Friday, June 25, 2010

20100625 1335 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1319 changed : -2.5 points, volume : high.
Bollinger band reading : downside biased.
MACD Histrogram : turned lower, seller return.
Support : 1318, 1310, 1300 level.
Resistant : 1325, 1330, 1337 level.
Comment :
Better range and volume transaction FKLI ended the first session lower after opened lower but recovered followed by selling pressure press price to move downward again. Hourly chart reading suggesting a further downside biased potential market.

20100625 1325 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2382, changed : -8 points, volume : low.
Bollinger band reading : side way little downside biased.
MACD Histrogram : up and down, no significant action from both buyer and seller.
Support : 2370, 2350, 2330 level.
Resistant : 2400, 2450, 2470 level.
Comment :
No much action FCPO traded lower in ultra low volume transaction with hourly chart having a side way range bound little downside biased reading.

20100625 1131 Global Economic News.

China: PBoC adviser sees yuan rising 3% versus US dollar
The yuan is likely to rise about 3% against the USD by the end of this year, assuming the euro holds its ground against the US currency, Li Daokui, an adviser of the central People’s Bank of China (PBoC) said. PBoC would once again let the yuan move more freely after having kept the currency more or less pegged to the dollar for 2 years to provide stability for exporters during global downturn. (Financial Daily)

Taiwan: Unexpectedly raises rate in signal of Asia’s confidence
Taiwan’s central bank unexpectedly raised its benchmark interest rate for the first time since 2008, joining Asian policy makers from China to Malaysia in signaling confidence the global recovery will withstand Europe’s debt woes. Governor Perng Fai-nan and his board increased the discount rate on 10-day loans to banks to 1.375% from a record-low 1.25%, confounding the forecasts of all 13 economists surveyed by Bloomberg News, who expected no change. (Bloomberg)

Japan: Export growth slows, signaling recovery to cool
Japan’s export growth slowed for a third month in May, signaling the pace of the economic recovery is likely to cool. Shipments abroad advanced 32.1% from a year earlier, less than April’s 40.4%, the Finance Ministry said in Tokyo. The median estimate of 19 economists surveyed by Bloomberg News was for 36.5%. (Bloomberg)

France: Jobless claims increase as companies trim workforce
The number of jobseekers in France climbed in May as manufacturers trimmed payrolls in the wake of the country’s worst recession in more than half a century. The number of unemployed actively looking for work rose by 22,600 last month, an increase of 0.8%, the Labor and Finance Ministries said. The total number of jobseekers was 2.7m, the highest since May 2005. (Bloomberg)

EU: Should ignore US stimulus call at G-20, Taylor says
Europe should ignore US calls for continued stimulus and stick to austerity plans when G-20 leaders meet this weekend because budget cuts aren’t likely to trigger a new recession, economist John B. Taylor said. US President Barack Obama is urging G-20 nations to support the global economic recovery by focusing on growth, while Germany and the UK, are focusing on reducing budget deficits, setting a course for conflict at the G-20 summit. (Bloomberg)

US: Investment picking up, claims decline
Orders for computers and machinery climbed in May, showing gains in global business investment and demand that will give the US economy a lift. Bookings for goods meant to last at least three years, excluding autos and aircraft, increased 0.9%, the third gain in the past four months, according to figures from the Commerce Department. A report from the Labor Department showed the number of claims for jobless benefits last week hovered near this year’s average. (Bloomberg)

20100625 1126 Malaysia Corporate News.

AirAsia weighs dividend payout
Budget carrier AirAsia is now ready to consider paying dividends to its shareholders, said group chief executive officer Datuk Seri Dr Tony Fernandes. No timeline has been set as its board of directors will now actively look into a possible dividend policy for the airline, which was first listed in 2004. (BT)

Tengku Ibrahim files suit against Petra Perdana
The tussle at Petra Perdana and its 29.6% unit Petra Energy was nudged up a notch with the faction led by Tengku Ibrahim Petra filing a suit to adjourn Petra Perdana’s AGM slated for 28 June, 2010. Petra Perdana said the company was served with a summons in chambers and originating summons together with copies of the affidavit in support in relation to the adjournment of the AGM until the disposal of the suit. (FinancialDaily)

A total of 17 contractors eye LRT infrastructure jobs
A total of 17 contractors are bidding for the infrastructure works in the first phase of the extension jobs of the LRT projects involving the Kelana Jaya LRT and Ampang lines. Among the big names are Sunway Construction SB, IJM Engineering SB, Muhibbah Engineering SB, Gamuda, Bina Puri, Loh & Loh, MRCB Engineering as well as JV such as WCT-Sinohydro, Ranhill-CCCC and UEM Builders-Intra Bina. The first phase extension will involve a total 16.6km. The first phase of the main construction works for the estimated RM7bn LRT extension is expected to start in November and be completed in three years. (FinancialDaily & StarBiz)

Top Glove in talks to buy small regional companies
Top Glove Corp is eyeing to acquire small regional rubber glove companies this year while focusing on setting up one or two new plants each year, said chairman Tan Sri Lim Wee-Chai. (StarBiz)

National master-plan for public transport
The Land Public Transport Commission (SPAD) will draw up a public transport master-plan in 6 to 12 months from September to ensure the holistic development of public transport in the country. The commission, which was set up early this month to regulate the land public transport sector, will fully take over as a regulatory body from September. (StarBiz)

EPIC to spend RM30m on supply base expansion
Eastern Pacific Industrial Corp (EPIC) expects to spend some RM30m to expand its supply base in Kemaman, Terengganu, to cope with rising demand for its facilities and services from oil and gas players. Its chairman Datuk Tik Mustaffa said work on Phase 2B of the project will start by September this year and should be completed within the next six months. "Upon completion, Phase 2B, which covers 11.2ha, will house warehouses, including open space storage facilities. Probably, we would be able to offer about 10 warehouses for our potential clients at the new site," he told reporters after the company's AGM in Kemaman yesterday. (BT)

EONCap adviser proposed higher takeover price of RM6.18bn
An independent financial adviser appointed by the board of EON capital has recommended a fair and reasonable takeover price of RM6.18bn, or RM8.91 per share, 22% higher than Hong Leong Bank’s offer, according to details by Primus SB on Monday, which suggests that Primus may settle for an offer, which incidentally is lower than its cost of RM9.55 per share. (FinancialDaily)

20100625 1121 Global Market News.

GLOBAL MARKETS: World stocks weighed by growth fears; gold up
NEW YORK, June 24 (Reuters) - World stock markets and high-yielding currencies dropped on Thursday as investors retreated from riskier assets, worried about tepid global growth and renewed fears in Greek debt markets.
The Federal Reserve offered a subdued assessment of the U.S. economy on Wednesday and affirmed that short-term interest rates would remain near zero for "an extended period," which pressured U.S. equities for a second consecutive day on Thursday.

Stocks down on Fed gloom; dollar recovers
LONDON, June 24 (Reuters) - Global equities and crude prices eased  on concerns over economic growth after the U.S. Federal Reserve's pessimistic outlook, though the dollar recovered from the previous session's losses.
"The negative tone on the speed and strength of the recovery from the Federal Reserve is infringing on investor's expectations and there's a sense that there will be a long period of anaemic growth," said Henk Potts, analyst at Barclays Wealth in London.

WELLINGTON, June 25 (Reuters)
Asian stocks are set to fall on Friday, as growing economic pessimism in the U.S. and re-emergence of euro zone debt worries weighed on global markets. pricorn23: Banks fell on fears the U.S. Congress would pass strict new rules on financial regulations, which would restrict their trading and investment activities. 

20100625 1118 Soy Oil & Palm Oil News.

ITS Cargo Surveyor Crude Palm Oil export up 8.9% for the period 1~25 Jun 2010

Soyoil futures stumbled near two-week lows, as a bearish up of stocks reported in the Census crush report weighed on prices. Soyoil has become an excess by product of the crush with demand from the biodiesel industry shut down, said Don Roose, president of U.S. commodities in West Des Moines, Iowa. Technical weakness helped anchor prices as well, but solid export demand limited losses. July soyoil settled 0.42 cent, or 1.1%, lower at 37.17 cents per pound.(Source: CME)

Supply, Favorable Conditions To Depress Soybean Prices(Source: CME)
Strong soybean harvests expected over the next two years may depress prices of the commodity as stocks rise, boosting supplies of soybeans and soyoil, a Rabobank International analyst said Thursday.
Strong demand from China is likely to push corn prices higher, however, and to limit any losses for soybeans and other oilseeds.
Global soybean stocks may reach 60 million metric tons in the 2009-10 crop year to September, and are likely to hit 74 million tons during 2010-11, said John Baker, Rabobank's regional head in Asia for Food and Agribusiness Research and Advisory.
Soybean prices may decline slightly to $9 a bushel in September, he said. In electronic trading, Chicago Board of Trade prices for soybeans to be delivered in July were up 5 1/2 cents at $9.635/bushel around 0930 GMT.
The expected decline in soybean prices will likely be limited, however.
Rising demand from China for soybeans and other oilseeds are expected to support global prices, as China's imports of soybeans alone may reach 50 million tons during 2010-11. The China National Grain & Oils information Centre forecasts 2009-10 imports at 47.5 million tons.
Palm oil prices, which track soyoil prices because they are rival products in many export markets, may "fall off slightly in the next few months, but I expect crude palm oil to (continue to) trade above $700/ton," Baker said.
The U.S. corn crop, the world's largest, may reach 13.5 billion bushels in 2010-11, up from 13.2 billion bushels in 2008-09, and Argentina's current corn harvest may yield 21 million tons, he said.
"Production in Brazil may reach 54.1 million tons in 2009-10, up 6.2% from the previous marketing year," he said.
Despite the large harvests, corn prices will be supported by demand from China as dry weather conditions hurt its domestic corn production.
Corn prices may "gradually trend upwards and reach $4.10/bushel in March 2011," Baker said.

Palm oil up on strong demand hopes
KUALA LUMPUR, June 24 (Reuters) - Malaysian crude palm oil futures made little headway  as players took positions ahead of export data expected to be strong, although lacklustre crude markets curbed gains.  "The market is consolidating but there is short covering ahead of the export numbers," said a trader in Kuala Lumpur.   

China's eating to sharply outpace food output-OECD
LONDON, June 24 (Reuters) - China's rate of food consumption growth is expected to be double its domestic agricultural production growth by 2019, prompting steady inports growth, a senior OECD official told Reuters on Thursday. "For China one of the major challenges is food security," said Wayne Jones, head of the agro-food trade and markets division at the the Organization for Economic Cooperation and Development.

China soy purchases slow after record June imports -CNGOIC
BEIJING, June 24 (Reuters) - Chinese soy importers have slowed bookings of new cargoes after record-high imports in June and hefty purchases already made for July, the China National Grain and Oils Information Center (CNGOIC) said on Thursday. China's June soy imports were set to hit a record of 6 million tonnes, with many ports reporting bulging inventories, the centre said.

Rains cast doubt on Canada crop stats
WINNIPEG, Manitoba, June 23 (Reuters) - The Canadian government on Wednesday estimated that farmers planted or intended to plant a record canola area and less wheat and barley this year, but Statistics Canada admitted the report may not reflect the full impact of record spring rains.  Traders and analysts view the report as inaccurate, since Statscan surveyed farmers between May 25 and June 3, prior to disastrous June rains that left Western Canada's biggest unplanted acreage in 39 years.