Wednesday, July 7, 2010

20100707 1821 FCPO EOD Daily Chart Study.

FCPO closed : 2270, changed : -31 points, volume : lower.
Bollinger band reading : downside biased.
MACD Histrogram : getting lower, seller extending exposure.
Support : 2270, 2250, 2230 level.
Resistant : 2300, 2330, 2350 level.
Comment :
Lack of buying interest due to negative sentiment FCPO fall lower as market dominated mostly by seller activities in lesser volume traded. Daily chart wise, market closed below lower Bollinger band level right at 2270 support level with continue downside biased market reading and possible pullback correction to take place soon.
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.

20100707 1740 FKLI EOD Daily Chart Study.

FKLI closed : 1304.5 changed : -7 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : turned downward, seller defending.
Support : 1300, 1290, 1285 level.
Resistant : 1310, 1318, 1325 level.
Comment :
Seller still holding on position FKLI closed lower in reduced volume transaction despite cash market having positive closed doing 6 points discount. Daily chart shows that market having side way range bound market reading testing support and resistant level.
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.

20100707 1306 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1301 changed : -10.5 points, volume : high.
Bollinger band reading : side way range bound.
MACD Histrogram : weakening, seller defending position.
Support : 1300, 1290, 1285 level.
Resistant : 1310, 1318, 1325 level.
Comment :
FKLI traded lower in sustaining volume following a weaker major Asia market development doing 4.5 points discount compare to cash market. Hourly chart show that market is testing lower support level near middle Bollinger band with a side way range bound reading.

20100707 1257 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2290, changed : -11 points, volume : moderate.
Bollinger band reading : side way downside biased.
MACD Histrogram : getting higher slowly, seller still in control.
Support : 2270, 2250, 2230 level.
Resistant : 2300, 2330, 2350 level.
Comment :
Better volume FCPO traded in tight range market and settle lower for the first session without form direction. Hourly chart wise, the reading suggesting a side way range bound downside biased market.

20100707 1152 Global Economic News.

Philippines: Inflation slows, giving room on rates
Philippine inflation slowed for a second month in June, giving the central bank room to keep its key interest rate at a record low to help President Benigno Aquino boost economic growth. Consumer prices rose 3.9% from a year earlier, easing from 4.3% in May, National Statistics Office said in Manila. The median estimate of 12 economists surveyed by Bloomberg News was for a 4.3% gain. (Bloomberg)

Japan: Economy index falls for first time in 14 months
Japan’s broadest indicator of economic health dropped for the first time in 14 months, signaling the recovery is losing momentum after rebounding from the worst postwar recession. The coincident index, a composite of 11 indicators including factory production and retail sales, fell to 101.2 in May from 101.3, the Cabinet Office said in Tokyo. (Bloomberg)

Australia: Stevens raises bar on further interest-rate rises
The Reserve Bank of Australia signaled it is prepared to refrain from further interest-rate increases in coming months as signs mount that economies around the world will slow. Central bank Governor Glenn Stevens yesterday kept the benchmark cash rate at 4.5% for a second month, even as he forecast inflation will accelerate above the top of his 2% to 3% target range. He also dropped a reference to the level of rates being appropriate for the “near term.” (Bloomberg)

US: Service industries expand less than forecast
Service industries in the US expanded in June at a slower pace than forecast, indicating the economy was beginning to cool entering the second half. The Institute for Supply Management’s index of non-manufacturing businesses, which covers about 90% of the economy, fell to a four-month low of 53.8 from 55.4 in May. The June figure was less than the median forecast of 55 in a Bloomberg News survey. (Bloomberg)

20100707 1144 Malaysia Corporate News.

Government proceeds with feasibility study on MRT
The Government has appointed two independent engineering firms to carry out a feasibility study on the proposed RM36bn mass rapid transit (MRT) project jointly proposed by Gamuda and MMC Corp. The Edge Financial Daily learned that the Government has appointed Minconsult SB and Canadian-based Andercon Technologies Ltd to conduct the study. The appointment of independent consultants to undertake the feasibility study has raised expectations that the Government will likely accept the Gamuda-MMC proposal. (Financial Daily)

BCorp inks deal in Xinan
Berjaya Corp (BCorp) has signed a concession agreement with the Xinan Public Asset Investment Co Ltd (XPAI) to construct two wastewater treatment plants in Xinan County, China for 200m renminbi (about RM97m). Under the deal inked on 5 July, BCorp will build, operate and maintain the proposed Jinben industrial wastewater treatment plant and Jiangnan New District sewage treatment plant for 25 years and then transfer the rights back to XPAI. Construction works on the Jinben plant are expected to start next year and that of the Jiangnan plant in 2012. Both plants are slated to be completed within a year. (BT)

Bina Puri yet to get letter of award for LCCT
Bina Puri Holdings said it has yet to receive the letter of award for the third package of Malaysia Airports Holdings’ (MAHB) new low-cost carrier terminal (LCCT) worth close to RM1bn. “However, we are liaising with MAHB. We expect to receive the letter of award soon. We will make the necessary announcement if and when we receive the letter of award,” it told Bursa Malaysia yesterday. (BT)

PLUS gets green light for fourth lane
PLUS Expressways said its subsidiary, Projek Lebuhraya Utara-Selatan (PLUS), has received nod from the Government to undertake the construction of the fourth lane along certain stretches of the North-South Expressway and the New Klang Valley Expressway. They are Shah Alam to Rawang, Shah Alam to Jalan Duta and a section from Nilai (North) to Seremban. The construction cost is estimated at RM1.143bn. PLUS Expressways said details of the funding for the proposed fourth lane widening works are currently under review and being discussed with the government, and are subject to the approval of the government, bondholders/lenders and the board of PLUS and/or PLUS Expressways. (BT)

Top Glove settles claims with Tillotson
Top Glove Corp said both the group and US based Tillotson Corp have agreed for a settlement whereby all claims in the latter's action against Top Glove’s three subsidiaries — Top Glove SB, TG Medical SB and TG Medical (USA) Inc, and all counterclaims in this action against Tillotson, will be dismissed with each party to bear its own costs, expenses and attorney’s fees. In a filing to Bursa Malaysia, Top Glove said the settlement will not have any material or adverse impact on the financial performance and net asset of the Top Glove group. (BT)

Lion Industries in tripartite venture for RM30m slag processing plant
Lion Industries Corp has proposed to partner two foreign steel firms to set up a RM30m slag processing and metal extraction plant at its existing facility in Banting, Selangor. “Under the proposed joint venture, Lion Industries will be able to benefit both as a shareholder and from having its steel mills recover iron metal from its slag at lower than market price,” it told Bursa Malaysia yesterday. The joint venture with US-based Tuner Industry & Trade Corp and Bichain Trading Co Ltd of Taiwan would start in the second half of this year. (StarBiz)

Tesco among bidders for Carrefour units
UK’s Tesco Plc, Japan’s Aeon Co, Hong Kong’s Dairy Farm International Holdings Ltd and Thailand’s Big C Supercenter Pcl may be putting in bids for Carrefour SA’s Malaysia, Singapore and Thailand assets, Bloomberg reported, quoting sources. It also said South Korea’s Lotte Group was earlier approached to make a bid. According to the sources, Carrefour has approached potential buyers and may ask for bids by early September and the combined operations could fetch USD800m to USD1bn. Sources said the world’s second largest retailer would consider selling the units separately as potential buyers might not be interested in bidding for all three combined. (StarBiz)

20100707 1122 Soy Oil & Palm Oil Related News.

Soyoil futures ended lower, backpedaling from earlier gains on spillover pressure from a late drop in soybean futures. The market was initially buoyed by strength in energies and news of a 40,000 ton sale of U.S. soyoil to China, analysts said. However, without the support of soybeans coupled with ample world supplies, futures failed to hold the gains into the close. December soyoil settled 0.18 cents or 0.5% lower at 36.69 cents per pound.(Source: CME)

Palm extends drop, stays at 7-½   month low
JAKARTA, July 6 (Reuters) - Malaysian crude palm oil fell for a third straight day as concerns over demand and an absence of new leads to trade kept the market at a seven-and-a-half-month low since last Friday.
"There is no strong fundamental factor to support the market. Crude oil is weak, so everything looks gloomy," said a trader with a foreign brokerage in Kuala Lumpur.

Rains delay end of Argentine soy harvest - govt
BUENOS AIRES, July 5 (Reuters) - Rains in Argentina's soy-producing areas delayed the last stage of the crop's 2009/2010 harvest, which is set to reach a record 54 million tonnes, the Agriculture Ministry said in its latest report.
The South American country is the world's top exporter of soymeal and soyoil and the No. 3 supplier of the grain.

Monsanto settles Argentine soy import case
BRUSSELS, July 5 (Reuters) - Monsanto  has withdrawn a legal complaint against European importers of processed soybean meal from Argentina, which the company had claimed breached the EU patent on its Roundup Ready soybean seeds.
Monsanto -- the world's largest seed company -- settled its case against Dutch importer Cefetra and commodities traders Alfred C. Toepfer International, shortly before a European Court of Justice (ECJ) judgement in the case was due on July 6.