Friday, July 16, 2010

20100716 1904 FCPO Weekly Chart Study.

Weekly Close: 2449, High: 2461, Low: 2310, Range: 151 points
FCPO closed : 2449, changed : +149 points, volume : higher.
Bollinger band reading : side way range bound, downside biased.
MACD Histrogram : reversed upward, seller book profit and reduce position.
Support : 2300, 2240, 2200 level.
Resistant : 2350, 2400, 2450 level.
Comment :
The anticipated pullback correction took place as FCPO rebounded strongly with increasing volume traded recovered previous 3 weeks drop due to supply, demand and seasonal factor. Weekly chart shows that price surged powerfully trying hard to reach the resistant level near middle Bollinger band level with the reading recommending a side way range bound downside biased market outlook.

20100716 1902 FCPO EOD Daily Chart Study.

FCPO closed : 2449, changed : +38 points, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : getting higher, buyer confident accelerate.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
Never looks back FCPO rallied again today after switched month in slightly lower(still consider high) volume transacted supported by higher seasonal festival demand and lower stock pile supply. Daily chart shows that market opened little lower and hesitated but finally decided to surge higher tested resistant level and closed just a tick below. Reading turned bullish to recommending a upside biased outlook 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.

20100716 1831 FKLI Weekly Chart Study.

Weekly Close: 1340.5, High: 1332.5, Low: 1287.
FKLI closed : 1340.5, changed : +12 points, volume : lower.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : recovering, buyer defending.
Support : 1335, 1310, 1300 level.
Resistant : 1350, 1360, 1375 level.
Comment :
FKLI continue to trade firmer in lesser volume changed hand week on week testing higher resistant level. Weekly chart wise, the reading started to turned into a range bound upside biased market with potential testing upper Bollinger band level.

20100716 1738 FKLI EOD Daily Chart Study.

FKLI closed : 1340.5 changed : +3.5 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : weakening, buyer partial profit taking.
Support : 1337, 1330, 1325 level.
Resistant : 1345, 1350, 1360 level.
Comment :
Thin volume traded FKLI recorded small gain after moving range bound testing support and resistant level while regional markets are having mixed development. Daily chart reading suggesting market to trade side way range bound 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.

20100716 1300 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1338.5 changed : +1.5 point, volume : low.
Bollinger band reading : side way range bound downside biased.
MACD Histrogram : recovering, buyer seller not much action.
Support : 1337, 1330, 1325 level.
Resistant : 1345, 1350, 1360 level.
Comment :
Weekend mood light volume FKLI ended little higher as market struggling to determine it direction due to lack of catalyst and news despite a hike in petrol price announcement. Hourly chart shows that price tested lower support level but buyer seems still defending their position. Outlook wise, the reading is suggesting a side way range bound little downside biased market.

20100716 1247 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2455, changed : +44 points, volume : high.
Bollinger band reading : upside biased.
MACD Histrogram : getting higher, buyer in control
Support : 2450, 2400, 2370 level.
Resistant : 2470, 2500, 2530 level.
Comment :
FCPO rally to higher ground with extreme high volume changed hand as Ramadan season is near lead to higher demand with lower stock supply condition. Hourly chart shows price continue to surge upward following upper Bollinger band expansion pace breaking another resistant level with the reading still suggesting an upside biased market.

20100716 0945 Global Economic News.

Malaysia: MIER ups growth forecast to 6.5%
The Malaysian Institute of Economic Research (Mier) has revised upwards its 2010 GDP growth forecast to 6.5% from 5.2% previously, given a stronger-than-expected 1Q GDP growth along with strengthening domestic demand and stabilizing conditions. Executive director Dr Zakariah Abdul Rashid, however, said the growth was expected to taper off in the second half of this year due to further policy-tightening measures and disappearing low base effects. (StarBiz)

Japan: BOJ predicts growth to slow in 2011, keeps 0.1% rate
The Bank of Japan kept interest rates unchanged and predicted growth in the world’s second- largest economy will slow next year as fiscal stimulus evaporates worldwide and overseas demand loses steam. Policy makers raised their growth forecast for the year ending March 2011 to 2.6% from 1.8% estimated in April, while cutting next year’s to 1.9% from 2%, the central bank said. The board held the benchmark overnight lending rate at 0.1%. (Bloomberg)

China: Economic growth eases to 10.3% on credit curbs
China’s economic expansion eased to 10.3% in the 2Q and industrial production cooled more than forecast in June, signaling a deeper second- half slowdown that may add to risks for the global economy. The gain in GDP was less than an 11.9% increase in January-March from a year earlier. Inflation cooled to 2.9% in June, the statistics bureau reported. Industrial output rose 13.7%, less than all but one of 27 forecasts in a Bloomberg News survey. (Bloomberg)

Chile: Raises rate to 1.5% as growth threatens prices
Chile’s central bank raised its benchmark interest rate for the second straight month after the fastest economic growth in almost five years pushes inflation back up toward policy makers’ target. The five-member policy board, led by bank President Jose De Gregorio, raised the overnight rate by a half point to 1.5% from 1%, matching the forecasts of all but one of the 16 economists surveyed by Bloomberg. (Bloomberg)

US: Industrial production in US increased 0.1% in June
Industrial production in the US unexpectedly rose in June as higher temperatures across the nation led to increased utility use. Factory output, which makes up 75% of the total, declined the most in a year. Production at factories, mines and utilities increased 0.1% after a 1.3% gain in May, figures from the Federal Reserve showed. Economists had forecast a 0.1% drop in June, according to the median estimate in a Bloomberg News survey. Utility output rose 2.7%, while production at manufacturers declined 0.4%. Producer prices slid 0.5% after a 0.3% decline the month before, the Labor Department said. (Bloomberg)

20100716 0943 Malaysia Corporate News.

Government cuts fuel, sugar subsidies
Prices of petrol for RON95, RON97, diesel, liquefied petroleum gas (LPG) and sugar will increase from today as the Government seeks to reduce subsidies for these products and cut government expenditure by about RM750m. Subsidies for RON95 petrol and diesel will be cut by 5 sen per litre, LPG by 10 sen per kilogram and sugar by 25 sen per kg. The government would no longer subsidise the higher grade RON97 petrol, which would be subject to a managed float. At current price, the RON97 petrol would cost an additional 5 sen. (Financial Daily)

Changes to listing rules proposed
Proposed amendments to Bursa Malaysia’s listing requirements and the introduction of the Corporate Disclosure Guide (CD Guide) are set to prod listed companies into revealing more details about key developments, including changes of directors, chief executive officers (CEOs), chief financial officers (CFOs), external auditors and independent advisers. The revamp also covers disclosure rules for quarterly and annual reports, pledging of shares by controlling shareholders, termination of corporate proposals and voting results of shareholder meetings. (StarBiz)

PAAB sees Selangor water asset takeover by year-end
Pengurusan Aset Air (PAAB) is hoping to complete its planned acquisition of water assets in Selangor by the end of the year, said its CEO and director Datuk Ahmad Faizal Abdul Rahman. The cost of acquiring the water assets in Selangor would be well over RM10bn in total, and PAAB is sticking to its plans to acquire the assets, with operational and maintenance (O&M) rights, contrary to what the Selangor wants. Ahmad Faizal said PAAB too hoped to complete the takeover of the water assets in Perlis, Kelantan, Perak and Pahang by year-end. (Financial Daily)

Time Eng sale next week?
UEM Group’s proposed sale of its 45% stake in Time Engineering is expected to be announced as early as Monday, which is strong evidence of the acceleration of the conglomerate’s asset disposal programme, sources said. The identity of the purchaser could not be ascertained. The disposal of Time Engineering shares was previously reported to be at around 50 sen apiece. (Financial Daily)

Trading in Titan suspended ahead of corporate announcement
Titan Chemical Corp requested that trading in its shares be suspended today pending an announcement of a corporate proposal involving the major shareholders of the company. Market talk is that a general offer (GO) for the company is in the works, which could come after two of the company’s largest shareholders sell their respective stakes in Titan. Although market talk has been rife of Titan being privatized, pricing and other salient features have yet to surface. One name that has cropped up as a buyer is China Petroleum and Chemical Corp (known as Sinopec Corp) but this remained unsubstantiated. News reports had speculated that Titan’s largest shareholders, the Chao family and PNB, would sell out. (Financial Daily)

Nikko to be delisted
Nikko Electronics will be delisted and removed from the official list of Bursa Malaysia on 27 July. The delisting is in accordance to the decision of Bursa announced by the company on 23 Oct last year. The Securities Commission via its letter dated 24 June 2010 rejected Nikko’s proposed restructuring scheme and the company decided not to appeal against the decision. (BT)

20100716 0932 Global Market News.

Dollar weakens on U.S. data, Asia stocks dip
HONG KONG, July 16 (Reuters) - The dollar fell and Asian stocks dipped as the U.S. economy showed further signs of slowing, while the euro appeared poised for further gains after breaching key resistance levels.
"The micro base for the U.S., including things such as the Intel results earlier this week, is pretty good, but the macro base really isn't, and this is raising a lot of concern about the U.S. economy," said Yutaka Miura, senior technical analyst at Mizuho Securities.

World stocks end flat on BP, Goldman; dollar offNEW YORK, July 15 (Reuters) - World stocks staged a late-day surge to end flat on Thursday following positive developments at BP Plc   and Goldman Sachs , while the dollar fell broadly on downbeat U.S. manufacturing and inflation data.
"In essence, you'll have 'closure' on two issues," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey. "An announcement along the lines of BP's announcement, and the Goldman Sachs issue closed, if that's what it is, that would help the tone of the market quite handsomely."

Jul 16 (Reuters) - Google profit misses as expenses surge.

July 15 (Bloomberg) -- JPMorgan Chase & Co., the second-  biggest U.S. bank by assets, said profit rose 76 percent, higher than analysts expected as provisions for soured mortgages and credit-card loans declined. Second-quarter net income climbed to $4.8 billion, or $1.09 a share, from $2.72 billion, or 28 cents, in the same period a year earlier and from $3.33 billion in the first quarter, the New York-based company said today in a statement. The per-share earnings compared with an average estimate for adjusted earnings of 71 cents projected by 22 analysts surveyed by Bloomberg. 

World stocks slip, yen rises after Fed
LONDON, July 15 (Reuters) - World stocks slipped from a three-week peak  while the low-yielding yen rose after the Federal Reserve suggested additional measures may be needed to combat a weakening economy.
"On one hand, we have very strong company results. On the other hand, we have lingering doubts about the pace of the economic recovery," said Luc Van Hecka, chief economist at KBC Securities.

20100716 0930 Soy Oil & Palm Oil Related News.

Soyoil futures climbed in step with the rest of the complex, underpinned by the rise in crushing margins and solid export demand. However, soyoil continued to lose ground to soymeal on spreads. December soyoil settled 0.47 cent, or 1.2%, higher at 39.37 cents per pound.

Pakistan Ups Palm Oil Purchases As Ramadan Looms.(Source:CME)
Pakistan has bought up to 225,000 metric tons of palm oil in July as demand rises in preparation for Ramadan, the Islamic month of fasting, an industry official said Thursday.
"We may see a record shipment of palm oil this month for the Ramadan period, between 200,000 and 225,000 tons. In fact the imports are slightly more than the requirement" for the month, Rasheed Janmohammad, vice-chairman of the Pakistan Edible Oil Refiners Association said.
Pakistan is the largest buyer of palm oil in the world after India and China, purchasing an average of 80,000-125,000 tons a month.
According to cargo surveyor SGS (Malaysia) Bhd., Pakistan imported 140,696 tons for the first 15 days of July.
Ramadan, which this year runs from approximately Aug. 11 to Sept. 9, is generally a period of heavier demand.
"We expect August to be a heavy buying month as well, with palm oil imports likely to reach 150,000 tons," Janmohammad told Dow Jones Newswires by telephone from Karachi. Only 20%-30% of the required amount for August has been purchased so far, he said.
Pakistani imports of crude and refined palm products for calendar year 2010 will reach 1.85 million tons, up 3% from 1.79 million tons last year, Janmohammad said.
Purchases of refined, bleached and deodorized (RBD) palm olein will continue to dominate Pakistan's total palm oil imports in 2010, he said.
Pakistan relies heavily on imports to supply its edible oil consumption of 3 million tons a year, as it produces only some 800,000 tons of oil a year from sunflowers, rapeseeds and cottonseeds.
Purchases of palm oil should decline in the September-October period, when cottonseed oil begins arriving, PEORA's Janmohammad said.
Prices of crude palm oil, or CPO, are expected to decline due to a seasonal increase in palm oil supply during the July-September quarter, but rising festive demand from the Middle East as well as the Indian subcontinent may lead to a drawdown in palm inventories, boosting prices.
Traders said Pakistan's CPO imports may rise after the government said in its federal budget last month that it would reduce import duties on the commodity to PKR8,000/ton ($94) from PKR9,000/ton, beginning July 1.
Based on SGS data, CPO imports to Pakistan increased nearly three-fold in the first half of July, to 25,200 tons, compared with only 9,000 tons for the same period in June.
Janmohammad said the country's CPO imports may "improve but not exorbitantly, as it's still difficult for refiners to make good margins."
That's because the narrow price differential between CPO and RBD palm oil makes it cheaper to import the latter, rather than shipping in CPO and then refining it locally.
Pakistan sources around 95% of its palm oil from Malaysia and the remainder from Indonesia. But in the last few years, Pakistan has bought more CPO from Indonesia due to a Malaysian quota on CPO exports designed to encourage sales of higher-value refined palm products.

Palm hit above 3-week high on strong demand, soy
JAKARTA, July 15 (Reuters) - Malaysian crude palm oil rose to a more than three-week high at midday , supported by gains in soybean markets and strong demand ahead of the start of Ramadan in August.
"We are moving in to Ramadan next month which will push up demand from Muslim countries," a trader at a foreign-brokerage firm said. "Soybean also gained which also supports the market."

India's June vegoil imports fall sixth straight mth
NEW DELHI, July 14 (Reuters) - India's vegetable oil imports fell an annual 6 percent in June, dropping for the six straight month but not as sharply as market expectations as farmers held back oilseed sales anticipating higher prices later.
Traders in the world's biggest importer of edible oils had expected an 18 percent fall in the overseas purchases of vegetable oils in June.

Food firms slow on green palm oil pledge-processor
AMSTERDAM, July 14 (Reuters) - More food makers should commit to only using palm oil that is certified as sustainable to help raise environmental standards in the industry, the head of palm oil processor Loders Croklaan Europe said on Wednesday.
Some food groups such as Unilever and Nestle  have made pledges to gradually switch to sourcing all palm oil from sustainably certified sources, but many other manufacturers and retailers are yet to follow.

India to step up Argentine soyoil imports
BUENOS AIRES, July 14 (Reuters) - India will continue to increase its purchases of Argentine soyoil this year, helping the South American country plug the gap left by China's boycott, the Indian ambassador to Buenos Aires said on Wednesday. Argentina is the world's biggest supplier of soybean oil, but exporters have been forced to look for new markets after top buyer China halted imports in late March in retaliation for Argentine import curbs on industrial goods.