20100316 1830 FCPO EOD Daily Chart Study.

FCPO closed : 2569, changed : -6 points, volume : slightly lower.
Bollinger band reading : side way downside biased market.
MACD Histrogram : falling, seller in charge.
Support : 2550, 2521, 2500 level.
Resistant : 2570, 2590, 2620 level.
Comment :
Wild swing market, lots of roll overs and long lower shadow doji bar candle FCPO traded marginally lower (continuous month down 21 points) with sustainable volume. Daily chart negative sentiment accelerate and suggesting a side way range bound downside biased market. Having said that market can still test higher resistant level as it is way too early to say that market has turned bearish.
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. 

20100316 1808 FKLI EOD Daily Chart Study.

FKLI closed : 1305.5, changed : +2.5 points, volume : higher.
Bollinger band reading : side way correction.
MACD Histrogram : weaker , buyer reduce exposure.
Support : 1300, 1295, 1290 level.
Resistant : 1307, 1315, 1325 level.
Comment :
FKLI ended the day marginally higher with better volume traded forming a classic doji bar candle. Daily chart wise, market is expected to trade side way range bound correction phase with possible testing higher resistant level as today's doji bar candle shows that market is a little reluctant to go lower after more than 30 points of correction. Having said that, key factor to watch will be US interest rate 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.

20100316 1254 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1307, changed : +4 points, volume : high.
Bollinger band reading : side way range bound.
MACD Histrogram : recovered, profit taking process stop.
Support : 1300, 1295, 1290 level.
Resistant : 1307, 1315, 1325 level.
Comment :
8 points premium FKLI recovered moderately after profit taking activities stopped with better volume changed hand. Hourly chart turned from a downside biased reading into suggesting a side way range bound market development.

20100316 1243 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2557, changed : -18 points, volume : high.
Bollinger band reading : downside biased.
MACD Histrogram : falling, seller in charge.
Support : 2550, 2521, 2500 level.
Resistant : 2570, 2590, 2620 level.
Comment :
Seller FCPO market continue to trade lower with sustainable volume transacted.Hourly chart reading remain downside biased but however a pullback could possibly take place in the near term as price traded away from the lower Bollinger band.

20100316 0954 Malaysia Corporate News.

Singapore Technologie Telemedia (STT) will invest over RM1bn via the acquisition of a 33% stake in U Mobile from Tan Sri Vincent Tan's U Television and subscribe to new shares via a rights issue in the telco. 50% of the RM1bn goes to U TV while the other half goes to U Mobile's coffers. Apart from U TV, U Mobile's other only other shareholder is Multi-Purpose Holdings with a 3.9% stake. Unlike its former strategic parthers - KT Freetel and NTT Docomo - STT had not been granted a put option to seel back its stake to Tan. Tan had to fork out US$200m (RM662m) to buy out KTF and NTT's respective 16.5% stake last year. U Mobile is planning to accelrate the 3G network rollout in the next 3 years. (FinancialDaily)
The RM500m for the 33% stake is cheaper than the RM662m which was initially acquired by KTF and NTT and eventually put back to Tan Sri Vincent Tan.

According to The Straits Times Singapore (STS), Ananda Krishnan is set to privatise Astro All Asia Networks in an RM8.1bn buyout. Under the proposed deal, the Ananda controlled private investment unit Usaha Tegas and its partners will pay RM4.20 for each Astro share they do not already own. The buyout price represents a slight premium to the RM4.06 valuation when the company was listed in October 2003. Astro has 1.9bn shares on issue. Usaha Tegas controls 43%, while Khazanah Holdings holds 22%. (STS)

Sources said a general offer may be in the offing by Astro All Asia Network's owners. But other options still being considered include separating its domestic and international business, or selling a sizeable stake in the company. Speculation is rife that the pay television operator, which asked for the trading of its shares to be suspended till Wednesday evening, may be taken private. (BT)

A windfall tax on Malaysian palm oil earnings that kicked in from November last year has capped gains as buyers see it as a signal to slow purchases, a top industry official said. Malaysian Palm Oil Association (MPOA) CEO Mamat Salleh said the 15% windfall tax on a tonne of crude palm oil KPOc3 was triggered on companies in the world's No 2 producer when prices rose above RM2,500.

• This automatically provides a psychological barrier which prevents prices from going higher. Why should we as producers cap our crude palm oil price increases?, he said. Mr Mamat forecast a 30% leap to RM65bn in palm oil export earnings for Malaysia in 2010 compared to last year as the demand and supply outlook should support prices between RM2,500-3,000. (Reuters)

Malaysia produced 108,892 tonnes of natural rubber (NR) in January this year, an increase of 12.3% or 11,890 tonnes qoq. Production rose 48.4% or 35,524 tonnes yoy, the Statistics Department said in its latest rubber statistics summary released yesterday. It said the estate sector contributed only 5.2% to total production, while the share from the smallholding sector amounted to 94.8%.

• As for exports, 69,549 tonnes of NR was shipped in January, which was down by 1.2% qoq but 40.6% higher yoy. NR imports in January meanwhile amounted to 73,126 tonnes, a decrease by 10.8% qoq, but a sharp rise by 68.4% yoy. 
• Latex concentrate was the main type of rubber imported in the month, accounting for 45.0% of total imports.
• Domestic consumption of NR during the period was 40,951 tonnes, a decline of 0.2% qoq, but up by 19% yoy. Rubber gloves was the major NR consuming industry at 67.0%, followed by tyre and tubes at 10.8%, while rubber thread took up 9.9%. These three industries together consumed 87.47% of NR in January this year.
• The average monthly price of latex concentrate in January was 657.25 sen, an increase of 12% qoq and 70.6% yoy.
• The price of SMR 20 also showed a similar pattern, increasing by 7.4% qoq to 994.38 sen , while yoy it showed a substantial increase of 98.5%. It was the highest price level since August 2008. (Bernama)

Maybank has appointed Amirul Feisal Wan Zahir as the acting chief executive officer (CEO) of its investment banking unit. The current CEO, Mohammed Rashdan Mohd Yusof, is leaving the group to take up a position at a national institution by Jun, it said. Amirul is currently the MD of the investment banking division.

• Maybank also confirmed earlier reports that chief credit officer Jamaluddin Nasir and head of corporate banking Tracy Ong were also leaving. Ong is retiring as of July 1 after 25 years of service while Jamaluddin's contract term expires in June.Maybank appointed Abdul Rahman Md Khalid as the acting chief credit officer. (BT)

Maybank Singapore launched a worldwide remittance service in collaboration with Western Union, allowing its customers to remit their money to more than 410,000 locations in over 200 countries. Maybank said in a statement that its customers could now remit their money worldwide through its 12 participating branches located throughout the island republic. The money transfer service is also available to the bank’s non-account holders as it is utilising a cash-to-cash platform. Maybank said it was aiming to grow its consumer remittance volume in tandem with market forces, possibly doubling the volume over the next two years. (Bernama / StarBiz)

EON Capital shareholders gave their nod to seven new directors after the EGM yesterday, a move that may pave the way for the revival of Hong Leong Bank Bhd's takeover offer. However, the appointments are only official after Bank Negara Malaysia's approval.

• EONCap key shareholder Rin Kei Mei wanted to change the composition of EONCap's board, which shot down a RM4.9bn buyout offer from bigger rival Hong Leong Bank early this year without presenting it to shareholders.69.2% voted for the appointment of all directors. EONCap already has seven directors. The new addition will make the board 14-member strong. (BT)

CIMB Islamic Bank has won the "Best Islamic Bank in Asia" award from Euromoney Islamic Finance Awards 2010. The bank was also awarded with the "Best Sukuk Deal" honour for its RM20bn Islamic Commercial Paper/Medium Term Note (CP/MTN) programme for Pengurusan Aset Air. The sukuk deal was the largest sukuk issuance in Malaysia last year. (Bernama)

Bank Rakyat and Lembaga Tabung Haji (TH) strengthened their partnership with the launch of TH's Uniteller, an over-the-counter service for Tabung Haji financing transactions and haj registration. Previously, TH depositors could only deposit cash, withdraw or transfer cash to the pilgrims fund board through Bank Rakyat's automated teller machines and cash deposit machines. The Uniteller service is now available at Bank Rakyat's 124 branches nationwide. (Bernama)

Tenaga is expected to resume construction works on the Central Area Reinforcement (CAR) project in Kampung Sg Terentang, Rawang on Wednesday to upgrade power transmission to the Klang Valley. The project was delayed for about three years, pending the outcome of a court decision, after residents in Kampung Sg Terentang had opposed the construction of transmission towers near their neighbourhood. The CAR project would increase the output of electricity from 33kV to 275kV and help overcome power shortage in the Klang Valley. (Bernama)

Tenaga’s subsidiary, TNB Remaco, has signed an RM117m 3-year parts management contract with Mitsubishi Heavy Industries Ltd. Mitsubishi will supply new spare parts to the Tuanku Ja'afar Power Plant in Port Dickson. The contract also included the refurbishment of used turbine components and supply of technical advisers by Mitsubishi for gas turbine maintenance. (Bernama)

Central Malaysian Properties S/B (CMP), a private property developer controlled by Berjaya Group's Tan Sri Vincent Tan Chee Yioun, expects its Lido Boulevard waterfront project in Johor Baru to boast of more than RM4bn GDV over five years.

• CMP will build, among other things, high-end condominiums, hotels, office suites, shopping malls, an indoor snow park, and an art and cultural centre on the 50ha site along the Tebrau Straits, says MD Datuk Chan Tien Ghee. 
• Reclamation works starts next month. The integrated project will stretch from the abandoned Lot 1 shopping mall to the office of the Harbour Master. CMP has hired a private dredging company from the Netherlands, Jan De Nul Group (JND), for the RM239m reclamation job.
• It will be one of the largest reclamation projects in the country, Chan said The reclamation will be the first phase of the Lido Boulevard development. Upon completion at the end of next year, 38ha would have been reclaimed. Another 11ha would be on a piled concrete deck. (BT)

Celcom Axiata expects revenue from its prepaid reload business to grow 5% with the launch of reload services at payphones. Its chief corporate officer Adlan Tajudin said currently, Celcom does about 300m top-ups a month. It has partnered Pernec Corp, which operates a payphone business for the new reload service. (BT)

Malaysia Airlines (MAS) has signed a five-year deal with India's Tata Consultancy Services Ltd (TCS) for the latter to provide it with end-to-end information technology (IT) infrastructure services. The national carrier said TCS will undertake IT infrastructure management of MAS' data centres, IT networks and IT security. TCS will also set up an IT infrastructure library v3-compliant service management organisation under a unique "build, operate and transfer" methodology for MAS. (BT)

MBM Resources is selling its entire 73.33% stake in automotive parts maker WSA Capital Corp to Datuk Dr Wan Mohamed Wan Embong for RM11.1m cash. The company said it had invested RM8.5m in WSA Capital since 2004. The group will gain RM254,000 from the sale, less any share of profits of WCC for FY10. (BT)

MBM Resources (MBMR)'s 86%-owned subsidiary Federal Auto Holdings (FAHB) is buying an automotive showroom and service centre in Sri Hartamas, Kuala Lumpur from Kiara Seleksi (KSSB) for RM20m.The estimated space area of showroom and service centre to be purchased by FAHB is 1,301 sqm and the deal is seen as a related-party transaction as MBMR, FAHB and KSSB have common directors and shareholders. (Malaysian Reserve)

EPF is a possible candidate to take-over or to buy a stake in Pharmaniaga from the UEM Group. Sources say the pension fund has held talks on the stake possibilty as UEM seeks to meet the March 29 deadline on the public shareholding spread set by the Securities Commission (SC).
"Pharmaniaga has a government concession that offers very good distribution margins, the general feeling is that selling the stake to an institution like the EPF would be a lot more palatable than selling it to an individual or company which could irk a lot of parties," said the industry source. (Malaysian Reserve)

Pharmaniaga said it has obtained its manufacturing licence for 2010 after earlier having it revoked by the Health Ministry. It was issued the licence yesterday after a satisfactory follow-up audit by the pharmaceutical services division of the ministry on March 10. (BT)

Scomi Group’s unit, Scomi Engineering, together with its local partner has been shortlisted as one of two consortiums to undertake a US$1.7bn monorail project in Sao Paulo, Brazil. Scomi formed a consortium with CR Almeida SA Engenharia De Obras in July last year to jointly submit proposals for the Sao Paulo project and other monorail jobs in the South American country.

• "The final outcome should be known this month or in April," Scomi International Pte Ltd president Kanesan Vellupillai said. A consortium that includes Bombardier Inc, the world's largest maker of commuter trains and electric locomotives, is the other group shortlisted. (BT)

GE has commissioned the first Frame 6FA gas turbine supplied to the Ranhill Powertron II plant, which will be the largest and most efficient independent power plant in the state of Sabah, East Malaysia. "Malaysia peak demand growth is projected to average about 3% per year until the year 2020, and the demand is particularly strong in Sabah, a rapidly developing rural area where the economy is experiencing dynamic growth. The new plant will help Sabah meet its short-term energy needs while also playing a key role in the overall enhancement of the region's energy infrastructure," said Ranhill Power CEO Norlian Abd Rahim. (Malaysian Reserve)

Tanjung Offshore has won a RM114.6m long-term contract from Petronas Carigali Sdn Bhd for the charter of two vessels. The charter, which commences from March and April this year, is for up to four and five years. The vessels, designed to perform anchor handling and mobilisation of drilling rigs, will be used to support Petronas Carigali’s offshore operations in Malaysian waters. (BT)

20100316 0942 Malaysian Economic News.

The postponement of the second reading of the Goods and Services Tax (GST) bill does not mean it is a “no go” as it will eventually have to be implemented, said chairman of the tax review panel at the Finance Ministry Datuk Kamariah Hussain. “

• The way forward” for the ministry was to take the opportunity to go on more roadshows to raise public awareness on the need for GST, which would work together with the Federation of Malaysian Manufacturers (FMM) and the SME Corp, she added. (Financial Daily)

Goods and services offered by the financial sector will be exempted from the government’s proposed Goods and Services Tax (GST) because it is “difficult to tax”, chairman of the tax review panel at the Ministry of Finance Datuk Kamariah Hussain said.

• This was following the precedent set by countries like Singapore and New Zealand which did not impose GST on the finance industry. She added that it will be a challenge for the government to ensure all (cost) savings are passed on to the consumers. From the experience of other countries, it is a one-off kind of price increase. (Financial Daily)

The government should return to the global bond market for the first time in almost eight years to set new benchmark borrowing costs for the nation’s companies, according to the central bank. “Malaysia has not tapped the international capital market for a long time, whether in conventional or sukuk bonds.

• Therefore, we have encouraged the government to do so because it’s important to have the Malaysian name in the market as well as to create a benchmark for other corporates.” Governor Zeti Akhtar Aziz said. (Bloomberg)

Yang di-Pertuan Agong Tuanku Mizan Zainal Abidin said that the New Economic Mode (NEM) to transform Malaysia into a high-income and developed country is a “visionary move” by the government. The giving of subsidies will also be restructured and reduced in stages.

• “However, the target groups, like the poor, would continue to receive aid to ensure that they were not burdened. We call on the people to be far-sighted and be prepared to accept this change," he said. (Bernama, Financial Daily)

China's Ambassador to Malaysia, Liu Jian, says expansion of trade and investment between Malaysia and China is top priority for him this year as several trade agreements, including its free trade pact with Asean, come into force. He expressed confidence that the full implementation of the China-Asean Free Trade Area (FTA) this year would accelerate economic development between China and Malaysia. (Bernama)

20100316 0939 Global Economic News.

US industrial production in February rose 0.1% (+0.9% in Jan), slightly above the expectation for no change. This was due in part to gains in demand for computers and semiconductors. Capacity utilisation rose 0.2pt to 72.7%. Manufacturing output was down 0.2% (+0.9% in Jan) and was "likely held down somewhat by winter storms in the Northeast." Utilities rose 0.5%. Consumer goods dropped 0.4% and autos were down 4.4%. (Xinhua)

US homebuilder confidence unexpectedly declined in March, a sign the housing recovery is having trouble gaining momentum. The National Association of Home Builders/Wells Fargo index of builder confidence dropped to 15 this month from 17 in February. A reading below 50 means most respondents view conditions as poor. (Bloomberg)

Net foreign selling of US securities totalled US$5bn in January vs. flat numbers in December 2009. This came as China and Japan, the two biggest holders of Treasuries, reduced their positions. Foreign Official Institutions led the selling in January with net sales of US$3.8bn vs. selling of US$3bn in the previous month. Total net buying of long-term equities, notes and bonds totalled US$19.1bn, compared with purchases of US$63.3bn in December. (Xinhua, Bloomberg)

US Senate Banking Committee Chairman Chris Dodd reintroduced financial reform legislation, saying that his revised plan provides the basis for a reform effort that can attract bipartisan support. "I'm still optimistic we can get a final consensus on the bill," Dodd said. Dodd said he still is pushing for the "broad consensus we need to reform the financial system."

• Dodd's bill has four major components: ending Too Big to Fail, creating an early warning system for systemic risk problems, creating a better regulatory framework for derivatives, and setting up a consumer protection entity to protect consumers who are purchasing financial products. (Xinhua)

European finance ministers sparred over an aid package for debt-ridden Greece, banking on the Greek government’s budget cuts to make a bailout unnecessary. Officials from the 16 countries using the euro damped speculation that tonight’s meeting in Brussels would hammer out a rescue strategy amid hopes that €4.8bn (US$6.6bn) in savings will put Greece on a path to fiscal health.

• “There is no emergency plan, at any rate not one that I’m aware of. The bandwidth of possible measures and opinions on what can be done are still very divergent,” Austrian Finance Minister Josef Proell said. (Bloomberg)

Japan’s consumer confidence rose from 39.0 to 39.8 in February, marking the second month expansion as the economic recovery began to generate jobs. Economists had forecast for a gain to 40.0. (Bloomberg)

The Japanese government raised its assessment of the economy for the first time in eight months, saying the recovery is beginning to spur profits, home building and consumer spending. “The economy has been picking up steadily, though it remains in a “difficult situation” because of high unemployment,” the Cabinet Office said. (Bloomberg)

China’s foreign direct investment rose 1.1% yoy to US$5.9bn in February (7.8% in Jan), marking the seventh month increase. That was less than the median forecast for a 10.7% gain. China’s February economic data was affected by a weeklong Lunar New Year holiday. (Bloomberg)

China cut back its Treasury bond holdings to the lowest level in eight months, amid sharp allegations that Beijing is undervaluing its currency, the US Treasury said. China sliced its bond holdings to US$889.0bn as at end-January from US$894.8bn as at end- December 2009. (Channel News Asia)

Singapore’s retail sales rose 2.3% yoy in January (-4.9% in Dec 09), marking the first time increase in 16 months as motor-vehicle purchases climbed and consumers bought furniture and household goods ahead of the Lunar New Year festival. Economists had projected it would rise by 0.5% yoy in January. (Bloomberg)

Singapore’s Ministry of Manpower (MOM) said the last year’s labour market was more resilient than in previous downturns, supported by the Resilience Package and concerted tripartite efforts to save jobs. The labour market rebounded quickly in 2H09, offsetting the job losses experienced in 1H09. Total employment grew by 37,500 in 4Q09 alone (21,300 in 4Q08), and double the gains of 14,000 in 3Q09. The long-term unemployment rate remained unchanged at 0.7% in 2009. (Channel News Asia)

India’s inflation accelerated 9.9% yoy in February (8.6% in Jan), marking a 16-month high and increasing pressure on the central bank to raise interest rates from a record low. Market had projected for a 9.7% increase for February. (Bloomberg)

The World Bank will stress the need for infrastructure building in its future lending programmes for East Asian middle-income countries such as Indonesia, Vietnam and the Philippines. Infrastructure investment in parts of East Asia outside China 'has fallen substantially behind' needs, the World Bank's vice-president for East Asia and the Pacific Jim Adams said. Mr Adams said the bank was too willing to leave infrastructure to the private sector in earlier years but is making up for this now under its Infrastructure Action Programme. (SBT)