Wednesday, June 23, 2010

Invitation : Derivatives Night With Interactive Futures Sdn Bhd. 6.45 ~ 9.00pm 23 Jun 2010 Bursa Malaysia Auditorium.

20100623 1805 FCPO EOD Daily Chart Study.

FCPO closed : 2384, changed : +7 points, volume : higher.
Bollinger band reading : downside biased.
MACD Histrogram : turned upward, seller taking profit.
Support : 2370, 2350, 2330 level.
Resistant : 2400, 2450, 2470 level.
Comment :
Better volume tight 22 points range FCPO traded marginally higher with daily chart reading continue to show a downside biased market outlook.
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 larger cut loss and profit target.

20100623 1740 FKLI EOD Daily Chart Study.

FKLI closed : 1331.5 changed : +2 points, volume : higher slightly.
Bollinger band reading : side way correction upside biased.
MACD Histrogram : weakening, buyer profit taking continue.
Support : 1330, 1325, 1318 level.
Resistant : 1337, 1345, 1350 level.
Comment :
Roller coaster FKLI opened and traded lower followed by second session buying activities lifted price to closed near the high up slightly in thin trading volume. Daily chart shows that correction side way range bound market still taking place within a upside biased market.
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.

20100623 1505 Global Market News.

Asia stocks fall, US data fuels recovery fear
SINGAPORE, June 23 (Reuters) - Asian stocks slid on Wednesday as an unexpected fall in U.S. home sales added to worries about the fragility of the global economic recovery and optimism over China's promise to make the yuan more flexible faded further.
"At this stage, I don't think there will be a double dip, but this sluggish growth will last, with little bumps along the way," she said.

20100623 1315 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1324 changed : -6 points, volume : low.
Bollinger band reading : side way downside biased.
MACD Histrogram : reversed upward, buyer taking profit continue.
Support : 1318, 1310, 1300 level.
Resistant : 1325, 1330, 1337 level.
Comment :
7 points range FKLI continue to trade weaker in light volume transaction after the Dow overnight negative closed. Hourly chart reading turned into side way downside biased reading after tested and succesfully penetrated 2 support levels.

20100623 1247 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2381, changed : +4 points, volume : low.
Bollinger band reading : downside biased.
MACD Histrogram : recovering, seller taking profit.
Support : 2370, 2350, 2330 level.
Resistant : 2400, 2450, 2470 level.
Comment :
Another quiet day for FCPO that traded in low volume tight range market recorded slightly gain in price.
Hourly chart shows that market resumed its downwards movement after having 2 candles of correction with a downside biased market reading.

20100623 1114 Global Market News.

GLOBAL MARKETS: US stocks slip on oil ruling, Europe hit by banksNEW YORK, June 22 (Reuters) - Uncertainty over Washington's ban on deepwater oil drilling, coupled with weak May U.S. housing data, sank stocks and lifted Treasuries, while a high-profile credit downgrade rattled Europe's banks.
"The notion that the regulatory environment is changing, coordinated with a tougher economic outlook for consumption, would suggest (energy) stocks stay under pressure," said Joe Battipaglia, market strategist at Stifel Nicolaus in Yardley, Pennsylvania.

World stocks break 10-day rally

LONDON, June 22 (Reuters) - World stocks fell for the first time in two weeks  as investors took some profits on a cooler assessment of China's weekend decision to give its currency more flexibility.
"People gave much more weight to the currency move than it deserved," said Koen De Leus, economist at KBC Securities.

20100623 1057 Global Economic News.

Taiwan - Unemployment rate fell to 17-month low in May
Taiwan’s jobless rate fell in May to the lowest level in 17 months as stronger international demand prompted manufacturers and retailers to hire. The seasonally adjusted rate declined to 5.22% last month from 5.43% in April, the statistics bureau said in Taipei. (Bloomberg)

US - Sales of existing homes fall as end of tax credit looms
Sales of US previously owned homes unexpectedly fell in May as demand began to slip even before a government tax credit expires. Purchases of existing houses, which are tabulated when a contract closes, decreased 2.2% to a 5.66 million annual rate. (Bloomberg)

US - Inflation expectations signal no hurry for Fed to raise rates
A decline in expectations for future inflation in the US signals that Federal Reserve policy makers should be in no hurry to raise rates as they meet to set borrowing costs. Investors anticipate an inflation rate of 1.69% in the next five years, compared with 2.01% on 28 April, when policy makers concluded their last meeting on monetary policy. (Bloomberg)

EU - June consumer confidence holds near nine-month low
European consumer confidence remained near the lowest in nine months in June as rising unemployment and a fiscal crisis clouded the growth outlook. An index of consumer sentiment in the 16-nation euro region rose to minus 17.3 from minus 17.8 in May, the Brussels-based European Commission said. The May reading was the lowest since September 2009. (Bloomberg)

China - Yuan gain may alter global growth more than velocity
China’s shift toward a stronger exchange rate may alter the shape of the world economy’s expansion more than its speed, economists said. Chinese consumers might buy more as the rising yuan boosts their purchasing power, while their counterparts in the US cut back on their spending as the cost of goods imported into America rises. The shift will add 0.1 percentage point to global growth this year and next, leaving the rate at about 4%., (Bloomberg)

20100623 1049 Malaysia Corporate News.

Axiata to sell RM4.2bn sukuk to refinance debt
Axiata Group, which owns Malaysia’s second biggest mobile phone operator, plans to sell as much as RM4.2bn of Islamic bonds or sukuks at the end of the July to refinance debt, CFO Datuk Yusof Annuar Yaacob said. The company’s long-term debt was about RM11.2bn at the end of March, according to data compiled by Bloomberg. It last sold notes in April, raising USD300m (RM965.1m) in its first dollar bond sale. Axiata plans RM3.6bn in capital expenditure this year to grow its international network, Yusof Annuar told reporters in KL yesterday. This includes RM1bn for its domestic operations under Celcom (Malaysia) Bhd, USD500m for its Indonesian unit PT XL Axiata and USD100m each for its arms in Bangladesh and Sri Lanka. (Malaysian Reserve)

Primus seeks damages of RM1.1bn
Primus (Malaysia) SB is seeking damages to the tune of RM1.12bn, or a sum set by the court for EON Capital, from the current board of directors of EON Capital save for Ng Wing Fai, should the sale of assets and liabilities of EON Cap be passed at an upcoming EGM. In a statement released by EON Cap to the exchange yesterday, the company said it had received the petition by Primus, which states that the private equity firm believes the above value represents the ‘undervalue’ amount and wants to claim it from the board of directors. (Malaysian Reserve)

Tussle at Petra Perdana heats up
The tussle for control of oil and gas outfit Petra Perdana Bhd (PPB) is heating up with the company rejecting the nomination of four individuals to the company’s board at its upcoming AGM on 28 June. The nominations were made by parties aligned to Tengku Ibrahim Petra Tengku Indra Petra, who is at loggerheads with PPB’s board led managing director Shamsul Saad and executive director Datuk Henry Kho Poh Eng. In a statement yesterday, PPB’s board said it had made the decision after seeking legal counsel and was advised that the nominations had not been made in accordance with the law. (Financial Daily)

BJLand JV aborts USD200m themed village project in Korea
Berjaya Land Bhd (BLand) has aborted its proposed USD200m (RM640m) joint venture (JV) project, an international themed village, on a 586,040 sq metre (about 145 acres) parcel of freehold land in the Jeju Special Self Government Province in South Korea. In a statement yesterday, BLand said it and the Jeju Free International City Development Centre (JDC) had mutually agreed that their conditional MoA on 28 Aug 2008 involving the development of the “themed village project” had lapsed. (Financial Daily)

M’sia and S’pore to reduce Second Link toll rate by 30%
Malaysia and Singapore have agreed to reduce their respective toll charges at the Second Link by 30% effective 1 Aug. The consensus was reached after a meeting between PM Datuk Seri Najib and his Singapore counterpart Lee Hsien Loong. The Second Link refers to the bridge that spans the stretch between Singapore and Malaysia where it extends a total of 47km from Tanjong Kupang to Senai in Johor, a twin-deck bridge supporting a dual three lane carriage way linking Tanjung Kupang in Johor and Tuas in Singapore. (Financial Daily)

KFCH proposes 1-for-1 bonus issue
KFC Holdings (M) Bhd (KFCH) has proposed a one-for-one bonus issue of up to 396.5m new shares to improve liquidity and reward investors. It has also proposed a share split of one RM1 share into two shares. This will be followed by a free warrants issue of 31.7m warrants on the basis of one free warrant for 25 existing KFCH shares. The bonus issue is expected to help improve the liquidity and marketability of KFCH shares, it told Bursa Malaysia yesterday. (BT)

20100623 1034 Soy Oil & Palm Oil News,

Soyoil futures stumbled, inching down on meal/oil spreading and spillover weakness from crude oil futures. Crude oil influences soyoil due to its use in making renewable fuels. July soyoil settled 0.12 cents, or 0.3%, lower at 37.93 cents per pound.(Source: CME)

Palm down as yuan rise may not boost commodity demand
KUALA LUMPUR, June 22 (Reuters) - Malaysian crude palm oil futures ended 1.2 percent lower , in line with other vegetable oil markets, on expectations the Chinese yuan's appreciation may not translate into higher commodity demand.
"There are some technical corrections (in palm oil) from the highest point yesterday, mostly driven by crude oil and soyoil on CBOT (Chicago Board of Trade)," said a trader in Kuala Lumpur.

Brazil 09/10 soy sales reach 66 pct crop - Celeres
SAO PAULO, June 21 (Reuters) - With all of Brazil's estimated record 68.2-million-tonne 2009/10 crop harvested, producers were focused on sales which stand at 66 percent of the crop by June 18, up from 64 percent the week prior, analysts Celeres said on Monday.
Sales of the new crop were still behind the 73 percent sold of the previous crop last year by this time, Celeres said.