Monday, July 5, 2010

20100705 1303 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1300 changed : -5.5 points, volume :low.
Bollinger band reading : downside biased with potential correction.
MACD Histrogram : getting weaker, seller in charge.
Support : 1300, 1290, 1285 level.
Resistant : 1310, 1318, 1325 level.
Comment :
Weaker FKLI closed for lunch right at the support level with lower volume 7 point range market. Hourly chart shows that price dropped and closed below lower Bollinger band potentially trigger and pullback correction within a downside biased reading.
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.

20100705 1253 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2324, changed : -11 points, volume : low.
Bollinger band reading : downside biased and possible pullback.
MACD Histrogram : recovering, seller taking partial profit.
Support : 2300, 2270, 2250 level.
Resistant : 2350, 2370, 2400 level.
Comment :
Thin trading volume 12 points range market FCPO traded weaker as negative sentiment still haunting market due to global economy recovery concern. Hourly chart outlook shows that market is trading in a downside biased market with possible pullback correction.
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.

20100705 1106 Local & Global Economy News.

Malaysia: May exports rise at slowest pace in 3 months
Malaysia’s exports rose at the slowest pace in 3 months as sales to Europe and China eased, adding to evidence the region’s rebound may have peaked. Overseas shipments rose 21.9% in May from a year earlier to RM52.3bn after gaining 26.6% in April. (Bloomberg)

China: Raises 2009 growth estimated to 9.1% from 8.7%
China, the world’s third largest economy, raised its estimate for growth in 2009 to 9.1% from 8.7% as output by industrial and services companies increased at a faster pace. The expansion put the value of GDP at RMB34.0tn, suggesting Japan retained its position as the second largest economy with economic output of USD5.1tn. (Bloomberg)

Hong Kong: Retail sales rise 19.7% on record visitors
Hong Kong’s retail sales rose for a ninth month in May as a record number of tourists to the city supported spending. Sales grew 19.7% to USD3.3bn from a year earlier, after gaining a revised 15.5% in April. Visitor arrivals jumped 39% in May from a year earlier to a record 2.8m. (Bloomberg)

Australia: Mineral resource rent tax rate to be 30% Australia will charge a 30% mineral resource rent tax as part of its agreement with industry, according to a press release from Prime Minister Julia Gillard. (Bloomberg)

Indonesia: May hold interest rate, bucking Asian trend
Indonesia may keep interest rates unchanged for an 11th straight month, bucking a trend from Taiwan to India, as policy makers judge they have time to strengthen economic growth before acting to stem inflation. Bank Indonesia will leave its reference rate unchanged at 6.5% on 5 July, according to survey conducted. (Bloomberg)

US: Insufficient jobs set the stage for slowdown in recovery The US recovery is poised to slow in the second half of 2010 after smaller-than-forecast growth in private payrolls for June capped a month of data indicating weakness in industries from housing to manufacturing. Employment fell by 125,000 workers, the first drop this year, reflecting government census cutbacks, while companies added 83,000 payrolls. (Bloomberg)

US: Orders to factories declined in May more than forecast Orders placed with US factories declined in May more than forecast, a sign that manufacturing may be starting to cool. The 1.4% decrease in bookings was the biggest since March 2009 and followed a revised 1% gain in April. Economists forecast orders would drop 0.5% previously. (Bloomberg)

Ukraine : Agrees new USD 14.9b IMF loan arrangement. The Washington-based lender's Executive Board will make a final decision by late July, the IMF said in an e-mailed statement. (Source: Bloomberg) 

20100705 1101 Malaysia Corporate News.

Goldstar to pay legal cost of RM1.5m to Proton Automobiles
Goldstar Heavy Industries Co Ltd has been ordered and directed by the Arbitration Tribunal to pay SGD655,056.33 (RM1.52m) in legal and arbitration costs to Proton Automobiles (China) Ltd (PAC). The Tribunal has made the final award in respect of costs after considering all evidence and submissions of both PAC and Goldstar, according to a statement by Proton Holdings Bhd. (Malaysian Reserve)

Hovid: Default no impact on unit
Hovid Bhd has clarified that the default in some loans by 58.2%-owned subsidiary Carotech Bhd has no impact on the company. “The default in loans by Carotech happened solely at Carotech and it has no legal implication on Hovid as Hovid has not provided any guarantee for the loans of Carotech. Additionally, Hovid does not have any financial obligation to Carotech,’’ it said in statement to Bursa Malaysia yesterday. Hovid and its other subsidiaries, excluding the Carotech Group, are not in default of any of their respective loan obligations. (StarBiz)

Putrajaya Perdana gets RM321m job
Putrajaya Perdana Bhd was awarded a contract worth RM321.5m by The Intermark Sdn Bhd to complete a hotel and commercial redevelopment project in Kuala Lumpur. “The contract period for the project is 23 months, that is to commence on 14 July and to complete by 15 June, 2012,” the company told Bursa Malaysia yesterday. It said the project was expected to contribute positively to the earnings and net assets of the group for the financial years ending 31 Dec, 2010 to 2012. (StarBiz)

Iskandar gets RM4.6bn in new investments
Iskandar Malaysia (IM) has received RM4.62bn new investments in the first five months of the year in the manufacturing, services and information and communication technology (ICT) sectors. Iskandar Regional Development Authority (IRDA) chief executive officer Ismail Ibrahim said the investments were made by both locals and foreigners. He declined to divulge the identity of the investors and the countries, saying only that they would be made known to the press at the appropriate time. (StarBiz)

CDRC action adds to LCL’s setback
LCL Corp Bhd suffered another setback after the Corporate Debt Restructruing Committee (CDRC) “terminated LCL Corp’s admission” for failing to submit a revised regularisation plan for its review. In February, LCL had applied to CDRC for help to mediate negotiations between the company and its financial creditors on loans amounting RM400m. LCL had defaulted on the loans because the interior fit-out firm was unable to collect payments for work done from clients in Dubai. On 3 March, LCL said CDRC had agreed to assist the company, provided that it could come out with a regularisation plan within six months. “As the result of the withdrawal of Axis Global Capital Sdn Bhd as potential white knight for the proposed regularisation plan, CDRC has terminated LCL’s admission with effect from 1 July since LCL is unable to submit a revised plan for CDRC’s assessment,” LCL said yesterday. (StarBiz) 

Automotive: Perodua  to maintain at least RM140m capex for 2011. Perusahaan Otomobil Kedua Sdn Bhd (Perodua) may set aside RM140m for capital expenditure next year as the company expands its geographical reach, and positions itself for more vehicle orders. (Source: The Edge Financial Daily)

KFH: Buys 30% of S'pore's Pacific Healthcare. Kuwait Finance House (Malaysia) Bhd, through its third party private fund Al Faiz Fund 1 Ltd, has acquired a 30% stake in Singapore-listed Pacific Healthcare Holdings Ltd, one of the largest specialist medical groups in Singapore. Kuwait Finance House believes it can turn around Pacific Healthcare by year-end and by 2011. (Source: Business Times)

Ngiu Kee: a PN17 company. Ngiu Kee Corp (M) Bhd has been categorised as a Practice Note No 17 (PN17) company, according to Bursa Malaysia Securities. (Source: The Star)

Markets: Changes to takeover rules in few months. The proposed changes to takeover rules by the Securities Commission (SC) will be announced in a few months as they are being bundled together with other investor protection initiatives. (Source: The Star)

TM: Sets UniFi connection target for premises. Telekom Malaysia Bhd (TM) expects 6% to 8% of the 750,000 premises to be connected to UniFi by year-end, to become subscribers. The company added 18 new UniFi coverage areas yesterday from 4 initially. The target is to have a total of 48 sites, mainly in the Klang Valley by year-end. Signed in September 2008, the RM11.3b HSBB project is a Public-Private-Partnership agreement between TM and the Government. TM plans to spend RM2b for HSBB project this year. (Source: The Star)

20100705 0934 Soy Oil & Palm Oil Related News.

Soyoil futures edged higher, holding firm on technical buying and support from recent demand. The market managed to stabilize despite spillover weakness from crude oil, as Thursday's bounce off recent lows provided some encouragement to buyers ahead of the weekend, analysts said. December soyoil settled 0.15 cent, or 0.4%, higher at 36.87 cents per pound.(Source:CME)

China slowdown fears push palm to new 7 1/2-mth lows
KUALA LUMPUR, July 2 (Reuters) - Malaysian crude palm oil futures hit a fresh seven-and-a-half month low on Friday as sentiment was dampened by concerns that China, a major importer of palm oil, could slow purchases amid an economic slowdown.
"China's demand on palm oil in July and August could drop 20-30 percent compared to the same period last year," said a trader with Shanghai-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.

Argentine record soy harvest ends - exchange
BUENOS AIRES, July 1 (Reuters) - Argentina's 2009/10 soy harvest closed with a record 55 million tonnes this week, due to plentiful rains that boosted yields in most of the country's farming areas, Buenos Aires Grains Exchange said on Thursday.
The soy harvest breaks a record set in the 2007/08 season by 7 million tonnes, the weekly report said.