Thursday, June 17, 2010

20100617 1842 FCPO EOD Daily Chart Study.

FCPO closed : 2398, changed : +18 points, volume : lower.
Bollinger band reading : range bound downside biased.
MACD Histrogram : reversed upward, seller lock in profit.
Support : 2370, 2350, 2330 level.
Resistant : 2400, 2450, 2470 level.
Comment :
Lesser volume FCPO made a correction today as seller book in profits and a continue firmer soy oil futures price development. Daily chart shows that price recovered all yesterday losses and managed to test above resistant level closing just 2 points below it with the reading suggesting a continue correction downside biased market.
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.

20100617 1839 FKLI EOD Daily Chart Study.

FKLI closed : 1313 changed : +4 points, volume : lower.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : rising higher, buyer seize control.
Support : 1310, 1300, 1290 level.
Resistant : 1318, 1325, 1330 level
Comment :
Buyer turned aggresive with last hour buying activities lifted FKLI to closed high in moderate volume doing 9 points premium compare to cash market as positive development over European regional market.
Daily chart reading turned to a side way range bound little upside biased potential market but with diminishing volume.
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.

20100617 1428 Global Market News.

June 17 (Bloomberg) -
- BP Plc’s agreement to cut three quarters of dividend payments and set up a $20 billion fund for oil spill victims removed the energy producer from a four-hour stint among companies the bond market labels distressed. BP’s $750 million of 1.55 percent notes due 2011 rose 2.25 cents to 94.5 cents on the dollar, after tumbling as low as 87.9 cents, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The cost of protecting against default for one year rose 355 basis points to 997.25 basis points, after climbing to as high as 1,075, CMA DataVision prices show. 

June 17 (Bloomberg)
The Bank of Spain’s decision to publish the results of stress tests on the nation’s lenders may force European neighbors to follow suit as investors demand more disclosure of the risks on banks’ books. “Pressure is increasing and now European countries need to consider whether to follow Spain,” said Daniel Hupfer, who helps manage $40 billion at M.M. Warburg in Hamburg, including shares of Deutsche Bank AG, BNP Paribas SA and Banco Santander SA. “Whether they will is hard to predict. Europe isn’t really seeing eye-to-eye right now.”

20100617 1412 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1308 changed : -1 point, volume : low.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : continue lower, buyer profit taking activities continue.
Support : 1300, 1290, 1280 level.
Resistant : 1310, 1318, 1325 level
Comment :
Quiet market thin trading FKLI ended the first session 2 ticks lower as no fresh catalyst to lead market direction to no where plus a mixed development on the Asia regional market. Hourly chart showing a tight price spread side way range bound market with upside biased reading.

20100617 1331 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2373, changed : -7 points, volume : low.
Bollinger band reading : downside biased.
MACD Histrogram : recovering, not much action from seller.
Support : 2370, 2350, 2330 level.
Resistant : 2400, 2450, 2470 level.
Comment :
FCPO continue to trade weaker in thin volume transaction ignoring consecutive price rally in soy oil futures.
Hourly chart shows that market is hovering up and down within a sad disappointing 9 points range market with a downside biased outlook.

20100617 0951 Soy Oil & Palm Oil News.

Soyoil futures rallied for the fourth consecutive trading day, extending their upturn in prices on bullish planting issues for Canadian canola and the unwinding of meal/oil spreads, analysts said. The market continued its recovery bounce from prior losses, with spillover support from firm crude oil futures adding strength. However, disappointment over news the U.S. Senate failed to revive a $1-per-gallon government tax incentive for the biodiesel industry took some edge off prices. Soyoil is the primary feedstock for U.S. biodiesel production. July soyoil settled 0.32 cents, or 0.8%, higher at 38.13 cents per pound.(Source: CME)

Palm off 7-mth lows as risk appetite returns.
KUALA LUMPUR, June 16 (Reuters) - Malaysian crude palm oil futures rose  after hitting seven-month lows earlier in the day as healthy demand for European debt securities re-ignited hopes for global economic growth.
"(There was some) technical buying as some players thought that the market was a little oversold," said a trader in Kuala Lumpur. "(But) gains were capped by a lack of fresh bullish fundamentals."

20100617 0948 Local & Global Economic News.

Malaysia: Decision on extending preferential tax by year-end
The Government will decide by year-end the proposed extension of a preferential tax treatment to skilled workers in specific industries in the various planned economic corridors, Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop said yesterday. However, he declined to say which industries or economic corridors would be given the special tax rate. (Financial Daily)
Malaysia: Sundry goods merchants call off boycott
The Federation of Sundry Goods Merchants Association has assured consumers that there would be enough supply of sugar, flour and cooking oil in sundry shops following a consensus reached with the Government. The new licensing developments include that there will now be a single licensing system from 1 July to sell 6 essential items and that sundry shops are permitted to have in capacity 500kg each for sugar, flour and cooking oil compared to 200kg previously. (Star)

Indonesia: Seeks to manage capital flows, reduce Rupiah swings
Indonesia’s central bank will reorganize its bill sales to encourage investors to keep their money in Southeast Asia’s largest economy for longer, joining regional policy makers in seeking to reduce currency volatility. Investors in Bank Indonesia bills maturing in a month must hold the securities for at least one month, whether they make the purchase in the primary or secondary market, Senior Deputy Governor Darmin Nasution told reporters in Jakarta. The central bank will also sell longer-term bills and charge lenders more for tapping its funds. (Bloomberg)

China: IMF chief economist says it’s in China’s interest to revalue yuan
It is in China’s interest to revalue its currency, and from the point of view of the rest of the world it should happen as soon as possible, the International Monetary Fund’s (IMF) top economist was quoted as saying. “Some sectors in China are overheating and workers are demanding more pay. They (authorities) don’t want the inflation risk to grow,” IMF chief economist Olivier Blanchard said in Finnish business paper Kauppalehti yesterday. (Financial Daily)

EU: Says countries must reduce budget deficits
The European Commission called on governments to take “ambitious” steps to push down budget deficits and said some debt-burdened countries may have to use “cold shower” consolidation plans. “Events in spring 2010 have exposed the urgency of addressing the fiscal challenge” in the euro area as “the high and rising public debts raised concerns on governments’ solvency,” the Brussels-based commission, the European Union executive said. “While gradual consolidations tend to have higher success rates than “cold shower” ones, the latter might be “a better approach” for high-debt countries, it said. (Bloomberg)

US: Producer prices in US decreased 0.3% in May on fuel
Wholesale prices in the US fell in May for the third time in the past four months, pulled down by lower costs for energy and food as European default concerns threatened to slow the global expansion. The 0.3% decline in prices paid to factories, farmers and other producers was smaller than projected by the median forecast of economists surveyed by Bloomberg news and followed a 0.1% drop in April, figures from the Labor Department showed in Washington. Excluding food and fuel, so-called core prices climbed 0.2% for a second month. (Bloomberg)

US: Factories lead rebound as housing falls
Production in the US rose by the most since August and builders broke ground on fewer homes than projected, showing manufacturing is sustaining the recovery as the housing market retreats following the expiration of a government tax credit. Output at factories, mines and utilities increased 1.2% last month after a 0.7% gain in April. Housing starts fell 10%, the biggest decline since March 2009, according to figures from the Commerce Department. (Bloomberg)

Stocks hit 1-month high; euro near peak
LONDON, June 16 (Reuters) - World stocks rose to a one-month high  and the euro briefly hit a two-week peak as strong gains on Wall Street encouraged fresh risk-taking, while lingering euro zone debt concerns limited aggressive buying.
"On a momentum basis, if we track the U.S. higher then there's a good case that we can push higher from here but it's going to be very hard going indeed if Spanish bond yields keep going north," said Geoff Wilkinson, head of investment research at Mint.

NY manufacturing grows, U.S. import prices slip
NEW YORK, June 15 (Reuters) - Manufacturing in New York state grew in June even as hiring slowed, supporting views the factory sector is recovering, while U.S. import prices recorded their largest decline in nearly a year in May.
The data is the latest sign of strength in manufacturing and follows recent U.S. reports suggesting the rebound may be losing momentum, including one showing U.S. private employers hired fewer workers than expected in May and another showing a surprise decline in May retail sales.

European recession next year "almost inevitable"-Soros
LONDON, June 15 (Reuters) - Europe faces almost inevitable recession next year and years of stagnation as policymakers' response to the euro zone crisis causes a downward spiral, billionaire U.S. investor George Soros said on Tuesday.
Flaws built into the euro from the start had become acute, Soros told a seminar, warning that the euro crisis could have the potential to destroy the 27-nation European Union.

Australia PM signals mining tax compromise
SYDNEY, June 16 (Reuters) - The Australian government stood firm on Wednesday on the 40 percent headline rate for its planned mining tax, but said it was prepared to discuss how the tax was phased-in within sectors of the mining industry.
Government recognition that parts of the resource industry may be affected differently by the tax, indicated Canberra could alter some details of the tax to suit mining sectors.

20100617 0945 Malaysia Corporate News.

SC gets injunction against Ishak
The SC has obtained an ex-parte injunction to refrain Datuk Ishak Ismail from dealing with RM10.2m, proceeds from his disposal of about 58.7m shares of Kenmark Industrial Co (M). In a statement yesterday, the SC said the Kuala Lumpur High Court also ordered Ishak to furnish full and complete details of his assets, whether in Malaysia or elsewhere, within four days. Investigations in the meantime are actively being pursued on possible breaches of securities laws within Kenmark, especially with respect to its previous board, management and key shareholders, it said. (Financial Daily)

PNB, Taiwan group in talks to sell stakes in Titan
Titan Chemicals Corp’s two major shareholders, Taiwan’s Chao Group and Permodalan Nasional (PNB) are in talks to divest their stakes in the petrochemical company. The prospective buyer could be a foreign party. If the potential buyer acquires Chao Group and PNB’s 37.4% and 30.2% stakes respectively, it could trigger a mandatory general offer for the remaining shares in Titan, unless it involves a partial divestment that’s below the takeover threshold. (StarBiz)

Maxis mulls options to raise up to RM4.5bn
Maxis is preparing to raise as much as RM4.5bn to upgrade its network and pay back debt, chief financial officer Rossana Rashidi said. The carrier, controlled by billionaire T. Ananda Krishnan, was in talks with bankers to weigh options that included the company’s first sale of bonds, Rossana said in an interview on Tuesday. Maxis may raise the funds in the next three to six months, she said. The company plans to invest RM1.4bn on its mobile phone and broadband networks this year as revenue from voice calls shrinks. (Financial Daily)

Daya Materials placement fixed at 22 sen
Daya Materials announced that it has fixed the price of the first tranche of shares in its proposed private placement at 22 sen a share. In its release to the exchange yesterday, Daya said the price of 22 sen represented a discount of 9.5% over the weighted average market price of Daya shares for the five market days preceding 16 June of 24.31 sen a share. Daya plans to issue up to 109m new shares in the placement exercise, according to its past filing with the exchange. (Malaysian Reserve)