Wednesday, January 20, 2010

20100120 1829 FCPO EOD Daily Chart Study.

FCPO closed : 2444, changed : -46 points, volume : higher.
Bollinger band reading : bearish.
MACD Histrogram : lower, seller in charge.
Support : 2440, 2400, 2370 level.
Resistant : 2470, 2521, middle Bollinger band level.
Comment :
FCPO continue to trade weaker in the 2nd half session with heavier volume ended the day near the low. Despite positive export data released in the afternoon by SGS, the stronger US Dollar contributed to the fall of all commodities prices seems to have a deeper impact to the crude palm oil player. Technically, the daily chart does look biased to a further downside market as all indicators on the chart agreed to each other views 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/strength/break down with quick cut loss and profit target.

20100120 1738 FKLI EOD Daily Chart Study.

FKLI closed : 1303, changed : +2.5 points, volume : higher.
Bollinger band reading : bullish side way likely.
MACD Histrogram : lower slightly, buyer off loading.
Support : 1300, 1295, 1290 level.
Resistant : 1309, upper Bollinger band level.
Comment :
Beside tested a new high at 1307 today, FKLI and the cash market seems immune from the negative development in major Asia market. This give me an impression that there is no foreign fund participated in our market. Overall it is just another normal day with side way ranging market and expecting market to trade the same way 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.

20100120 1300 FKLI Mid Day Daily Chart Study.

FKLI closed : 1304.5, changed : +4 points, volume : high.
Bollinger band reading : bullish biased.
MACD Histrogram : improve but getting weak.
Support : , middle Bollinger band, 1300, 1295 level.
Resistant : upper Bollinger band, 1309 level.
Comment :
Traded higher through out the first session, FKLI tested another high level at 1307 this morning but couldn't get higher and retraced to the low at 1302.5 before recover slightly. A mildly bullish outlook with potential upside suggested on the FKLI hourly chart with price ended still above middle Bollinger band and MACD Histrogram staying in the positive zone. But on the other hand major Asia market traded in negative tone for the morning session today except FBM KLCI and Australia Market.

20100120 1243 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2463, changed : -27 points, volume : lower.
Bollinger band reading : bearish.
MACD Histrogram : getting lower, seller market.
Support : , 2440, 2400 level.
Resistant : 2470, middle Bollinger band, 2500 level.
Comment :
Weaker soy oil and crude oil futures price leads FCPO to opened lower and traded side way 17 points range bound despite improved export data released this morning. Hourly chart wise looks bearish with possible further downside but trader may have to wait for market reaction when the release of export data by another cargo surveyor SGS at the afternoon session today.

20100120 1034 The Interest Rate Factor.

Seems like interest rate will be the major news and catalyst for the current market direction development. A hike in interest rate will damper market to climb higher.

20100120 0941 Malaysia Corporate News.

Genting Bhd is looking at a number of opportunities in the U.S., its chairman Lim Kok Thay said. "There are a number of opportunities that would offer good value for our investments," Lim said, declining to indentify any potential targets. "Our funding needs are taken care of, we don't have any need for any fund raising at the moment," he said.
  • Meanwhile, Lim clarified that one of his family companies, Kien Huat Realty, had made a loan to the Mashpee Wampanoag tribe who want to set up a casino in Massachusetts and that it was not Genting that had done so. (Reuters) Although it could still be early days, the availability of M&A targets, particularly in the US, is a slight positive surprise. We have previously identified Asia’s gaming hub i.e. Macau as a primary target for the group given its currently Asia-centric focus of Malaysia, Philippines and soon-to-be Singapore as well.
Genting Bhd plans to build a theme park and hotel within the Iskandar region in Johor to complement the group’s Resorts World Sentosa in Singapore, said chairman Tan Sri Lim Kok Thay. For a start, Lim said Genting would build a mall in a JV with Simon Property Group with Genting’s portion of the project cost estimated at RM200m.
  • “We aim to complete the mall in two years’ time and at the moment, all the 60 outlets have already been taken up,” he said. He noted that the response to the mall would determine the implementation of the theme park and hotel plan. (Financial Daily) 
The group’s plantation arm, Genting Plantations, is the entity undertaking the mall development. While we are surprised by the group’s plans to build a theme park and hotel within Iskandar, we believe that such plans are still at early stages and the final decision will hinge on the response to the mall. Within the Iskandar region, another theme park i.e. Legoland is expected to open doors by 2012.

EON Capital has asked for Bank Negara's approval to talk to potential third parties. The events surrounding EON Capital Bhd (EONCap) (5266) have taken a surprising turn. The approval would cover an option for EONCap to either sell its banking assets or buy other rivals.
  • Effectively, it seemed as if EONCap was asking for a blanket approval to talk to multiple parties.Banking sources said EONCap's letter to Bank Negara includes a list of banks that it wants to talk to although this was absent in the statement to Bursa Malaysia. The sources said there were more than three banks and they included Hong Leong. (BT)
EON Bank expects its "Savers Go Places" campaign to attract 60,000 customers by the first quarter of this year, generating RM300m in new deposits by Dec. This will form part of the bank's RM6bn target in deposits for current financial year.
  • Group CEO Michael Lor said the bank will launch a series of deposit campaigns throughout the year to achieve the projected 20% increase in deposits from last year's RM32bn. "We want to grow our deposits to match the loan growth. We have set an aggressive target for our loan growth, which is 14%, from 6-8% last year," he said.
  •  Last year, EON Bank's deposits grew 3.1%. (BT)
Public Bank will continue to build on its healthy loans and deposits growth while maintaining strong asset quality this year, said founder and chairman Tan Sri Teh Hong Piow. The group would also drive its Islamic operations and fee-based portfolio, which included bancassurance and financial planning products and services, he said. (StarBiz)

Hong Leong Bank aims to have 2m debit cards in circulation in five years, helped by a new card launched to tap the rising demand of cautious spenders. Payments via debit cards have grown more than 80% in the past five years, making them a popular choice among Malaysians, group MD Yvonne Chia said.
  • Hong Leong already has one million debit cards in circulation and is eyeing to add 300,000 this year following the launch of the latest card. (BT)
Labuan banks have been given added flexibility to establish their office or offices in other parts of Malaysia other than its office in Labuan with immediate effect. The Labuan Offshore Financial Services Authority said the policy was an expansion of the initiative introduced in May 09 that allowed Labuan holding companies to set up their operational and management offices in Kuala Lumpur. (Bernama)

The unidentified buyer of Dubai Group LLC’s 30.5% stake in Bank Islam Malaysia, a unit of BIMB Holdings, is likely a foreigner as the bank needs a shareholder that can enhance the value of its businesses.
  • Dubai Group LLC is the financial arm of Dubai Holding, an investment company of the emirate of Dubai. According to a press report, the unidentified buyer was completing due diligence on the unlisted bank in which BIMB holds a 51% stake. (StarBiz)
Datuk Seri Najib Tun Razak who described his visit to India as “substantive”, will witness the signing of 13 memorandums of understanding between Indian and Malaysian companies for projects covering infrastructure development, IT, biotechnology, energy and green technologies. His 200-member delegation includes several ministers, deputy ministers, leaders of state governments, Members of Parliament, senior government officials and several top Malaysian businessmen. (Star)

Maxis expects 50% of its revenue to come from non-voice services by 2013, driven by smartphones and higher demand for data from 32% as at end-Sep 09, its CEO Sandip Das said. One of the main growth driver will be its non-text messaging services, such as mobile content downloads and surfing.
  • The segment accounts for a third of the group's non-voice revenue, from about 12% five years ago. "The mobile content market is very important for us. Today, users have gone beyond just voice, and mobile contents have developed to serve different segments of the society," said Sandip. (BT)
PT XL Axiata, a subsidiary of Axiata, redeemed US$59.4m remaining principal amount of the 7.125% Guaranteed Notes due 2013 on 18 January 2010. Following the redemption, there are no outstanding Notes. The redemption was funded through a combination of internal cash flow and Rupiah loans.
  • XL's Finance Director said: “With the completion of the Notes Redemption, our exposure on US Dollar denominated debt had been reduced." "This redemption is a continuation of our strategy to further reduce our US Dollar denominated debt. In 2009, we have repaid a significant amount of US Dollar debt using both the proceeds of IDR 2.8trn right issue completed in December 2009 as well as internal cash flow.” (XL)
PolymerLatex GmbH is boosting prices for nitrile rubber latex on Feb. 1, and reported its new plant in Malaysia is up and running. The company said the increase in butadiene and acrylonitrile prices prompted it to hike NBR latex prices by US$150 a metric tons.
  • The firm also said it has completed the start-up phase of the new NBR plant in Pasir Gudang, Johor, Malaysia. All the factory’s production lines now are producing Perbunan NBR, which is used for medical and examination gloves. (
The Baltic Dry Index was little changed on Monday as rates rose for the largest class of vessels in the gauge and declined for two smaller ship types. The index tracking freight rates on international trade routes slipped four points, or 0.1%, to 3,295pts, according to the London-based Baltic Exchange. That ended a run of five straight gains. Charter rates climbed for capesize vessels, typical haulers of iron ore and coal, and fell for panamax and supramax ships. (Reuters)

The US Courts of Appeal has ruled in favour of MISC, in the case between the company and Equatorial Marine Fuel Management Services Pte Ltd (Equatorial). The Court of Appeal yesterday, upheld a ruling by the US District Court, that Equatorial had no basis of admiralty action against MISC, as the company had not entered into any contract for supply of bunker with Equatorial.
  • MISC will now focus on pursuing a legal claim for about US$500,000 against Equatorial for all damages caused as a result of the arrest of MISC's vessel."This much awaited decision is warmly welcomed , as no physical supplier can now arrest vessels without presence of proper legally binding contract supported by sufficient evidentiary documents, causing grave commercial strain on ship owners," MISC said. (BT)
Malaysia Building Society Bhd (MBSB) wants a deeper market penetration in the east cost states where demand for financial products is still largely untapped. CEO Ahmad Zaini Othman said the company would focus on two main segments – personal financing and disbursement of loans to owners of Malay reserve land.
  • He said unlike in the west coast states, property development activities in Pahang, Kelantan and Terengganu were moving at a rather slower pace. “These two segments in the three east coast states offer good growth prospects for us, especially for Islamic financing products,’’ Ahmad Zaini said recently.
  •  He said the company also planned to open a regional business representative office in the East Coast Economic Region (ECER) to better serve its customers and attract new ones. It presently has four sales and service centres in the ECER – in Kuantan, Kemaman, Kuala Terengganu and Kota Baru.
  • Ahmad Zaini said the company would be targeting more civil servants as its potential customers and planned to introduce more products tailored to their financial capabilities. “There are over 1.5m civil servants in the country and the figure offers good growth potential for our personal finance business,’’ he said.
  • The personal finance division currently contributes about 30% of MBSB’s total business while the balance 70% comes from home mortgages. (StarBiz)
IJM Land remains optimistic over demand for its Penang projects this year, as it continues to unveil new offerings within its "The Light" waterfront project on the island. "The fact that our site is protected from tsunamis is yet another advantage," says MD Datuk Soam Heng Choon.
  • Soam said iconic landmarks such as a digital hub, boutique hotel and a convention centre will set The Light apart from other waterfront developments on the island.The Light, which is a RM5.5bn mixed development project, is being carried out on reclaimed land north of the Penang Bridge.
  •  Phase 1, which sprawls over 16ha, comprises residential units and is expected to take six years to complete. One component of this phase, which will set IJM apart from its competitors, is the 19 units of seafront designer bungalows tagged at RM15m each. The units are due to be launched by the end of next year. (BT)
Domestic rebar prices in Malaysia have risen by as much as RM100 per tonne over the fortnight due to higher scrap costs. Mills' list prices have increased to RM2,100-2,150 per tonne from RM2,000-2,100 two weeks ago. Traders' offers have also moved up to RM2,000-2,050 per tonne, from RM1,900-1,950 two weeks ago.
  • Meanwhile, heavy scrap (HMS 1&2; 80:20 mix) import prices have jumped to US$350- 380 per tonne cfr Malaysia, up from US$350-360 per tonne in early January. "Prices have to move up with scrap becoming so expensive now," said a Singapore-based trader with operations in Malaysia. Some mills however continue to give a RM50-100 discount to push sales, said sources. (Metal Bulletin)
Petroliam Nasional (Petronas) and Proton Holdings yesterday sealed an exclusive 10- year deal that leads to a more integrated supply, technical and commercial collaboration. For two decades, oil firm Petronas only supplied lubricants to car maker Proton's manufacturing facility and various dealership network.
  • Proton previously also used lubricants from a foreign oil major via a third party. Under the pact, Petronas, through Petronas Lubricants International Sdn Bhd (PLI), will be the exclusive partner for all Proton's domestic and global lubricants and functional fluids needs. In return, PLI will get a more direct route-to-market for its lubricants through Proton's extensive sales and service network. (BT)
Petra Perdana executive chairman and CEO Tengku Ibrahim Petra has clarified that he voluntarily met with the Securities Commission on all matters pertaining to the divestment of shares in Petra Energy and disposal of vessels, among others. He said the board is very clear in its objectives and is determined to ensure that the company is on track to meet its financial and cashflow commitments. (Star)

AirAsia X will spend millions of dollars to reconfigure the seats of its eight planes this year. The long-haul budget carrier plans to refit seats with more leg room for economy class and to replace its Extra Large seats now with lie-flat beds. "The beds will cost a third of what you would pay (for the same kind of seat) in a legacy airline's business class section.
  • It's about creating a more valuable experience onboard for our passengers," AirAsia X chief executive officer Azran Osman-Rani said. He said the carrier will maintain pricing for its economy seats despite the change. The first plane to be re-equipped is set to be ready on February 1, while the remaining planes will be re-configured by June. Its four new planes to be received this year will come with the new configuration. (BT)
Petronas has been invited by the Timor Leste government to develop the country's Greater Sunrise oil & gas field. CEO Tan Sri Hassan Marican said that Petronas has been "engaging the Timor Leste government for quite some time and advising them on the hydrocarbon resources that could be developed". (Star)

Notion VTec has sold 10% of its enlarged share capital to Japanese camera maker Nikon Corp in a private placement at RM2.44 per share. The offer for 13.8m new shares will raise RM33.8m, which will be used for Notion's expansion of its plant in Thailand. The Thai plant will initially cater (to the needs of) Nikon (Thailand) Co Ltd, which has indicated that there will be additional orders for camera parts and also possible sub-assemblies in the near future.
  • Notion executive chairman Thoo Chow Fah said the camera segment will remain a key contributor to the Notion group's revenue and profitability," he added. This segment contributes 45% of the group's revenue. (BT)
KUB hopes to increase contribution from its food-related business from less than 10% now and turn it into a major earner to the group's bottom line within three years. MD Datuk Mohd Nazar Samad said its fast-food chain A&W, which is undergoing a facelift to capture a wider market, is expected to break even on its investment soon, backed by aggressive expansion and opening of new outlets.
  • It now has 39 outlets throughout the country with the bulk of them located in the Klang Valley, but there are plans to open new outlets in Sabah and Sarawak next year. (BT)

Sunway Holdings’s unit SunwayMas Sdn Bhd has entered into a deal to buy a 60% stake in property firm Spanland Sdn Bhd from Templer Forest for RM13.8m. The deal outlines the joint venture (JV) of SunwayMas and Templer Forest to jointly undertake a RM500m property development project on 98.43 acres in Rawang, Selangor. (BT)

Dayang Enterprise Holdings has bagged a RM70m contract to charter its workboat to Brunei Shell Petroleum Co Sdn Bhd. The contract was awarded by Nautika Sdn Bhd to a wholly-owned subsidiary of Dayang for three years. (BT)