Tuesday, June 29, 2010

20100629 1818 FCPO EOD Daily Chart Study.

FCPO closed : 2366, changed : -34 points, volume : higher.
Bollinger band reading : side way downside biased.
MACD Histrogram : turned downward, seller defended well.
Support : 2350, 2330, 2300 level.
Resistant : 2370, 2400, 2450 level.
Comment :
Better volume transaction FCPO resumed downward movement to closed lower following a continue weaker soy oil and crude oil prices. Daily chart shows that seller retained control of the market pressing price to come down lower with the reading call for a side way range bound downside 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 larger cut loss and profit target.

20100629 1745 FKLI EOD Daily Chart Study.

FKLI closed : 1315.5 changed : -16.5 points, volume : higher.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : weakening, buyer closing position ahead of expiry.
Support : 1310, 1300, 1290 level.
Resistant : 1318, 1325, 1330 level.
Comment :
FKLI drop sharply following a lower regional market closing due negative sentiment intensified on the bleeding Euro zone depts situation that is getting worst. Daily chart shows that market tested the middle Bollinger band support level today and still manage to closed slightly above it with the reading suggesting a side way range bound little upside biased but the upside doesn't looks promising.
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.

20100629 1433 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2380, changed : -20 points, volume : low.
Bollinger band reading : side way range bound downside biased.
MACD Histrogram : getting lower, seller decided to stay put.
Support : 2370, 2350, 2330 level.
Resistant : 2400, 2450, 2470 level.
Comment :
Overnight weaker soy oil and crude oil futures price lead FCPO to opened and traded lower in a tight 10 points range slow volume market. Hourly chart suggesting a side way range bound downside biased market for the near term testing support level.

20100629 1431 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1322 changed : -10 points, volume : moderate.
Bollinger band reading : side way range bound.
MACD Histrogram : getting lower, buyer closing position.
Support : 1318, 1310, 1300 level.
Resistant : 1325, 1330, 1337 level.
Comment :
Negative regional development sentiment spread into FKLI that traded the first session lower on moderate volume transaction. Hourly chart reading shows that market is likely to trade side way range bound testing market underlying strength.

20100629 0933 Global Market & Economic News.

Malaysia - Zeti says inflation isn't a concern
Malaysia’s central bank Governor Zeti Akhtar Aziz said inflation this year will be within the bank’s forecast range and isn’t a concern that needs to be addressed. Malaysia’s economy is gaining momentum as private consumption and investment strengthen, even as events in the US and Europe have led to “uncertainty” for growth. (Bloomberg)

Malaysia - Exports to China surge to USD19.1bn
Malaysia's exports to China in the first five months of this year rose by 82.2% to USD19.1bn (RM61.69bn) compared with the same period last year. With the implementation of the Association of South-East Asian Nations (Asean)-China Free Trade Area (ACFTA), where tariffs of over 90% of the products were cut to zero, Malaysia's trade with China was expected to continue to grow. (Business Times)

China - Surging debt may weaken growth, limit stimulus
China’s efforts to contain the risks from a surge in local-government debt may hurt growth in the world’s third-biggest economy, investment bank China International Capital Corp. said. A report by the chief auditor last week indicated officials may take “relatively forceful measures” including strictly controlling new borrowing. The effect may be to “limit the source of funding for infrastructure projects and affect future economic growth.” (Bloomberg)

China - Strauss-Kahn says yuan revaluation won't occur 'very rapidly'
The revaluation of China’s currency won’t happen quickly or fix all the global economy’s imbalances, International Monetary Fund Managing Director Dominique Strauss- Kahn said. “I do not expect that things are going to change very rapidly. It will take time for the renminbi to reach its normal market value,” he said, using another term for the yuan. (Bloomberg)

US - Two-year yield near 2010 low as G-20 vows to cut deficits
Treasury two-year yields were near the lowest level this year after Group of 20 leaders endorsed targets to cut their budget deficits. US government debt held gains from last week after the G-20 said advanced economies plan to cut their deficits in half by 2013, curbing record debt sales. (Bloomberg) 

U.S : Income gains boost spending, savings in May. Consumer purchases rose 0.2% MoM, after little change the prior month. Incomes climbed 0.4% MoM, and the savings rate increased to the highest level in eight months. (Source: Bloomberg)

Brazil : Rating outlook revised to positive by Fitch, which cited the country's "growth dynamics" and "prudent" policies. Fitch rates Brazil BBB-, the lowest investment-grade rating and in line with rankings from Standard & Poor's and Moody's Investors Service. Fitch last boosted the country's rating in May 2008, taking it up one level from BB+. (Source: Bloomberg)

Japan : Unemployment rate in May rises to 5.2% from 5.1%. The median forecast of 24 economists surveyed by Bloomberg News was for the rate to drop to 5%. (Source: Bloomberg)

Japan : Retail sales in May rise at slowest pace since January, a sign that government incentives to purchase cars and household appliances are fading. Sales advanced 2.8% YoY in May. (Source: Bloomberg)

India : Gasoline price increase may stoke inflation. India?s decision to allow fuel prices to rise may spur the inflation rate by almost a percentage point, the finance ministry said, adding pressure on the central bank to increase borrowing costs. The government on June 25 permitted gasoline prices to be market-determined for the first time since December 2003. Political parties had previously avoided loosening controls to win support from India's 828 million people who live on less than USD 2 a day. Diesel costs are regulated and will eventually be freed, the government said. (Source: Bloomberg)

New Zealand : Business confidence declined in June after the central bank raised interest rates and a sovereign-debt crisis escalated in Europe. A net 38.5% of companies surveyed expect sales and profits will increase over the next 12 months, down from 45.3% in May, according to a survey by ANZ National Bank Ltd. released in Wellington. (Source: Bloomberg)

U.S. growth trimmed on consumer, business spending
WASHINGTON, June 25 (Reuters) - U.S. economic growth was slower than previously reported in the first quarter on lower consumer spending on services, raising concerns the recovery would be too sluggish to bring down unemployment.
Gross domestic product expanded at a 2.7 percent annual rate instead of the 3 percent pace reported last month, the  Commerce Department said in its final estimate on Friday.

Equities, dollar up, G20 has little impact
LONDON, June 28 (Reuters) - World shares rose after a four-day retreat with investors still cautious about global economic recovery but shrugging off the rather neutral conclusion to a weekend G20 leaders' summit.
"There are some legitimate doubts. Government finances in most of the mature economies are really in trouble, so we have to do something about that. But it will probably pressure growth," said Luc Van Hecka, chief economist at KBC Securities.

G20 parts ways in search of lasting recovery
TORONTO, June 27 (Reuters) - World leaders agreed on Sunday to take different paths for cutting budget deficits and making their banking systems safer, a reflection of the uneven and fragile economic recovery in many countries.
In a reversal from the unity of the past three crisis-era Group of 20 summits, the leaders left room to move at their own pace and adopt "differentiated and tailored" policies.

G20 put to test by uneven recovery
TORONTO, June 27 (Reuters) - Recession made the G20 the main forum for managing the world economy last year. Now, the recovery is putting to the test the new sense of common cause that united rich and developing countries.
Meeting in Canada at the weekend, leaders from the Group of 20 struggled to maintain the solidarity they showed during the worst of the downturn last year, when they pumped trillions of dollars into the economy to prevent an even deeper slump.

20100629 0931 Malaysia Corporate News.

Malaysian Mosaics to be privatized
Main Board-listed maker and trader of mosaic and ceramic tiles Malaysian Mosaics may soon be taken private, according to sources. While details of the price or terms of a privatization exercise were not available at press time, it is worth noting that the stock is currently trading at about half of its net tangible asset value. Sources say that a privatization makes sense due as the stock is tightly held. (Financial Daily)

Sunway wins RM129m job from PML Dairies
Sunway Holdings wholly-owned unit Sunway Construction SB has won a RM129m contract from PML Dairies SB to build a dairy product factory in Klang, Selangor. “The proposed project is targeted to be fully completed on 11 July, 2011. It is expected to contribute positively to group earnings for the financial year ending 31 Dec, 2010 onwards,’’ it said. (StarBiz)

UMW denies that oil and gas division sitting on huge losses
UMW told the exchange yesterday that it viewed the RM19.23m losses incurred by its oil and gas operations in the first quarter as a “temporary setback’’. It said the group had a number of greenfield projects that it expected to “show positive results upon commencement in the second half of this year’’. The group categorically denied a report that implied that the division was sitting on huge losses which had not been accounted for and which needed provisions in the next few years. It viewed the report as “baseless allegation and irresponsible’’. (StarBiz)

Atlan : To list in Singapore via RTO. Atlan Holdings Bhd will assume control of Singapore-listed Esmart holdings Ltd in a reverse takeover  (RTO) valued at SGD285.4m (RM662.6m). Atlan would inject 2 subsidiaries, publicly listed DFZ Capital Bhd and private enterprise Darul Metro Sdn Bhd into Esmart in exchange for Esmart shares and warrants. (Source: The Edge Financial Daily)

RHB Capital : EPF to reduce stake in RHB Cap by mid-2011. The Employees Provident Fund (EPF) will pare down its stake in RHB Capital Bhd to 40% from its existing 57% share by mid-2011, said CEO Tan Sri Azlan Zainol. He said they have yet to identify potential buyers. (Source: The Star)

Media Prima : Extends offer for remaining NSTP shares. Media Prima Bhd has extended its voluntary general offer for the remaining shares of subsidiary The New Straits Times Press (Malaysia) Bhd at the same terms (offer price of RM2.40 per NSTP share). Media Prima now owns 89.6% of NSTP. Shareholders of NSTP approved the group's delisting at an extraordinary general meeting (EGM) in Kuala Lumpur yesterday, and NSTP is due to be delisted in 3Q10. (Source: Business Times)

Markets : New blueprint for corporate governance. The Securities Commission (SC) is in the midst of preparing a new blueprint with a 5-year action plan to further enhance corporate governance (CG) standards. The announcement comes in the wake of cases like Kenmark Industrial Co (M) Bhd, which is being investigated following its rapid financial decline, and Linear Corp Bhd's revelation that almost all of its cash was taken out by one director. (Source: Business Times)

Transport : PKFZ bond payments in limbo. Payments to Port Klang Free Zone (PKFZ) bondholders are in jeopardy as the Inland Revenue Board (IRB) has directed the Port Klang Authority (PKA) to remit RM328.4m that is allegedly owed by Kuala Dimensi Sdn Bhd (KDSB) in backdated taxes. (Source: The Edge Financial Daily)

20100629 0924 Soy Oil & Palm Oil News.

Soyoil futures retreated Monday, under pressure from spillover weakness from crude oil futures, a lack of fresh demand news and adjustments in the meal/oil spread relationship. December soyoil settled 0.23 cent, or 0.6%, lower at 37.80 cents per pound. Speculative funds were estimated sellers of 4,000 lots in soyoil.(Source: CME)

Palm oil reaches 1-week high, tracks crude
KUALA LUMPUR, June 28 (Reuters) - Malaysian palm oil futures rebounded to a one-week high, tracking gains in crude oil as tropical storm Alex pressured exports and production in the Gulf of Mexico.
"The palm oil market is trading in line with other oils and it is expected to be good due to better exports this month", said a trader in Kuala Lumpur.

Indonesia's May palm oil exports fall nearly 34 pct y/y
JAKARTA, June 28 (Reuters) - Indonesia's palm oil exports in May fell 33.6 percent from a year ago because of lower palm oil production, the Indonesian Palm Oil Producers Association said on Monday.
Indonesia exported 1.039 million tonnes of palm oil products in May, falling from 1.57 million tonnes in May 2009.
"Most Indonesian producers experienced a low production month in May because of the change in weather. It could be the effect of El Nino last year was only felt this year," Joko Supriyono, secretary general of the association, said.

Argentina says reaches deal with China over soyoil
BUENOS AIRES, June 25 (Reuters) - Argentina has reached an agreement with China to end the Asian nation's freeze on Argentine soyoil imports, the government said on Friday, but some traders were skeptical that the trade dispute had been resolved.
"Thanks to the talks the Argentine government has been holding with China. soyoil exports to China have been normalized," Pablo Lopez, an agriculture ministry spokesman, told Reuters.

Soggy US Midwest crop belt to turn clear next week
CHICAGO, June 25 (Reuters) - The U.S. Midwest crop belt will get a break from weeks of rain next week, giving farmers a chance to finish the tail-end of soybean planting and help fields dry out, giving water-logged crops a boost, a forecaster said Friday.
"The good news is a drier period is coming up," said Joel Burgio, agricultural meteorologist with Telvent DTN.