Thursday, September 30, 2010

20100930 1848 FKLI EOD Daily Chart Study.

FKLI closed : 1464.5, changed : +5.5 points, volume : low.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : reversed upward, buyer seems eager to stay.
Support : 1458, 1445, 1425 level.
Resistant : 1470, 1485, 1500 level.
Comment :
FKLI expired recorded gain in low volume participation rebounding from the middle Bollinger band level. Daily chart formed a small body up bar candle traded side way range bound along middle Bollinger band level with the reading suggesting a side way range bound little 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.

20100930 1846 FCPO EOD Daily Chart Study.

FCPO closed : 2730, changed : +32 points, volume : high.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : getting weaker, buyer reducing exposure.
Support : 2720, 2700, 2670, 2650 level.
Resistant : 2750, 2770, 2800 level.
Comment :
FCPO recovered most of  yesterday losses recorded gain in increasing volume transaction after both ITS and SGS export cargo surveyor released improved month to month export data. Daily chart shows that market still traded range bound within a narrowing Bollinger band indicates that market is still in consolidation mode  with the reading suggesting a correction range bound upside biased market development.
When to buy : buy at support or weakness with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100930 1545 Local & Global Market News.

Malaysia: Ringgit hits new high against the greenback
The Ringgit rose to a fresh 13-year high against the ailing USD yesterday, tracking gains by other regional currencies, as the prospect of stronger economic growth fuelled speculation of further inflows from overseas funds. The Ringgit was traded at 3.0846 against the greenback yesterday, the strongest level since October 1997. (Starbiz)

Taiwan: To weigh interest rate amid property threat
Taiwan’s central bank may discuss raising its benchmark interest rate tomorrow for the second time this year after the island’s economic recovery and the threat of a property bubble added to the case for higher borrowing costs. Governor Perng Fai-nan will increase the benchmark by 0.125 percentage point to 1.5% after the policy board meets, according to 11 of 14 economists surveyed. (Bloomberg)

China: Manufacturing accelerates for a second month
Manufacturing accelerated in China for a second straight month in September, adding to signs the fastestgrowing major economy is stabilizing after policy makers curbed lending in an effort to avert asset bubbles. The purchasing managers’ index released rose to 52.9, the highest level in five months, from 51.9 in August. The data are seasonally adjusted and readings above 50 indicate an expansion. (Bloomberg)

Spain: Credit rating set for Moody’s cut on economy
Spain’s top AAA credit rating, held since 2001, probably will be cut one level by Moody’s Investors Service as the Euro region’s fourth-biggest economy struggles to grow, according to investors managing about USD700bn. Five out of eight money managers surveyed predicted a one-step reduction to AA1, with the rest forecasting a two-level cut to AA2. The decision may come this week after Moody’s put Spain’s debt on review for a possible downgrade on 30 June, saying it would conclude the analysis within three months. (Bloomberg)

EU: European economic confidence unexpectedly improves
European confidence in the economic outlook unexpectedly improved this month as executives and consumers weathered tougher government budget cuts by countries struggling to convince investors that they won’t need external aid. An index of executive and consumer sentiment in the 16 euro nations rose to 103.2, the highest since January 2008, from a revised 102.3 in August, the European Commission in Brussels said. (Bloomberg)

US: Fed presidents far from unanimous on need for further easing
Regional Federal Reserve presidents showed they’re far from unanimous on whether the central bank should try to boost flagging US growth with a second round of unconventional monetary easing. The range of views shows that if Chairman Ben S. Bernanke aims to restart Treasury purchases in November, as some economists project, he may have to do so over the objections of several central bank officials. (Bloomberg)

20100930 1544 Malaysia Corporate News.

AZRB likely to bag RM300m hospital job
AZRB has emerged as the frontrunner to win a RM300m job to build a 300-bed hospital in Kuantan, Pahang for Universiti Islam Antarabangsa, sources said. It is understood that the authorities are now at the final stage of awarding the project and the Terengganu-based construction outfit is likely to bag the job. (Financial Daily)

 Iskandar may get new CEO
Datuk Syed Mohamed Ibrahim, the property head at DRB-HICOM, is slated to join Iskandar Investment as its CEO, replacing Arlida Ariff who currently holds the post. Arlida's contract expires at the end of this year and it is believed that her term will not be extended, sources said. (BT)

Maybank sees bigger foreign contribution
Maybank expects its international operations from countries such as Singapore and Indonesia to contribute 40% to the group’s net profit by 2015. For the financial year ended 30 June, 2010, international operations contributed 21% to the group’s net profit. (StarBiz)

Sumitomo ventures into Sarawak aluminium smelter project
Sumitomo Corp will take part in an aluminium smelting project in Sarawak via its proposed acquisition of a 20% stake in Press Metal’s unit Press Metal Sarawak SB. The capacity of the plant is 120,000 tonnes per year and will be completed by end of 2010. Total investment is USD300m. (Financial Daily)

MAS sees new aircraft delivery next month
MAS is expected to take delivery of 35 Boeing 737-800 aircraft next month. Its senior general manager in sales and marketing Datuk Bernard Francis said some of the aircraft would be based at KLIA and MAS would increase flights to South Asia, Asean and China. (StarBiz)

Tanjung unit gets extension
Tanjung Offshore wholly-owned subsidiary, Tanjung Offshore Services SB has been approved and awarded a contract extension by Petrofac (Malaysia PM-304) Ltd that is valued at RM110m. The contract extension was for the provision and supply of mobile offshore production unit for Cendor Field, Block PM-304 for an extended period effective 24 Sept to the second quarter of 2013. (StarBiz)

Kimlun awarded RM70m project
Kimlun Corp wholly-owned subsidiary Kimlun SB was awarded a RM70m contract for the construction of main building works for Marlborough College East in Mukim Pulai, Iskandar Malaysia. The contract was awarded by MRCB’s wholly-owned unit, MRCB Engineering SB. (StarBiz) 

20100930 1530 Global Market News.

Dollar stuck near lows, Asian stocks slip
HONG KONG, Sept 30 (Reuters) - The dollar was stuck near an eight-month low, ground down by expectations of more Federal Reserve easing, while Asian stocks pulled back slightly from a two-year high as markets took a breather from September's strong rally.
The dollar is down 8.5 percent this quarter against a basket of world currencies, its worst quarter in over eight years, as a sluggish economy and stubbornly high unemployment levels have fueled expectations of another round of asset buying by the Fed.

OIL: Crude steady after 2 pct gain on EIA data
TOKYO, Sept 30 (Reuters) - U.S. crude futures stood little changed on Thursday to hold a gain of more than 2 percent from a day earlier, helped by data showing a drop in U.S. crude and product inventories.
A tightening in product stockpiles -- just as U.S. refiners were stepping up seasonal maintenance and with more than a month to go before the hurricane season winds down -- prompted traders to bid up prices.

GLOBAL MARKETS: Dollar sags as monetary stimulus seen in pipeline
NEW YORK, Sept 29 (Reuters) - Rising expectations that central banks will step up monetary stimulus to support fragile economies drove the dollar to a five-month low against the euro on Wednesday and helped gold extend its record-breaking rally.
"The dollar currently is in a 'lose-lose' situation where if U.S. data is disappointing, it increases the prospects of Fed easing, and that weighs on U.S. rates and the dollar," said Brian Dolan, chief currency strategy at in Bedminster, New Jersey.

PRECIOUS-Gold hits record highs in anticipation of more QE
LONDON, Sept 29 (Reuters) - Gold prices rallied to record highs in Europe on Wednesday on fears moves by the Federal Reserve to tackle the sluggish U.S. economy would undermine the dollar, boosting investment in bullion as an alternative asset.
Spot gold hit a record $1,313.20 and was bid at $1,308.60 an ounce at 0953 GMT, against $1,307.40 late in New York on Wednesday. U.S. gold futures for December delivery rose $1.80 an ounce to $1,310.10.

FOREX-Dollar toils on rising expectations of more Fed easing
LONDON, Sept 29 (Reuters) - The ailing dollar fell more on Wednesday as sliding U.S. Treasury yields and below-forecast U.S. data fuelled expectations that U.S. monetary policy would need to be further relaxed.
Mounting speculation that the U.S. Federal Reserve could embark on a second round of quantitative easing (QE) knocked the dollar to a five-month low against the euro and a two-year trough against the Australian dollar.

Dollar hits lowest since Jan, bracing for QE
LONDON, Sept 29 (Reuters) - The U.S. dollar extended its steep decline on Wednesday, clocking losses of more than five percent for the month, as investors prepared for the Federal Reserve to print more money to lift the weakening U.S. economy.
Mounting speculation the Fed will embark on a second round of quantitative easing -- expanding its balance sheet to buy bonds and others assets -- to prevent a double-dip U.S. recession sent the dollar to a five-month low against the euro and a two-year trough against the Australian dollar.

Asian stocks at 2-yr high, dollar on defensive
HONG KONG, Sept 29 (Reuters) - Asian stocks hit a two-year high and the dollar was stuck near a seven-month low after poor U.S. data reinforced expectations the U.S. Federal Reserve will take more action to help the struggling economy.
"The Nikkei's rising on the slightly weaker yen, and there's also probably some window-dressing ahead of the end of the first half of the business year," said Norihiro Fujito, general manager at Mitsubishi UFJ Morgan Stanley Securities.

20100930 1529 Soy Oil & Palm Oil Related News.

ITS export up 21.3% to 1,479,602 tonnes for the period of 1~30 Sep 2010
SGS export up 30% to 1,479,138 tonnes for the period of 1~30 Sep 2010

Soy product futures ended lower, stumbling in unison with soybeans. Soyoil futures came under additional pressure from news China would begin selling edible oils from its reserves to cool rising domestic prices, analysts said. Soymeal followed beans lower, with traders becoming less fearful of tight nearby supplies, as the availability of soybeans for crushing improves on the expansion of the fall harvest, analysts said. December soyoil settled 0.49 cents or 1.1% lower at 44.44 cents per pound. December soymeal ended $1.00 or 0.3% lower at $307.50 per short ton.(Source: CME)

China To Hold First 2010 Edible Oil Reserve Auction (Source: CME)
Chinese grain authorities will auction edible oil reserves to ensure sufficient supply to the market and stabilize prices, said the state-backed China National Grain and Oil Trade Center. Edible oils like palm oil and soyoil have steadily rallied on the back of dwindling global stockpiles and surging domestic demand, and amid sharp gains in food prices in China and abroad. The date, offer volumes, oil types and other details of the edible-oil auction will be announced later, the think tank, an arm of the State Grain Reserves Bureau, said in a statement. The auction, China's first this year, would also clear old edible-oil stocks dating from 2008, according to analysts.
Most-active palm oil futures on the Dalian Commodity Exchange have risen by 18% and soyoil by 15% in the last three months, outstripping the 9% increase of bellwether soybean futures. Facing dwindling stocks, soy crushers in China's northeastern producing provinces were in consultation with state grain authorities earlier this month on a potential soybean reserve sale. However, with the new soybean crop already half harvested and set to be completed next month, the need for a soybean auction has abated, analysts said. China has already been holding regular auctions of millions of tons of corn, wheat and rice reserves to hold down prices.

SYDNEY, Sept 29 (Reuters) - Australia's biofuel production is forecast to more than double by 2015 as new capacity is installed and demand for alternative fuels increases, a private consultancy forecast in a report on Wednesday. Australia's biofuel annual capacity is forecast to rise to 1.519 billion litres by 2015 from 636 million litres this year, APAC Biofuel Consultants said, adding that this would see more demand for sugar cane and soybeans as biofuel feedstocks.

WASHINGTON, Sept 23 (Reuters) - The U.S. Environmental Protection Agency has placed canola oil on an equal footing with soyoil, ruling that it emits low enough greenhouse gas levels to qualify for the U.S. mandate to increase renewable fuel production. In a final decision signed on Wednesday, the EPA said canola oil biodiesel met the lifecycle greenhouse gas emission reduction level of 50 percent

China to sell vegoil reserves -state grain body
BEIJING, Sept 29 (Reuters) - China will release some of its temporary vegetable oil reserves via public bidding to bolster  market supplies and to stabilise prices, China's State Grain Administration said.
The exact volume would be announced later, the administration said, without giving further details.

Mixed sowings tighten EU rapeseed mkt, imports eyed
PARIS, Sept 28 (Reuters) - Rapeseed supply in Europe is set to tighten further after a smaller harvest this year and a mixed sowing campaign for 2011, which may prompt more soybean and palm oil imports to satisfy biofuel and food demand, analysts said.
The rapeseed crop in the European Union is estimated to have fallen by some 1 million tonnes versus 2009 to around 20 million tonnes, and sowing for the next harvest has been hampered in major producers Germany and Poland by damp conditions.

U.S. soy drops 0.5 pct, corn slips below $5/bsh
SINGAPORE, Sept 29 (Reuters) - Chicago soybean futures slid half a percent, falling further from Monday's 13-month top as improved sowing outlook in South America and harvest of a record U.S. crop weighed on the market.
"The soy market is facing up to what is possibly a record U.S. crop, plus there has been some improvement in South American weather conditions," said Brett Cooper, a senior manager of markets at FCStone Australia.

US Harvest-Standing water a concern for corn, soy in Minnesota
CHICAGO, Sept 28 (Reuters) - Big rains last week in Minnesota left standing water in some farm fields and created conditions in which mold can thrive, possibly reducing corn and soybean yields by as much as 10 percent, agronomists said on Tuesday.
Dry weather in the U.S. Midwest allowed farmers in much of the United States' top growing region to harvest corn at the fastest pace in at least 28 years.

Wednesday, September 29, 2010

20100929 1815 FCPO EOD Daily Chart Study.

FCPO closed : 2698, changed : -39 points, volume : high.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : turned downward, buyer reducing exposure and taking profit.
Support : 2670, 2650, 2620 level.
Resistant : 2700, 2720, 2750 level.
Comment :
FCPO recorded decline in higher volume participation following a lower soy oil futures price triggered buyer to realise their profit and reducing exposure. Daily chart shows that market opened and continue to test lower support level closing 2 ticks below 2700 phsychological support turned resistant level formed a down bar candle with the reading suggesting correction range bound market after price opened touched above upper Bollinger and during Monday.
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.

20100929 1814 FKLI EOD Daily Chart Study.

FKLI closed : 1459, changed : +7 points, volume : low.
Bollinger band reading : side way range bound.
MACD Histrogram : getting lower, buyer seller still battling.
Support : 1458, 1445, 1425 level.
Resistant : 1470, 1485, 1500 level.
Comment :
10 points range market FKLI closed higher in relatively low volume participation following regional market that closed positively. Daily chart wise, market opened higher and traded range bound testing support and resistant formed a doji bar candle ended just little above middle Bollinger band support level. Reading still suggesting a side way range bound quiet market development ahead of the expiry date as trader switch to next month Oct 2010 contract.
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.

20100929 1248 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1462.5, changed : +10.5 points, volume : low.
Bollinger band reading : side way range bound.
MACD Histrogram : turned rising, buyer still at advantage.
Support : 1458, 1445, 1425 level.
Resistant : 1470, 1485, 1500 level.
Comment :
Higher overnight US market closed lead FKLI to opened and tested higher in low volume participation ended the first session recorded gain in sync with a positive regional market development. Hourly chart wise, market opened higher and hovering near middle Bollinger band level with the reading call for a side way range bound market testing support and resistant level.

20100929 1245 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2714, changed : -23 points, volume : high.
Bollinger band reading : side way range bound.
MACD Histrogram : getting lower, seller testing market as buyer reducing exposure.
Support : 2700, 2670, 2650 level.
Resistant : 2720, 2750, 2770 level.
Comment :
FCPO eased lower in higher volume transaction in tandem with a retracing downward soy oil futures price plus a higher projection on 2011 crude palm oil production news. Hourly chart shows that market opened below middle Bollinger band support that now turned resistant level with the reading suggesting a side way range bound market testing lower support level.

20100929 1026 Global Economics News.

South Korea: Seeks to reduce fiscal deficit in 2011
South Korea’s government plans to cut the nation’s fiscal deficit next year after an economic recovery boosted prospects for tax revenue. Total spending will rise 5.7% to 309.6 trillion won (USD269.4bn) while tax revenue will grow 8.2% to 314.6 trillion won, the Ministry of Strategy and Finance said in its budget proposal for 2011 released in Gwacheon. (Bloomberg)

Japan: Could benefit from strong yen, Aide Mizuno says
Japan should consider ways to benefit from a strong currency because the yen is likely to stay expensive against the dollar in the medium term, a government official said. “Japan should change its structure to raise living standards using the strong yen,” by encouraging overseas mergers and acquisitions and purchasing mining rights for natural resources, Kazuo Mizuno, deputy director-general of economic assessment at the Cabinet Office, said. (Bloomberg)

Japan: China's rare-earth ban would hurt, Kaieda says
China’s “de facto” ban on exports to Japan of rare earths, a group of 17 metals used in weapons, hybrid vehicles and laptop computers, may have a “big impact” on Japan’s economy, Japanese Economy Minister Banri Kaieda said. China’s Ministry of Commerce spokesman Chen Rongkai said that China has not imposed such a ban, repeating a stance he made last week, after media reports said China was restricting shipments. (Bloomberg)

UK: Growth fueled by jump in spending, investment
The UK economy’s fastest quarter of growth in nine years was fuelled by rebounding consumer spending and inventories and the biggest jump in government spending since 2008. GDP expanded 1.2% in the three months through June from the first quarter, unrevised from a previous measurement, the Office for National Statistics said in London. (Bloomberg)

US: Home prices recede as tax credit expiration hurt sales
Home prices in 20 US cities rose at a slower pace in July from a year earlier as the end of a government tax credit hurt sales. The S&P/Case-Shiller index of property values increased 3.2% from July 2009, the smallest yo- y gain since March, the group said in New York. The gauge is a three-month average, which means the July data are still being influenced by transactions in May and June that may have benefitted from the incentive. (Bloomberg)

US: Consumers lose confidence on jobs gloom
Mounting gloom over the outlook for jobs and wages caused American consumers to lose confidence in September, indicating spending will take time to recover. The Conference Board’s sentiment index declined to 48.5 this month, the weakest level since February, according to figures from the New York-based private research group. Another report showed home prices cooled, hurt by a slump in sales following the end of a government tax incentive. (Bloomberg)

20100929 1025 Malaysia Corporate News.

Selangor water issue is still uncertain
The Federal Government understands the urgency to speed up the water restructuring process in Selangor and is working towards resolving the matter, said Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui. “We are taking steps to resolve this as soon as possible,” he said. “No decision had been made on water tariff hikes yet. Negotiations are still ongoing. As far as tariffs are concerned, the Government will consult and communicate with members of the public first before we talk about a hike,” Chin said. At a separate meeting, Selangor Menteri Besar Tan Sri Kahlid Ibrahim said the state “has not given permission” for any tariff hike. It is understood approval from both governments are needed for a hike to materialize. (starbiz)

Hong Leong closer to EONCap takeover
Hong Leong Bank is a step closer to taking over EON Capital (EONCap) after the latter's shareholders approved the takeover bid on Monday, group managing director Yvonne Chia said. The EGM saw 97% of EONCap's shareholders supporting the RM5.06bn offer by Hong Leong Bank to buy its assets and liabilities. Voting was done by way of poll. But the merger is not a done deal yet as it needs a decision from the court. Meanwhile, Bank Negara Malaysia has denied Ng Wing Fai a seat on the board of EON Capital (EONCap) in the latest blow to Hong Kong-based Primus Pacific Partners that is now resisting Hong Leong Bank’s takeover bid. (BT)

MAS unit, Sabena in aircraft component JV
Malaysia Airlines said its aerospace engineering unit formed a joint venture with Sabena Technics SA to provide aircraft component repair and overhaul services in Malaysia. The venture would offer avionics, electrochemical systems, fuel systems and engine components for the B737 new generation, A320 and ATR aircraft types. (Starbiz)

Proton and Fernandes fight over Lotus name
Proton Holdings, which owns British-based Group Lotus, squared up for a fight with racing team boss Datuk Seri Tony Fernandes on Monday over the right to use the evocative brand in Formula One. The Malaysian national carmaker said in a statement that it had terminated a licence for Fernandes’ 1Malaysia Racing Team to compete as Lotus Racing and would “take all necessary steps” to stop him using the Team Lotus name from 2011. Fernandes, the Malaysian entrepreneur who announced at last weekend’s Singapore Grand Prix that Lotus Racing would compete as Team Lotus next season, fired back a broadside of his own. Lotus Racing chief executive Riad Asmat said in a statement that the team had issued proceedings in the London High Court “for a declaration that Team Lotus Ventures has the rights to use the Team Lotus name and everything associated with that brand in relation to Formula One’’. (FinancialDaily)

Astro unit faces RM1.3bn suit
Low-profile television support equipment provider, AV Asia SB, yesterday filed a suit against Measat Broadcast Network Systems SB (MBNS) and another company for alleged breach of a mutual non-disclosure agreement, claiming some RM1.3bn in loss of potential profits. In its writ of summons, AV Asia alleged that MBNS, a subsidiary of Astro, had used the former’s confidential information with regard to a technical solution to transmission disruption during rain to launch its recent product, Astro B.yond high definition television. (FInancialDaily) 

20100929 0912 Global Market News.

OIL: Crude gains as U.S. stockpiles drop
SINGAPORE, Sept 29 (Reuters) - Oil rose on Wednesday after an industry report showed crude and winter fuel stockpiles declined last week in top-consumer the United States, reducing a surplus that has weighed on market sentiment for months.
U.S. inventories of distillates, a fuel category that includes heating oil and diesel, unexpectedly dropped by 2.8 million barrels in the week to Sept. 24, pulling stockpiles 3.5 million barrels below year-ago levels, the American Petroleum Institute (API) reported late on Tuesday.

COMMODITY MARKETS: Gold extends record high streak, grains dive
NEW YORK, Sept 28 (Reuters) - A sliding dollar on Tuesday helped gold extend a record-setting streak that has seen the shiny metal gain nearly 20 percent this year and buoyed other commodities by discounting them for non-U.S. investors.
"The dollar falling has money fleeing into anything (such as) gold, energy," said Richard Ilczyszyn senior market strategist at Lind-Waldock in Chicago.

GLOBAL MARKETS: Dollar, pound fall, gold up on stimulus hopes
NEW YORK, Sept 28 (Reuters) - The U.S. dollar and the British pound fell against the euro on Tuesday as speculation rose those countries' central banks would provide more stimulus to their economies, which sent gold to record highs.
"For lack of a better term, it really is a 'classic QE day,'" said Tom Fitzpatrick, chief technical strategist at Citigroup in New York. "Bonds rally, equities rally, the dollar goes down and gold hits new highs. At this point, that is what's driving the markets."
PRECIOUS-Gold falls off record as dollar recovers
LONDON, Sept 28 (Reuters) - Gold fell on Tuesday as a recovery in the U.S. dollar weighed and as investors took profits after bidding the metal up to a record $1,300 an ounce in the previous session.
Silver was off a 30-year high, while platinum and palladium tracked stock markets lower.

FOREX-Euro recovers as dollar selling resumes
LONDON, Sept 28 (Reuters) - The struggling dollar slipped on Tuesday after a brief rally ran out of steam, while the euro recovered after a senior official said some European Central Bank emergency support may be withdrawn.
Traders also ascribed the dollar's drop to reported comments from a former Chinese central bank adviser who said a devaluation of the U.S. currency may be inevitable.

World stocks stabilise; euro firms after Stark
LONDON, Sept 28 (Reuters) - World stocks held steady on Tuesday as euro zone banking concerns offset optimism on the corporate sector, while the euro rose after a European Central Bank official pointed to the withdrawal of support measures next year.
The premium investors demand to hold Irish or Portuguese government bonds hit euro lifetime highs after Standard & Poor's warned it may cut Ireland's credit rating if the country poured more than 35 billion euros into Anglo Irish Bank.

20100929 0911 Soy Oil & Palm Oil Related News.

Soy product futures stumbled, backpedaling in unison with soybeans. Soyoil futures inched lower, retreating in late dealings after holding firm for most of the day. Strong export demand and fears of tightening world vegoil supplies was an underpinning feature in soyoil futures, said Bill Nelson, analyst with Doane Advisory Service. Soyoil gained product share versus soymeal on spreads, as the availability of soybeans for crushing is seen alleviating any near term soymeal supply tightness, analysts said. December soyoil settled 0.04 cents or 0.1% lower at 44.93 cents per pound. December soymeal ended $7.20 or 2.3% lower at $308.50 per short ton. (Source: CME)

eBio: High Grain Prices To Hit EU Biofuels Sector (Source: CME)
The European Union's burgeoning biofuels sector could suffer if grain prices stay high for too long, the head of a trade body representing European bioethanol said. Rob Vierhout, Secretary-General of the European Bioethanol Fuel Association, or eBio, said a recent surge in the price of grains such as wheat, which bioethanol refiners process to make fuel alcohol, could lead to some plants shutting down. "It could well mean that some companies stop producing because the raw material is such a substantial part of production costs--up to 70% with grain at the level it is now," he said. Ethanol prices in the EU have increased significantly in the past year. According to figures from analyst FO Licht, European ethanol prices in Rotterdam on a free-on-board basis last week were at EUR620 to EUR640 a cubic meter, up around EUR100 from the same time last year.
Vierhout attributed part of the increase to a surge in world grain markets, which have seen prices spike in recent weeks after Russia--the world's third-largest wheat exporter--banned grain exports for up to a year. Europe's biofuels sector has expanded rapidly in recent years. Fuel ethanol production in the 27-nation bloc rose by 31% in 2009 to 3.7 billion liters, stoked by targets to reduce EU greenhouse gas emissions by 50% compared with fossil fuels by 2017. Demand for bioethanol--which can be mixed with gasoline to create a cleaner form of fuel--is also rising. Last year, the EU consumed 4.3 billion liters, up from 3.5 billion the previous year, an increase of 23%. But Vierhout said he doesn't expect expansion to increase as demand struggles to keep pace with supply. He estimates that this year the sector will see a 3 billion-liter overcapacity as production from existing projects increases and new plants come on line.

Nomura: Higher Palm Oil Output Next Year To Ease Prices (Source: CME)
An increase in palm oil production in Indonesia and Malaysia by about 2 million metric tons in 2011 will likely ease palm oil prices to an average MYR2,500 per metric ton, Nomura Securities' plantation analyst Ken Arieff Wong said. Speaking at a media roundtable during its annual Asia Agri & Food Day, Ken said Nomura has maintained the neutral rating on palm oil with futures prices averaging MYR2,500/ton and spot prices hovering around MYR2,570/ton in 2011, if crude oil averages $95 per barrel. Prices are expected to ease tracking ample global supply of soybeans against the backdrop of a bumper harvest in South America and a likely record harvest in the U.S, said Tanuj Shori, Nomura's soft commodities and supply chain analyst. Only a small portion of this year's soybean crop has been crushed so far and ample remaining stocks will also help ease the pressure on prices, he said.
"Some of the refiners in India have switched to soy-oil from rival palm oil," because of the narrowing price difference between the two, he said. However, the trend could change next year when palm oil prices ease. Crude palm oil production in Indonesia, the largest producer globally, is likely to reach 23.9 million tons in 2011, up 8% from the estimated 22.2 million tons this year because of increased mature acreage and a general improvement in yields, said Wong. That's above the 22.5 million tons estimate given by leading vegetable oils analyst Dorab Mistry during an oilseeds conference in Mumbai over the weekend. Yields tend to move in cycles, where periods of lower yields are usually followed by higher yields, Wong said.

Gain on Asian demand outlooks
JAKARTA/KUALA LUMPUR, Sept 28 (Reuters) - Global vegetable oil markets edged higher on Tuesday as investors bet on strong holiday demand from China and India.
Concerns that erratic weather will curb production of soybeans in South America and China as well as Canadian canola are also underpinning agriculture markets.

Indonesia 2011 palmoil output growth at 10 pct-Nomura
SINGAPORE, Sept 28 (Reuters) - Indonesia's crude palm oil output is expected to grow as much as 10 percent in 2011, compared with 5 percent estimated this year, due to improving yields in the world's top producer, Nomura said on Tuesday.
"A 5 percent growth is at best in 2010 because there are downside risks if the yields don't recover in the second half of 2010," Ken Arieff Wong, research analyst at Nomura Securities Malaysia, told a media briefing.

Philippines' 2010 coconut oil exports seen up 57 pct
MANILA, Sept 28 (Reuters) - The Philippines' coconut oil exports are expected to grow 57 percent to around 1.3 million tonnes this year on improving demand and output, up from a previous estimate of 21 percent growth, an industry group said on Tuesday.
Earlier this year, the United Coconut Associations of the Philippines (UCAP) had projected the country's 2010 exports of coconut oil would hit 980,000 tonnes, from 808,007 tonnes in 2009.

Tuesday, September 28, 2010

20100928 1834 FCPO EOD Daily Chart Study.

FCPO closed : 2737, changed : +2 points, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer in control.
Support : 2720, 2700, 2670 level.
Resistant : 2750, 2770, 2800 level.
Comment :
FCPO edge up marginally traded in lower volume transaction after opened lower and recovered upward following a side way range bound traded soy oil futures price. Daily chart reading remained unchanged by suggesting a upside biased market development.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100926 1816 FKLI EOD Daily Chart Study.

FKLI closed : 1452, changed : -18.5 points, volume : higher.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : turned lower again, seller counter attack.
Support : 1445, 1425, 1405 level.
Resistant : 1458, 1470, 1485 level.
Comment :
FKLI surrendered most of yesterday gain to closed recorded decline in ultra high volume transaction after opened and tested lower closing near the low of the day. Daily chart formed a down bar candle closing below middle Bollinger band with the reading suggesting a side way range bound little 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.

20100928 1428 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1464, changed : -6.5 points, volume : high.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : getting weaker, buyer taking profit.
Support : 1458, 1445, 1425  level.
Resistant : 1470, 1485, 1500 level.
Comment :
FKLI eased lower in ultra higher volume traded as traders started to row over position toward next months contract ahead of the expire spot month contract. Hourly chart show that market opened lower and traded range bound testing middle Bollinger band support level doing pullback correction after yesterday rally with the reading calling a correction range bound upside biased market development.

20100928 1254 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2726, changed : -9 points, volume : low.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : getting weaker, buyer realising profit.
Support : 2720, 2700, 2670 level.
Resistant : 2750, 2770, 2800 level.
Comment :
FCPO closed softer for lunch in thin volume transaction traded mostly in profit taking mood after yesterday gain.
Hourly chart shows that market opened lower and traded side way continuing yesterday pullback correction. Reading wise, market is likely to trade correction range bound testing lower support level near middle Bollinger band before resume upside biased.

20100928 1130 Global Economics News.

China: Industrial companies’ profits climb
Chinse industrial companies’ profits climbed 55% in the first eight months of 2010 from a year earlier, bolstering investment as the government pares back stimulus. Net income increased to RMB 2.6 trn (USD390bn), compared with an 11% decline in the same period in 2009. This number gave little indication that labor costs are dragging earnings, after local governments increased minimum wages and companies such as Foxconn Technology Group boosted pay. (Bloomberg)

Hong Kong: Exports unexpectedly increased
Hong Kong’s exports unexpectedly climbed the most in more than 18 years in August, buoyed by Chinese demand and the comparison with a decline a year earlier. Overseas sales increased 36% to HKD 290.1 bn after a 23.3% gain in July, the government said on its website today. None of seven economists in a Bloomberg News survey forecasted such a large jump. (Bloomberg)

Japan: Export growth slows
Japan’s exports grew at the slowest pace this year in August as a decrease in global demand and an advance in the yen threaten to undermine the nation’s recovery. Overseas shipments increased 15.8% from a year earlier, the slowest since December, underscoring concerns that the country’s recovery may falter after cooling exports and stagnant consumer demand more than halved the nation’s growth rate last quarter. The median estimate of 21 economists surveyed by Bloomberg News was for a 19% increase. (Bloomberg)

South Korea: Consumer confidence declines to 14-month low
South Korea’s consumer confidence fell to the lowest level in 14 months amid concern that the nation’s economic recovery will slow. The sentiment index declined for a second straight month to 109 in September from 110 in August, the Bank of Korea said. The index’s recent peak was a seven-year high of 117 in October. A number exceeding 100 indicates optimists outnumber pessimists. A sub-index measuring consumers’ views of the economic outlook dropped to 108 in September from 109 in August, while the expected inflation rate over the next year remained at 3.2%. (Bloomberg)

UK: Home prices decline most in 18 months
UK home values dropped by the most in 18 months in September as all of Britain’s regions posted price declines. The average cost of a home fell 0.4% from the previous month to GBP 157,600 (USD249,000), the third consecutive monthly drop and the biggest since March 2009. Housing demand fell the most since January 2009. Prices rose in September by 1% from a year earlier, the least in seven months. Prices fell in all regions for the first time since April 2009. (Bloomberg)

US: US sets duties on China and Mexico
The US imposed dumping duties on copper pipes and tubes from China and Mexico. The duties will be as much as 60.85% on USD233m of imports from China and as much as 31.43% on USD 130m of imports from Mexico for the products, used in plumbing and for carrying liquids or gases in heating systems. The decision, announced by the Commerce Department, is the third of four needed to make the tariffs final. Chinese and Mexican copper tube makers will have to deposit duties for products shipped to the US while the case is pending. The final ruling is scheduled for 8 Nov. (Bloomberg)

U.S: China bill in Congress may prompt retaliation, businesses say . U.S. legislation pressing China  to raise the value of its currency may boomerang by prompting retaliation against American businesses operating there, representatives of those companies said. The House of Representatives  is set to consider legislation this week that would let companies petition for higher duties on imports from China to compensate for the effect of a weak currency. (Source: Bloomberg)

Gold: Central banks and the IMF sold about 94.5 metric tons of gold in the year that ended on Sept. 27 , the lowest amount under an agreement that began in 1999, according to data from the World Gold Council. Eurozone banks disposed of 6.2 tons, led by Germany, Greece and Malta, while the International Monetary Fund sold 88.3 tons. The figure for the Eurozone banks was 96% below last year's 142 tons. (Source: Bloomberg)

20100928 1127 Malaysia Corporate News.

Another possible by-election in Malaysia
Galas assemblyman Che Hashim Sulaiman died at the Al-Islam Medical Centre in Kampung Baru, Kuala Lumpur, today after a long battle with colon cancer. He was 45. This signals the possibility of another byelection. (NST)

Syabas may get tariff hike
A water tariff hike of between 15% and 20% may be in the offing for Syarikat Bekalan Air Selangor SB (Syabas), sources said. The increment would be a lifesaver for the water treatment players, Syarikat Pengeluar Selangor Holdings (Splash) and Konsortium Abbas SB, which are both on the verge of defaulting on their debt commitments. It is understood that the federal government has agreed in principle to the tariff hike for Syabas, but has yet to get the green light from the Selangor state government which is run by the opposition Pakatan Rakyat. Syabas has the mandate to supply treated water to Kuala Lumpur, Selangor and the federal capital of Putrajaya and under its concession agreement was supposed to get a 37% tariff hike last year. (Financial Daily)

Muhyiddin: Govt yet to decide on PLUS sale
The Government has not made any decision on the sale of PLUS Expressways, says the Deputy Prime Minister. A blog said last week that the Government had given the green light for the Employees Provident Fund to buy PLUS. An earlier report had said that Khazanah might sell its stake in the toll road operator. In the past, privately-held Asas Serba SB had voiced its interest in the highway. It had proposed to pay RM50bn for 25 toll highways and said that its plan would end toll rate increases and help the Government save RM114bn in compensation payments until 2038. (BT)

Taliworks' subsidiary in RM66.8m water project in China
Taliworks Corporation, via its 70% indirectly subsidiary Eco3 Technology and Engineering Pte Ltd, on Monday announced the signing of a 30-year concession agreement to construct and operate the Meihua industrial waste water treatment and recycled water plant in Ningxia Province, China. The project is estimated to cost 145m reminbi (RM66.8m) and construction will proceed with phase one with a treatment capacity of 30m litres per day (MLD), it said in a statement. The Meihua project is an extension of Taliworks' quest for similar industrial waste water projects within the fast-developing Ningxia Province, the group said. (Bernama)

Sarawak seeks debt guarantee
The offer price of RM6.2bn for the 2,400 MW Bakun dam mostly comprises debt that is guaranteed by the Federal Government, with a remaining RM450m that is likely to be paid via installments, according to sources. While there is no mention of debt repayment, it is assumed that the state government will service the loans which it proposes to be still guaranteed by the Federal Government. It is learnt that the average interest rate is less than 6% for 12 years ending 2023. (StarBiz)

EONCap shareholders give HLBB offer the nod
EONCap’s shareholders had approved all the proposed resolutions, including the proposed divestment of the group’s banking operations for RM5.06bn cash, or RM7.30 per share to HLBB. However, another stumbling block is ahead for HLBB – the pending lawsuit filed by substantial shareholder, Primus Pacific Partners, against the existing board of directors. (FinancialDaily))

SunCity steps up presence in Penang, plans RM800m property project
Sunway City (Suncity) is boosting its presence in Penang and plans to undertake a residential property project in the southwest district of Penang island with an estimated gross development value of RM800m. Suncity said yesterday that its unit, Sunway City (Penang) SB, had entered into a sale and purchase agreement with Sungai Ara Holdings SB to acquire 32.78ha of freehold land for RM38.76m for residential property development. (Financial Daily)

Kimlun awarded RM64.8m for the construction of 25-storey service apartments
Kimlun announced yesterday that its wholly-owned subsidiary, Kimlun SB, yesterday received the letter of award for the contract sum of RM64.8m from Bukit Indah (Johor) SB, a wholly owned subsidiary of SP Setia, for the construction of Main Building Works for 2 blocks of 25-storey service apartments and ancillary buildings at Bukit Indah, Bandar Nusajaya, Mukim Pulai, daerah Johor Bahru, Johor. The scope of works comprises building construction works for the service apartments and ancillary buildings, which will be due to be completed by September 2012. (BursaMalaysia)  

Aerospace: Mida completes talks with Pratt & Whitney.   The Malaysian Investment Development Authority (Mida) has concluded negotiations with Pratt & Whitney for the American aircraft engine maker to set up shop here, its director-general Datuk Jalilah Baba says. "Pratt & Whitney is seriously looking at having a base in Malaysia." Locally, it has a USD680m (RM2.1b) deal with national carrier Malaysia Airlines  to provide 34 engines for 17 of the airline's new Airbus aircraft. "They will come here. We are also talking to several other aerospace-related companies," Jalilah said. (Source: Business Times)

Khazanah: Ties up with Camco.  Khazanah will acquire 9.28m ordinary of Camco shares at 20 pence (98 sen) each, and in turn, form a joint venture with Camco to expand carbon-trading operations in Asia. Shares in the London, UK-based manager of emission-reduction projects jumped 41% to 20.5 pence (RM1) as of 8.36am local time, the highest price since December 29 last year. The purchase will give Khazanah a 5.3% stake in the company. The joint venture will be capitalised with as much as USD46m (RM142m) to invest in the emissions-to-energy market in Southeast Asia. (Source: Business Times)

MAS: Sees 40% rise in capacity for India flights.  Malaysia Airlines (MAS) is looking at 40% capacity increase next year for flights from Indian cities, based on growing demand from business and leisure travellers. MAS plans to leverage on the delivery of new planes and increased frequencies of flights to support the projected growth, MAS' regional manager for South Asia operations Azahar Hamid said. (Source: Business Times)

Plantation: New clone unveiled.  A new oil palm clone dubbed the Wakuba oil palm ramet was launched with a promise of doubling the current oil yield. Named after TSH Resources Bhd unit TSH Biotech Sdn Bhd's 5-year old tissue-culture laboratory in Wakuba Gading, Tawau, Sabah, the new clone promises an oil yield of up to 10 tonnes per ha compared to average current yield of about 4.5 tonnes per ha in the country. TSH Resources chairman Datuk Kelvin Tan said the company had invested RM25m in the laboratory, which is expected to produce 1.5m ramets by 2015 compared with 500,000 this year. (Source: The Star)

Plenitude: To buy Penang land.  Plenitude Bhd's wholly owned unit, Plenitude Estates Sdn Bhd, has agreed to buy 21.3ha of freehold land in Balik Pulau, Penang, from United Formula Sdn Bhd and Affluent Base Sdn Bhd for RM40.1m. The land is earmarked for mixed development that includes double-storey and super-link houses as well as 2-3 storey shops with an estimated gross development value of RM230m. (Source: Business Times)

REDtone: To submit 4G business plan soon.  REDtone International Bhd plans to submit a detailed business plan to the Malaysian Communications and Multimedia Commission soon on how it plans to use new bandwidth that allows even faster services than what's available now. (Source: Business Times)

20100928 1108 Global Market News.

OIL: Crude tracks equities lower as dollar strengthens
SINGAPORE, Sept 28 (Reuters) - Oil fell towards $76 on Tuesday, tracking Asian equities lower on lingering concerns about euro-zone debt, which also boosted the dollar.
U.S. crude oil stockpiles probably fell by 400,000 barrels last week on lower imports as seasonal refinery maintenance slowed demand, a preliminary Reuters poll of analysts showed on Monday, ahead of weekly inventory reports Tuesday and Wednesday.

COMMODITY MARKETS: Gold, sugar rally; wheat leads losses in grains
NEW YORK, Sept 27 (Reuters) - Gold touched another record high on Monday before finishing flat in thin trade, and oil and a few other commodities also ended little changed or softer after being weighed down by equities and directionless trade.
"Most complexes show prices stuck in tight trading ranges, with little indication that they will break out one way or another," Edward Meir, senior commodities analyst at MF Global in New York, wrote in a commentary on oil.

GLOBAL MARKETS: Gold, bonds soar on debt woes, Fed speculation
NEW YORK, Sept 27 (Reuters) - Gold hit a record high of $1,300 per ounce and U.S. Treasury prices surged on Monday on renewed worries about euro-zone debt and expectations the Federal Reserve will further ease monetary policy.
"The euro right now is being pulled in a tug of war between the sovereign debt crisis still existing in the euro zone versus the prospect of a very serious QE2 (another round of quantitative easing) out of the U.S.," said Boris Schlossberg, director of FX research at GFT in New York.

PRECIOUS-Gold hits record at $1,300; silver at 30-year high
LONDON, Sept 27 (Reuters) - Gold powered to hit a record high at $1,300 an ounce as investors poured money into bullion on fears of looming inflationary pressures as well as worries about the health of the global economy.
Silver, often considered the poor man's gold, rose to a 30-year high as investors chased a cheaper alternative. The metal has gained nearly 30 percent this year, catching up with gold.

World stocks near 5-month high, M&A lifts mood
LONDON, Sept 27 (Reuters) - World stocks hit their highest level in nearly five months on Monday while oil prices rose as growing corporate merger activity and last week's upbeat U.S. economic data encouraged investors to buy risky assets.
Unilever has agreed to buy U.S.-based hair care firm Alberto Culver for $3.7 billion in cash. A source said China's Bright Food Group is exploring the purchase of Britain's United Biscuits in a possible $3.2 billion deal.

Asian stocks rally, dollar dips to five-month low
SINGAPORE, Sept 27 (Reuters) - Asian stocks rose to their highest in more than two years in response to optimism on the U.S. economy, while the dollar dipped to five-month lows against the euro.
"Wall Street's rise has provided a bit of a boost but gains on the U.S. data are mainly because the figures weren't quite as bad as expected, not that they were really good," said Takashi Ushio, head of the investment strategy division at Marusan Securities. "So gains on this alone will be limited."

20100928 1107 Soy Oil & Palm Oil Related News.

Soy product futures ended mixed, with soyoil climbing at the expense of soymeal on fears of tightening global vegoil supplies. The soyoil market also garnered support from a strong export demand base, analysts said. Soymeal slipped lower on oil/meal spreading. December soyoil settled 0.08 cents or 0.2% higher at 44.97 cents per pound. December soymeal ended $1.30 or 0.4% lower at $315.70 per short ton.(Source:CME)

Malaysia, Indonesia Palm Oil Output To Expand By 2.5M Tons In 2010-11 - Analyst (Source:CME)
Palm oil production growth in Malaysia and Indonesia, the world's top producers of the commodity, may expand by 2.5 million metric tons during the calendar year 2010-2011, as widespread rain will boost palm yields and as the lower palm production period ends, vegetable oils analyst Dorab Mistry said. "The biological low cycle will come to an end around June 2011 and the higher cycle should coincide with the beneficial after-effects of good rainfall in 2010," Mistry, director at Godrej International Ltd., said in a speech prepared for an industry conference in Mumbai, India. 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. He estimated Indonesia's palm oil production in 2010 to reach 22.5 million from 22 million tons last year.
Mistry said palm prices are likely to trade lower the next four to six weeks, as he predicted a strong recovery in CPO production, which "will spillover into November. Malaysia's month-end stocks will rise and prices will need to go lower." Malaysia's September CPO output is likely to grow at a slower pace, as harvesting was disrupted when workers headed home for the Eid ul-Fitr celebrations earlier this month, traders said. "We could lose about MYR150-MYR200...After that weak spell, prices should begin to recover as exports remain strong," Mistry said, as major vegetable oil buyers India and China restock supplies, tipping prices to rally to MYR3,000-MYR3,200/ton by January next year. He also said global soyoil production for 2010-2011 period is projected to increase by about 2.1 million tons, Mistry said, citing higher rate of crushing and ample supply of global soybeans.
Rival soyoil prices will likely rise to rise sharply, to $1,050 a ton free-on-board Argentina ports by January, he said, widening the gap between soy oil and palm oil, making the latter a cheaper alternative to price-sensitive buyers. CPO usually trades a wide discount to soyoil, but a record crop of soybeans from South America this year and a likely record harvest from the U.S. even as palm production slowed, has pushed it into a narrow discount around $10-$20/ton the last few months.

Soy at 13-month top; corn, wheat rise on weak dollar
SINGAPORE, Sept 27 (Reuters) - Chicago soy futures climbed to a 13-month top on Monday, rising nearly 1 percent, while corn scaled a new 2-year peak as a weak dollar and tight supplies continued to buoy the grain market.
Soybeans gained additional strength from a rally in Asian vegetable oil markets, led by China's Dalian futures, estimates of sowing falling in the United States next year and dry weather hurting prospects of soon to be planted South American crops.

Climb on China, weather; palm at highest since May 2009
JAKARTA/KUALA LUMPUR, Sept 27 (Reuters) - Malaysian palm oil hit its highest level since May 2009 and other global vegetable oil markets rallied on Monday as traders bet on top buyers China and India snapping up more cargoes in the months to come.
An industry conference in Mumbai forecast that India will buy a record amount of vegetable oil in the new marketing year and China's Ministry of Commerce revised up its estimate for September soy imports.

China MofCom ups Sept soy import est to 4.9 mln T
BEIJING, Sept 27 (Reuters) - China's commerce ministry has revised up its estimate for soy imports in September to 4.9 million tonnes, the second largest level ever, lifted from an earlier estimate of 4.7 million tonnes.
Cheap South American soy imports, coupled with a capacity expansion, led soy plants to book more of the oilseed after record imports of 6.2 million tonnes in June.

Palm oil to rise by Jan after weak Oct-Mistry
MUMBAI, Sept 26 (Reuters) - Malaysian crude palm oil futures  could rise at least 11 percent to 3,000-3,200 ringitt per tonne by January as demand strengthens but prices may weaken slightly next month as output and stocks rise, top analyst Dorab Mistry said.
Crude palm oil production would recover in October and Malaysia's month-end stocks would swell, he said on Sunday, suggesting that Malaysia's benchmark palm oil futures, which closed at 2,701 ringgit ($871.8) on Friday, would weaken.

Soyoil, biofuels may lift crude palm oil - Mielke
MUMBAI, Sept 25 (Reuters) - Robust biofuel demand and firm soyoil prices may lift crude palm oil (CPO) prices by 11 percent to 3,000 ringgits per tonne in five months, a top industry analyst said on Saturday.
On Friday, Malaysia's benchmark palm oil futures  rose by more than 1 percent to close at 2,701 ringgit ($871.8).

Monday, September 27, 2010

20100927 1844 FCPO EOD Daily Chart Study.

FCPO closed : 2735, changed : +34 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer position stay firm.
Support : 2720, 2700, 2670 level.
Resistant : 2750, 2770, 2800 level.
Comment :
Increased volume transaction FCPO closed higher after opened at the high of the day followed by some mild profit taking activities pulled market to test lower support and closed recover up slightly after both export cargo surveyor released improved export data. Daily chart formed a higher down bar candle closed near upper Bollinger band with the reading turned into suggesting a upside biased market development.
When to buy : buy at support or weakness with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100927 1826 FKLI EOD Daily Chart Study.

FKLI closed : 1470.5, changed : +20 points, volume : higher.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : reversed upward, buyer returned for a rematch.
Support : 1470, 1458, 1445 level.
Resistant : 1485, 1500, 1530 level.
Comment :
FKLI recorded huge gain traded in increasing volume transaction in tandem with a positive regional market development doing 6 points premium compare to cash market. Daily chart shows that market rebounded after tested the middle Bollinger band support level formed a wide range up bar candle with the reading suggesting a side way range bound little upside biased testing resistant level near upper Bollinger band.
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.

20100927 1303 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1471, changed : 20.5 points, volume : high.
Bollinger band reading : upside biased.
MACD Histrogram : getting higher, buyer counter attack.
Support : 1470, 1458, 1445 level.
Resistant : 1485, 1500, 1530 level.
Comment :
Positive regional market development plus continue cash market heavy weight counters buying especially banking stock lead FKLI to rally higher in ultra high volume changed hand. Hourly chart shows market opened little higher and surged up breaking 2 resistant levels and closed at the high of the day. Daily chart formed a long lower shadow doji bar candle after price break below and closed right at the middle Bollinger band support level. Outlook switch into a side way range bound market reading testing support and resistant level. Reading wise, market is likely to trade upside biased testing previous high resistant level.

20100927 1252 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2748, changed : +47 points, volume : moderate.
Bollinger band reading : upside biased with possible correction.
MACD Histrogram : getting higher, buyer in control.
Support : 2720, 2700, 2670 level.
Resistant : 2750, 2770, 2800 level.
Comment :
Rallied higher soy oil futures price, concern on uncertain weather plus an announce improved export data lead FCPO to traded higher in moderate volume changed hand. Hourly chart wise, price opened gap up higher and traded side way range bound due to some profit taking activities and seems facing heavy resistant challenge near the 2750 level. Outlook wise, market is likely to trade upside biased with possible downward pullback correction as price stay above upper Bollinger band for sometimes now.

20100927 1106 Global Economic News.

China: Needs to balance growth, inflation
Promoting economic growth while managing inflation expectations pose a challenge to economic recovery, Chinese Vice-Premier Wang Qishan said yesterday. The global economic uncertainties and rising trade protectionism could take a toll on China’s economic growth, Wang was quoted saying. A flood of easy money following the government’s efforts to ward off the negative impact of the global economic crisis has fanned concerns about inflation and asset bubbles.(Financial Daily)

Japan: Yen likely to undermine company sentiment
The Bank of Japan’s Tankan survey will probably show a slowing pace of improvement in business confidence, adding to pressure on policy makers to counter gains in the Yen by injecting more cash into the economy. A quarterly index of sentiment at large manufacturers rose 6 points in September, the least since March 2009, according to the median forecast of 19 economists surveyed. (Bloomberg)

US: Treasury said to prepare unveiling of AIG exit, repayment plan
The US Treasury Department may unveil plans as early as this week to return American International Group Inc. to independence and recoup taxpayer funds from the insurer’s bailout, said three people with knowledge of the negotiations. The biggest part of that strategy is for Treasury to begin converting its USD49bn preferred stake into common stock for sales by the first half of next year, said the people, who declined to be identified. The timing of an announcement depends on the pace of negotiations between regulators and the New York-based insurer, the people said. (Bloomberg)

US: Manufacturing probably cooled this month
Manufacturing probably cooled in September and consumer spending stabilized last month, underscoring the Federal Reserve’s forecast of “modest” US growth in coming months, economists said before reports this week. The Institute for Supply Management’s factory index fell to 54.5 from 56.3 in August, according to the median of 63 forecasts in a survey ahead of the report due on 1 October. (Bloomberg) 

20100927 1105 Malaysia Corporate News.

Sarawak offers RM6bn for Bakun hydroelectric project
The Sarawak government has offered RM6bn to buy over the Bakun hydroelectric project from the federal government, said Sarawak Chief Minister, Tan Sri Abdul Taib Mahmud. Abdul Taib said the negotiations on the matter (the state buying over the project) were still ongoing and that a final decision had yet to be reached. According to him, the federal government had yet to put a price tag on the project, which is estimated to have incurred costs exceeding RM7.3bn. (Malaysian Reserve)

Sunway to launch RM1.1bn project in Singapore
Sunway Holdings Bhd will launch its third property project with a gross development value (GDV) of RM1.1bn in Singapore next week, said managing director Yau Kok Seng. Yau said the 1.92ha project, called Vacanza @ East, would be located at Jalan Senang, District 14, a freehold land near Pan Island Expressway. “We expect good response for the project,” he said after signing a joint-venture (JV) agreement with the Dasa Group of Sri Lanka here yesterday. He said profit margin in Singapore was usually 12%. The project will comprise eight blocks of 12-storey buildings, which will have 500 units. Sunway will also launch another project, with a GDV of SGD370m in the second half of 2011 in Singapore. It will comprise 17 blocks of five-storey residential development. The JV agreement signed yesterday was between Sunway unit SunwayMas Sdn Bhd and Dasa Group for a RM250m mixed development project in Bambalapitiya, Colombo. A JV company will be formed in Sri Lanka, with SunwayMas having a 65% stake and remainder taken up by Dasa Group. SunwayMas would fund its investment in the JV company through bank borrowings and internal funds. (StarBiz)

YTL Cement to buy out Perak-Hanjoong
YTL Cement Bhd has offered to buy a 35.16% stake in Perak-Hanjoong Simen SB from Gopeng Bhd for RM200m in a move that will see the company consolidating its position in the building material industry. YTL Cement said Gopeng had, on 24 Sept, accepted its offer to buy all 117.74m ordinary shares of RM1.00 each, with a formal sale and purchase agreement to be entered in due course. (Malaysian Reserve)

Karambunai denies plan to build resort casino
The surge of Karambunai Corp Bhd (KCB) shares since speculation arose it might get a casino licence as part of a proposed integrated resort (IR) at its existing resort in Sabah has created excitement in the market but the company last Friday poured cold water on any such move. “KCB has not up to date submitted any official proposal to the Malaysian government, nor has it penned any written documents with any other third parties in respect of any plan to build a casino in Karambunai,’’ the company told Bursa Malaysia. KCB said since it was a key player of tourism in Sabah, its general manger of the Nexus Karambunai Hotel was invited to be a member of Pemandu’s NKEA tourism lab. “During the lab sessions, KCB’s representative has been discussing and disclosing drawings in Karambunai with members of the private and public sectors as to the manner in which Karambunai as a member of the private sector may assist in this direction,” it explained. “Pemandu is free to use any drawings conducted in the lab sessions, but chooses drawings from Karambunai which has copyrights source & status. To KCB, these chosen drawings are merely meant as a plan. The recent public information simply mentions the existence of a IR in Kota Kinabalu Sabah and has not disclosed and named specifically KCB as a party. (StarBiz)

Azman Hashim to take MCM private
ACE market firm MCM Technologies Bhd’s major shareholder Tan Sri Azman Hashim has made an offer to take the company private at 13 sen a share, according to statement to Bursa Malaysia last Friday. The offer, to be satisfied entirely by cash, came in at 13% higher compared to MCM’s pre-suspension price of 11.5 sen. Azman, through Amcorp Group Bhd’s wholly owned unit Mezzanine Capital (M) Sdn Bhd controlled a 62.75% stake in MCM Tech. “The offeror has no intention to maintain the listing status of MCM Tech” assuming that he gets 75% control of the company, documents filed with the exchange on Friday showed. MCM Tech said it received the offer on Thursday and the announcement was posted on Bursa during the mid-day trading break. (StarBiz)

Proposal to resolve bondholders’ worry
A satisfactory proposal is expected be tabled in two week’s time to resolve concerns of bondholders of the Selangor water sector, especially in the area of compensation or assistance, a bondholder told StarBizWeek. An informal meeting was held last Friday between the representatives of the state and federal government and stakeholders in the state’s water sector, in particular bondholders. A bondholder said after the meeting: “We look forward to a positive outcome from this meeting in two week’s time. We believe this meeting today has been fruitful to enable the government to fully appreciate our plight.” He said with the recent downgrade on debt papers by Malaysian Rating Corp Bhd and RAM Ratings in the water sector it had triggered a higher risk weighting for the players. (StarBiz) 

20100927 1100 Global Market News.

Oil trades near two-week high as risk appetite returns
SINGAPORE, Sept. 27 (Reuters) - Oil was steady, trading close to a two-week high near $77 reached earlier, as energy and commodities regained the favour of investors with a weaker dollar and resurfacing risk appetite.
"The dollar has set a weaker tone and that's going to be supportive for oil prices," said Mark Pervan, a senior commodities analyst at ANZ in Melbourne.

Soy at 13-month top; corn, wheat rise on weak dollar
SINGAPORE, Sept 27 (Reuters) - Chicago soy futures climbed to a 13-month top nearly 1 percent, while corn scaled a new 2-year peak as a weak dollar and tight supplies continued to buoy the grain market.
"We have seen strength across the agricultural commodity complex. Beans, corn and wheat are all trading higher with what we have seen in outside markets," said Luke Mathews, commodity strategist at Commonwealth Bank of Australia.

Asian stocks rally, dollar dips to five-month low
SINGAPORE, Sept 27 (Reuters) - Asian stocks rose to their highest in more than two years in response to optimism on the U.S. economy, while the dollar dipped to five-month lows against the euro.
"Wall Street's rise has provided a bit of a boost but gains on the U.S. data are mainly because the figures weren't quite as bad as expected, not that they were really good," said Takashi Ushio, head of the investment strategy division at Marusan Securities. "So gains on this alone will be limited." 

OIL: Crude extends rally, reaches two-week high near $77
SINGAPORE, Sept. 27 (Reuters) - Oil climbed to near $77, the highest level since mid-September, extending last week's rally as energy and commodities regain the favour of investors with a weaker dollar and resurfacing risk appetite.
New orders for a wide range of long-lasting U.S. manufactured goods rose in August and business spending plans rebounded strongly, separate reports showed on Friday, the latest sign a sharp summer slowdown in the economy was abating.

COMMODITY MARKETS: Broad weekly gains; gold hits 7th record for Sept
NEW YORK, Sept 24 (Reuters) - Gold hit record highs on Friday for a seventh time this month and oil, metals and a wide number of crops finished the week with big gains after a falling dollar boosted prices across commodities.
"With the dollar getting definitely weaker with the pass of every session, gold has little work to do other than to head higher to compensate for dollar's slide," said Pradeep Unni, senior analyst at Richcomm Global Services.

GLOBAL MARKETS: Stocks surge, dollar slumps on data, Fed watch
NEW YORK, Sept 24 (Reuters) - Global stocks jumped but the dollar slid on Friday as economic data both raised hopes the recovery is improving and bolstered speculation the Federal Reserve will boost money supply to aid a struggling economy.
"You're finally in a place now that it's not because the equity equation is so attractive that you do something, it's actually because the safe side of the equation is so unattractive that you do something," Pride said.

PRECIOUS-Gold hits record, silver reaches 30-yr peak
LONDON, Sept 24 (Reuters) - Gold rallied to record highs in Europe on Friday, with spot prices knocking on the door of $1,300 an ounce, as expectations grew that further quantitative easing could lead to volatility in the currency markets.
Spot gold  hit an all-time high of $1,298.25 an ounce and was bid at $1,297.70 an ounce at 0917 GMT, against $1,293.50 late in New York on Thursday.

FOREX-Dlr/yen spikes on intervention talk, euro jumps
LONDON, Sept 24 (Reuters) - The dollar spiked above 85.00 yen on Friday on talk of intervention by Japanese authorities keen to stem the yen's recent gains, but quickly retreated as doubts emerged about whether they had taken action.
That left investors nervous about more intervention and, with risk aversion hitting markets, traders said the Bank of Japan's task of weakening the yen was becoming even tougher.

Yen pares losses; intervention talk unconfirmed
LONDON, Sept 24 (Reuters) - The yen staged a partial recovery from losses prompted by unconfirmed talk of central bank intervention , while the euro rose on a stronger than expected German business sentiment survey.
"The price action certainly suggested that the Japanese intervened, but one can't be sure," said Kenneth Broux, markets strategist at Lloyds TSB Financial Markets.

20100927 1056 Soy Oil & Palm Oil Related News.

SGS CPO Export up 15% to 1,080,597 tonnes for the period of 1~25 Sep 2010.
ITS CPO Export up 17% to 1,162,573 tonnes for the period of 1~25 Sep 2010.

U.S. soy product futures closed sharply higher with soybeans on technical buying and robust demand. U.S. soy export sales, particularly to China, have been strong lately and continue to support gains, traders say. Dryness at planting time in Brazil, the world's no. 2 soy producer after the U.S., added support. Weakness in the greenback helped fuel rallies across the grains and soy complex. The soft greenback makes U.S. soy look even more attractive to foreign buyers and brought speculative money into the markets, an analyst says. Commodity funds bought an estimated 2,000 soymeal contracts and 3,000 soyoil contracts at CBOT. CBOT Dec soymeal closed up $7.50, or 2.4%, at $317 per short ton. CBOT Dec soyoil climbed 0.99 cent, or 2.3%, to 44.89 cents per pound.(Source: CME)

Global Soybean Prices Likely To Rise By Dec-Jan - Expert (Source:CME)
Global soybean prices are likely to rise to $11.50 to $12 per bushel by December-January because of supply disruptions in South America and rising demand in China, said global vegetable oil expert Dorab Mistry. "For some time, soybean prices may remain at double digits. Current prices are also not hurting the demand," Mistry said. There is plenty of focus on South America's crop prospects because of questionable soil moisture for early seedings in Mato Grosso--Brazil's top soy-producing state. Brazil is the world's second-largest soy producer after United States. According to Cropcast Weather Services, the soybean crop outlook may not be favorable because of dry weather seen in these areas of Brazil over the past few months. "If Brazil doesn't get rains in December, soybean crop may be hurt," Mistry said.
Higher imports by China, the largest importer of soybean, is going to support global prices, he said, adding that a widening price gap between sunflower oil and soyoil is also boosting soybean prices. The price difference between sunflower oil and soyoil is $150 per ton. Mistry reiterated his earlier 2010 palm oil production estimate for Malaysia of 17.2 million tons, but said the number may be revised in October. The Southeast Asian country produced 17.6 million tons last year.

Overseas demand hopes boost palm; export data eyed
KUALA LUMPUR, Sept 24 (Reuters) - Global vegetable oil futures rose  as traders took positions hoping for a revival in overseas demand ahead of a key industry conference.
"Trade volume picked up in the afternoon trading session of palm oil, it could be related to the international oil conference in Mumbai," said a trader in Kuala Lumpur.

Indonesia ups Oct CPO export tax, cuts cocoa tax
JAKARTA, Sept 24 (Reuters) - Indonesia will set its crude palm oil (CPO) export tax at 7.5 percent in October, up from 6 percent in September, the trade ministry said on Friday.
Higher export tax would mean Indonesia's palm oil products will be more expensive than rival Malaysia, potentially slowing exports in October from the world's top palm oil producer.

Friday, September 24, 2010

20100924 1819 FCPO EOD Daily Chart Study.

FCPO closed : 2701, changed : +30 points, volume : higher.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : turned upward again, buyer defended well.
Support : 2700, 2670, 2650 level.
Resistant : 2720, 2750, 2770 level.
Comment :
FCPO recorded gained with improved volume transaction after Indonesia announced increased of export tax to 7.5% for the month of October 2010 plus a higher soy oil futures price.
Daily chart formed an up bar candle marching towards upper Bollinger band with the reading still suggesting a side way range bound upside biased market.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100924 1739 FKLI EOD Daily Chart Study.

FKLI closed : 1450.5, changed : unchanged, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : getting lower, seller taking small exposure as buyer playing defending.
Support : 1445, 1425, 1405 level.
Resistant : 1458, 1470, 1500 level.
Comment :
FKLI ended unchanged after opened little higher and tested lower support level but buyer came in to support the market lifted price to recovered. Daily chart formed a long lower shadow doji bar candle after price break below and closed right at the middle Bollinger band support level. Outlook switch into a side way range bound market reading testing support and resistant level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100924 1315 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1446, changed : -4.5 points, volume : high.
Bollinger band reading : downside biased.
MACD Histrogram : recovering, buyer closing position with seller testing market.
Support : 1445, 1425, 1405 level.
Resistant : 1458, 1470, 1500 level.
Comment :
FKLI continue to head south after opened higher, tested support and resistant level but still ended lower as buyer closing position with seller testing market strength. Hourly chart shows market continue to trade near lower zone of the Bollinger band with the reading turned into suggesting a downside biased market development.

20100924 1300 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2687, changed : +16 points, volume : low.
Bollinger band reading : side way range bound.
MACD Histrogram : recovering, low participation from buyer and seller.
Support : 2670, 2650, 2620 level.
Resistant : 2700, 2720, 2750 level.
Comment :
Thin volume transaction FCPO traded higher in tight 14 points range market. Daily chart shows a boring market as price opened higher and moving along the flat middle Bollinger band. Reading wise, market is likely to stay side way range bound for a while.

20100924 1113 Global Economics News.

Singapore: Inflation rate climbs to 18-month high
Singapore’s inflation accelerated to an 18-month high as record economic growth in the first half of the year spurred demand for goods and services, sustaining pressure on the central bank to allow currency gains. The consumer price index climbed 3.3% in August from a year earlier, Singapore’s Department of Statistics said. That matched the median estimate of 10 economists surveyed by Bloomberg News. (Bloomberg)

Taiwan: Industrial output rises as joblessness falls
Taiwan’s industrial production rose more than estimated, gaining for a 12th straight month, while the jobless rate fell to a 20-month low, increasing the central bank’s scope to boost borrowing costs. Output advanced 23.4% in August from a year earlier, after rising a revised 20.93% in July, the Ministry of Economic Affairs said. The median of 11 estimates in a Bloomberg News survey was for a 21.6% increase. (Bloomberg)

China: Wen warns 20% yuan gain would cause ‘major’ upheaval
Chinese Premier Wen Jiabao said a 20% rise in the yuan would cause severe job losses and trigger social instability, putting the nation on course for a clash with US lawmakers demanding a stronger currency. “We cannot imagine how many Chinese factories will go bankrupt, how many Chinese workers will lose their jobs, and how many migrant workers will return to the countryside” should China acquiesce to demands for a 20% to 40% gain, Wen said in New York. “China would suffer major social upheaval.” (Bloomberg)

EU: European services, manufacturing growth weakens
Growth in Europe’s services and manufacturing industries weakened more than economists forecast in September, adding to evidence the recovery in the region is losing steam. A composite index based on a survey of euro-area purchasing managers in both industries declined to 53.8 from 56.2 in August, London-based Markit Economics said. Economists expected a reading of 55.7, according to the median of 15 forecasts in a Bloomberg News survey. A reading above 50 indicates expansion. (Bloomberg)

US: Existing home sales, leading index rise
Sales of US previously owned homes climbed from a record low in August and a gauge of the outlook for the economy increased, confirming the Federal Reserve’s forecast for a “modest” pace of expansion. Purchases of existing houses climbed to a 4.13m annual pace, the second-lowest on record, the National Association of Realtors said. The New York- based Conference Board said its index of leading economic indicators rose 0.3%, exceeding forecasts. (Bloomberg)

20100924 1112 Malaysia Corporate News.

Malaysia promoted to ‘Advanced Emerging Market’
FTSE Group has promoted Malaysia to its Advanced Emerging Market status in the FTSE Global Equity Index Series. All Malaysian indices and sub-indices would migrate from June next year. Malaysia was previously ranked Secondary Emerging Market indices, Bursa Malaysia said in a statement yesterday. Meanwhile, Securities Commission chairman Tan Sri Zarinah Anwar in a statement said the move underlined the global recognition of the regulatory framework of the Malaysian capital market and could lead to greater international participation in the Malaysian market. (Starbiz)

Bursa gets SEC recognition
Bursa Malaysia has been recognised as a designated offshore securities market by the US Securities and Exchange Commission under Regulation S of the US Securities Act 1933. In a statement, Bursa Malaysia said US-based investors would be able to trade in all securities listed on Bursa Malaysia and Malaysian shelf-listed bonds on Bursa Malaysia Bonds, so long as they satisfy the conditions of Regulation S. “While we already have the attention of key institutional investors from US in this market, having this designation will ease trading processes for those investors based in United States. Prior to this, US-based investors who purchased or sold securities must take their own measures to ascertain that the purchaser is located outside the US as per the regulation requirements from the US federal securities laws unless the transaction is done via a designated offshore securities market and trades are not pre-arranged. With this designation, US based investors would now be able to trade the Malaysian securities market without the registration requirements imposed by the US federal securities laws. (Starbiz)

Sarawak government bids for Bakun
The Sarawak state government’s utility firm Sarawak Energy has emerged as one of three bidders vying to buy the Bakun hyrdroelectric project from the federal government, offering about RM6.3bn. Sarawak Energy has submitted its proposal to the Bakun project’s owner Sarawak Hidro SB, a wholly owned subsidiary of the Minister of Finance. Sarawak Energy has also appointed consultants to undertake technical due diligence on the 2,400-megawatt (MW) capacity Bakun hydroelectric dam. The due diligence is expected to begin next month. (FinancialDaily)

Medical ad rules relaxed
More than 7,000 private clinics and 200 private hospitals nationwide can now advertise their services effective today. The move is aimed at promoting medical tourism in the country. The Health Ministry is also allowing these medical establishments to put up banners announcing the opening of new facilities, albeit for a limited period, and advertising overseas on condition they comply with the countries’ requirements. Previously, advertisements were only confined to health magazines, directories, leaflets and billboards while press advertisements were limited to congratulatory messages. (NST)

Proton rules out Lotus sale
National carmaker Proton Holdings has ruled out selling Lotus Group International Ltd at any price for now, but will focus instead on turning around the British high-performance car manufacturer, its chief said. This is despite Proton receiving three unsolicited offers, including one from the current Lotus management led by Dany Bahar, to take up a stake in the loss-making subsidiary, Proton chairman Datuk Seri Nadzmi Mohd Salleh said. It was reported that Lotus had received RM290m cash from Proton. In another report quoting Nadzmi, Lotus was said to need RM500m more over the next two years to develop new models. (BT)

August vehicle sales up 12.8%
Malaysian automotive sales and production for August rose in annual terms, as players ramped up output and sold more vehicles ahead of the Hari Raya Aidifitri celebrations. The Malaysian Automotive Association said vehicle sales climbed 12.8% to 55,208 units from 48,937 units a year earlier. Cumulative sales for the eight months rose 16.5% to 409,806 vehicles from 351,846 units in the same period last year. (FinancialDaily)

PLUS finalising funding details
The proposed four-lane Jetpur-Somnath highway project in Gujarat, India, secured by PLUS Expressways and its joint bidding partner, IDFC Projects Ltd, is estimated at INR950 crores (100 rupees = RM6.78). PLUS said the concession period had been fixed at 30 years. The company and its partner are finalising the funding details of their special purpose vehicle that will undertake the project. The proposed project forms a section of 127.6km National Highway 8D, which starts at Jetpur and ends at Somnath. The scope of work includes rehabilitation, upgrading and widening the existing carriageway. (BT)

DXN sets 50pc dividend policy
DXN Holdings Bhd has set a dividend policy of at least 50% of its net profit to shareholders, with immediate effect. DXN, which is involved in the cultivation, manufacturing and marketing of health food supplements, said the dividend will be paid on a quarterly basis. “Based on the performance of the group, the company is of the opinion that it has the financial capability to meet the dividend policy,” DXN told Bursa Malaysia yesterday. (BT)

Kulim disposes of entire stake in Natoleo
Kulim (M) yesterday said it had completed the disposal of its entire equity in Natural Oleochemicals SB (Natoleo) comprising 186.56m shares for RM450m. (BT)

20100924 1107 Global Market News.

Tropical Storm Matthew heads for Central America
MEXICO CITY, Sept 23 (Reuters) - Tropical Storm Matthew formed over the western Caribbean on Thursday and was expected to hit Central America as early as Friday, the U.S. National Hurricane Center said.
The storm, which had maximum sustained winds of 45 mph (75 kph), could disrupt the coffee harvest due to begin early next month in major regional exporters Honduras and Guatemala.

Corn drops for 5th day, soy steady near 1-yr high
SINGAPORE, Sept 24 (Reuters) - Chicago corn futures lost more ground, taking weekly losses to more than 3 percent, as poor U.S. exports pressured the market, while soybeans were little changed, trading near 1-year highs on strong demand.
"Funds are record long in corn and I think the market is little bit fearful what happens if we see fund liquidation," said Brett Cooper, a senior markets manager at FCStone Australia.

Gold steady; renewed economic concerns support
SINGAPORE, Sept 24 (Reuters) - Gold prices were steady as disappointing data from the U.S. and Europe renewed concerns over the economic recovery, keeping market sentiment supported.
"In real terms it's hard to say gold prices are too high. I think the price will be quite sticky at these levels. From an investment perspective we are starting to see some substitution of gold for silver. In the other metals palladium may also benefit as a cheaper alternative to gold," Ben Westmore, commodities economist at National Australia Bank.

Yen dips, Japan stocks rise on intervention talk
TOKYO/HONG KONG, Sept 24 (Reuters) - The yen dropped on Friday, driven by rumours Japan was intervening for the second time this month to weaken it, while Japanese equities cut their losses on strength in exporter stocks.
"Given that this would be the second time (for intervention) and not as much of a surprise, I think the impact would be pretty limited at best. Even now, it seems tough for the dollar to hang onto the 85 yen level, and this will make it hard for the Nikkei to rise substantially in turn," said Masayoshi Okamoto, head of dealing with Jujiya Securities in Tokyo. 

GLOBAL MARKETS: Stocks slide, bonds rise as data fails to inspire
NEW YORK, Sept 23 (Reuters) - Global stocks fell and bond prices rose on Thursday as lackluster U.S. and euro zone economic data rekindled worries over growth prospects in the developed world.
"Market technicians had been very positive on our breaking out of that range, so falling back under it added to the decline we saw and accelerated our losses," said John Stoltzfus, senior market strategist at Ticonderoga Securities in New York.

PRECIOUS-Gold holds near record high on currency fears
LONDON, Sept 23 (Reuters) - Gold held near record highs on Thursday, eyeing a breach of $1,300 an ounce, while silver flirted with 30-year peaks as the threat of currency devaluation lifted interest in the metals as a safe store of value.
Spot gold  was bid at $1,291.85 an ounce at 0939 GMT, against $1,289.60 late in New York on Wednesday. U.S. gold futures for December delivery  rose 60 cents to $1,292.70.

FOREX-Dollar steadies after Fed-induced fall, kiwi down
LONDON, Sept 23 (Reuters) - The dollar steadied on Thursday after sharp selling the previous day when the U.S. Federal Reserve hinted at more easing, pushing Treasury yields down and keeping the greenback pinned near a five-month low on the euro.
Market players sold dollars as they positioned for more U.S. quantitative easing later this year.

Stocks, euro slip on euro zone concerns
LONDON, Sept 23 (Reuters) - World stocks slipped  while the euro fell broadly as a survey showed a slowdown in  growth of the euro zone services and manufacturing sectors and concerns intensified about the region's banks.
"The bottom line is that growth momentum continues to moderate," said Marco Valli, economist at UniCredit.

20100924 1105 Soy Oil & Palm Oil Related News.

Soy product futures ended mixed with soyoil climbing at the expense of soymeal on strong export demand. The market is garnering strong demand from China, with firm crude oil prices and fears of tightening world vegoil supplies buoying prices as well, analysts said. Soymeal slipped lower on oil/meal spreading. December soyoil settled 0.64 cents or 1.5% higher at 43.90 cents per pound. December soymeal ended $0.90 or 0.3% lower at $309.50 per short ton.(Source:CME)

Informa Cuts 2010 US Corn, Soy Output Estimates-Traders(Source:CME)
Private analytical firm Informa Economics cut its forecasts for U.S. corn and soybean production as the harvests advance. Informa pegged 2010 corn output at 12.88 billion bushels, below its early September estimate for a final crop of 13 billion, traders said. The firm estimated 2010 soybean output at 3.412 billion bushels, compared with an earlier projection of 3.437 billion, they said. Results from the early corn harvest have been disappointing and encouraged talk of a smaller-than-expected crop. The U.S. Department of Agriculture on Sept. 10 estimated corn production at 13.16 billion bushels. Early soybean harvest results have been strong, but Informa said Thursday that it was lowering its estimate for 2010 soybean acres, according to traders. The USDA on Sept. 10 pegged the soybean crop at 3.483 billion bushels.
The USDA is set to update its production estimates in a crop report due Oct. 8. As of Sunday, 18% of corn was harvested, above the five-year average of 10%, and 8% of soybeans were harvested, above the five-year average of 6%, according to the government. Informa estimated 2010 all-wheat production at 2.224 billion bushels, compared to USDA's September estimate of 2.265 billion, traders said. The government is expected to update its wheat production estimate in a small grains report Sept. 30. Informa also issued estimates for 2011 crop plantings, traders said. Reduced corn output expectations recently sparked a rally in corn prices and encouraged talk about the need for soybean prices to rise to compete for acreage. The firm projected 2011 corn plantings at 90.4 million acres and soybean plantings at 77.4 million acres, traders said. Informa estimated 2011 all-wheat plantings at 57 million acres and cotton plantings at 11.05 million acres, they said.
The USDA in June estimated 2010 corn plantings at 87.9 million acres and soybean acres at 78.9 million. The government pegged 2010 all-wheat plantings at 54.3 million and cotton plantings at 10.9

Palm Oil Body RSPO: Indonesia's Smart Has Breached Policies(Source:CME)
The Roundtable On Sustainable Palm Oil, an industry organization that groups palm producers, environmental groups and food companies, said that Indonesia-based Sinar Mas Agro Resources & Technology (SMAR.JK) has breached its policies and that the firm's membership in the group is at risk. "Members who have been found to not be in compliance and who continue to be in noncompliance with the RSPO regulations could ultimately face sanctions, including the suspension and, eventually, the termination of their membership of the RSPO," it said. The comments by RSPO could diminish Smart's hopes that global conglomerates could resume purchases of palm oil products from the company. Global food giants Nestle SA (NESN.VX) and Unilever NV (UN), as well as U.S.-based fast food chain Burger King Holdings Inc. (BKC), are on the long list of food companies that has suspended sourcing of palm oil from Smart in response to claims by Greenpeace that the producer is involved in deforestation.
Responding to RSPO's comments, Daud Dharsono, president director at Smart, said the company was committed to sustainable palm production and "will work towards RSPO's requirements." In August, Smart issued results from an independent audit--carried out by the Control Union Certification and the British Standard Institute--refuting charges by environmental group Greenpeace that it had cleared large swathes of land with high conservation value and drained peat lands to cultivate palm crop. Smart said the audit provided evidence that "the firm had operated responsibly and within the laws and regulations set out by the Indonesian government," but BSI said subsequently that some aspects of its report were misreported, and that Smart had set up plantations on deep peat in two estates. RSPO said on its website that its grievance panel had written to Smart and its parent firm, the Singapore-listed Golden Agri Resources Ltd (E5H.SG), about the breaches revealed by the auditors. Golden Agri is not a member of the RSPO.
RSPO also urged Golden Agri to stop announcing publicly it was in the process of obtaining RSPO certification for its estates or that it planned to become a RSPO member. "Golden Agri is not a member of the RSPO, nor has the RSPO yet received a membership application from the company. The panel encourages Golden Agri to submit a full and complete application for membership (and) documentation RSPO would need in order to review the application," the agency said.

Boosted by adverse weather; eye industry meet
KUALA LUMPUR, Sept 23 (Reuters) - Global vegetable oil markets made a little headway  on concerns over erratic weather curbing grain harvests across the globe.
"Weather problems in Canada, South Americas, China and Ukraine giving support to grain complex, especially corn and soy," said a trader in Kuala Lumpur. "Indirectly, soyoil is rallying."

Adani Wilmar to more than double soymeal exports
MUMBAI, Sept 23 (Reuters) - India's Adani Wilmar, the second-biggest edible oil importer in the country, aims to double its soymeal exports to 1.2 million tonnes in 2010/11 on higher availability of seeds.
"Certainly, we will export more soymeal in 2010/11, last year we had exported 500,000 tonnes. This year we will export 1.2 million tonnes," Pranav Adani, managing director told reporters on Thursday.

Brazil's southern soy states to see rain - Somar
SAO PAULO, Sept 22 (Reuters) - Heavy rainfall is beginning to roll through Brazil's southern soybean producing states, but widespread moisture is not seen in Brazil's early planting center-west region until early October, Somar meteorologists said Wednesday.
Brazil's official soy planting season began on Sept. 15 but dry weather as a result of La Nina has pushed back the planting date for two to three weeks in the No. 1 soybean growing state of Mato Grosso, according to present Somar forecasts.

Weather, festive demand stoke China's soyoil appetite
KUALA LUMPUR, Sept 23 (Reuters) - China's recent big buy of U.S. soyoil heralds a scramble for even more cargoes as domestic supplies shrink on strong festive demand and crops are hit by erratic weather.
The world's second-largest consumer of vegetable oil could buy 5 to 10 percent more soyoil in 2010 than the 2.4 million tonnes it bought last year, with purchases picking up in the second half as traders fret that cold weather may shrivel the domestic soy crop.

Argentine crops seen threatened by La Nina
CHICAGO, Sept 22 (Reuters) - The strengthening weather formation known as La Nina is causing concerns about the upcoming South American growing season for wheat, corn and soybeans, a U.S. agricultural meteorologist said on Wednesday.
"I would be very concerned about Argentina. They did pick up some significant rains this month which benefited the winter wheat crop. However, La Nina correlates quite well with drought in central Argentina," Mike Palmerino, agricultural meteorologist for Telvent DTN, told the Reuters Global Ags Forum, an online chatroom for grain traders.