Friday, June 11, 2010

20100611 1836 FCPO Weekly Chart Study.

Weekly Close: 2386, High: 2456, Low: 2379, Range: 77points
FCPO closed : 2386, changed : -88 points, volume : higher.
Bollinger band reading : downside biased.
MACD Histrogram : reversed lower, seller dominating.
Support : 2350, 2300, 2240 level.
Resistant : 2400, 2450, 2500 level.
Comment :
Double top slightly break down FCPO ended the week lower with increasing volume traded despite a better latest export data released. Weekly chart reading just started to turned into a downside biased reading but the selldown seem a little overdone that could trigger a pullback before continue to fall lower testing new support level. PS : Hope that this is not a false double top break down as the break is not significant.

20100611 1816 FCPO EOD Daily Chart Study.

FCPO closed : 2386, changed : -24 points, volume : higher.
Bollinger band reading : downside biased.
MACD Histrogram : continue lower, seller ruled.
Support : 2370, 2350, 2330 level.
Resistant : 2400, 2450, 2470 level.
Comment :
Seller turned aggressive on the second half session push price downward to closed near the low of the day with better volume transacted breaking crucial support level. Daily chart reading remained unchanged with a downside biased suggestion but however a pullback correction could take place soon as today down candle closed way below lower Bollinger band level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with quick cut loss and profit target.

20100611 1759 FKLI Weekly Chart Study.

Weekly Close: 1297, High: 1308.5, Low: 1272.
FKLI closed : 1297 changed : -2 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : continue lower, seller holding on.
Support : 1270, 1250, 1225 level.
Resistant : 1300, 1310, 1335 level.
Comment :
Deminishing volume FKLI closed marginally lower week on week after opened lower following buying activities lift price to recover near to last week close.
Weekly chart wise, reading continue to suggest a side way range bound market ahead with testing effort at support and resistant levels.

20100611 1734 FKLI EOD Daily Chart Study.

FKLI closed : 1297 changed : +2.5 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : continue higher, both buyer and seller battling.
Support : 1290, 1280, 1274 level.
Resistant : 1300, 1310, 1318 level
Comment :
Lower volume transaction FKLI closed near the low of the day after opened and traded higher followed by traders especially buyer closing position ahead of the weekend and FIFA World Cup kick off tonight. Daily chart reading recommending a side way range bound market to take place the in near term as the Bollinger band width continue to turn inwards.
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.

20100611 1426 Regional News.

Asia stocks rise for 4th day, euro steady
SINGAPORE, June 11 (Reuters) - Asian stocks rose for a fourth day on optimism that the world economic recovery was on track despite Europe's debt woes, while the euro was steady after a rally the previous day.
"Funds have started to lean towards risk-taking after all-out risk-reduction behaviour seen in mid- to late May, and domestic investors are following suit," said Tsuyoshi Segawa, an equity strategist at Mizuho Securities.

June 11 (Bloomberg)
European banking shares indicate a Greek debt default may be just a matter of time. Investors have already pushed down financial stocks enough to imply the “erosion” in book value that may result from losses tied to a sovereign debt restructuring, said Dirk Hoffmann-Becking, an analyst at Sanford C. Bernstein in London. A Bloomberg index of European financial firms dropped as much as 22 percent since April 15 to the lowest level since July.

“If Greece defaulted in the near future, the ramifications wouldn’t just be banks holding Greek debt, but also Spain and Portugal and Italian bonds -- and how do you value Armageddon?” said Gary Jenkins, head of credit research at Evolution Securities Ltd. in London. “The idea is to postpone reality. If it had happened in a disorderly manner in May, it would’ve been such a quick event that it would have been very difficult for authorities to control the reactions on Portugal and Spain.” Some analysts say the recent declines among European banks represent a buying opportunity on the grounds that a Greek default would be manageable and that Spain and Italy won’t have to restructure their debt. Nomura’s Peace said in a June 2 note that European bank shares are “attractive.”

20100611 1336 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1301.5, changed : +7 points, volume : high.
Bollinger band reading : side way upside biased.
MACD Histrogram : weakening, buyer in control.
Support : 1300, 1290, 1280 level.
Resistant : 1310, 1318, 1325 level
Comment :
Overnight Dow and Euro strong positive closed follow by major Asia regional gain lead FKLI to traded firmer with supportive volume. Hourly chart reading suggesting a correction side way upside biased market after price opened way above the upper Bollinger band level.

20100611 1244 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2416, changed : +6 points, volume : low.
Bollinger band reading : side way downside biased.
MACD Histrogram : stay firmer, seller still defending.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
Tight 12 points range market FCPO traded higher in light volume changed hand following not much movement of soy oil futures price. Hourly chart looks like market would test the middle Bollinger band immediate resistant level as the reading suggesting a side way range bound downside biased market.

20100611 1104 Global Economic News.

Indonesia: IMF forecasts 6% growth for Indonesia this year
The IMF forecast Indonesia’s economic growth will accelerate this year amid improving investment and said the central bank may need to adjust its monetary policy if price pressures rise. The fund also said after meetings in Jakarta with Indonesia’s central bank and other officials that recent capital outflows from Indonesia were likely to be temporary and it saw small downside risk from the euro zone debt woes. “We see growth accelerating to 6% and we think inflation will be contained below 5%,” Thomas Rumbaugh, the IMF’s division chief for Asia and Pacific, told reporters. (Starbiz)

Australia : Employers added 26,900 workers in May as a mining investment boom stokes hiring. The jobless rate fell to 5.2% from 5.4%. (Source: Bloomberg)

China: May exports rise 48.5%, property prices jump
China’s exports jumped the most in six years and property prices rose at a near-record pace, signs that the economy is withstanding the sovereign-debt crisis in Europe and remains at risk of overheating. Exports gained 48.5% in May 2010 from a year earlier, the customs bureau said, more than the 32% median estimate in a Bloomberg News survey of 32 economists. None expected such a big gain. Real-estate prices rose 12.4% across 70 cities, the statistics bureau said separately. (Bloomberg)

China : Property prices rise more-than-estimated 12.4% YoY in May compared with a record 12.8% YoY increase in April. The data series, covering 70 cities, began in 2005. The value of sales slid 25% MoM from the previous month. (Source: Bloomberg)

EU: Trichet Says ECB to keep buying bonds to fight crisis
Jean-Claude Trichet said the European Central Bank (ECB) will extend its offerings of unlimited cash and keep buying government bonds as it tries to ease tensions in money markets and fight the European debt crisis. The ECB is buying state debt and pumping unlimited funds into the banking system as part of a strategy by European policy makers to stop the euro region from breaking apart. (Bloomberg)

E.U : World Bank says some nations risk 'double-dip'. Some European nations may experience a second economic slowdown if the region fails to manage its debt crisis, threatening countries from Central Asia to Latin America, the World Bank said. "We're expecting that growth in the second quarter is also likely to be disappointing, quite possibly seeing negative growth in several European countries and a double dip in some of these economies," Andrew Burns, the World Bank's manager of global macroeconomics, said at a press briefing. (Source: Bloomberg)

US: Trade deficit widens as exports fall
The trade deficit in the US widened in April 2010 to the highest in more than a year as exports and imports both declined. The gap grew 0.6% to USD40.3bn, the most since December 2008, Commerce Department figures showed in Washington. (Bloomberg)

U.S : Jobless claims decreased last week to 456,000 as it fell by 3,000 in the week ended June 5. The number of people receiving unemployment insurance fell to the lowest level since 2008, while those getting extended payments climbed. (Source: Bloomberg)

20100611 1103 Malaysia Local News.

PM tables RM230bn 10th Malaysia Plan
The Government has allocated RM230bn for development expenditure under the 10th Malaysia Plan. The allocation will comprise 55% for the economic sector, 30% for the social sector, 10% for security sector and 5% for general administration. The gross national income per capita is targeted to increase to RM38,850, or USD12,140, in 2015. Growth will be led by the services. The Government will focus on efforts to develop nonphysical infrastructure, including human capital development such as skills development and strong innovation capabilities. The 10MP allocation for non-physical infrastructure will be increased to 40%, compared with 21.8% in the 9MP. (StarBiz)

MAS in, Nestle out of FBM KLCI
Malaysia Airlines will replace Nestle (M) in the FTSE Bursa Malaysia KL Composite Index following the semiannual review approved by the FTSE Bursa Malaysia Index Advisory Committee, Bursa Malaysia and FTSE Group said in a joint statement yesterday. Meanwhile, the FTSE Bursa Malaysia Hijrah Shariah Index will see the inclusion of Axiata Group, Malaysian Bulk Carriers, Bintulu Port Holdings and Kulim (M). The FTSE Bursa Malaysia Hijrah Shariah Index is a tradable index of 30 stocks to be used as the basis for international syariah compliant products. All constituent changes take effect at the start of business on 21 June. (StarBiz)
Also reviewed was the FTSE Bursa Malaysia Hijrah Syariah Index. The changes approved are the inclusions of Axiata Group, Malaysian Bulk Carriers, Bintulu Port Holdings and Kulim Malaysia and exclusions of Nestle (Malaysia), Star Publication Malaysia, IJM Plantations and Wah Seong. All constituent changes will take effect at the start of business on June 21, 2010, and the next review will take place on Dec 9, 2010. (Source: Bernama)

Boustead believed to be taking over Pharmaniaga
Speculation is rife that Boustead Holdings is acquiring Pharmaniaga following the suspension of trading in the two companies’ shares yesterday, pending a material announcement. However, it is not immediately known if Boustead is acquiring part or the whole of UEM Group Bhd’s 87% stake in Pharmaniaga. Trading in Boustead and Pharmaniaga shares was suspended from 4.56pm yesterday. Pharmaniaga added nine sen to RM5.10 while Boustead gained four sen to RM3.58 prior to their suspension. In a media advisory yesterday, Boustead said it would be signing an agreement with the UEM Group today, involving a major acquisition by the former. It gave no further details. (StarBiz)

Celcom and DiGi to collaborate
Two cellular rivals, Celcom Axiata and DiGi.Com, are coming together to work on a proposal to share infrastructure that could lead to cost savings and reduce duplication in the areas of network operations, transmission and site sharing for towers and radio access. This is the first time a collaboration of this scope is being explored by the players in Malaysia and perhaps regionally. Yesterday both parties inked a memorandum of understanding and a definitive agreement is expected to be hammered out before the year is out. The sharing is for existing and future infrastructure but both will not jointly bid for future spectrum. (StarBoz)

Genting Malaysia unit submits USD1m fee to bid for NY video lottery
Genting Malaysia's indirect unit Genting New York LLC has submitted a USD1m entry fee to the New York Lottery in a move to make a bid for the video lottery operations in the city. "This payment allows Genting NY to participate in the bidding process to develop and operate a Video Lottery Facility at Aqueduct Racetrack in the city of New York," the company said on Thursday, 10 June. Genting NY is evaluating the project and has until 29 June to decide if it wishes to formally submit a bid. The payment was made on 1 June. (Financial Daily)

London Biscuits' offer in TPC lapses
London Biscuits’ conditional mandatory takeover offer in TPC Plus has lapsed after it failed to secure over 50% of the latter’s shares upon the close of the offer period. London Biscuits had only secured an additional 13.88% of valid acceptances to its 33.11% stake it had already held in TPC Plus, totaling only 46.99% after the second closing date on Thursday, 10 June. "In view that the offer has lapsed, the offeror (London Biscuits) shall return all the TPC shares which it has received to the respective accepting holders within 14 days from the second closing date," London Biscuits said in a statement to Bursa Malaysia. London Biscuits had conditionally offered to acquire the remaining shares of 50 sen each in TPC Plus for 30 sen per share, it said. (Financial Daily)

PPB gets Bursa nod for placement, but with conditions
Petra Perdana (PPB) has obtained Bursa Malaysia Securities‘ approval for its proposed private placement of up to 29.76m shares, representing 10% of its paid-up capital, subject to conditions that include renewing a shareholder mandate to issue shares. (Financial Daily)

Naza Group : To study viability of building Malaysian plant with GM. The Naza Group and General Motors (GM) will study the viability of setting up a plant in Malaysia, as the American carmaker aims to expand in Southeast Asia. The companies exchanged letters of intent for the feasibility study and expect it to be done in 6 months. (Source: Business Times)

UEM Land : Eyes more land. According to MD/CEO Datuk Wan Abdullah Wan Ibrahim, UEM Land Holdings Bhd is looking at expanding its land bank in areas like the Klang Valley. They are looking for new revenue streams to supplement existing projects in Nusajaya. (Source: The Star)

Malaysia: Najib to halve Malaysia’s deficit under 5-year plan
Malaysia aims to almost halve its budget deficit in the next five years as the Government cuts subsidies, widens the tax base and reduces expenses under a plan to make the economy more competitive. The country plans to cut the budget shortfall to 2.8% of GDP in 2015 from a revised estimate of 5.3% this year, according to the 5- year plan unveiled by Najib in Kuala Lumpur. It earlier projected a 5.6% deficit for 2010. (Bloomberg)

Malaysia: April IPI hints at slower growth ahead
The Industrial Production Index (IPI) in April 2010 grew at a slower-than-expected pace, which can indicate that economic growth will also be slower for the rest of the year. IPI, which measures output from manufacturers, power producers and the mining industry, rose 10.1% in April, driven by the manufacturing sector. Economists expected it to grow by 12%. (BT)

20100611 0837 Soy Oil & Palm Oil News.

Argentina soy crop seen at record 55 mln T
BUENOS AIRES, June 10 (Reuters) - Argentina's 2009/10 soy output will reach a record 55.0 million tonnes due to favorable weather conditions, Buenos Aires Grains Exchange said on Thursday, raising its forecast from 54.8 million tonnes.
Argentina is the No. 3 global exporter of soybeans and the top supplier of soymeal and soyoil, but a drought brought output down to 32 million tonnes last season.

Soyoil futures finished a choppy, two-sided session mostly flat, unable to sustain earlier gains on weakness in soybeans and large domestic stocks, analysts said. July soyoil settled unchanged at 36.75 cents per pound.(Source: CME)

Malaysia May CPO Output 1.39 Mln Tons; Up 6% On Month -MPOB (Source: CME)
Malaysia's May crude palm oil output rose 6% on month to 1.39 million metric tons, the Malaysian Palm Oil Board said Thursday.  CPO output totaled 1.31 million tons in April.  MPOB said in its monthly report that CPO exports rose 6% to 1.36 million tons in May. The country exported 1.29 million tons in April.  Palm oil inventories totaled 1.56 million tons at the end of May, down 3.7% from 1.62 million tons in April.  


Palm unchanged as market waits to trade bullish data
KUALA LUMPUR, June 10 (Reuters) - Malaysian crude palm oil futures barely moved higher on Thursday despite higher crude oil and upbeat export data as market players waited for the afternoon session to trade on just released industry data.
"Everyone is anticipating lower stocks in May and the coming months hoping that it will be support the market in future," said a trader in Kuala Lumpur before the data released.  

Indonesia's SMART ups palm planting despite green campaign
JAKARTA, June 9 (Reuters) - Indonesian palm oil producer PT SMART  said on Wednesday it expanded its plantations by about four percent in the first quarter of 2010, despite an enviromental campaign against it that led Unilever and Nestle to stop buying its palm oil.
SMART has 134,765 hectares of palm oil plantations in Indonesia's Kalimantan and Sumatra, of which 4,970 hectares were added in the first quarter this year, the company said.  

China buyers cancel soy cargoes on poor margins-CNGOIC
BEIJING, June 10 (Reuters) - Buyers in China, the world's largest soy importer, have cancelled and rolled over South American cargoes after many overbooked imports, squeezing crushing margins into the red.
Some traders do not expect many more cancellations, although excessive soy supply could last until August.

Spat with Argentina leads China to U.S. soyoil
CHICAGO, June 9 (Reuters) - A halt in Argentine soybean oil shipments to China amid an ongoing trade dispute prompted the first major sale of U.S. soyoil to China in more than a year this week, but the potential for further U.S. sales remains unclear, traders and analysts said.
Traders welcomed news late on Wednesday that the U.S. Agriculture Department will temporarily issue phytosanitary certificates for sales to China to spur trade.

Malaysia May palm stocks at 8-mth low, prices to rise
KUALA LUMPUR, June 10 (Reuters) - Malaysia's palm oil stocks dropped to an eighth-month low in May as foreign and local demand outpaced a recovery in production, data from an industry regulator showed on Thursday.
The Malaysian Palm Oil Board said stocks in the world's No.2 palm oil producer fell 3.71 percent to 1.56 million tonnes, lower than market expectations for a 0.6 percent drop.   

20100611 0832 Regional News.

June 10 (Bloomberg) -
- Agricultural Bank of China Ltd. received approval in Hong Kong for an initial public offering, clearing the way to what may be the world’s biggest first-time share sale, two people familiar with the matter said. The listing committee of the Hong Kong exchange gave in-principle approval to the company’s IPO application, according to the people, who declined to be identified because it hasn’t been publicly announced. The China Securities Regulatory Commission yesterday gave its nod to the Shanghai part of the share sale. A price range has yet to be announced by the Beijing-based company.