Thursday, July 15, 2010

20100715 1831 FCPO EOD Daily Chart Study.

FCPO closed : 2439, changed : +58 points, volume : high.
Bollinger band reading : turned to side way range bound little upside biased.
MACD Histrogram : getting higher, buyer increase exposure.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
FCPO gained for the 6th consecutive day in ultra high volume changed hand after supporting positive export figure released today. Daily chart shows that seller lost control as buyer returned aggressively break above crucial 2400 resistant level closed near upper Bollinger band level. Reading turned into suggesting a side way range bound little upside biased 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.

20100715 1756 FKLI EOD Daily Chart Study.

FKLI closed : 1337 changed : -6.5 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : rising, buyer defending.
Support : 1337, 1330, 1325 level.
Resistant : 1345, 1350, 1360 level.
Comment :
FKLI surrender yesterday gains and retreat lower in lesser volume traded as market sentiment turned negative following a lower closed on regional market and worry of US and China economy condition. Daily chart shows market tested lower but still managed to closed right at support level with the reading turned into a side way range bound market little upside biased.
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.

20100715 1300 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1337.5 changed : -6 points, volume : high.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : getting lower, buyer reduce position as seller present.
Support : 1337, 1330, 1325 level.
Resistant : 1345, 1350, 1360 level.
Comment :
Mostly range bound FKLI ended the first session lower with maintaining volume transaction as sentiment turned little negative due to the news of US economy recovery pace plus forecast of a slower 2nd half China growth. Break and stayed below middle Bollinger band hourly chart indicate seller trying to test the market with the outlook having a range bound correction upside biased market reading.

20100715 1248 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2395, changed : +14 points, volume : high.
Bollinger band reading : correction upside biased.
MACD Histrogram : weakening, buyer lock in profit.
Support : 2370, 2350, 2330 level.
Resistant : 2400, 2450, 2470 level.
Comment :
Fear of lower stock level plus improved export data spurted FCPO price higher in better volume traded.
Hourly chart shows that price surged higher breaking 2400 resistant level before profit taking activities take place to pressed price lower below 2400 with the reading suggesting an upside biased market with pullback correction taking place.

20100715 1055 Global Economic News.

Malaysia: Sees improved spending capability
A robust turnaround in consumer spending is expected in 2010 across Asia-Pacific, with double-digit retail sales growth predicted in China, Hong Kong, India, Indonesia, South Korea, Malaysia and Singapore as a result of improving fundamentals, according to indications provided by the inaugural MasterCard Worldwide Index of Consumer Spending Capability (MWICSC). The new index has been developed to provide insights into consumer spending over a period of one year. Malaysia’s MWICSC score shows a modest increase of 5.7 points in 2010, raising the index value to 63.0, indicating that spending capability is rising for consumers. (Financial Daily)

Singapore: May need to ‘tighten screws’ after record expansion
Singapore may be forced to consider allowing further gains in its currency after a record first-half expansion put the economy in contention for the world’s fastest-growing this year. The government yesterday reported an 18.1% surge in gross domestic product in the first half, unprecedented in data going back to 1975. Record tourist arrivals are benefiting companies from Singapore Airlines Ltd. to casino operator Las Vegas Sands Corp., while a two-year-low jobless rate has helped spur a 38% jump in house prices in the past 12 months. (Bloomberg)

China: Stimulus ‘Relapse’ beckons for China as growth slows
China’s slowing expansion may encourage officials to shift policy toward sustaining the rebound in the economy forecast to account for one-third of global growth this year. A government report will show gross domestic product rose 10.5% in the second quarter from a year earlier, according to the median estimate in a Bloomberg News survey of 28 economists, down from an 11.9% pace in January to March. Industrial production and urban fixed-asset investment are also estimated to have slowed. (Bloomberg)

Japan: IMF says Japanese fiscal plans need specifics to be credible
The International Monetary Fund said Japan’s plan to balance its budget in 10 years would be more credible if the government gave specifics on how it will boost revenue, including details on a sales tax increase. Prime Minister Naoto Kan’s fiscal strategy outlined last month “will only become fully credible once details of the necessary revenue measures are agreed on including the timing and scale of a consumption tax increase,” the IMF staff wrote in a supplement to its annual review of Japan’s economy. (Bloomberg)

US: Fed officials saw no need for more stimulus in June
Federal Reserve officials saw no need to boost stimulus to the economy while trimming their forecasts for growth and noting that risks to the recovery had increased, minutes of their June meeting showed. “The economic outlook had softened somewhat and a number of members saw the risks to the outlook as having shifted to the downside,” minutes released in Washington said. “The changes to the outlook were viewed as relatively modest and as not warranting policy accommodation beyond that already in place.” (Bloomberg)

US: Retail sales decrease as recovery cools
Sales at US retailers dropped in June for a second month, indicating the economic recovery dissipated heading into the second half of 2010. Purchases decreased 0.5%, more than projected, after declining 1.1% in May, Commerce Department figures showed. Excluding auto dealers, demand fell 0.1%, matching the median forecast of economists surveyed by Bloomberg News. (Bloomberg)

20100715 1053 Malaysia Corporate News.

Jetson boardroom tussle brewing?
Kumpulan Jetson's shares tumbled yesterday amid fears of a boardroom tussle, as the company temporarily halted trading of its shares to announce the surprise retraction of a director's earlier resignation. The counter tumbled 22 sen, or 16.5%, after it announced the hour-long trading halt from 9am. According to sources, a feud is understood to be brewing between the sons of the late Tan Sri SM Nasimuddin SM Amin (of Naza Group fame), namely Jetson’s chairman and executive director Sheikh Mohd Nasarudin and his brother, executive director Sheikh Mohamad Faliq Sheikh Mohamad Nasimuddin Kamal in one camp, and another faction led by Datuk Teh Kian Ann, Jetson’S Managing Director. In an announcement yesterday, Jetson said an independent director, Mohd Abdul Aziz, had retracted his resignation announced to Bursa Malaysia Securities about a week ago on 7 July. (Financial Daily)

UMW Toyota to locally assemble Camry by mid-2012
UMW Toyota Motor SB, a joint venture of UMW Holdings, Japan Toyota Motor Corp and Toyota Tsusho Corp, is targeting to locally assemble Camry models by mid-2012 as part of its RM170m assembly plant upgrading program. It was conducting technical studies on its assembly plant capacity and was in talks with local suppliers to see how local content could be used in its production. The new Camry assembly plant is part of UMW Toyota’s total investment of RM370m to improve production line and build a new centralized stockyard. (Financial Daily)

Gamuda, MMC eye tunnel works
Gamuda and MMC Corp plan to bid for the RM14bn tunnelling works if their joint-venture mass rapid transit (MRT) system proposal is accepted by the Government, said Gamuda group managing director Datuk Lin Yun Ling. “The tunnelling or underground works cover about 30% of the whole project involving 26 stations, mostly located in the city centre out of the total of 90-plus new stations in the MRT prosposal,” he said, adding that the proposed project could be divided into three major phases where the development would be stretched over 10 years. The RM36bn joint MRT proposal by Gamuda and MMC is now under feasibility studies by two government-appointed independent consultants that will be concluded in three months. Lin said both Gamuda and MMC were also interested in overseeing the whole project. (StarBiz)

Keck Seng to get mandate over Parkway stake
Plantation and property firm Keck Seng’s board has decided to obtain a shareholders’ mandate in respect of the company’s stake in Singapore-listed healthcare provider Parkway Holdings Ltd. Keck Seng has 35.58m shares representing a 3.13% stake in Parkway, a company in which Khazanah Nasional and Fortis Healthcare Ltd, are battling for control over. Fortis is controlled by billionaire brothers Malvinder and Shivinder Singh. They are Parkway’s single largest shareholder with a 25.3% stake while Khazanah has a 23.8% stake. (StarBiz)

SC rejects WWE’s restructuring plan
WWE Holdings has failed to get its proposed restructuring scheme approved by the Securities Commission (SC) due to non-compliance with the Equity Guidelines. “The board will consider options available to WWE, including an appeal to the SC and will make an announcement on this matter in due course,” it said yesterday. Under paragraph 7.03(a) of the SC Equity Guidelines, the assets to be acquired must comply with the profit requirements while 7.05(b) states the assets to be injected must have a healthy financial position. (Financial Daily) 

20100715 1049 Global Market News.

GLOBAL MARKETS: Asian stocks weak after Fed; China GDP eyed
HONG KONG, July 15 (Reuters) - Asian stocks fell in early trade on Thursday after a downbeat assessment of the economic recovery by the U.S. Federal Reserve and with caution prevailing ahead of China's second quarter GDP data. The dollar was under pressure, holding near two month lows on a basket of currencies, while high yielding currencies such as the Australian dollar  and the New Zealand dollar may be sold off if the Chinese data disappointed. 

July 15 (Bloomberg) -- China’s economic growth eased to 10.3 percent in the second quarter after the government succeeded in tempering credit expansion, investment spending and property speculation. The pace compares with an 11.9 percent gain in January- March from a year earlier. Inflation cooled to 2.9 percent in June, the statistics bureau also reported in Beijing today. Industrial output rose a less-than-estimated 13.7 percent.

U.S. trade gap widens in May, tempers GDP forecasts
WASHINGTON, July 13 (Reuters) - The U.S. trade deficit widened unexpectedly in May, prompting analysts to ratchet back estimates for second quarter economic growth despite signs of increased demand both at home and abroad.
The trade gap grew to $42.3 billion, the largest since November 2008, as imports from China soared 12.1 percent, helping overpower the best month for U.S. exports since September 2008, the Commerce Department said on Tuesday.

20100715 1035 Soy Oil & Palm Oil Related News.

SGS Export up 16.4% to 708,384 tonnes for the period of 1~15 Jul 2010

ITS Export up 11.3% to 668,573 tonnes for the period of 1~15 Jul 2010

Soyoil futures inched higher, keeping pace with advances in the rest of the complex. However, advances were limited by adjustments in the meal/oil spread relationship, and a larger-than-expected buildup of June soyoil stocks reported by National Oilseed Processors Association. December soyoil settled 0.09 cent, or 0.2%, higher at 38.90 cents per pound.(Source: CME)

Boom In US Soyoil Sales To China May End - US Group(Source:CME)
The recent boom in U.S. soyoil sales to China may stop as quick as it started if Argentine producers are allowed back into the competition, a U.S. Soybean Export Council official said Tuesday.
China stopped buying soyoil from Argentina in April during a trade spat between the two countries and U.S. exporters soon stepped in to fill the void. The U.S. has sold about 200,000 tons of soyoil to China in a matter of weeks during June and July.
The Argentine government has been working to regain China as a soyoil customer and if that happens, U.S. Soybean Export Council Director Paul Burke said, the U.S. will once again not be able to compete.
Argentina, through the use of differential export taxes, subsidizes the exportation of soyoil, Burke said. No mater what U.S. exporters do, Argentine product will be cheaper.
If China and Argentina resolve their differences and China agrees to resume importing soyoil from the South American country, the U.S. will devolve back into a residual supplier, only making infrequent sales, Burke told Dow Jones Newswires.
China is the world's largest soyoil-importing country and Argentine President Cristina Fernandez is expected to try and woo the country back as a customer during her trip this week to Beijing.
China is expected to import 1.6 million tons of soyoil in the 2009-10 marketing year and 2.15 million tons in 2010-11, according to U.S. Department of Agriculture predictions.
One development stemming from the recent U.S. sales to China is the country's decision to conduct a risk assessment on U.S. soyoil. USDA and exporters have said they hope that assessment will result in China no longer requiring individual phytosanitary certificates to show that shipments of U.S. soyoil aren't contaminated.
If that happens, it will boost U.S. soyoil export opportunities in China even if Argentina does return as China's primary supplier, according to Burke and American Soybean Association Vice President Steve Wellman.

India June Vegetable Oil Imports Fall 6.2% To 732,232 Tons(Source: CME)
India's vegetable oil imports during June fell 6.2% from a year earlier to 732,232 metric tons due to higher imports in the previous few months and large stocks at ports, the Solvent Extractors' Association said Wednesday.
Total vegetable oil imports during the first eight months of the marketing year that began Nov. 1 fell to 5.6 million tons from 5.8 million tons in the same period a year earlier, the trade body said in a statement.
The South Asian nation, the world's second-largest vegetable oil importer after China, bought 692,952 tons of edible oil in June, compared with 742,481 tons a year earlier, it added.
Indian companies imported higher quantities in the November-January period due to fears the government may impose a tax on crude edible oils and increase the import duty on refined edible oils from the current 7.5%. However, the companies pared imports in later months after the government kept the tax structure unchanged and stocks at ports started piling up.
The trade body said total edible oil stocks at ports were estimated at 550,000 tons as of July 1, which comprises 270,000 tons of crude palm oil, 65,000 tons of refined, bleached and deodorized palm olein, 160,000 tons of soyoil and 60,000 tons of sunflower oil.
Also, there are current contracts to import another 560,000 tons of edible oil, it added.
The trade body also said India imported 421,462 tons of crude palm oil in June, while RBD palm olein imports stood at 42,282 tons.
Soyoil imports fell 25.5% to 192,649 tons, while imports of sunflower oil also declined 37% to 34,559 tons during the period, it added.
India imports palm oil mostly from Indonesia and Malaysia and soyoil from Argentina and Brazil.
Imports of non-edible oils rose 3% to 39,280 tons during June. Non-edible oil is mainly used to make soaps and detergents, and for various other industrial purposes.

Palm at 2-week high on output worry, crude oil
JAKARTA, July 14 (Reuters) - Malaysian crude palm oil rose to a 2-week high on midday Wednesday, buoyed by expectations of low stocks because of a production slowdown and gains in crude oil.
"The production number was basically bullish, stocks were lower than expected. It formed a base for the market to rebound from the low," said a trader in a foreign-brokerage firm in Kuala Lumpur.

India June vegoil imports fall for 6th straight mth
NEW DELHI, July 14 (Reuters) - India's vegetable oil imports fell for the sixth straight month in June, dropping by 6 percent from a year ago on higher stocks at the ports, a leading trade body said on Wednesday.
June imports of vegetable oils dropped to 732,232 tonnes from 780,679 tonnes a year ago, the Solvent Extractors' Association said in a statement.