Wednesday, January 27, 2010

20100127 1813 FCPO EOD Daily Chart Study.

FCPO closed : 2429, changed : +22 points, volume : higher.
Bollinger band reading : bearish.
MACD Histrogram : reversed slightly higher, up and down, up and down.
Support : 2400, 2370, 2330 level.
Resistant : 2440, 2470, 2500 level.
Comment :
One day down, one day up market for FCPO ended today with significant volume changed hand after market tested the support broken low and follow by buying activities pushed price to closed way off the low due to soy oil futures price recovery. Daily chart wise still suggesting a bearish near term outlook with price record lower low. Expect marke to trade side way range bound downside biased.
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 larger cut loss and profit target.

20100127 1725 FKLI EOD Daily Chart Study.

FKLI closed : 1261.5, changed : -16.5 points, volume : higher.
Bollinger band reading : bearish and oversold.
MACD Histrogram : dived deeper, seller turned aggresive.
Support : 1253, 1230 level.
Resistant : 1267, 1274, 1280 level.
Comment :
A black wide range bar candle for the 2nd day with even higher volume transacted! Seller turned into a fat rich cow in 2 days. Technically today's candle closed way below the lower Bollinger band can expand to showing that the selling activities are way overdone. Despite the just turned bearish daily chart reading, market seems need to take a rest before going down further. Expecting market to have a pullback correction soon before going down further or at least wait until the lower Bollinger band to do some catch up to match the price diving pace.
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 larger cut loss and profit target.

20100127 1305 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1272, changed : -6 points, volume : high.
Bollinger band reading : bearish.
MACD Histrogram : recovering, seller locking in partial profit.
Support : 1267, 1255 level.
Resistant : 1276, 1280, 1286 level.
Comment :
Seller continue to press the sell button since market opened in the morning follow by partially profit taking activities. Hourly chart does look ugly with price coming down like water diving divers. Expecting further downside market development but there is a possible pullback as price drop too severely.

20100127 1246 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2428, changed : +21 points, volume : low.
Bollinger band reading : bearish.
MACD Histrogram : recovering, seller lock in profit.
Support : 2400, 2370, 2330 level.
Resistant : 2440, 2470, 2500 level.
Comment :
FCPO recovered some of the yesterday losses with low volume transacted in tandem with better soy oil futures price. Hourly chart still recording bearish reading with price stayed below the middle Bollinger band and the band width expanding. Despite MACD Histrogram recovering, it is still below the zero line level suggesting that the underlying of the market remained weak in the near term. Expecting market to trade side way range bound downside biased.

20100127 0948 Malaysia Corporate News.

Sime Darby Property (Sime Property) is partnering Sunrise to develop a RM1bn integrated commercial project in the Bukit Jelutong township in Selangor next year. The two firms will have equal stakes in the joint-venture company, Baywood Avenue. They plan to build retail, shop-offices, office-suites and serviced apartments on some 8.4ha. The project, located opposite Sime Darby Pavilion, will be developed in five phases over seven years, beginning next year. The joint venture will buy the land from a subsidiary of Sime Property for RM118.1m, or RM125 per sq ft. (BT) We view this news positively as Sime will be able to unlock the value of its rich land bank through this joint venture by accelerating the development of its strategic land bank. However, we do not expect this news to have a material impact on the group's earnings in the short-term.

EON Capital (EONCap) may seek to enter takeover talks with Hong Leong Bank on a non-exclusive basis when it responds before a deadline this afternoon, people familiar with the situation said. "They will probably try to extend the process and reset some conditions, including perhaps to discuss (the takeover bid by Hong Leong Bank) not on an exclusive basis," a source said.
  • EONCap will likely put out an announcement today on its decision before the Hong Leong offer lapses by 5pm. Hong Leong has given EONCap seven days from last Thursday to decide on an offer to buy out its banking assets for RM7.10 cash per share. 
  • EONCap is barred from talking to other potential bidders once it agrees to the terms set out in the proposal. Other conditions would restrict EONCap from paying extraordinary dividends before the transaction is completed, or to have any adverse changes in its financial position before the deal is sealed. 
  • "The feeling from the management is that EONCap is being undervalued by the market and this particular bidder," the source added. (BT)
In what is turning out to be a heated takeover battle involving EON Capital, it is believed that property group Mulpha International has written to Bank Negara to seek the green light to start talks to acquire a stake in the bank.
  • “Mulpha has, a few days ago, sought the central bank’s permission to speak to EON’s shareholders to buy a stake in the bank. The decision is pending,” said a source. 
  • Listed Mulpha International is led by executive chairman Lee Seng Huang, who as at April 2009, owns a 32% interest in the group with core businesses in real estate and property-related services in Malaysia, Singapore, Australia, Hong Kong and China.
  • While it may pique curiosity that the property group is interested in acquiring a stake in a financial institution, it is noteworthy that Lee is also the executive chairman of Hong Kong-listed Sun Hung Kai & Co Ltd, a non-bank financial institution focused on wealth management, broking, corporate finance and consumer finance. Lee is a trustee of a discretionary trust which owns a controlling interest in Hong Kong-listed Allied Group Ltd, which is the ultimate holding company of Sun Hung Kai with a 70% stake. “The interest in EON Cap could be related to Sun Hung Kai. That is a logical link,” said a source.
  • One of Sun Hung Kai’s non-executive directors is Ming Cheng, who is MD of Hong Kong-based financial services holding company Primus Financial Holdings Ltd. Ng Wing Fai, non-independent director of EON Capital, is the MD and founding partner of Hong Kong private equity firm Primus Pacific Partners. Primus Pacific owns a 20.2% interest in EON Cap which it acquired back in 2008 at RM9.55 per share. (StarBiz)
Alliance Bank Malaysia has received group CEO Datuk Bridget Lai’s reply to the questions posed to her in the bank’s internal probe yesterday, a source close to the bank said. “She has replied and the board will look into the matter,” the source said.
  • It was reported earlier that Lai had to answer certain questions by the Alliance Bank board as part of the bank’s internal probe. The questions were given to Lai on 11 Jan. 
  • Alliance Bank had extended Lai’s deadline twice to give her more time to answer the queries.
  • When contacted, Lai confirmed that she had submitted her reply to the bank. “Yes. My reply has been submitted but I can’t speculate nor comment on what will happen next,” she said. 
  • The ongoing internal probe concerned operational matters related to renovations done in the bank’s property department. (StarBiz)
The government could introduce a 5% biodiesel blend fuel at the pump for private vehicle users in selected states in peninsula some time this year, Minister of Plantation Industries and Commodities Tan Sri Bernard Dompok said. "I think it will have to be this year, but I need to get my work done first," he added. (Edge Financial Daily)

The government said the windfall profit tax on oil palm planters will be maintained, dismissing calls for a review of the calculation of the levy. "The Cabinet has decided that the windfall tax on palm oil be maintained for now," said Plantation Industries and Commodities Minister Tan Sri Bernard Dompok. MEOA president Boon Weng Siew reportedly said it would be more justified if the windfall tax is on actual profits of audited financial accounts, like corporate tax. "This is because not every planter makes tonnes of money as the profitability of oil palm plantations depends on the age and productivity of the trees. A newly-replanted estate would still be losing money even if palm oil prices surpass RM3,000 per tonne." (BT)

Malaysian entrepreneurs are invited to establish palm oil refineries in Central Kalimantan. Deputy Governor Ir Achmad Diran said as the province's oil palm industry is developing rapidly, there is a need for more refineries to cater for the 1.2m tonnes of crude palm oil produced in Palangkaraya (Central Kalimantan). (Bernama, BT)

Current fundamentals look favourable for natural rubber (NR) prices to stay bullish, said Association of Natural Rubber Producing Countries (ANRPC) secretary-general Prof Djoko Said Damardjati. He said there was a tight supply situation caused by a progressive decline in global production and a marked rebound in demand. Yesterday, tyre-grade SMR 20 closed two sen higher at RM10.19/kg while Latex-In-Bulk rose RM1.50 to settle at RM6.96/kg. Djoko said that none of the NR producing countries currently hold any NR buffer stock, contrary to a recent report on a buffer stock of 300,000 tonnes. “Policies pursued in the major NR exporting countries are oriented towards ensuring the best price for NR with a view to enhance farmers’ income and improving export earnings,” he said. He added that putting a cap on rubber prices was not on the agenda of major exporting countries. (Starbiz)

The Malaysian property market, estimated to have registered transactions worth RM75.4bn last year, is expected to improve further in 2010 in line with the economic recovery. The transactions involved 337,990 properties as compared with the 340,240 valued at RM88.3bn in 2008, said director general of Valuation and Property Services Department, Finance Ministry, Datuk Abdullah Thalith Md Thani. (Bernama, NST)

Property prices in Malaysia are forecast to increase by 5% to 10% this year against last year in line with the recovering economy. Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia president James Wong said the market did not expect a big jump in property prices this year as the economy was not fully recovered yet. (Starbiz)

MK Land has denied that there is a dispute in the internal management of the company and a vacuum exists in the management. General manager of its legal department, Preetie Boler, said the company was "intensely moving ahead" with its three-pronged approach - sales of properties, cost-control measures and a corporate exercise - to strengthen its position as unanimously approved by its board of directors. (Starbiz)

While Petra Perdana chairman and CEO Tengku Datuk Ibrahim Petra claims that the disposal of the 5.38% stake in Petra Energy did not require shareholders’ approval, suspended executive director Shamsul Saad is disputing this.
  • “This sale was at a 12% discount to the weighted five-day average price of Petra Energy shares at that time and a breach of the Petra Perdana shareholder mandate,” Shamsul said. 
  • On 10 Sep, Petra Perdana placed 10.5m, representing 5.38% stake, in its then subsidiary Petra Energy at RM1.53 per share to TA First Credit Sdn Bhd. As a result of this disposal, Petra Perdana suffered a loss of RM500,000. Subsequently, TA First Credit resold the Petra Energy shares at RM1.80 each – 2m shares on 30 Sept and a further 7.7m shares on 27 Oct. 
  • Shamsul said TA Securities was appointed by Ibrahim at an “unusually high 3% in placement fees”. Coincidentally, TA Securities was also appointed by Ibrahim as valuation agent for the transaction. (Star).
Petra Perdana’s efforts to secure RM116m to help ease its tight cash situation was delayed following the court injunction to stop it from selling its remaining 29.59% stake in associate firm Petra Energy.
  • The amount is inclusive of the proceeds from its 5.38% divestment and repayment by Petra Energy. 
  • Petra Perdana CEO Tengku Datuk Ibrahim Petra said the company would on Friday seek to strike out the injunction, which could help the company proceed with the sale by convening an EGM to seek shareholders’ approval. 
  • Tengku Ibrahim said the reason they opted to divest the Petra Energy shares in the first place was to address the tight cashflow and to prepare for challenging times ahead, as agreed to by the board. (Bernama)
AirAsia is launching direct flights to six new Indian routes in the first quarter of 2010, including Chennai, Bangalore, Hyderabad, Mumbai and New Delhi from Kuala Lumpur and from Penang to Chennai.
  • AirAsia is the only airline from Malaysia which will be flying to Bangalore and Hyderabad from Kuala Lumpur and from Penang to Chennai. The Chennai, Bangalore and Hyderabad sectors will be serviced by AirAsia’s A320 aircrafts, Mumbai and Delhi will be served by its long-haul affiliate, AirAsia X via its new Airbus A330 fleet. 
  • This new development is subsequent to AirAsia’s huge success of Tiruchirapplalli (Trichy) followed-by Kolkata, Kochi and Thiruvananthapuram (Trivandrum) recording an average of 80% load factor on all our four existing routes. (Press release)
Zenith Media Malaysia is forecasting a 10% growth in the country’s adex this year. CEO Gerald Miranda said adex would benefit from the global economic recovery. He said government had forecast an economic growth of 2% to 3% this year, he believed actual growth would surprise on the upside. “Measures to increase consumers’ disposable income, such as through an increase in personal tax relief and the lowering of the maximum tax rate from 27% to 26%, will also help stimulate spending,” he said. (Star)

Perodua’s Myvi model was ranked highest in the compact car segment in the 2009 Malaysia Initial Quality Study conducted by J.D. Power Asia-Pacific. This is the third year in a row that Perodua Myvi was ranked highest. (BT)

The Naza Group of Companies expects to sell close to 3,000 units of Peugeot cars in Malaysia this year, mainly driven by new models. Its joint executive chairman SM Nasarudin SM Nasimuddin said the group is targeting to launch four new models this year, namely the 308CC, 508, RCZ and T33. "For T33 alone, we expect to sell about 500 units. Production of T33 at our facility in Gurun is expected to start in October," he said. He said Naza has also managed to export Peugeot's left-hand drive cars to other markets such as Australia and New Zealand. "There are also plans to export this car to other markets such as Japan and as far as South Africa," he said. Naza expects to sell between 25,000 and 26,000 units of cars under its stable this year. (BT)

Redtone hopes its IPTV, dubbed "DETV" subscriber base to hit 100,000 in 3-5 years from the launch of the new service. The plan is to tie up with more content partners in the future to bring in content from Hollywood, Bollywood or neighbouring countries such as Indonesia. "We have some 38 channels now but there is the possibility to increase it rapidly, to say even 100," managing director Wei Chuan Beng said. Subscribers of DETV need a set-top box, a television and 1Mbps broadband Internet speed. (BT)

Parkson Holdings said its wholly-owned unit Parkson Vietnam Co Ltd, increased its stake in Parkson Hanoi Co Ltd by investing some US$1.008m as charter capital of Parkson Hanoi. The company announced that Parkson Vietnam increased its stake in Parkson Hanoi from 49% to 70%, thus making the latter a subsidiary of Parkson Holdings. Parkson Hanoi has a total investment capital of US$6m and a charter capital of US$4.8m which has been fully paid. (BT)