Monday, June 7, 2010

20100607 1820 FCPO EOD Daily Chart Study.

FCPO closed : 2449, changed : -25 points, volume : higher.
Bollinger band reading : side way range bound downside biased.
MACD Histrogram : turned weaker, seller returned.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
Increasing volume FCPO slide lower after market opened at the low but managed to recovered some of the day losses after soy oil and crude oil futures price rebounded. Daily chart reading call for a side way range bound downside biased market testing previous strong 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.

20100607 1748 FKLI EOD Daily Chart Study.

FKLI closed : 1279, changed : -20 point, volume : higher.
Bollinger band reading : side way downside biased.
MACD Histrogram : reversed lower, seller increase exposure.
Support : 1274, 1270, 1265 level.
Resistant : 1280, 1290, 1300 level
Comment :
Black Monday doji bar candle FKLI ended weaker with improved volume changed hand following major Asia market negative development. Daily chart reading shows that market is likely to trade side way downside biased testing lower support level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/breakdown with larger cut loss and profit target.

20100607 1330 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1279, changed : -20 points, volume : high.
Bollinger band reading : downside biased.
MACD Histrogram : recovering, seller lock in partial profit.
Support : 1274, 1270, 1265 level.
Resistant : 1280, 1290, 1300 level.
Comment :
Severe drop in the US Dow Jones market negative sentiment spilled over to major Asia market to that traded badly leaded FKLI to trade 20 points lower for the first session in high volume changed hand. Hourly chart wise, market opened bandly below the plotted upward trendline and lower Bollinger band level and is currently having pullback correction within a downside biased market testing lower support level.

20100607 1245 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2450, changed : -24 points, volume : moderate.
Bollinger band reading : downside biased.
MACD Histrogram : getting lower, seller returned as buyer cover position.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
Better volume FCPO traded lower following a weaker soy oil and crude oil futures price development plus discouraging crude palm oil import news for India. Hourly chart shows that market is having correction after opened gap down severely and the reading suggesting a downside biased potential market for the near term.

20100607 1230 World Economic News.

U.S : Employment gain in May trails forecast as American companies hired fewer workers and some dropped out of the labor force. Private payrolls rose by 41,000, Labor Department figures showed, trailing the 180,000 gain forecast by economists. Including government workers, employment rose by 431,000, boosted by a jump in hiring of temporary census workers. The jobless rate fell to 9.7% from 9.9%. (Source: Bloomberg)

U.S : Duration of unemployment rises to record 34.4 weeks in May from 33 weeks the prior month and 16.5 weeks in December 2007, when the recession began. The number of unemployed has almost doubled to 15 million since the start of worst slump since the 1930s. (Source: Bloomberg)

China : Zhou says policy makers to observe economy after PMI slowed. ?There are many factors? that might have attributed to the decline in last month?s manufacturing, Zhou Xiaochuan, the governor of the People?s Bank of China, told reporters. ?The impact of what happened in Europe might not have been that fast,? Zhou said while attending a meeting by the Group of 20 nations? finance ministers and central bankers. (Source: Bloomberg)

Crude Oil : Extends slump on Europe debt concerns, U.S. jobs data. Oil fell 4.2% on June 4 after the Labor Department said that payrolls rose by 431,000 in May. Economists projected a 536,000 gain, according to the median forecast in a Bloomberg News survey. Prices extended declines as the euro dropped against the dollar on concern that Europe?s sovereign-debt crisis will spread into the financial system. The contract fell USD 3.10 to USD 71.51/bbl on June 4, the biggest one-day drop since Feb. 4. (Source: Bloomberg)

20100607 1228 Malaysia Local News.

Astro : Privatisation to succeed. The general offer for Astro All Asia Networks reached 99.3% acceptances from all parties, which exceeds the level needed for compulsory acquisition. The offerors will proceed to extend a final offer to compulsorily acquire the remaining shares of Astro at the same price of RM4.30 per share. Astro has already been excluded as a component of the KLCI 30 index and replaced by Hong Leong Financial Group, effective on 26th May. (Source: Bursa Malaysia)

F&N : Plans for RM1b cash to be made known. Fraser & Neave Holdings Bhd (F&N) will soon announce plans for its potential cash pile of RM1b arising from disposals of certain assets as the company enters its next stage of development. F&N CEO, Tan Ang Men mentioned they were on the lookout for potential acquisition targets. (Source: The Edge)

Property : Overwhelming response to latest condo launch at Desa ParkCity. Almost 90% of the non-bumiputera units at the latest condominium project, The Westside One in Desa ParkCity have been snapped up at an average of RM600psf. (Source: The Edge)

Proton : VW?s turn to snub Proton. The latest proposed tie-up between Proton Holdings Bhd and Volkswagen AG (VW) has collapsed as the latter has ?other priorities?. There was speculation that the two parties could not reach an agreement as VW intended to assemble its low-priced models at Proton?s plants, and that would most likely cannibalise the latter?s sales. According to managing director Datuk Syed Zainal Abidin Tahir, Proton was also discussing with Mitsubishi and Renault for collaboration in engines and products. (Source: The Edge)

20100607 1013 Soy Oil News.

Soyoil futures backpedaled with the rest of the soy complex, with speculative selling featured in a broad sell-off in commodities. July soyoil settled 0.88 cent, or 2.33%, lower at 36.78 cents per pound(CME).

India Edible Oil Prices Steady; High Stocks, Low Demand Weighs
Indian edible oil prices were little changed for the week as high stocks erased gains stemming from firm overseas markets.

Indian edible oil prices mostly track overseas trends as the country imports nearly half its annual vegetable oil requirement. Palm prices rose 1.6% in Malaysia this week, but traders said a correction was imminent due to a likely increase in end-May palm oil inventory levels.

According to the latest count, edible oil stocks in major Indian ports as of May 1 were 575,000 tons, while another 650,000 tons have been contracted for imports. Also, higher imports mean 14.5 million tons of oilseeds in India are awaiting crushing.

India's total vegetable oil imports are projected to rise to 9 million tons in the oil marketing year through October, up from a record 8.66 million tons in 2008-09.

"Weak soymeal export demand and expectations of a normal monsoon will weigh on prices in the near-term," an Indore-based trader said.

Meanwhile, government data released Friday showed India's summer oilseed crop fell to 83,700 hectares as of June 4, down from 127,000 hectares a year earlier.

Planting of soybean, the main oilseed sown in the summer season, begins in June. The crop is harvested in October.

On Friday, the price of crude palm oil fell to INR37,700 a ton from INR37,900 last week, while refined soyoil was unchanged at INR42,800 a ton.

The price of refined, bleached and deodorized palm olein was INR40,300 a ton, up from INR40,200 the previous week.