Wednesday, June 16, 2010

20100616 1816 FCPO EOD Daily Chart Study.

FCPO closed : 2380, changed : +14 points, volume : higher.
Bollinger band reading : downside biased.
MACD Histrogram : continue lower, seller in control.
Support : 2370, 2350, 2330 level.
Resistant : 2400, 2450, 2470 level.
Comment :
FCPO managed to register a higher closed with improving volume transacted but however daily chart shows a continue lower closed due to the 3rd month switching effect. Outlook still showing a downside biased market testing lower support level with possible pullback correction.
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.

20100616 1746 FKLI EOD Daily Chart.

FKLI closed : 1309 changed : +13 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : reversed higher, buyer nerve to win seems stronger.
Support : 1300, 1290, 1280 level.
Resistant : 1310, 1318, 1325 level
Comment :
Profit taking on the second half session and cash market last minute closed suddenly off the high press price to closed of the high but still managed to record higher closed today in supporting volume doing 6 points premium. Daily chart reading still shows a side way range bound market development and the outlook will turn bullish should price continue to trade higher in the coming days.
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.

20100616 1401 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1314 changed : +18 points, volume : high.
Bollinger band reading : upside biased.
MACD Histrogram : continue higher, buyer taking charge.
Support : 1310, 1300, 1290 level.
Resistant : 1318, 1325, 1330 level
Comment :
Market recovered strongly in sustaining volume after overnight Dow Jones closed firmer. Hourly chart shows that market opened gap up and continue to surge higher in weakening volume and the reading suggesting a upside biased market with possible pullback correction effect take place in the near term.

20100616 1342 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2381, changed : +15 points, volume : moderate.
Bollinger band reading : correction downside biased.
MACD Histrogram : reversed upward, seller lock in profit.
Support : 2370, 2350, 2330 level.
Resistant : 2400, 2450, 2470 level.
Comment :
Overnight rally and continue higher soy oil futures price seems to have less effect on that FCPO trade little higher for Sep 2010 contract in encouraging volume(but continue traded lower for continuous month that closed 2391 yesterday). Hourly chart shows that market is having an upward correction within a downside biased market reading.

20100616 1126 Global Economic News.

Indonesia: Economy may expand as much as 6.4%
Indonesia’s economy may grow 6.1% to 6.4% next year, supported by domestic consumption and investment, Finance Minister Agus Martowardojo said. “We hope growth can be supported by household consumption that stays strong, the improving investment climate and the increase in export activities,” Martowardojo said (Bloomberg)

China: Bank regulator sees growing real estate risks
China’s banking regulator said it sees growing credit risks in the nation’s real-estate industry and warned of increasing pressure from non-performing loans. Risks associated with home mortgages are growing and a “chain effect” may reappear in real-estate development loans, the China Banking Regulatory Commission said (Bloomberg)

UK: Inflation slows for first time in three months
UK inflation slowed in May for the first time in three months as lower costs of items from food to transport eased price pressures in the economy. Consumer prices rose 3.4% from a year earlier, compared with 3.7% in April, the Office for National Statistics said in London. Economists predicted 3.5%, according to the median of 30 forecasts in a Bloomberg News survey. Inflation has now exceeded the government’s 3% upper limit for three months. (Bloomberg)

EU: Exports decline, adding to signs of slowdown
European exports declined in April, adding to signs a Euro-region recovery may be losing steam. Exports from the economy of the 16 nations using the euro fell a seasonally adjusted 2.4% from March, when they rose 9.8%, the European Union’s statistics office said. The trade surplus was EUR1.4bn (USD1.7bn) in April and imports dropped 3.5% from March. Euro-area payrolls were unchanged in the first quarter from the previous three months, when they decreased 0.2%, a separate report showed. (Bloomberg)

Greece: Cut to junk by Moody’s on ‘substantial’ risks
Greece’s credit rating was cut to non-investment grade by Moody’s Investors Service, threatening to further undermine demand for the nation’s assets as it struggles to rein in the euro region’s second-biggest deficit. In making the four-step downgrade to Ba1 from A3, Moody’s cited “substantial” risks to economic growth from the austerity measures tied to a EUR110bn (USD134.5bn) aid package from the European Union and the International Monetary Fund. (Bloomberg) US:

Manufacturing is sustaining recovery
Manufacturing is leading the US economic rebound, helping protect the recovery from a slowdown in housing following the expiration of a government tax credit, reports indicated. Factories in the region covered by Federal Reserve Bank of New York grew at a faster pace in June, signaling they are weathering the turmoil caused by the European debt crisis, according to the bank’s Empire State index. (Bloomberg)

US: Fed sells USD1.15bn of term deposits in auction
The Federal Reserve said it sold USD1.15bn in deposits in the first test of a credit- tightening tool it may use to drain a near-record amount of cash from the banking system. The Fed offered USD1bn for 14 days through its Term Deposit Facility and received bids worth USD6.14bn, the central bank said in a statement. The successful banks will deposit money with the Fed from 17 June to 1 July 2010, and receive interest of 0.27%. Banks currently receive 0.25% in interest on their excess reserves. (Bloomberg)

US: Demand for US assets increases more than forecast
Global demand for long-term US financial assets rose more than forecast in April as investors in the UK, China and Japan added to their holdings of Treasuries, a government report showed. Net buying of long-term equities, notes and bonds totaled USD83bn in April, compared with net purchases of a record USD140.5bn in March, Treasury Department data showed. Including short-term securities such as stock swaps, foreigners bought a net USD15 bn, compared with net buying of USD26bn the previous month. (Bloomberg)

June 15 (Bloomberg) -- Credit investors are pricing in almost 35 percent chance that BP Plc will default within five years as it tangles with the Obama administration over cleanup costs and claims for the biggest oil spill in U.S. history. The rising risk implied by credit-default swaps is up from 7 percent a month ago, according to the International Swaps and Derivatives Association’s standard model. BP swaps climbed 68 basis points today to a record close of 506 basis points, CMA DataVision prices show. Investors are demanding 8 percentage points more in yield to own BP debt due next year rather than Treasuries.

20100616 1123 Malaysia Corporate News.

Bank Negara names new deputy governor
Bank Negara announced yesterday the appointment of Datuk Muhammad Ibrahim as deputy governor for three years effective today. Muhammad joined the central bank in 1984. He has served in the areas of bank regulation and supervision, strategic planning, payment systems, insurance, offshore banking and treasury and financial markets. His previous professional posts included as managing director of Danamodal Nasional, commissioner of the Securities Commission and council member of Malaysian Institute of Accountants. Bank Negara also announced the appointment of Datuk Ooi Sang Kuang as special adviser for one year following the completion of his eight-year term as deputy governor. The central bank names Jessica Chew Cheng Lian as assistant governor for regulation sector. These appointments also take effect today. (Starbiz)

Power plant upgrades in the works
The Energy Commission will soon call for bids to upgrade existing power plants in Peninsular Malaysia for use from 2015 onwards. "Malaysia's power consumption increases by 3% every year. By 2015, we'll need 800 megawatts (MW) more power and by 2017, a further 1,000MW," said Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui. (BT)

Water tariff hikes sought
The National Water Services Commission has received several requests from state governments to raise water tariffs, said Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui. However, he declined to name the states. "I'll be forwarding their requests for Cabinet consideration at an appropriate time," he told Business Times. He concurred that water tariffs are too low considering the scarcity of new water catchments and costly treatment to produce safe drinking water. (BT)

SunREIT’s yield may touch 7.5%
Sunway REIT Management SB (SunREIT), which is on an investor roadshow currently, has told institutional investors that its dividend yield range would be between 6.8% and 7.5%. A source familiar with the matter said the dividend yield was not fixed as yet, but the REIT manager was able to provide the institutional investors a range that it was confident of achieving, based on the track record and forecast net profits of the properties injected into the REIT. SunREIT had also earmarked a dividend yield of 6.86% for its cornerstone investors, the source said. SunREIT’s cornerstone investors are the Government of Singapore Investment Corp Pte Ltd (GIC), the Employees Provident Fund (EPF), Permodalan Nasional (PNB) and Great Eastern Assurance (Malaysia), which have a collective 14% in REIT. (FinancialDaily)

Indonesian telco ups stake in Scicom
PT Telekomunikasi Indonesia International is believed to have upped its interest in Scicom (MSC) to 29.3%, making it the largest shareholder in the business process outsourcing (BPO) outfit. Yesterday, a total of 30m shares in four blocks and representing about 11.2% of the company’s total share base were crossed off market for RM18.9m, or an average of 63 sen a share. (FinancialDaily)

Fortis keeping options on Parkway open
India's Fortis Healthcare said it was keeping its options open on Malaysian sovereign fund Khazanah Nasional Bhd's offer for Parkway, while sources said the Indian firm had hired Macquarie and Religare Capital to raise funds for a possible takeover battle. Fortis, controlled by Indian billionaire brothers Malvinder and Shivinder Singh, is also in talks to hire RBS to help raise funds, said two sources with knowledge of the matter. (BT)

IJM Construction wins RM350m job
IJM Corp said its unit IJM Construction SB has won a RM349.98m contract from Jambatan Kedua SB to build part of the second Penang bridge. Package 3B involves building a new dual 2-lane carriageway of 5.7 km with a cloverleaf interchange and four bridges, IJM said in a statement to Bursa Malaysia. Construction will start form June 28 2010 and work will take 31 months. (BT)

PLUS acquires Teras Teknologi
PLUS Expressways has bought 100% of Teras Teknologi SB, a toll systems and equipment provider, from UEM Group for RM44m. The deal fits with PLUS’ plan to expand locally and abroad. It will also help broaden its earnings base. Teras is the company that introduced the Toll Revenues and Collection System, the contactless smart card system known as Touch ‘n Go, and the non-stop vehicle on-board unit known as SmartTAG. (BT)

IJM Prop, Angkasa scrap building plan
IJM Land said its unit IJM Properties SB and Angkasa Gagah SB, a unit of IGB Corp, have scrapped a plan to build residential property in Setapak, Selangor. Both parties signed a deal for the project in October 2006. IJM did not say why they aborted it but said that it needed regulatory approval for the project. (BT)

Naim Holdings plans to lift Dayang stake
Naim Holdings plans to increase its stake, currently at 36%, in associate oil and gas firm, Dayang Enterprise Holdings, said managing director Datuk Hasmi Hasan. However, he declined to reveal how much more Naim intended to add to its equity stake in Dayang Enterprise. Under the law, Naim can only purchase Dayang shares up to 4% in a year. “Naim now holds about 126m shares in Dayang worth more than RM240m at the current price of RM1.90 per share against its investment cost of RM108m. (Starbiz)

Maxis to spend RM.4bn on capex, seeks funding
Maxis has allocated RM1.4bn for capital expenditure (capex) this year as it aims to achieve 80% of 3G population coverage by year end. So far, RM200m has been earmarked for fiberisation of fixed broadband, out of which RM150m has been spent. The remaining RM1.2bn has been allocated for its 2G and 3G and fiberisation of network. The capex will be sourced from internal cashflow. Meanwhile, Bloomberg reported that Maxis is planning to raise as much as RM4.5bn through a possible bond sale and bank credit within the next three to six months. The telo will use RM2.5bn of the proceeds to repay a bridging loan and the remainder used for capex. (MalaysianReserve) 

20100616 1027 Soy Oil & Palm Oil News.

MPOB Data : 
Production : 1,385,424 up 6.06% , Stock : 1,562,323 down 3.71%, Export : 1,362,056 up 5.96%.

Soyoil futures rallied, climbing to 2 1/2 week highs. The market was buoyed by continued concerns about extended wet weather delaying plantings and reducing Canadian canola crop acreage. Canola oil competes with soyoil in world vegoil markets. Spillover support from firm crude oil futures, as the biodiesel aspect of soyoil usages links the market to movement in energy prices, analysts said. July soyoil settled 0.42 cents or 1.1% higher at 37.81 cents per pound. (Source: CME)

Weak exports drag palm oil to 7-month lows
KUALA LUMPUR, June 15 (Reuters) - Malaysian palm oil futures ended at more than 7-month lows  as investors took profit after key export figures came in below expectations and renewed worries over Europe's debt crisis rattled equities.
"The exports data was below expectations as (exports in) the first 10 days (of June) were up sharply," said a trader in Kuala Lumpur.

Biofuel demand means Thailand needs bigger crops-FAO
BANGKOK, June 15 (Reuters) - Thailand could suffer a slump in tapioca exports and may have to import palm oil unless it increases production of the commodities by at least 25 percent within 10 years, the Food and Agriculture Organization (FAO) said on Tuesday.
Thailand is the world's biggest tapioca exporter and ships around 19 million tonnes a year, but that could fall to just 400,000 tonnes in 2022 due to a jump in demand from the local ethanol industry, according to a study by the United Nations agency.

U.S. corn, soybean ratings seen unchanged
CHICAGO, June 14 (Reuters) - The U.S. Agriculture Department's weekly crop ratings report was expected to show 76 percent of corn was in good to excellent condition, unchanged from a week earlier, according to a Reuters poll of seven market analysts.
The soybean crop was seen at 75 percent good to excellent, also unchanged from last week.

Brazilian Farmers Sell 64% Of 2009-10 Soybeans -Celeres(Source: CME)
Brazilian farmers have sold 64% of the 2009-10 soybean crop as of June 11, local agricultural consultancy Celeres said in a weekly report.
Celeres on Monday said Brazil's soybean sales were up from 62% the week before but down from 71% at the same time a year ago.
Brazilian soy sales trail a five-year average of 70% as prices failed to tempt many farmers earlier in the season, Celeres added.
Brazil, which is the world's No. 2 soy producer after the U.S., is expected to produce a record 68.2 million metric tons of soybeans for the 2009-10 crop season, compared with 57 million tons the previous crop year.
Farmers in Mato Grosso, Brazil's No. 1 soy producing state, have sold 82% of their soy as of June 11 compared to 80% the week before and 89% a year ago, Celeres said. Mato Grosso's farmers were the first to start their harvest and took the opportunity to sell earlier than other states.
Parana, the No. 2 soy producing state, sold 48% of its beans as of June 11 compared to 45% the week before and 52% a year ago, Celeres said. Rio Grande do Sul, the No.3 producing state, sold 34% of its soy as of June 11 against 32% the week before and 46% a year ago.
Helped by favorable weather, Brazil recently finished harvesting the 2009-10 soy crop.