Monday, August 30, 2010

20100830 1823 FCPO EOD Daily Chart Study.

FCPO closed : 2570, changed : +28 points, volume : lower.
Bollinger band reading : correction side way range bound.
MACD Histrogram : recovering, seller closing position.
Support : 2570, 2550, 2520 level.
Resistant : 2600, 2620, 2650 level.
Comment :
FCPO ended higher in decreasing volume changed hand after opened above and tested resistant turned support and at 2550 and closed right at 2570 level. Daily chart formed a longer lower part shadow doji bar candle in between lower and middle Bollinger band with the outlook turned into a side way range bound market 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.

20100830 1822 FKLI EOD Daily Chart Study.


FKLI closed : 1424, changed : +10 points, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : rising higher, buyer riding the bull.
Support : 1405, 1395, 1385 level.
Resistant : 1425, 1445, 1470 level.
Comment :
FKLI rise for the 3rd consecutive day with lesser volume traded break new high again after touched resistant level and closed little below it. Another wide range up bar candle formed on daily chart along with the turning upward upper Bollinger band. Reading remained unchanged with an 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.

20100830 1321 FKLI Mid Day Hourly Chart Study.

FKLI closed(Sep 2010) : 1425.5, changed : +13 points, volume : low.
Bollinger band reading : upside biased.
MACD Histrogram : weakening, mild profit taking by buyer.
Support : 1425, 1405, 1395 level.
Resistant : 1445, 1470, 1500 level.
Comment :
FKLI rallied again shooting up 13 points higher for the contract month of Sep 2010 in slower volume traded in sync with regional market positive development. Hourly chart shows market opened little higher and climbed upward breaking higher resistant level with the outlook still showing a upside biased market reading.

20100830 1319 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2580, changed : +38 points, volume : low.
Bollinger band reading : upnside biased.
MACD Histrogram : reversed downward, buyer testing market as seller retreat.
Support : 2570, 2550, 2520 level.
Resistant : 2600, 2620, 2650 level.
Comment :
Continue firmer soy oil and crude oil futures prices leaded FCPO to opened gap higher and traded side ways in tight 10 points range and quiet volume transaction. Hourly chart shows market opened above upper Bollinger band and move side ways with the reading call for a upside biased market development.

20100830 1010 Global Economic News.

India: Economy probably expanded at fastest pace since 2007
India’s economy probably grew at the fastest pace in 2 1/2 years, adding pressure on the central bank to raise interest rates even as the global recovery falters. GDP rose 8.8% in the three months ended 30 June from a year earlier, according to the median of 27 forecasts in a Bloomberg News survey. (Bloomberg)

Japan: BOJ holds emergency meeting as yen threatens growth
The Bank of Japan will hold an emergency board meeting today as the yen’s surge to 15-year high forces policy makers to find ways to support the nation’s slowing expansion. The yen slipped after the announcement backed speculation the BOJ will step up injections of liquidity to sustain a weakening recovery. The bank’s meeting follows signs that its US counterpart is also open to further monetary stimulus, with Federal Reserve Chairman Ben S. Bernanke saying three days ago that he has the tools to prevent another recession.(Bloomberg)

South Korea: Ease lending rules, extend home buyer tax breaks
South Korea will ease mortgage lending rules and extend tax breaks to encourage buyers back to the property market after home sales slumped to the lowest level in almost a year and a half. Banks will be allowed to ease restrictions on mortgage loans for first-home buyers and owners of one residence until the end of March. The waiver for taxes on home sales will be extended by two years until the end of 2012, the government said. (Bloomberg)

EU: Prods China for faster yuan rise
The European Union thinks China has made only limited progress in allowing its yuan currency to move more rapidly, and swifter action would help safeguard a fragile economic recovery, according to draft G-20 document. China announced in June that it would loosen its grip on the tightly managed yuan, which the US and Europe say Beijing keeps artificially low to support exports. (Financial Daily)

UK: Economy grows most since 2001 on construction
The UK economy expanded faster than previously estimated in the second quarter in the biggest growth spurt since 2001 as companies rebuilt stocks and construction work surged. GDP rose 1.2% from the previous three months, the Office for National Statistics said in London. That was higher than the 1.1% initial estimate, which was the median forecast of 25 economists in a Bloomberg News survey. On the year, the economy expanded 1.7%. (Bloomberg)

US: 2-year yields rise most since April after Bernanke speech
Treasuries dropped, pushing two-year note yields up the most since April, after remarks from Federal Reserve Chairman Ben S. Bernanke tempered speculation that the central bank will step up debt buying. The yield on 10- year notes increased this week for the first time in five weeks as Bernanke said at a conference in Wyoming that the central bank will provide additional economic stimulus as needed. (Bloomberg)

20100830 1009 Malaysia Corporate News.

Wilmar buys rest of Natoleo shares
PPB Group Bhd said its 18.4% associate, Wilmar International Ltd, via wholly-owned unit PGEO Group SB, has signed an agreement last Thursday to acquire the remaining 8.62% in Natural Oleochemicals SB (Natoleo). It will buy the stake from National Land Finance Cooperative Society Ltd for RM42.45m cash or RM2.41 per share. Last month, PGEO signed a deal to buy 91.38% in Natoleo from Kulim (M) Bhd for RM450m, or RM2.41 per share. (StarBiz)

MMC’s unit preps RM1.5bn Islamic note
MMC Corp Bhd’s 70%-owned subsidiary Pelabuhan Tanjung Pelepas SB, has established an Islamic medium term note programme of up to RM1.5bn. Proceeds from the from the 10-year Syariah compliant note will be used to finance the development of the port of Tanjung Pelepas and as working capital. The first issuance under the programme is expected to be made in September this year. (Financial Daily)

Sarawak Energy may again seek lower tariffs
Sarawak Energy Bhd, the state utility firm that will buy power from the Bakun dam, is expected to put in a fresh proposal for lower tariffs during the ramp-up period between 2011 and 2015, sources said. Bearing in mind that power usage in Sarawak is likely to take off only in 2015, it is asking for lower tariffs, probably to mitigate the situation while trying to cement some of the investment deals from heavy users such as aluminium smelters. The smelters are said to be willing to buy power at 12 to 13 sen per kilowatt-hour (KwH). Sarawak Energy is offering six to seven sen per KwH while Sarawak Hidro had asked for nine sen per KwH. Industry observers indicated that even if Sarawak Energy were to buy from Bakun at nine sen per KwH, pay an additional two sen per KwH for transmission costs, it can still earn one or two sen more. (StarBiz)

Tanjong listing on LSE cancelled
Tanjong Plc’s standard listing on the London Stock Exchange has been cancelled with effect from 8.00am London time yesterday. Following the cancellation, Tanjong shares will no longer be traded on the exchange. (StarBiz)

Maxis awards contract to Huawei
Maxis Bhd has appointed Huawei as the exclusive supplier for its Next Generation High-Speed Internet network. The job will also include the building and managing of a full-service Fibre To The X network using GPON technologies. In a joint statement on Friday, the companies said this would offer Maxis subscribers fresh fixedmobile convergence (FMC) services, which included high-speed Internet services after its completion within the year. “An agreement was inked on 19 Aug to formalise the partnership,” it said. The statement said under the agreement, Huawei would offer an end-to-end turnkey services package that included active and passive equipment, holistic optical distribution network designs, and construction management for the construction of the Next Generation High-Speed Internet network. “Upon completion of the project, a network of homes in Klang Valley, Penang and Johor Bahru will be connected on a last-mile basis, using fibre-to-the-home (FTTH) wired technologies,” it said. (StarBiz) 

20100830 1005 Global Market News.

Yen pares losses as BOJ disappoints,stocks up
HONG KONG, Aug 30 (Reuters) - The yen trimmed losses and Japanese shares gave up some of their strong early gains after the Bank of Japan made only minor tweaks in policy, disappointing markets which had been looking for more aggressive action against deflation.
"If the BOJ really wanted to do something about the strength of the yen, they should have done something about deflationary pressures. The current policy of doing nothing simply isn't working," said Robert Rennie, currency strategist at Westpac in Sydney. 

OIL: Crude gains 4th day on U.S. economy, storms
SINGAPORE, Aug 30 (Reuters) - Crude rose for a fourth day on Monday on sustained momentum from Federal Reserve Chairman Ben Bernanke's speech and increased hurricane activity in the Atlantic Ocean, with storms expected to follow paths closer to the United States.
Along with oil, corn, coffee, base metals like copper and many other commodities posted sharp gains on Friday, lifted by a downward revision to U.S. growth that was not as severe as anticipated.

COMMODITY MARKETS: Bernanke's reassuring talk boosts oil, copper, corn
NEW YORK, Aug 27 (Reuters) - Oil, corn, coffee and base metals like copper, along with many other commodities, posted sharp gains on Friday, lifted by a revision to U.S. growth that was not as severe as anticipated and following comments by Fed chief Bernanke that calmed fears of double-dip recession.
"Especially with the good GDP numbers today, Bernanke and other Fed members are singing to the same tune that yes, we are going through a soft patch, but a double dip is not likely," said Peter Cardillo, chief market economist at Avalon Partners in New York.

GLOBAL MARKETS: Bargain hunters boost shares, euro flat
NEW YORK, Aug 27 (Reuters) - Global stocks rose on Friday, as bargain hunters erased early losses sparked by downbeat remarks on the economy from Federal Reserve Chairman Ben Bernanke and a warning of lower revenues by bellwether Intel.
"We're sitting on important support and in thin markets you don't want to be leaning too far in one direction coming into a very low volume week," said Richard Ross, global technical strategist at Auerbach Grayson in New York.

Asia Dry Bulk-Capesize rates to fall on weak iron ore demand
SINGAPORE, Aug 27 (Reuters) - Freight rates for large dry bulk carriers on key Asian routes are expected to decline next week on concerns Chinese demand for iron ore will slow, shipbrokers said on Friday.
In the panamax freight market, rates are seen trading in a tight range as traders balance strong Chinese demand for U.S. soybean shipments and the large surplus of available tonnage.

FOREX-Yen dips; market wary of possible Japan action
LONDON, Aug 27 (Reuters) - The yen dipped against the dollar and the euro on Friday as a nervous market trimmed long positions and Japan's prime minister reiterated a threat to take steps to stem the currency's steady rise.
"I don't think we'll see intervention around current levels unless we get a disorderly move where dollar/yen falls sharply, say by 3 yen, during one day," said Gavin Friend, currency strategist at nabCapital.
Stocks hold above 7-wk low before Bernanke

LONDON, Aug 27 (Reuters) - World stocks hovered above a recent seven-week low on Friday while oil slipped as investors braced for an update on the U.S. economic outlook from the chairman of the Federal Reserve, following a run of weak data.
The yen slipped against the dollar as speculation rose that Tokyo might take steps to stem export-damaging strength in the Japanese currency.

20100830 1004 Soy Oil & Palm Oil Related News.

Soy product futures ended higher across the board, with soyoil recouping some product share value versus soymeal on spreads. A bounce in crude oil futures provided support to soyoil, analysts said. Soymeal ended higher, garnering strength from firmer soybean futures. December soyoil settled 0.72 cent or 1.8% higher at 40.80 cents per pound. December soymeal ended $1.20 or 0.4% higher at $299.50 per short ton. (Source: CME)

Indonesia 2010 CPO Output May Fall 10%-15% -Association (Source: CME)
Crude palm oil output in Indonesia, the world's largest producer, may drop 10%-15% this year as abnormal weather patterns sap yields and heavy rainfall disrupts harvesting, a senior industry official said Friday. Output may fall to between 18 million and 19 million metric tons from 20.6 million tons last year, Indonesian Palm Oil Association Executive Director Fadhil Hasan said by phone. A decrease in Indonesian CPO output would likely boost prices of the commodity, as bouts of bad weather in key oilseed-growing regions including Russia, Ukraine and parts of Europe have also crimped global supply of oilseeds such as rapeseed.
Hasan said palm oil exports rose 5.3% last month to 1.19 million tons, with the bulk of shipments to India, China and Bangladesh. Indonesia exported 1.13 million tons of palm oil in June. Rupiah-denominated October CPO futures on the Indonesia Commodity and Derivative Exchange were 0.5% higher at IDR7,445 a kilogram. Dorab Mistry, an influential vegetable oils analyst, said Thursday evening that Indonesian CPO production will rise at a slower pace this year because expansion of plantation lands in the country has slowed. He revised his forecast for growth to 500,000 tons from 1 million tons for 2010. Indonesia produced 20.6 million tons of CPO in 2009, according to the Indonesian Palm Oil Association.
Mistry reiterated his forecast for Malaysian crude palm oil output this year, saying that an El Nino-related dry spell late last year will likely cut production by 2.3% to around 17.2 million tons, as the two-month dry spell caused tree stress and lowered crop yields. Indonesia and Malaysia combined account for 85% of the world's palm oil production.

New Britain Palm Oil Sees Prices Staying Buoyant (Source: CME)
Palm oil producer New Britain Palm Oil Ltd. Friday reported a 13% fall in first-half profit, skewed by changes in the accounting value of its trees, and said it expects prices for crude palm oil to remain buoyant due to short-term jitters about food supplies and rising consumption in the long term. The company, which operates in Papua New Guinea, said its average selling price during the first six months of the year was $792 a metric ton, compared with $730 a year earlier. However, prices recently spiked to $900 a ton due to concerns about food shortages caused by poor wheat harvests in Russia and Ukraine. There have also been concerns about supply shortages caused by production problems in Indonesia, a major producer of palm oil.
"Palm oil is in a very strong position," said New Britain Palm Oil Executive Director Alan Chaytor. He told Dow Jones Newswires demand for palm oil in the short term is buoyant and the medium-term outlook appears firm. He added longer-term demand for the commodity, which is used in many food products, is expected to keep rising as food consumption increases.

Palm up on supply squeeze, bullish outlook
KUALA LUMPUR, Aug 27 (Reuters) - Malaysian crude palm oil futures rose 0.5 percent on Friday on fears of a possible supply squeeze ahead of a Muslim festival and an upbeat price forecast by a top industry analyst.
Mainly Muslim Indonesia and Malaysia, the world's top palm oil producers, celebrate Eid Al-Fitr in mid-September after a month of fasting, which typically sees estate workers and millers take extended holidays.

Indonesian CPO futures may be used as benchmark -regulator
JAKARTA, Aug 27 (Reuters) - Indonesia's trade ministry may use a new palm oil futures contract traded on a local exchange as one of the benchmarks to calculate the monthly export tax applied on the commodity, a regulatory official said on Friday.
The Indonesia Commodity & Derivative Exchange (ICDX) launched the crude palm oil futures contract in May, in a bid to create a local price benchmark to rival Malaysia's.

India starts soymeal exports early on crop prospects
SINGAPORE, Aug 27 (Reuters) - India kicked off soybean meal marketing early this year by selling 12,000 tonnes to Thailand, with competitive prices and prospects of bumper output making more such deals likely, traders said.
India, Asia's top soymeal exporter, may corner a bigger share of the market in 2011, pricing cargoes at competitive rates which pose a direct challenge to exports from South America and the United States.

Europe, Ramadan boost Indonesia's July palm exports
JAKARTA, Aug 27 (Reuters) - Indonesia's palm oil exports in July rose 9 percent from a year ago, driven by growth in orders from Europe after a drought sapped oilseed crops across the Black Sea region and Asian food demand rose ahead of a key religious observance.
The Indonesian Palm Oil Association (GAPKI) said on Thurday that rising demand from Bangladesh, the European Union and the U.S boosted palm oil exports from the world's No.1 producer to 1.19 million tonnes in July.

India in 1st new-crop soymeal deal, sells 12,000 T-traders
SINGAPORE, Aug 27 (Reuters) - India has signed its first new-crop soybean meal export deal, selling 12,000 tonnes to Thailand this week for shipment in November and December, traders said on Friday.
The cargo was sold at $412 a tonne, including cost and freight. The harvest for the new crop will begin in October.

SINGAPORE, Aug 27 (Reuters) - Diversified commodities firm Olam International  aims to boost production volume by 15-20 percent annually as it expands into upstream sugar and palm oil ventures, its chief executive said on Friday.
Group managing director and CEO Sunny Verghese said Olam was eyeing 10,000 hectares of sugar plantations in Indonesia, Brazil or Africa to set up a crushing plant with a yearly capacity of at least 2 million tonnes.

Friday, August 27, 2010

20100827 1851 FCPO Weekly Chart Study.

Weekly Close: 2542, High: 2569, Low: 2486, Range: 83 points
FCPO closed : 2542, changed : -2 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : weakenning, buyer reducing position as seller testing market.
Support : 2540, 2500, 2450 level.
Resistant : 2600, 2650, 2700 level.
Comment :
2 ticks lower week on week FCPO tested lower support near middle Bollinger band and rebounded upward to closed off the low as putting effort to support the market after interested seller testing market strength. Weekly chart form a long lower part shadow doji bar candle and the outlook turned into suggesting a side way range bound correction market.

20100827 1850 FCPO EOD Daily Chart Study.

FCPO closed : 2542, changed : +12 points, volume : lower.
Bollinger band reading : correction range bound little downside biased.
MACD Histrogram : recovering, seller reducing exposure.
Support : 2520, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
FCPO continue to corrected higher after the recent plunge ended marginally higher in lesser volume changed hand following a continue soy oil price recovery. Daily chart wise, market still having a technical rebound potentially testing higher resistant level with the outlook still recording correction range bound little downside biased.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100827 1823 FKLI Weekly Chart Study.

Weekly Close: 1414, High: 1419, Low: 1390, Range: 29 points.
FKLI closed : 1414 changed : +24 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer ruled.
Support : 1395, 1385, 1375 level.
Resistant : 1425, 1445, 1470 level.
Comment :
FKLI recorded gained reaching new high in supporting increasing volume transaction. Weekly chart shows, price surge seems over extended closing way above upper Bollinger band but nevertheless the reading remained unchanged by suggesting a upside biased market with potential pullback correction.

20100827 1808 FKLI EOD Daily Chart Study.

FKLI closed : 1414, changed : +4.5 points, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : rising higher, buyer on guarded.
Support : 1405, 1395, 1385, 1375 level.
Resistant : 1425, 1445, 1470 level.
Comment :
Super bullish FKLI gained higher in little lower volume transaction after market opened and tested lower before resume upward movement momentum breaking new year high level with profit taking activities took place pressed price to closed off the high. Daily chart shows price moving along the expanding upper Bollinger band with the reading remained calling an 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.

20100827 1311 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1411, changed : +1.5 point, volume : high.
Bollinger band reading : upside biased.
MACD Histrogram : rising higher, buyer stayed put.
Support : 1405, 1395, 1385, 1375 level.
Resistant : 1425, 1445, 1470 level.
Comment :
Overnight fall on Dow Jones to closed below 10,000 level leaded to a much lower FKLI open  but some how buyer will is just too strong maintaining their position supported market all the day to break another new year high recorded slightly gain to closed for lunch. Hourly chart shows that the uptrend remained intact with the reading still suggesting an upside biased market.

20100827 1300 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2548, changed : +18 points, volume : moderate.
Bollinger band reading : upside biased.
MACD Histrogram : getting higher, seller reducing exposure.
Support : 2520, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
FCPO continue to edge higher in average volume changed hand after industry expert Mr. Dorab Mistry given a bullish outlook on FCPO price with the 2nd half year target near RM3,000 per tonne during yesterday Brazil conference due to erratic weather causing lower production. Hourly chart wise, price opened unchanged and surge upward tested above but closed below 2550 resistant level with the reading suggesting an upside biased market development.

20100827 1022 Global Economic News.

Japan: BOJ under pressure to boost economy as yen threatens expansion
Prime Minister Naoto Kan’s government is stepping up pressure on the Bank of Japan to spur growth as it tries to jump start a slowing economy under threat by a currency at a 15-year high. The ruling Democratic Party of Japan called on the central bank to “speedily take further steps” in a stimulus package proposal presented to Kan in Tokyo yesterday. (Bloomberg)

Japan: Consumer prices fall in July as economic growth slows . Prices excluding fresh food slid 1.1% YoY. (Source: Bloomberg)

Japan: Unemployment rate unexpectedly falls to 5.2% in July . The median forecast of 24 economists surveyed by Bloomberg News was 5.3%. (Source: Bloomberg)

E.U: Loans to households and companies grew in July . Loans to the private sector rose 0.9% YoY after growing an annual 0.5% YoY in June. That's the strongest increase since June 2009. M3 money supply, which the ECB uses as a gauge of future inflation, increased an annual 0.2% YoY in July, the same rate recorded in the previous month. (Source: Bloomberg)

China: Direct investment in the U.S. plunged in 1H10 even as its overall foreign acquisitions rose to a record, underscoring the nation's efforts to diversify its portfolio, according to the Heritage Foundation. China's non-bond investments in the U.S. slumped 47% YoY to USD 1.6b, while those in the rest of the world surged 34% to USD 29b. (Source: Bloomberg)

Singapore: Factory output in July rises at slowest pace in eight months as pharmaceutical companies reduced output after a ramp-up earlier this year. Manufacturing climbed 9.9% YoY, after a revised 29.5% YoY gain in June. (Source: Bloomberg)

Philippines: Bangko Sentral ng Pilipinas kept key rate at 4% to support recovery . The Philippine central bank kept its benchmark interest rate at a record low as easing inflation gives it room to support the nation's economic recovery. That's the lowest level since central bank data started in 1990. (Source: Bloomberg)

Philippines: Economic growth unexpectedly accelerated in 2Q10 to the fastest pace in three years as consumer and government spending increased. GDP increased 7.9% YoY compared with a revised 7.8% YoY gain in the three months through March. (Source: Bloomberg)

Australia: Business investment unexpectedly fell 4% in 2Q10 , a sign companies are delaying spending plans on renewed concern about the global economy and doubts over a local mining tax. Capital spending dropped 4% QoQ from the previous three months, when it declined a revised 1% QoQ. (Source: Bloomberg)

EU: Confidence drops to 6-year low, survey shows
European’s confidence in the European Union dropped to a 6-year low as the 27-nation bloc battled the Greeceled debt crisis, according to the latest Eurobarometer survey. 49% of respondents said their nation’s membership in the EU was “a good thing”, according to the poll of more than 26,000 people released by the EU executive arm in Brussels. (Bloomberg)

EU: Loan growth accelerates as economy recovers
 Loans to households and companies in Europe grew at the fastest pace in 13 months in July after the economic recovery gathered steam. Loans to the private sector rose 0.9% from a year earlier after growing an annual 0.5% in June. M3 money supply, a gauge of future inflation, increased an annual 0.2% in July, the same rate recorded in the previous month. (Bloomberg)

US: Jobless claims decrease more than forecast
Applications for jobless benefits fell more than forecast last week, easing concern American employers are again slashing payrolls as the economy slows. Claims dropped by 31,000, the first decline in a month, to 473,000 in the week ended 21 Aug. The total number of people receiving government payments exceeded 10m for the first time in 4 months, reflecting an increase in those getting extended benefits. (Bloomberg)

20100827 1021 Malaysia Corporate News.

F&N to buy 23% of Cocoaland
Fraser and Neave Holdings (F&N), Malaysia's largest soft drinks manufacturer and distributor, has agreed to acquire a 23.0% stake in Cocoaland Holdings for RM54.6m to expand in the food business. Under the deal, F&N is proposing to buy 39.6m new shares in confectionery maker Cocoaland for RM1.38 each. Cocoaland's last traded price prior to its suspension was at RM2.87 a share. Cocoaland has rallied by 119% this year. F&N chief executive officer Datuk Ng Jui Sia said the stake in Cocoaland, its first in a food manufacturer, will provide the group with a strategic and synergistic foothold to advance its food products in its existing regional, world-class food and beverage (F&B) enterprise. (BT)

Tenaga proposes 1-for-4 bonus issue of up to 1.12bn shares
 Tenaga Nasional has proposed a one–for-four bonus issue of up to 1.12bn shares of RM1 each with the entitlement date to be announced later. As at 31 May 2010, its paid-up capital stood at RM4.35bn, comprising 4.35bn shares while there were 129.85m shares outstanding ESOS options. In a statement to Bursa Malaysia yesterday, Tenaga said the bonus issue would be carried out by capitalizing up to RM1.12bn from its share premium account, which amounted to RM5.27bn as at 31 August 2009. (Financial Daily)

Masterskill to buy land
Masterskill Education Group says wholly-owned Masterskill (M) SB will buy nine plots of freehold land for RM30.04m to build the group’s flagship university campus. The land in Kajang measures a total of 19.77 hectares. The university campus, dubbed Masterskill University College of Health Sciences, will comprise an academic block with about 700,000 sq ft in built-up area and hostel facilities of about one million sq ft in built-up area. The campus will be able to accommodate around 20,000 students, Masterskill said in a statement. (BT)

 JPK to be axed from Bursa
JPK Holdings will be de-listed from Bursa Malaysia Securities on 8 Sept 2010, after a filing to submit its regularization plans to the regulators. In a filing to the exchange yesterday, the trading of the securities of the company will be suspended with effect from 6 Sept. “The securities of the company will be de-listed on 8 Sept unless an appeal is submitted to Bursa Securities on or before 3 Sept 2010. Any appeal submitted after the appeal timeframe will not be considered,” it said. JPK said it would be appealing against the decisions. (Malaysian Reserve)

Affin and BEA form strategic partnership
Affin Holdings (AHB) and The Bank of East Asia Ltd, Hong Kong (BEA) have formally established a partnership to jointly develop business in China, Hong Kong, Malaysia and other key markets where they both operate. Both parties signed a memorandum of understanding yesterday for the strategic partnership to signify the beginning of a long-term collaboration between AHB and BEA. The signing outlines the framework for a mutually beneficial co-development of businesses between AHB and BEA. AHB said the strategic partnership would enhance AHB’s ability to support its customers who want to have a business presence in China and Hong Kong by leveraging on BEA’s strong presence and extensive branch network there. (StarBiz)

Axiata's CFO joins Goldman
Datuk Yusof Annuar Yaacob, the group chief financial officer of Axiata Group, will leave the group at the end of November this year. He will join US investment bank Goldman Sachs as the managing director for Goldman Sachs Corporate Finance Malaysia, Axiata said in a statement. (BT)

AirAsia may consider aerobridges at new LCCT
Budget carrier AirAsia may consider using aerobridges at the new permanent low-cost carrier terminal (LCCT) to aide passenger convenience, says its chief. "MAHB (Malaysia Airports Holdings) has given us a proposal on using aerobridges and if we can get the right economic deal, we will consider it," AirAsia chief executive officer Datuk Seri Dr Tony Fernandes said. Fernandes added that the airline would still be able to meet its 25-minute turnaround time with the usage of aero-bridges. (BT)  

Autos: Ford, Mazda to invest RM1.1b in Thailand plant. Ford Motor Company and Mazda Motor Corp will invest USD350m (RM1.1b) in their joint-venture AutoAlliance Thailand (AAT) plant in Rayong to support the production of their next generation compact pickup trucks. The investment will enable production of the new Mazda and Ford compact pickups to start in mid-2011. (Source: Malaysian Reserve)

Banking: No fee for unilateral wa'd currency hedging. Islamic financial institutions can enter into forward foreign currency transactions for hedging purposes based on unilateral wa'd (promise) but no fee is to be charged on the promisee, according to Bank Negara's Syariah Advisory Council. The fees were not to be charged on the promisee in view that upfront cash payment for forward currency transaction would lead to a bilateral wa'd which was not allowed by syariah. (Source: The Star)

Green Packet: To supply WIMAX modems to Saudi's GO. Green Packet Bhd has sealed a deal to supply its WIMAX modems to Saudi Arabia's first and fastest growing 4G operator, GO (Etihad Atheeb Telecom Co). Green Packet said GO held a fixed line license on the 3.5 GHz frequency spectrum across 13 regional divisions of Saudi Arabia, and aimed to revolutionise internet broadband services by bringing the latest telecommunications wired and wireless technologies to the kingdom. (Source: The Edge Financial Daily)

Markets: CDRC to revamp RM2.2b debts. The revived Corporate Debt Restructuring Committee (CDRC) has agreed to help restructure RM2.2b of debts from 13 applicants. The companies that CDRC agreed to help in recent months included KBB Resources Bhd, Tracoma Holdings Bhd, Limahsoon Bhd, Carotech Bhd and LCL Corp Bhd. (Source: The Star)

Pantech: New plant will raise manufacturing revenue. Pantech Group Holdings Bhd, a pipes, fitting and flow-control products manufacturer, expects its manufacturing division revenue to increase by 50% when its new plant in Pasir Gudang, Johor, commences operation by year-end. It is sited on part of a 8ha land and has an initial capacity of 7,000 tonnes annually, producing mainly stainless steel welded pipes and fittings. (Source: The Star)

Plantation: Felda settlers set to receive RM11m award. Felda has to pay RM11m in damages to 354 settlers after the agency's final bid to appeal against the payment order was refused by the Federal Court here. (Source: The Star)

Zelan: To focus on Gombak project. Engineering and construction group Zelan Bhd will focus on the Gombak Integrated Transport Terminal (GITT) project, which is expected to provide an income stream of RM900m over 25 years. To be concluded in the next couple of months, the project would contribute an additional RM220m to Zelan's orderbook. (Source: Business Times)

20100827 1013 Global Market News.

Stocks slip; market tense before Bernanke
SYDNEY, Aug 27 (Reuters) - Asian stocks fell on Friday to round off a week of losses as persistent worries over whether the U.S. economy may suffer another recession kept investors dour.
"What Bernanke says or doesn't say will determine our fate next week," said Don Williams, chief investment officer at Platypus Asset Management in Australia. 

GLOBAL MARKETS: Stocks slip; market tense before Bernanke
SYDNEY, Aug 27 (Reuters) - Asian stocks fell on Friday to round off a week of losses as persistent worries over whether the U.S. economy may suffer another recession kept investors dour. "What Bernanke says or doesn't say will determine our fate next week," said Don Williams, chief investment officer at Platypus Asset Management in Australia.

GLOBAL MARKETS: Stocks slip; market tense before Bernanke
SYDNEY, Aug 27 (Reuters) - Asian stocks fell on Friday to round off a week of losses as persistent worries over whether the U.S. economy may suffer another recession kept investors dour.
"What Bernanke says or doesn't say will determine our fate next week," said Don Williams, chief investment officer at Platypus Asset Management in Australia.

OIL: Crude snaps two-day rally ahead of U.S. GDP report
SINGAPORE, Aug 27 (Reuters) - Crude snapped a two-day rally on Friday, heading for a third straight week of losses, as an expected downgrade in U.S. economic growth fed disquiet over record oil inventories and weak housing and manufacturing data. The U.S. government on Friday is expected to revise second-quarter gross domestic product (GDP) growth lower to an annual pace of 1.4 percent, from 2.4 percent, according to a Reuters survey.

US July new home sales sag, durables orders soft
WASHINGTON, Aug 25 (Reuters) - New U.S. home sales slumped to the slowest pace on record in July and orders for costly durable goods were weak, heightening fears the economy was at risk of another downturn. The reports on Wednesday from the Commerce Department suggested growth could slow materially without government support and some economists saw the risk of a contraction in output in the third quarter.

FOREX-Euro rises, supported by higher European shares
LONDON, Aug 26 (Reuters) - The euro rose on Thursday as a rise in global share prices prompted investors to pick up riskier currencies, but gains were capped as more weak U.S. economic data indicated the pace of recovery was slowing. "The market is still looking at stocks and how the ongoing correlation between risky assets and euro/dollar holds up, and it still seems to be holding up well," said Jeremy Stretch, head of currency strategy at CIBC.

World stocks rebound from lows, yen slips
LONDON, Aug 26 (Reuters) - World stocks bounced off seven-week lows and Japan's yen weakened in another burst of the risk-on, risk-off trading that has dominated financial markets this year. "Companies have been reporting reasonable results," said David Buik, partner at BGC Partners. "But whether a rally can be sustained is to be seen, there is nothing to say the bad news is all over."

20100827 1012 Soy Oil & Palm Oil Related News.

Soy product futures ended higher, bouncing in step with advances in soybeans. Lingering concerns about the yield potential of the U.S. soy crop provided strength for soyoil and soymeal, analysts said. December soyoil settled 0.36 cent, or 0.9%, higher at 40.08 cents per pound. December soymeal ended $6.30, or 2.2%, higher at $298.30 per short ton. (Source: CME)

India 2010-11 Soybean Output Likely Up On Better Rains, Yield (Source: CME)
Soybean production in India is likely to rise in the next crop year, driven by better yields due to good rains in major growing regions, industry executives said Thursday. The country is estimated to have produced about 8.5 million metric tons in the crop year ending Sept. 30, according to data from the Central Organisation for Oil Industry and Trade. The overall production in 2010-11 will be better than the current year, but it is too early to give any figure, said Govindbhai Patel, managing partner of Dipak Enterprises and an expert on vegetable oil industry. The soybean production in 2009-10 fell about 5% as India suffered its worst drought in almost four decades, with monsoon rains 22% below average. But the monsoon rains are near normal this year so far, boosting the prospects of crop growth. The crop condition is quite good in major soybean growing regions as the rains are coming in regular intervals, said S.K. Srivastava, director of National Research Centre for Soybean.
The sowing of soybean--the main oilseed grown in the summer season--in India starts in June and continues through July. Total area under summer-sown oilseeds has increased 5.4% to 16.14 million hectares until Aug. 20, according to the latest government data. Total yield is likely to improve from the this year's level of 1.1 tons per hectare, Srivastava said. Despite expectation of higher production and large stocks India's edible imports in 2010-11 may remain mostly steady compared with the current year, industry executives said. India--which imports nearly half of its edible oil needs--is likely to import 8.2 million-8.4 million tons in the marketing year ending Oct. 31, said Pradip Desai, managing director of Mumbai-based importer Palmtrade Services Pvt. Ltd. It's difficult to see edible oil imports going above 8.5 million or 8.6 million tons in 2010-11, he added. India is the world's second-largest edible oil importer.
It imports palm oil mostly from Indonesia and Malaysia, and soyoil from Argentina and Brazil.

Indonesia sets Sept CPO export tax at 6 pct, cocoa steady
JAKARTA, Aug 26 (Reuters) - Indonesia will set its crude palm oil (CPO) export tax at 6 percent in September, up from 3 percent in August, the trade ministry said on Thursday, confirming an earlier Reuters story. It also raised the CPO base export price to $804 per tonne, from $725 per tonne in August. The trade ministry kept its export tax for cocoa beans at 10 percent in September, unchanged from August. But the cocoa base export price which is used to calculate the tax will be cut to $2,673 a tonne in September from $2,738 a tonne in August.

Palm oil rebounds from low on technicals, oils
KUALA LUMPUR, Aug 26 (Reuters) - Malaysian crude palm oil futures rebounded from one-month lows hit the previous day due to technical buying and firmer oils markets. "The market is up on technical retracement and a correction after a fall earlier. It also followed external soy, soyoil and crude oil markets that edged higher (in the afternoon session)," said a trader with a foreign brokerage in Kuala Lumpur.

Port closure seen hurting India Aug soymeal exports
MUMBAI, Aug 26 (Reuters) - India's soymeal exports in August are likely to fall short by about 50,000 tonnes compared to July, despite higher crushing as a closure of a key port in western India cut shipments, two oil millers and one port official said. Operations at Mumbai port were affected for nearly a fortnight in August after two Panamanian ships collided just off Mumbai's coast on Aug. 7.

20100827 0950 FCPO EOD Daily Chart Study.(26 Aug 2010)

FCPO closed : 2530, changed : +44 points, volume : lower.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : turned upward, seller take profit.
Support : 2520, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
Recovering soy oil and crude oil futures prices plus Indonesia imposed a higher export tax on crude palm oil lead FCPO to closed at the high of the day gained 44 points in lesser volume traded. Daily chart formed a wide range up bar candle after market opened higher and climb upward but overall the reading still suggesting a downside biased with correction taking place market development.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with quick cut loss and profit target.

Thursday, August 26, 2010

20100826 1758 FKLI EOD Daily Chart Study.

FKLI closed : 1409.5, changed : +16 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : resumed rising, buyer returned .
Support : 1405, 1395, 1385, 1375 level.
Resistant : 1425, 1445, 1470 level.
Comment :
Rallied again FKLI closed boldly at the high of the day in ultra high volume changed hand as buyer last hour pushed market to record another new year high. Daily chart formed a wide range up bar candle resumed uptrend movement after 2 days of correction with the outlook resume upside biased 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.

20100826 1426 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1399, changed : +5.5 points, volume : high.
Bollinger band reading : side way range bound little downside biased.
MACD Histrogram : recovering, both buyer and seller doing rollover.
Support : 1395, 1385, 1375 level.
Resistant : 1405, 1425, 1445 level.
Comment :
Traded range bound FKLI closed first session higher in improved volume transaction mostly consist of rollover to forward month activities. Hourly chart wise, market recovered upward after penetrated below lower Bollinger band level with the reading suggesting a side way range bound little downside biased market development.

20100826 1424 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2496, changed : +10 points, volume : low.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : getting higher, seller taking profit.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2520, 2550 level.
Comment :
Tight range quiet trading volume FCPO recovered slightly having pullback correction after 2 days significant dropped. Hourly chart formed few doji bars candle traded side ways after price touched lower Bollinger band yesterday with the reading suggesting a correction range bound downside biased market. Mean while, Indonesia just announced a raised in export tax to 6% for the month of September compare to 3% for August.

20100826 0959 Global Economics News.

Germany: Business confidence unexpectedly rose to a three year high in August . The Munich-based Ifo institute said its business climate index, based on a survey of 7,000 executives, increased to 106.7 from 106.2 in July. That's the fourth straight monthly increase and the highest level since June 2007. (Source: Bloomberg)

Singapore: Bond sales are accelerating as companies on an island vying for the title of world's fastest growing economy exploit the lowest funding costs in at least two decades to finance expansion. Temasek Holdings Pte. and CapitaLand Ltd. led borrowers that raised USD14.1b this year, topping the record USD13.2b of notes sold in 2001, according to data compiled by Bloomberg. (Source: Bloomberg)

Thailand: Raises interest rate, signals more increases
Thailand’s central bank raised its benchmark interest rate and signaled further increases after the economy overcame political unrest to grow faster than estimated last quarter. The baht strengthened and stocks fell. The Bank of Thailand increased the one-day bond repurchase rate by a quarter of a percentage point to 1.75% after its first increase in almost two years last month, it said in Bangkok. The decision was predicted by 11 out of 12 economists surveyed by Bloomberg News. (Bloomberg)
Japan: Export growth slows as global demand wanes
Japan’s export growth slowed for a fifth month in July, adding to risks in an economy under threat from the yen’s surge to a 15-year high against the dollar. Overseas shipments advanced 23.5% in July from a year earlier, less than June’s 27.7% gain, the Finance Ministry said in Tokyo. The median estimate of 18 economists surveyed by Bloomberg News was for a 21.8% increase. From a month earlier, exports fell 1.4%, the third monthly drop. (Bloomberg)

Korea: Bank of Korea governor says ’vigilance’ needed on inflation
South Korea should be alert to inflation risks even as the global recovery is set to be slower than expected, central bank Governor Kim Choong Soo said. Asia’s fourth-largest economy needs “vigilance against the possibility of the awakening of inflation expectations” with its consumer price index projected to accelerate, Kim said in a speech in New York hosted by the Korea Society on 25 Aug. A “double-dip recession” or recurrence of the global financial crisis is unlikely, though the pace of the recovery in major economies such as the US will be “slower than expected,” Kim said. (Bloomberg)

India: RBI says curbing inflation is its top priority
India’s central bank said controlling inflation is its top priority, a stance that may fuel speculation it will raise interest rates for the fifth time since mid-March. “Inflation containment may have to receive precedence over the other policy objectives,” the Reserve Bank of India said in its annual report for the year ended 30 June. “Inflation has emerged as a major concern.” India’s 10-year government bond yields climbed to the highest in more than three months, stoked by inflation concerns. (Bloomberg)
EU: UK budget ‘regressive’, hits poor hardest, IFS says
The UK coalition government’s assertion that its budget cuts will hit the richest households more than the poorest is challenged by a research of Institute for Fiscal Studies. An analysis of all benefit cuts announced in the 22 June budget shows the measures to be “regressive,” with the poorest households hit hardest, the IFS said. “The distributional effect of all tax and benefit reforms due to be implemented by 2014-15 is clearly regressive within the bottom nine decile groups of the income distribution when losses are expressed as a percentage of net income,” the London-based IFS said in a report. (Bloomberg)

US: Durables, housing signal recession risk
Orders for durable goods in the US increased less than forecast in July and sales of new homes unexpectedly dropped, increasing the risk of a renewed recession in the world’s largest economy. Bookings for goods made to last at least three years rose 0.3%, figures from the Commerce Department showed in Washington. Excluding transportation equipment, demand fell by the most in more than a year. Purchases of new dwellings fell 12% to an annual pace of 276,000, the weakest since data began in 1963, figures from the same agency showed. The reports indicate capital spending, one of the few bright spots in a weakening economic recovery, is slowing as the second half begins, while a lack of jobs is crippling housing. (Bloomberg)

20100826 0958 Malaysia Corporate News.

Axis REIT: Eyes RM200m commercial assets. Axis REIT Managers Bhd (ARMB) plans to buy a cluster of commercial assets worth more than RM200m in Petaling Jaya and Shah Alam to expand its portfolio. CEO Stewart LaBrooy said it will place out about 20% of its current fund size to raise up to RM160m for the acquisitions. Its latest deal is to buy Tesco hypermarket in Johor, Axis Technology Centre in Petaling Jaya and Axis PDI Centre in Klang worth RM200m. (Source: Business Times)

Daya Materials: Signs JV with Singapore parties to tap O&G sector. Daya Materials Bhd is teaming up with 2 Singapore-registered companies to venture into the provision of services and equipment for companies involved in exploration in the oil and gas (O&G) industry. Its unit, OCI Energy Sdn Bhd, yesterday signed a JV agreement with Sheffield Offshore Services Pte Ltd and Ascent Offshore (Singapore) Pte Ltd. The estimated initial capital contribution by OCI for the project was RM51,000 for a 51% stake while the remaining 49% would be held by Ascent. (Source: The Edge Financial Daily)

IJM: Eyes another RM2b in its order book. IJM Corporation Bhd which already has an order book of RM3.6b is looking to add another RM2b worth of jobs into its stable in the current financial year ending March 31, 2011. (Source: The Edge Financial Daily)

MMC and Zelan: To jointly bid for 10MP infrastructure projects. MMC Corporation Bhd has entered into a JV agreement with Zelan Bhd to bid for infrastructure projects under the 10th Malaysia Plan (10MP). The JV is named MMC Zelan Sdn Bhd, with MMC having a 60% stake and Zelan the remaining 40%. (Source: The Edge Financial Daily)

Technology: Seagate unveils world's first 3 terabyte external drive. Seagate announced Tuesday the world's 1st 3 terabyte (TB) external desktop drive. With 3TB of capacity, people can store up to 120 HD movies, 1,500 video games, thousands of photos or countless hours of digital music. (Source: The Edge Financial Daily)

Yinson: Going big into marine haulage. Logistic operator Yinson Holdings Bhd is going big into marine haulage business by investing RM70m to buy a platform supply vessel (PSV) this month through its subsidiary Yinson Marine Service Sdn Bhd (YMS). The Singapore-made PSV will be leased to PetroVietnam Technical Services Corp, a subsidiary of state-owned Vietnam Oil and Gas Group. (Source: Business Times)

MMC: Harbour construction tender at Jazan City aborted
MMC Corporation said yesterday the tender for the harbor construction at Jazan Economic City (JEC) in Saudi Arabia has been aborted due to impending change to the Jazan Oil Refinery’s location as requested by Saudi Aramco. “The port location will likewise be changed accordingly. Details are being studied to finalize the changes,” it said. In a filing with Bursa Malaysia Securities yesterday, MMC said the discussions leading to a decision for the power plant to be developed by Saudi Electricity Company and the desalination plant by Saline Water Conversion Corporation of Saudi Arabia were ongoing. (Financial Daily)

Cocoaland finds ‘sweet’ partner in F&N
In yet another move that signals more mergers & acquisitions in the food industry, Fraser and Neave Holdings (F&N) will take up a 23.08% stake in Cocoaland Holdings, sources say. Cocoaland is Southeast Asia’s largest producer of fruit gummies and one of Malaysia’s leading manufacturers of snacks and chocolate products. The company produces Koko Jelly, Rotong, Mum’s Bake and Lot 100 gummies, as well as Ribena pastilles for GlaxoSmithKline and Sugus gummies for the Wrigley company. (Financial Daily)

UDA in talks with Pudu JV partners
UDA Holdings is talking to a few joint-venture partners to develop the former Pudu jail site and the 22-acre land next to it, but UDA will remain the sole master developer. The project is estimated to cost about RM5bn. UDA chairman Datuk Nur Jazlan Mohamed said: “We will try to keep it at RM5bn.” (StarBiz)

Axiata to pay maiden dividend in fiscal 2011
Axiata Group, which owns Malaysia’s second-largest telecommunication company, plans to pay its maiden dividend in 2011 even as growth may slow down in the second-half this year. For a start, Axiata announced a policy to return at least 30% of its net profit as dividends to shareholders with the payout ratio to be increased progressively over time, said Axiata president and group CEO Datuk Seri Jamaludin Ibrahim at a press conference in Kuala Lumpur. (Malaysian Reserve)

Project rollout too slow, say builders
"In the last four quarters, the total value of new construction projects awarded has declined," newly-elected MBAM president Kwan Foh Kwai said. Bank Negara Malaysia's statistics indicate that the construction sector registered 8.7% growth in the first quarter of this year, but it slowed to 4.1% in the second. "If we're not vigilant, the construction sector's growth will continue to slow down, stagnate or, worse, shrink like in 2004, 2005 and 2006," he said. (BT)

20100826 0948 Global Market News.

Asia stocks up; yen eases, eyes on govt, BOJ
TOKYO, Aug 26 (Reuters) - Asian stocks rose as investors hunted for bargains among recently beaten-down shares, while the yen pulled further away from 15-year highs as investors wondered whether Japanese officials would take fresh steps to curb the currency's strength and spur economic growth.
"There are increasing signs of a slowing global economy, and on top of that you have Japan's situation where it really isn't providing policy to deal with its economic issues," said Kenichi Hirano, operating officer at Tachibana Securities. 

OIL: Crude rises second day on short-covering
SINGAPORE, Aug 26 (Reuters) - U.S. crude rose for a second day on Thursday as bargain-hunting and short-covering in equities spread to the oil market, where investors ignored reports showing slower U.S. economic activity and rising record-high inventories to take advantage of prices near 11-week lows.
Tropical Depression Seven in the far eastern Atlantic Ocean strengthened into Tropical Storm Earl late Wednesday, the U.S. National Hurricane Center said in its latest advisory.

COMMODITY MARKETS: Weak data hits markets; oil, copper bounce late
NEW YORK, Aug 25 (Reuters) - Another round of gloomy U.S. economic data sank most commodity markets on Wednesday as investors fretted about the demand outlook for raw materials, although oil and copper repaired steep early losses by the end, rebounding with Wall Street.
"They (data) are obviously lousy. It's very disappointing. The strength of second quarter GDP was business spending. It looks like businesses are pulling back from this commitment in a very big way in July. It's an indication of how sentiment is deteriorating," said Christopher Low, chief economist ay FTN Financial in New York.

GLOBAL MARKETS: US stocks rise on bargain hunting; yen eases
NEW YORK, Aug 25 (Reuters) - U.S. stocks staged a comeback on bargain hunting after suffering steep early losses on disappointing economic data on Wednesday, while the yen pulled back from a 15-year high on mounting speculation Japanese authorities may intervene to stem the currency's rise.
"Overall, this is still a very careful market," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey. "Until we see a package of decidedly positive data, this market is going to be vulnerable." 

Aug. 25 (Bloomberg) -- Nouriel Roubini, the New York University economist who predicted the global financial crisis, said U.S. growth will be “well below” 1 percent in the third quarter and put the odds of a renewed recession at 40 percent. Roubini, chairman of Roubini Global Economics LLC, said his forecast assumes the government will lower its estimate for growth in the second quarter to an annual rate of 1.2 percent “at best.” “All the growth tailwinds of the first half of the year become headwinds in the second half,” he said in an e-mail message, including the government’s $814-billion stimulus plan, hiring for the census, and incentives such the cash-for-clunkers program and tax credits for first-time home buyers.

US home sales at 15-year lows, stoke recovery fears
WASHINGTON, Aug 24 (Reuters) - Sales of previously owned U.S. homes took a record plunge in July to their slowest pace in 15 years, underlining the housing market's struggle to find its footing without government aid. Tuesday's report from the National Association of Realtors, which was much worse than market expectations, was the latest data that indicated economic activity continued to slacken into the third quarter.

FOREX-Yen dips, rally pauses on intervention jitters
LONDON, Aug 25 (Reuters) - The yen pulled back from 15-year highs against the dollar and a nine-year peak versus the euro on Wednesday on speculation Japanese authorities may take action to stem the currency's rise. "The yen has come quite far quite quickly ... so we're seeing some consolidation," said Daragh Maher, currency strategist at Credit Agricole CIB.

Yen dips from 15-yr high; stocks off for 5th day
LONDON, Aug 25 (Reuters) - World stocks fell for a fifth day as worries about a double dip recession persisted, while the yen eased from a 15-year high on speculation that Tokyo was considering intervening to weaken its currency.
"The Ireland downgrade was not too much of a surprise but it is still weighing on sentiment," said Joshua Raymond, market strategist at City Index in London.

20100826 0947 Soy Oil & Palm Oil Related News.

Soy product futures ended mixed, with meal/oil spreading boosting soymeal futures while weighing on soyoil futures. December soyoil settled 0.34 cents, or 0.8%, lower at 39.72 cents per pound. Soymeal ended $2.30, or 0.8%, higher at $292.20 per short ton.(Source: CME)

IOI Chairman: Malaysia 2010 CPO Output May Fall Short Of 17.8M Tons(Source: CME)
Crude palm oil production in Malaysia may fall short of the national target of 17.8 million metric tons in 2010 as the La Nina weather event may slow transportation and disrupt harvesting cycles, Lee Shin Cheng, chairman at IOI Corp., Malaysia's second-largest listed palm oil producer by volume, said Wednesday. Malaysia's commodities ministry in July lowered its palm production forecast to 17.8 million tons from 18.1 million tons, as adverse weather conditions hurt yields. "Production will be adversely affected if the heavier-than-expected rainfall sets in during the fourth quarter," IOI's Lee told Dow Jones Newswires. He didn't give a price forecast. Palm oil usually reaches peak production during the September-November period and coincides with the monsoon season in the country. La Nina episodes are usually associated with above-normal rainfall. Though the presence of a La Nina hampers harvesting activity, heavy rainfall augurs well for future palm yields. "It may be too early to predict but with good rainfall in 2010, production in 2011 is likely to recover," Lee said.

July US Census Soy Crush Seen At 128.5M Bushels (Source: CME)
The U.S. Census Bureau is expected to estimate the July soybean crush at 128.5 million bushels, a modest decline from the prior month, owing to tight availability of supplies for crushing, according to a survey of industry analysts. The Census Bureau's crush report is scheduled for release Thursday at 8 a.m. EDT. In an Aug. 16 report, the National Oilseed Processors Association said the July crush was 124.181 million bushels, down 2.06 million bushels from June. The NOPA report includes figures only from member processors. The daily soybean crush rate slowed in July because seasonal down time in the industry and tight soybean supplies for crushing translated into a smaller month-over-month crush pace, analysts said. Supplies of soybeans from the last harvest dwindled because of strong demand and a lack of selling by farmers. July soymeal stocks are seen increasing to 350,800 short tons in the Census Bureau estimate, up from the 334,921 tons reported for June.
The slowdown in the U.S. soymeal export program is seen building supplies, industry participants said. Soyoil stocks are seen declining to 3.528 billion pounds in the report, down from 3.555 billion the previous month. In the NOPA report, soyoil stocks saw a 9.886 million pound decrease in stocks. A lower processing pace in July and a pickup in soyoil exports led to a drawdown of soyoil supplies, said Dan Basse, president of AgResource Co. in Chicago.

CHICAGO, Aug 24 (Reuters) - Soyoil prices have lagged those of the other major global edible oils for much of 2010, frustrating managed money traders who are currently sitting on their largest long position in that commodity for more than three years. But an improving technical pattern coupled with the fact that soyoil prices have recently established their widest discount to palm oil in more than a year suggests that soy oil futures may be primed for a period of strength in the weeks ahead.

Weak demand drags palm oil to 4-week lows
KUALA LUMPUR, Aug 25 (Reuters) - Malaysian crude palm oil futures dropped to one-month lows as slower overseas demand and concerns over the pace of global economic recovery weakened sentiment.
"Equities are going through a patch of uncertainty and the market is depressed at this level," said a trader with a Kuala Lumpur-based foreign brokerage.

Canadian canola crop outlook improving- Oil World
HAMBURG, Aug 24 (Reuters) - The outlook for Canada's canola (rapeseed) crop is improving but the harvest will still be down on the year, Hamburg-based oilseeds analysts Oil World said on Tuesday. Oil World has raised its forecast of Canada's 2010/11 rapeseed crop for harvesting in summer 2010 to 10.5 million tonnes, up by 0.5 million tonnes from its July estimate but still down from the 11.8 million

US corn, soybean ratings seen down on lack of rain
CHICAGO, Aug 23 (Reuters) - A lack of rain in some areas of the U.S. Midwest and the advancing maturity of the corn and soybean crops should result in a slight drop in weekly crop condition ratings, according to a Reuters poll of 10 analysts. On average, the analysts expected the U.S. Agriculture Department's weekly Crop Progress Report to show 68 percent of the corn crop rated in good to excellent condition, down 1 point from 69 percent last week.

Wednesday, August 25, 2010

20100825 1851 FCPO EOD Daily Chart Study.

FCPO closed : 2486, changed : -24 points, volume : higher.
Bollinger band reading : downside biased.
MACD Histrogram : getting lower, seller in control.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2520, 2550 level.
Comment :
FCPO continue to head south again today after market ended lower in ultra high volume transaction traded after both export cargo surveyor release a drop in export figures. Daily chart wise, market opened higher at the high of the day and dive deep below breaking below crucial psychology 2500 support level with the reading suggesting a downside biased market testing lower support level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with quick cut loss and profit target.

20100825 1848 FKLI EOD Daily Chart Study.

FKLI closed : 1393.5, changed : -5.5 points, volume : higher.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : reversed lower, buyer taking profit.
Support : 1385, 1375, 1360 level.
Resistant : 1395, 1405, 1425 level.
Comment :
Correction continue to take place in FKLI that ended lower in better volume transacted taking a break after worked hard 8 straight days.  Daily chart wise, market opened unchanged and tested and stay below support turned resistant level at 1395 and the outlook turned into a correction range bound upside biased market 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.

20100825 1314 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1396, changed : -3 points, volume : low.
Bollinger band reading : side way range bound downside biased.
MACD Histrogram : getting lower, buyer closing position to realise profit.
Support : 1395, 1385, 1375 level.
Resistant : 1405, 1425, 1445 level.
Comment :
FKLI ended first session lower in lesser volume traded as trader started to roll over to forward month contract 4 days ahead of expiry date to maintain their position. Hourly chart wise, market opened unchanged and test 2 tick higher before coming down lower to test support level with the reading suggesting a side way range bound downside biased market development.

20100825 1303 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2501, changed : -9 points, volume : high.
Bollinger band reading : downside biased.
MACD Histrogram : getting lower, seller testing support level.
Support : 2500, 2470, 2450 level.
Resistant : 2520, 2550, 2570 level.
Comment :
Decline in export data released lead FCPO to trade lower in ultra high volume transaction despite market opened higher and seller take the opportunity to start their program selling again pressed price lower tested support level but buyer seems putting effort to hold the 2500 defense line.
Hourly chart wise, price traded around the lower Bollinger band level with the reading suggesting a downside biased market development with possible pullback correction.

20100825 1000 Local & Global Economic News.

Malaysia: BNM says ringgit move will boost trade
Recent moves to allow the ringgit to be used more widely for trade settlement will bolster the country's trade with major Asian trading partners, the central bank said. "The recent changes in the foreign exchange administration rules are part of the liberalization process aimed at achieving greater efficiency in the conduct of international trade as well as promoting a conducive business," (Financial Daily)

Singapore: Bond sales beat record as economy fires, costs plunge
Singapore bond sales are accelerating as companies on an island vying for the title of world’s fastest-growing economy exploit the lowest funding costs in at least two decades to finance expansion. Temasek Holdings Pte. and CapitaLand Ltd. led borrowers that raised USD14.1bn this year, topping the record USD13.2bn of notes sold in 2001. (Bloomberg)

India: Curbing inflation is its priority
India’s central bank said controlling inflation is its top priority, a stance that may fuel speculation it will raise interest rates for the fifth time since mid-March. “Inflation containment may have to receive precedence over the other policy objectives,” the Reserve Bank of India said in its annual report. “Inflation has emerged as a major concern,” (Bloomberg)

Japan: Currency moves ‘one-sided’ as yen climbs
Japan’s Finance Minister Yoshihiko Noda said recent currency movements have “clearly” been one-sided as the yen climbed to its highest level since 1995 against the dollar and more than an eight-year high against the euro,, referring to the yen’s advance against the dollar and the euro. (Bloomberg)

EU: German exports, investment drove second-quarter GDP
Exports and investment fueled Germany’s record economic growth in the second quarter, a detailed breakdown of the data showed. Exports rose 8.2% from the first quarter and equipment investment increased 4.4%, the Federal Statistics Office in Wiesbaden said. Gross domestic product surged 2.2% when adjusted for seasonal swings. (Bloomberg)

US: Home sales plunge as tax credit wanes
Sales of existing houses plunged by a record 27% in July as the effects of a government tax credit waned, showing a lack of jobs threatens to undermine the US economic recovery. Purchases plummeted to a 3.83m annual pace, the lowest in a decade of record keeping, figures from the National Association of Realtors showed. (Bloomberg)

E.U: Industrial orders rose more than economists forecast in June . Orders in the 16 nation euro area increased 2.5% MoM from May, when they jumped 4.1% MoM, the European Union's statistics office in Luxembourg said. (Source: Bloomberg)

Germany: Exports, investment fueled economic growth in 2Q10 , a detailed breakdown of the data showed. Exports rose 8.2% QoQ from the first quarter and equipment investment increased 4.4% QoQ. GDP surged 2.2% QoQ when adjusted for seasonal swings. That's the fastest since records for a reunified Germany began in 1991. (Source: Bloomberg)

Ireland: Cut one step by S&P as bank rescue costs rise . Ireland's long-term sovereign credit rating was cut one step to AA by Standard & Poor's on concern about the rising cost of supporting the country's struggling banks. S&P raised its estimate for recapitalizing the banking system to as much as EUR 50b (USD 63b) from a previous estimate of as much as EUR 35b. (Source: Bloomberg)

20100825 0959 Malaysia Corporate News.

Stocks drop after sharp fall in July home sales
Stocks are closing lower after another disappointing report on housing renewed worries about the economy. The Dow Jones industrial average lost 134 points on Tuesday following news that sales of previously occupied homes fell last month to their lowest level in 15 years. The Dow dipped below 10,000 pts for the first time in seven weeks. The yield on the two-year Treasury note reached another record low. According to preliminary calculations, the Dow fell 134, or 1.3%, to 10,040. The Standard & Poor's 500 index fell 15, or 1.5%, to 1,052, while the Nasdaq fell 36, or 1.7%, to 2,124. Three stocks fell for every one that rose on the New York Stock Exchange, where volume came to 1.2bn shares. (Associated Press)

QL Resources allocates RM400m capex
Agro-based food manufacturer QL Resources has set aside RM400m in capital expenditure (capex) over the next two years, mainly to upgrade existing plants and machinery, and to develop new plants in Vietnam and Indonesia. Managing director Chia Song Kun said the investment would be used to further beef up its core businesses, namely integrated livestock farming, marine product manufacturing and palm oil activities. (Malaysian Reserve)

TNB to build coal-fired power plant in Manjung
Tenaga Nasional (TNB) has been given the go ahead by the Malaysian government to expand its generation capacity at Manjung, Perak, by another 1,00MW. The national power generator and transmission company announced that the coal-fired project will be undertaken on a build, own and operate basis with commissioning of the facility set for March 2015. TNB currently owns and operates a coal-fired 2100MW (3x700MW) facility on a man-made island at Manjung via its wholly-owned unit, Tenaga Janamanjung SB. (Malaysian Reserve)

IJM Land to launch properties worth RM1bn
IJM Land expects to launch new properties with a total gross development value (GDV) of RM1bn to RM1.2bn in the financial year ending 31 March (FY11), said chief executive officer and managing director Dauk Soam Heng Choon. “With the outlook of the property market looking more positive this year, we expect to launch a list of new properties during this financial year. Since April, we have already launched properties with a GDV of RM500m.” (StarBiz)

YTL’s Wessex may drop out of Klang River project
YTL Corp’s Wessex Water Ltd may no longer participate in the multi-billion ringgit project to rehabilitate and develop the polluted Klang River, sources said. Britain-based Wessex is a water treatment and sewerage specialist, which together with property developer I-Bhd, had been part of consortium bidding for the Selangor government project. It is understood that Wessex, together with another consortium and a company, had been chosen to work on different aspects of the project. The other consortium is TSS-Mako Engineering SB while the company is GJA Engineering & Construction SB. (StarBiz)

Firefly buys another 3 ATR72-500s
Malaysian Airline System subsidiary FlyFirefly SB (Firefly) will increase its present turboprop fleet with the purchase of three additional ATR72-500s, two which will be delivered in December 2010 and the third in January 2011. In a statement yesterday, Firefly said the latest purchase would increase its total turboprop fleet to 10. The new aircraft will enter into service one month from delivery date. (Financial Daily)

GenM minorities okay UK casinos buy from sister company
Genting Malaysia’s (GenM) minority shareholders yesterday approved the company’s proposed acquisition of the UK casino businesses from its sister company, Genting Singapore Plc. GenM’s major shareholder Genting and the parent group’s chairman and chief executive Tan Sri Lim Kok Thay (holding 0.28% of Genting Malaysia) did not vote at the EGM yesterday, being deemed interested parties in the transaction. (Financial Daily)

Bond: IDB to list USD3.5b sukuk bonds in KL and London. The Islamic Development Bank (IDB) will dual list USD3.5b of its sukuk bonds in Kuala Lumpur and London by the year-end. Of this amount, USD1.1b has already been issued to investors. (Source: The Star)

CIMB: Biggest stock in M'sia at RM58b. CIMB Group Holdings Bhd consolidated its position as the biggest stock on Bursa Malaysia for a second day, ahead of close rival Malayan Banking Bhd (Maybank), amid some mild selling pressure yesterday. (Source: The Star)

JCorp: Muhammad Ali: I made the decision to quit JCorp. The speculation on the immediate resignation of former president and CEO of Johor Corp (JCorp) ended on Tuesday, Aug 24 when Tan Sri Muhammad Ali Hashim revealed he was the one that made the decision. He said the decision was made due to the current environment that is not conducive for him to stay on. (Source: The Edge Financial Daily)

K-Star: Looks to raise funds. K-Star Sports Ltd, one of the China-based companies listed on Bursa Malaysia, is looking at a few options to raise funds for future expansion plans. It is looking at options such as rights issue, share placement and even a dual listing in Taiwan. (Source: The Star)

MAS: Firefly to double ATR fleet to fuel expansion. Turboprop operator Firefly is looking to double its fleet of ATR 72-500 aircraft from 7 to 14 by 2012. Firefly managing director Datuk Eddy Leong yesterday announced that the airline will be taking delivery of 3 more planes between December this year and January 2011. (Source: Business Times)

20100825 0945 Global Market News.

OIL: Crude lowest in 7-weeks as econ worries intensify
SINGAPORE, Aug 25 (Reuters) - Crude was steady below $72 on Wednesday, trading at seven-week lows, after sliding 2 percent a day earlier on fears that major economies may slip back into recession following dismal U.S. housing data. Last Wednesday, the EIA said U.S. combined commercial stockpiles of crude and refined products in the week to Aug. 13 hit the highest level since weekly records began in 1990, and the highest level since 1980 according to the agency's monthly data.

COMMODITY MARKETS: US housing sales slide slams oil, copper, grains
NEW YORK, Aug 24 (Reuters) - A huge drop in U.S. home sales on Tuesday sent slew of commodities tumbling, including oil, copper, grains and coffee futures, as the economic outlook and demand prospects dimmed, but a sliding dollar provided some support for commodities.
"Existing home data was worse than expected and is putting pressure on everything," said Tom Bentz, broker at BNP Paribas Commodity Futures Inc in New York.

GLOBAL MARKETS: Stocks drubbed, yen gains as US housing teeters
NEW YORK, Aug 24 (Reuters) - World stocks fell to one-month lows on Tuesday and the yen hit a 15-year high as dismal U.S. housing data added to fears the global economic recovery would fizzle out.
"The wheels are coming off the recovery," said Keith Springer, president of Capital Financial Advisory Services in Sacramento, California.

Euro zone industrial orders surge in June
BRUSSELS, Aug 24 (Reuters) - Euro zone industrial new orders rose slightly more than expected during the month of June, data showed on Monday, boding well for economic growth in the third quarter of 2010.
Industrial orders in the 16-nation currency zone increased 2.5 percent month-on-month for a 22.6 percent annual gain, European Union statistics office Eurostat said.

ANALYSIS-Dollar becomes funding currency as yields tumble
NEW YORK, Aug 23 (Reuters) - The dollar is quickly becoming a funding currency for purchases of higher yielding assets as U.S. Treasury yields slump and the U.S. economic outlook remains uncertain.
While the dollar is still far from surpassing the Japanese yen and the Swiss franc as the world's funding currency of choice, investors are no longer rushing to buy the greenback as a safe haven any time trouble erupts worldwide.

World stocks slide; yen buoyant
LONDON, Aug 24 (Reuters) - World stocks fell as investors fretting about an anaemic global recovery dumped risky assets and fled into government debt and other safe-haven assets including the yen, which hit a 15-year high against the dollar.
"If the U.S. housing data today is weak, that could take the market down," said Justin Urquhart Stewart, director at Seven Investment Management. "In light volumes, it's reacting to every bit of news, and the next economic news could be bad. M&A news has had a disproportionate effect."

20100825 0944 Soy Oil & Palm Oil Related News.

1:50 pm SGS export data :  Down 14.9% to 939,456 tonnes for the period of 1~25 Aug 2010.
10:07 am ITS export data : Down 7.6% to 992,319 tonnes for the period of 1~25 Aug 2010.

Soy-product futures ended mixed, with the unwinding of meal/oil spreads supporting soyoil futures. Soymeal followed soybeans lower on seasonal pressure, while soyoil climbed as traders reduced risk exposure in soymeal by liquidating some meal/oil spreads. December soyoil settled 0.24 cent, or 0.6%, higher at 40.06 cents per pound. December soymeal ended $5.20, or 1.8%, lower at $289.70 per short ton.(Source: CME)

Palm oil drops 0.6 pct on technicals, weak demand
KUALA LUMPUR, Aug 24 (Reuters) - Malaysian crude palm oil futures fell 0.6 percent on technical selling and a slowdown in demand thanks to a surge in cash prices.
"Looking at the current scenario, the physical market is a bit quiet. Destination interest is mute for the time being," said a trader in Kuala Lumpur.

20100825 0933 FCPO EOD Daily Chart Study.(24 Aug 2010)

FCPO closed : 2510, changed : -50 points, volume : higher.
Bollinger band reading : correction range bound little downside biased.
MACD Histrogram : getting lower, seller increase exposure.
Support : 2520, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
Continue lower soy oil prices due to recovering US Dollar lead FCPO fall lower with increasing volume transaction traded ahead of export data announcement. Daily chart form a wide range down bar candle indicate seller getting aggressive with their program selling activities toward the 50% fibonacci retracement level. Outlook turned into a correction range bound little downside biased market reading.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with quick cut loss and profit target.

Tuesday, August 24, 2010

20100824 1810 FKLI EOD Daily Chart.

FKLI closed : 1399, changed : -2 points, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : getting higher, buyer defending.
Support : 1395, 1385, 1375 level.
Resistant : 1405, 1425, 1445 level.
Comment :
Finally a decline day for FKLI after 8 straight days of climb with lesser volume traded taking some rest. Daily chart form a classical doji market candle hint for a potential correction to take place with the reading remain upside biased.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100824 1304 FKLI Mid Day Hourly Chart Study,

FKLI closed : 1401.5, changed : +0.5 point, volume : low.
Bollinger band reading : range bound upside biased.
MACD Histrogram : recovering, buyer still in control.
Support : 1395, 1385, 1375 level.
Resistant : 1405, 1425, 1445 level.
Comment :
1 tick higher FKLI traded in quiet volume for the first session today after tested near support level and recovered. Hourly chart wise, market seems supported along the middle Bollinger band with reading suggesting a range bound upside biased development.

20100824 1253 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2545, changed : -15 points, volume : high.
Bollinger band reading : side way range bound little downside biased.
MACD Histrogram : weakening, seller testing market strength.
Support : 2520, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
Lower overnight soy oil futures price plus a stronger Ringgit lead FCPO to end the first session declined lower in high volume traded after testing near support and resistant level. Hourly chart shows price traded along and below middle Bollinger band with the band width getting narrowing suggesting a side way range bound little downside biased market development.

20100824 1028 Local & Global Econimic News.

Malaysia: Use of ringgit to expand Bank Negara's recent foreign exchange (forex) liberalization measures coupled with China allowing yuan-ringgitt trade will gradually reduce the dependency on the US dollar and enhance trade financing efficiency, experts said. (StarBiz)

Singapore: Inflation accelerates on car prices, electricity
Singapore’s inflation accelerated in July as higher oil costs pushed up electricity tariffs and government quotas on vehicle licenses boosted car prices. The consumer price index climbed 3.1% from a year earlier, Singapore’s Department of Statistics said in a statement. (Bloomberg)

Thailand: Economy grows more than forecast as exports gain
Thailand’s economy expanded more than estimated last quarter as surging exports countered the impact of political turmoil, supporting gains in the nation’s currency and stocks. Gross domestic product rose 9.1% in the three months through June from a year earlier, the government said in Bangkok. (Bloomberg)

Vietnam: Inflation slowed for fifth month in August
Vietnam’s inflation cooled for a fifth month in August, a slowdown that may ease concerns the government’s devaluation of the dong will stoke price pressures. Consumer prices climbed 8.18% this month from a year earlier, according to figures released by the General Statistics Office in Hanoi, down from 8.19% in July. (Bloomberg)

EU: Consumer confidence unexpectedly improved in August
European consumer confidence unexpectedly improved in August after economic growth accelerated to the fastest pace in four years in the second quarter. An index of sentiment in the 16-nation euro area rose to minus 12 from minus 14 in July, the European Commission said in an initial estimate. (Bloomberg)

EU: Hungary leaves main rate unchanged for fourth month
Hungary left its benchmark interest rate unchanged for a fourth month and said inflation and debt risks worsening following the collapse of talks with the International Monetary Fund may prompt a rate increase. (Bloomberg)

UK: Economy to take pounding
The British pound’s biggest rally in 14 months is in jeopardy as Prime Minister David Cameron’s budget cuts begin to curb economic growth. Foreign-exchange forecasters are the most pessimistic on the pound since May 2009, when Standard & Poor’s said the UK was at risk of losing its AAA credit rating. (Bloomberg)

US: Housing slide may drag economy into recession Housing led the US out of seven of the last eight recessions but it may kill the recovery this time. Home sales collapsed after a federal tax credit for buyers expired in April. Since then, the manufacturing-led expansion, which began in the second half of 2009, has been waning, with jobless claims rising and factory orders falling. (Bloomberg)

20100824 1027 Malaysia Corporate News.

QL Resources lays hands on rival
QL Resources yesterday acquired 11m shares, or 23.29% of Lay Hong, in an off-market transaction. The identity of the seller was not disclosed but it is believed to be London Biscuits. All three players are in the food business. The common denominator in the three companies is the need for eggs, which is what Lay Hong offers. Founded in the 1970s and listed since October 1994, Lay Hong is mainly involved in the production of eggs, broiler farming and feedmill activities. (Financial Daily)

Boustead 2Q net profit surges 212% to RM146.5m
Boustead Holdings’ net profit for the second quarter (2Q) ended 30 June 2010 surged 212% to RM146.5m from RM46.9m a year ago, mainly due to stronger palm oil prices and higher sales volume. Its revenue for the quarter increased to RM1.42bn from RM1.28bn in 2009, with earnings per share (EPS) of 15.68 sen. Boustead declared a second interim single tier dividend of 10 sen per share. For the six months ended 30 June, Boustead’s net profit jumped to RM236.7m from RM107.8m, on the back of a 20% increase in revenue to RM2.98bn from RM2.49bn in 2009. EPS came in at 25.45 sen. (Financial Daily)

HLBB gets shareholders’ nod to adjourn EGM
Hong Leong Bank (HLBB) yesterday obtained its shareholders’ approval to adjourn its EGM to a yet-to-bedetermined date. The EGM was to have been for shareholders to consider its proposed acquisition of the entire assets and liabilities of EON Capital for RM5.06bn cash, or RM7.30 per share, and a proposed renounceable rights issue of shares to raise gross proceeds of about RM1.6bn. This follows EON Cap’s decision last week to discontinue its EGM and to issue a fresh notice to convene an EGM at a later date to consider the proposed disposal. (Financial Daily)

Nadzmi does not rule out RM500m cash injection for Lotus
Proton Holdings chairman Datuk Seri Mohd Nadzmi Mohd Salleh did not rule the possibility of its subsidiary, Lotus Group International Ltd, requiring an additional RM500m over the next two years to develop new models. Nadzmi also confirmed reports that about RM290m had been advanced to Lotus. It was reported that Lotus required the cash injection before it could repay all amounts due to Proton. (Financial Daily)

Salcon acquires water treatment company in China for RM20.3m
Salcon via its unit Salcon Jiangsu (HK) Co Ltd has acquired 100% equity interest in China’s Yizheng Rong Xing Wastewater Treatment Company Ltd for RM20.28m. The acquisition is further to the signing of a water consolidation cooperation agreement on 1 Dec 2009, with the government of Yizheng City, China, for the integration and consolidation of water and wastewater works in Yizheng city, said Salcon in a statement yesterday. This is Salcon’s eighth concession in the Jiangsu Province, China. (Financial Daily)

Xingquan expects double-digit earnings growth to continue
Xingquan International Sports Holdings Ltd CEO Wu Qing Quan, who expresses confidence in the company sustaining a double-digit earnings growth in the current financial year ending 30 June 2011 (FY11), says he has no intention of divesting his equity stake in the sport shoemaker in China. Wu, who is the single largest shareholder with a 58.4% stake in Xingquan, said he would retain his shareholding, adding that any interested investor wanting to acquire a substantial stake would have to buy on the open market. (Financial Daily)

UMW buys stake in China oil company
UMW Holdings’ wholly-owned unit UMW China Ventures (L) Ltd will spend USD24.68m (RM77.5m) to buy 46,700 preferred shares, representing a 4.67% stake, in Hilong Holdings Ltd (HL Cayman) from owner Zhang Jun. In a filing to the exchange yesterday, UMW said the purchase would create value, synergies and future business opportunities for the group as the Hilong group undertakes drilling related activities in countries like China, Ecuador, Kazakhstan and others. (Malaysian Reserve) 

20100824 1020 Global Market News.

Nikkei leads Asia stks down,euro at 6-wk low
SINGAPORE, Aug 24 (Reuters) - Asian stocks fell, with Japan's Nikkei index dipping below a key support level as investors fretted about an anaemic global recovery, while the euro hit a six-week low against the dollar.
"Selling by hedge funds and European investors appears to be hurting stocks and if the Nikkei goes further below 9,000, unloading by individual investors will also likely accelerate," said Masayuki Otani, chief market analyst at Securities Japan Inc.

M&A activity boosts world stocks; oil firmer
LONDON, Aug 23 (Reuters) - World stocks rose from last week's one-month low on Monday as a slew of corporate takeover activity and an encouraging euro zone business survey helped ease concerns about a global economic slowdown.
Mining shares gained as financial markets bet Australia's inconclusive weekend elections would lead to a change of government, spelling the end to a plan to impose tax on major iron ore and coal mines.
In the corporate sector, increasing merger and acquisition activity is boosting investor sentiment as companies utilise high cash balances and historically low borrowing costs to look for bargain buys and expand their business.

20100824 1018 Soy Oil & Palm Oil Related News.

Soy product futures ended mixed, with meal/oil spreading buoying soymeal futures. Soymeal followed soybeans higher on strong demand, while soyoil came under pressure from ample supplies and spillover pressure 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 39.82 cents per pound. December soymeal ended $1.80 or 0.6% higher at $294.90 per short ton. (Source: CME)

China July Soybean Imports 4.95 Mln Tons, Up 12.5% On Year(Source: CME)
China's soybean imports in July rose 12.5% on year to 4.95 million metric tons, the General Administration of Customs said Monday. For the first seven months of the year, soybean imports rose 16.2% to 30.76 million tons. July soybean imports fell 20% from the all-time record volume imported in June. China is the world's biggest importer of soybeans and gets most of its supplies from the U.S., Brazil and Argentina, the world's leading soybean producers.

Brazil 2009-10 Soy Sales Steady At 85% As Of Aug. 20 -Celeres(Source: CME)
Brazil's soy sales remained steady at 85% of the 2009-10 soybean crop as of Friday, 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., saw sales unmoved at 85% compared to the week before. Sales were also down from 90% at the same time a year ago. Farmers in Mato Grosso, Brazil's No. 1 soy-producing state, sold 96% of their soy as of Friday, steady from the week before and 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. For the upcoming 2010-11 crop, Brazil's farmers have also begun selling, and they often swap beans for other items such as seeds or fertilizers. Celeres said that 12% of the 2010-11 crop was sold as of Friday, from 11% in the previous week and 11% at the same time a year ago. Brazil finished harvesting the 2009-10 soy crop in May.
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.

Palm oil off 3-week lows, ringgit weighs
KUALA LUMPUR, Aug 23 (Reuters) - Malaysian crude palm oil futures ended 0.6 percent higher on Monday after touching fresh three-week lows earlier in the session over concerns that a stronger ringgit will hurt refiner margins.
Traders are on the lookout for new cues after palm oil futures last week notched their biggest weekly fall since  October as traders took profits from a recent weather-induced rally in agriculture markets as well as lower palm oil exports.
"The market was oversold so there's a bit of retracement, but the trading range is between 2,500 and 2,600 ringgit," said a trader with a foreign brokerage in Kuala Lumpur.

Argentine soy farmers fear curbs on herbicide use
BUENOS AIRES, Aug 20 (Reuters) - Lawmakers in leading soy-growing provinces in Argentina are considering proposals to limit the use of the herbicide glyphosate, worrying farmers but drawing praise from environmental activists.
The lower house of the provincial Congress of Santa Fe, the No. 2 soy province, has approved a bill that would limit glyphosate spraying close to urban areas. In Buenos Aires, the No. 3 soy province, a local senator has presented a proposal to ban the herbicide by 2019.