Friday, April 16, 2010

20100416 1847 FCPO Weekly Chart Study.

FCPO closed : 2518, changed : -76 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : getting lower, seller increase exposure.
Support : 2500, 2450, 2400 level.
Resistant : 2530, 2580, 2630 level.
Comment :
FCPO ended the week lower in quiet volume participation. Weekly chart still favour a side way range bound market in the near term.

20100416 1838 FCPO EOD Daily Chart Study.

FCPO closed : 2518, changed : +8 points, volume : lower.
Bollinger band reading : side way range bound little downside biased.
MACD Histrogram : getting lower, seller trying their luck.
Support : 2500, 2470, 2450 level.
Resistant : 2521, 2550, 2570 level.
Comment :
Another boring day FCPO traded slightly higher in diminishing volume. Daily chart continue to shows side way range bound downside biased market 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.

20100416 1804 FKLI Weekly Chart Study.

FKLI closed : 1336, changed : -4 points, volume : higher.
Bollinger band reading : bullish biased.
MACD Histrogram : weaken, buyer reducing exposure.
Support : 1335, 1310, 1300 level.
Resistant : 1350, 1360, 1375 level.
Comment :
The second doji weekly candle bat ended marginally lower in improved volume changed hand. Weekly chart suggesting a side way range bound downward correction market with still upside biased. Strong support is seen at the middle Bollinger band level which is also the upward trend line support level.

20100416 1742 FKLI EOD Daily Chart Study.

FKLI closed : 1336, changed : -5 points, volume : lower.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : getting lower, seller taking chances.
Support : 1330, 1325, 1318 level.
Resistant : 1337, 1345, 1350 level.
Comment :
Following major Asia market negative development, FKLI ended lower within 14 points range market just right below the support upward trend line level. Daily chart reading still shows a side way range bound upside biased with possible another support level at the middle Bollinger band level. Should price break the middle Bolliger band level, market could possibly testing lower support level at the lower Bollinger band .
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.

20100416 1445 FKLI Mid Day Hourly Chart Study.

FKLI last looked : 1334, changed : -7 points, volume : low.
Bollinger band reading : downside biased.
MACD Histrogram : getting lower, seller still in.
Support : 1330, 1325, 1318 level.
Resistant : 1337, 1345, 1350 level.
Comment :
Another gap up selldown day in FKLI that traded lower in lesser volume as seller seems gathered confident to stay put. Hourly chart reading suggesting a further downside potential market with possible pullback if price traded way outside the lower Bollinger band level.

20100416 1432 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2512, changed : +2 points, volume : low.
Bollinger band reading : side way range bound little downside biased.
MACD Histrogram : getting lower, seller taking small exposure.
Support : 2500, 2470, 2450 level.
Resistant : 2521, 2550, 2570 level.
Comment :
Quiet FCPO traded 2 points higher with even lesser volume change hand. Hourly chart continue to record side way range bound downside biased reading(I'm sorry, even I myself got bored with the reading).

20100416 1009 Malaysia Corporate News.

Genting Singapore’s Universal Studios Singapore (USS) has announced that its Battlestar Galactica roller coaster is in the process of a 'complete ride inspection and review'. “The vehicle has been partially dismantled and components have been analysed, including an X-ray of its parts,” it added. 'Police will reinstate the licence for USS to operate the ride once the Conformity Assessment Body (CAB) has recertified the ride to be safe for use,” a spokesman for Singapore Police Force (SPF) said. (SPH)
The extent of inspection works appears to be taking longer than our initial expectations and this is a negative development. We note that the Battlestar Galactica roller coaster is one of USS’s key attractions and an extended closure could affect USS’s overall visitorship.

Tenaga has extended the contract of its CEO, Dato' Sri Che Khalib, for one more year until 30 June 2011. Meanwhile, it also appointed Ir. Azman bin Mohd as the company's ED and COO effective 15 April 2010. (Reuters)
We view Dato' Sri Che Khalib's contract renewal positively as this should clear earlier succession concerns. Dato' Sri has been instrumental in driving many positive changes in Tenaga over the past few years. Having said that, we note that his service tenure extension is for one year, which is a slight departure from his previous two 3-year contracts.

The government will table the feed-in-tariffs (FIT) for renewable energy power generation bill in parliament this October, Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui said. The Attorney General's Chambers was in the midst of drafting the legislation, he said. "Our major intiative will be the introduction of the FIT in Malaysia. Once that is done, we will need the EU's technology and expertise to modernise and expand our renewable energy sector, especially in biomass and solar energy," he said. (Bernama)

Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui is upset that the National Green Technology Centre has been slow in processing requests under the RM1.5bn green technology loan scheme. He has now given the agency another month to do so. The loan is meant to help companies which are producers and users of green technologies. It was established under Budget 2010. (BT)

India plans to hold an auction of ultra-high-speed 4G spectrum soon after completion of 3G access now underway, a report said. The sale process for 4G, which will provide highspeed Internet connections, will begin as soon as operators roll out their 3G networks this year, Communications Minister A. Raja said. "I do not want any delay in 4G services. We should be with the rest of the world in 4G," Raja said. Raja said he expected the successful telecom bidders for 3G frequency would start launching their new networks within a few weeks of receiving the spectrum when it is allocated in Sept. (Economic Times of india)

Maybulk is considering the acquisition of second-hand dry bulk carriers this year, executive chairman Teo Joo Kim said. The company, however, did not plan to get new tankers this year due to the high operational cost and low profit, he said. "We are not aggressively expanding this year. MBC has a positive cash position of RM460m, and so it will not be a problem for us to acquire any vessel this year," he added. (Bernama)

Kencana Petroleum has secured a 1+1 RM33m service contract for the provision of an offshore support vessel off the coast of Vietnam to Petronas Carigali. (BMSB)

KWAP has emerged as a substantial shareholder in Kencana Petroleum with a 5.61% stake. (BMSB)

Media Prima is optimistic of a better performance this year in line with the economic recovery. Group MD Datuk Amrin Awaluddin said its newly acquired niche-market leaders in outdoor advertising would position the group strongly in the media landscape. It also expects its content creation arm, Primeworks Studios, to contribute more significantly towards the group's revenue in coming years. On TV3 Network Limited Ghana, Amrin said, Media Prima intended to divest its stake in the broadcasting station. (Bernama)

YTL Corp has completed the purchase of the 617ha prime Japanese resort Niseko Village for about RM205m and the group plans to invest more in Japan. Group MD Tan Sri Francis Yeoh said the weakening yen was making Japanese properties attractive investments."We will make this village Aspen and St Moritz of the East," he added. YTL has secured a fiveyear fixed term loan of 7bn yen (RM238m) from the Bank of Tokyo-Mitsubishi to finance the acquisition. Yeoh said that Niseko Village will also be injected into Starhill REIT. (BT)

UMW Toyota Motor expects to sell more than 32,400 units of the Toyota Vios this year prior with the launch of a new model which has been enhanced and improved. Its president Kuah Kock Heng said the new Toyota Vios reinforced the product concept through refreshment in the design to provide updated features on the look and appeal on both the interior and exterior. The cost of the new Toyota Vios was from RM71,990 to RM92,000, depending on the variant. (Bernama)

Proton Exora, Malaysia's first MPV, has been nominated for the prestigious advertising and marketing effectiveness award organised by the New York Festivals. (BT)

Mitsubishi Motors Malaysia is aiming to double its market share of the full-size SUV segment from the 18.5% in 2009. CEO Keizo Ono said the target was achievable given its extensive sales network, comprehensive after-sales service and resumption of the company’s two-year free maintenance program that was halted in 2007. (Financial Daily)

Petronas has stopped supplying gasoline to Iran since mid-March as the threat of US sanctions on oil firms with supply ties to the country looms large. Iran is the world’s fifth biggest crude oil exporter but US sanctions mean it has suffered from lack of investment in refineries, forcing it to import some 40% of its gasoline needs. (Reuters)

Tenggara Oil will be de-listed on 19 Apr. Its proposed restructuring scheme has lapsed and as such, the company has failed to implement its regularisation plan within the extended timeframe. (BMSB)

Lion Diversified Holdings has sold its entire stake of 3% in Mineral Resources Ltd compromising of 4.98m shares for some AU$37.1m (RM111.3m). The disposal was done via a placement on January 20 and through the open market yesterday. The proceeds from the sale will be used as working capital. (BT)

Warisan TC Holdings has signed a deal to assemble Chinese light trucks in Malaysia. Its subsidiary, Kereta Komersil Seladang (M), will be the exclusive manufacturer and provider of after sales service. The deal was struck with Changsha Foton Vehicle Technology Co Ltd, a fully owned unit of Beiqi Foton Motor Co Ltd, which produces Forland commercial vehicle. (BT)

Ho Hup Construction Co’s decision to team up with Malton came about because the PN17 company is in no shape to carry out the proposed RM2.5bn project on its own, says a former top official. “The joint development agreement (JDA) was the best offer available and I believe the deal will help the company move forward,” former COO Datuk Woo Thin Choy said. (Starbiz)

20100416 0953 Malaysian Economic News.

The government is considering committing the market opening of 27 services subsectors (which were liberalised in Apr 09) to free trade agreements like the Asean Framework Agreement of Services and World Trade Organisation (WTO), the Dewan Rakyat was told. Deputy International Trade and Industry Minister Datuk Mukhriz Tun Mahathir said this step was aimed at providing more confidence to foreign investors and the commitment was also an assurance to the business community. At this stage, investments in the services sector involve projects such as a theme park worth RM1.1bn and tourism services totalling RM17.3bn. (Bernama)

The European Union-Malaysia Chamber of Commerce (EUMCCI) will embark on several initiatives under a three-year project to enhance business dialogue and cooperation in Malaysia's services sector. The three-year project, led by EUMCCI, will be funded largely by a grant from the European Commission with a total budget of €715,000 (about RM3.2m) and the project will focus on four areas -- logistics, energy, environment and green technology, financial services, and information and communications technology (ICT). For this year, the emphasis will be on green technology. (Bernama)

The general insurance and takaful sector is expected to experience premium growth of between 9.0% and 11.0% this year (6.9% in 2009 and 9.3% in 2008), according to ISM Insurance Services Malaysia Bhd. This was in line with the global economic recovery and the increase in domestic vehicle sales, its chief executive officer Carl Rajendram added. (Bernama)

The country can create a competitive market environment for some high-value food products to cater for domestic and foreign markets, said Agriculture and Agro-based Industries Deputy Minister Datuk Rohani Abdul Karim.
  • “We are indeed a global food trader as we export to 185 countries and import food items from 130 countries. The food trade has increased from RM17.8bn in 2000 to RM45.7bn in 2008, with 12.5% annual growth,” she added. 
  • The ministry was drawing up the new National Agro-Food Policy for the 2011-2020 period. The policy seeks to ensure food security, enhance global competition, increase farmers' income, ensure agro-food sector's sustainable growth and boost food production to meet growing population's demand. (Bernama)
The Malaysian Malay Chamber of Commerce (DPMM) Perlis Chapter has urged the government to stop the Variation of Price (VOP) implementation which it says is oppressive on contractors. President Fauzi Hassan said that although VOP was implemented following a decrease in steel prices, the cost for other materials and labour continued to increase. In Perlis, Class B and C contractors were currently projected to incur losses of RM150,00-200,00 per project and there was 3 projects had been terminated due to VOP implementation. (Bernama)

Malaysia Healthcare Travel Council (MHTC) Chief Executive Officer Datuk Ooi Say Chuan said more Malaysian hospitals should get themselves accredited with the relevant professional bodies and take measures to improve their capacity to enable them to join in the country's medical tourism initiative. It targets 30.0% increase in the number of medical tourist arrivals for 2010. (Bernama)

The government will table the feed-in-tariffs (FIT) for renewable energy power generation bill in Parliament this October, Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui said. Hopefully, the process can be completed by December or January, he added. (Bernama)

The Malaysian Institute of Economic Research (MIER) has revised its gross domestic product growth forecast for the year from 3.7% to 5.2%, based on improving consumer and business confidence, signs of global economic recovery as well as higher commodity prices. It maintained its 5.0% GDP growth rate for 2011.
  • Overall consumer price inflation was expected to grow by 2.2% this year. 
  • The overnight policy rate (OPR) is expected to settle at 2.70% by end-2010 as core inflation had been raising faster than overall inflation. Firmer economic expansion will further lift the OPR to 3.25% in 2011. (Bernama)
The Malaysian Institute of Economic Research (MIER)’s Consumer Sentiment Index and Business Conditions Index were higher by 4.6 pt to 114.2 and 5.2 pt to 124.0 respectively in 1Q10. All sector indices recorded modest gains in 1Q, with the exception of Retail Trade Index and CEO Confidence Index. (Benama, Financial Daily)

The Malaysian Institute of Economic Research (MIER) Executive Director Dr Zakariah Abdul Rashid said the ringgit, considered still undervalued, will possibly touch RM3.00 per dollar by year-end. He said the strengthening of the ringgit, is in line with the appreciation of other regional currencies, such as the yuan against the greenback. (Bernama)

Corporate bond default in 2010 is expected to remain low at 0.6%, with a worst-case scenario of 1.7%, RAM Rating Services Bhd Manager for Structured Finance Ratings, Peter Su Chan Chia said. Last year, three issuers defaulted on five debt securities with a rated value of RM394m, translating into an annual default rate of 1.6%. (Bernama)

Malaysia hopes its trade with the United States will soon return to the high levels of previous years after being badly affected by the global economic crisis. Seeking to woo more investments, Prime Minister Datuk Seri Najib Tun Razak drew the attention of the United States-Asean Business Council (USABC) to recent reforms in Malaysia's economic policies to transit from a middle-income to high-income growth. (Bernama)

The European Union (EU) is ready for talks on the Free Trade Agreement (FTA) with Malaysia, says Ambassador and Head of Delegation of the European Union (EU) to Malaysia, Vincent Piket. He said the EU wished to negotiate on all products and sectors, including those which are sensitive within it like agriculture, fisheries along with certain segments of the electronics sector and automotives. (Bernama)

Malaysia has big potential to be a choice investment hub for investors from the United Arab Emirates (UAE) in their pursuit to seek new investment opportunities, particularly in oil and gas, healthcare and construction materials. International Trade and Industry Minister Datuk Seri Mustapa Mohamed says Malaysian companies have the expertise and advantage in these sectors and were prepared to collaborate with the UAE investors. (Bernama)

The New Economic Model (NEM) needs more concrete measures to boost the attractiveness of Malaysia as an investment destination, says the Malaysian Institute of Economic Research (MIER). MIER executive director Dr Zakariah Abdul Rashid hopes the second part of the new economic blueprint will consider including the human development index (HDI). The index, which comes under the United Nations Development Programme, assesses Malaysia as high in ranking at number 66 out of the 182 countries in terms of life expectancy, literacy and gross domestic product per capita. The model, he said, should not restrict focus on income growth but stress performance in education and health. (NST)

20100416 0945 Global Economic News.

US initial jobless claims rose by 24,000 in the week ended 10 Apr to a seasonally adjusted 484k (460k in the previous week), the highest level since late February. Economists were predicting claims would fall to 440k. The number of people continuing to draw unemployment benefits moved higher to 4.64m, from 4.57m, and above the 4.58m economists expected. (CNBC, CNN Money)

US industrial production rose 0.1% in March (0.3% in Feb), held back by a drop in utilities output as heating demand fell. It was far less than economists had expected for a 0.7% gain. Manufacturing output rose 0.9% while utilities dropped 6.4% in March. For the first quarter, industrial production rose by 7.8% yoy, the largest quarterly jump since 4Q99. Capacity utilization, a closely watched measure of slack in the economy, rose to 73.2% from 73.0%, which was in line with market consensus (73.3%). (CNBC, Bloomberg)

Foreign investors bought a net US$47.1bn of long-term US securities in February (US$15.0bn in Jan), with private buying outpacing purchases by official institutions. Overall inflows, which include short-term securities such as Treasury bills, also improved in February, with foreigners buying a net US$9.0bn after selling a net US$10.2bn in the prior month. (CNBC)

The Philadelphia Federal Reserve Bank said its business activity index rose to 20.2 in April from the March reading of 18.9. Economists had expected a reading of 20.0. Any reading above zero indicates expansion in the region's manufacturing. (CNBC)

The US Federal Reserve has made clear it will not monetize federal budget deficits by printing money, said Dallas Federal Reserve Bank President Richard Fisher. The Fed is finished with its job of providing liquidity to markets during the financial crisis and is debating how best to withdraw reserves from the financial system. "Our balance sheet is way too large. We have assets on our balance sheet which will create problems unless we figure out how to manage them," he said. (CNBC)

US foreclosure activity jumped 19.0% to a monthly record in March, driving first-quarter actions up 7.0% qoq and 16.0% yoy to a record of more than 932,000 properties. Banks took back more than 257,000 properties in the quarter, a record high, putting repossessions on pace to shatter last year's record of more than 918,000 properties. More than 3.0m households are likely to get a foreclosure notice in 2010, topping 2009's record 2.8m, RealtyTrac forecasts. (CNBC)

The National Association of Home Builders/Wells Fargo index of builder confidence increased to 19 in April (15 in Mar), exceeding economists’ estimates of 16. It was due to buyers rushing to qualify for an Obama administration cash incentive by signing deals ahead of a 30 Apr deadline, sending the builders’ gauge of current home sales to the highest level in two years. Readings less than 50 mean more respondents said conditions were poor. (Bloomberg)

Federal Reserve President Jeffrey Lacker said the US economic recovery has “turned the corner” and stronger growth will eventually lead to higher interest rates. “I am convinced rates have to go up. I am just not convinced they have to go up this month. I am looking for a time when growth is strong enough and well enough established. We are getting there but we are not there yet in my mind,” Lacker said. (Bloomberg)

Federal Reserve Bank of Atlanta President Dennis Lockhart said low interest rates are still needed to nurture an economic recovery that remains vulnerable to setbacks. “There is risk associated with starting a process of tightening too soon,” Lockhart said. (Bloomberg)

St. Louis Federal Reserve Bank President James Bullard said that the Fed's oftrepeated "extended period" of "exceptionally low" interest rates will depend entirely on how the economy unfolds. A faster than expected recovery would justify the Fed raising rates sooner, but if the economy goes more slowly than expected and inflation stays low, then the Fed could delay tightening. (Xinhua)

Federal Reserve Chairman Bernanke said China undervalues the yuan to promote exports, and that a more flexible currency would help the economy keep inflation under control. “Most economies agree that their currency is undervalued and has been used to promote a more export-oriented economy,” Bernanke said during the testimony to the Joint Economic Committee of Congress. (Malaysia Reserve)

Australian consumers’ inflation expectations rose to 4.1% in April (3.2% in Mar), marking the highest level in 18 months. This makes it more likely that the central bank will continue its world-leading round of interest-rate increases. (Bloomberg)

The Bank of Japan (BoJ) raised its economic assessment in seven of the country’s nine areas as the export-led recovery begins to gain momentum even as deflation persists. All local economies “had picked up, although there remained differences in the pace and extent of the recovery,” the central bank said. (Bloomberg)

China’s economic growth accelerated 11.9% yoy in 1Q10 (10.7% in 4Q09), the fastest pace in almost three years, highlighting overheating risks that may prompt the government to scrap the yuan’s peg to the dollar. It was slightly above the economists forecast for a 11.7% yoy gain. Investment contributed 6.9% pt to growth, consumption accounted for 6.2 pt and net exports deducted 1.2 pt. China may post more trade deficits in the first half after the first shortfall in six years in March, the commerce ministry said. (Bloomberg)

China’s consumer prices rose 2.4% yoy in March (2.7% in Feb). Economists’ median estimate was 2.6%. Industrial production climbed 18.1% yoy in March (12.8% in Feb), which came in line with the market consensus (18.2%). Retail sales increased 18.0% yoy in March (22.1% in Feb), matched the median estimates (18.0%). (Bloomberg)

Clashes between the Thai army and anti-government protesters are undermining confidence and growth in the economy, Finance Minister Korn Chatikavanij said. Tourism may be “decimated” by the unrest, and economic growth may be shaved by 1.0-2.0% pt, even without taking into account the impact on consumer confidence, Korn noted.
  • “Unless we put an end to this and do it as peacefully as we can in the next few days, next few weeks, I think there will be a significant impact on prospects for Thailand. The Thai baht may also be affected when financial markets reopen today after a three-day New Year holiday, but I would expect that the long-term trend of the Thai baht should be maintained,” Korn said. (Bloomberg)
India’s inflation rate held at 9.90% in March (9.89% in Feb), a 17-month high, increasing pressure on the central bank to raise borrowing costs next week. Economists had projected for a 10.37% increase in March. (Bloomberg)

South Korea’s major department stores sales advanced 4.6% yoy in March (15.2% in Feb), marking the 13th straight month rise, driven by demand for furniture and home appliances. Discount-store sales rose 1.6% (30.8% in Feb). (Bloomberg)

China’s cabinet raised minimum mortgage rates and down payment ratios for some home purchases, saying “more forceful” steps are needed to cool speculation after property prices rose at a record pace in March. Down payments for second homes must be at least 50%, up from 40%, and interest rates can’t be lower than 110% of benchmark rates, the State Council said. Banks should also raise down payment ratios and rates for third homes “by a broad margin.” Down payments for first homes bigger than 90 square meters can’t be lower than 30%. (Bloomberg)

Singapore retail sales increased 4.8% yoy in February (2.1% in Jan). Excluding motor vehicles, sales rose 20.1%. However, on a month-on-month basis, retail sales fell 5.5% in February (+5.5% in Jan). Economists had projected it would increase 2.0% yoy in February. (Channel News Asia, Bloomberg)

Indonesia’s President Susilo Bambang Yudhoyono has said they will continue to improve its investment climate as the country strives to attract private sector participation to jointly develop its infrastructure to boosts its economic growth in the next 5 years. To meet the demands, the World Bank estimates that Indonesia needs US$50bn a year (about 10% of its GDP). Currently, Indonesia is only able to set aside 4 percent of its GDP for infrastructure spending. (Channel News Asia)