Friday, July 2, 2010

20100702 1840 FCPO Weekly Chart Study.

Weekly Close: 2335, High: 2410, Low: 2328, Range: 82 points
FCPO closed : 2335, changed : -49 points, volume : improved.
Bollinger band reading : downside biased.
MACD Histrogram : continue lower, seller defending well.
Support : 2300, 2240, 2200 level.
Resistant : 2350, 2400, 2450 level.
Comment :
Slightly improved volume and wider range market FCPO continue to trade lower for the week due to a weaker world commodity price and unexciting export data figures.Weekly chart wise witness a follow through confirmation of double top break down with the reading suggesting a further downside biased market.

20100702 1838 FCPO EOD Daily Chart Study.

FCPO closed : 2335, changed : -11 points, volume : lower.
Bollinger band reading : downside biased with potential pullback.
MACD Histrogram : getting lower, seller in control.
Support : 2330, 2300, 2270 level.
Resistant : 2350, 2370, 2400 level.
Comment :
Continue weaker FCPO traded in worrying volume narrow range market. Daily chart candle traded and closed entirely below of lower Bollinger band with a downside biased reading follow by potential pullback correction to take place in the near term.
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.

20100702 1814 FKLI Weekly Chart Study.

Weekly Close: 1305.5, High: 1334.5, Low: 1301.
FKLI closed : 1305.5 changed : -19.5 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : turned lower again, seller returned for a rematch.
Support : 1300, 1270, 1250 level.
Resistant : 1310, 1335, 1350 level.
Comment :
FKLI registered a lower closed week on week with lesser volume traded with price closed below middle Bollinbger band level. Weekly chart outlook turned into a side way range bound reading testing support and resistant level.

20100702 1812 FKLI EOD Daily Chart Study.

FKLI closed : 1305.5 changed : +2.5 points, volume :lower.
Bollinger band reading : side way range bound.
MACD Histrogram : getting lower, seller taking exposure.
Support : 1300, 1290, 1285 level.
Resistant : 1310, 1318, 1325 level.
Comment :
8 points range weaker volume market FKLI ended with minor recovery after traded range bound through out the day. Daily chart outlook remained side way range bound testing support and resistant level with a just nearly 2 points discount compare to cash 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.

20100702 1414 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1307 changed : +4 points, volume : low.
Bollinger band reading : side way range bound downside biased.
MACD Histrogram : getting higher, seller taking profit.
Support : 1300, 1290, 1285 level.
Resistant : 1310, 1318, 1325 level.
Comment :
FKLI recovered slightly in weaker volume traded doing on par with cash market. Hourly chart seems moving side way ranging within a 9 points range market with the reading suggesting a side way range bound downside biased market.

20100702 1406 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2336, changed : -10 points, volume : low.
Bollinger band reading : side way downside biased.
MACD Histrogram : reverse upward, seller taking profit.
Support : 2330, 2300, 2270 level.
Resistant : 2350, 2370, 2400 level.
Comment :
Continue weaker FCPO traded in quiet volume tight range market in tandem with a weaker commodities price.
The hourly chart seem hovering along the lower Bollinger band level that once tested below but recover quickly to closed above immediate 2330 support level. Outlook still remained unchanged with a side way range bound downside biased reading.

20100702 1027 Local & Global Economic News.

Malaysia: Export growth likely to slow down in May
Malaysia’s robust export growth so far this year is likely to slow in May following Europe's austerity measures and weaker demand from China. Exports could grow by 25.75%, according to a poll of economists, down from April's 26.6%. Imports are forecast to grow by an average of 32.19% while the trade balance could average 10.41%. (BT)

China: Manufacturing slows for second month, PMI shows
China’s manufacturing growth slowed more than economists forecast in June, adding to signs that the world’s fastest-growing major economy is cooling. The government’s Purchasing Managers’ Index declined for a second month, falling to 52.1 from 53.9 in May. The median forecast in a Bloomberg News survey of 12 economists was 53.2. (Bloomberg)

US: Construction spending in US falls for first time in 3 months
Construction spending in the US fell in May for the first time in three months as homebuilders cut back and work on factories and transportation structures decreased. The 0.2% drop was less than forecast and brought spending down to USD841.9bn, Commerce Department figures showed. The government revised the April increase down to 2.3%, less than previously estimated. (Bloomberg)

US: Manufacturing, claims point to slowdown
Reports on US manufacturing, employment and home sales pointed to slower growth in the second half of the year, just as government spending to stimulate the economy begins to wane. The Institute for Supply Management’s manufacturing gauge fell more than forecast to 56.2 last month from 59.7 in May. A reading greater than 50 points to expansion. (Bloomberg)

Growth worries undermine stocks, commodities
LONDON, July 1 (Reuters) - World stocks fell to three-week lows and commodity prices sagged after data showing China's rapid growth was losing steam added to worries about the strength of the global economic recovery.
"There's a bit of relief in the market that some of the worries about funding concerns in Europe may be overdone," said Nick Stamenkovic, strategist at RIA Capital Markets.

China economy cools as tightening bites; markets swoon
BEIJING, July 1 (Reuters) - The pace of Chinese manufacturing growth slowed in June as government steps to cool the property market and curb bank lending combined with a faltering global recovery to dampen sentiment.
Two indexes based on polls of purchasing executives released on Thursday fell, but they showed an expected moderation in the world's third-largest economy and not the precipitous drop that some investors have feared: both gauges remained above the threshold of 50 that demarcates expansion from contraction.

Japan business mood best in 2 yrs, outlook murky
TOKYO, July 1 (Reuters) - Big Japanese manufacturers turned optimistic for the first time in two years in the April-June quarter and forecast a rise in capital spending plans in a sign that a slow economic recovery is taking hold.
The Bank of Japan tankan of more than 11,000 companies also showed optimism among big manufacturers would grow further in the current quarter, although analysts said the report may not have accounted fully for a sharp drop in Japanese stocks between April and June and a rally in the yen to a two-month high against the dollar.

Moody's puts Spain top rating on review for cut
MADRID/NEW YORK, June 30 (Reuters) - Moody's Investors Service said on Wednesday it is reviewing Spain's ratings and may lower them by as much as two levels due to sliding growth expectations and mounting fiscal challenges.
The rating's agency, the only major agency that still maintains a top rating for Spain, said it was conducting a three-month review of the country's Aaa local and foreign currency government bond ratings.

China may use export taxes to cull own industries
CHENGDU, China, July 1 (Reuters) - China, which helped its heavy industry survive the financial crisis by lowering barriers to exports, is now considering hitting the same exports with a tax to discourage rampant production that uses too much energy.
Fan Jianping, a top government analyst, said China is likely to impose export taxes on steel and base metals and their products in the next five years and classify them as industries serving domestic consumption. The goal would be to limit production capacity and to cut energy use and carbon emissions.

LME stocks show demand, but summer downturn seen
LONDON, June 30 (Reuters) - London Metal Exchange stocks are falling while the share earmarked for delivery is rising, but these signs of strong demand for metals are having little impact on price as the market looks to a downturn ahead, analysts said.
The drop in overall inventories and rise in cancelled warrants -- material earmarked for delivery -- have long been factored into prices, analysts said on Wednesday.

20100702 1026 Malaysia Corporate News.

Fortis offers RM7.4bn for remainder of Parkway
Fortis Healthcare Ltd, India’s second-biggest hospital operator, offered about SGD3.2bn (RM7.42bn) for the rest of Singapore’s Parkway Holdings Ltd, topping a partial bid by Malaysia’s sovereign wealth fund. Fortis said it will pay SGD3.80 (RM8.815) a share in cash for the 74.73% it doesn’t already own in Parkway, Asia’s largest hospital operator. That’s 0.5% more than the SGD3.78 a share bid by Khazanah Nasional Bhd, which made a partial offer to more than double its stake at 51.5%. Parkway shares closed at SGD3.57 yesterday and were halted from trading. (Malaysian Reserve)

Genting Malaysia plans to acquire Genting UK’s ops
Genting Malaysia Bhd (GENM) plans to acquire Genting Singapore PLC’s casino operations in the United Kingdom (Genting UK) for a total cash consideration of approximately RM1.67bn. In a statement to the exchange yesterday, its president and COO Datuk Lee Choong Yan said the acquisition is subject to the necessary regulatory approvals being obtained fro Bank Negara Malaysia and the British Gambling Commission, as well as approval from the company’s non-interested shareholders at an EGM to be convened (Malaysian Reserve)

Gaming duty up 2% effective June
The Government has raised the betting duty on gaming companies to 8% from 6% previously, with retrospective effect from last month. The listed gaming companies – Tanjong plc, Multi Purpose Holdings (MPHB) and Berjaya Sports Toto (BToto) – made the announcement on Bursa Malaysia yesterday. (Financial Daily)

Selangor to ink river rehab project pacts
The Selangor state government is expected to sign Points of Agreement (POA) with companies it has appointed to rehabilitate and develop the Klang river within the next two months. The Selangor government had earlier appointed three companies to carry out the Klang River rehabilitation project that is expected to attract RM50bn worth of investments. The companies are TSS-Mako Engineering Sdn Bhd, GJA Engineering and Construction, and Wessex Water I-Bhd Consortium. It is estimated that the entire clean-up and rehabilitation of the 120km long river will take 15 years to complete. Cleaning up the river will take place within the first two to three years, involving RM1bn for treatment and another RM1bn for development. (BT)

Faber not aware of UEM plan to divest
Faber Group Bhd said it has no knowledge of any proposal by major shareholder UEM Group to divest its stake in the company, it told Bursa Malaysia yesterday. It was responding to a news article that said UEM Group may dispose of its stake in the healthcare and property development company. (BT)

20100702 1000 Soy Oil & Palm Oil Related News.

Soyoil futures stumbled Thursday, succumbing to speculative selling. The combination of spillover weakness from tumbling crude oil futures, meal/oil spreading and a large build up of supplies overshadowed a supportive sale of U.S. soyoil to China, Prime Ag Consulting analyst Chad Henderson said. Crude oil influences soyoil due to its use in making renewable fuels. December soyoil settled 0.45 cent, or 1.2%, lower at 36.72 cents per pound.(Source: CME)

Malaysia CPO Output Growth To Slow, Miss Target-Minister(Source: CME)
Malaysia's crude palm oil output this year will likely fall below a previous forecast as unusually wet weather caused by the La Nina weather development may damage crops and reduce yields, Plantation and Commodities Minister Bernard Dompok said Thursday.
Dompok told Dow Jones Newswires via email that he is revising his forecast for Malaysian CPO output to 17.8 million metric tons this year from a previous prediction of 18.1 million tons due to concerns over the likelihood of unusually wet weather in the second half of the year. Malaysia produced 17.6 million tons of CPO last year.
Dompok didn't give a prediction for CPO prices but slower production growth in Malaysia, the world's second-biggest palm oil producer, could provide a floor for the market that has seen a 13% fall in prices since the start of the year. CPO futures prices have been pressured by a record soybean crop in South America which narrowed the price gap between the two vegetable oils, making soyoil a cheaper alternative in some cases.
Wet weather may curb output towards the end of this year, Dompok said, even though total planted area has risen by 2.8% to 4.82 million hectors so far and yields rose slightly to 19.26 tons per hector from 19.20 tons in 2009.
The La Nina weather condition, associated with cooler-than-average sea surface temperatures in the Pacific ocean, may affect crop development as it usually results in above-average rainfall in Malaysia and Indonesia.
While oil palm trees thrive in moist conditions, rising soil moisture can reduce yields. Floods and heavy rainfall also slow harvesting and make transportation of fresh fruit bunches and extracted oils more difficult.
Plantation company executives said part of the slowdown in Malaysian production growth has been caused by labor woes. Improved wages in Indonesia are luring back Indonesian plantation workers while Malaysian companies are finding it difficult to bring in new workers because of recently tightened work-permit rules.
But the government's recent decision to review some of the work-permit provisions may help ease the labor shortage and stem a fall in productivity, said Dompok.

Palm oil down, China slowdown worries weigh
KUALA LUMPUR, July 1 (Reuters) - Malaysian crude palm oil futures fell more than 1 percent , tracking volatile crude oil and equity markets, on signs China's economic growth was slowing.
"The market is still very weak and prices are temporarily moving sideways to downward," said a trader with Kuala Lumpur based-foreign brokerage.

Monsoon soaks India soybean area after June lag
NEW DELHI, July 1 (Reuters) - India's vital monsoon rains revived in the soybean-growing central region on Thursday, after a two-week lag that reduced June rainfall to 16 percent below normal, the second lowest in 15 years.
Heavy showers in the central Madhya Pradesh state would accelerate soybean planting in the world's top importer of edible oils and ease growing nervousness about monsoon rains.

USDA corn data a reality check for soy/corn spread
CHICAGO, June 30 (Reuters) - A shocking drop in U.S. corn stockpiles and smaller-than-expected 2010 corn plantings data on Wednesday jolted Chicago Board of Trade grain traders and immediately shrank a popular, benchmark "spread" trade.
The price ratio between CBOT new-crop November soybeans  and new-crop December corn  is a traditional key for futures traders, farmers and grain users to watch.