Thursday, January 7, 2010

20100107 1838 FCPO EOD Daily Chart Study.

FCPO closed : 2630, changed : -72 points, volume : higher.
Bollinger band reading : bullish but only chart wise.
MACD Histrogram : turned lower, seller is back in big scale.
Support : 2620, middle Bollinger band level.
Resistant : 2680, 2700 level.
Comment :
FCPO traded negatively today falling from 7 months high due China government monetary move lead to profit taking in world commodities market including Dalian palm oil and ZL soy oil futures price that dropped heavily. Bollinger band reading still biased to a positive outlook but MACD reading could have a cross down anytime that could possibly forming a negative divergence. With the world largest palm oil importer tighten up its monetary policy as a catalyst that could spread further negative impact to the world commodities, market could trade side way range bound downside biased in the near terms waiting for more fresh leads. Tougher days ahead.
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.

20100107 1728 FKLI EOD Daily Chart Study.

FKLI closed : 1293, changed : -3.5 points, volume : Lower.
Bollinger band reading : bullish with correction taking place.
MACD Histrogram : almost unchange, buyer off loading partially.
Support : 1290, 1286, 1280 level.
Resistant : 1300, 1309 level.
Comment :
A doji follow by a black candle bar, looks like market correction will still take place tomorrow. Expecting a side way range bound with downside biased correction market.
When to buy : buy at support or weakness with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

Sorry! This Is Not Related But I Can't Help It. Google Phone Nexus One. Too Cool!

Although it is not related to futures but I can't help it to place it here. It just too cool man. Google Phone Nexus One. I wonder will there come out with others models of Google phone.

20100107 1318 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1296, changed : - 0.5 point, volume : Low.
Bollinger band reading : bullish to neutral.
MACD Histrogram : getting lower, profit taking.
Support : middle Bollinger band, 1290 level.
Resistant : 1300, 1309 level.
Comment :
Seems like the pullback effect taking place now on FKLI together with a weaker palm oil futures price that could lead to negative impact on major plantation counters prices thus not good for FBM KLCI index. Looking at the chart, the last hourly chart candle bounce up from the supporting middle Bollinger band telling us that market sentiment has yet to change negative. Patience game ahead.

20100107 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2660, changed : - 42 points, volume : Low.
Bollinger band reading : bearish.
MACD Histrogram : getting lower, seller took charge.
Support : 2640,  2620.
Resistant : 2680, 2700 level.
Comment :
Big drop on Dalian palm oil futures and soy oil futures prices spillover to Bursa Malaysia FCPO that opened gap down lower by 60 points before price stabilised and recovered slightly to closed at 2660. Hourly chart turned bearish with further downside potential but should market successfully test and stay above the 2700 level, market could resume it's uptrend movement. This could be a "wash" like what happen to Crude Oil futures last night if you look at the intraday chart.

20100107 1013 Alert FCPO Long Position Trader !

Alert !!!!

At last looked, Dalian Palm Oil Futures Dropped more than 200 points. Soy Oil Futures Dropped by more than 0.50.

20100107 1009 Malaysia Corporate News.

Mudajaya announced a private placement exercise involving the issuance of up to 37.2m new shares representing 10% of its paid up share capital. Based on an illustrative price of RM4.49 (10% discount to 5-day VWAMP of RM4.99) this exercise would raise RM167.2m which would primarily be utilised for investments, capex and working capital. The placement would be undertaken via book-building and is expected to be completed within one month. (BMSB) This announcement is not a surprise as management had earlier indicated their intention to do so. This exercise would more than double the group’s cash to as much as RM317m (net cash/share 77 sen) and increase NTA/share by 52% from RM0.73 to RM1.11. FY10-11 EPS would be diluted by 5-6% and dent RNAV/share by 5% from RM9.85 to RM9.37 due to the enlarged share base.

CIMB Thai Bank said it has no plans at this stage to delist if parent, CIMB Group, went ahead with a plan to list in Bangkok itself, president Subhak Siwaraksa said.
  • Meanwhile, Subhak said CIMB Thai hoped its loan book would grow 12% this year thanks to an improvement in the economy, but 2009 lending probably shrank slightly, missing its 1% growth target. (Reuters, Financial Daily)
Hong Leong Bank has obtained Bank Negara Malaysia's approval to start takeover talks with smaller rival EON Capital. In an announcement to Bursa Malaysia yesterday, Hong Leong said Bank Negara had no objection for it to start negotiations with the board of EON Capital and EON Bank. Hong Leong had earlier obtained the approval to talk to some EON Capital’s shareholders.
  • Sources said EONCap had appointed Goldman Sachs as its adviser for the deal, while Hong Leong is advised by CIMB Investment Bank. Kenanga Investment Bank is said to be advising several EONCap shareholders. (BT, BMSB)
Bank Islam Malaysia will, in this month or the next, submit for regulatory approval the initial public offerings (IPOs) of two local companies, an official said. The bank has been mandated to do two mid-sized IPOs and each will likely have a market capitalisation of between RM100m and RM200m, said Mashitah Osman, its head of corporate investment banking.
  • One of the companies is in the manufacturing industry, while the other is in services, she said. These will be the first IPOs that the bank will handle since becoming the first and only Islamic commercial bank to have obtained the Securities Commission's approval last Aug to carry out specific corporate proposals. (BT)
AirAsia and Australia's Jetstar Airways have formed a cost-savings-driven alliance that could well change the region's low-cost carrier (LCC) landscape. The alliance will involve both airlines buying planes and parts together and offering joint ground-handling services, a strategy that could result in annual cost-savings of some A$200m-A$300m (RM620m- RM930m) for both airlines. The partnership could even lead to a code-share agreement in the future, AirAsia group CEO Datuk Seri Tony Fernandes said. (BT)

AirAsia X expects to ply the controversial Kuala Lumpur-Sydney route in June or July even though it has yet to receive the nod from the authorities to do so. "AirAsia X is going through exactly what AirAsia went through with the incumbent airline and unfortunately, the incumbent has a huge say on where and how we fly.
  • But let's not forget that wherever we go, we grow the market significantly," AirAsia group CEO Datuk Seri Tony Fernandes said. Even Jetstar is keen to reinstate its flights from Sydney to Kuala Lumpur which it pulled back over a year ago. Jetstar CEO Bruce Buchanan does not discount route-sharing with AirAsia. (Starbiz)
Southeast Asian billet export prices have remained unchanged since December despite a slight improvement in demand, market participants said. The latest offers quoted by Malaysian mills and traders were at US$465-470 per tonne fob, the same level as offers quoted in December. • “There was not much activity during the Christmas and new year period, and prices have been maintained at the same level,” an official at a Malaysian billet producer said. This is despite the higher scrap costs into Malaysia, which now range from US$350-370 cfr per tonne, compared with US$300 cfr per tonne previously. • But the outlook for billet in the next month has improved, with the market increasingly optimistic, traders said. “We can see a slight recovery in the market. For example, Vietnam has started buying after the quiet spell in December,” one told MB. “Other markets in the Southeast Asian region, as well as Middle East, have continued buying for their production this year,” the Malaysian mill official said. (Metal Bulletin)

The government is reviewing the cooking oil subsidy, which costs the government about RM1bn annually. "Our ministry started discussions with the Ministry of Plantation Industries and Commodities late last year to study the future of subsidy for cooking oil," the secretarygeneral of the MInistry of Domestic Trade, Cooperatives and consumerism, Datuk Mohd Zain Mohd Dom said. However, Zain did not say if this meant it would altogether remove the subsidy for cooking oil or reduce the quantum of subsidy. (BT)

Felda is still evaluating the tender for the construction of a biomass plant at Jengka 9 in Pahang, said Felda Plantations Sdn Bhd director Mahbob Abdullah. The proposed plant is a JV between Felda Palm Industries (FPI), which will hold a 51% stake, and Tenaga and J Power of Japan (both holding 24.5% collectively). Construction is to be completed by end- 11. (Bernama)

RAM Rating Services has assigned long-and short-term corporate credit ratings of AA2 and P1 respectively to Tan Chong Motor. The long-term rating for Tan Chong has a stable outlook. RAM Ratings head of consumer and industrial ratings Kevin Lim said the ratings were supported by the Nissan brand's improving share of the Malaysian automotive market, besides Tan Chong's solid balance sheet, robust liquidity profile and strong debtservicing ability despite operating within a cyclical industry. However, credit ratings for Tan Chong are moderated by the cyclical nature of the automotive sector and changes in lawmakers' policies. (Financial Daily)

The Naza Group expects to finalise the deal with General Motors (GM), particularly for the distribution of Chevrolet cars within this year, said joint group executive chairman SM Faisal SM Nasimuddin. He said the collaboration between Naza and GM, would include the distribution of completely knocked down (CKD) and completely built up (CBU) units. (BT)

MAA Holdings has received the green-light from Bank Negara on its proposal to sell its general insurance business to AMMB Holdings’ AmG Insurance Bhd. AMMB in a separate note said the acquisition price could come up to RM180m. (Bernama)

PPB Group's interest in Tradewinds has fallen below 5% of the latter's issued and paidup capital with effect from yesterday. (Bernama)

Jobstreet will be looking to increase its workforce in operating countries such as Malaysia, Singapore, Indonesia and the Philippines. “We want to see how the economy is going to perform this year. We are still in the wait and see position as it is too early to say anything now,” CEO Mark Chang said. For this year, Chang said that Jobstreet is cautiously optimistic on its business outlook. (Malaysian Reserve)

Shareholders of Jobstreet have approved the firm's plan to double its stake in Taiwanese rival 104 Corp to 32% in two years. It now holds 16.65% of 104 Corp and it plans to raise its stake through open market purchases. "The acquisitions were carried out with the intention of deriving dividend income and for potential capital gains," Jobstreet said in a circular to shareholders. (BT)

Penang Heritage Hotel (PHH) will embark on a RM100m GDV project on a 3.47 acre Penang state-owned land in Farquhar Street, once land conversion is completed. PHH is a JV company between Penang Development Co and YTL Land and Development. PHH is proposing to develop three blocks of six-storey condos with 76 units. (Financial Daily)

The board of directors of Ho Hup Construction will fix a meeting to discuss the intention of major shareholders, Low Chee & Sons Sdn Bhd and Choo Soo Har, to call a special meeting for the removal of the current board and appointment of a new one. This adds another twist to the ongoing tussle at Ho Hup, where Datuk Low Tuck Choy, one of three owners of Low Chee & Sons, had opposed the sale of two parcels of land held by Ho Hup. (Starbiz)

KPJ Healthcare plans to acquire a 51% stake in SMC Healthcare S/B from Sabah Medical Centre S/B (SMC) for RM51m. The group said the acquisition will not only enable it to expand its network of hospitals to locations where private healthcare were in demand, but also widen its customer base. Acquisition will be funded via internal funds. (BT)

Tanjung Offshore has won long-term deals worth RM150m to supply Anchor Handling Tug and Supply (AHTS) vessels to Petronas Carigali.The three to six-year contracts will start in Mar. Tanjung’s unit, Tanjung Kapal Services S/B has taken delivery of three new AHTS units that will be used for the Petronas contracts. (BT)

Sumatec Resources has entered into heads of agreements with Hoe Leong Corp Ltd and Grand Columbia Holdings Sdn Bhd to dispose of its entire stake in its shipping related subsidiaries for RM105m. The disposal was part of its effort to rationalise and streamline its business. (BT)

Notion Vtec has fixed the issue price for its 13.84m placement shares at RM2.44 each. (Financial Daily)

Hock Lok Siew Corp is claiming to have no records of a corporate guarantee allegedly provided to Maybank, which is suing the company for failure to repay RM31.2m with interest. (Financial Daily)