Wednesday, January 13, 2010

20100113 1841 FCPO EOD Daily Chart Study.

FCPO closed : 2510, changed : -46 points, volume : higher.
Bollinger band reading : bearish.
MACD Histrogram : dive lower, seller in charge.
Support : 2480, 2450 level.
Resistant : 2500, 2521, 2550 level.
Comment : What a wild swing, exciting and wash day ! Totally tricky and totally professional ! FCPO traded negatively through out the day and tested the 2480 support level which is also the lower Bollinger band and bounce back to closed off the low. Daily chart wise, today long leg doji bar candle suggest that the correction might have overdone and market may rebound upward from this level. Funny but I still have today's mid day study MACD Histrogram positive divergence appearing in my mind. Lets see what happen tomorrow. Ha ha =) .
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.

20100113 1723 FKLI EOD Daily Chart Study.

FKLI closed : 1291.5, changed : -1.5 point, volume : higher.
Bollinger band reading : bullish with side way ranging.
MACD Histrogram : getting lower, buyer offloading.
Support : 1290, 1286 level.
Resistant : 1300, 1309 level.
Comment : Well well well, Seems like the 1290 level still supported well for FKLI as buyer are not ready to pack and leave the market despite the present of seller and major Asia markets closed the day negatively. Daily chart wise still suggesting an uptrend downward correction market developing with market could still trade side way range bound(1290 ~ 1300) downside biased in the near term.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100113 1606 FCPO Traded In 5 Points Range For 1 Hour !

At now, FCPO still trading within a 5 points range since opened at 3pm until now ! Can you smell something is cooking by Mr. Market ?

20100113 1544 Alert !!! Nymex Crude Oil Dropping Fast !

Alert !!! Nymex Crude Oil Dropping Fast !!! Last Looked 79.64.

20100113 1314 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1291.5, changed : -1.5 point, volume : high.
Bollinger band reading : bearish.
MACD Histrogram : edge up slightly, buyer refused to leave.
Support : 1290, 1286 level.
Resistant : 1300, 1309 level.
Comment : FKLI continue to trade side way range bound between the support and resistant line waiting for a break out. With today's high traded lower than yesterday, seems like buyer are reluctant to buy at higher price and with that, FKLI could possibly break and stay below the crucial 1290 support level.

20100113 1301 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2516, changed : -40 points, volume : moderate.
Bollinger band reading : bearish.
MACD Histrogram : up slightly, seller took partial profit.
Support : 2500, 2480, 2450 level.
Resistant : 2550, middle Bollinger band level.
Comment :
FCPO opened gap down followed with some panic selling pushed price to touched the 2500 support level before seller decided to lock in partial profit lifted price up slightly. Chart wise show some mixture signal with Bollinger band suggested a possible further downside market but MACD Histrogram seems edge up slowly. Another thing to take notice will be the possible positive divergence between price and the MACD Histrogram that could suggest that the market may have a pullback effect should MACD Histrogram continue to edge up higher. Just my funny feeling and wild guess. Not suggesting to go long, just that short trader may need to caution on this but nevertheless, hourly chart do look bearish with further downside potential.

20100113 1015 Malaysia Corporate News.

The board of Alliance Bank yesterday pleaded 'legal and regulatory' constraints to explain its reticence over an on-going internal probe amid the absence of two of its top officials. Speaking to a packed press conference, chairman Thomas Lee told reporters that the bank had sought legal advice and had been counselled, in the absence of the probe's conclusions, against 'impairing any reputation' and 'avoiding the display of any bias or prejudice'.
  • Since the new year, Alliance Financial Group, which owns Malaysia's smallest bank, has been beset by rumours about the fate of Bridget Lai, the bank's chief executive, and Shim Kon Teck, the COO amid an internal probe of the bank on corporate governance matters. Both have been on leave since 15 Dec. 
  • Pressed by reporters, Mr Lee said that the issue began in Oct 09 after a routine due diligence exercise uncovered some matters in the bank's property division. That led to the probe.
  • Pressed on what exactly were those matters, Mr Lee replied that they had to do with certain 'historical' property renovation contracts. He also said that Ms Lai's leave of absence had been 'mutually' agreed.
  • Mr Lee stressed that the matters being investigated did not involve the bank's core business or client transactions. He also said that it did not involve its balance sheet, its profitability and that it would not require any provisioning.
  • More to the point, the chairman said that the matters were 'operational ones of a historical nature' that would not lead to any police or Malaysian Anti-Corruption Commission investigation.
  • Asked about analyst reports fretting that bank lending might slow in the absence of Ms Lai, a senior bank official said that the current loan growth rate of 7 per cent would be maintained.
  • Mr Lee said that on Monday, Ms Lai had been sent several questions to assist the probe and that his legal department was working on other questions to ask Mr Shim. He did not say how long the probe would take but conceded that the group would only worry if the episode dragged on for longer than three months. (BT)
The above is broadly in line with our expectations and the information given in the analyst briefing last Friday. However, there is new information in the news article, as the chairman stated that the probe is related to ‘historical’ property renovation contracts. Our negative stance on the group remains as we see adverse indirect impact from the probe on the group’s reputation. Furthermore, there could be changes in management depending on the outcome of the investigation.

Datuk Bridget Lai, who is currently on extended leave as the bank’s board carries out an internal probe, says her immediate priority is to defend her reputation. Lai, in a meeting with selected media, stressed that she was still the Alliance Bank’s CEO. But asked if she would continue as CEO once the probe was over, she said it was difficult to answer as her first instinct now was to defend herself amid damaging rumours in the market.
  • Lai confirmed that she had a letter from the board on Monday and that the questions were related to branch renovations. "I've no problems answering all of them. I wish it had come earlier. I could have replied them even when I was in the office," she remarked.
  • Still, she said that to answer the questions, she would need access to some files in the office. "I asked for some files. I don't think it's going to be an issue to get them," she said, adding that how fast she responded to the questions depended on how fast she got access to the files.
  • Both Lai and the bank's board stressed that the probe would not affect the bank's operations or profit.
  • She said there was an investigation of the property and service department and that she believed there might have been some "process gaps". 
  • Rumours about branch renovation contracts being given to her husband or relatives were "ridiculous", she said. Lai said she was not worried about the probe. "I'm not worried. If I'm not guilty, why would I be worried? I'm just upset."
  • Lai said she had received offers in the region for CEO and higher-up positions. "Job offers come often. I may not necessarily take it." (BT)
The Securities Commission (SC) has granted a stockbroking licence to US banking giant Citigroup Inc, making it the seventh foreign company to be given the licence in Malaysia. The regulator said Citi was expected to play an important role in increasing the flow of funds from the Middle East as it has a strong presence in the Gulf. (BT)

Global palm oil prices are likely to remain high in coming months despite recent weakness, Hamburg-based oilseeds analysts Oil World forecast. "Palm oil prices will indeed be supported in the next four to six months, considering that soya oil supplies are still tight in South America, sun oil supplies are becoming increasingly scarce and the production prospects for palm oil are at least uncertain," it said. Unusually large palm tree replantings in Malaysia will reduce the area of mature productive trees while the El Nino weather pattern could damage Asian palm production, it said. Global soya oil supplies are still tight following poor South American soybean crops in early 2009 while a large rise in sunflower oil crushings following a poor crop is likely to cut stocks. Malaysian crude palm oil futures have dropped after hitting a seven-month high on January 5, dragged down by bigger-than-expected stock levels in December, weaker exports in the first 10 days of January and fears of reduced China buying. But the long-term outlook was still for firm palm prices and this was increasingly being realised, it said. (Reuters)

IOI Corp said its joint venture with Pelita Holdings to develop some 7,000ha in Sibu, Sarawak, into oil palm estates has been terminated by mutual agreement. Upon termination, the group will dispose of its stake of one ordinary share of RM1.00 in IOI Pelita Kanowit to Pelita Holdings for RM1. (BT)

Six more new projects planned under the East Coast Economic Region will be implemented in Terengganu this year. These would include a tourism programme, cluster projects involving the production of goat and goat meat, the development of the Heavy Industries Park involving a duty-free zone in Kemaman port and the Agropolitan Besut- Setiu project. (Bernama)

Top Glove is looking to buy up neighbouring rivals while building up new factories in Malaysia. "We are still talking to a few parties in Thailand, Indonesia and here in Malaysia," its chairman Tan Sri Lim Wee Chai said. "With more than RM220m cash in hand, we would like to expand by acquiring a company or factory. We hope to see one of the deals come through this year,” he added. Lim said the group is also allocating RM80m to add on new lines to produce 7bn more pieces of gloves, bringing its total capacity to 38.5bn pieces when the new factories are completed by Feb-2011. (BT)

MMC Corp’s Port of Tanjung Pelepas (PTP) reported container throughput of 6m TEUs in 2009, 7.5% higher yoy. This growth was achieved against a backdrop of shipping lines and ports facing double-digit drops in volume due to the global economic downturn. (Bernama)

Gadang beat seven companies, including WCT and Sunway Holdings, for a RM291m job to build a runway and taxiways for the RM2bn new LCCT in Sepang. The contract includes site preparation, earthworks and main drainage for the 4km Runway 3. Works would start next month and completion is slated for Dec. This is the second contract awarded by Malaysia Airports Holdings under the RM2bn project. A third contract to build the main terminal building is in the tender stage. (BT)

UMW Toyota Motor expects to achieve 15-16% of the automotive total industry volume this year, driven by new car launches and its network expansion programme. Its president Kuah Kock Heng said that this year's total industry volume is expected to be about 540,000 units. On Lexus, Kuah said the company expects to sell more than 400 units this year after having sold 300 units last year. (Bernama)

MARC has affirmed its ratings on Puncak Niaga’s RM1.02bn billion Bai Bithaman Ajil Islamic Debt Securities (BaIDS) at AAID. It has also affirmed its rating on the RM546.8m Junior Notes A (A Notes) and RM435m Nominal Value Redeemable Unsecured Bonds (RUB) at A+ respectively. The affirmed ratings reflect low demand risk for bulk water, solid historical debt service coverages and adequate water supply, moderated by dependence on long term offtake from single offtaker, Syabas. (Bernama)

KESM Industries, a semiconductor testing services provider, hopes to double contribution from its outfit in Tianjin, China, to 10% in three years. The group has seen signs of recovery in the last three months, its executive chairman and CEO Sam Lim said. "This is in line with the economic recovery. After the downturn, it would take time for capacity to fill up, but as long as there is improvement, it is good news," he added. Lim said the Tianjin outfit is a stepping stone for the group's further growth in China. (BT)

Lion Diversified Holdings has disposed of its entire 24.9% stake in Polaris Metals NL to Mineral Resources Ltd (MRL) for A$5.03m (RM15.09m). Proceeds from the disposal will be used to repay bank borrowings, working capital requirements and capex. (BT)

Widetech’s proposed agreement with Savan Vegas Hotel and Casino Co Ltd to jointly operate a gaming club in the Riveria Hotel in Laos has lapsed. However, it may in the future resume discussions with SV to continue with the intended collaboration. (Financial Daily)