Tuesday, July 13, 2010

20100713 1815 FCPO EOD Daily Chart Study.

FCPO closed : 2353, changed : +13 points, volume : lower.
Bollinger band reading : correction downside biased.
MACD Histrogram : getting higher, seller reducing exposure and buyer shows interest.
Support : 2350, 2330, 2300, 2270 level.
Resistant : 2370, 2400, 2450 level.
Comment :
FCPO correction continue to take place today as price ended up firmer in slower volume changed hand today. Daily chart shows that market managed to break and stay above middle Bollinger band and 2350 critical resistant level with a correction ranging 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 larger cut loss and profit target.

20100713 1752 FKLI EOD Daily Chart Study.

FKLI closed : 1339 changed : +10.5 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : continue higher, buyer taking exposure.
Support : 1337, 1330, 1325 level.
Resistant : 1345, 1350, 1360 level.
Comment :
Last hour buying activities lifted FKLI to closed at the high of the day with improve volume traded doing 7 points premium compare to cash market. Today's daily long lower shadow candle bar shows that market tested lower support but failed to entice seller to participate in the market resulted buyer to start their engine to bargain hunting pushed price to higher ground. Reading also change into suggesting a upside biased potential market.
When to buy : buy at support or weakness with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100713 1613 Global Market News.

China stocks slide on property, weigh on Asia
HONG KONG, July 13 (Reuters) - Chinese stocks fell 2 percent on Tuesday on reports that Beijing will not relax tougher property measures any time soon, weighing on the Australian dollar and curbing early gains in Asian shares.
"Although there's a sense of selling fatigue, investor sentiment is still bearish, and the market is looking for a catalyst. Corporate earnings could be one," said Naoki Koga, a senior fund manager at Toyota Asset Management in Tokyo. 

July 12 (Bloomberg) -- Alcoa Inc., the largest U.S. aluminum producer, reported second-quarter profit that topped analysts’ projections as higher metal prices boosted sales. The shares rose. Earnings from continuing operations were 13 cents a share, exceeding the 11-cent average estimate of 17 analysts surveyed by Bloomberg. Net income of $136 million, or 13 cents a share, compared with a net loss of $454 million, or 47 cents, a year earlier, New York-based Alcoa said today in a statement. Sales gained 22 percent to $5.19 billion.

Stocks hit 2-week high on earnings optimism
LONDON, July 12 (Reuters) - World stocks briefly hit a two-week peak as expectations rose that U.S. corporate earnings this week would point to a sustainable economic recovery in the world's biggest economy.
"In view of the concerns that the markets and investors have had about the loss of economic momentum, these results will be pretty important. If these earnings are good, this market is going to fly," said Mike Lenhoff, chief strategist at Brewin Dolphin.

20100713 1319 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1329 changed : +0.5 point, volume : low.
Bollinger band reading : side way range bound.
MACD Histrogram : turned upward, battle still on between buyer and seller.
Support : 1325, 1318, 1310 level.
Resistant : 1330, 1337, 1345 level.
Comment :
12 points range market FKLI trade 1 tick higher in slow volume after price tested support and resistant level on par with cash market. Hourly chart reading turned to suggesting a side way range bound market.

20100713 1302 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2338, changed : -2 points, volume : low.
Bollinger band reading : upside biased.
MACD Histrogram : weakening, not much action by both buyer and seller
Support : 2330, 2300, 2270 level.
Resistant : 2350, 2370, 2400 level.
Comment :
No follow through FCPO traded 2 points softer in lack of participation by both buyer and seller. Hourly chart outlook still having an upside biased reading but the quiet volume transacted raised some doubt about the upward movement momentum.

20100713 1006 Global Economic News.

Singapore: Growth probably exceeded 20% on exports, casinos
Singapore’s economy probably grew more than 20% for a second quarter as rising exports boosted manufacturing output and the opening of two casinos spurred tourist arrivals. Gross domestic product rose an annualized 23% in the second quarter from the previous three months. (Bloomberg)

Thailand: May weigh rate increase as political violence subsides
Thailand will consider tomorrow whether to raise its benchmark interest rate for the first time in almost two years after deadly political protests ended last quarter without derailing the economy. Governor Tarisa Watanagase said last week the central bank will take “preemptive” steps to control inflation. (Bloomberg)

China: Yuan’s slow gain lets it adjust
The yuan’s slow advance against the dollar following its re-evaluation is meant to give China’s businesses time to adjust to the new monetary policy. Yuan has appreciated 0.81% against the dollar since 19 June, when the People’s Bank of China said it would allow more flexibility in the yuan’s exchange rate. (Bloomberg)

China: Inflation pressures may ease as property, lending cool
China’s property prices snapped 15 months of gains and bank lending eased in June, indicating that curbs on credit may diminish inflation pressures even as record exports support growth. China’s economic growth for the April to June period may have topped 10% for a third straight quarter.(Bloomberg)

EU: Poland’s draft budget may not make progress on EU deficit goal
Poland’s budget proposal will fail to put the European Union’s biggest eastern member on course to meet the bloc’s deficit deadline as the government avoids spending cuts before next year’s election. Prime Minister Donald Tusk’s cabinet will today announce a 2011 deficit target that’s little changed from this year. (Bloomberg)

US: Fed has ‘no plans’ to use more monetary policy tools
Federal Reserve Governor Elizabeth Duke said the central bank has no current plans to deploy additional tools for stimulating the economy. The Fed could alter its communications strategy, lower the interest rate it pays on excess reserves or replace mortgage-backed securities that are rolling off its balance sheet. (Bloomberg)

U.S : Bernanke says borrowing difficult for small firms. Some creditworthy firms with "strong" cash flows and a decline in collateral values are having trouble getting loans, Bernanke said. (Source: Bloomberg)

Japan : June producer prices rise 0.5% YoY driven by an increase in commodity costs. This follows a revised 0.5% YoY gain in May, the Bank of Japan said. (Source: Bloomberg)

China : Foreign-exchange reserves rose by 0.3% QoQ in 2Q10. The nation's holdings rose by USD 7.2b to USD 2.454tr at the end of June from the end of March, the People's Bank of China said. (Source: Bloomberg)

India : Industrial production growth slows to 11.5% YoY in May. Production jumped a revised 16.5% YoY in April. (Source: Bloomberg)

S. Korea : Central bank raises 2010 growth forecast to 5.9% YoY, more than the 5.2% predicted in April. It trimmed the estimate for next year to 4.5% YoY from a previous 4.8% YoY. (Source: Bloomberg)

Australia : Home-loan approvals rise 1.9% MoM in May for the first time in eight months. The number of loans granted to build or buy houses and apartments gained 1.9% MoM to 48,818 from April, when they declined a revised 1.5% MoM. (Source: Bloomberg) 

20100713 1002 Malaysia Corporate News.

Scomi Marine sells marine logistics firms for RM550m
Scomi Marine Bhd (SMB) yesterday said it is selling its marine logistics companies to PT Rig Tenders Indonesia TBK (PTRT) and a privately managed Indonesian fund for USD171.8m (RM549.33m). Once completed. The exercise will dilute SMB’s interest in its unit, PTRT, to an associate and will see the emergence of Portside Offshore Inc, as a strategic investor that it said will play an integral part in growing the group’s businesses in merging markets, particularly in Indonesia and India. (Malaysian Reserve)

TNB to replace 1,720 ageing vehicles
Tenaga Nasional Bhd (TNB) is investing more than RM120m to replace its fleet of 1,720 ageing vehicles over three years. President and chief executive officer Datuk Seri Che Khalib Mohamad Noh said all problem trucks would be sold. The replacement exercise, he added, would be undertaken in three phases. TNB has, as of now, replaced 521 vehicles at an investment of about RM50m. Che Khalib said the reliability and efficiency of the fleet was crucial because any delay in operations due to a breakdown or lack of performance could affect the service provided to customers. The vehicles will be supplied by DRB-HICOM Bhd’s subsidiaries, Automotive Corp (M) Sdn Bhd and EON Auto Mart Sdn Bhd. (StarBiz)

Melati Ehsan plans RM270m housing project
Melati Ehsan Holdings Bhs, an engineering and construction firm, is planning a RM270m residential development in Shah Alam, Selangor. The proposed development, known as Bukit Tengku Shah Alam, is expected to commence in the last quarter of 2010 and be completed by the first quarter of 2013. The project is being undertaken on a 14ha plot of land owned by Tengku Shahrudin SB, a privately owned property and development and investment company. (Malaysian Reserve)

MAS to spend RM320m on ERP solution
National carrier Malaysia Airlines (MAS) plans to invest RM320m over three years in a computer-based solution to streamline operations and maximise business efficiency. The enterprise resource planning (ERP) solution will replace existing systems and integrate MAS' finance, human resource, and engineering and maintenance operations in two phases from this year to 2012. "The total benefit expected from the project is estimated at over RM120m per year, once fully implemented in 2012," MAS managing director and chief executive officer Tengku Datuk Azmil Zahruddin told reporters at a briefing in Subang Jaya, Selangor, yesterday. MAS picked HCL Axon and SAP as its partners for the project. The system will centralise all the airline's data and allow it to obtain realtime information. (BT)

Banking: BNM approves CIMB's acquisition of a stake in CIMB Niaga. CIMB Group Holdings Bhd announced that Bank Negara Malaysia (BNM) has approved the group's proposal to acquire up to 19.7% equity interest in PT Bank CIMB Niaga TBK. (Source: The Edge Financial Daily)

JCorp: Scoffs at bankruptcy claims. Johor Corp (JCorp) has rubbished claims by opposition parties that it will go bankrupt in 2 years, saying it can afford to offset its liabilities with assets if required. JCorp, which has 280 member companies with 65,000 employees, has an outstanding loan of RM3.8b due in 2012. The market capitalization of 8 companies within JCorp was RM10.4b at 31 December 2009. (Source: Business Times)

Property: Ivory Properties aims to raise RM45m from IPO. Penang-based Ivory Properties Group Bhd, enroute for listing on the main board of Bursa Malaysia by 28 July 2010, expects to raise RM44.9m from its initial public offering (IPO). (Source: Malaysian Reserve, Business Times)

20100713 0936 Soy Oil & Palm Oil Related News.

Soyoil futures settled higher, managing to hold on to modest gains after extending recent gains in early trade. The unwinding of meal/oil spreads and solid underlying demand buoyed prices, analysts said.(Source: CME)

Malaysia June CPO Output 1.42 Mln Tons; Up 2.5% On Month -MPOB(Source: CME)
Malaysia's June crude palm oil output rose 2.5% on month to 1.42 million metric tons, the Malaysian Palm Oil Board said Monday. CPO output totaled 1.39 million tons in May. MPOB said in its monthly report that CPO exports rose 5.5% to 1.44 million tons in June. The country exported 1.36 million tons in May. Palm oil inventories totaled 1.45 million tons at the end of June, down 7% from 1.56 million tons in May.

China lifts palm oil to one-week high; MPOB data eyed
KUALA LUMPUR, July 12 (Reuters) - Malaysian crude palm oil rose to a one-week high as investors were buoyed by strong trade performance by China and lower-than-expected stocks. Palm oil prices, which have dropped 12.7 percent so far this year, are set to gain after industry regulator Malaysian Palm Oil Board reported that palm oil stocks dropped to 10-month lows in June.

Canada aims to boost canola exports
WINNIPEG, Manitoba, July 9 (Reuters) - Canada's canola industry looks to boost export demand for seed, oil and meal to encourage higher crop production by 2015 and will focus on five key markets, the Canola Council of Canada said on Friday. The council is aiming to expand markets in order to reach its goal of raising Canadian production to 15 million tonnes by 2015.

China soybean imports to rise in 09/10, 10/11-USDA
WASHINGTON, July 9 (Reuters) - China is forecast to import 2 percent more soybeans in the current marketing year and in 2010/11 than earlier projected, the U.S. Agriculture Department said in a report on Friday. The USDA increased its forecast for Chinese soybean imports in 2009/10 to 48 million tonnes, up 1 million tonnes from last month's estimate.