Monday, June 21, 2010

20100621 1850 FCPO EOD Daily Chart Study.

FCPO closed : 2405, changed : +5 points, volume : higher.
Bollinger band reading : range bound downside biased.
MACD Histrogram : recovering, seller reducing exposure.
Support : 2400, 2370, 2350, 2330 level.
Resistant : 2450, 2470, 2500 level.
Comment :
Not much second session actions FCPO closed 5 point higher in better volume transacted within a tight 22 points range market. Daily chart continue to show upward correction taking place within a downside biased market reading plus a potential positive MACD Histrogram positive divergence.
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.

20100621 1838 FKLI EOD Daily Chart Study.

FKLI closed : 1341.5 changed : +23 points, volume : higher.
Bollinger band reading : upside biased with potential correction.
MACD Histrogram : rising higher, buyer extend territory.
Support : 1337, 1330, 1325 level.
Resistant : 1345, 1350, 1360 level.
Comment :
12 points range FKLI closed boldly near the high of the day in better volume traded in tandem with a positive regional market development.  Daily chart shows that market opened and traded higher to closed above the upper Bollinger band level that could possibly triggered a profit taking downward pullback correction.
Outlook wise, market still recording a upside biased reading.
When to buy : buy at support/weakness/break up with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100621 1541 Latest Global Market and Comodities News.

Wilmar plans to invest $2 bln in Indonesia - govt
JAKARTA, June 21 (Reuters) - Singapore's Wilmar , the world's largest listed palm oil firm, wants to invest $2 billion in Indonesia, the head of Indonesia's state investment board Gita Wirjawan said on Monday.
Wirjawan said Wilmar was looking at investing in the planned Merauke food estate in Indonesia's eastern Papua region.

China yuan change spurs jump to risky assets
HONG KONG, June 21 (Reuters) - Stocks and commodities jumped and U.S. Treasuries fell as investors bet China will allow the yuan to rise after promising more currency flexibility, easing political tensions with the West and encouraging investors to snap up riskier assets.
"This provides a positive psychological boost to Asian financial markets, so not just Asian equity markets but also Asian currencies and bond markets as well," Khiem Do, head of Asian multi asset at Baring Asset Management in Hong Kong, told Reuters Insider television.

20100621 1316 FKLI Mid Day Hourly Chart Study,

FKLI closed : 1337.5 changed : +19 points, volume : high.
Bollinger band reading : upside biased with potential correction.
MACD Histrogram : tuned downward, buyer taking profit.
Support : 1337, 1330, 1325 level.
Resistant : 1345, 1350, 1360 level.
Comment :
All regional market reacted possitively towards China's vows Yuan flexibility and the same goes to FKLI and traded strongly in sustaining volume changed hand. Hourly chart shows that market opened and traded higher within a 8 points range and the reading suggesting a upside biased market with potential pullback correction.

20100621 1253 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2405, changed : +5 points, volume : moderate.
Bollinger band reading : upside biased.
MACD Histrogram : weakening, seller continue to take profit.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
Improved export data figure plus China's yuan revalue news seems doesn't kick FCPO to move much that closed the morning session up marginally higher in better volume traded. Hourly chart shows an improving volume upside biased market reading after opened higher and seems well supported at 2400 resistant turned support level.

20100621 1223 Soy Oil & Palm Oil News.

Soyoil futures inched lower, stumbling from earlier gains on the unwinding of the oil/meal spreads. Futures were initially supported on lingering concerns of reduced canola oil competition and fresh export demand from China. However, after a week of solid gains, traders booked some profits ahead of the weekend, analysts said. July soyoil settled 0.13 cent, or 0.3%, lower at 37.92 cents per pound.(Source: CME)

Palm extends gains as economic hopes boost demand
KUALA LUMPUR, June 18 (Reuters) - Malaysian crude palm oil futures inched up , extending gains from the previous day, buoyed by increased optimism about the pace of the global economic recovery.
"Margins are returning for refiners. Many of them are going long in futures. Technically, the market looks very supportive," said a trader in Kuala Lumpur.

German rapeseed crop close to last year's record
HAMBURG, June 17 (Reuters) - Favourable weather in past weeks has improved the rapeseed harvest outlook in Germany, the European Union's largest rapeseed producer, but the crop is likely to be below the record harvest in 2009, analysts and traders said on Thursday.
"There is no doubt that the much better weather has significantly improved the growth of rapeseed plantings in recent weeks," one analyst said. "We have had good rain which has enabled the plants to catch up on delayed growth."

20100621 1210 Global Econimic News.

COMMODITIES: Yuan vow lifts copper, oil; bullish for markets
SINGAPORE, June 21 (Reuters) - Commodity markets rose after China vowed to make its currency more flexible, but traders added the move would probably support raw material and grain prices more than energy.
"This will tempt speculators back into the market on the long side. Most of our markets are highly geared to Chinese demand and anything that encourages Chinese buying will be positive," a trader in Singapore said.

GLOBAL MARKETS: Riskier trades rally on China yuan move
HONG KONG, June 21 (Reuters) - Asian currencies and stocks rose and U.S. Treasuries fell on expectations that China will allow the yuan to strengthen and break the currency's 23-month-old peg, easing political tensions with the West and encouraging investors to take more risks.
All eyes will be on the Chinese central bank's mid-point fixing at about 0117 GMT, which may hint at the pace of yuan strength from now on.

Malaysia: Inflation rate climbs to one-year high on food costs
Malaysia’s inflation accelerated in May to the fastest pace in a year, as a strengthening economy boosted food and transport costs. Consumer prices climbed 1.6% from a year earlier after gaining 1.5% in April. (Bloomberg)

Malaysia's 2010 rubber imports to grow
KUALA LUMPUR, June 18 (Reuters) - Malaysia, the world's third largest rubber producer, may have to import as 600,000 tonnes of the commodity this year to meet higher global demand despite rising domestic output, an official said on Friday. Malaysian Rubber Board Director General Salmiah Ahmad said the Southeast Asian country has to continue importing as capacity utilisation was rather low at 60-70 percent of 1.3 million tonnes annual at a time of strong demand from China.

Thailand: Exports climb the most in almost 2 years
Thailand’s exports rose the most since July 2008 as the global recovery boosted orders, helping to offset the economic fallout from the political unrest in April and May. Shipments jumped 42.1% in May from a year earlier to USD16.6bn. Previously, exports surged 35.2% in April.(Bloomberg)

China: To allow more yuan flexibility, citing economy
The People’s Bank of China said it will allow more yuan exchange rate flexibility and reform of the exchange rate mechanism as the nation’s economic recovery has “cemented” after the global financial crisis. The central bank said it will continue with the existing trading band of the yuan. (Bloomberg)

China: Backs Obama with Treasury holdings rising to USD900bn
A year after criticizing US fiscal policy as “irresponsible”, China’s leaders are showing increasing confidence in President Barack Obama’s leadership of the American economy. China boosted holdings of Treasury notes and bonds by 2.6% to USD900bn in March and April, after reducing its stake by 6.5% from November through February. (Bloomberg)

Japan : Government pledged to cut the nation's tax on businesses and nurture the environment and health care industries as part of a plan to defeat deflation and end two decades of economic stagnation. The government pledged in its medium-term economic plan to bring the corporate tax rate down to a level "commensurate" with other leading nations. Firms in Tokyo pay a levy, including local taxes, of 40.7%. (Source: Bloomberg)

UK: Posts smaller-than-expected May budget deficit
Britain posted a smaller fiscal deficit in May than economists forecast as growth lifted tax receipts. The USD23.8bn shortfall announced was better than the USD26.8bn median forecast in a Bloomberg News survey. (Bloomberg)

US: Payrolls rose in 41 US states on government hiring
Payrolls increased in 41 US states in May, led by a surge in government hiring that probably reflected temporary workers to conduct the decennial census. Excluding government agencies, employment would have dropped in 3 of the 5 states showing the biggest gains in payrolls, including California, Florida and New York. Hiring in Texas, where a 43,600 increase in jobs led all states, was paced by gains in professional and business services, tourism and manufacturing. (Bloomberg)

20100621 1202 Malaysia Corporate News.

Selangor water deadlock broken?
The deadlock in the proposed consolidation of water assets in Selangor may have been broken with all the parties close to agreeing on pricing, and ironing out the issues of operations and maintenance (O&M). Sources said the Selangor government and Federal Government-owned Pengurusan Aset Air (PAAB) would jointly pay for the acquisition of the state’s water assets and liabilities at over one time book value. PAAB could be the owner of the assets, and as consideration for the state’s payment of a portion of the total acquisition price, the Selangor government would end up with a stake in the management of the assets. (Financial Daily)

Korean group to set up RM1.5bn plant
South Korea-based industrial group STX Corp is investing RM1.5bn to set up a solar cells manufacturing plant at the Senai Hi-Tech Park (SHTP) in Johor. Chief operating officer and deputy president Je Hyun Yoon said it would be the company’s second solar cells plant after its facility in Gumi-City, Gyeongbuk, South Korea. Work on Senai plant will start this year and the project is expected to be completed within the next eight months, or by the end of 2011, CEO said. (StarBiz)

AirAsia X considers London share listing
AirAsia X, the long haul budget carrier controlled by AirAsia’s chief executive officer Datuk Seri Tony Fernandes, is considering listing its shares for trading in London, London Sunday Times reported, citing Fernandes. The airline, which is 16% owned by Richard Branson, chairman of the UK’s Virgin Group Ltd, will have its primary listing in Malaysia when it goes public next year. No decision has yet been made on which international market to use for a secondary listing. (Bloomberg)

Boustead to spend RM570m for expansion
Boustead Holdings, a conglomerate controlled by the Armed Forces Fund Board, plans to spend RM570m by year-end to fund its expansion in Malaysia. The budgeted capital expenditure (capex) would be used for the expansion of its dockyard in Lumut, Perak and further develop properties consisting of mainly hotels in Klang Valley. The funds will be financed from on going operations as well as some proceeds from recent rights issue. (Malaysian Reserve)

Tanjung Offshore gets Carigali LOA
Tanjung Offshore said that its wholly-owned subsidiary, Tanjung Offshore Services SB (TOS) has received a letter of award (LoA) from Petronas Carigali SB for the provision of marine seismic data acquisition services for Block SB305, Offshore Sabah. TOS is in the midst of satisfying the scope of work for the block as stated in the LoA involving the charter of an offshore seismic vessel and related services which are expected to complete by 31 Dec 2010. (Malaysian Reserve)

Putrajaya Perdana gets hospital job
Putrajaya Perdana says it won a contract to build a 300-bed private hospital in Desa Parkcity for RM142.8m. This will be the firm’s first project in the health sector. The project, which includes a six-storey elevated car park, was scheduled for completion in April 2012. (StarBiz)

Mulpha to raise RM21m
Mulpha International expects the listing of its subsidiary, Manta Holdings Co Ltd (MHCL), on the main board of Stock Exchange of Hong Kong Ltd in July to raise HK$50m (RM21.2m). Chief executive officer Chung Tze Hien said the funds raised would help MHCL expand its crane business. “The listing status allows the MHCL group to have greater financial flexibility when pursuing its growth plans,” he told reporters after Mulpha International’s AGM and EGM on Friday. There are four companies under the MHCL group - Manta Engineering and Equipment Co Ltd, Manta Equipment Rental Co Ltd, Manta Equipment Services Ltd and Manta Equipment (S) Pte Ltd. (StarBiz)

AmFIRST : To build up assets. AmFIRST Real Estate Investment Trust (AmFIRST REIT) is out to increase its asset size of more than RM1b and expects a deal to be done in the current financial year. Its performance will also be driven by the expansion of major tenant AmBank Group and progressive upgrading of existing buildings to attract new tenants. According to Am ARA REIT Managers Sdn Bhd CEO Lim Yoon Peng, the trust manager also aims to acquire a few assets in the Klang Valley. (Source: Business Times)

Auto : Vehicle sales in May jumped 16%. Vehicle sales rose again in May 2010 with the year-on-year volume up 16% to 50,845 units from 43,985 units, said the Malaysian Automotive Association (MAA). On Friday, MAA stated that for the January to May period, sales rose by 20% to 247,072 units versus 206,060 units a year earlier. Passenger vehicle sales in May increased to 46,229 from 40,159 units whereas commercial vehicles increased to 4,616 from 3,826 units. (Source: The Star)

Boustead : To spend RM570m for expansion by year-end. Boustead Holdings Bhd plans to spend RM570m by year-end to fund its expansion in Malaysia. The budgeted capex would be used for expansion of its dockyard in Lumut, Perak, and further develop properties consisting of mainly hotels in Klang Valley, according to an unnamed Boustead official. (Source: The Malaysian Reserve)

HLFG : Sells 30% of its life insurance business for RM940m. Hong Leong Financial Group will sell a 30% stake in its insurance unit Hong Leong Assurance Bhd (HLA) to Japanese insurance outfit Mitsui Sumitomo Insurance Co Ltd (MSI) for RM940m cash. HLA also plans to merge its entire general business with MSIG Insurance (Malaysia), MSI's Malaysian unit, HLFG said Friday. Following this, HLA will get a 30% stake in the enlarged MSIG Insurance Malaysia entity. (Source: The Star)

MAS : May ask for investment tax allowance. Malaysia Airlines (MAS) may consider applying for an investment tax allowance incentive from the Ministry of Finance (MOF) with the arrival of the first of its aircraft on order. The national carrier will receive three Boeing 737-800s this year under its fleet renewal program. By end-2016, it is expected to take delivery of six Airbus 380s, 15 A330-300s and 35 B737-800s. If proceeded, MAS will not be able to retain the current tax exemption on its chargeable income in respect of all sources of income in 2012. Under the exemption, deferred tax assets are not recognized in respect of unused tax losses, unabsorbed capital allowances and other deductible temporary differences. In contrast, the investment tax allowance is 60% of qualifying capex incurred within 5 years of the date of the first capex. It can be used to exempt up to 70% of statutory income in the assessment year. (Source: Business Times)

MRCB, MAHB : May be part of consortium. Bristeel Overseas Ventures Inc, a Malaysian consortium whose members are rumoured to include Malaysia Resources Corp Bhd (MRCB) and Malaysia Airports Holdings Bhd (MAHB), has offered to invest USD150m (RM490m) to help in the development of the Diosdado Macapagal International Airport (DMIA) in Pampanga province, the Philippines. Online news reports said the consortium is interested to enter into a JV agreement with Clark International Airport Corp (CIAC) to develop and expand the DMIA Terminal 1, with a passenger capacity of 7m p.a. (Source: Business Times)

Tenaga : CEO raises power demand forecast. Tenaga Nasional Bhd (TNB) forecasts electricity demand to grow by as much as 5% this year as the country's economic recovery spurs manufacturing. That is higher than the utility's earlier estimate of 3.5% for the current year ending Aug 31. According to CEO Datuk Seri Che Khalib Mohamad Noh, power demand may grow by as much as 4% to 5% annually for the next 5 years. (Source: The Star)