Friday, July 23, 2010

20100723 1828 FCPO EOD Daily Chart Study.

FCPO closed : 2498, changed : -21 points, volume : lower.
Bollinger band reading : correction upside biased.
MACD Histrogram : turned downward, buyer continue to take profit.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2520, 2550 level.
Comment :
Profit taking FCPO ease lower in lower volume traded ahead of the weekend after opened higher. Daily chart wise, market is currently having correction within a upside biased reading market development.
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.

20100723 1818 FKLI EOD Daily Chart Study.

FKLI closed : 1354, changed : +11.5 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : resume upward, buyer position remained intact.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385  level.
Comment :
Slightly improved volume FKLI closed near the high which is also the year high after positive sentiment market development regionally. Daily chart market started to trade quietly but the afternoon session last hour buying activities accelerate pushing price higher right until closing triggered testing market seller to cover short position. Technical reading wise, market break new high boldly with outlook suggesting further upside biased potential market. The only issue here is the lack of volume participation.
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.

20100723 1306 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1347 changed : +4.5 points, volume : low.
Bollinger band reading : side ways upside biased.
MACD Histrogram : rising higher, buyer defending.
Support : 1345, 1337, 1330 level.
Resistant : 1350, 1360, 1375 level.
Comment :
Another low participation volume range bound FKLI that traded higher following a firmer overnight U.S. and regional market development. Hourly chart wise market open higher and traded side way range bound as buyer seems insist to defend their position no letting any chance for seller to take advantage of. Reading is suggesting a side way range bound upside biased market in the near term.

20100723 1257 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2514, changed : -5 points, volume : moderate.
Bollinger band reading : range bound correction upside biased.
MACD Histrogram : weakening,  buyer taking profit.
Support : 2500, 2470, 2450 level.
Resistant : 2520, 2550, 2570 level.
Comment :
FCPO ease lower marginally after past few days of rally in moderate volume transaction as buyer decide to book in partial profit. Hourly chart wise, market opened higher after crude oil and soy oil overnight rally but facing porfit taking selling pressure pushing price downward and current having a pullback correction. Outlook suggesting a range bound correction upside biased market reading.

20100723 1127 Local & Global Economic News.

Malaysia: Higher inflation seen in second half
Subsidy cuts will drive consumer prices higher in the 2H of the year, but the rise in inflation will be countered by the strong ringgit and positive trade figures, economist said. Official numbers showed Malaysian consumer prices rose 1.4% during 1H 2010. For the full year, inflation is officially projected to rise by between 2% and 2.5%. (StarBiz)

Malaysia: Foreign reserves at USD94.8bn
Malaysia’s international reserves was flat at USD94.8bn (RM305.26bn) on 15 July compared to 30 June, central bank data showed. The reserves were enough to finance eight months of retained imports and is 4.4 times the short term external debt. (Financial Daily)

Indonesia: Indonesian parliament OKs Nasution as central bank chief
Indonesia’s parliament approved the appointment of Darmin Nasution as central bank governor, a move seen as positive for the country’s reform drive and for bonds, stocks and the currency. Nasution has maintained the central bank’s key interest rate at a record low of 6.5% to aid bank lending and the economy, driving strong foreign buying at the short end of the bond curve and pushing stocks to a record high. (Financial Daily)

China: Economist see strong growth, no second stimulus
China is expected to maintain strong growth in the rest of this year and there is no need for second stimulus, government economists said. The State Information Centre forecast economic growth of 9.5% this year, which would be close to the average for the past 30 years and reflect China’s reasonable growth potential. (Bloomberg)

South Korea: Growth likely ’outperformed,’ adding pressure on rates
South Korea’s economy probably grew for a sixth straight quarter in the three months to June, adding to evidence that Asia’s fourth-largest economy is withstanding risks to the global recovery. Gross domestic product grew 1.3% in the second quarter from the prior three months, when it gained 2.1%, according to the median of seven estimates in a Bloomberg News survey. (Bloomberg)

EU: Europe consumer confidence rises more than forecast
European consumer confidence improved more than economists forecast in July amid signs the region’s sovereign-debt crisis is easing. An index of consumer sentiment in the 16-nation euro area increased to minus 14.1 from minus 17.3 in June, the Brussels- based European Commission said. That’s the highest since May 2008. Economists had projected a July reading of minus 17, according to the median of 21 estimates in a Bloomberg survey. (Bloomberg)

EU: Europe’s services, manufacturing growth accelerates
Growth in Europe’s services and manufacturing industries unexpectedly accelerated in July as concern over the sovereign-debt crisis eased and an increase in global trade spurred exports. A composite index based on a survey of euro-area purchasing managers in both industries rose to 56.7 from 56 in June, London-based Markit Economics said. Economists had projected a drop to 55.5, the median of 18 estimates in a Bloomberg survey showed. (Bloomberg)

E.U: Industry orders unexpectedly rise in May, led by capital goods. Orders in the 16-nation euro area rose 3.8% MoM from April, when they gained 0.6% MoM. In the year, industrial orders jumped 22.7% YoY. (Source: Bloomberg)

U.K: Retail sales rose more than forecast in June as the World Cup tournament stoked purchases at electrical goods shops and department stores. Sales climbed 0.7% MoM. (Source: Bloomberg)

US: Sales of existing homes fell in June
Sales of US previously owned homes in June dropped less than forecast, sustained by a backlog of deals that will dry up when a government credit expires. Purchases slipped for a second month, falling by 5.1%. Transactions will be “very low” in coming months as the federal incentive ends, the National Association of Realtors’ chief economist, Lawrence Yun, said in a news conference. (Bloomberg)

US: Index of US leading economic indicators fell 0.2%
The index of US leading indicators fell 0.2% in June, the second decline in three months, signaling the world’s largest economy will cool. Federal Reserve Chairman Ben S. Bernanke repeated his forecast for a “moderate” pace of growth even as he said the outlook remains “unusually uncertain.” Recent reports on housing, retail sales and the labor market have pointed to weakness in the economy as the second half begins. (Bloomberg)

US: New US jobless claims up
New jobless claims jumped in the US by the most since February, reversing the previous week's sharp decline. The rise is partly a result of seasonal factors but also reflects the job market's weakness. New claims for unemployment insurance jumped by 37,000 to a seasonally adjusted 464,000, the Labour Department said. (BT)

Brazil: Signals rate increases to end as growth cools. The bank's board, led by Henrique Meirelles, increased the benchmark rate by a half-point to 10.75%. (Source: Bloomberg)

Taiwan: Unemployment rate fell to 18-month low in June , the lowest level in 18 months as a recovery in exports prompted manufacturers to hire. The seasonally adjusted rate declined to 5.20% last month from 5.22% in May, the statistics bureau said in Taipei. (Source: Bloomberg)

Commodities: Heating up. This year is shaping up to be the hottest year on record for the world. Unusual weather patterns are creating havoc for global agriculture production, damaging crops and sending agricultural commodity prices soaring. Crude palm oil futures surged 2.5% yesterday to a 2-month high of RM2,519 per tonne. (Source: The Edge Financial Daily)

20100723 1123 Malaysia Corporate News.

US stocks rise as UPS, AT&T, Qualcomm lift profit forecasts
US stocks rose, with the Standard & Poor’s 500 Index gaining the most in two weeks, after companies from United Parcel Service Inc. to AT&T Inc. and Qualcomm Inc. increased profit forecasts. UPS jumped 5.2% as growing overseas demand and cost- cutting improved the earnings outlook at the world’s largest packagedelivery company. AT&T rose 2.4% as quarterly profit beat analysts’ estimates on demand for Apple Inc.’s iPhone. Qualcomm, the biggest maker of chips that run mobile phones, jumped the most since November 2008 as it predicted higher selling prices for devices based on its technology. The S&P 500 rose 2.3% to 1,093.67 as of 4 p.m. in New York. The Dow Jones Industrial Average climbed 201.77 points, or 2%, to 10,322.30. Both gauges gained the most since 7 July. (Bloomberg)

UEM expresses interest in MRT job
UEM group is prepared to bid for the multi-billion mass rapid transit (MRT) project if the job was tendered out. “If it is open for tender, then we will submit a bid”, UEM Group managing director Datuk Izzaddin Indris told reporters in media briefing yesterday. A Gamuda-MMC joint venture, which was proposed the MRT job to the government and has done major tunneling works in Malaysia and Taiwan, is touted as the leading candidate for the MRT job. (Financial Daily)

NSTP to be delisted
Trading of The New Straits Times Press (Malaysia) (NSTP) shares will be suspended as at 9am on 30 July. The company told Bursa Malaysia yesterday that it will be delisted from the main market now that holding company Media Prima has secured more than 90% of its listed shares. (BT)

EONCap to call shareholders meeting 19 Aug
EON Capital (EONCap) is planning for shareholders to meet on 19 Aug 19 to decide on a RM5.06bn takeover offer from Hong Leong Bank, a source close to the matter said. A circular on the resolutions for the meeting is expected to be sent out to shareholders next Wednesday. Hong Leong had recently stipulated that EONCap should hold that meeting by 20 Aug. If shareholders vote in favour of the deal - and analysts largely expect they will - EONCap's board will have to wait for a High Court judgement on whether the deal is legal before being able to accept it. This is because EONCap's biggest single shareholder Primus Pacific Partners, unhappy with the takeover price, had in June taken the matter to court, claiming the offer was unlawful in its structure. (BT)

MSC plans to sell stake in Australian gold producer
Malaysia Smelting Corporation (MSC) on Thursday entered into a share purchase and call option deed with Bendigo Mining Ltd relating to the sale of 45m ordinary shares in BCD Resources NL and the grant of a call option over a further 39m shares. The disposal and call option is pursuant to the revised growth strategy for MSC whereby the group seeks to reposition itself to focus on its original core business of tin and accordingly, seeks now to divest the non-tin asset. In a statement, MSC said it currently owns 90m BCD Resources shares, representing 21.3% of BCD Resources' issued share capital. The disposal of and call option for BCD Resources shares is in respect of 84m shares representing 19.92% of BCD Resources' issued capital. (Bernama)

Nagamas in China deal
Nagamas International signed a memorandum of understanding yesterday with Yongzhou City people’s government to undertake an international multi-trade project in China. It told Bursa Malaysia that the project involves planning and investing in land in the surrounding area of Lingling Airport in Yongzhou and Chaisze town as well as earmarking a 50 sq km area for the aviation logistics project. (BT)

Properties: 1MK sale marks return of foreign interest in Mont'Kiara. 1Mont'Kiara (1MK) which is 50:50 owned by Singapore-based CapitaLand and London-listed Aseana Properties Ltd is believed to have been sold for RM333m to a real estate fund management company affiliated with Hong Kong?s Cheung Kong Group. (Source: The Edge Financial Daily)

QSR: To invest RM10m to open 11 new outlets. QSR Brands Bhd, which operates the Pizza Hut chain of restaurants in Malaysia and Singapore, plans to invest close to RM10m this year to open 11 new outlets. Director for integrated poultry and food manufacturing, Azizah Abdul Rahman, said the company plans to have 20 new Pizza Hut outlets by the year-end. (Source: Business Times)

SEB: Weighs options on Bakun. Sarawak Energy Bhd (SEB) is looking at whether to buy or lease the 2,400MW Bakun Dam in its long-term bid to develop the hydropower and industrial sectors in the state. SEB hopes to reach an agreement with Sarawak Hidro Sdn Bhd, the owner of the dam, and the Finance Ministry, which in turn owns Sarawak Hidro, in one or two months' time on the preferred option. (Source: The Star)

20100723 1104 Global Market News.

Asia stocks up, euro firm; stress tests eyed
HONG KONG, July 23 (Reuters) - Asian stocks rose as strong earnings from economic bellwethers such as Caterpillar tempered concerns about a global slowdown, while the euro steadied ahead of European bank stress test results later in the day.
"There is obviously the risk that if too many banks pass and do so with a comfortable margin, the test may be judged as too easy to have actually been informative about the strength of the banking system," said Goldman Sachs analyst Nick Kojucharov wrote in a note.  

GLOBAL MARKETS: Global stocks, euro rally on earnings and data
NEW YORK, July 22 (Reuters) - Global stocks rose on Thursday and the euro strengthened, backed by upbeat corporate results, better-than-expected U.S. housing data, and an improvement in European manufacturing and services activity.
"The companies that are doing well generally are the ones that have significant overseas revenues, or some kind of unique product," said Kim Caughey, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh. 

Stocks, euro bounce in run-up to stress tests
LONDON, July 22 (Reuters) - World stocks bounced  while the euro gained broadly as investors grew more optimistic the looming results of stress tests on European banks were unlikely to send shockwaves through markets.
"There's just generally a bit more optimism, particularly considering Morgan Stanley's results yesterday were absolutely amazing," said Joshua Raymond, market strategist at City Index.

20100723 1101 Soy Oil & Palm Oil Related News.

Soyoil futures rallied Thursday, propelled by speculative and technical buying. The bullish influence of soaring crude oil prices sent futures on an upward path, with adjustments in the meal/oil spread relationship aiding the gains, Allendale Inc. analyst John Kleist said. Crude oil influences soyoil due to its use in making renewable fuels. December soyoil settled 0.65 cent, or 1.7%, higher at 39.70 cents per pound.(Source: CME)

Palm oil hits 10-week high on output concern, oil gain
JAKARTA, July 22 (Reuters) - Malaysian crude palm oil gained 2.52 percent  after hitting two and a half month high on concern that rains may slow palm oil output and as gains in crude oil as well as soyoil offered support.
"The strength comes from outside market but there is also talk production will be below expectation because of overtly wet weather," a trader at a foreign-brokerage firm said.

India drops planned curbs on vegoil traders at Kandla port
NEW DELHI, July 22 (Reuters) - India's customs authorities have delayed a decision to bar traders from buying and selling vegetable oils headed for Kandla port, the main hub for palm oil imports in the world's top buyer of edible oils.
The move had rattled traders at Kandla, through which more than a third of India's total edible oils imports passed in June, because the customs order sought stronger documentation of consignments in an effort to widen the tax net.

Argentina cuts corn, soy harvest forecasts
BUENOS AIRES, July 21 (Reuters) - Argentina's Agriculture Ministry on Wednesday trimmed its monthly estimate for 2009/10 soy output to a record 52.7 million tonnes from a previous estimate for 54 million tonnes, saying the sowing area was smaller than it previously estimated.
Yields remained high, though, and the new estimate exceeded a record volume set in the 2006/07 season by 11 percent.

OIL: Crude steady above $79 after jump on storm fears
TOKYO, July 23 (Reuters) - U.S. crude futures held steady over $79 a barrel on Friday, after rallying the previous day as a potential storm threatened production in the Gulf of Mexico and strong corporate results lifted sentiment for oil.
Energy companies in the U.S. Gulf Coast were closely monitoring a tropical depression late on Thursday that could become a storm as it crosses the region, with some pulling workers from offshore platforms.

COMMODITY MARKETS: Oil nears $80; CRB hits one-month high
NEW YORK, July 22 (Reuters) - Oil ended at 11-week highs just below $80 a barrel on Thursday and copper rose to near two-month peaks, spurred by a weaker dollar and positive economic data on both sides of the Atlantic.
"Home sales data was great," said Burt White, managing director and chief investment officer at LPL Financial in Boston. "On an absolute basis, it's (bad), but, man, it is in the right direction and certainly crunched consensus, and that is great news."