) in bonds and bank loans to help finance its SGD3.5bn takeover of the largest private hospital operator in Asia. Around SGD800m in sukuk will be arranged by OCBC Banking Corp, DBS Group Holdings and CIMB Group Holdings. The sukuk road show is scheduled to be undertaken in Singapore on Monday, with book building to start on Tuesday. (Financial Daily)

George Kent secures RM130m water job
George Kent has secured another water infrastructure project with the award of a RM129.8m contract to construct and complete a 160m milliliters per day water treatmentplant in Kuantan, Pahang. The contract was awarded by the East Coast Economic Region Development Council in an open tender, the company said. The project was scheduled for completion by 12 Aug 2013, which would be 157 weeks from the site possession date of 10 Aug 2010. (Malaysian Reserve)

WCT proposes to issue RM600m bonds with warrants
WCT has proposed an issuance of RM600m nominal value serial fixed rate bonds of up to five years with up to 181m detachable warrants on a “bought deal” basis to primary subscribers. WCT also proposed an offer for sale of the provisional rights to the allotment of up to 181m WCT warrants by primary subscribers at an offer price to be determined to shareholders and entitled senior management of the WCT group of companies. The company said the proceeds from the proposed bonds with warrants would enable it to refinance its existing borrowings, resulting in interest savings for the company. “The proposed exercises will allow the company to lock in financing at a lower effective funding cost, thereby allowing the WCT group to better plan its cash flow requirements,” it said. It said upon exercise of the WCT warrants, the company would obtain additional proceeds to redeem the bonds, finance the working capital requirements of the group in the future and repay borrowings, in addition to strengthening WCT’s capital base. (StarBiz)

PepsiCo renews Permanis’ bottling rights
PepsiCo has extended the rights of C.I. Holdings’s (CIH) wholly-owned subsidiary Permanis to manufacture and sell its beverage brands in Malaysia for 10 years. PepsiCo and C.I. Holdings said in a joint statement that the two parties had signed an exclusive bottling agreement to renew the franchise bottling rights of Permanis. PepsiCo general manager for its South-East Asia business unit, Manu Anand, said the renewal and extension of the agreement showed PepsiCo’s confidence in Permanis as a long-term strategic growth partner for its Malaysian beverage business. (StarBiz)

CIH: Secures 10-year extension to PepsiCo bottling deal. CI Holdings Bhd's (CIH) subsidiary Permanis Sdn Bhd has secured a 10-year extension (until June 30, 2020) of its franchise bottling rights with PepsiCo for the manufacture and sale of the latter?s beverage brands in Malaysia. (Source: The Edge Financial Daily)

GAB: Profits from World Cup. The month-long World Cup was a profitable time for the drinks industry which saw an increase of between 30% and 40% sales for pubs and clubs. GAB invested RM10m to promote its activities during the World Cup and it paid off handsomely. (Source: The Sun)

Markets: SC revokes SJ Asset Management licence. The Securities Commission (SC) has revoked SJ Asset Management Sdn Bhd's (SJAM) licence effective immediately, after investigations found the company had broken rules. SJAM failed to safeguard clients' assets and engaged in deceitful and improper business practices, the SC said. The company was also found to have given the SC false and misleading information. (Source: Business Times)

MAS: Eyes 5% annual revenue growth from charter services. Malaysian Airline System Bhd (MAS) expects a 5% annual growth in the revenue from charter services due to high demand and the availability of resources. The charter services are especially for places that are difficult to get to and which other airlines refuse to service. (Source: The Edge Financial Daily)

MRCB: To raise RM400m for KL Sentral Park. MRCB Sentral Properties Sdn Bhd, a unit of Malaysian Resources Corp Bhd (MRCB), will raise RM400m of debt to finance the development of its latest project called KL Sentral Park. The commercial paper/medium term notes (CP/MTN) programme is arranged by Affin Investment Bank Bhd. The financing, which is being guaranteed by Danajamin Nasional Bhd, is for a period of 7 years. (Source: Business Times)

Steel: Acerinox plans additional EUD251m investment here. Acerinox SA, the world's biggest stainless steel maker, is investing an extra EUD251m (RM1b) for the second phase of its stainless steel production plant in Malaysia. Acerinox?s investment in Tanjung Langsat near Pasir Gudang is the single largest foreign investment in Johor so far, with a commitment to pump in as much as USD1.5b (RM4.8b) into the Johor economy. (Source: Business Times)

20100729 1211 Global Market News.

Asia shares retreat from highs, dollar dips
TOKYO, July 29 (Reuters) - Asian stocks edged down from a three-month high and the dollar eased towards three-month lows  , hit by soft U.S. data that underlined the patchy nature of the U.S. economic recovery.
"Profit-taking is coming to the fore because coupled with worries about the uncertain outlook for the U.S. and European economies, U.S. stocks seem to be peaking," said Yutaka Miura, a senior technical analyst at Mizuho Securities in Tokyo.

NEW YORK, July 28 (Reuters) - World stocks fell, snapping a four-day rally on Wednesday, as weak orders for U.S. durable goods in June and the Federal Reserve's downbeat take on the economy dampened the outlook and drove the dollar lower.
"Earnings have been good, but the overall economy is still sluggish at best and is not coming back as much as we would have hoped," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati.

Earnings boost stocks, euro rises
LONDON, July 28 (Reuters) - World stocks rose for the fifth day running as solid corporate earnings combined with easing fears about financial stability to boost investors appetite for riskier assets.
"Earnings are coming through better than expected," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin. "Banks are better ... having underperformed for some time."

20100729 1209 Soy Oil & Palm Oil Related News.

Soyoil ended higher, following the lead of soybeans, but advances were limited by meal/oil spreading and weakness from crude oil futures. Crude-oil influences soyoil due to its use in making renewable fuels. December soyoil settled 0.28 cents or 0.7% higher at 39.57 cents per pound.(Source:CME)

China Ministry: July Soybean Imports Likely 5.6 Million Tons(Source: CME)
China's soybean imports in July are likely to reach 5.6 million metric tons, the Ministry of Commerce said Wednesday.
The new estimate is 3.6% lower than a commerce ministry estimate earlier this month.
However, it would still be the second-highest monthly import volume so far this year, after last month's record 6.2 million ton intake.
If realized, it would be a 27% increase from the same period last year, based on customs data.
The estimate, published on the ministry's website, is based on reports from importers during the June 16-June 30 period, and the regular forecast is usually lower than the actual import figure, as it doesn't include all cargoes.
The ministry issues the estimates twice a month.

India Soyoil Imports May Slow Down In Next 4 Months - Executive(Source:CME)
India's soyoil imports, after rising sharply in the past few months, are likely to slow in the next four months due to a rise in the premium over palm oil and higher supplies of local crops, a senior industry executive said Wednesday.
"We expect 300,000-500,000 tons of soyoil may come in July-October period," said Srinivaas Sirigeri, managing director of Shakti Enterprises, a Mumbai-based importer.
India's soyoil imports in the first eight months of the marketing year that began Nov. 1 jumped nearly 40% from a year earlier to 914,676 tons, according to data from the Solvent Extractors' Association.
The premium of soyoil over palm oil has risen to $90 per ton from about $40/ton about two months ago, Sirigeri said.
"If the soyoil prices stay at these levels, then imports will gradually decrease," he added.
Indian companies increased their soyoil imports over the past few months after a decline in the premium over palm oil. Soyoil normally commands a premium over palm oil due to its better quality.
The South Asian nation is the world's second-largest edible oil consumer after China and meets more than half of its annual requirement through imports. It imports palm oil mainly from Indonesia and Malaysia and soyoil mostly from Brazil and Argentina.
The country may import a total of 1.3 million to 1.5 million tons of soyoil in 2009-10, Sirigeri said. India imported 989,613 tons of soyoil in 2008-09.
Soybean arrivals in the local market have also increased as farmers are offloading more stocks to raise money required for the new crop sowing, he added.
Soybean sowing in India starts in June and continues through July.

Palm oil steady on output concern, FX weigh
JAKARTA, July 28 (Reuters) - Malaysian crude palm oil was little changed as concerns that rains would slow palm oil output providing support countered expectations of a stronger ringgit and ample supply of other oilseeds weighing on the market.
"The bullish factors are market concern about palm oil output and good demand, at least for the Ramadan offtake," said a trader with a domestic commodities brokerage.

US soymeal demand to slip again in 2010-Oil World
AMSTERDAM July 27 (Reuters) - Soymeal consumption in the United States is set to decline for a third year in the 2009/10 season, while demand is rising in Brazil and Russia, oilseeds analysts Oil World said on Tuesday.
U.S. consumption of soymeal is expected to amount to about 27.6 million tonnes in October/September 2009/10, down from 27.9 million tonnes in the previous season, the Hamburg-based oilseeds analysts said.

Canola oil would qualify for biodiesel mandate-EPA
WINNIPEG, Manitoba, July 27 (Reuters) - Biodiesel made from canola oil would emit 50 percent less greenhouse gas than petroleum diesel fuel, which would make it eligible for the U.S. mandate to increase renewable fuel production, according to the U.S. Environmental Protection Agency (EPA).
EPA data that compares greenhouse gas emissions between biodiesel and conventional diesel, released on Monday, shows canola oil would meet a key eligibility requirement for the U.S. Renewable Fuel Standard program.

Wednesday, July 28, 2010

20100728 1821 FCPO EOD Daily Chart Study.

FCPO closed : 2495, changed : +10 points, volume : lower.
Bollinger band reading : correction upside biased.
MACD Histrogram : weakening, buyer defending position.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2520, 2550 level.
Comment :
Lesser volume participation FCPO closed little higher after tested above resistant level but lack of supportive volume resulted price to closed just 5 points below it. Daily chart wise, market opened lower and closed near the high formed a up bar candle but still lack of supportive volume. Outlook retained a correction range bound upside biased market with potential resumption of upward movement should better volume returned to 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.

20100728 1718 FKLI EOD Daily Chart Study.

FKLI closed : 1356, changed : +0.5 point, volume : lower.
Bollinger band reading : range bound, upside biased.
MACD Histrogram : weakening, buyer defending position.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385 level.
Comment :
Mostly rollover activities FKLI ended the day 1 tick higher with slightly lower volume changed hand. Today daily chart formed another doji bar candle as market traded side way range bound testing support and resistant level without designate direction. Outlook remained unchanged with a side way range bound upside biased 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.

20100728 1302 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1358.5, changed : +3 points, volume : high.
Bollinger band reading : upside biased.
MACD Histrogram : recovering, buyer still defending.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385 level.
Comment :
High volume transaction FKLI closed for lunch at higher ground as market continue to move range bound testing support and resistant level. Hourly chart wise, market still suggesting a upside biased potential market development for the near term.

20100728 1301 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2488, changed : +3 points, volume : low.
Bollinger band reading : side way range bound.
MACD Histrogram : recovering, buyer seems testing market.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2520, 2550 level.
Comment :
Poor trading volume FCPO manage to record small gain for the morning session after market opened lower and traded side way within a tight 22 points range. Hourly chart wise, market tested and closed above middle Bollinger band resistant level with the outlook suggesting a side way range bound reading.

20100728 1023 Global Economic News.

U.S: Confidence slips to five-month low in July. The Conference Board's sentiment index fell to 50.4, below the median forecast of economists surveyed by Bloomberg News and to the lowest level since February this year. (Source: Bloomberg)

U.S: Home prices in 20 cities rose more than forecast in May. The S&P/Case-Shiller index of property values increased 4.6% YoY from May 2009, the biggest year-over-year gain since August 2006. (Source: Bloomberg)

India: Central bank increased a key interest rate as it battles to contain a surge in inflation that's triggered labor strikes and opposition-party organized public protests. The Reserve Bank of India raised the reverse repurchase rate to 4.5% from 4.0% and the repurchase rate to 5.75% from 5.5%, according to a statement from the central bank in Mumbai. (Source: Bloomberg)

S. Korea: Consumer sentiment held at five-month high in July as the nation's economy strengthened and the region weathered global risks. The sentiment index was 112, unchanged from June. (Source: Bloomberg)

Korea - Bank of Korea wants to signal rate rise at June meet
A majority of Bank of Korea board members wanted to flag an imminent rise in interest rates at their June meeting, before increasing borrowing costs this month for the first time since the global crisis. Three out of five members urged Governor Kim Choong Soo to send a stronger signal that rates may start to rise as early as July, according to minutes of the 10 June meeting released by the central bank. (Bloomberg)

Hong Kong: Exports climb more-than-estimated 26.7% YoY in June. Shipments rose to HKD 267.6b (USD 34.4b) after gaining 24.4% YoY in May. (Source: Bloomberg)

South Africa - Sheds jobs, denting economic recovery
South Africa’s unemployment rate, the highest of 62 countries tracked by Bloomberg, was little changed in the second quarter as the economy failed to create jobs, undermining the strength of the recovery. The jobless rate increased to 25.3% from 25.2% in the first quarter, statistics showed. The number of people with work fell by 61,000 to 12.7m. (Bloomberg)

20100728 1007 Malaysia Corporate News.

HeiTech Padu: Secures RM282m RTD project. Heitech Padu Bhd has secured a RM282m contract from the government to undertake an integrated solutions project for the Road Transport Department. The company said on Tuesday, July 27 the project will take 24 months to develop and will have a warranty period of 24 months after completion. (Source: Business Times)

IJM: The Light to contain world-class appeal. A performing arts centre to rival Australia's Sydney Opera House, waterfront retail promenade and an international standard marina are among the attractions property developer IJM Land Bhd will unveil when it launches the second phase of its flagship waterfront "The Light" development in Penang at the end of the year. The proposed iconic arts centre, known as "The Pearl" is expected to boast a seating capacity of 2,000 and is set to be sprawled over 0.8ha. (Source: Business Times)

IPO: Complaint derails Focus Point listing. Malaysia's largest professional eyecare chain, Focus Point Holdings Bhd, had to delay its listing at the eleventh hour after an anonymous complaint about its business. The board of directors believes that the allegations are adequately refuted and that the allegations were made with malicious intent to derail the company's listing plans and damage the group's business operations. (Source: Business Times)

Maybank Investment: Plans to enter Singapore, Indonesia. Maybank Investment Bank Bhd planned to expand its operations to Singapore and Indonesia by June next year, said Maybank CEO Tengku Datuk Zafrul Tengku Abdul Aziz. Maybank Investment hoped to offer services such as corporate finance, Islamic advisory, structured and treasury products in these markets. (Source: The Star)

O&G: Steady crude oil prices spur deepwater projects. Petronas Carigali Sdn Bhd's head of deepwater development Rosli Hamzah said that Transocean Ltd's drillship Deepwater Expedition would arrive in Malaysian waters in September, while the 2nd ship Frontier Phoenix was scheduled to be in by November. Rosli said that Malaysia needed 3 drillships between 2010 and 2015 as deepwater areas will make up for as much as 40% of the country?s oil output in 10 years. (Source: The Star)

PetDag: Expand retail segment, plans RM500m capex. Petronas Dagangan Bhd (PetDag), the domestic marketing arm of Petronas is planning to invest about RM500m in capex for FY ending March 31, 2011 towards expanding its retail segment. The retail and commercial segments contribute around 46% to 47% each to the group's revenue, with 5% coming from the liquefied petroleum gas (LPG). (Source: The Edge Financial Daily)

Kong to PKA: Pay up
Transport Minister Datuk Seri Kong Cho Ha yesterday directed the Port Klang Authority’s (PKA) board to release payment due to the bondholders of the Port Klang Free Zone (PKFZ) project setting aside the port authority’s earlier decision to hold back payment. “ We will pay according to what’s been decided much earlier, according to the schedule that’s been set,” he said after was asked to comment on report that PKA’s board has decided to withhold the final payment of RM222.58m to Free Zone Capital (FZCB) one of the four SPVs established by PKFZ turnkey contractor, Kuala Dimensi SB, for the project . (Financial Daily)

EON Cap to hold EGM on HLB takeover
The board of EON Capital, owner of Malaysia’s seventh largest bank, will ask shareholders to vote on Hong Leong Bank’s RM5.06bn (US$1.6bn) takeover offer on 19 Aug, according to a statement sent to Bursa Malaysia yesterday. The move defies EON Cap’s biggest investor which has threatened to seek RM1.11bn in damages if the deal goes through at the current price. Shareholders are divided over whether to accept an all-cash offer of RM7.30 a share from billionaire Tan Sri Quek Leng Chan’s Hong Leong Bank (HLB). (StarBiz)

M3nergy offer receives over 85% acceptance
Despite differing views on the takeover offer of M3nergy, an overwhelming majority, or over 85% of its shareholders, have accepted Adamus Avenue Sdn Bhd’s offer price of RM1.85 per share. A source close to the deal told Bernama that the offer price must have been deemed to be attractive, fair and reasonable, to compel these shareholders to make the acceptances. And it will be more than a week to go before the 3 Aug deadline for acceptances, he said. The source said this in response to a recent filing by M3nergy to Bursa Malaysia, which said that its board had viewed the offer to be unfair, unreasonable and uncompelling. (StarBiz)

BP head quits over Gulf disaster
BP's vilified chief executive Tony Hayward resigned yesterday as the energy giant announced that the devastating Gulf of Mexico oil disaster will cost USD32.2bn and caused a record quarterly loss. Hayward, whose PR gaffes handling the oil spill made him a target of US fury, will be succeeded by American executive Bob Dudley, who is currently in charge of Gulf clean-up operations. BP said it had made a record USD16.9bn loss in the second quarter and that it will sell USD30bn of assets over the next 18 months as it seeks to streamline operations and return to profitability. (BT)

20100728 0957 Global Market News.

Asian stocks, euro ease on profit-takingSINGAPORE, July 28 (Reuters) - The euro slipped from 11-week highs and Asian stocks marked time  as a recent rally lost steam after a drop in U.S. consumer confidence, while the Australian dollar fell on a sharp slowdown in inflation.
"There will be a few bumps along the way, but the market still has upward momentum. Risk appetite is improving and the optimism is palpable," said Suh Dong-pil, a market analyst at Hana Daetoo Securities.


World stocks hit 2-1/2 mth peak; euro near high
LONDON, July 27 (Reuters) - World stocks hit a 2-1/2 month high while the euro held near a two-month peak versus the dollar as upbeat results from Swiss bank UBS  added to a recent run of strong corporate earnings.
"Expectations are rising for earnings. Companies are guiding full-year forecasts up in spite of concerns about a loss of recovery momentum ... and that is helping to keep these markets reasonably firm," said Mike Lenhoff, chief strategist at Brewin Dolphin.

20100728 0927 Soy Oil & Palm Oil Related News.

Soyoil futures ended lower, succumbing to pressure from adjustments in the meal/oil spread relationship and spillover weakness from crude oil futures. Crude oil influences soyoil due to its use in making renewable fuels. December soyoil settled 0.27 cents or 0.7% lower at 39.29 cents per pound. (Source: CME)

Brazil Soy Sales At 78% Of '09-10 Crop As Of July 23 - Celeres(Source: CME)
Brazilian farmers have sold 78% of the 2009-10 soybean crop as of July 23, local agricultural consultancy Celeres said in a weekly report.
Celeres said in the report issued Monday that Brazil, which is the world's No. 2 soy producer after the U.S., has shown a rise in soybean sales from 76% the week before. Sales are down from 83% at the same time a year ago.
Brazil is expected to have produced a record 68.5 million metric tons of soybeans for the 2009-10 crop season, compared with 57 million tons the previous crop year.
Many producers sold cautiously during the year and recently made new sales during periods of high volatility of the Chicago Board of Trade, Celeres said.
This also coincided with a period in which farmers plan to raise working capital for the upcoming 2010-11 crop season, the report said.
Brazil finished harvesting the 2009-10 soy crop in May.
Farmers in Mato Grosso, Brazil's No. 1 soy-producing state, have sold 94% of their soy as of Friday compared to 93% the week before and steady with 94% a year ago, Celeres said.
Mato Grosso's farmers were the first to start their harvest and took the opportunity to sell earlier than other states.
Parana, the No. 2 soy-producing state, sold 66% of its beans as of Friday compared to 64% the week before and 79% a year earlier, Celeres said.
Rio Grande do Sul, the country's No. 3 soy-producing state, sold 49% of its soy as of July 23 versus 46% the prior week and 57% a year earlier, Celeres said. Rio Grande do Sul is typically one of the last states to harvest and sell its beans.

Palm oil at 1-week low on markets, ringgit
KUALA LUMPUR, July 27 (Reuters) - Malaysian crude palm oil hit a one-week low on Tuesday as investors booked profits on last week's rally, and as soyoil weakened.
"The market is settling into a technical correction after last week's rally and weaker markets generally," said a trader with a foreign commodities brokerage. "The ringgit is also keeping refiners away for the moment."

Analyst cuts Ukraine 2010 rapeseed crop forecast
KIEV, July 27 (Reuters) - UkrAgroConsult agriculture consultancy on Tuesday revised down Ukraine's 2010 rapeseed crop forecast to 1.5 million tonnes from the previous estimate of 1.6 million due to a fall in harvesting area.
Severe frosts followed by a record summer heat have killed about 40 percent of rape crops sown to the 2010 harvest.

Brazil 09/10 soy sales reach 78 pct crop - Celeres
SAO PAULO, July 26 (Reuters) - Brazilian soybean producers have sold 78 percent of the record 68.5-million-tonne 2009/10 crop by July 23, up from 76 percent the week prior, analysts Celeres said on Monday.
Sales of the new crop were still behind the 83 percent sold of the previous crop last year at this time, Celeres said.

Soyoil widens premium to palm as buyers chase cargoes
KUALA LUMPUR, July 27 (Reuters) - Soyoil's premium over Asian palm oil is expected to rise in the second half of 2010 as food and fuel demand run down supplies and fears grow that a prolonged spell of hot weather may hurt the U.S. soy crop.
Strong buying from Asian giants China and India for the festival season starting in August, and aggressive domestic biofuel mandates in the Americas, are swallowing up bumper soy crops in Argentina and Brazil faster than usual.

Tuesday, July 27, 2010

20100727 1827 FCPO EOD Daily Chart Study.

FCPO closed : 2485, changed : -12 points, volume : higher.
Bollinger band reading : correction upside biased.
MACD Histrogram : weakening, buyer profit still taking profit.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2520, 2550 level.
Comment :
Morning profit taking session following by second half session bargain hunting resulted FCPO tested below support levels and recovered up to closed at higher ground. Daily chart wise, reading still shows that market is in correction phase within a upside biased development with possible resumption upward movement.
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.

20100727 1826 FKLI EOD Daily Chart Study.

FKLI closed : 1355.5, changed : +0.5 point, volume : higher.
Bollinger band reading : range bound, upside biased.
MACD Histrogram : , buyer position remained intact.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385 level.
Comment :
Increased volume half point higher FKLI traded range bound testing support and resistant level and closed right at the middle. Daily chart reading suggesting a side way range bound upside biased market 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 or strength with quick cut loss and profit target.

20100727 1309 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1351.5, changed : -3.5 points, volume : high.
Bollinger band reading : side way rage bound little upside biased.
MACD Histrogram : fall lower, buyer taking profit.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385 level.
Comment :
FKLI eased little lower in high volume transaction as buyer tempted to secure profit after market opened higher and push price to lower ground plus accelerating rollover activities. Hourly chart reading suggesting market to trade side way range bound little upside biased.

20100727 1300 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2444, changed : -29 points, volume : moderate.
Bollinger band reading : downside biased.
MACD Histrogram : falling, buyer closing position.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
FCPO continue to retrace lower in moderate volume traded following overnight correction soy oil futures prices.
Hourly chart wise, market opened gap lower and continue head south tested and break below 2 support levels and reached the lower Bollinger band level for lunch break. Reading recorded a downside biased market development for the near term testing lower support level.

20100727 0926 Global Economic News.

Japan: Export growth slackens
Japanese exports continued to rise in June on shipments to Asia but the pace of growth was the slowest this year amid signs that recovery may be losing steam as global demand falls. "We previously saw a robust, Vshaped recovery in exports after the financial crisis. Now the speed of the recovery is tapering off," said Atsushi Kamio, economist at the Daiwa Research Institute. (BT)

US: Home sales recover strongly
Sales of new US single-family homes rebounded strongly in June from the prior month's record low, driving the number of houses on the market to its lowest level in nearly 42 years. Sales jumped 23.6% to a 330,000 unit annual rate from a downwardly revised 267,000 units in May. (BT)

Singapore: Factory output rises at slowest pace in four months
Singapore’s industrial production rose at the slowest pace in four months in June as pharmaceutical and electronic manufacturers made fewer goods, suggesting demand may ease as the global recovery cools. Output at factories, which accounts for about a quarter of the economy, climbed 26.1% in June from a year earlier, after a revised 58.4% surge in May. (Bloomberg)

South Korea: Construction shrinks as economy grows
South Korea’s construction industry had its biggest annual contraction since at least 2008 in the second quarter, deepening a dilemma for policy makers faced at the same time with a sustained expansion in the broader economy. Construction shrank 0.8% over the three months through June compared with the prior quarter, the third drop in four quarters, and 0.5% from a year ago (Bloomberg)

India: May raise rates as higher prices spark protests
India’s central bank is likely to raise interest rates for the fourth time since March after a strike to protest rising prices brought much of the nation to a halt this month. The Reserve Bank of India will probably increase its reverse repurchase rate by a quarter-point to 4.25%. (Bloomberg)

Australian: Inflation probably quickened, stoking rates pressure
Australia’s annual inflation rate probably accelerated above the top of the central bank’s target range last quarter, increasing pressure on policy makers to boost borrowing costs during a federal election campaign. The consumer price index rose 1% in the quarter for an annual gain of 3.4%. (Bloomberg)

Global: Economy may slow to 3.25% from 4.7% average
The new normal for the world economy may be arriving as the US, Europe and China all decelerate simultaneously. After policy stimulus and inventory-rebuilding pulled the major economies out of recession with 5% growth in the first quarter, they are slouching toward a weaker expansion, even as they show signs of dodging a double-dip. Global growth may average 3.25% to 3.5% in the next three to five years. (Bloomberg)

20100727 0925 Malaysia Corporate News.

CIMB: Shareholders approve acquisition of 19.67% stake in CIMB Niaga. CIMB had received approval from its shareholders to acquire 19.67% stake in PT Bank CIMB Niaga TBK (CIMB Niaga) for RM1.9b from Khazanah Nasional Bhd via the issuance of new shares. The acquisition will increase CIMB stake in CIMB Niaga from 78% to 98%. (Source: The Star)

Kencana: KM1 to boost Kencana's earnings. Kencana Petroleum Bhd's USD150m (RM478.5m) acquisition of the remaining 75% of oil rig KM1 will be completed by the 1st week of August and will contribute positively to the company's bottom line immediately. The acquisition gives Kencana full ownership of KM1 which is currently chartered on a 5 year, RM827m Petronas drilling contract. This contract accounts for about a third of Kencana's existing RM2.4b order book. (Source: The Edge Financial Daily)

Kenmark: Stock staring at Aug 9 suspension. Beleagured Kenmark Industrial Co (M) Bhd said it was very likely that its stock will be suspended on August 9 as it sees no way how the company would be able to furnish its audited financial statements for the 2010 fiscal year within the time required by Bursa Securities. (Source: Business Times)

F&N Holdings: Kirin to buy a stake in parent Fraser & Neave from Temasek. Japan's Kirin Holdings will buy a 14.7% stake in beverage and property conglomerate F&N from Singapore state investor Temasek Holdings for USD953m (RM3.05b) to accelerate its expansion in Asia. Kirin has spent nearly USD5b on acquisitions in the past 2 years to diversify its operations and grow outside its saturated home market of Japan, where it vies for the top spot in beer sales with Asahi Breweries. (Source: The Edge Financial Daily)

MAHB: Inks pact on China airport jobs. Malaysia Airports Holdings Bhd (MAHB) has sealed an initial pact to help provide airport operation, management and technical consultancy for the Yongzhou Lingling Airport in Hunan province and other airports in China. The group signed a memorandum of understanding with Nagamas Enterprise (HK) Ltd (NEL) to explore the possibility of providing the services. (Source: Business Times)

PKA won't pay
The Port Klang Authority (PKA) is set to hold back its final payment of RM222.58m to Free Zone Capital (FZCB), one of the four special-purpose vehicles (SPVs) established by Port Klang Free Zone (PKFZ) turnkey contractor Kuala Dimensi SB (KDSB) to raise funds from the market. Sources said the PKA board had decided not to make the final payment to FZCB in view of its legal suit against KDSB, with a claim totaling about RM1.4bn. (Financial Daily)

Khazanah wins bid for Parkway
Khazanah Nasional has emerged victorious in the battle for control of Asia’s largest hospital chain Parkway Holdings Ltd. This follows the exit of Fortis Healthcare Ltd, who was also seeking to strengthen its foothold in the regional healthcare market. Yesterday, Fortis told the Singapore Stock Exchange that it had accepted Khazanah subsidiary Integrated Healthcare Holdings Ltd’s higher cash offer of SGD3.95 (RM9.25) per share and said it would divest its entire stake in Parkway to the Malaysian government arm. (Financial Daily)

Mudajaya slumps on SC probe report
Shares of power plant builder Mudajaya Group fell for a second day as jittery investors booked in profits from recent sharp gains on a news report that the company had been probed by the Securities Commission (SC). Mudajaya told the exchange yesterday it “has not been directly queried by the SC” but assured investors that “it is more than willing to extend its full cooperation” if queried by the regulator. “The board of Mudajaya is not aware of the nature of the complaint about the company by anyone whosoever,” it said in reply to the exchange’s query on the report published over the weekend. (StarBiz)

GPRO plans to acquire precision casting AB Tech for RM140m
GPRO Technology plans to acquire precision casting and injection moulding specialist AB Technology SB (AB Tech) at an indicative price of RM140m. GPRO said the proposed acquisition would be fully satisfied by the issuance of new GPRO shares at an issue price of 10 sen. Yesterday, GPRO signed a heads of agreement to acquire AB Technology from Grand Intergroup SB and Whatever Investment Pte Ltd. (Financial Daily)

Leong Hup plans RM30m broiler farm
Integrated poultry company Leong Hup Holdings plans to spend up to RM30m this year to set up a broiler farm in the Bio Desaru Food Valley project in the Kota Tinggi district. Executive director Tan Sri Francis Lau Tuang Nguang said the farm would be located on 72.84ha dedicated for poultry farming activities within the 3,642.17ha Bio Desaru Food Valley, the first big-scale organic food farm in the country. “We are investing between RM20m and RM30m in the farm, which will have the capacity to produce 500,000 to over one million fowls within the next three years,’’ he said. Like other chickens reared in Leong Hup’s farms nationwide, the birds at the Bio Desaru Food Valley farm would be bred in broiler houses, Lau said. (StarBiz)

B-Retail IPO oversubscribed
Berjaya Corp (BCorp) said that as at the closing date of the initial public offering of Berjaya Retail (B-Retail) at 5pm on 22 July, applications for the shares by BCorp minority shareholders were oversubscribed by 17.52 times. It told Bursa Malaysia that a total of 7,562 applications for 55.57m 50 sen shares were received for the 3m shares reserved for applications by the minority shareholders. (StarBiz)

KBB under PN1 after defaulting payments on RM16m debts
KBB Resources has been designated as an affected listed issuer pursuant to Practice Note No 1/2001 (PN1) of the main market listing requirements of Bursa Malaysia Securities due to repayment default. KBB’s board of directors said the company and seven of its wholly-owned subsidiaries were in default of 18 banking facilities as they had not been able to make the repayments. The total amount owed to a number of financial institutions, both local and foreign, was about RM16.1m as of 21 July 2010. KBB said it had initiated a debt restructuring plan and had submitted an application to the Corporate Debt Restructuring Committee (CDRC) in respect of the restructuring scheme. (Financial Daily)

20100727 0909 Soy Oil & Palm Oil Related News.

Palm ends 1 pct down after key exports data
KUALA LUMPUR, July 26 (Reuters) - Malaysian crude palm oil ended 1 percent lower, after data showed a drop in palm oil exports in the first three weeks of July, indicating weak overseas demand.
"The exports are not very supportive to the current market, players are watching external factors that are related to the weather," said a trader with a Kuala Lumpur-based foreign brokerage.

20100727 0908 Global Market News.

Asian stocks rise on US data, euro inches up
HONG KONG, July 27 (Reuters) - Asian stocks rose to their highest in two and a half months, boosted by solid U.S. housing data, while the euro inched up towards two-month peaks on relief over stress tests on European banks.
"The environment is gradually improving, after U.S. new home sales data and European banks' stress tests, but investors are still not entirely convinced that the recovery is solid," said Soichiro Monji, chief strategist at Daiwa SB Investments.

NEW YORK, July 26 (Reuters) - Global stocks rose on Monday after U.S. data showed a pick-up in new home sales, reviving hopes for improvement in a tepid economic recovery, while the euro firmed against the dollar on increased risk tolerance.
"There was a big revision down in the prior month, but then obviously a rebound this month. We're still at these trough levels, which we've been bouncing along. It's a good sign that we did see an increase after the tax credit expired," said Michael O'Rourke, chief market strategist at BTIG LLC, in New York.

US trims 2010 deficit forecast, economy faces headwinds
WASHINGTON, July 23 (Reuters) - The Obama administration warned on Friday the U.S. economy had encountered "strong headwinds" and the country's fiscal challenge remained grave, but it lowered an estimate for the budget deficit this year.
In broad terms, no major changes were made in the updated outlook for the country's fiscal path over the next decade for the country's deficits and debts, which the White House readily admit remain too high.

US manufacturers continue streak of profit beats
BOSTON/NEW YORK, July 23 (Reuters) - Honeywell International Inc  and Ingersoll-Rand Plc  raised their 2010 profit forecasts and General Electric Co  boosted its dividend in moves that underlined U.S. manufacturers' growing confidence in the economic recovery.
Honeywell boosted its profit forecast for the rest of 2010, saying it expected to see organic sales -- excluding the effect of acquisitions and currency fluctuations -- to accelerate through the second half.

Seven banks fail Europe test, credibility questioned
LONDON/MADRID, July 23 (Reuters) - Just seven European banks failed a health check and were ordered to raise their capital by 3.5 billion euros ($4.5 billion), much less than expected, confirming fears the continent's long-awaited stress test was too soft.
Results of the test of how 91 banks in 20 countries would cope with another recession was released on Friday in a bid to restore investor confidence after the Greek debt crisis spooked markets earlier this year. But it fell on deaf ears.

Monday, July 26, 2010

20100726 1823 FCPO EOD Daily Chart Study.

FCPO closed : 2473, changed : -25 points, volume : lower.
Bollinger band reading : correction upside biased.
MACD Histrogram : turned downward, buyer profit taking continue.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2520, 2550 level.
Comment :
Profit taking activities continue to take place on FCPO that closed lower in lesser volume traded following both cargo surveyor announced a negative export figures. Daily chart shows that market opened and tested higher ground but immediately face selling pressure pushing price down all the way to closed almost at the low of the day. But nevertheless, market is still having a correction range bound upside biased market outlook.
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.

20100726 1748 FKLI EOD Daily Chart Study.

FKLI closed : 1355, changed : +1 point, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : , buyer position remained intact.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385 level.
Comment :
Marginal gain FKLI traded within a 8.5 point range market in better volume transaction after regional market having mixed development and also switching month rollover activities. Daily chart wise, market opened and tested higher but softening downward with the outlook still suggesting a upside biased market development.
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.

20100726 1442 Global Economic News.

China: Banks said to see risks in 23% of USD1.1trn loans
Chinese banks may struggle to recoup about 23% of the USD1.1tn they have lent to finance local government infrastructure projects, according to a person with knowledge of data collected by the nation’s regulator. About half of all loans need to be serviced by secondary sources including guarantors because the ventures can’t generate sufficient revenue. (Bloomberg)

Taiwan: Industrial output increased 24.3% in June
Taiwan’s industrial production rose for a 10th straight month in June on increased orders for computers, mobile phones and television screens. Output climbed 24.3% from a year earlier, after rising a revised 31.0% in May. The global recovery spurred exports and factory production, sending Taiwan’s jobless rate to its lowest level in 18 months. (Bloomberg)

South Korea: Economy posted 1.5% expansion in second quarter
South Korea’s economy grew 1.5% in the second quarter from the previous 3 months, the central bank said in Seoul today. From a year earlier, GDP rose 7.2%. (Bloomberg)

India: May raise interest rates as higher prices spark protests
India’s central bank is likely to raise rates for the 4th time since March after a strike to protest rising prices brought much of the nation to a halt this month. The Reserve Bank of India will probably increase its reverse repurchase rate by a quarter point to 4.25%, all 20 forecasts in a Bloomberg News survey showed. (Bloomberg)

EU: Shows strength as UK, German indicators top forecasts
The British economy grew at the fastest pace in 4 years in the second quarter and German business confidence surged to a 3-year high this month, indicating Europe’s recovery may be stronger than forecast. UK’s GDP rose 1.1% in the 3 months through June, almost twice as fast as the 0.6% gain predicted by economists. In Munich, the Ifo institute said its business climate index, based on a poll of 7,000 executives, jumped to 106.2 this month, confounding expectations of a decline. (Bloomberg)

US: Geithner says companies ‘cautious’ about hiring
Treasury Secretary Timothy F. Geithner said US companies scarred by the financial crisis remain very “cautious” and are trying to get more productivity from current employees before hiring new ones. Job growth is “not as fast as we need” and employers “are still cautious, still very cautious,” he said in an interview. (Bloomberg)

Germany: Business confidence unexpectedly surged to a three-year high in July after exports boomed and economic growth accelerated. The Ifo institute said its business climate index, based on a survey of 7,000 executives, jumped to 106.2, the highest since July 2007, from 101.8 in June. (Source: Bloomberg)

Brazil: Fixed-rate bonds are beating inflation-linked debt for a fourth straight month , the longest streak since 2005, after central bankers confirmed investor expectations that consumer price increases are slowing. Fixed-rate bonds gained 1.2% this month, compared with a 0.9% return for notes linked to the IPCA index. (Source: Bloomberg)

Singapore: Consumer prices rose for a sixth month in June as an increase in car and electricity prices pushed transportation and housing costs higher. The consumer price index climbed 2.7% YoY. (Source: Bloomberg)

Vietnam: Inflation slows in July . Consumer prices rose 8.19% YoY this month compared to 8.69% YoY in June. (Source: Bloomberg)

20100726 1439 Malaysia Corporate News.

Bina Puri: Poised for more JVs with UEM group. Sources said Bina Puri was now close to signing a JV agreement with Iskandar Investment Bhd (IIB) to develop some 7 acres (RM500m) mixed development in Medini, one of the 5 flagship zones of Iskandar Malaysia. Bina Puri and IIB would form a SPV with them holding 80% and 20% respectively. (Source: The Edge Financial Daily)

Bland: To launch projects worth RM500m this year. Berjaya Land Bhd (BLand) will launch new projects worth more than RM500m this year to take advantage of pent-up demand for housing in the Klang Valley. The group has about 10 ongoing developments worth some RM1b and it will launch more projects next year (Source: Business Times)

Genting Malaysia: Genting NY still in running for racino deal. Genting Malaysia Bhd subsidiary Genting New York LLC is still in the running for the bid to develop and operate a video lottery facility at New York City?s Aqueduct Racetrack. Last Friday, New York Supreme Court Judge Barry Kramer ruled that the New York State Division of Lottery can continue to evaluate the final remaining contender, Genting New York, for at least one more week. (Source: The Star)

Plantation: Mardec plans South-East Asia expansion. Rubber processor Mardec Bhd plans to expand its overseas investments via new rubber processing plants and acquisition of rubber plantations in South-East Asia, said CEO Khalid Bahsoon. Mardec had allocated a capital expenditure of about RM150mil for its investments in Malaysia and overseas in the next 5 years. (Source: The Star)

Ports: Transport Minister urged to resolve congestion at NBCT. The Penang government has called on Transport Minister Datuk Seri Kong Cho Ha to resolve container cargo congestion at the North Butterworth Container Terminal (NBCT). Chief Minister Lim Guan Eng urged Kong to intervene and appoint expert advisers to the Penang Port Commission (PPC) and Penang Port Sdn Bhd (PPSB) to look into the problem. (Source: The Star)

Government sets up RM20bn fund for high impact projects
The Government has set up a special fund with an allocation of RM20bn to implement more than 50 high impact projects on government-owned land under the 10MP. Deputy Finance Minister Datuk Dr Awang Adek Hussein said the fund was to facilitate the participation of private companies in investing into the projects concerned which involves 1000-ha of government land. The areas already identified include Sungai Buloh in Selangor and Sungai Besi, which would be developed as a new economic growth centre and the most modern city after Kuala Lumpur. The projects to be developed include office complexes, administration centres, light rail transit and monorail. (Malaysian Reserve)

MISC to sell 25% of MMHE under proposed IPO
MISC will sell 408m shares, or a 25.5% stake, of its unit Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) under a proposed IPO. The IPO will involve the sale of 146m shares to institutional investors and another 262m shares of MMHE to the public, including MISC shareholders, according to a filing by MISC to Bursa Malaysia on 23 July. The proposed IPO is expected to be completed by the fourth quarter of 2010. MMHE provides heavy engineering and marine services mainly to the oil and gas sector, including marine conversion and repair service from its yard in Pasir Gudang, Johor as well as in Turkmenistan. (Malaysian Reserve)

Sarawak Energy is looking at RM6bn but Govt tags it at RM8bn
Negotiations for the purchase of the 2,400MW Bakun Dam project have come to a dispute over what its cost should entail. While the Federal Government is said to be eyeing an indicative price of RM8bn, Sarawak Energy Bhd (SEB) is looking at just RM6bn. “Nothing is in writing yet,’’ said an industry source. “The parties are just looking at an indicative price to build the models for negotiations under both the purchase and leasing scenarios.’’ Sarawak Hidro Sdn Bhd, the owner of Bakun Dam, has estimated the final cost of the project at RM7bil. In fact, the model studies may use the indicative price of RM8bn if capital and many other costs are included; it can be just RM5bil if certain costs are excluded. (StarBiz)

Offer for NSTP shares till 6 Aug
Media Prima Bhd clarified in a statement to Bursa Malaysia that its takeover offer to acquire shares in The New Straits Times Press (M) Bhd is still open for acceptances until 5pm on 6 Aug. It denied reports saying the offer was completed on 22 July. (StarBiz)

Funding boost for highways
A quarter of the RM20bn Facilitation Fund will be used to help build up to seven new highways during the 10th Malaysia Plan. The fund, announced under the 10MP in June, was meant to attract at least RM200 billion worth of private sector investments over 2011-2015. "RM5bn we're putting aside for land acquisition. Acquiring land is also part of the facilitation," said Datuk Dr Ali Hamsa, director general of the Public-Private Partnership Unit (3PU). Some of these highways are extensions to existing highways like the North-South Expressway (NSE) while some will be completely new ones. One will connect Paroi to Senawang in Negri Sembilan and onwards to KL International Airport, which will be more than 50km. Another major new highway is called the central spine, a new highway spanning the length of Peninsular Malaysia. But unlike the NSE or the East Coast Highway, it will run in the centre of the Peninsula from Kota Baru in Kelantan, down to Simpang Pelangai in Negri Sembilan. (BT)

Approach of La Nina to see CPO prices rise
Malaysian crude palm oil (CPO) prices are set to rise in the near to medium term as heavy rains are expected to lower production, prevent workers from harvesting and cause the stockpile to dip. The last time La Nina hit Indonesia and Malaysia, the world's top two palm oil producers, was in 2007, wreaking floods that disrupted harvesting and transport of the commodity. It saw CPO prices surge to RM4,300 a tonne in March 2008. CPO prices are currently hovering around the RM2,400 and RM2,500 a tonne level. Felda Global Ventures Holdings Sdn Bhd president and chief executive officer Datuk Sabri Ahmad said that a strong La Nina will have a significant impact on this year's production, which is expected to be flat again. "During the second half of this year, CPO prices should be higher at RM2,600 and RM2,700 a tonne," Sabri told Business Times in a telephone interview. Academy of Sciences fellow Dr Ahmad Ibrahim said that oil palm trees generally love water. However, too much water can damage the fruit and affect production level. (BT)

20100726 1328 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1355, changed : +1 point, volume : high.
Bollinger band reading : range bound, upside biased.
MACD Histrogram : weakenning, buyer taking profit plus roll over .
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385  level.
Comment :
Last Friday Dow Jones positive closed lead FKLI to opened gap up higher and test higher followed by profit taking selling pressure plus switching months activities pushed price consolidate lower in better volume changed hand. Hourly chart reading suggesting a correction range bound upside biased market for the near term testing support level at middle Bollinger band.

20100726 1318 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2505, changed : -21 points, volume : lower.
Bollinger band reading : correction upside biased.
MACD Histrogram : turned downward, buyer continue to take profit.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2520, 2550 level.
Comment :
FCPO opened higher and traded side way range bound but still manage to record marginal gain for the first session in low volume transaction despite ITS export data show a drop in export for the period of 1~25 July 2010. Hourly chart shows that market continue to have correction testing middle Bollinger band support level with the outlook having a side way range bound upside biased reading.

20100726 1302 FCPO Weekly Chart Study.

Weekly Close: 2498, High: 2535, Low: 2424, Range: 111 points
FCPO closed : 2498, changed : +49 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : recovering, buyer seems getting aggressive to gain control.
Support : 2450, 2400, 2350 level.
Resistant : 2500, 2540, 2600 level.
Comment :
FCPO penetrated above middle Bollinger band to register another week of gain with continue improving volume transacted. Despite the 2 weeks surge, weekly chart outlook still recommending a side way range bound market development in the near term.

20100726 1140 FKLI Weekly Chart Study.

Weekly Close: 1354, High: 1355, Low: 1331, Range: 24 points.
FKLI closed : 1354, changed : +13.5 points, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : continue recovering, buyer defending.
Support : 1350, 1335, 1310 level.
Resistant : 1360, 1375, 1385 level.
Comment :
Upward momentum remained firm on FKLI that gained higher week on week but with diminishing volume changed hand. Weekly chart reading still suggesting a upside biased potential market but the questionable issue here will be lack of volume.

20100726 0949 Global Market News.

Asian shares, euro rise after stress testsSINGAPORE, July 26 (Reuters) - Asian shares rose and the euro extended gains on Monday as solid U.S. corporate earnings and strong euro zone data offset growing scepticism that stress tests on European banks were not strict enough.
"With the results of the stress tests, which had been the market's big focus, out in the open, downward factors seem to have run their course for now, even though there's criticism that those tests might have been too easy," said Hiroichi Nishi, general manager of equity marketing at Nikko Cordial Securities.  


Euro, sterling up on data; stress tests awaited
LONDON, July 23 (Reuters) - The euro rose  after a survey showed German business sentiment posted a record jump in July to its highest level in three years, and corporate results lifted stocks ahead of eagerly awaited European bank stress test results.
"We expected an increase but we didn't expect this. The German economy is running really strong at the moment," said Ralph Solveen at Commerzbank.

20100726 0946 Soy Oil & Palm Oil Related News.

Commodity funds bought an estimated 1,000 soymeal contracts and 2,000 soyoil contracts. Weakness in crude oil kept a lid on soyoil, a trader says. Dec soymeal closed up $1, or 0.4%, at $283.30 per short ton. Dec soyoil rose 0.06 to 39.76 cents per pound.(Source: CME)

India Edible Oil Prices Rise On Firm Overseas, Poor Rains In Key State.(Source: CME)
Edible oil prices in India rose during the week ended Friday, tracking mostly firm overseas markets and due to poor rains in the major soybean producing state of Madhya Pradesh.
Crude palm oil was at INR39,500 a metric ton Friday, up from INR37,500 a week earlier, while the price of refined soyoil increased to INR46,200 a ton from INR44,500. The price of refined, bleached and deodorized palm olein rose to INR43,000 a ton from INR41,500.
Soy futures on the Chicago Board of Trade were higher because of tight supplies, demand and the uncertainty of weather during the U.S. soybean crop's critical development phase. Malaysian crude palm oil futures gained on increased demand as Asian countries gear up for major festive periods.
India, the world's second-largest edible oil consumer after China, mostly tracks overseas market as it imports more than half of its annual edible oil requirement.
Physical market prices were firm as farmers held back stocks in anticipation of a further rise in prices, said Badruddin Khan, an analyst with Angel Commodities.
So far in the monsoon season, rainfall in Madhya Pradesh has been about 30% below the 50-year average, according to the India Meteorological Department.
"Anticipation of a slow pace of sowing in coming days due to low rains in Madhya Pradesh also provided support to bulls for the short term," said Khan.
Although total sowing of oilseeds was higher as of July 22, soybean area was lower due to weak rains, traders said.
Sowing of oilseeds in India rose to 12.95 million hectares as of July 22 from 12.39 million a year earlier, government data showed. It didn't provide the breakup for different oilseeds.
Soybean sowing in India starts in June and continues through July.

Palm oil ends lows on weaker exports; weather eyed
KUALA LUMPUR, July 23 (Reuters) - Malaysian crude palm oil fell 0.8 percent  on expectations of lower export data next week although losses were limited by concerns that heavier rains may curb output growth.
"Exports could weaken a little due to the recent run-up in the cash market and some players are taking profits on weaker crude oil prices globally," said a trader with a foreign brokerage.

Soybean sowing down 3.8 pct in India's Madhya Pradesh
BHOPAL, India, July 23 (Reuters) - Soybean sowing in India's largest producer Madhya Pradesh state was down by 3.8 percent by July 19 as patchy rains delayed sowing operations, a senior government official told Reuters.
Soybean acreage in the state stood at 4.78 million hectares on July 19, down from 4.97 million hectares in the same period a year ago, said H.P. Bamania, additional director at the state's farm department.

Friday, July 23, 2010

20100723 1828 FCPO EOD Daily Chart Study.

FCPO closed : 2498, changed : -21 points, volume : lower.
Bollinger band reading : correction upside biased.
MACD Histrogram : turned downward, buyer continue to take profit.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2520, 2550 level.
Comment :
Profit taking FCPO ease lower in lower volume traded ahead of the weekend after opened higher. Daily chart wise, market is currently having correction within a upside biased reading market development.
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.

20100723 1818 FKLI EOD Daily Chart Study.

FKLI closed : 1354, changed : +11.5 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : resume upward, buyer position remained intact.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385  level.
Comment :
Slightly improved volume FKLI closed near the high which is also the year high after positive sentiment market development regionally. Daily chart market started to trade quietly but the afternoon session last hour buying activities accelerate pushing price higher right until closing triggered testing market seller to cover short position. Technical reading wise, market break new high boldly with outlook suggesting further upside biased potential market. The only issue here is the lack of volume participation.
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.

20100723 1306 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1347 changed : +4.5 points, volume : low.
Bollinger band reading : side ways upside biased.
MACD Histrogram : rising higher, buyer defending.
Support : 1345, 1337, 1330 level.
Resistant : 1350, 1360, 1375 level.
Comment :
Another low participation volume range bound FKLI that traded higher following a firmer overnight U.S. and regional market development. Hourly chart wise market open higher and traded side way range bound as buyer seems insist to defend their position no letting any chance for seller to take advantage of. Reading is suggesting a side way range bound upside biased market in the near term.

20100723 1257 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2514, changed : -5 points, volume : moderate.
Bollinger band reading : range bound correction upside biased.
MACD Histrogram : weakening,  buyer taking profit.
Support : 2500, 2470, 2450 level.
Resistant : 2520, 2550, 2570 level.
Comment :
FCPO ease lower marginally after past few days of rally in moderate volume transaction as buyer decide to book in partial profit. Hourly chart wise, market opened higher after crude oil and soy oil overnight rally but facing porfit taking selling pressure pushing price downward and current having a pullback correction. Outlook suggesting a range bound correction upside biased market reading.

20100723 1127 Local & Global Economic News.

Malaysia: Higher inflation seen in second half
Subsidy cuts will drive consumer prices higher in the 2H of the year, but the rise in inflation will be countered by the strong ringgit and positive trade figures, economist said. Official numbers showed Malaysian consumer prices rose 1.4% during 1H 2010. For the full year, inflation is officially projected to rise by between 2% and 2.5%. (StarBiz)

Malaysia: Foreign reserves at USD94.8bn
Malaysia’s international reserves was flat at USD94.8bn (RM305.26bn) on 15 July compared to 30 June, central bank data showed. The reserves were enough to finance eight months of retained imports and is 4.4 times the short term external debt. (Financial Daily)

Indonesia: Indonesian parliament OKs Nasution as central bank chief
Indonesia’s parliament approved the appointment of Darmin Nasution as central bank governor, a move seen as positive for the country’s reform drive and for bonds, stocks and the currency. Nasution has maintained the central bank’s key interest rate at a record low of 6.5% to aid bank lending and the economy, driving strong foreign buying at the short end of the bond curve and pushing stocks to a record high. (Financial Daily)

China: Economist see strong growth, no second stimulus
China is expected to maintain strong growth in the rest of this year and there is no need for second stimulus, government economists said. The State Information Centre forecast economic growth of 9.5% this year, which would be close to the average for the past 30 years and reflect China’s reasonable growth potential. (Bloomberg)

South Korea: Growth likely ’outperformed,’ adding pressure on rates
South Korea’s economy probably grew for a sixth straight quarter in the three months to June, adding to evidence that Asia’s fourth-largest economy is withstanding risks to the global recovery. Gross domestic product grew 1.3% in the second quarter from the prior three months, when it gained 2.1%, according to the median of seven estimates in a Bloomberg News survey. (Bloomberg)

EU: Europe consumer confidence rises more than forecast
European consumer confidence improved more than economists forecast in July amid signs the region’s sovereign-debt crisis is easing. An index of consumer sentiment in the 16-nation euro area increased to minus 14.1 from minus 17.3 in June, the Brussels- based European Commission said. That’s the highest since May 2008. Economists had projected a July reading of minus 17, according to the median of 21 estimates in a Bloomberg survey. (Bloomberg)

EU: Europe’s services, manufacturing growth accelerates
Growth in Europe’s services and manufacturing industries unexpectedly accelerated in July as concern over the sovereign-debt crisis eased and an increase in global trade spurred exports. A composite index based on a survey of euro-area purchasing managers in both industries rose to 56.7 from 56 in June, London-based Markit Economics said. Economists had projected a drop to 55.5, the median of 18 estimates in a Bloomberg survey showed. (Bloomberg)

E.U: Industry orders unexpectedly rise in May, led by capital goods. Orders in the 16-nation euro area rose 3.8% MoM from April, when they gained 0.6% MoM. In the year, industrial orders jumped 22.7% YoY. (Source: Bloomberg)

U.K: Retail sales rose more than forecast in June as the World Cup tournament stoked purchases at electrical goods shops and department stores. Sales climbed 0.7% MoM. (Source: Bloomberg)

US: Sales of existing homes fell in June
Sales of US previously owned homes in June dropped less than forecast, sustained by a backlog of deals that will dry up when a government credit expires. Purchases slipped for a second month, falling by 5.1%. Transactions will be “very low” in coming months as the federal incentive ends, the National Association of Realtors’ chief economist, Lawrence Yun, said in a news conference. (Bloomberg)

US: Index of US leading economic indicators fell 0.2%
The index of US leading indicators fell 0.2% in June, the second decline in three months, signaling the world’s largest economy will cool. Federal Reserve Chairman Ben S. Bernanke repeated his forecast for a “moderate” pace of growth even as he said the outlook remains “unusually uncertain.” Recent reports on housing, retail sales and the labor market have pointed to weakness in the economy as the second half begins. (Bloomberg)

US: New US jobless claims up
New jobless claims jumped in the US by the most since February, reversing the previous week's sharp decline. The rise is partly a result of seasonal factors but also reflects the job market's weakness. New claims for unemployment insurance jumped by 37,000 to a seasonally adjusted 464,000, the Labour Department said. (BT)

Brazil: Signals rate increases to end as growth cools. The bank's board, led by Henrique Meirelles, increased the benchmark rate by a half-point to 10.75%. (Source: Bloomberg)

Taiwan: Unemployment rate fell to 18-month low in June , the lowest level in 18 months as a recovery in exports prompted manufacturers to hire. The seasonally adjusted rate declined to 5.20% last month from 5.22% in May, the statistics bureau said in Taipei. (Source: Bloomberg)

Commodities: Heating up. This year is shaping up to be the hottest year on record for the world. Unusual weather patterns are creating havoc for global agriculture production, damaging crops and sending agricultural commodity prices soaring. Crude palm oil futures surged 2.5% yesterday to a 2-month high of RM2,519 per tonne. (Source: The Edge Financial Daily)