Wednesday, July 21, 2010

20100721 1850 FCPO EOD Daily Chart Study.

FCPO closed : 2459, changed : +35 points, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : resume rising, buyer continue to build position.
Support : 2450, 2400, 2370 level.
Resistant : 2470, 2500, 2520 level.
Comment :
After market come down for a rest, FCPO continue to seek higher ground recovered all yesterday drop in lesser volume transacted following a stronger soy oil and crude oil futures.  Daily chart shows that market opened higher and tried to test lower support level but failed as buyer decided to keep buying lifted price to closed higher breaking resistant level. Outlook wise market remained upside biased.
When to buy : buy at support/weakness/break up with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100721 1836 FKLI EOD Daily Chart Study.

FKLI closed : 1344.5 changed : +7.5 points, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : weakening, buyer profit taking.
Support : 1337, 1330, 1325 level.
Resistant : 1345, 1350, 1360 level.
Comment :
Thin trading closed higher FKLI traded range bound within a 7.5 points range as regional market closed mostly higher. Daily chart reading suggesting a upside biased market with the negative divergence development between price and MACD Histrogram.
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.

20100721 1433 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1340.5 changed : +3.5 points, volume : low.
Bollinger band reading : side way range bound.
MACD Histrogram : weakening, buyer profit taking.
Support : 1337, 1330, 1325 level.
Resistant : 1345, 1350, 1360 level.
Comment :
Slow volume gap up FKLI opened near the high but immediately facing resistant as profit taking accelerate pressed price to the low but still managed to register minor gain. Hourly chart wise market seems still drifting between support and resistant level with clear direction with the reading call for a side way range bound market development.

20100721 1431 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2435, changed : +11 points, volume : high.
Bollinger band reading : side way range bound.
MACD Histrogram : getting lower, buyer still taking profit.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
Overnight soy oil and crude oil futures price gained backed FCPO to ended the first session little higher recovering partial of yesterday drop in moderate volume changed hand. Looking at the hourly chart, market opened higher and tested resistant level but instantly encounter selling pressure due to profit taking activities pushed price to go downward off the high. Reading wise, market is likely to trade side way range bound in the near term.

20100721 1025 Local & Global Economic News.

Malaysia: June inflation expected to show slight increase
Malaysia’s inflation is expected to rise slightly in June 2010 on the back of stronger food prices, say economists. They said the government's recent announcement on subsidy cuts for fuel and sugar is expected to affect the Consumer Price Index (CPI) headline number, the government's key inflation barometer, in July. The Statistics Department will release the data today. The CPI grew by 1.6% in May 2010. (BT)

Malaysia: Car sales rev up
The Malaysian Automotive Association (MAA) is confident that the domestic new car sales will hit an all-time high this year, helped by strong first half performance and economic recovery. The MAA has revised upwards its full-year sales forecast by about 20,000 units to 570,000, up from 550,000 units for a 3% growth originally. The industry's all-time high stood at 552,316 units recorded in 2005. (BT)

 China: Passes US as world’s biggest energy consumer
China overtook the US as the world’s biggest energy user last year, emphasizing that developing nations are driving global growth, according to the International Energy Agency. China consumed 2,252m metric tons of oil equivalent in 2009 in the form of crude, coal, natural gas, nuclear power and renewable sources, IEA Chief Economist Fatih Birol said. That exceeded the 2,170m tonnes used by the US. (Bloomberg)

South Korea: Considers steps to boost falling property market
South Korea’s government is considering steps to boost the country’s property market after house prices fell for three consecutive months through June. The package of measures may not be announced on 22 July as previously expected because ministers have yet to agree on whether to loosen borrowing rules, Kim Hee Jung, a spokesperson for President Lee Myung Bak’s office, said. House prices in Seoul fell 0.1% in April, 0.2% in May and 0.3% in June, according to data from Kookmin Bank, the nation’s largest lender. (Bloomberg)

EU: Spain, Ireland, Greece sell debt as Hungary bill auction flops
Spain, Ireland and Greece auctioned almost EUR10bn (USD13bn) of debt, while Hungary sold less than planned, as investors favored nations backstopped by the European Union’s EUR750bn aid package. Borrowing costs among the euro-region’s high-deficit nations have dropped from peaks in May after the EU devised the financial backstop in return for government-austerity measures. (Bloomberg)

UK: June budget deficit narrows less than forecast
Britain posted a larger budget deficit in June than economists forecast, underlining the challenge facing Chancellor of the Exchequer George Osborne as he tries to slash the biggest shortfall since World War II. The GBP14.5bn (USD22bn) shortfall compared with GBP14.7bn pounds a year earlier, the Office for National Statistics said in London. (Bloomberg) US:

Payrolls fall in 27 states, led by California
Payrolls decreased in 27 US states in June, led by California and New York, signaling the slowdown in hiring is broad-based. Employers in California cut staff by 27,600 workers last month and those in New York reduced employment by 22,500, the Labor Department said in Washington. Tennessee, Arizona and New Mexico rounded out the five states with the biggest job losses. (Bloomberg)

US:Housing starts slide more than forecast as credit ends
Housing starts fell in June to the lowest level in eight months after the expiration of a US government tax incentive caused sales to slump. Work began on 549,000 houses at an annual rate last month, fewer than the median estimate of economists surveyed by Bloomberg News and down 5% from May, Commerce Department figures showed in Washington. (Bloomberg)

20100721 1020 Malaysia Corporate News.

Enough water till 2012
The RM9bn Pahang-Selangor raw water transfer project has hit another snag with the Selangor government disputing the Federal Government’s claim that there would be a state-wide water shortage by 2014 if the project is not operational by then. Earlier, the Federal Government had warned of potential water rationing in Selangor and the Federal Territory by 2014 unless the Selangor government worked with the federal authorities in constructing the water treatment plant. However, Selangor Mentri Besar Tan Sri Khalid Ibrahim refuted the Federal Government’s warning and claimed that there was enough water for all consumers in the state and Kuala Lumpur till 2019. (Starbiz)

Puncak Niaga unit in pact for China water project
Puncak Niaga Holding’s 80% subsidiary, Sino Water Pte Ltd based in Singapore, has entered into a tripartite agreement with Lushan County Government, Henan Province in China and Environmental Holding Pte Ltd (EHPL) for the novation of the Lushan County Water Supply Project from EHPL to Sino Water. Under the tripartite agreement, EHPL agreed to transfer 83% equity of Luwei (Pingdingshan) Water Co Ltd (Luwei) and its associated rights and obligations to Sino Water. Puncak Niaga said Lushan County Government confirmed and agreed to the transfer of the equity of Luwei and obligations from EHL to Sino Water, and agreed to continue to fulfil its obligations as provided in the Lushan County Water Concession Agreement dated 29 Dec 2004 between Lushan County Government and EHPL and all supplemental agreements executed thereafter. (MalaysianReserve)

Khazanah places out TM shares for RM581m
The Government's investment arm Khazanah Nasional has placed out 5% of Telekom Malaysia (TM)'s stock in a deal valued at RM581.3m. The deal, executed yesterday, is believed to be the second largest share placement exercise in Malaysia so far this year. Maybank Investment Bank and Nomura Singapore were the joint placement agents for Khazanah. Some 178.9m of TM shares were placed out to local and foreign institutional investors at a fixed price of RM3.25 each, sources said. The price represented a 2.7% discount to TM's closing price of RM3.34 in the stock market yesterday. (BT)

MISC to buy 4 new ships for US$340m
MISC, the world's largest operator of LNG (liquefied natural gas) vessels, will buy four new very large crude carriers (VLCCs) for some US$430m (US$1 = RM3.22) MISC told Bursa Malaysia that its unit, AET Inc Ltd, had signed a contract with Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd yesterday for four new 320,000 dwt VLCCs. The tankers, which are part of AET's expansion plans for its VLCCs fleet, will be delivered between December 2012 and October 2013. (BT)

Apple Profit, sales jump after IPad, IPhone 4 debut
Apple Inc. posted a 78% surge in third-quarter profit as customers flocked to the new iPad tablet computer and latest version of the iPhone, helping the company benefit from a rebound in consumer spending. Net income rose to USD3.25bn, or USD3.51 a share, from USD1.83bn, or USD2.01, a year earlier. Analysts surveyed by Bloomberg had forecast per- share profit of USD3.11. Sales also topped analysts’ average estimate, fueling a gain in Apple shares in extended trading. In the period ended 26 June, sales gained 61% to a record USD15.7bn, topping analysts’ USD14.7bn estimate. Gross margin will be 35% in the current quarter, a decline from 39.1% last period. Apple, which posted second-quarter gross margin of 41.7%, said in April that the figure would narrow because of “very aggressive” pricing for the iPad. Apple’s forecasts typically fall below analysts’ estimates. Over the past 16 quarters, its projections have been 3% lower than analysts’ sales estimates and 12% below earnings-per-share predictions, according to Gene Munster, an analyst at Piper Jaffray Cos. in Minneapolis. (Bloomberg)

20100721 1010 Global Market News.

Earnings compete with economy to drive assets
LONDON, July 20 (Reuters) - Financial markets juggled with competing drivers  as investors generally boosted stocks in the hope of more good earnings reports and the dollar slipped on concerns about the U.S. economy.
"The market will look for guidance (from companies) for Q3 and to see how that is going and will be sensitive to any expressions of confidence or the lack of it," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin.

20100721 1008 Soy Oil & Palm Oil Related News.

Sep soyoil climbed 0.44 cent to 38.58 cents per pound.(Source: CME)

Indonesia May Revise August CPO Export Tax To 3% From 4.5% -Traders(Source: CME)
Indonesia is likely to revise its export tax on crude palm oil to 3% in August from the current 4.5%, trade participants said Tuesday.
When contacted, an official at the Ministry of Trade would neither confirm nor deny the change, but said the announcement will be made next week.
Indonesia raised CPO export tax to 4.5% in April.

K.S. Oils Plans To Invest INR8.5 Bln In Indonesia Palm Plantation - Report(Source: CME)
India's K.S. Oils Ltd. (526209.BY) plans to invest INR8.5 billion in the next three years to start palm plantation on more than 35,000 hectares in Indonesia, the BusinessLine newspaper reported Tuesday, without citing a source.
The company will invest INR1.5 billion for planting palm on 7,000 hectares in the fiscal year through March 2011, the report said.
The edible oil manufacturer plans to source its entire requirement of 200,000 tons of crude palm oil from its overseas plantations once they start bearing fruit, the newspaper said, citing K.S. Oils Managing Director Sanjay Agarwal.

Palm inches down on key exports data, soybean losses
JAKARTA, July 20 (Reuters) - Malaysian crude palm oil eased as investors took profits after weak key export figures and as a friendly forecast on crop weather knocked the rival soybean market lower.
"The bull is showing signs of fatigue and may need to step back to catch his breath," a trader at a local-brokerage firm said.

USDA raises US soybean ratings, lowers corn
CHICAGO, July 19 (Reuters) - U.S. corn condition ratings fell slightly during hot weather in the past week but soybean ratings improved, the U.S. Department of Agriculture said in a weekly report on Monday.
The figures surprised analysts who had predicted soybean ratings to dip and corn ratings to hold steady during a steamy week in the U.S. Midwest.

Brazil 09/10 soy sales reach 76 pct crop - Celeres
SAO PAULO, July 19 (Reuters) - Brazilian soybean producers have sold 76 percent of the record 68.5-million-tonne 2009/10 crop by July 16, up from 74 percent the week prior, analysts Celeres said on Monday.
Sales of the new crop were still behind the 80 percent sold of the previous crop last year at this time, Celeres said.