Tuesday, November 30, 2010

20101130 1814 FCPO EOD Daily Chart Study.

FCPO closed : 3412, changed : +31 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : recovering, seller leaving as buyer returned.
Support : 3350, 3300 3270 3100 level.
Resistant : 3420, 3450, 3470 level.
Comment :
Improving export data lead FCPO to end higher recorded gain with improving volume changed hand after market opened, tested lower support level, recovered surged new high followed by profit taking activities press price to closed off the low. Daily chart formed a doji up bar candle continue the uptrend movement testing higher resistant level with the reading suggesting upside biased market development.
When to buy : buy at support and weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20101130 1747 FKLI EOD Daily Chart Study.

FKLI closed : 1488.5, changed : -8.5 point,  volume : lower.
Bollinger band reading : side way range bound downside biased.
MACD Histrogram : recovering, seller closing position.
Support : 1485, 1470, 1458, 1445 level.
Resistant : 1500, 1530, 1550 level.
Comment :
FKLI ended lower recorded loss with slower volume changed hand continue to trade side ways following most regional market that traded lower. Daily chart formed a small body doji down bar candle resulted the 3rd harami candle stick formation since 10 Nov 2010 hinted a potential market reversal with the reading suggesting a side way range bound downside 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.

20101130 1152 Breaking News.

India's economy grew a faster-
than-expected 8.9 percent in the September quarter from a year earlier, government data released on Tuesday showed. The median forecast in a Reuters' poll was for an annual rise of 8.3 percent. "Overall the economy seems to be in good shape, though the next two quarters will see a moderation from these levels," said D.K. Joshi, principal economist at Crisil.

Europe's sovereign debt woes will continue to tug at markets, as investors Tuesday also get a few new pieces of U.S. economic data and hear from Fed Chairman Ben Bernanke on the economy. Trader
s had expected the markets to be swayed this week in both directions — by the negative headlines from Europe on its debt crisis, and then by the positives of better-than-expected U.S. economic reports. The week's data puts the focus on the consumer, with holiday and other chain stores and car sales data. The calendar is also heavy with manufacturing, housing and employment news, and ends with the November jobs report Friday.

20101130 0931 Global Economics News.

E.U: Growth to weaken as crisis 'shadow' remains next year . Budget cuts to stem a mounting debt crisis will hurt consumer demand and faltering global expansion curbs exports, the European Commission said. Gross-domestic-product growth in the 16-nation euro region may weaken to 1.5% YoY in 2011 from 1.7% YoY this year. While Germany may expand 3.7% YoY this year, the economies of Ireland, Greece and Spain will continue to shrink. (Source: Bloomberg)

U.K: House prices fell for a fifth month in November as demand for property dropped the most in almost two years, Hometrack Ltd. said. The average cost of a home fell 0.8% MoM from October to GBP155,000 (USD242,900). Demand for homes, measured by the change in new buyers registering with real-estate agents, fell 4.3% MoM, the biggest decline since January 2009. (Source: Bloomberg)

Spain: Inflation slowed in November after the economic recovery stalled in the third quarter. Consumer prices rose 2.2% YoY, based on a European Union measure, after advancing 2.3% YoY in October, the Madrid-based National Statistics Institute said in a statement. (Source: Bloomberg)

Ireland: To pay an average 5.8% for international bailout loans as part of an agreement that protected the senior bondholders of Irish banks and preserved the country's low corporate tax policy. The state was granted funds amounting to EUR 67.5b (USD 90b) with an average duration of 7 1/2 years by the European Union and International Monetary Fund, the government said. The average interest compares with a rate of around 5% charged to Greece for three-year loans earlier this year. (Source: Bloomberg)

Greece: Wins EU pledge for 4 1/2-year extension to repay bailout to match the seven-year term for the rescue Ireland received. Greece in May got a three-year aid package of EUR 110b (USD 146b) from the euro area and the International Monetary Fund to prevent a debt default. (Source: Bloomberg)

Japan: Retail sales declined for the first time this year after a stimulus program ended and the tobacco tax was increased. Sales decreased 0.2% YoY in October the Trade Ministry said in Tokyo. From a month earlier, they tumbled 1.9% MoM. (Source: Bloomberg)

S. Korea: Industrial output rises less than estimated in October . Output advanced 13.5% YoY compared to a median forecast for a 15.1% YoY gain. Production fell 4.2% MoM on a monthly basis, the third straight decline. (Source: Bloomberg) 

Thailand: May refrain from rate increase as growth risks climb
The Bank of Thailand may refrain from raising its policy interest rate, keeping borrowing costs unchanged for a second consecutive meeting as risks to the nation’s economic recovery increase. The central bank will leave its benchmark one-day bond repurchase rate at 1.75%, according to 12 out of 17 economists surveyed by Bloomberg News. The rest expect a quarter-percentage-point increase. (Bloomberg)

UK: Trims growth forecasts, sees no change in deficit
The British economy faces a “sluggish” outlook with the recovery likely to be slower than after previous recessions, the Treasury’s fiscal watchdog said. The Office for Budget Responsibility cut its 2011 growth forecast today to 2.1% from 2.3% and said the economy will expand 2.6% in 2012 instead of 2.8%. Growth will be faster than expected this year, it said. (Bloomberg)

Australia: GDP probably hit ‘soft patch’ as rates, currency rose
Australia’s economic growth slowed last quarter as higher borrowing costs and less government stimulus weakened the housing market, while a stronger currency hurt exports, economists predicted. Gross domestic product advanced 0.5% from the previous three months, when it grew 1.2%, according to the median of 24 estimates in a Bloomberg News survey.(Bloomberg)

EU: Irish rescue fails to stem turmoil; Spain bonds drop
European governments’ EUR85bn (USD113bn) bailout package for Ireland failed to quell the market turmoil menacing the euro as stocks, bonds and the currency declined. Irish 10-year bonds slid after an early advance, Spanish bonds fell by the most since the euro’s launch and European shares sank 1.4%. The euro weakened against 15 of its 16 major counterparts and the cost of insuring the debt of Spain and Portugal against default soared to records.(Bloomberg)

EU: European economic confidence rises to three-year high
European confidence in the economic outlook improved to the highest in three years in November as Germany’s export-driven growth helped counter concerns that a spreading sovereign-debt crisis will hurt the recovery. An index of executive and consumer sentiment in the 16 euro nations rose to 105.3 from 103.8 in October, the European Commission in Brussels said in a statement. That’s the highest since November 2007. Economists forecast a gain to 105, the median of 26 estimates in a Bloomberg News survey shows. (Bloomberg)

US: Monthly job growth to double, RDQ’s Ryding says
Payrolls in the US are poised to grow by about 200,000 a month, double the pace so far this year, said John Ryding of RDQ Economics in New York. Employment increased by 145,000 workers this month after a 151,000 gain in October that marked the biggest advance since May, according to the median forecast of 82 economists surveyed by Bloomberg News ahead of Labor Department data.(Bloomberg)

20101130 0931 Malaysia Corporate News.

MISC: Selling older liner vessels. National carrier MISC Bhd could sell three of its smaller container vessels consisting of Bunga Bidara, Bunga Delima and Bunga Kenari. The three vessels are surplus to its requirements and a sale can be concluded without hassle. (Source: The Edge Financial Daily)

Funds: RM1b real estate fund for bumiputras launched. Pelaburan Hartanah Bhd (PHB) launched its RM1b Amanah Hartanah Bumiputera (AHB) investment fund. The fund would enable bumiputra investors to own real estate assets with a minimum investment of RM500. The fund's underlying assets are CP Tower in Petaling Jaya, 26 Boulevard in Putrajaya, Wisma Consplant in Subang Jaya, Tesco Setia Alam and Industrial Complex in Shah Alam. (Source: The Star)

Mining: Vale to invest RM500m in Perak. Brazil's Vale SA has approved plans to invest as much as RM500m in Perak next year to help build a maritime terminal and a stockyard in Teluk Rubiah, near the Straits of Malacca. The distribution centre is for a pelletising plant, which converts raw iron ore into pellets that are used in steel production. Vale intends to use Teluk Rubiah as its main base to export the materials to the Far East, especially China. (Source: Business Times)

E&E: Investments to exceed RM5b this year. Malaysian Investment Development Authority (Mida) expects total investments in the electronics and electrical (E&E) sector this year to exceed RM5b from about RM4.7b in 2009. The top investors were from the United States, Germany, Japan, and Taiwan. Mida is negotiating to bring in fresh investments for solar power, wireless communication, cloud computing and light-emitting diodes industries next year. (Source: The Star)

Plantation: Sarawak to double oil palm plantation area. Sarawak, which recorded its fastest pace in opening up land for oil palm cultivation in the past one year, targets to double its plantation area to two million hectares. State Land Development Minister Datuk Dr James Masing was optimistic that the new target could be reached by 2020, making Sarawak the biggest crude palm oil producing state in Malaysia. (Source: The Star)

Petra Energy front runner for Petronas job
Three companies - Petra Energy, Carimin SB and Shapadu Corp SB - are understood to have emerged as the front runners to bag retro-fitting, hook-up and commissioning jobs for oilfields located in Peninsular and East Malaysia from Petroliam Nasional (PETRONAS), industry sources said. According to sources, the contracts are valued at RM1.2bn in total and could be evenly broken down to three parcels of RM400m between Sabah, Sarawak and Peninsular Malaysia. Petra Energy is understood to have almost secured the Sarawak portion, while Carimin is close to bagging the Sabah job. Shapadu, meanwhile, is said to be the front runner to get the retrofitting, hook-up and commissioning jobs for Peninsular Malaysia. (Financial Daily)

Integrax sees LMT tagged at no less than RM250m
Port operator Integrax may consider selling its stake in Lumut Maritime Terminal SB (LMT) for a price tag of no less than RM125m. “I think the value of LMT would be in excess of a quarter billion (RM250m),” Harun Halim Rasip, joint chief executive of Integrax said. Currently, Integrax has a 50% minus one share in LMT while Perak Corp, via its unit Taipan Merit SB has a 50% plus one share in LMT.(Financial Daily)

Pos Malaysia ventures into e-commerce
Pos Malaysia is hoping to tap into the vast e-commerce business to broaden its revenue base by launching its new online shopping portal, Post-Me.com.my. Pos Malaysia’s Group Managing Director and CEO Datuk Syed Faisal Albar added that Pos Malaysia would invest about RM3m-RM5m on the online portal and the venture would derive 5% to 10% profit for every product sold. (FinancialDaily)

Study on proposed Proton-Perodua merger completed
A study on a possible merger between the country's top two national car companies has been completed, International Trade and Industry Minister (Miti) Datuk Seri Mustapa Mohamed said. Miti is setting a date by the year-end to discuss a third-party's research findings on the possible merger between Proton Holdings and Perusahaan Otomobil Kedua SB. The study was carried out by Frost & Sullivan. (Btimes)

MCMC: No 700MHz allocation to YTL so far
MCMC has come to clarify that no spectrum assignment on the 700MHz frequency band has been issued to YTL so far. This follows reports by media that YTL Communications as been granted an extra spectrum licence compared with other incumbents. The operating issued to YTL is to offer pay TV broadcasting using 700 MHz band. MCMC added that it is currently studying YTL’s detailed business plan to roll out its digital pay TV slated to be launched next year with US-based Sezmi Corp. (FinancialDaily)

20101130 0926 Global Market News.

Oil retraces after jump, holds above $85
SINGAPORE, Nov 30 (Reuters) - Oil slipped,  retracing part of the sharp gains seen in the previous  session, while traders awaited further evidence that  inventories were draining amid hopes of a surge in demand for  heating in sight.    
"Investors are in a wait-and-see attitude, holding for  some positive news to boost prices further," said Serene Lim,  a Singapore-based oil analyst at ANZ. 

Malaysia govt rolls out tax incentives for oil and gas development
KUALA LUMPUR, Nov 30 (Reuters) - Malaysia government on  Tuesday announced new tax incentives to develop the country's  oil and gas reosurces, which will be implemented by state oil  firm Petronas.
Petronas manages the Southeast Asian country's oil and gas resources. 

Wheat up for 4th day on weather concerns;corn, soy steady
SINGAPORE, Nov 30 (Reuters) - Chicago wheat futures  bounced half a percent, rising for a fourth  straight session as adverse weather across the U.S. winter  crop areas and excessive rains in Australia continued to  support the market.
"The headline story for wheat has certainly been in  excessive rains in Australia, also they are also talking about  cold weather and not too much rain for hard red belt in the  U.S.," said Brett Cooper, a senior manager of markets at  FCStone Australia. 

Gold steady; Europe, Koreas cloud market outlook
SINGAPORE, Nov 30 (Reuters) - Spot gold was steady aided by physical buying, while investors continued  to watch the progress in euro zone's debt problem and tensions  in the Korean peninsula for trading cues. 
"We are in a period during which the market really doesn&#8217t know which direction things are heading. The European situation is still very uncertain. We had supposedly the solution of the Irish situation, but it didn't seem to please  the markets too much," said Darren Heathcote, head of trading  at Investec Australia. 

OIL: Crude steady after jump on cold weather
SINGAPORE, Nov 30 (Reuters) - Oil was steady near $86 on Tuesday after rising more than 2 percent a day earlier, led by futures of heating fuels including gas oil, as cold weather gripped northern Europe, raising expectations of higher consumption.
A Reuters oil poll showed most analysts revising price estimates higher, while a Reuters survey of OPEC showed  slightly better compliance with production target limits.

COMMODITY MARKETS: Oil surges above $85, wheat higher on weather
CHICAGO, Nov 29 (Reuters) - Oil surged over 2 percent to a two-week high above $85 on Monday, while gold rose $6 an ounce but grains were mixed in subdued trade as commodities looked past the rising dollar to refocus on market-specific fundamentals.
"There is a holiday trading pattern that is starting to develop. I think a lot of people will step to the sidelines through the holidays and stay out of trouble," said Shawn McCambridge, an analyst for Prudential Bache Commodities.  

GLOBAL MARKETS: Stocks slip, dollar up as Irish bailout joy fades
NEW YORK, Nov 29 (Reuters) - Global stocks fell and the greenback rose as investors' optimism about Ireland's 85-billion-euro ($115 bln) debt bailout waned, exposing the unappetizing prospect that Europe's fiscal problems will linger.
"Tell me what the euro's going to do and I'll tell you where the (stock) market is going to go," said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles.

France,Germany say euro saved, investors sceptical
BERLIN/PARIS, Nov 29 (Reuters) - Germany and France declared on Monday that Europe had taken decisive action to save the euro by rescuing Ireland and laying the foundations of a permanent debt resolution system, but investors were not convinced.
Under pressure to arrest the threat to the currency before markets opened and prevent contagion engulfing Portugal and Spain, EU finance ministers endorsed an 85 billion-euro ($115 billion) loan package on Sunday to help Dublin cover bad bank debts and bridge a huge budget deficit.

China c.bank official plays down FX inflow worries
SHANGHAI, Nov 29 (Reuters) - A set of data published by the People's Bank of China shows capital inflows jumped in October, reinforcing the government's rationale for a slew of recent monetary tightening steps.
The central bank and Chinese institutions spent 519 billion yuan ($78 billion) to absorb foreign exchange flowing into China last month, according to Reuters calculations based on the latest "Position for Forex Purchases" data published over the weekend.

PRECIOUS-Gold retreats as euro zone debt woes support dollar
LONDON, Nov 29 (Reuters) - Gold eased below $1,360 an ounce in Europe on Monday, surrendering earlier gains, as the dollar hit a fresh two-month high versus the euro amid concerns over debt levels in some parts of the euro zone.
Portugal is the next country that may struggle with its sovereign debt levels, investors fear, after both Greece and Ireland were forced to seek bailouts from the European Union earlier this year.

FOREX-Euro near 2-mth low, focus on Portugal, Spain
LONDON, Nov 29 (Reuters) - The euro hovered near two-month lows against the dollar on Monday as investors looked past a rescue package for Ireland to debt problems in other peripheral euro zone economies and sold the currency on any bounce.
European Union finance ministers endorsed an 85 billion euro package to help Dublin cover bad bank debts and bridge its budget deficit, and approved outlines of a permanent crisis- resolution system which could make private bond holders share the burden of restructuring sovereign debt after 2013.

Euro struggles despite Irish deal, doubts abound
SYDNEY, Nov 29 (Reuters) - Doubts over whether a rescue  deal for debt-soaked Ireland can plug Europe's debt crisis  drove the euro to two-month lows, though shares in  Europe and Asia managed to move higher.
"There are still lingering worries about the rest of the  countries, including Portugal and Spain," said Lorraine Tan,  the director of Asian equity research at Standard & Poor's.

Biofuel market to grow in 2011 on LatAm, higher oil
KUALA LUMPUR, Nov 29 (Reuters) - Global biodiesel output  may rise by a fifth to 21.6 million tonnes in 2011 as South  American nations push on with their mandates and competing  crude oil prices continue to rise, a key analyst said on Monday.
Biofuel output will hit 18 million tonnes this year and  the rising trend may contribute to tighter vegetable oil  supplies in the coming months and lift prices, said Chris de  Lavigne, Global Vice President of Industrial Practices at  Frost & Sullivan.

20101130 0924 Soy Oil & Palm Oil Related News.

ITS CPO export up 11.7% to 1,512,250 tonnes for the period of 1~30 Nov 2010.
SGS CPO export up 19.2% to 1,569,314 tonnes for the period of 1~30 Nov 2010.  

Soy product futures inched lower, sliding in unison with declines in soybeans. Soyoil futures drifted lower in late dealings, as end of the session profit taking overcame early strength from spillover support from crude oil and higher world vegoil markets, analysts said. CBOT January soyoil ended 0.03 cents or 0.06% lower at 49.87 cents per pound, and January soymeal traded $0.50 or 0.1% lower at $338.60 a short ton.(Source: CME)

Rains Forecast For Brazil's Main Soy, Cane Regions In Dec (Source: CME)
Brazil's main soy and sugarcane growing regions are expected to begin receiving summer rains in the first half of December, according to private weather service Somar in a report. Cold fronts should cause rainfall in the producing regions of southeastern and center-west Brazil. The regions also should register isolated rains in the afternoon called summer rains, according to the weather service. The cold fronts should extend to northeastern and northern Brazil in the second half of December, also benefiting growers in the states of Bahia, Maranhao and Piaui, Somar said in its weekly bulletin. Somar, though, forecast little rainfall in southern Brazil for the next two weeks.
Rio Grande do Sul, Brazil's southernmost state and an important producer of soybeans and rice, is forecast to continue with the dry weather observed since October in the southern part of the state, according to Paulo Etchichury, managing director of Somar. The outlook is better for Parana, Brazil's second-largest producer state of soybeans after Mato Grosso, according to Somar. Parana, also in southern Brazil, should have rainfall, especially on the weekend, the service said. The rain in Parana should extend to Santa Catarina state and the north of Rio Grande do Sul state, according to the report.

Malaysia palm oil at 2-week top on weather, Irish bailout
KUALA LUMPUR, Nov 29 (Reuters) - Malaysian crude palm oil  futures  hit a two-week high as caution  receded after European authorities agreed to bail out Ireland  and concerns grew over the weather in oilseed growing regions.
"There appears to be a lot of bullish sentiment and palm  oil got its latest cue from crude oil, which also jumped on  the Irish news," said a trader with a domestic commodities  brokerage.

Argentina soy planting makes patchy progress - govt
BUENOS AIRES, Nov 26 (Reuters) - Showers in Argentine agricultural regions have allowed farmers to restart 2010/11 soy seeding, but dryness in part of the farm belt delayed planting in some areas, the government said on Friday.
Argentina is the world's No. 3 soybean supplier and the government has forecast soy area at 18.65 million hectares (46.08 million acres), slightly above last season.

Weather, economic concerns in focus at Bali palm oil meet
KUALA LUMPUR, Nov 29 (Reuters) - Traders will assess the  impact of erratic weather on palm oil output at an annual  Indonesian industry meeting this week, debating on whether a  La Nina can touch off a price rally in 2011.
But palm oil's  tumble of more than 8 percent in  the last three weeks, sparked by Irish debt woes and news of  China's plans to rein in food-driven inflation, suggests a  fragile economic recovery may overshadow weather problems.

Monday, November 29, 2010

20101129 1823 FCPO EOD Daily Chart Study.

FCPO closed : 3381, changed : +107 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : recovering, seller closing position.
Support : 3350, 3300 3270 3100 level.
Resistant : 3420, 3450, 3470 level.
Comment :
Weather concern and anticipate of a better export data release tomorrow lead FCPO to rallied recorded substantial gain with higher volume transacted plus market participant focus on the 3 days Bali 6th Indonesia Palm Oil Conference starting from 1st Dec. Daily chart formed a wide range up bar candle rebounding from the middle Bollinger band support level as the reading suggesting further upside biased potential market development.
When to buy : buy at support and weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20101129 1736 FKLI EOD Daily Chart Study.

FKLI closed : 1497, changed : +14.5 point,  volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : turned upward, seller reducing position.
Support : 1485, 1470, 1458 level.
Resistant : 1500, 1530, 1550 level.
Comment :
Wild market FKLI opened and tested lower support level and recovered surging upward recorded huge gain with lower volume transacted as market opened on concern of a potential Korean war follows by news of Irish bailout plus a firmer Taiwan China political environment after Taiwan’s ruling party Kuomintang won three of five seats in mayoral elections, signifying support for President Ma Ying-jeou’s pro-China policies.
Daily chart formed a longer lower shadow wide body up doji bar candle rebounding upward after tested lower Bollinger band level with the reading suggesting a consolidation side way range bound 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.

20101129 1011 Global Economics News.

Singapore: Industrial output growth quickens on pharmaceuticals
Singapore’s industrial production rose at the fastest pace in five months as pharmaceutical output surged, offsetting slower growth in electronics manufacturing. Manufacturing, which accounts for about a quarter of the economy, climbed 31% in October from a year earlier, after a revised 26.8% increase in September, the Economic Development Board said in a statement. (Bloomberg)

Ireland: Wins EUR85bn aid; Germany drops threat on bonds
European governments threw debt-strapped Ireland an EUR85bn (USD113bn) lifeline and scaled back proposals to saddle bondholders with losses in future budget crises, seeking to reverse the market selloff menacing the EUR. European finance ministers backed a Franco-German compromise on post-2013 bailouts that watered down calls by German Chancellor Angela Merkel for investors to be forced to take losses to share the cost with taxpayers. (Bloomberg)

Germany: Inflation accelerates more than economists forecast
Inflation in Germany, Europe’s largest economy, accelerated more than economists forecast in November after food and energy prices rose. The inflation rate, calculated using a harmonized European method, increased to 1.6% from 1.3% in October, the Federal Statistics Office in Wiesbaden said. Economists predicted a gain to 1.4%, according to the median of 21 estimates in a survey. In the month, prices rose 0.1%. (Bloomberg)

Greece: Wins EU pledge for 4 1/2-year extension to repay bailout
Greece is set to get an extra four- and-a-half years to repay emergency loans to match the seven- year term for the rescue Ireland received. Greece got a three-year aid package in May of EUR110bn (USD146bn) from the Euro area and the International Monetary Fund to prevent a debt default. Ireland won an EUR85bn package for seven-and-a-half years at a meeting where European finance ministers said they would “rapidly examine the necessity of aligning the maturities of the financing for Greece to that of Ireland.” (Bloomberg)

US: Payrolls, manufacturing probably expanded
Payrolls and manufacturing probably expanded in November as the US recovery showed signs of a pickup heading into 2011, economists said before reports this week. Employment increased by 145,000 workers this month after a 151,000 gain in October that marked the biggest advance since May, according to the median forecast of 67 economists surveyed ahead of Labor Department data on 3 December. (Bloomberg)

20101129 1009 Malaysia Corporate News.

SPNB awards RM1.7bn jobs for LRT extension
Syarikat Prasarana Negara Bhd (SPNB) has awarded contracts worth RM1.7bn for the first phase (Package A) of the RM7bn light rail transit (LRT) extension project involving the Kelana Jaya and Ampang lines. In a statement last Friday, SPNB, which was established by the Finance Ministry to facilitate, undertake and expedite infrastructure projects for the Government, said the main contractor facilities job for Package A of the Kelana Jaya line, valued at RM950m, was awarded to Trans Resources Corp Bhd. The work will take 30 months to complete. UEM Builders Bhd and Intria Bina SB were jointly appointed the nominated sub-contractors for the fabrication and delivery of segmental box girder jobs worth RM93.16m, which is expected to take 21 months to complete. Package A of the Kelana Jaya line will be a 9.2km extension from the Kelana Jaya station to Summit (Station 7). Package B will involve a 7.8km extension from Station 7 to the Putra Heights station. (StarBiz)

Ireka unit clinches RM233m contract
Ireka Corp Bhd, via wholly-owned unit Ireka Engineering & Construction SB, has secured a RM232.75m contract for the proposed development of offices and a hotel in Kuala Lumpur. It told Bursa Malaysia last Friday that Ireka Engineering had received a letter of intent from Transmission Technology SB for the project. The development would involve architectural and mechanical and electrical works for two basement levels and the 13-level podium, as well as 27-storey and 37-storey office towers, it added. (StarBiz)

HLB deadline for EON Cap extended
Hong Leong Bank Bhd (HLB) told Bursa Malaysia that it had extended the deadline for EON Capital Bhd (EON Cap) to accept its offer to acquire the entire assets and liabilities to 31 April 2011, from Tuesday tomorrow. This will be the second time the deadline has been extended. The deadline had earlier been extended from 15 Aug. HLB is embroiled in an ongoing court battle prolonging its merger with EON Cap. In April, HLB made an offer of RM7.30 per share to assume all the assets and liabilities of EON Cap. Primus (M) SB a unit of Hong Kongbased investment company Primus Pacific Partners and the single largest shareholder with a 20.2% stake in EON Cap was against the idea, claiming HLB's offer was too low. Primus had paid RM9.55 per EON Cap share when it bought into the bank in 2007. (StarBiz)

Jimah Energy plans listing
Independent power producer Jimah Energy Ventures SB is planning to go public in what could be one of the bigger initial public offerings (IPO) of 2011. A merchant banker has been hired but there are many details yet to be finalised. "The listing is targeted for mid-2011 but there are details to be sorted out including the name the listed company will carry," its chairman Tunku Naquiyuddin Tuanku Ja'afar said. He expects Jimah to raise "hundreds of million ringgit" from the IPO. "A lot of the funding is by project financing and we just need a capital base," he said, adding that the equity portion could be about 30%. "The reason we are listing is because we have been invited by the Energy Commission to bid for an additional 1,000 megawatts (MW)," Tunku Naquiyuddin told Business Times in an interview. (BT)

Potential beneficiaries of second 1000MW coal plant
A number of construction player stand to benefit from the proposal for a second 1000MW coal-fired power plant as part of the ongoing plan to meet the country’s growing power needs. It was reported last week that the Energy Commission had requested for proposals from two power plant operators for an additional 1000MW coal-fired plant. According to the Energy Commission’s chairman Tan Sri Ahmad Tajuddin Mohd Ali. The requests were made to two independent power producers (IPPs). One was made to Tanjung Bin Power Plant, run by Malakoff Bhd, which is under MMC Corp Bhd while the other to Jimah Power, which is owned by Jimah Energy Ventures SB. (Financial Daily)

20101129 1005 Global Market News.

Oil approaches two-week high on Ireland rescue
SINGAPORE, Nov 29 (Reuters) - Oil rose past $84 after the European Union approved a rescue for Ireland and  outlined a permanent system to resolve the euro zone's debt  crisis, providing some confidence that energy demand growth  will remain resilient next year.
"The southern European sovereign debt crisis would have to  take a severe turn for the worse to derail positive commodity  price trends that are finding strong support from improving  fundamentals and positive market sentiment towards growth  assets" following the second wave of U.S. expansionary  monetary policy, Barclays Capital analysts, including Kevin  Norrish, said in a report on Monday.

U.S. wheat climbs to 1-week top, corn rises 1 pct
SINGAPORE, Nov 29 (Reuters)- - Chicago wheat rose 1.6  percent to its highest in more than a week, drawing  support form dry weather hurting crops in parts of the U.S.  wheat belt, while corn futures bounced 1 percent, buoyed by  strong global demand.
"We are certainly looking at what is happening with the  weather around the world, the poor crop conditions in the hard  red winter wheat belt in the United States continues to raise  concerns," said Luke Matthews, a commodity strategist at  Commonwealth Bank in Sydney.

Argentina soy planting makes patchy progress - govt
BUENOS AIRES, Nov 26 (Reuters) - Showers in Argentine agricultural regions have allowed farmers to restart 2010/11 soy seeding, but dryness in part of the farm belt delayed planting in some areas, the government said on Friday.
Argentina is the world's No. 3 soybean supplier and the government has forecast soy area at 18.65 million hectares (46.08 million acres), slightly above last season.

Gold bounces from lows; jewellers buy
SINGAPORE, Nov 29 (Reuters) - Gold rebounded after an early drop spurred buying from jewellers in Asia, but  further gains could be limited by a rally in the U.S. dollar  amid persistent euro zone debt concerns.
"For today, I would look at support for gold at about  $1,350. However, I think if we see a breach of this level,  then we could see gold retreating further," said Ong Yi Ling,  investment analyst at Phillip Futures in Singapore.   

OIL: Crude rises on Ireland rescue
SINGAPORE, Nov 29 (Reuters) - Oil rose to $84 on Monday  after the European Union approved a rescue for Ireland and  outlined a permanent system to resolve the euro zone's debt  crisis, instilling some confidence that energy demand growth  will remain resilient next year.
Finance ministers from the 16-nation euro zone, anxious  to prevent market contagion engulfing Portugal and Spain,  unanimously endorsed an emergency loan package of 85 billion  euros ($115 billion) to help Dublin cover bad bank debts and  bridge a huge budget deficit.

COMMODITY MARKETS: Most markets dip in thin trade; cotton, soy tumble
NEW YORK, Nov 26 (Reuters) - Oil and metals closed slightly lower on Friday as U.S. markets drifted after Thursday's Thanksgiving holiday but cotton tumbled and soybeans also saw steep losses as the dollar hit a two-month high against the
euro.
"It was a relatively strong performance for crude, given the rally in the dollar and the slip in the S&P (500 stock index)," Tim Evans, energy analyst at Citi Futures Perspective in New York.

GLOBAL MARKETS: Euro bounces on Irish deal, but doubts abound
SYDNEY, Nov 29 (Reuters) - The embattled euro crept off  two-month lows on Monday after European authorities tried to  protect the region's financial stability by agreeing to lend  debt-soaked Ireland 85 billion euros.    
"The package is pretty much what most would have  anticipated, so it's not a surprise to anyone," said Greg  Gibbs, strategist at RBS in Sydney.

Bunds rise on periphery worry; Spanish yields up
LONDON, Nov 26 (Reuters) - German government bond yields fell on Friday while those of Portuguese and Spanish bonds rose on mounting anxiety over where the euro zone crisis might spread to next.
Spanish and Portuguese bonds underperformed with Portugal's 10-year yield spreads over Bunds widening by 15 basis points to 468 bps after the Financial Times Deutschland reported that the majority of euro zone states and the European Central Bank were urging Portugal to apply for a financial bailout.

FUND VIEW-Hedge fund Mulvaney backs commodities bull run
LONDON, Nov 25 (Reuters) - The recent downturn in commodity prices is likely to prove a blip in a longer-term bull run, according to Mulvaney Capital, one of the top-performing hedge funds in recent months.
Paul Mulvaney, chief executive of $160 million hedge fund firm Mulvaney Capital Management, said his computer-driven fund had cut back exposure during this month's setback in commodity markets but was still positioned for further gains.

Commodity currencies look shaky before year-end
LONDON, Nov 25 (Reuters) - Commodity-linked currencies will be vulnerable to a sell-off as concerns about a slowdown in emerging Asia encourage investors to pare their exposure to risk and cut over-extended long positions before year-end.
The growth-linked Australian, Canadian and New Zealand dollars, which earlier this month began to fall from recent highs, are particularly sensitive to concerns China may slow as a result of policy measures aimed at curbing inflation.

PRECIOUS-Gold steady; eyes $1,400/oz on Europe, Korea worries
SINGAPORE, Nov 26 (Reuters) - Gold was steady on Friday,  trading just shy of $1,400 an ounce, underpinned by anxiety of  Europe's debt situation and geo-political tensions in Asia.
Spot gold  edged lower 0.2 percent to $1,371.65 an  ounce by 0537 GMT, trading below its all-time high around  $1,424 struck in early November.

FOREX-Euro hits fresh 2-mth low as periphery worry grows
LONDON, Nov 26 (Reuters) - The euro fell to a fresh two-month low against a resurgent dollar on Friday as mounting speculation that Portugal will need to follow Ireland in seeking financial aid further unsettled nervous investors.
The Australian dollar tumbled after the Australian central bank quashed chances of an imminent rate hike and the yen hit a seven-week low against the dollar, with fresh sabre-rattling by North Korea helping the U.S. currency.

U.S. wheat up on weather concerns, soy slips
SINGAPORE, Nov 26 (REUTERS) - Chicago wheat futures gained  around half a percent, rising for a second straight  day as poor rains in the United States and China's producing  areas supported the market, while soybeans fell 0.4 percent,  pressured by a stronger dollar.
"There is no change in weather situation as it continues  be dry in the U.S. and people are starting to be a bit  concerned about dryness in China," said Brett Cooper, a senior  manager of markets at FCStone Australia.

Euro falls to 2-month low; Asia stocks slide
HONG KONG, Nov 26 (Reuters) - The euro fell to a two-month  low, with Europe's fiscal problems looking more  likely to spread than be solved in the near term, while the  looming year-end kept many equity investors eager to take  profits, weighing on Asian stock markets.
"Recent purchases done by foreign investors are not simply  short covering but I think fresh funds are being poured into Japanese shares. More follow-through buying could drive up  shares prices further," Nagayuki Yamagishi, a strategist at  Mitsubishi UFJ Morgan Stanley Securities in Tokyo.

U.S. oil stays near $84; Europe, China concerns linger
SINGAPORE, Nov 26 (Reuters) - U.S. oil held steady near  $84, paving the way for its first weekly rise in  three weeks, although ongoing concerns about a wider debt  crisis in Europe and Chinese inflation continued to weigh in  post-holiday thin trade.
"We know the IMF will back loans to Ireland but we don't  know how it will be implemented," Taylor said, adding that the  focus may also turn to Portugal's debts as interest rates for  its bonds have risen sharply.

US dollar up; Asia stocks slip on profit taking
HONG KONG, Nov 26 (Reuters) - The U.S. dollar steadied, as traders girded for a break above tough chart  obstacles on Europe's fiscal problems, while the looming year  end kept many equity investors eager to take profits, weighing  on Asian stock markets.
The Australian dollar slid after the head of the country's  central bank said interest rates were about right for the near  term, extinguishing speculation the currency's yield advantage  would get a policy boost in the next few months.

20101129 0951 Soy Oil & Palm Oil Related News.

Palm slips on stronger dollar, weather concerns cap loss
KUALA LUMPUR, Nov 26 (Reuters) - Malaysian palm oil  futures slipped as a stronger dollar prompted some  profit taking although concerns over monsoon rains hurting  output curbed losses.
"Palm oil is just drawing back a little on profit taking  because of the stronger dollar and since the market rose a  little too high the day before," said a trader with a local  commodities brokerage.

Palm prices face pressure in 2011 from output, soy-analyst
KUALA LUMPUR, Nov 26 (Reuters) - Malaysian palm oil should  fall to 2,600 ringgit ($830) by June 2011 on higher output in  Southeast Asia and a decent soy crop but the pace of decline  will be slower than the market expects, thanks to unusually  low stocks, a key analyst said on Friday.
The forecast by LMC Chairman James Fry represents a fall  of 20.6 percent from current palm oil futures , which  closed at 3,276 ringgit per tonne on Thursday, and takes into  account palm oil's higher than usual premium over diesel.

China sells 70 pct of 100,000 T rapeseed oil reserves
BEIJING, Nov 26 (Reuters) - The Chinese government sold 70,300 tonnes, or 70 percent of 100,000 tonnes of rapeseed oil reserves offered, at a weekly state auction, according to bidding results posted on a government website.
Beijing restricted bidding of the edible oil to some big companies, which are required to sell the oil to retail markets.

Argentina soy crop seen at 49.5 mln T- Rosario
BUENOS AIRES, Nov 25 (Reuters) - Argentina's 2010/11 soy output is estimated at 49.5 million tonnes, below other estimates for the season as concern grows over the La Nina weather anomaly, the Rosario grains exchange said on Thursday.
Argentina is the No. 3 global exporter of soybeans and the top supplier of soymeal and soyoil. The exchange said a record 18.7 million hectares will be dedicated to the crop, inching up from the 2009/10 season.

Paraguay soy farmers look to new lands, technology
ASUNCION, Nov 25 (Reuters) - Paraguay's soy output has almost doubled over the last decade, but farmers say further growth will mean expanding into less fertile lands or unruly northern areas better known for illegal marijuana plantations.
Growers in the poor South American country are looking at expanding the soy-farming frontier and boosting crop technology to meet demand from a nascent soy-crushing industry without reducing exports of uncrushed beans.

China sells 70 pct of 100,000 T rapeseed oil reserves
BEIJING, Nov 26 (Reuters) - The Chinese government sold 70,300 tonnes, or 70 percent of 100,000 tonnes of rapeseed oil reserves offered, at a weekly state auction, according to bidding results posted on a government website.
Beijing restricted bidding of the edible oil to some big companies, which are required to sell the oil to retail markets.

Argentina soy crop seen at 49.5 mln T- Rosario
BUENOS AIRES, Nov 25 (Reuters) - Argentina's 2010/11 soy output is estimated at 49.5 million tonnes, below other estimates for the season as concern grows over the La Nina weather anomaly, the Rosario grains exchange said on Thursday.
Argentina is the No. 3 global exporter of soybeans and the top supplier of soymeal and soyoil. The exchange said a record 18.7 million hectares will be dedicated to the crop, inching up from the 2009/10 season.

Friday, November 26, 2010

Interactive Futures Event @ Ipoh Hotel Syuen Fri 26 Nov 2010 6.30pm.

20101126 1008 Global Economics News.

Japan's core consumer prices fell in October from a year earlier, down for the 20th consecutive month as persistent deflation, a strong yen and slowing global growth threaten the economy's outlook.Although
the pace of deflation narrowed markedly, that was largely due to a cigarette tax hike that took effect in October, doing little to ease concerns about the impact of a yen's rise [JPY=X 83.72 0.12 (+0.14%) ] and a slowing economy on the underlying price trend.

Vietnam: Trade deficit widens, adding Dong pressure
Vietnam’s trade deficit widened in November from October, threatening to put pressure on the country’s currency, which has already been devalued three times in the past year. The shortfall widened 16% to USD1.25bn from a revised USD1.08bn in October, according to preliminary figures released by the General Statistics Office in Hanoi. The trade gap was USD10.66bn in the 11 months through November. (Bloomberg)

Japan: Export growth slows more than forecast
Japan’s export growth slowed more than forecast in October, weakening the boost from trade that has led the nation’s recovery from its deepest postwar recession. Overseas shipments increased 7.8% from a year earlier, the Finance Ministry said. The median estimate of 21 economists surveyed by Bloomberg News was for a 10.7% gain. (Bloomberg)

China: Q3 current account surplus doubles
China's current account surplus more than doubled in the third quarter of 2010 from the same period last year, official data showed, propelled by strong demand for Chinese-made products. The current account surplus -- the broadest measure of trade with the world -- rose 103% to USD102.3bn between July and September, the State Administration for Foreign Exchange said on its website. For the first nine months, the current account surplus expanded by 30% y-o-y to USD204bn, the data showed. (BT)

China: PBOC plans to strengthen liquidity management
The People’s Bank of China said it will strengthen liquidity management and “normalize” monetary conditions, reinforcing forecasts for higher interest rates to combat the highest inflation rate in two years. The nation will use quantitative and price tools to manage liquidity, Hu Xiaolian, a central bank deputy governor, said in a statement on the bank’s website. PBOC adviser Xia Bin said at a conference in Shanghai that both higher rates and bank reserve ratios may be needed to control liquidity. (Bloomberg)

EU: No risk of euro zone breakup in Irish crisis
Senior euro zone officials dismissed any risk of the single currency area breaking up after financial markets, alarmed by Ireland's debt crisis, forced the borrowing costs of Portugal and Spain to record highs. "There is zero danger," Klaus Regling, chief of the euro's financial safety net, European Financial Stability Facility (EFSF), told German daily Bild in an interview when asked if the euro zone could break apart. "It is inconceivable that the euro fails," he said. (BT)

EU: ECB may yet delay exit
The European Central Bank (ECB) may have to delay its exit from emergency measures again as Ireland’s bailout fails to stern the region’s sovereign debt crisis. Investors are dumping Spanish and Portuguese bonds on concern they will have to follow Ireland and Greece in asking for European Union bailouts, making it more difficult for the ECB to proceed with its withdrawal of liquidity support for banks. (Starbiz)

20101126 1007 Malaysia Corporate News.

Carlyle makes spicy RM1.9bn offer for QSR
Washington based private equity firm Carlyle Asia Investments Advisors has made an offer to take QSR Brands private for RM1.9bn, topping an earlier bid by Idaman Saga SB- a company linked to business tycoon Tan Sri Halim Said. According to QSR’s parent company Kulim (M), the fund manager has made a non-binding offer to buy all QSR shares for RM6.70 each, 20% higher than Idaman Saga’s RM5.60 offer. QSR shares are currently traded at RM5.61. Pending a due diligence process by Carlyle, the company said QSR and its subsidiaries will not raise capital or declare dividends. (Malaysian Reserve)

LRT extension jobs to be awarded soon
The government is expected to award the jobs for the long-awaited light rail transit (LRT) extension project soon, and successful bidders have been short listed. According to a source familiar with the matter, parties that had lobbied for the LRT extension jobs for the Ampang and Kelana Jaya lines include UEM Group, IJM Corp, Bina Puri and TRC Synergies. The contracts to be awarded will be the building of LRT stations, laying groundwork and alignment before constructing the railway. The total extension length of the Kelana Jaya line is 17km and for the Ampang line 17.7km. Both extensions will see an additional 13 stations. (Financial Daily)

Petronas to invest in Johor O&G hub
Petronas will play a major role in the development of Johor’s south-east areas of Teluk Ramunia and Pengerang into a new oil and gas (O&G) hub in the region. Prime Minister Datuk Seri Najib Tun Razak said investments in the hub would come from Petronas and its international partners. He said the investments would bring major development into Johor’s south-east areas and could turn Teluk Ramunia and Pengerang into a new Kerteh. Once a sleepy fishing village in Terengganu, Kerteh is now a thriving township due to O&G related activities with Petronas as the main driver in the O&G sector there. “While investments will come from Petronas and its partners, the Government is looking into allocating money for infrastructure development in the areas,” Najib said at the opening of the 140m-euro Asiaflex Products plant in Tanjung Langsat industrial area yesterday. (StarBiz)

Construction work on Penang Sentral to start next month
Construction work on the Penang Sentral Integrated Transport Hub in Butterworth is expected to begin next month, according to developer Malaysian Resources Corp (MRCB). MRCB executive director, Datuk Ahmad Zaki Zahid, said the company has solved all the land issues and the project could proceed as usual. "The first phase of the project is expected to be completed before 2013," he told a media briefing yesterday. The hub, a component project of the Northern Corridor Economic Region, would be undertaken by a joint-venture between MRCB and Pelaburan Hartanah Bumiputra . Ahmad Zaki said the actual cost of the project was expected to increase to RM2.7bn. (Bernama)

Jala: PM to announce new projects next week
Prime Minister Datuk Seri Najib Tun Razak is expected to announce on Tuesday new development projects as well as several entry point projects that will boost the oil, gas and energy sector. The PM will announce some of the confirmed projects and provide updates on previous projects announced, Minister in the Prime Minister's Department, Senator Datuk Seri Idris Jala, said at the 29th Majeca-Jameca joint conference yesterday. Jala, who had presented a paper on the Economic Transformation Programme (ETP) earlier, was speaking to reporters on its updates and 2011 focus. (StarBiz)

Study on bullet train ready by mid-2011
Malaysia will only approach Singapore on the bullet train project connecting the countries’ capital cities once its feasibility study is completed by mid-2011, Minister in the Prime Minister’s Department Senator Datuk Seri Idris Jala said. The study is due to start in January and the results will be discussed in the Cabinet. Idris said the project’s planning follows the timeline of the Economic Transformation Programme (ETP) announced by the government last month. “Nothing has been confirmed yet … we need to take a hard look at the network and speed (aspects) and review the proposals (by companies),” he said on the sidelines of the joint conference of the Malaysian and Japanese economic associations in Kuala Lumpur yesterday. (BT) 

20101126 0900 Global Market News.

OIL: Crude near $84, post-Thanksgiving trade thin
TOKYO, Nov 26 (Reuters) - U.S. crude futures hovered near $84 a barrel in Asia on Friday, holding recent gains on a retreat in the dollar, but trade was slow after the Thanksgiving Day holiday the previous day.
Due to the Thanksgiving holiday, all New York Mercantile Exchange crude trade on Thursday is combined into Friday's official session.

COMMODITY MARKETS: Short-covering lifts markets ahead of holiday
NEW YORK, Nov 24 (Reuters) - Oil rose 3 percent and metals and crops were mostly up on Wednesday as positive U.S. economic data comforted investors and diverted attention from the euro zone debt crisis that had hammered prices earlier in the week.
"I think it's going to give cotton a good bullish underpinning," Sterling Smith, an analyst at Country Hedging Inc in St. Paul, Minnesota, said as better investor sentiment and prospects of Chinese demand helped cotton prices close up nearly 5 percent at around $1.16 per lb.

GLOBAL MARKETS: Stocks inch up as U.S. holiday thins trade
LONDON, Nov 25 (Reuters) - Financial markets regained some composure on Thursday after roller-coaster sessions prompted by the euro zone's debt problems as recent upbeat economic data encouraged investors to put on some risk.
"The most important thing for the equity market is the ability to believe that the economic cycle is staying intact," Philip Isherwood, European equities strategist at Evolution Securities, said. "That means not just U.S. data reassuring, but also European."

Indonesia struggles to hold down oil imports
SINGAPORE, Nov 25 (Reuters) - Indonesia's crude imports will keep rising over the next few years as its economy rebounds and a delay in getting peak output from the giant Cepu field defeats efforts to cut dependence on overseas crude.
Indonesia's need for crude imports for its simple refineries will feed competition among top Asian buyers such as China and India for sweet grades as regional supplies from matured fields dwindle while strong dated Brent prices may curb arbitrage flows from the Atlantic Basin.

Shanghai Futures to raise trading margins, limits
SHANGHAI, Nov 25 (Reuters) - The Shanghai Futures Exchange will raise trading margins and limits for all contracts from Nov. 30 in a bid to curb speculative trading, it said on Thursday.
The move follows similar measures by China's other two big commodity exchanges, in Zhengzhou and Dalian.

China says its commodity price crackdown worked
BEIJING, Nov 25 (Reuters) - China's crackdown on commodity prices has contributed to a widespread fall in futures in the last two weeks, the country's top economic planning body, the National Development and Reform Commission (NDRC), said on Thursday.
The NDRC listed 13 commodities in a statement on its website and compared prices on November 10-11 with prices on November 24, with declines ranging from 5.75 percent for rice to 18.35 percent for zinc.

Data hints US recovery is becoming self-sustaining
WASHINGTON, Nov 24 (Reuters) - New U.S. claims for jobless benefits hit their lowest level in more than two years last week while consumer spending rose for a fourth straight month in October, suggesting the economy is nearing a self-sustaining recovery.
The picture was further brightened by another report on Wednesday that showed consumer sentiment in November reached its highest level since June, likely reflecting the surge in stock prices in the wake of a Federal Reserve decision to again loosen monetary policy.

Commodity index net length rises to post-2008 high
NEW YORK, Nov. 24 (Reuters) - Net long index investment into commodity markets expanded by $5.7 billion to $187.4 billion in October, the highest since many major markets peaked in mid-2008, regulatory data showed on Wednesday.
But the Commodity Futures Trading Commission's monthly report on index positions also showed short index holdings alone rose by a sizable $7.5 billion to $67.3 billion, the highest since the agency began collecting data nearly three years ago, as many investors sought more active strategies. 

PRECIOUS-Gold eases; Europe debt worries, Koreas support
LONDON, Nov 25 (Reuters) - Gold eased for a second day on Thursday, lacking strong impetus due to the U.S. Thanksgiving holiday but backed up by some safe haven buying amid Europe's debt crisis and heightened tensions between the Koreas.
The dollar, which traditionally has an inverse relationship with bullion, strengthened against the euro  on renewed optimism over U.S. growth and persistent fears Ireland's debt crisis might spill over into Spain and Portugal.

FOREX-Euro stays weak near lows as debt crisis festers
LONDON, Nov 25 (Reuters) - The euro struggled near a two-month low on Thursday as the euro zone debt crisis showed little signs of abating and fears of contagion still high after Ireland unveiled an ambitious austerity plan.
Traders said Portugal and increasingly Spain were seen as potentially in need of financial help while Dublin's belt-tightening plan has come under fire for sticking to optimistic growth assumptions, unveiled earlier this month. 

Asia stocks rise on US shopper hopes, dollar up
HONG KONG, Nov 25 (Reuters) - Asian stocks rose from  1-1/2-month lows, with buying focused in the tech  and retail sectors on hopes for a busy U.S. shopping season,  though the falling Australian dollar was an indication of  investors' reduced willingness to take risks.
"Usually, if there is a lot of hot money coming to Hong  Kong, these IPOs should be doing well," said Belle Liang,  research head at Core Pacific-Yamaichi. "IPOs are being  delayed or withdrawn because of lacklustre demand."

20101126 0859 Soy Oil & Palm Oil Related News.

Palm oil up on strong demand, weather concerns
KUALA LUMPUR, Nov 25 (Reuters) - Malaysian palm oil futures advanced for a  second day as export data signalled a strong recovery in demand at  a time when heavy rains may curb production.
"Exports were very good although they were just a rebound from last  month's not so great numbers," said a trader with a foreign commodities  brokerage. 

Monsanto boosts investment in Canada canola
WINNIPEG, Manitoba, Nov 24 (Reuters) - Monsanto Co  has raised its spending on canola research and development to between C$20 million and C$30 million ($19.8 million to $29.7 million), roughly the same investment the company puts into wheat, the president of its Canadian operation said.
Acreage and production of canola, Canada's No. 2 crop after spring wheat, have expanded in the past decade amid strong global demand for vegetable oil and big profits for farmers.

Thursday, November 25, 2010

20101125 1821 FCPO EOD Daily Chart Study.

FCPO closed : 3276, changed : +108 points, volume : lower.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : turned upward, seller realise profit and reducing position.
Support : 3270, 3200, 3150, 3100 level.
Resistant : 3300, 3350, 3420 level.
Comment :
FCPO rallied recorded gain with reducing volume changed hand after export data released continue to show demand for crude palm oil still holding strong. Daily chart formed a long lower shadow up doji bar candle resuming the uptrend movement closed above resistant turned support middle Bollinger ban level with the reading suggesting side way range bound upside biased market development.
When to buy : buy at support and weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20101125 1754 FKLI EOD Daily Chart Study.

FKLI closed : 1499.5, changed : +14.5 point,  volume : lower.
Bollinger band reading : correction range bound dowside biased.
MACD Histrogram : turned upward, seller reducing position.
Support : 1485, 1470, 1458 level.
Resistant : 1500, 1530, 1550 level.
Comment :
FKLI rallied traded firmed recorded gained with lower volume transacted as market sentiment turned positive ahead of giant size IPO listing of Petronas Chemicals tomorrow. Daily chart formed a wide range up bar candle having pullback correction take place testing middle Bollinger band resistant level with the reading suggesting a correction range bound downside 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.

20101125 0944 Global Economics News.

China: May raise 2011 inflation target
China is considering raising its inflation target for 2011 even as it is campaigning to reassure people that price pressures will remain in check. A meeting of the country’s top officials next month to plot economic strategy for 2011 might pencil in inflation of 4%, up from a goal of 3% for this year, the China Business News reported. (Financial Daily) China: People’s

Bank of China plans to strengthen liquidity management
China’s central bank said it will strengthen liquidity management and “normalize” monetary conditions after having twice this month ordered banks to hold more in reserves to curb inflation that’s at a two-year high. The nation will use quantitative and price tools to manage liquidity, Hu Xiaolian, a deputy governor of the People’s Bank of China, said. China will also control the pace of bank lending for the remainder of this year as it will be difficult to stay within the government’s RMB 7.5tn (USD 1.13bn) target for new loans in 2010, she said. (Bloomberg)

Korea: Consumer confidence rebounds from 16-month low
South Korean consumer confidence rebounded from a 16-month low on expectations that the sustained economic recovery will boost household income and job prospects. The sentiment index rose to 110 from 108 in October, the Bank of Korea said in an e-mailed statement in Seoul. The poll was conducted before North Korea lobbed shells at a South Korean island on 23 Nov, which sent the won to a two-month low. A number exceeding 100 indicates optimists outnumber pessimists. (Bloomberg)

EU: Europe industrial orders drop the most in two years
European industrial orders slumped the most in almost two years in September, suggesting weaker global growth and a stronger euro are starting to hurt exports. Orders in the 16-nation euro area dropped 3.8% from August, when they rose 5.1%, the European Union’s statistics office in Luxembourg said. That’s the biggest plunge since Dec 2008 and sharper than the 2.5% drop forecast by economists in a Bloomberg News survey. Orders rose 14% from September 2009. (Bloomberg)

EU: ECB may be forced to delay exit again as debt crisis escalates
The European Central Bank may be forced to delay its exit from emergency measures again as the region’s sovereign debt crisis escalates. Investors are dumping Spanish and Portuguese bonds on concern they will have to follow Ireland and Greece in asking for European Union bailouts, making it more difficult for the ECB to proceed with its withdrawal of liquidity support for banks. Some economists now doubt the ECB will be able to signal a move back to limited auctions of three-month loans, which they regard as the next likely step in the bank’s exit, when policy makers meet next week in Frankfurt. (Bloomberg)

UK:Export growth helps economy expand at 0.8% pace
U.K. export growth helped the economy extend its recovery in the third quarter as growth in consumer, government and investment spending slowed by more than half. Gross domestic product rose 0.8% from the previous three months, when it increased 1.2%, the Office for National Statistics said. That matched an initial estimate on 26 Aug and the median forecast of 30 economists in a Bloomberg News survey. Exports rose 2.2% after a 2.3% increase in the previous three months. (Bloomberg)

US: Spending rises, jobless claims decline
Americans increased spending for a fifth month in October and filed the fewest unemployment claims in more than two years last week, pointing to strength in the largest part of the economy as the fourth quarter began. Household purchases advanced 0.4% after a 0.3% gain in September that was larger than previously estimated, the Commerce Department reported. Incomes climbed 0.5%. Jobless claims fell by 34,000 to 407,000 in the week ended 20 Nov, Labor Department figures showed. (Bloomberg)

20101125 0942 Malaysia Corporate News.

Dow up 1.4% to 11,187.28 points
U.S. stocks rallied in thin pre-holiday trade Wednesday, reclaiming ground lost in the previous session after data cast an optimistic light on jobs and consumers as holiday-shopping season begins. Economic reports showed jobless claims last week sliding to 2008 lows and consumer confidence and spending rising. The Dow finished up 150.91 points, or 1.4%, at 11,187.28, with all but three of its 30 components trading higher. The gain more than made up for a 142-point slide in the previous session. (MarketWatch.com)

Taib has polls date inspiration, but stays tight-lipped
Chief Minister Tan Sri Abdul Taib Mahmud has given the clearest hint yet that state elections would be called soon, saying he had an inspiration on the date. He said it was crucial for the state to prepare for the polls but declined to elaborate. (The Star)

Sunway, SunCity in RM4.5bn merger
 Tycoon Tan Sri Jeffrey Cheah plans to merge the construction and property firms he controls, Sunway Holdings and Sunway City (SunCity), in a deal worth RM4.5bn to compete more effectively at home and in the region. The two firms' assets and liabilities will be acquired by a new company, Sunway SB, which will be listed in their place on Bursa Malaysia. The deal, including the listing, is expected to be completed by the middle of next year. (BT)

Pahang-Selangor raw water project on track
Pahang Menteri Besar Datuk Seri Adnan Yaakob said the project to channel raw water from the state to Selangor has been going on smoothly and was expected to be completed in May 2014. He added that until the end of last month, 17% of the project had been carried out. 2 tenders are expected to be awarded by the end of the year. (Financial Daily)

Petra Perdana RM800m debt facility rating downgraded
Petra Perdana’s RM800m Dual Currency Revolving Facility rated by MARC saw its credit rating downgraded to A- from A+. The downgrade affects RM175m of outstanding secured serial bonds and RM25m of medium-term notes issued under the facility. (Malaysian Reserve)

Bina Puri in RM16m Jalan Pasar office block development
Bina Puri yesterday signed an agreement with the Selangor and Federal Territory Chha Yong Fay Choon Kuan Association to invest in the construction of 2 shop office blocks in Jalan Pasar, Kuala Lumpur. The development of 24 units of 4-storey shop offices and 1 unit of 3-storey office on a 2-acre site would cost RM16m. (Malaysian Reserve) 

20101125 0938 Renewables Energy Related News.

WHITE HOUSE CLEARS EPA RENEWABLE FUELS STANDARD
WASHINGTON, Nov 23 (Reuters) - The White House cleared the way for the Environmental Protection Agency to issue a final rule on how much ethanol and other renewable automobile fuels will be sold next year.
The EPA proposed in July that biofuels fuels would account for 7.95 percent of total gasoline sales next year to meet a congressional mandate that at least 13.95 billion gallons of renewable fuels be produced in 2011.

FIRST SOLAR PLANT OKD BY LA, OVERRIDING NORTHROP
LOS ANGELES, Nov 23 (Reuters) - First Solar Inc  won the green light for a 230-megawatt solar plant slated for California's Antelope Valley after the Los Angeles County Board of Supervisors denied Northrop Grumman Corp's  appeal seeking to block the plant.
The plant, known as AV Solar Ranch One, would be a key part of First Solar's plan to build up its plant development business, which provides a built-in market for the thin-film photovoltaic panels the company manufactures. But aerospace and defense company Northrop Grumman says the plant will get in the way of a sensitive radar-testing facility in nearby Kern County.

BRITISH COLUMBIA'S BIGGEST WIND FARM STARTS UP
VANCOUVER, British Columbia, Nov 23 (Reuters) - The largest wind farm in British Columbia, the 144-megawatt Dokie Project, has started generating electricity, joint owners Plutonic Power Corp  and General Electric  Energy Financial Services said on Tuesday.
Power was being generated from nine of the project's 48 installed turbines, Plutonic, a small independent power producer, said.

GERMANY TO NEED 3,600 KM MORE IN POWER GRID BY 2020
FRANKFURT, Nov 23 (Reuters) - Germany needs to expand its power transmission grid by some 3,600 km in the coming years to be able to transport growing amounts of renewable energy, Dena, an advisory agency for the government, said on Tuesday.
Berlin-based Dena issued a rewrite of a 2005 study into requirements for the 36,000 km (22,369 mile) high-voltage electricity network in the centre of Europe, which has to accommodate increasing contributions from volatile energies such as wind and solar.

CALIFORNIA PUTS TESSERA SOLAR PLANT ON TEMP HOLD
SAN FRANCISCO, Nov 22 (Reuters) - The California Energy Commission has temporarily withdrawn approval of a controversial solar power plant by NTR's  Tessera Solar after opponents protested that the 663.5-megawatt Calico project had been improperly licensed. California aims to get a third of its electricity from renewable energy by 2020 and the $2 billion plant is an important step toward that goal.

CHINA INVESTED $30BLN IN ENERGY CONSERVATION IN LAST 5 YRS-XINHUA
BEIJING, Nov 22 (Reuters) - China invested 200 billion  yuan ($30.12 billion) to boost energy conservation and curb  greenhouse gas emissions in the past five years, the Xinhua  news agency reported on Monday.
He Bingguang -- a senior official of the department of  resource conservation and environmental protection at the  National Development and Reform Commission, the country's  central planning agency -- made the statement to reporters in  Beijing at a clean-technology conference.   

EMERA INVESTS IN C$6.2 BLN NEWFOUNDLAND HYDRO PLAN
OTTAWA, Nov 18 (Reuters) - Energy services company Emera Inc  said on Thursday it will fund nearly C$1.8 billion million ($1.76 billion) in a C$6.2 billion hydroelectric power project planned for the Canadian province of Newfoundland and Labrador.
Under the arrangement, electricity from a power generation site at Muskrat Falls on the Lower Churchill River would be transmitted to Newfoundland, Nova Scotia and New England, Emera said in a statement on its website.

RAINS LIFT BOSNIA HYDRO OUTPUT FAR ABOVE 2010 PLAN
SARAJEVO, Nov 18 (Reuters) - Rainfall in Bosnia has boosted hydro output by 16 percent above the target for 2010, Bosnia's top power utility EPBiH said on Thursday.
The utility, which operates three large hydropower plants on the Neretva river with a combined average annual output of around 1,500 GWh, said the heavy rain would likely mean hydro output finishes the year 30 percent above original 2010 forecasts.

CHINA'S HUANENG GETS NOD FOR DALIAN WIND POWER PLANT
SHANGHAI, Nov 18 (Reuters) - China's largest electricity provider, Huaneng Power International , said on Thursday it had won approval for the first phase of a wind power plant in the north of the country.
The company will invest 495 million yuan ($74.53 million) in the plant, Huaneng said in a statement filed with the Shanghai stock exchange.

20101125 0937 Biofuels Related News.

PETROBRAS TO START BUILDING ETHANOL PIPELINE
SAO PAULO, Nov 22 (Reuters) - Brazilian state-run oil company Petrobras  will kick off Tuesday the building of the first part of a 850-km (528-mile) ethanol pipeline that should help the company meets its ambitious targets with the fuel.
The first part of the pipeline will connect Ribeirao Preto, Brazil's main cane producing area, to Paulinia, an important fuel distribution and refining hub in Brazil.

U.S. CORN ETHANOL "WAS NOT A GOOD POLICY"-GORE
ATHENS, Nov 22 (Reuters) - Former U.S. vice-president Al Gore said support for corn-based ethanol in the United States was "not a good policy", weeks before tax credits are up for renewal.
U.S. blending tax breaks for ethanol make it profitable for refiners to use the fuel even when it is more expensive than gasoline. The credits are up for renewal on Dec. 31.

ITALY M&G TO START UP BIOETHANOL PLANT IN Q1 2012
MILAN, Nov 18 (Reuters) - Italian chemical group Mossi & Ghisolfi (M&G) aims to start up a 40,000-tonne second-generation bioethanol plant in Italy in the first quarter of 2012 and then license its technology in the United States, Brazil and China.
"We are aiming to start works by January 2011 and complete them by the end of 2011 or in early 2012. The plant should be operating by March 2012," M&G Deputy Chairman Guido Ghisolfi told Reuters on the sidelines of a conference.

FRENCH BIODIESEL GROUP SAYS READY FOR CERTIFICATION
PARIS, Nov 17 (Reuters) - French biodiesel makers say time is running short for official approval of a scheme it put forward over the summer to meet new European Union rules on sustainability, if disruption to trade is to be avoided.
The EU's sustainability criteria, due to take effect from Jan. 1, require that biofuels offer at least a 35 percent cut in greenhouse gases compared to fossil fuels and do not use crops grown on recently cleared land.

BREAKINGVIEWS-ETHANOL PUTS REPUBLICAN FISCAL FORTITUDE TO TEST
NEW YORK, Nov 16 (Reuters Breakingviews) - Ethanol will put Republican fiscal fortitude to the test. Bumper U.S. exports of the corn-based fuel raise fresh questions for an industry that boasts of reducing dependence on foreign oil. It's another reason to let the nearly $5 billion annual subsidy die as scheduled at the end of this year.

20101125 0935 Global Market News.

Oil edges lower as European debt concerns linger
SINGAPORE, Nov 25 (Reuters) - Oil edged lower,  after rising more than 3 percent a day earlier on strong U.S.  macro-economic data, as concerns about European debt lingered  across financial markets.
"At moment the tempo is more upbeat than when we started  the week, but nothing has gone away," said Geoff Howie, sales  and markets strategist at MF Global in Singapore. 

Indonesia Oct palm oil exports up 7.4 pct y/y
JAKARTA, Nov 25 (Reuters) - Indonesia's palm oil exports  in October rose 7.4 percent to 1.45 million tonnes from a year  earlier on strong demand from Asia and the United States, the  latest data from the Indonesian Palm Oil Producers Association  showed.
October exports also rose 12.9 percent from 1.284 million tonnes shipped in September, the data showed.

Gold inches down, US data calms economic concerns
SINGAPORE, Nov 25 (Reuters) - Gold edged down in thin  trade after encouraging U.S. jobless claims data  calmed some worries about economic growth, but concerns over  tensions on the Korean peninsula could offer some support.
"I would say sentiment is still bullish. The conflict  between North and South Korea is not going be solved within a  short period of time," said Ronald Leung, director of Lee  Cheong Gold Dealers in Hong Kong.

Asia stocks edge up but remain on shaky ground
HONG KONG, Nov 24 (Reuters) - Asian stocks barely rose, kept on a short leash by profit taking in consumer  shares and investors cutting risk from their portfolios, a  shift that has lifted the U.S. dollar broadly to a two-month  high.
"With growth above potential in many emerging markets,  particularly in Asia, the risk of broad-based inflation is  real and growing," Goldman Sachs analysts said in a note.  

OIL: Crude firms on U.S. econ recovery optimism
TOKYO, Nov 25 (Reuters) - U.S. crude futures firmed on Thursday, extending a rally from the day before on optimism about the U.S. economic recovery, but the Thanksgiving holiday in the United States and concerns over tensions on the Korean peninsula may limit further gains.
Increasing investor risk-aversion had seen oil prices fall about 8 percent since reaching a 2010 high of $88.63 on Nov. 11.

COMMODITY MARKETS: Short-covering lifts markets ahead of holiday
NEW YORK, Nov 24 (Reuters) - Oil rose 3 percent and metals and crops were mostly up on Wednesday as positive U.S. economic data comforted investors and diverted attention from the euro zone debt crisis that had hammered prices earlier in the week.
"I think it's going to give cotton a good bullish underpinning," Sterling Smith, an analyst at Country Hedging Inc in St. Paul, Minnesota, said as better investor sentiment and prospects of Chinese demand helped cotton prices close up nearly 5 percent at around $1.16 per lb.

GLOBAL MARKETS: Stocks rebound on US data; euro falls on Ireland
NEW YORK, Nov 24 (Reuters) - Stocks rebounded on Wednesday on stronger-than-expected U.S. jobs and consumer sentiment data but lingering concerns about the European debt crisis weighed on the euro.
"Now you are getting good economic data, and you have a tug of war going on here between an improving economy and geopolitical events," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.

ANALYSIS-Global oil glut burns off as demand recovers
NEW YORK/SINGAPORE, Nov 24 (Reuters) - An oil glut that has weighed on prices for two years is dissipating, with U.S. stockpiles falling their fastest in over a decade this autumn, crude being whisked ashore from storage at sea, and China running refineries near full bore to replenish diesel supplies.
Oil stocks are still well above levels that preceded a 2008 price surge to $147 a barrel, but a massive oil surplus accrued during the global economic downturn is being burned off.

US growth faster but not enough to dent joblessness
WASHINGTON, Nov 23 (Reuters) - The U.S. economy grew faster than previously estimated in the third quarter, but a slump in sales of previously owned homes in October indicated the recovery remains too anemic to reduce high unemployment.
The Commerce Department on Tuesday revised its estimate of third-quarter growth in gross domestic product to a 2.5 percent annual rate from 2 percent to reflect stronger spending and exports than initially thought.

China may raise 2011 inflation target
SHANGHAI/BEIJING, Nov 24 (Reuters) - China is considering raising its inflation target for 2011 even as it is campaigning to reassure people that price pressures will remain in check.
A meeting of the country's top officials next month to plot economic strategy for 2011 might pencil in inflation of 4 percent, up from a goal of 3 percent for this year, the China Business News reported on Wednesday.

German business morale jumps to record high
BERLIN, Nov 24 (Reuters) - German business sentiment rose in November to its strongest level since 1991, a survey showed on Wednesday, highlighting a rift in the euro zone as the bloc's largest economy leaves smaller states behind.
The Munich-based Ifo think tank said its business climate index, based on a monthly survey of some 7,000 firms, rose to 109.3 from an upwardly revised reading of 107.7 in October, confounding expectations for a slight fall.

The world is not running out of metals-RMG
LONDON, Nov 23 (Reuters) - The theory that the world is running out of some minerals and metals is gaining credence in some political circles, but it is not the case and higher prices will encourage more production, an industry expert said.
Worries about shortages of critical materials like rare earths outside China have lent weight to warnings of looming peaks in output of some metals -- where more is produced than is found through exploration.  

PRECIOUS-Gold steady, but up in euros on Irish debt crisis
LONDON, Nov 24 (Reuters) - Gold steadied on Wednesday as mounting concern about the risk that Ireland's debt crisis could spread to other euro zone economies pushed the euro price of bullion to its highest level since June.
A deadly exchange of military fire between North and South Korea on Tuesday has further unsettled investors, putting Asian stocks under pressure and encouraging a sweep into perceived safe havens such as gold, government bonds and the Swiss franc.

FOREX-Euro extends fall on euro zone contagion fears
LONDON, Nov 24 (Reuters) - The euro fell to a two-month low against the dollar on Wednesday, extending losses on uncertainty over Ireland's plans to tackle its debts and fears the crisis could spread to other peripheral euro zone countries.
Peripheral government bond yield spreads over Germany widened and a North Korean statement in the wake of Tuesday's artillery clash that the South's action was driving the peninsula to the brink of war prompted investors to seek safe-haven currencies.

Shares stabilise after Korea attack; euro off 2-mth low
SINGAPORE, Nov 24 (Reuters) - Shares in Asia and Europe  steadied from a sell-off following North Korea's  deadly shelling of a South Korean island, but tension on the  divided peninsula supported safe-haven assets such as gold and  Japanese government bonds.
"Korea trades at a discount to the region on a valuation  basis ... If you look back at the last five years when we've  had scares they were all seen as buying opportunities," said  Todd Martin, Asia equity strategist with Societe Generale.

20101125 0934 Soy Oil & Palm Oil Related News.

ITS CPO export up 18.9% to 1,318,605 tonnes for the period of 1~25 Nov 2010.
SGS CPO export up 24.9% to 1,363,256 tonnes for the period of 1~25 Nov 2010.  

JAKARTA, Nov 25 (Reuters) - Indonesia's palm oil exports  in October rose 7.4 percent to 1.45 million tonnes from a year  earlier on strong demand from Asia and the United States, the  latest data from the Indonesian Palm Oil Producers Association  showed. October exports also rose 12.9 percent from 1.284 million  tonnes shipped in September, the data showed. India, which celebrated two national festivals in October,  bought 596,586 tonnes of palm oil products that month, said  the association commonly known as Gapki. Indonesia has lifted its export tax for palm oil in  December to 15 percent, up from 10 percent for this month, the  trade ministry said, a move which could dampen exports next  month. Crude palm and other edible oils accounted for about 9.2  percent of Indonesia's total exports in the first nine months  this year, according to the country's statistics bureau.

CBOT soy products were mixed, as soybean oil climbed on strong Chinese demand for soybeans while soymeal stocks slipped slightly. A huge purchase of U.S. soybeans by China, along with worries about the South America crop, pushed soybeans higher. But huge U.S. soybean meal stocks in the monthly Census crush report prevented meal from joining the rally. Dec soyoil ended up 1.02 cents to 50.24 cents a pound, while Dec soymeal closed down $0.50 to $340.20 per short ton. (Source: CME)

China NDRC Blames Speculation, Hoarding For High Food Prices (Source: CME)
Surging agricultural product prices are a direct result of speculators, producers and traders hoarding goods and manipulating prices, China's top economic planner said, as officials become increasingly concerned about inflation pressures. The National Development and Reform Commission's statement was the third in three days about the need to stabilize prices. The statement did not say if the government planed to take immediate steps to prevent hoarding, but underlines rising concerns about the impact of higher prices on the overall economy. Policy makers are worried high food prices will flow through to broader inflation, with the country's consumer price index hitting a 25-month high last month. The index rose 4.4% in October, driven by a 10.1% rise in food prices, which account for one third of the CPI basket. The NDRC's statement has taken a tougher tone than previously, listing many market activities that will be considered illegal.
Beijing is taking more aggressive action to try and manage prices, Xu Wenjie, an agricultural analyst at Zhejiang-based Zheshang Futures Co, said Wednesday. "Government's policies to curb inflation are very tough now," Xu said. "Some are administrative measures instead of market regulation," he added. Agricultural traders and producers who spread fictitious price information, hoard products that are in short supply or manipulate futures markets will be severely punished, the NDRC said in the latest statement on its Web site. "The government will never allow people to make a profit from illegal business operations" the statement said. Soaring labor costs in rural areas are a major reason for the rise in food prices, Tian Zhihong, a professor at the China Agricultural University's College of Economics and Management, said in a recent interview. He said higher disposable incomes and low elasticity of demand for agricultural products have made it easy for speculators to push up food prices.
China's cotton market has witnessed considerable speculation in recent weeks, with some enterprises without cotton purchasing licenses entering the market to buy and hold cotton, the NDRC statement said. The domestic weighted average spot cotton price was CNY27,781/ton Tuesday, according to the China Cotton Index, off a record CNY31,302/ton hit Nov. 11, but still around 50% higher than early-September levels. In July, NDRC imposed a fine of CNY1 million on a Jilin-based corn trader for price manipulation and spreading misleading price information. The tougher official stand suggests the government may move beyond agricultural products and also target other sectors to ensure inflation doesn't get out of control.

U.S. soy,corn futures rise on healthy demand
BEIJING, Nov 24 (Reuters) - U.S. corn and soy futures extended their rise slightly during Asian trading, after strong commercial buying pushed up prices on Tuesday despite a strong dollar.
"China's demand for soy remains robust. South Amercian soy stocks will be under pressure as concerns rise over the lack of rain in Argentina," said Meng Lingyu, an analyst with Dalu Futures.

Palm rebounds on soy complex; data eyed
KUALA LUMPUR, Nov 24 (Reuters) - Malaysian palm oil futures rebounded from three-week lows on the back of a firmer overseas soy complex and expectations of strong overseas demand.
"Malaysian palm oil was mainly affected by overseas soy and soyoil markets. Investors are also expecting higher exports for Nov. 1-25," said a trader with foreign brokerage in Kuala Lumpur, referring to Malaysia palm oil exports data due to release on Thursday.

Argentine rains should let soy sowings resume
BUENOS AIRES, Nov 23  (Reuters) - Rains in Argentina's crop belt in the last few days will let many farmers resume soy sowing, but dryness caused by La Nina will drag on and yields could eventually be hit, weather specialists said on Tuesday.
Lack of rain in Argentina, the third-biggest soybean supplier, has brought 2010/11 soy planting to a virtual standstill in many areas this month, driving U.S. soybean futures higher this week.

Argentina sees record-high 2010/11 soy plantings
BUENOS AIRES, Nov 23 (Reuters) - Argentina's soy area is seen increasing 1.7 percent to a new record this season despite dry weather that has halted plantings in some areas of the world's No. 3 exporter, the government said on Tuesday.
The Agriculture Ministry put its first formal estimate for 2010/11 soy area at 18.65 million hectares (46.08 million acres).

Canada canola crop bigger than thought-group
WINNIPEG, Manitoba, Nov 23 (Reuters) - Canada's canola crop took advantage of warm dry weather in October to grow to between 11.3 million to 11.6 million tonnes, a Canola Council of Canada official said on Tuesday, pegging the crop much larger than the last government estimate.
The industry estimate is as much as 11 percent bigger than Statistics Canada's estimate of 10.4 million tonnes in early October.

Brazil soy growers slow new crop sales - Celeres
SAO PAULO, Nov 23 (Reuters) - Brazilian soybean sales remained unchanged over the past week at 31 percent of the 2010/11 soybean crop that farmers started planting in late September, analysts Celeres said on Tuesday.
As of Nov. 19, sales of the new crop, which is seen at a record 69.1 million tonnes, are ahead of the 19 percent sold this time last year.

20101125 0927 FCPO EOD Daily Chart Study. (24 Nov 2010)

FCPO closed : 3168, changed : +53 points, volume : lower.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : falling lower, seller having small exposure.
Support : 3150, 3100, 3070 level.
Resistant : 3200, 3270, 3300 level.
Comment :
FCPO recovered recorded gain with slower volume traded ahead of ITS and SGS export data release as soy oil futures price rebounding plus Indonesia official announced Dec 2010 palm oil export tax will be increase to 15%. Daily chart formed a doji bar candle recovering upward heading to test middle Bollinger band resistant level with the reading remained side way range bound little upside biased market development testing support and resistant level.
When to buy : buy at support and weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20101125 0915 FKLI EOD Daily Chart Study. (24 Nov 2010)

FKLI closed : 1485, changed : -0.5 point,  volume : higher.
Bollinger band reading : correction range bound dowside biased.
MACD Histrogram : fall lower, seller buidling position.
Support : 1485, 1470, 1458 level.
Resistant : 1500, 1530, 1550 level.
Comment :
Korea tension lead FKLI to opened with panic selling gap down 18 points lower and recovered upward to closed recorded 1 tick lower with increasing volume traded as regional market traded in recovery mode as well. Daily chart formed an up bar candle after opened far away from the lower Bollinger band and pullback as the band width started to expand outward with the reading suggesting a correction range bound downside 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.

Wednesday, November 24, 2010

20101124 1002 Global Economics News.

South Korea: Prepares market-stability measures after shelling
South Korea began a 24-hour market watch as officials prepared measures to address any financial turmoil in the aftermath of what the government said was North Korean shelling of a border island. The Bank of Korea held an unscheduled meeting in Seoul, and deputies from the BOK and government will gather to discuss the market impact and potential countermeasures, the finance ministry said in a statement. Regulators will take preemptive steps if needed, the Financial Services Commission and Financial Supervisory Service said. (Bloomberg)

Ireland: Said to need EUR85bn for rescue
EU officials estimate that a rescue package for Ireland may amount to about EUR85bn (USD114bn), according to two officials familiar with the talks. The European Commission cited the figure as a preliminary estimate on a conference call of euro-region finance ministers on 21 November, said the people, who spoke on condition of anonymity because the talks were private. Of the total, EUR35bn would be earmarked for banks and EUR50bn to help finance the Irish government. (Bloomberg)

EU: Services, manufacturing growth accelerates
Growth in Europe’s services and manufacturing industries unexpectedly accelerated for the first time in four months in November as companies weathered the debt crisis and cooling global growth. A composite index based on a survey of Euro-area purchasing managers in both industries advanced to 55.4 from 53.8 in the previous month, according to an initial estimate. A reading above 50 indicates expansion. (Bloomberg)

US: Third-quarter growth revised up on spending gains
The US economy grew more than previously calculated in the third quarter, led by stronger consumer spending and fueled by labor income gains that may stoke demand into 2011. The revised 2.5% increase in GDP compares with a 2% estimate issued last month and a 1.7% rise in the second quarter, figures from the Commerce Department showed. Consumer purchases rose at the fastest pace since the last three months of 2006. (Bloomberg)

US: Existing home sales decrease more than forecast
Sales of existing homes fell more than forecast in October as foreclosure moratoriums and a lack of credit disrupted the US housing market. Purchases decreased 2.2% to a 4.4m annual rate from 4.5m in September, the National Association of Realtors said. Economists projected sales would decline to a 4.5m pace, according to the median forecast. The median price fell 0.9% from a year earlier. (Bloomberg)

20101124 1001 Malaysia Corporate News.

Korean artillery exchange sinks Asian, Euro markets
Key Asian and European markets tanked yesterday after the long-simmering Korean Peninsula tensions escalated as South Korea returned fire on North Korea after the latter launched artillery shells on to one of the South’s border islands. Asian markets, already grappling with worries over the contagion effects of the eurozone debt crisis, as well as measures taken to cool the property market in Hong Kong and China’s move to raise banks’ reserve ratios to curb inflationary pressures, tumbled further on news of the Korean conflict. The attack, the biggest by the North in years, sent investors fleeing to the safety of the USD, further weighing on commodity prices and shares of resource companies. Meanwhile, European markets opened sharply lower as news of the artillery exchange started filtering out. With the exception of the Japan’s stock exchange which was closed for a national holiday, the rest of the key Asian and European stock markets were mired in red. (FinancialDaily) The MSCI gauge of stocks in developing nations lost 2.6% and the Standard & Poor’s 500 Index slid 1.4% at 4 p.m. in New York. (Bloomberg)

IJM Land-MRCB deal to create RM7bn merger
IJM Land and Malaysian Resources Corp (MRCB) will merge to create a RM7bn property company that will be the country's second largest after the recently-proposed UEM Land -Sunrise union. IJM Land and MRCB sealed an initial deal on the proposed merger yesterday. It is still unclear who will take the lead in the merger. IJM Land shareholders' funds stood at RM1.65bn as at 31 March 2010, while MRCB's was about RM697.1m as at 31 Dec 2009. According to latest filings on Bursa Malaysia, the Employees Provident Fund (EPF) owns an indirect stake of 62.47% in IJM Land and about 42% in MRCB. (BT)

Sunway and SunCity shares suspended on merger talks
Shares of Sunway Holdings and Sunway City (SunCity) have been suspended from trading amid speculation that they may be merged. The construction and property firms, controlled by Tan Sri Jeffrey Cheah, asked for their shares to be suspended from yesterday until 5pm today, pending a material announcement. They will be merged into a new company via an exchange of shares and cash, Dow Jones newswires reported yesterday, citing an unnamed source. The new company will continue to be controlled by Cheah, it added. If a merger were to happen, it would be the third property merger to be announced this month. (BT)

YTL Corp to rationalize property assets
YTL Corp has proposed a rationalization that involves the sales of a few companies to its suit YTL Land & Development for a total of RM476m. Under the proposal, YTL Land would settle the purchase through the issue of RM253.03m of 10-year 3% stepping up to 6% irredeemable convertible unsecured loan stock (ICULS) at 100% of nominal value of 50 sen per ICULS and the remaining RM223.02m in cash. The rationalization is expected to result in a net gain of RM51.96m, or 2.9 sen per share in YTL Corp. (FinancialDaily)

Mah Sing acquires Penang land for RM80m
Mah Sing Group continues its shopping spree for land. The property developer yesterday announced it had acquired 61.03 acres of freehold land in Batu Ferringhi Penang for RM157.3m cash at RM59.17 per square foot (psf). The land was for a resort-style development (GDV) of RM800m. The development would be named Ferringhi Residence@Penang and would comprise semi-detached homes with built-up of about 3,000sf indicatively priced from Rm1.4m and bungalows with built-up of about 4,200 sq ft indicatively priced from RM2.2m. (FinancialDaily)