Tuesday, July 20, 2010

20100720 1823 FCPO EOD Daily Chart Study.

FCPO closed : 2424, changed : -30 points, volume : higher.
Bollinger band reading : correction upside biased.
MACD Histrogram : reverse downward, buyer book in profit.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
FCPO finally recorded a down day after nearly 2 weeks of rally by easing lower in better volume traded after both cargo surveyor released a lower export data. Daily chart shows that market opened unchanged but selling pressure started to come in and last hourly press price to closed rigth at the low of ther day. Reading wise, market is having a downward correction within a 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.

20100720 FKLI EOD Daily Chart Study.

FKLI closed : 1337 changed : -3 points, volume : lower.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : weakening, buyer still profit taking.
Support : 1337, 1330, 1325 level.
Resistant : 1345, 1350, 1360 level.
Comment :
7.5 points range and closed lower FKLI closed right at support level in low participation volume transacted. Daily chart wise, market tested resistant and closed a support level forming a shooting star candle bar and still registering a side way range bound 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.

20100720 1300 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1343 changed : +3 points, volume : low.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer holding on.
Support : 1337, 1330, 1325 level.
Resistant : 1345, 1350, 1360 level.
Comment :
3 points higher FKLI continue its upward movement with slow volume traded but still move within the immediate support and resistant level. Hourly chart wide market opened little lower but decided to head north further with the reading call for an upside biased market development.

20100720 1249 FKLI Mid Day Hourly Chart Study.

FCPO closed : 2446, changed : -8 points, volume : lower.
Bollinger band reading : range bound upside biased.
MACD Histrogram : getting lower, buyer taking profit.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
Lower export figure release lead FCPO to ease slightly lower in moderate volume traded. Hourly chart opened unchanged and traded side way range bound with 16 points range market doing consolidation with the reading suggesting a correction range bound upside biased market.

20100720 1006 Global Economic News.

India: Inflation to quicken in July India’s inflation will accelerate in July, increasing pressure on the central bank to raise interest rates next week for a fourth time in five months. The benchmark wholesale-price index jumped 10.55% in June after climbing 11.23% in April, the most in 19 months (Bloomberg)

China: Export growth may slow in second half of 2010
China’s export growth may slow over the rest of the year to less than half the pace of the first six months. Weaker export growth may exacerbate a second-half slowdown in the expansion of the world’s third-biggest economy, encouraging the government to limit gains by the yuan against the dollar. (Bloomberg)

UK: Home asking prices fell in July for first time this year
UK home sellers cut prices for the first time this year in July and will probably keep doing so for the remainder of 2010. Asking prices fell 0.6% to 236,332 pounds (USD364,708) and will drop 7% in the second half, wiping out gains so far this year. (Bloomberg)

E.U: Construction output declines for second month in May , led by declines in Germany. Construction in the 16-nation euro region fell 1% MoM from April, when it decreased 0.3% MoM, E.U's statistics office in Luxembourg said. From a year earlier, output in May dropped 6.3% YoY after falling 5.7% YoY in April. (Source: Bloomberg)

Ireland: Moody's cuts rating on debt outlook, bank costs. The company lowered Ireland to Aa2 from Aa1 and moved the country to a "stable" from a "negative" outlook, it said in a statement. Ireland lost its top rating at Moody's in April 2009. Irish bonds fell after the downgrade. (Source: Bloomberg) 

US: Homebuilder confidence falls to one-year low
Builders in the US turned more pessimistic in July than forecast, a sign the expiration of a government tax credit will depress home construction. The National Association of Home Builders/Wells Fargo confidence index dropped to 14 this month, the lowest level since April 2009. (Bloomberg)

US: Second-quarter growth forecast lowered to 2%
A surge in imports and slower consumer spending reduced US economic growth in the second quarter. The world’s largest economy grew at a 2% annual pace from April through June, down from a previously estimated 3% pace. (Bloomberg)

US: Economy at start of ‘protracted sluggishness’ The US economy faces a period of “protracted sluggishness” as consumers are wary to spend. The US economy grew at a 2.7% annual rate in the first quarter, less than previously calculated, reflecting a smaller gain in consumer spending and a bigger trade gap. (Bloomberg)

20100720 1003 Malaysia Corporate News.

Dunham-Bush plans share sale
Dunham-Bush (Malaysia) will sell 30% of its shares in either the Hong Kong or Singapore stock market in 2012 to raise as much as US$200m (RM646m) for expansion purposes. The company, which makes heating, refrigeration and air-conditioning systems, aims to triple its revenue in three to four years from US$155m (RM501m) last year. Dunham-Bush is targeting US$180m (RM581m) in revenue this year and US$300m (RM969m) in 2012, its chief executive officer, Jeffrey Scott Albright, said. (BT)

HELP proposes a bonus issue
Education player HELP International Corp has proposed a three-for-five bonus issue as part of a corporate exercise to better reflect its scale of operations and enhance liquidity. The proposal will see the issuance of up to 53.27m shares of 50 sen each, increasing HELP’s share base by some 60% from its present base of 88.8m shares. The bonus issue will see its net asset per share reduced to 66 sen from RM1.09 as at end-October 2009. HELP has also proposed to increase its authorized share capital to RM250m from RM50m. (Financial Daily)

Tanjung Offshore group gets RM8m purchase orders
Tanjung Offshore has received a purchase order worth RM8m from Punj Lloyd Oil and Gas (Malaysia) SB and Farab International FZE, respectively, for the provision of air compressor packages. Tanjung Offshore through its subsidiaries are in the midst of satisfying the scope of work for the purchase order that involves engineering, assembly, testing and delivery of the air compressor packages. (Financial Daily)

MAS in RM2.2bn deal with Pratt & Whitney
Malaysia Airlines is buying 34 engines for RM2.2bn from Pratt & Whitney for its 17 new Airbus aircraft. The 15 passenger and two freight aircraft will be powered by PW4170 Advantage70 engines, MAS said in a statement yesterday. The national carrier has ordered up to 25 A330-300 and four A330-200F worth US$4.5bn (RM14.5bn) at list price, which includes the cost of the engines. The aircraft, to be delivered between 2011 and 2015, will serve the growing markets of South Asia, China, North Asia, Australia and Middle East. MAS have also ordered up to 55 B737-800s and six A380s. The latest version of the A330-300 will offer MAS greater levels of economic efficiency, with lower fuel burn and maintenance costs, the airline said. (BT)

Faber not for sale
Faber Group is not for sale and UEM Group has yet to strike a deal to hive off its stake in Time Engineering, said UEM Group group managing director/chief executive officer Datuk Izzaddin Idris. He was responding to a query at a media luncheon yesterday on a report quoting sources as saying UEM Group had received at least four bids or offers to purchase its stake in Time Engineering for 20 sen to 40 sen a share. (StarBiz)

Axiata sells stake in Multinet
Axiata Group has disposed of its entire 89% stake in Multinet Pakistan (Pte) Ltd to its second largest shareholder, Adnan Asdar Ali, for US$15m (RM48.8m). The company said in a statement yesterday that the divestment to Adnan, who owns (the remaining) 11% of Multinet, was part of its strategy to focus on mobile communications. (StarBiz)

Sarawak team probing alleged dumping of plywood in S. Korea
Sarawak Timber Industry Development Corp (STIDC) officers are now in South Korea to gather more information in the probe into accusations that nine Malaysian plywood exporters, including eight from Sarawak, were dumping their products in South Korea. In its petition to the Korean Trade Commission, the association had accused Malaysian plywood suppliers of selling their products at about 88% below the local market value. (StarBiz)

Malaysia: Food companies pledge not to pass on prices
Malaysian food and drinks companies gave assurances that they won’t pass on higher sugar and fuel costs to consumers after the government cut subsidies last week, said Ismail Sabri, Minister for Domestic Trade, Cooperatives and Consumerism. Representatives of manufacturers, restaurateurs and coffee-shop owners met with him to discuss potential risks to inflation. (Bloomberg)

Ho Hup: Up 37% on new regularization plan. Shares of financially distressed Ho Hup Construction Company bhd surged 37.1% or 19.5 sen to 72 sen yesterday following an announcement that it planned to acquire 2 companies to help regularize its financial position. Ho Hup which has been classified as a PN17 affected issuer due to its deficit in shareholders' funds, announced last week that it had entered into a memorandum of understanding (MoU) to acquire 100% equity in 2 companies, namely Fivestar Development (Puchong) Sdn and Kolektra Recreation Sdn Bhd. (Source: The Edge)

IOI: La Nina to have impact on palm oil output. IOI Corp, Malaysia No.2 planter, expects the brewing La Nina weather event to have a major impact on palm oil production in Southeast Asia as heavier rainfall may hamper harvesting. IOI chairman Tan Sri Lee Shin Cheng said La Nina will coincide with seasonally higher production months and if this happens, palm oil prices will surge. (Source: Business Times)

IPO: SIG Gases to raise RM28.5m from IPO. SIG Gases Bhd, a manufacturer, refiller and distributor of industrial gases expects to raise about RM28.5m from its IPO for expansion of its refilling facilities in Malacca and Kuantan. The firm is en route for a listing on Bursa Malaysia?s main market in the 3rd quarter. (Source: Business Times)

Maybulk: A landmark case in the making? Yesterday marked the start of a court battle between 3 individuals and Malaysian Bulk Carriers over the company's rejection of their share applications made with pink forms. The 2 parties slug it out in court on the importance of a pink form in the distribution of shares for an initial public offering (IPO). The company rejected their share applications that were made with pink forms. (Source: Business Times)

RHB Cap: Extension of conditional sale and purchase agreement for PT Bank Mestika Dharma. The period to satisfy or waive the conditions precedent of the CSPA has been extended from 16 July 2010 to 19 April 2011. (Source: Bursa Malaysia) 

20100720 0946 Global Market News.

Stocks ease, euro steadies from early fall
LONDON, July 19 (Reuters) - Global stocks slipped  and investors briefly shunned the euro after Moody's cut the credit rating of Ireland, slightly unsettling markets already worried about a slowdown in the pace of U.S. economic recovery.
"Investors are trying to assess the degree of slowdown in the recovery that we have seen over the last 12 months," said Keith Bowman, analyst at Hargreaves Lansdown.

20100720 0946 Soy Oil & Palm Oil Related News.

Sep soyoil slipped 0.34 cent to 38.14 cents per pound, and Sep soymeal dipped $3.50 to $294.70.(Source: CME)

Malaysia July 1-20 Palm Oil Exports Likely Down 3%-4% On Month(Source: CME)
Malaysia's palm oil exports during the first 20 days of July will likely be 3%-4% lower than in the June 1-20 period at 877,000 metric tons, trading executives said Monday.
Cargo surveyor Intertek Agri Services estimated June 1-20 exports at 906,321 tons, while SGS (Malaysia) Bhd. put the figure at 914,849 tons.
Both surveyors will issue July 1-20 palm oil export data Tuesday.

China, Argentina Soyoil Spat Won't Escalate -Eurasia Group(Source:CME)
Argentina and China failed to resolve an ongoing dispute over soyoil during President Cristina Fernandez de Kirchner's visit to China last week, but the issue isn't likely to escalate, Eurasia Group said in a report over the weekend. China stopped imports of Argentinian soy oil in April in retaliation after Argentina imposed anti-dumping measures on some Chinese industrial exports.
Neither country is in a hurry to resolve the dispute, Daniel Kerner, an analyst at the Washington-based group, said.
"Beijing has already replaced imports from Argentina, leveraging its surplus of soyoil and purchasing soyoil from Brazil and the United States, the latter for the first time since April 2009."
Argentinian soyoil exporters have also begun to shift away from China, finding other markets such as India, which now accounts for 44% of their soyoil exports.
The dispute is unlikely to escalate, Kerner said.
The two countries agreed to expand commercial ties during Kirchner's visit, with China agreeing to finance $10 billion in rail projects in Argentina as Chinese companies show growing interest in Argentina's energy sector.
Argentina is the world's largest exporter of soyoil and accounts for almost 80% of Chinese soy oil imports, Eurasia Group said.
But overall, Argentina is a minor trade partner with China.
Kerner said that 6% of Argentina's total outgoing shipments last year went to China, while exports to Argentina were less than 0.5% of China's total shipments.

Palm ends up 0.2 pct on hopes of lower stocks, weather
JAKARTA, July 19 (Reuters) - Malaysian crude palm oil closed up  as expectations of lower stocks due to strong demand offered support and as concerns that erratic weather may cut rival soybean yields.
"Weather in the U.S. and an expectation of lower end-stocks because of strong demand and lower palm oil yield, pushed the market up in late session," a trader in a local-brokerage firm in Kuala Lumpur, said.