Thursday, July 8, 2010

20100708 1828 FCPO EOD Daily Chart Study.

FCPO closed : 2290, changed : +20 points, volume : higher.
Bollinger band reading : correction downside biased.
MACD Histrogram : reversed upward, seller profit taking.
Support : 2270, 2250, 2230 level.
Resistant : 2300, 2330, 2350 level.
Comment :
Tracking improved soy oil futures price FCPO ended the day higher recovering most of yesterday losses in better volume traded. Daily chart shows that pullback correction take place today after yesterday over extended dropped with still 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.

20100708 1820 FKLI EOD Daily Chart Study.

FKLI closed : 1317.5 changed : +12 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : reversed upward, buyer returned and seller retreating.
Support : 1310, 1300, 1290 level.
Resistant : 1318, 1325, 1330 level.
Comment :
FKLI registered a higher closed following major regional market in decreasing volume traded doing 1.5 point premium to cash market. Daily chart wise, today candle closed right at middle Bollinger band resistant turned support level with the outlook remained side way range bound testing support and resistant. Meanwhile Bank Negara Malaysia just announced a rate hike of 25 basis points to 2.75 % for overnight policy rate. Let see how market react the the news tomorrow.
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.

20100708 1751 Malaysia Economic News.

-Bank Negara Malaysia has raised its key overnight policy rate by 25 basis points to 2.75% Thursday--its third hike this year--but will indicate there won''t be further hikes given heightened external risks, a person familiar with the matter said. Bank Negara is expected to release the policy rate decision at 1000 GMT today.

20100708 1554 Global Market News.

Asian stocks gain, euro climbs to 2-mth high
TOKYO, July 8 (Reuters) - The euro surged to a two-month high and Asian stocks climbed to their highest in more than a week after a bullish forecast fuelled optimism about the coming U.S. earnings season and underpinned growing tolerance for risk.
"It could easily be viewed as a bounce from an oversold market in equities and risk appetite, and most people will see it in that light," said Greg Gibbs, a currency strategist at Royal Bank of Scotland in Sydney.

20100708 1303 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1317.5 changed : +13 points, volume : moderate.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : turned downward, seller retreat as buyer counter attack.
Support : 1310, 1300, 1290 level.
Resistant : 1318, 1325, 1330 level.
Comment :
Overnight surged US market plus reacted positive regional markets lead FKLI to ended the first session higher with better volume transacted. Hourly chart wise, market opened higher and traded side way range bound within 7.5 points range with the reading suggesting a side way upside biased market.

20100708 1252 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2300, changed : +30 points, volume : low.
Bollinger band reading : side way range bound downside biased.
MACD Histrogram : rising higher, seller book in profit as buyer shows interest.
Support : 2300, 2270, 2250 level.
Resistant : 2330, 2350, 2370 level.
Comment :
FCPO rebounded higher in softer volume traded following overnight soy oil rallied upward to 1 week high.
Hourly chart shows that market opened gap up and traded side way doing pullback correction after recent price fall with the reading suggesting a side way range bound downside biased market.

20100708 1031 Global Economic News.

U.S : MBA mortgage applications index increased 6.7% WoW last week. The Washington-based group's refinancing gauge jumped 9.2% WoW to the highest reading since May 2009, and its index of purchases fell 2% WoW to the second-lowest level since 1997. (Source: Bloomberg)

E.U : Stress tests will cover 91 banks, assume bond drop. European Union regulators are carrying out stress tests for 65% of the area's banking industry, to examine whether they can withstand a shrinking economy and a drop in government bond values. The lenders being tested include 14 from Germany, six from Greece and four from the U.K. EU banking regulators have told lenders that their planned stress tests may assume a loss of about 17% on Greek government debt and 3% on Spanish bonds, according to two people briefed on the talks. (Source: Bloomberg)

E.U : Exports and state spending led 1Q10 expansion offsetting declines in company investment and household consumption. Exports from the 16 nations using the euro increased 2.1% QoQ, when they rose 1.8%QoQ, while state spending increased 0.2%QoQ. (Source: Bloomberg)

China : Seeks to tighten liquidity even as growth slows. The People's Bank of China (PBOC) signaled it remains focused on reining in liquidity and stemming inflation even after evidence of slowing growth in the world's third-biggest economy contributed to a global stock sell-off. (Source: Bloomberg)

China : Plans new resource tax in restive western areas. China plans to impose a tax on coal, oil and gas extraction in western provinces, raising funds to develop its most restive region in a move that will reduce profits for PetroChina Co. and rival resource producers. The tax, introduced in Xinjiang last month, will be broadened to include all western provinces, the government said in a statement, citing comments by Premier Wen Jiabao. The levy will be based on prices instead of volume as first announced, the government said on its website. (Source: Bloomberg)

Australia : April construction shrinks at fastest pace in 10 months, a sign the most aggressive round of interest rate increases among Group of 20 members is eroding demand for new dwellings. The index fell 6.8 points to 46.4 from May, according to a survey by the Australian Industry Group and Housing Industry Association. (Source: Bloomberg)

China: Seeks to tighten liquidity even as growth slows
The People’s Bank of China signaled it remains focused on reining in liquidity and stemming inflation even after evidence of slowing growth in the world’s third-biggest economy contributed to a global stock sell-off. A surfeit of cash is still the main problem facing monetary policy, and PBOC should at an appropriate time use interest rates to address it, Yang Guozhong, director of the bank’s business management department said. (Bloomberg)

South Korea: Bank of Korea to debate timing rate increase as growth quickens
Bank of Korea policy makers will probably debate the timing of the first interest-rate increase since the global crisis as strengthening economic growth threatens to spur inflation. Four of 14 economists in a Bloomberg News survey predict the central bank will execute a quarter-point increase in the 2% benchmark rate this week, while the remainder anticipates Governor Kim Choong Soo will hold off until August or later in the year. (Bloomberg)

EU: Exports, government spending lead expansion
Exports and government spending helped sustain Europe’s recovery in the first quarter, offsetting declines in investment and household consumption. Shipments abroad from the 16 nations using the euro increased 2.1% from the fourth quarter, when they rose 1.8%, while state spending advanced 0.2%. Stockpiling also helped the economy, with changes in business inventories adding 1 percentage point to growth in the first quarter, when gross domestic product rose 0.2%, matching a 4 June estimate. (Bloomberg)

EU: Trichet faces market rate threat as debt crisis hurts growth
European Central Bank President Jean-Claude Trichet is facing higher interest rates sooner than he may have planned. Interbank borrowing costs have been climbing since financial institutions had to pay back a record EUR442bn (USD557bn) ECB loan on 1 July, threatening to hurt the economy just as investors fret about the health of the banking system and the ongoing sovereign debt crisis. (Bloomberg)

US: Retailers’ sales rise at fastest pace in 4 years
US retailers’ sales are growing at the fastest pace in four years, a sign that consumers may be overcoming concern about unemployment and depressed home value. Sales probably expanded at an average monthly rate of 4% in the first five months of the retail fiscal year that began on 31 Jan, the biggest gain since 2006, the International Council of Shopping Centers trade group said in advance of its June report. (Bloomberg)

US: Obama says US increasing access to export financing
President Barack Obama said his administration is increasing access to export financing for small and mediumsized US businesses while removing barriers to trade. “The Export-Import Bank has more than doubled its loans in support of American exporters since last year, and that step alone has helped support nearly 110,000 new jobs,” Obama said at the White House. (Bloomberg)

20100708 1027 Malaysia Corporate News.

Axiata: Makes new appointments. Axiata Group Bhd announced the appointment of Donald James Rae as its new senior vice-president for group business development and regional operations, effective July 1, Eric Chong as Hello Axiata's chief marketing officer in Phnom Penh, Cambodia, effective June 21. Suresh Sidhu, head of regional development, will move from the corporate centre to Sri Lanka  as chief officer, enterprise and global business. Suresh Sidhu will be replaced by Thivanka Rangala. (Source: The Star)

Kencana: Wins RM201m job. Kencana Petroleum Bhd said its wholly owned subsidiary Kencana HL Sdn Bhd has been awarded an RM201.1m contract by Newfield Peninsula Malaysia Inc. (Source: The Star)

Markets: More companies defaulting. Carotech is the latest in a growing list of companies missing debt payments. Other companies such as Haisan Resources Bhd, Limahsoon Bhd, Ngiu Kee Corp Bhd, Nam Fatt Corp Bhd, Kenmark Industrial Co (M) Bhd, Linear Corp Bhd, LCL Corp Bhd and Tracoma Holdings Bhd have also recently defaulted on their debt payments. (Source: The Star)

Retail: Carrefour says there are no store closures. Carrefour Malaysia and Singapore have denied any store closure in the two countries. In 2010, four Carrefour hypermarkets have been opened in Malaysia and another four are slated to be opened by the year-end. (Source: The Star) 

Genting Malaysia sole surviving bidder for NYC racino project
Genting Malaysia is one step closer to clinching the licence to develop and operate a video lottery facility in New York City’s Aqueduct racetrack following the disqualification of two of the three proposals received by the New York Lottery. Genting Malaysia via its wholly owned subsidiary, Genting New York LLC, had on 1 June paid an entry fee of USD1m (RM3.22m) to participate in the bidding process. A statement by the New York Lottery of Tuesday said the disqualified proposals did not conform to the requirements of the competition and instead, attempted to negotiate for terms more favourable to the bidders. (Financial Daily)

EONCap sticks to its plan
EON Capital's (EONCap) board has decided to proceed with tabling Hong Leong Bank's (HLBB) takeover offer for its shareholders' consideration, despite objections by EONCap's single largest shareholder. EONCap said its board members, with the exception of Ng Wing Fai, affirmed the decision to table the offer to the company’s shareholders at an EGM. The board would seek shareholder approval for the offer, and to empower the board to make a decision whether or not to accept Hong Leong’s offer, subject to certain conditions met. (Financial Daily)

Khazanah said to seek loans to boost Parkway bid
Khazanah Nasional has started talks with five banks for loans that would enable it to increase an offer for Parkway Holdings. Australia & New Zealand Banking Group, CIMB Group Holdings, DBS Group Holdings, Overseas-Chinese Banking Corp and United Overseas Bank were approached by the KL-based company, the people said, asking not to be named because the talks are private. Khazanah told the banks it may need to borrow at least SGD1bn (RM2.32bn). (Malaysian Reserve)

F&N gets shareholders nod to sell Malaya Glass
Fraser and Neave Holdings (F&N) has received the approval of shareholders to divest its entire equity interest in Malaya Glass Products SB for RM738.6m. F&N CEO, Tan Ang Meng said the completion of transaction is now subject to the Ministry of International Trade and Industry’s approval next week. After the transaction and its current net cash of about RM1bn, F&N has the funding capacity of RM2bn. The company would wait between 12 and 24 months to evaluate any business growth and expansion initiatives through merger and acquisitions. (Financial Daily)

20100708 1019 Global Market News.

US, European stocks surge, Dow above 10,000 again
The Dow Jones industrials climbed back above 10,000 pts Wednesday after investors had second thoughts
about the heavy selling in the stock market during the last two weeks. Stocks soared and the Dow rose 275
points after a modest gain Tuesday. It was the market's first back-to-back advance since mid-June and the first
close above psychological benchmark of 10,000 since 28 June. The Dow and broader indexes gained more than
2%. Trading volume was light, however, signaling that many skeptical investors were staying out of the market.
Interest rates rose as some investors dumped Treasuries in favor of riskier assets like stocks. Financial stocks
rose on an upbeat profit forecast from State Street Corp. The stock gained 9.9%. Materials stocks rose after
having logged steep drops over worries about the economy. (StarBiz)

20100708 1015 Soy Oil & Palm Oil Related News.

Soyoil futures rallied, rising to a one-week high on a combination of strength from soybeans, broad-based speculative buying and spillover strength from rallying energy prices, analysts said. Crude oil influences soyoil due to its use in making renewable fuels. December soyoil settled 1.00 cent, or 2.7%, higher at 37.69 cents per pound.(Source: CME)

Palm falls 1.35 pct on output, demand worry
JAKARTA, July 7 (Reuters) - Malaysian crude palm oil fell 1.35 percent on Wednesday, its fourth day of losses in five, as investors were concerned higher production may overwhelm already slow demand and lead to higher inventories.
"The market retreated from a firm opening. The upside is limited with better production level," said a trader in a local brokerage firm in Kuala Lumpur.

India June oilmeal exports dip for 8th straight mth
NEW DELHI, July 7 (Reuters) - India's June oilmeal exports slumped 20 percent from a year earlier, falling for the eighth straight month, on low domestic crushing and reduced demand from southeast Asia, a leading trade body said.
India's oilmeal exports declined to 158,750 tonnes in June from 197,593 tonnes a year earlier, mainly due to lower demand from the leading importer Vietnam, the Solvent Extractors' Association of India said in a statement on Wednesday.

Argentine taxes cloud sunflower outlook -farmers
BUENOS AIRES, July 6 (Reuters) - Farmers in Argentina, the world's No. 2 sunflower oil supplier, will likely sow more sunseeds this year after last season's poor harvest, but they say the government must encourage plantings by cutting export taxes.
Growers in the South American country harvested a meager 2.3 million tonnes of sunseeds last season, accounting for just 7.5 percent of global production and way below the 3.6 million tonne average of recent years.

Argentina hopes China soyoil row to end in months
BUENOS AIRES, July 6 (Reuters) - Argentina hopes to reach an agreement with China to end the Asian nation's freeze on Argentina soyoil imports in the next few months, Agriculture Minister Julian Dominguez said late on Monday.
A government spokesman said late last month that Argentina had already reached a deal with China to end the two-month-old dispute, but traders were skeptical and said no new shipments had been loaded.