Tuesday, April 13, 2010

20100413 1811 FCPO EOD Daily Chart Study.

FCPO closed : 2531, changed : -4 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : not much movement, no significant move by both buyer and seller
Support : 2521, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
Small range quiet FCPO closed marginally lower with lesser volume changed hand. Daily chart reading continue to show a side way range bound market that near possible temporary trend line support level(yet to be valid).
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.

20100413 1731 FKLI EOD Daily Chart Study.

FKLI closed : 1334, changed : -12 points, volume : higher.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : fall lower, seller taking chances.
Support : 1330, 1325, 1318 level.
Resistant : 1337, 1345, 1350 level.
Comment :
12 points lower FKLI closed near the low of the day with better volume changed hand. Daily chart outlook suggesting a consolidation side way range bound market with still upside movement biased. However, trader should look out for the market consolidation that is currently near a crucial trend line support level.
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.

20100413 1300 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1336, changed : -10 points, volume : high.
Bollinger band reading : downside biased.
MACD Histrogram : getting lower, seller returned.
Support : 1330, 1325, 1318 level.
Resistant : 1337, 1345, 1350 level.
Comment :
10.5 points range market FKLI traded lower with improved volume in unison with major Asia market that trade mostly weaker. Further downside movement potential market is likely to development base on the current hourly chart reading.

20100413 1250 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2516, changed : -19 points, volume : low.
Bollinger band reading : downside biased.
MACD Histrogram : getting lower, seller still in.
Support : 2500, 2470, 2450 level.
Resistant : 2521, 2550, 2570 level.
Comment :
12 points range FCPO traded weaker in low volume changed hand following lower souy oild futures price development. Hourly chart shows that market is likely to trade within a side way range bound downside biased channel.

20100413 1036 Malaysia Corporate News.

Palm oil stockpiles in Malaysia declined 7.5% in March compared with the previous month as exports jumped. Inventory of the edible oil fell to 1.65m metric tonnes (mt) from 1.79m tonnes in February, the Malaysian Palm Oil Board said. Output climbed 20% to 1.39m tonnes from a revised 1.16m tonnes in February and exports gained 7.7% to 1.39m from 1.29m tonnes. (Bloomberg, Malaysian Reserve)

EON Capital has withdrawn a proposal to pay a tax-exempt dividend of 10 sen per share for its FY09, to avoid a reduction in an offer price by Hong Leong Bank (HLB). This follows the revised offer from HLBB to acquire EON Capital’s entire asset and liabilities, which was conditional upon EONCap not paying dividends or returning capital to shareholders until the completion of the transfer of assets. Otherwise, these payments will be deducted from the offer price. However, EONCap has said that in the event the deal with HLBB falls through, it may reconsider the proposed dividend. (BT)

Malaysia could see a minimum RM70bn renewable energy (RE) business revenue by 2020 with the implementation of a national RE policy, Malaysia Building Integrated Photovoltaic's (MBIPV) national project team chief technical adviser, Ahmad Hadri Haris said. This in turn could generate tax income of some RM1.75bn, he added. The Act is currently being drafted by the Energy Ministry with technical support from the MBIPV. The Act is expected to be tabled later this year and feed-in tariffs could be implemented by next year. (BT)

MMC Corp’s power arm, Malakoff, was moving through a phase and was actively looking for business opportunities to venture into green technology involving renewable energy, said MD and CEO Ahmad Jauhari Yahya. (Starbiz)

Credit Guarantee Corp Malaysia sealed a joint-venture agreement with Dun & Bradstreet Malaysia (D&B) and Association of Banks in Malaysia (ABM) as shareholders of SME Credit Bureau. Under the deal, CGC as the major shareholder with 55% stake will provide its expertise and experience in the financing of small and medium-sized enterprises (SME) in Malaysia. It will also guide the development and management of the bureau's business.
  • D&B, with a 25% stake will assist the development and operations with technical know-how given its knowledge and expertise in commercial credit bureau operations worldwide. While ABM, which signed the deal through its unit ABM Investments and holds a 20% stake, will provide support by helping the bureau to promote a strong and beneficial relationship with member banks. 
  • The bureau which was established in 2008, has 38 financial institutions and over 27,000 SMEs registered as members. It provides a wide range of business information reports and services to assist banks and businesses make critical credit search and decisions in a timely and consistent manner. (BT)
Packet One (P1), a unit of Green Packet, may raise about US$100m (RM319m) by selling a fifth of the company to a strategic investor. It is believed that there are a few interested parties interested in investing in P1, including foreign telcos like South Korea's SK Telecom.
  • "So far, a few parties have approached P1. Talks are still in the early stages. Nothing is finalised yet. It may take months before anything concrete happens," sources said. 
  • "Being the market leader in the WiMAX space is certainly a plus point. Moreover, broadband penetration is still relatively low, indicating good growth potential," said the source.
  • Green Packet group MD Puan Chan Cheong, when contacted, said it was the company's policy not to respond to speculation or rumours. (BT)
Ahmad Zaki Resources said it will bid for contracts to build four office towers in Putrajaya worth some RM700m to grow its income. It will also bid for other building and infrastructure projects called by Putrajaya Holdings, AZRB executive director Datuk Wan Zulkifli Wan Muda said. "The unbilled portion of our existing order book is RM1.4bn and this is expected to grow. We are hopeful of doing better in the current financial year," he said. (BT)

Putrajaya Holdings will call for tenders for projects worth over RM1bn this year as it is bullish on the property market in Putrajaya. CEO Datuk Azlan Abdul Karim said the tenders are to build four office towers worth RM700m, residential properties and office blocks. Companies like Ahmad Zaki Resources (AZRB), IJM Corp, Sunway Holdings, UEM Group and Ireka Corp are set to bid. (BT)

Tan Chong Motor executive director Datuk Ang Bon Beng said the brand awareness was lacking in the Indochina market, and it was the company's mission to raise that awareness. Ang said it would start that mission in Cambodia. "After that, we would move to Laos and moving forward, we will accelerate our presence in other potential markets," he said. Tan Chong expects to start operations in both countries in the second quarter of this year, with a total financial commitment of US$5m (RM16.05m) for the first five years in each market. The initial sals volume is 200 units per year for each country. (Financial Daily)

Honda Malaysia registered sales of 4,041 cars in March, the highest monthly record in the company's history with the City model, posting the biggest sales of 1,752 units. MD and CEO chief executive officer Toru Takahashi said just three months into the year, the company had already achieved 25% of its annual target sales of 40,000 units. (Bernama, BT)

Quill Automobile expects a 15% to 20% increase in BMW sales volume within the next six months. Director Roland Ooi said economic conditions and consumer sentiment were good. "This year, we've seen a good three months. Going forward, things look positive. Last year, people were cautious. " He said new BMW launches this year would help generate interest and boost sales in Malaysia. (Starbiz)

Carlsberg Brewery Malaysia is optimistic of a good showing this year as it rides on a recovering economy and integrates its Singaporean sister firm into the fold. "We hope to see a recovery in the malt liquor beverage market and the domestic consumption of beer and stout products," chairman Datuk Lim Say Chong said. (BT)

The Sunway Group's hospitality arm, Sunway International Hotels & Resorts, plans to manage 5,000 rooms under the Sunway and Allson brands by end-2014, as it moves into the Middle East and further into Indochina. The group now manages a room-inventory of 3,500. "The direction of the company is to go more into management of hotels," CEO Hanley Chew said. This year, it may start managing two hotels in Saudi Arabia. (BT)

Talam Corp will settle debts of RM150.62m to Menteri Besar Selangor Inc (MBI) by selling several pieces of land in Selangor measuring 535.6ha. The RM150.62m is the balance owed from a total of RM391.99m. Apart from the amount due, another RM164.5m will be for MBI to secure release of encumbrances from Talam’s financiers for the land. (BT)

Johor has received two new investments totalling more than RM2.5bn for the upcoming oil & gas hub in the Teluk Ramunia and Pengerang areas this year.
  • Johor State Investment Centre GM Mohamed Basir Mohamed Sali said RM2bn would be for a shipyard project from an Asia-Pacific-based company. The remaining RM500m would be for a fabrication yard project covering over 200ha from a local company. 
  • Apart from the new investments, two investors from Qatar and Iran planned to invest RM16bn and RM30bn to set up their facilities in the hub before 2013. (Star)
Petra Perdana has secured loans amounting to US$52.5m (RM168.58m) for three vessels to be delivered within 2010. "The outlook for our vessels has improved over the last few months, with a number of new charters secured with durations up to three years," managing director Shamsul Saad said. "We are confident that with the expected increase in vessel utilisation and the inking of vessel financing to be completed soon for the outstanding new vessels, the company is now moving out of its worst period," he said. (Malaysian Reserve)

Frozen food manufacturer Kawan Food is optimistic that China will make up as much as 70% of its sales over the next two years. "Sales increased 17% last year despite the economic slowdown. This is because our food was inexpensive which went well with the credit crunch," CEO Jon Fang said. The company hopes to sustain its performance this year as it plans to venture into new markets, put more effort in building its brands and continuously introduce new innovative products. (BT)

20100413 1030 Malaysian Economic News.

Malaysia can be a springboard for South Korean companies to penetrate the Chinese and Indian markets, said South Korea's Small and Medium Business Corporation (SBC) president Lee Ki Won.
  • He said that Malaysia has good social, physical and financial infrastructure and an excellent education system. "We should go beyond simple trading and move to forming strategic alliances which include investment, technology cooperation, joint production and marketing," he said. 
  • The Korea Desk at the Malaysian Industrial Development Authority (MIDA) premises would be a comprehensive support centre to support industrial cooperation such as investment, technology partnerships and the joint marketing of companies in both countries.
  • South Korean foreign direct investments (FDIs) in Malaysia could be set to double this year (US$133.2bn in 2009), said MIDA. (Bernama)
The government is set to lure home more Malaysian doctors and specialists with more than 10 years experience abroad by exempting them for the compulsory three years service in public hospitals. Health Minister Datuk Seri Liow Tiong Lai said the programme would only be open to those who had self-funded their studies. The details of the programme would be announced soon and it was expected to be implemented this year. (Bernama)

Health Minister Datuk Seri Liow Tiong Lai said that Health Director-General Tan Sri Dr Ismail Merican had been instructed to look into the long-standing issue of restricting doctors from advertising their services in the media. They feel that there is a need to liberalise on this and to allow doctors to advertise their services. (Bernama)

Private hospitals' revenue in the country grew from RM58.9m with around 103,000 medical tourists in 2003 to RM299.1m in 2008 with around 374,000 medical tourists and the arrival of medical tourists for this year was expected to rise to another 30.0%. The country was now targeting medical tourists from Brunei, Europe, Australia and the United States, as well as developing Asean countries like Laos and Cambodia. (Bernama)

The government has allocated RM4.9m to assist private pre-schools in rural and remote areas this year said DPM cum Education Minister, Tan Sri Muhyiddin Yassin. The amount would be used to assist 426 private pre-schools eligible to receive a RM10,000 one-off grant while the amount would be increased to RM5.0m next year. (Bernama)

Malaysia’s ringgit strength reflects its economic fundamentals and the country does not rely on the currency to bolster its exports, the central bank said. “What is important is that our exporters are well-positioned to make the necessary adjustments to become more competitive and to build strong buffers during the good times. Nonetheless, the financial system was now more diversified and could absorb capital inflows,” it said. (Financial Daily)

Electronic-commerce trade is expected to grow 20.0% this year, backed by private initiatives and supportive government policies, said National ICT Association of Malaysia (PIKOM) chairman, Wei Chuan Beng said. While PIKOM President C J Ang said research firm, IDC Malaysia, expected the country’s e-commerce to have a compounded annual growth rate of 16.0% this year. The business-to-consumers transaction was estimated at US$3bn for 2010 while business-to-business at around US$20.0bn. (Malaysian Reserve)

The Federal Government is establishing a special implementation task force to identify and monitor the participation of Indians in government projects and programmes. The Prime Minister’s Office said the task force would be chaired by Human Resources Minister Datuk Dr. S. Subramaniam and would work closely with other relevant agencies. (The Star)

20100413 1026 Global Economic News.

US posted a budget deficit for a record 18th straight month in March, reflecting gains in government spending to bolster the economy. The excess of spending over revenue declined to US$65.4bn last month, compared with a shortfall of US$191.6bn in Mar 09.This brings the six-month total to US$717bn, vs. the US$781.4bn at this point last year. The year-over-year narrowing reflected a decline in outlays for the Troubled Asset Relief Program to shore up financial firms. The March deficit was more than the US$62.0bn economists anticipated. (Bloomberg, Xinhua)

The US government's bailout of the financial system is expected to cost US$89bn, much lower than earlier projections, the Wall Street Journal reported, citing Treasury Department officials.
  • The US$89bn estimate is also 42% less than the savings-and-loan crisis. However, this figure does not include losses at Fannie Mae and Freddie Mac, which are projected to be US$370bn through 2020. 
  • The Journal also said that Treasury officials were looking into ways to disentangle the government from its nearly 80% stake in American International Group. The officials are hopeful that the bailed-out insurer could be on its own within a year and they see a profit of US$8bn from the Treasury's investment of US$245bn in banks. (CNBC)
The National Bureau of Economic Research (NBER) said that it is too soon to determine when the US recession ended. Although most indicators have turned up, the committee decided that the determination of the trough date on the basis of current data would be premature. However, some committee members have said recently that they believed the recession ended last summer or fall, judging by economic growth, employment and other factors. (CNBC)

A total of 33 states in the US and the Virgin Islands have depleted their funds and borrowed more than US$38.7bn to provide a safety net, according to the National Employment Law Project. "The nation's financing system for jobless benefits is under unprecedented stress," said Andrew Stettner, deputy director of the New York-based advocacy group for the unemployed. (CNN Money)

US FDIC Chair Sheila Bair said the "balance sheets of households and financial institutions remain under pressure, in large part due to the decline in real estate prices and the scale of household borrowing over the past decade. As a result, we expect this recovery to be relatively slow compared with those that followed previous recessions." (Xinhua)

Bank of Japan policy makers Tadao Noda and Miyako Suda said they opposed bolstering a lending program last month because it couldn’t be explained given improving economic conditions, minutes of the 16-17 Mar meeting showed. Suda said “there was no solid justification for enhancing easy monetary conditions. The market may also increasingly come to consider that the bank would take whatever policy action the market has anticipated.” (Bloomberg)

The Bank of Korea raised its Gross Domestic Product (GDP) growth projection from 4.6% to 5.2% for 2010 while cut the forecast for core inflation, which excludes oil and fresh food, to 1.8% this year from 2.5% in the December projection. It added that the economy likely expanded 1.6% qoq and 7.5% yoy in 1Q10, marking the fastest pace since 2006. The central bank kept its 2011 economic-growth projection unchanged at 4.8%.
  • Headline inflation is expected to increase by 2.6% this year (2.8% in 2009). 
  • South Korea will likely post a current-account surplus of US$10.5bn in 2010 (US$42.7bn in 2009), down from the central bank’s previous forecast of US$17.0bn as import growth outweighs that of exports.
  • Goods exports will likely advance 18.6% to US$431.0bn in 2010 and imports may gain 28.3% to US$414.5bn on a customs-cleared basis. (Bloomberg)
Chinese banks’ lending fell 43.0% yoy to Rmb2.6tr in 1Q as the government winds down its stimulus and tries to cool a credit boom while keeping its recovery on track. The figures indicated the central bank's efforts to prevent runaway lending and restore financial discipline in China's state-owned banking industry might finally be taking hold, lessening the need to raise interest rates to curb inflation. The New Yuan Loans also moderated to Rmb510.7bn from Rmb700.1bn in February. (CNBC, Bloomberg)

China’s foreign-exchange reserves rose at a slower pace to US$2.447tr as at end- March. The currency holdings gained by about US$47.9bn in 1Q (+US$127bn in 4Q09). Market forecast it would increase to US$2.5tr. (Bloomberg)

Fitch Ratings is “very concerned” about the impact of violent protests on Thailand’s public finances and won’t rule out any action on the country’s debt rating, analyst Vincent Ho said. “We will have to look at the impact of the current political situation on the credit fundamentals of Thailand and then consider any rating action that we think is appropriate,” he said. (Bloomberg)

India’s industrial production growth exceeded 15.0% for a third month as demand for cars and televisions increased, adding to inflationary pressures that may prompt the central bank to raise interest rates this month. Output at factories, utilities and mines expanded 15.1% yoy in February (16.7% in Jan). That was less than the economists’ forecast for a 16.0% gain. (Bloomberg)

The World Bank believes that the East Asian region will have to start to withdraw fiscal and monetary stimulus sometime this year. But the bank said this can only be achieved when private sector investment becomes the region's growth driver. (Channel News Asia)

Indonesia’s economy may have expanded 5.5%-5.7% in 1Q 10, Anggito Abimanyu, head of the finance ministry’s fiscal policy agency, said. (Bloomberg)