Wednesday, July 28, 2010

20100728 1821 FCPO EOD Daily Chart Study.

FCPO closed : 2495, changed : +10 points, volume : lower.
Bollinger band reading : correction upside biased.
MACD Histrogram : weakening, buyer defending position.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2520, 2550 level.
Comment :
Lesser volume participation FCPO closed little higher after tested above resistant level but lack of supportive volume resulted price to closed just 5 points below it. Daily chart wise, market opened lower and closed near the high formed a up bar candle but still lack of supportive volume. Outlook retained a correction range bound upside biased market with potential resumption of upward movement should better volume returned to 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.

20100728 1718 FKLI EOD Daily Chart Study.

FKLI closed : 1356, changed : +0.5 point, volume : lower.
Bollinger band reading : range bound, upside biased.
MACD Histrogram : weakening, buyer defending position.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385 level.
Comment :
Mostly rollover activities FKLI ended the day 1 tick higher with slightly lower volume changed hand. Today daily chart formed another doji bar candle as market traded side way range bound testing support and resistant level without designate direction. Outlook remained unchanged with 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.

20100728 1302 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1358.5, changed : +3 points, volume : high.
Bollinger band reading : upside biased.
MACD Histrogram : recovering, buyer still defending.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385 level.
Comment :
High volume transaction FKLI closed for lunch at higher ground as market continue to move range bound testing support and resistant level. Hourly chart wise, market still suggesting a upside biased potential market development for the near term.

20100728 1301 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2488, changed : +3 points, volume : low.
Bollinger band reading : side way range bound.
MACD Histrogram : recovering, buyer seems testing market.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2520, 2550 level.
Comment :
Poor trading volume FCPO manage to record small gain for the morning session after market opened lower and traded side way within a tight 22 points range. Hourly chart wise, market tested and closed above middle Bollinger band resistant level with the outlook suggesting a side way range bound reading.

20100728 1023 Global Economic News.

U.S: Confidence slips to five-month low in July. The Conference Board's sentiment index fell to 50.4, below the median forecast of economists surveyed by Bloomberg News and to the lowest level since February this year. (Source: Bloomberg)

U.S: Home prices in 20 cities rose more than forecast in May. The S&P/Case-Shiller index of property values increased 4.6% YoY from May 2009, the biggest year-over-year gain since August 2006. (Source: Bloomberg)

India: Central bank increased a key interest rate as it battles to contain a surge in inflation that's triggered labor strikes and opposition-party organized public protests. The Reserve Bank of India raised the reverse repurchase rate to 4.5% from 4.0% and the repurchase rate to 5.75% from 5.5%, according to a statement from the central bank in Mumbai. (Source: Bloomberg)

S. Korea: Consumer sentiment held at five-month high in July as the nation's economy strengthened and the region weathered global risks. The sentiment index was 112, unchanged from June. (Source: Bloomberg)

Korea - Bank of Korea wants to signal rate rise at June meet
A majority of Bank of Korea board members wanted to flag an imminent rise in interest rates at their June meeting, before increasing borrowing costs this month for the first time since the global crisis. Three out of five members urged Governor Kim Choong Soo to send a stronger signal that rates may start to rise as early as July, according to minutes of the 10 June meeting released by the central bank. (Bloomberg)

Hong Kong: Exports climb more-than-estimated 26.7% YoY in June. Shipments rose to HKD 267.6b (USD 34.4b) after gaining 24.4% YoY in May. (Source: Bloomberg)

South Africa - Sheds jobs, denting economic recovery
South Africa’s unemployment rate, the highest of 62 countries tracked by Bloomberg, was little changed in the second quarter as the economy failed to create jobs, undermining the strength of the recovery. The jobless rate increased to 25.3% from 25.2% in the first quarter, statistics showed. The number of people with work fell by 61,000 to 12.7m. (Bloomberg)

20100728 1007 Malaysia Corporate News.

HeiTech Padu: Secures RM282m RTD project. Heitech Padu Bhd has secured a RM282m contract from the government to undertake an integrated solutions project for the Road Transport Department. The company said on Tuesday, July 27 the project will take 24 months to develop and will have a warranty period of 24 months after completion. (Source: Business Times)

IJM: The Light to contain world-class appeal. A performing arts centre to rival Australia's Sydney Opera House, waterfront retail promenade and an international standard marina are among the attractions property developer IJM Land Bhd will unveil when it launches the second phase of its flagship waterfront "The Light" development in Penang at the end of the year. The proposed iconic arts centre, known as "The Pearl" is expected to boast a seating capacity of 2,000 and is set to be sprawled over 0.8ha. (Source: Business Times)

IPO: Complaint derails Focus Point listing. Malaysia's largest professional eyecare chain, Focus Point Holdings Bhd, had to delay its listing at the eleventh hour after an anonymous complaint about its business. The board of directors believes that the allegations are adequately refuted and that the allegations were made with malicious intent to derail the company's listing plans and damage the group's business operations. (Source: Business Times)

Maybank Investment: Plans to enter Singapore, Indonesia. Maybank Investment Bank Bhd planned to expand its operations to Singapore and Indonesia by June next year, said Maybank CEO Tengku Datuk Zafrul Tengku Abdul Aziz. Maybank Investment hoped to offer services such as corporate finance, Islamic advisory, structured and treasury products in these markets. (Source: The Star)

O&G: Steady crude oil prices spur deepwater projects. Petronas Carigali Sdn Bhd's head of deepwater development Rosli Hamzah said that Transocean Ltd's drillship Deepwater Expedition would arrive in Malaysian waters in September, while the 2nd ship Frontier Phoenix was scheduled to be in by November. Rosli said that Malaysia needed 3 drillships between 2010 and 2015 as deepwater areas will make up for as much as 40% of the country?s oil output in 10 years. (Source: The Star)

PetDag: Expand retail segment, plans RM500m capex. Petronas Dagangan Bhd (PetDag), the domestic marketing arm of Petronas is planning to invest about RM500m in capex for FY ending March 31, 2011 towards expanding its retail segment. The retail and commercial segments contribute around 46% to 47% each to the group's revenue, with 5% coming from the liquefied petroleum gas (LPG). (Source: The Edge Financial Daily)

Kong to PKA: Pay up
Transport Minister Datuk Seri Kong Cho Ha yesterday directed the Port Klang Authority’s (PKA) board to release payment due to the bondholders of the Port Klang Free Zone (PKFZ) project setting aside the port authority’s earlier decision to hold back payment. “ We will pay according to what’s been decided much earlier, according to the schedule that’s been set,” he said after was asked to comment on report that PKA’s board has decided to withhold the final payment of RM222.58m to Free Zone Capital (FZCB) one of the four SPVs established by PKFZ turnkey contractor, Kuala Dimensi SB, for the project . (Financial Daily)

EON Cap to hold EGM on HLB takeover
The board of EON Capital, owner of Malaysia’s seventh largest bank, will ask shareholders to vote on Hong Leong Bank’s RM5.06bn (US$1.6bn) takeover offer on 19 Aug, according to a statement sent to Bursa Malaysia yesterday. The move defies EON Cap’s biggest investor which has threatened to seek RM1.11bn in damages if the deal goes through at the current price. Shareholders are divided over whether to accept an all-cash offer of RM7.30 a share from billionaire Tan Sri Quek Leng Chan’s Hong Leong Bank (HLB). (StarBiz)

M3nergy offer receives over 85% acceptance
Despite differing views on the takeover offer of M3nergy, an overwhelming majority, or over 85% of its shareholders, have accepted Adamus Avenue Sdn Bhd’s offer price of RM1.85 per share. A source close to the deal told Bernama that the offer price must have been deemed to be attractive, fair and reasonable, to compel these shareholders to make the acceptances. And it will be more than a week to go before the 3 Aug deadline for acceptances, he said. The source said this in response to a recent filing by M3nergy to Bursa Malaysia, which said that its board had viewed the offer to be unfair, unreasonable and uncompelling. (StarBiz)

BP head quits over Gulf disaster
BP's vilified chief executive Tony Hayward resigned yesterday as the energy giant announced that the devastating Gulf of Mexico oil disaster will cost USD32.2bn and caused a record quarterly loss. Hayward, whose PR gaffes handling the oil spill made him a target of US fury, will be succeeded by American executive Bob Dudley, who is currently in charge of Gulf clean-up operations. BP said it had made a record USD16.9bn loss in the second quarter and that it will sell USD30bn of assets over the next 18 months as it seeks to streamline operations and return to profitability. (BT)

20100728 0957 Global Market News.

Asian stocks, euro ease on profit-takingSINGAPORE, July 28 (Reuters) - The euro slipped from 11-week highs and Asian stocks marked time  as a recent rally lost steam after a drop in U.S. consumer confidence, while the Australian dollar fell on a sharp slowdown in inflation.
"There will be a few bumps along the way, but the market still has upward momentum. Risk appetite is improving and the optimism is palpable," said Suh Dong-pil, a market analyst at Hana Daetoo Securities.

World stocks hit 2-1/2 mth peak; euro near high
LONDON, July 27 (Reuters) - World stocks hit a 2-1/2 month high while the euro held near a two-month peak versus the dollar as upbeat results from Swiss bank UBS  added to a recent run of strong corporate earnings.
"Expectations are rising for earnings. Companies are guiding full-year forecasts up in spite of concerns about a loss of recovery momentum ... and that is helping to keep these markets reasonably firm," said Mike Lenhoff, chief strategist at Brewin Dolphin.

20100728 0927 Soy Oil & Palm Oil Related News.

Soyoil futures ended lower, succumbing to pressure from adjustments in the meal/oil spread relationship and spillover weakness from crude oil futures. Crude oil influences soyoil due to its use in making renewable fuels. December soyoil settled 0.27 cents or 0.7% lower at 39.29 cents per pound. (Source: CME)

Brazil Soy Sales At 78% Of '09-10 Crop As Of July 23 - Celeres(Source: CME)
Brazilian farmers have sold 78% of the 2009-10 soybean crop as of July 23, local agricultural consultancy Celeres said in a weekly report.
Celeres said in the report issued Monday that Brazil, which is the world's No. 2 soy producer after the U.S., has shown a rise in soybean sales from 76% the week before. Sales are down from 83% at the same time a year ago.
Brazil is expected to have produced a record 68.5 million metric tons of soybeans for the 2009-10 crop season, compared with 57 million tons the previous crop year.
Many producers sold cautiously during the year and recently made new sales during periods of high volatility of the Chicago Board of Trade, Celeres said.
This also coincided with a period in which farmers plan to raise working capital for the upcoming 2010-11 crop season, the report said.
Brazil finished harvesting the 2009-10 soy crop in May.
Farmers in Mato Grosso, Brazil's No. 1 soy-producing state, have sold 94% of their soy as of Friday compared to 93% the week before and steady with 94% a year ago, Celeres said.
Mato Grosso's farmers were the first to start their harvest and took the opportunity to sell earlier than other states.
Parana, the No. 2 soy-producing state, sold 66% of its beans as of Friday compared to 64% the week before and 79% a year earlier, Celeres said.
Rio Grande do Sul, the country's No. 3 soy-producing state, sold 49% of its soy as of July 23 versus 46% the prior week and 57% a year earlier, Celeres said. Rio Grande do Sul is typically one of the last states to harvest and sell its beans.

Palm oil at 1-week low on markets, ringgit
KUALA LUMPUR, July 27 (Reuters) - Malaysian crude palm oil hit a one-week low on Tuesday as investors booked profits on last week's rally, and as soyoil weakened.
"The market is settling into a technical correction after last week's rally and weaker markets generally," said a trader with a foreign commodities brokerage. "The ringgit is also keeping refiners away for the moment."

Analyst cuts Ukraine 2010 rapeseed crop forecast
KIEV, July 27 (Reuters) - UkrAgroConsult agriculture consultancy on Tuesday revised down Ukraine's 2010 rapeseed crop forecast to 1.5 million tonnes from the previous estimate of 1.6 million due to a fall in harvesting area.
Severe frosts followed by a record summer heat have killed about 40 percent of rape crops sown to the 2010 harvest.

Brazil 09/10 soy sales reach 78 pct crop - Celeres
SAO PAULO, July 26 (Reuters) - Brazilian soybean producers have sold 78 percent of the record 68.5-million-tonne 2009/10 crop by July 23, up from 76 percent the week prior, analysts Celeres said on Monday.
Sales of the new crop were still behind the 83 percent sold of the previous crop last year at this time, Celeres said.

Soyoil widens premium to palm as buyers chase cargoes
KUALA LUMPUR, July 27 (Reuters) - Soyoil's premium over Asian palm oil is expected to rise in the second half of 2010 as food and fuel demand run down supplies and fears grow that a prolonged spell of hot weather may hurt the U.S. soy crop.
Strong buying from Asian giants China and India for the festival season starting in August, and aggressive domestic biofuel mandates in the Americas, are swallowing up bumper soy crops in Argentina and Brazil faster than usual.