Friday, May 21, 2010

20100521 1817 FCPO Weekly Chart Study.

FCPO closed : 2491, changed : +35 points, volume : higher.
Bollinger band reading : side way downside biased.
MACD Histrogram : nearly unchange, seller still in with small exposure.
Support : 2450, 2400, 2350 level.
Resistant : 2500, 2530, 2580 level.
Comment :
FCPO managed to recovered some of last week losses to end higher with improved volume transacted.
Weekly chart reading suggesting a side way range bound downside biased market testing support and resistant level.

20100521 1809 FCPO EOD Daily Chart Study.

FCPO closed : 2491, changed : +15 points, volume : lower.
Bollinger band reading : side way downside biased.
MACD Histrogram : recovering, seller reducing exposure.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2521, 2550 level.
Comment :
FCPO continue to trade firmer today in lesser volume changed hand. Daily chart reading still suggeting a side way range bound downside biased market with some testing at resistant level to identify the market underlying strength. On the other hand the near support level potential candle stick island reversal signal still remained valid for time being.
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.

20100521 1748 FKLI Weekly Chart Study.

FKLI closed : 1286.5 changed : -51.5 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : continue lower, seller taking small exposure
Support : 1270, 1250, 1225 level.
Resistant : 1300, 1310, 1335 level.
Comment :
A wide range down bar weekly candle FKLI ended negatively with increased volume traded. Weekly chart reading turned from a upside biased into a side way range bound market development as market break and closed below the plotted upward trendline.

20100521 1730 FKLI EOD Daily Chart Study.

FKLI closed : 1286.5, changed : -17 point, volume : higher.
Bollinger band reading : downside biased.
MACD Histrogram : continue lower, seller ruled.
Support : 1280, 1274, 1270 level.
Resistant : 1290, 1300, 1318 level.
Comment :
Deep sea diving mood FKLI closed lower with increased volume changed hand but nevertheless managed to do 1.5 point premium compare to cash market. Dialy chart continue to have negative downside biased reading with very likely potential pullback correction or technical rebound as price just plunged way too over below lower Bollinger band level before continue to head 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.

20100521 1247 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1285.5, changed : -18 point, volume : high.
Bollinger band reading : downside biased.
MACD Histrogram : reversed upward, seller taking profit.
Support : 1280, 1274, 1270 level.
Resistant : 1290, 1300, 1318 level.
Comment :
Overnight Dow and Euro zone market negative closed contributed to a much lower below crucial support level FKLI opening and continue to dive deeper before profit taking came in to sweep price to recover up slightly with ultra high volume transacted. Hourly chart shows that market is still having correction after open way lower within a downside biased market.

201000521 1234 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2491, changed : +15 points, volume : ,low.
Bollinger band reading : upside biased.
MACD Histrogram : rising higher, short covering with buyer present.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2521, 2550 level.
Comment :
Lower volume transacted FCPO traded firmer this morning as soy oil seems refuse to go lower. Hourly chart reading turned from the side way range bound into an upside biased potential market with possible temporary downward correction to take place soon as price surge through above upper Bollinger band and near resistant level.

20100521 1039 Malaysia Corporate News.

The on-going internal probe by Sime Darby to find out how it made staggering losses has now been expanded to cover all its six business divisions. Chairman Tun Musa Hitam said the management and external professionals were now putting the conglomerate under the microscope to weed out any weaknesses before coming up with any short-term and long term restructuring efforts.
  • "Work is in progress at Sime Darby. We are being transparent and very serious about it. Let the process of democracy work. I would like to assure the ordinary people, who are majority shareholders of Sime Darby, that nothing will be swept under the carpet. The timeline for this probe is as soon as possible, he added. On calls for him to step down, Musa said he and the entire board would do so only after going through due processs and then found guilty. (NST)
This move is positive in the long-term as this exercise will help identify and correct weaknesses in the group but may be negative in the short-term as it will lead to uncertainities over potential provisions in other divisions and future strategy of the group.

The Minority Shareholder Watchdog Group (MSWG) has raised questions over Sime Darby's nearly RM1bn loss from cost overruns in the group's energy and utilities division. MSWG CEO Rita Benoy Bushon said that the group's size and significance to the country's reputation locally and abroad made it absolutely necessary that a detailed and full disclosure of the goings-on in the energy and utilities unit be made public.
  • She said there were questions over whether risks were appropriately addressed and whether the watchdog group's queries were appropriately addressed. She added that there were questions over why provisions were not made at the appropriate time when there was doubt of recovery and if independent directors could play a bigger role and devote more time to oversee the governance of the company. 
  • Rita said another question was whether the group should stay more focused on the core business in order for there to be better management as “it is common knowledge that many investors buy Sime Darby shares not for its hotchpotch of businesses but mainly for its plantations business, which in 2009 contributed to 70% of the group's net profits. (Starbiz)
PM Datuk Seri Najib Razak said that Sime Darby should first find out why it has incurred the losses before any issue on responsibility was to be raised. "We need to investigate cause of the losses first. We can't do anything about the question of responsibility at this point in time," Najib added. (BT)

AirAsia launched its inaugural flight on the Bangalore-Kuala Lumpur sector yesterday. The sector is expected to have a load factor of almost 85% in the first few weeks. Ms. Kathleen Tan, Regional Head of Commercial, AirAsia said, “The daily service is expected to cater to significant traffic including business and leisure travelers as well as students to and from the tech-hub in southern India. In addition to this, the service is also expected to cater to medical tourism in Bangalore.” (Press release)
Bangalore is the sixth destination for AirAsia in India after Trivandrum, Kolkata, Chennai, Kochi, and Tiruchirappali. Additionally, Mumbai is served by AirAsia X. AirAsia will launch Hyderabad flights in July, while AirAsia X will fly to Delhi in August.

AirAsia will continue with plans for a dual listing in Thailand but will do so once the political environment there shows sign of recovery. "Plans are still afoot. Crisis comes and goes," said its group chief executive officer Datuk Seri Tony Fernandes. He said sales in Thailand slowed down in the last two months due to the uncertainties in that country and expects to have a tough time with its operations there up to July. AirAsia has yet to set a date for the listing. (BT)

The telecom regulator has come up with a draft spectrum plan in whci it propoes to refarm several blocks of frequency including those in the 850MHz, 900MHz and 2.5GHz bands. Those in the know say that the 900MHz and 2.5GHz spectra may be allocated for 4G sservices sometime next year, but it is not clear what the plan is for the 850MHz.
  • DiGi chairman Sigve Brekke sid the company is hoping to get more spectra and is still in talks with the regulator on it. "From a fairness point, have a regulated industry where all players have equal frequency alloteed in equal frequency bands so that there is level playing field. 
  • In the draft document, the regulator said that "due to greater demand for broadband services, several spectrum bands had been identified to be re-farmed in the near future. It cited the 450MHz, 790-960MHz, 1710-1885MHz and 2500-2690 MHz frequency bands as potential candidates for re-farming. (Starbiz)
MISC has sold its MT Bunga Siantan, a 15,999 dead-weight tonnage single-hull chemical tanker to PT Waruna Nusa Sentana for US$3.2m. MISC said that the sale is in line with its asset management strategy to phase out single hulled vessels and maintain a modern fleet of chemical tankers for its chemical business unit. (BT)

Allianz Malaysia, which will raise about RM611m from its proposed rights issue of 192.3m irredeemable convertible preference shares (ICPS), has fixed the issue price at RM3.18. The insurer told Bursa Malaysia these would be issued to shareholders on the basis of 125 new ICPS for every 100 shares held. (StarBiz)

RHB Capital has appointed Datuk Saw Choo Boon and Datuk Teo Chiang Liang independent and non-executive directors. (StarBiz)

The Asian Development Bank (ADB) has become the first supranational to list its medium-term notes (MTNs) issued under its RM3.8bn MTN programme on the Malaysian market. The MTN programme was established on 2006 and has a tenure of 15 years. Under the programme, two tranches of MTNs were listed on Wednesday and valued at RM1bn, specifically RM500m each for a 5- and 10-year term respectively. (BT, Bernama)

Petra Perdana is expected to continue attracting attention ahead of its AGM to be convened next month. The conclusion of its EGM held in Feb did not spell an end to the issues surrounding the company. A tussle is still believed to be ongoing.
  • In the latest move, Petra Energy's wholly-owned subsidiary Petra Resources Sdn Bhd filed a writ of summons against seven persons it did not identify for breach of fiduciary duties and breach of trust. Former executive chairman and director Tengku Datuk Ibrahim Petra said it was really up to the shareholders what they wished to do in the light of recent development. “Personally, I think that shareholders may want to consider whether it's in the best interests of Petra Perdana that those involved in the suit continue to work in the company.” 
  • Meanwhile, Petra Perdana when contacted said it had no information at this moment that the suit involved the company and/or its current employees. “In addition, as it is prima facie a legal case, it would be inappropriate for us to comment at the moment,” it added. (Star)
Khazanah Nasional said it will continue to sell its stake in non-core assets by the year-end but it will be done in an orderly manner. "Yes, there will be further divestments this year," said Khazanah Nasional Malaysia MD Tan Sri Azman Mokhtar. Khazanah has stakes in more than 50 companies, including Tenaga Nasional and Telekom Malaysia. (BT)

20100521 1036 Malaysian Economic News.

The cabinet will finalise the sectors for the National Key Economic Areas (NKEA) by end- May and kicksoff with the laboratories for the various sectors in June, said Minister in the Prime Minister’s Department Datuk Seri Idris Jala. The cabinet would likely give the green light for sectors involving oil and gas, financial services, wholesale and retail, oil palm and tourism. (Financial Daily)

Governor Tan Sri Dr Zeti Akhtar Aziz said Bank Negara Malaysia (BNM) is in the final stage of coming out with instruments to facilitate cross-border management of liquidity by Islamic financial institutions. Zeti said BNM was also expected to issue new banking licences (2 for Islamic banking and 5 for conventional banking) next month. (Bernama)

Strong positive signals are beginning to be received from Middle-East countries to invest in Malaysia, said PM Datuk Seri Najib Tun Razak. "I have got more investment signals from the Middle-East that I will announce from time to time," he noted. (Bernama)

Malaysia slipped two positions to No. 30 with a score of 4.71 in the Global Enabling Trade Report 2010 released by the World Economic Forum. Singapore (No. 1) and Hong Kong continued to occupy the top two rankings. The Enabling Trade Index covering 125 economies worldwide measures institutions, policies and services facilitating the free flow goods over borders and to destination. (Financial Daily)

The government plans to increase the levy on foreign workers according to the job sectors from early next year in a bid to reduce the country's dependence on foreign labour. DPM Tan Sri Muhyiddin Yassin said the levy would defer according to the foreign workers' skills level and the number of workers in a sector. (Bernama)

20100521 1034 Global Economic News.

US initial jobless claims rose by 25,000 to 471,000 in the week ended May 15, exceeding the median forecast of 440,000 and the highest level in a month. Some companies are trimming payrolls to boost or maintain profits, even as employers have added jobs each month this year. The four-week moving average, a less volatile measure than the weekly figures, climbed to 453,500 last week from 450,500, today’s report showed. (Bloomberg)

US leading economic indicators unexpectedly declined 0.1% in April (1.3% in Mar), a sign that the economic expansion may slow in the second half of the year. It was the first decline for the index in a year. Economists had expected a 0.2% increase. The drop in index reflects a decline in building permits and shortening delivery times.
  • Unemployment claims also weighed on the index. Consumer confidence was also a negative and, given the turmoil in Europe and losses in the U.S. stock market, may also be a negative for May. But the Conference Board is upbeat saying the recovery will continue though it may slow through the summer. (Bloomberg)
Manufacturing activity shows steady strong growth in May according to the Philadelphia Fed's general business conditions index which came in at 21.4, a reading well above zero to indicate significant month-to-month growth and a reading very near April's 20.2 to indicate a similar pace of growth. Economists had expected the index to rose to 21.5. (Bloomberg)

Wall Street reform cleared a crucial test vote on Thursday, all but assuring final Senate passage of the most sweeping regulatory overhaul since the New Deal. The Senate voted 60 to 40 to meet the threshold to overcome filibusters and send the measure to a final vote within days.
  • "Today, Democrats and a handful of Republicans in the Senate have voted to break the filibuster and allow the final debate and vote on financial reform -- reform that will protect consumers, protect our economy and hold Wall Street accountable," President Obama said Thursday. (CNNMoney)
US Congress previewed a grab-bag bill of spending and tax measures that are likely to be a flash point in the debate over the federal debt. The legislation would extend a host of tax breaks, give continued relief to the unemployed, delay cuts to doctors' Medicare reimbursements, provide support for job growth and fund disaster relief, among other things. Congress' budget scorekeepers haven't finished estimating the total cost of the bill and the amount of revenue it would raise through pay-for measures. But the payfors are not likely to cover even half of the total cost, which could top US$150bn. (CNNMoney)

Japan’s GDP growth rose an annualized 4.9% in 1Q10 (4.2% in 4Q09), less than the 5.5% market forecast. Export gained 1.2%. Consumer spending contributed only 17% to the quarterly growth rate. Business spending gained 1% in 1Q (1.3% in 4Q09). Housing investment climbed 0.3 percent, the first increase in five quarters. (Bloomberg)

Taiwan’s GDP rose 13.27% yoy in 1Q10, the most since 1978 and more than the median estimate for a 11% gain, the statistics bureau said. The statistics bureau raised its 2010 GDP growth projection to 6.14% from 4.72%, and its annual inflation forecast to 1.4% from 1.27%. The Central Bank of the Republic of China (Taiwan) has kept its benchmark interest rate at 1.25% since March last year to help extract the island from its deepest recession on record. (Bloomberg)

Dubai World, the state-owned holding company, reached an agreement with creditors to restructure US$23.5bn of liabilities as it seeks to resolve a debt crisis that roiled global markets last year. Dubai World will pay US$4.4bn of the loans in five years and the remaining US$10bn over eight years, the company said in an e-mailed statement today. Dubai’s government, which pledged US$1.5bn in March for the restructuring, will convert US$8.9bn of its loans to Dubai World into equity. (Bloomberg)

India’s central bank signaled it may raise interest rates in a measured manner as Europe’s debt crisis outweighs inflation concerns. Global economic conditions have changed in the past six weeks and a “cautious pace is the best way to go and that is the stance,” Subir Gokarn, the deputy governor in charge of monetary policy at the Reserve Bank of India told reporters in Thiruvananthapuram, India, yesterday. (Bloomberg)

European consumer confidence declined to -17.5 in May (-15.0 in Apr), the most in 17 months on concerns austerity measures to fight the debt crisis will hurt economic growth. (Bloomberg)

UK retail sales rose 0.3% mom in April (0.5% in Mar), marking the third month incarese as the economic recovery encouraged consumers to spend more at clothing shops and department stores. Economists predicted a 0.2% gain. Excluding fuel, sales rose 0.1%. (Bloomberg)

Taiwan’s export orders rose 43.7% yoy in March (36.3% in Feb), faster than economists expected as the global economic recovery boosted demand for computers and mobile phones. Economists had projected for a 40.1% advance. (Bloomberg)

Singapore’s government said the economy expanded faster than initially estimated last quarter and raised its forecast for export growth, judging that Asian demand will make up for any slowing of European sales. Gross domestic product grew an annualized 38.6% qoq in 1Q, compared with an April estimate of 32.1% and economists’ forecast for a 33.4% increase.
  • On a yoy basis, the economy grew 15.5% in 1Q (vs. April estimate of 13.1% expansion and market consensus for a 13.7% gain). 
  • Singapore’s non-oil domestic exports will probably gain 15.0-17.0% in 2010, from a previous projection of as much as 12.0%, the trade promotion agency said. (Bloomberg)
Deputy Managing Director at the Monetary Authority of Singapore, Ong Chong Tee, indicated the government will use administrative rather than broad measures to curb runaway property prices. “It is much better not to use monetary policy, which is a blunt instrument, but to use much more targeted, preventive, administrative or even fiscal measures to address this,” he noted. (Financial Daily)

Indonesia’s budget deficit
in 2011 may be 1.7% of GDP, outgoing Finance Minister Sri Mulyani Indrawati said. Inflation next year may reach 4.9-5.3%. Economic growth may be 6.2-6.4%. (Bloomberg)

India’s food inflation accelerated 16.5% yoy in the week ended 8 May (16.4% in the previous week) as the finance ministry said pressure on prices from a shortage of farm products will recede this year. Food prices may decline as sufficient monsoon rains this year boosts rice, wheat and sugar output,
  • Finance Minister Pranab Mukherjee said last week. Even so, rising consumer demand may stoke inflation, the central bank said yesterday, while signaling a “cautious” approach to raising interest rates given the risks posed by Europe. (Bloomberg)