Wednesday, May 19, 2010

20100519 1811 FCPO EOD Daily Chart Study.

FCPO closed : 2435, changed : -10 points, volume : lower.
Bollinger band reading : downside biased.
MACD Histrogram : continue lower, seller in control.
Support : 2400, 2370, 2340 level.
Resistant : 2450, 2470, 2500 level.
Comment :
FCPO ended the day on lower ground with improved volume transacted in unison with weaker soy and crude oil price developement. Dialy chart wise, near crucial support price still having downside biased reading with correction still taking place.
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.

20100519 1734 FKLI EOD Daily Chart Study.

FKLI closed : 1304, changed : -26.5 points, volume : higher.
Bollinger band reading : downside biased.
MACD Histrogram : continue lower, seller won the battle for now.
Support : 1300, 1290, 1280 level.
Resistant :1318, 1325, 1330 level.
Comment :
Slam Dunk! NBA final! Heavy injury FKLI fall severely today in ultra high volume transaction as cash market drop negatively following the news of PPB Group Wilmar downgrade due to tax fraud claim and follow by other heavy weight plantation related counters like IOICORP and KLK. Today daily chart wide body range black bar candle looks scary with other indication reading suggesting a downside biased market but today already near crucial support heavy fall could potentially trigger a pullback correction before continue heading south.
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.

20100519 1325 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1322, changed : -8.5 points, volume : lower.
Bollinger band reading : downside biased.
MACD Histrogram : up and down, seller market
Support : 1318, 1310, 1300 level.
Resistant : 1325, 1330, 1337 level.
Comment :
Overight DJIA negative closed plus weaker major Asia market development lead FKLI to opened and traded lower with high volume changed hand and managed to do 1 point premium compare to cash market. Hourly chart showing a downside biased market with temporary correction taking place after market opened gap lower.

201000519 1301 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2435, changed : -7 points, volume : low.
Bollinger band reading : side way downside biased.
MACD Histrogram : continue lower, seller still in.
Support : 2400, 2370, 2340 level.
Resistant : 2450, 2470, 2500 level.
Comment :
Quiet volume FCPO traded lower within a 14 points tight range market. Hourly chart reading suggesting a side way range bound downside biased market.

20100519 1006 Malaysia Corporate News.

EON Capital’s board of directors will meet on or before May 21 to consider several matters concerning Hong Leong Bank’s offer to acquire the entire assets of the company. The company told Bursa Malaysia that it will discuss the independent financial adviser’s opinion on the acquisition and finalisation of the terms of the proposed distribution. EONCap said an announcement will be released upon conclusion of the board meeting. (BT)

Telekom Malaysia will not need to raise funds to meet its capex requirements of about RM2bn this year, its CEO said." Our balance sheet is very strong, we have enough funds to (finance) both the investment in HSBB and the business as usual.
  • Dividends would still remain,"group CEO Datuk Zamzamzairani Isa said.Half of the RM2bn it needs would go towards further developing the country's HSBB service, known as "UniFi". To date, it has wired up about 370,000 premises, Zamzamzairani said. The HSBB service, which is now available only to home users and SMEs in certain areas, is expected to include bigger enterprises and the government on July 1. 
  • "That's our next milestone. We're ramping up to make sure we meet the expectations of the market." The group has been adding over 40,000 subscribers a month this year compared with under 30,000 a month before November last year, he said.(BT)
Celcom Axiata aims to transform local bumiputera graduates from public universities and polytechnics into skillful competitive entrepreneurs, providing industrial training and handson knowledge and skill, said its CEO Datuk Seri Shazalli Ramly. (Financial Daily)

Berjaya Corp, which will launch the country's first sports betting in 3Q, will use a system from a reputable supplier with a proven track record in Asia. "In other words, the system will have user-friendly features that are familiar to the Asian players," Ascot Sport senior GM Ooi Lee Meng said. "They will be distributed in strategic locations in major cities or towns with large urban conurbation. We will commence with about 220 outlets," he added. (BT)

UK-based investment fund, Utilico Emerging Market Ltd, could be owning a sizeable amount of Malaysia Airports Holdings (MAHB) shares, based on information posted on its website. As at end-Feb 2010, as much as 11.5% of its gross assets were invested in MAHB. A MAHB spokesman said he was aware that Utilico had shares in the company. However, he was unaware of the percentage involved. (BT)

1MDB, a government-owned strategic development company, has managed to meet one of its main targets, which is to secure RM5bn of FDI. To date, 1MDB has convinced foreign investors to pledge some RM55bn although the money has yet to be invested in Malaysia.
  • 1MDB's main objective is to bring in FDI and direct the investment into projects with high multiplier effects, essentially those which can generate a lot of spin-off economic activities. 
  • Last week, the Qatar Investment Authority (QIA) signed an MOU with 1MDB to explore investment opportunities in Malaysia. QIA has proposed to invest RM16bn in sectors like energy, real estate and commodities. 1MDB has already raised some RM5bn from the sale of 30-year medium-term notes in August last year. (BT)
HSBC Bank Malaysia has appointed Shahin Jammal as director of strategic finance advisory, global banking. Shahin will be responsible for providing advice and analysis as well as promoting a strategic financing dialogue for all global banking clients. He will also work towards connecting with all product groups in HSBC in order to deliver holistic financing solutions. (BT)

Scomi Engineering has sold its machine shop business to OMS Holdings Pte Ltd, a wholly-owned subsidiary of Sumitomo Corp Asia Pte Ltd, for RM327m. The transaction is targeted for completion by end-June. Scomi had earlier announced its plans to exit the business to focus on its public transportation business and to seize the growth opportunities in Brazil, India, China, the Gulf Countries and Indonesia. (Bernama)

Faber Group hopes its revenue from overseas will reach RM1bn this year, by expanding on its non-concession income base. The group will continue to focus on its businesses in the UAE and India to expand its non-concession income base, especially in the areas of bio-medical engineering services and facilities engineering services. MD Adnan Mohammad said, "We have set a KPI of 12-15% increase in revenue this year, pushed by both integrated facilities management and property development activities.” (BT)

MLabs Systems has signed a deal to buy all of Grand Inizio Sdn Bhd, a builder of biodiesel plants, for RM79.7m cash and shares to further diversify its revenue. MLabs is also proposing to undertake a private placement exercise to raise funds for working capital. (BT)

China-based Sino Hua-An International is mulling to set up a coke manufacturing plant in Malaysia, to increase its capacity and tap into the rising demand for metallurgical coke in Southeast Asia. "However, it is at a preliminary stage and we are now conducting a viability study," MD Liu Guodong said.
  • Sino Hua-An's intention to have an overseas factory could also be the result of the Chinese government's cap on steel production to control oversupply. On the outlook of steel prices in 2010, Liu said it will depend on the cost and demand for coke and iron ore. (BT)
Masteel has proposed a one-for-two rights issue of up to 107m five-year warrants at an indicative issue price of 20 sen each. The proposed warrants were expected to raise about RM21m cash, which would be used for working capital. The exercise is expected to be completed by 3Q. (Financial Daily)

PacificMas hopes to conclude the sale of its insurance arm by Oct 10 to meet the deadline imposed by the regulator on parent Oversea-Chinese Banking Corporation (OCBC), says its top executive. In Apr 08, Singapore's OCBC announced the takeover of PacificMas, but on a condition that it could not own two insurance companies in Malaysia. Since OCBC already owned 87% of Great Eastern in Malaysia, it decided to sell the insurance business of PacificMas, and retain Great Eastern general insurance licence held under Overseas Assurance Corporation Bhd (OACM).
  • PacificMas is currently in talks with two suitors, namely Great Eastern Holdings Bhd and Canadian based Fairfax Asia Ltd to dispose of its insurance unit, The Pacific Insurance (PI). 
  • Following the PI sale, PacificMas will be left with two core businesses - asset management and leasing. PacificMas is confident that the disposal of PIB would not affect the group's earnings as the growth in both asset management and leasing businesses will make up any loss of income. (BT)

20100519 1003 Global Economic News.

1Malaysia Development Bhd (1MDB) will lead the development of most of the government land, particularly in the Klang Valley, with a view to ensuring returns to the government are maximised, said sources. 1MDB set up with RM5bn raised from the capital markets.
  • It will partner foreign sovereign wealth funds such as the Qatar Investment Auhtority (QIA) in drawing up the masterplan and putting up the initial infrastructure for the property development. Considering the cost of borrowing is 5.75% for its 30-year papar, it is targeting an internal rate of return of 12-15% for the projects it undertakes. 
  • To date, 1MDB has convinced foreign investors to pledge some US$17bn (RM55bn) although the money has yet to be invested in Malaysia, said source. (Financial Daily, BT)
A joint venture between 1Malaysia Development Bhd (1MDB) and PetroSaudi International Ltd (PSI) has invested the bulk of its US$2.5bn (RM8.1bn) fund in energy projects all over the world, such as Venezula and Europe. The source declined to identify these projects. (BT)

Western Digital Corp will invest US$1.2bn (RM3.86bn) in Malaysia over the next five years, Prime Minister’s Official said. It will expand its manufacturing and research and development facilities in the country. (Malaysian Reserve)

20100519 1001 Global Economic News.

US new home construction skyrocketed 40.9% yoy or 5.8% mom to a seasonallyadjusted annual rate of 672,000 in April. Economists were expecting housing starts to jump to 655,000. Applications for building permits, a gauge of future construction activity, sank unexpectedly. Permits fell to a seasonally adjusted annual rate of 606,000 in April, down 11.5% mom from a revised 685,000 in March. Economists were expecting 680,000 permits. (CNNMoney)

US wholesale prices unexpectedly dropped 0.1% mom in April (+0.7% in Mar), the second decrease in three months, signaling the absence of inflation pressure. Excluding food and fuel, so-called core prices climbed 0.2% mom in April (+0.1% in Mar). Market had expected producer prices to rise 0.1% and core producer prices to rise by 0.1%. (Bloomberg)

The US Securities and Exchange Commission filed proposed rules under which exchanges would halt trading in individual stocks that swing more than 10%. The circuit breakers, proposed jointly with the Financial Industry Regulatory Authority, would be triggered in all markets by gains or declines over five minutes in Standard & Poor’s 500 Index companies, according to an e-mailed statement. During the pilot program that goes until Dec. 10, the agency will also examine risks to investors created by market orders, and consider steps to deter stub quotes. (Bloomberg)

Germany prohibited naked short- selling and speculating on European government bonds with credit-default swaps in an effort to calm the region’s financial markets, sparking anxiety among investors about increasing government regulation. The ban, which took effect at midnight and lasts until March 31, 2011, also applies to the shares of 10 banks and insurers, German financial regulator BaFin said late yesterday in an e-mailed statement. (Bloomberg)

German investor confidence fell in May after Europe’s debt crisis deepened, stoking concern about the euro’s future and rattling financial markets. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations dropped to 45.8 from 53 in April. Economists expected a slide to 47. (Bloomberg)

European finance ministers said Greece’s debt crisis won’t unleash a continent-wide austerity drive with the potential to tip the economy back into a recession and further undercut the euro. Only high-deficit countries including Spain and Portugal will be ordered to make additional deficit cuts, while budget policies will remain untouched in better-off nations such as Germany and Finland. (Bloomberg)

Japan’s consumer sentiment rose to 42 in April (40.9 in Mar), the highest level since October 2007 as the benefits of an export-fueled recovery continued to spread to households. This reading adds to signs that improvements in employment and paychecks are supporting households. (Bloomberg)

Thailand’s government said it is willing to reopen talks on holding an early election to help avoid bloodshed after six days of gun battles in Bangkok that have killed at least 36 people. “We are willing to renegotiate the election,” Korbsak Sabhavasu, the government’s chief negotiator and a former deputy prime minister said in a phone interview today. Thai protest leader Nattawut Saikuar said today his group is willing to accept an offer by the Senate to mediate. (Bloomberg)

Asian countries may benefit from capital controls to help limit inflows that pose a risk to their economies and financial systems, according to the Asian Development Bank. The bank’s Asia Capital Markets Monitor suggested “temporary and targeted” restraints on incoming investment in addition to encouraging outflows. ADB estimates that foreign funds hold about 20% of stocks by value in Asia’s emerging markets. They owned 22.3% of local-currency government bonds in Indonesia, 13.3% in Malaysia and 3.9% in Thailand as of March 31, the report said. (Bloomberg)

European inflation accelerated 1.5% yoy in April (1.4% in Mar), marking the 16-month high as the economy gathered strength. This came in line with the market consensus (1.5%). (Bloomberg)

Exports from the euro area rose a seasonally adjusted 7.5% mom in March, the biggest increase since January 08. Imports rose 10.3%, resulting in a narrow trade surplus of EUR600m in March (EUR3.4bn in Feb). (Bloomberg)

Thailand’s Tourism Minister Chumpol Silapa-Archa said tourist arrivals have slumped 50% after anti-government protests in Bangkok turned violent. Arrivals at Bangkok’s Suvarnabhumi airport have fallen to about 20,000 per day from 30,000 per day, he added. (Bloomberg)

Thailand's anti-government protests, which show no sign of ending, has caused the GDP to go down more than 0.5% so far this year, said Finance Ministry official Ekniti Nitithanprapas. The ministry expects this year's growth to be 4-5% but that forecast will be reviewed next month. Ekniti said when the protest started, it was expected it would only impact the tourism industry. However, he said the unrest is now affecting several sectors including investment by both Thais and foreigners. (Bloomberg)

The Bank of Thailand (BoT) maintained its 2010 economic growth forecast at between 4.3% and 5.8%, saying the deadly political unrest of the past few days is still within its worst-case scenario. “We may adjust the forecast in our next review, depending on the real economic figures,” said Assistant Governor Paiboon Kittisrikangwan. The Monetary Policy Committee will meet on 2 Jun to assess the economy before making a decision on interest rates. (Bloomberg)

Vietnam is targeting annual economic growth of 7.5-8.5% over the 2011-2015 period, according to a development strategy drafted by the Ministry of Planning and Investment. It aims to increase per capita income to about US$2,100 in 2015, a 70% gain from 2010. (Bloomberg)

Crude oil tumbled to a seven-month low in New York as the euro fell against the dollar on concern European nations will struggle to meet austerity requirements. Crude oil for June delivery fell 67 cents, or 1%, to US$69.41 a barrel, the lowest settlement since 29 Sept. The contract rose as much as 3.5% to US$72.52. (Bloomberg)

Bank of England Governor Mervyn King downplayed the threat of inflation after consumer prices jumped at the fastest annual pace since 2008, saying the surge is “temporary” and masks slack in the British economy. Inflation accelerated to 3.7% in April (3.4 in Mar). Economists had projected it would increase 3.5% in April. King expressed that there is “substantial” spare capacity in the economy, though policy makers are “very conscious” of price risks. (Bloomberg)