Friday, July 30, 2010

20100730 1848 Global News.

China has overtaken Japan to become the world's second-largest economy, the fruit of three decades of rapid growth that has lifted hundreds of millions of people out of poverty. pricorn23: Depending on how fast its exchange rate rises, China is on course to overtake the United States and vault into the No.1 spot sometime around 2025, according to projections by the World Bank, Goldman Sachs and others

Though the rate increased from 20.05 percent in the first three months of the year, the National Statistics Institute (external link) said the number of people working actually increased. Still, the overall unemployment rate rose to its highest level since 1997 because of a large increase in the work force. Spain crawled out of recession in the first quarter of this year after nearly two years of economic contraction and has been a focus of concern in recent months, as investors fretted that its bloated deficit and troubled banking sector could necessitate a Greek-style bailout.

20100730 1846 FCPO Weekly Chart Study.

Weekly Close: 2517, High: 2539, Low: 2434, Range: 105 points
FCPO closed : 2517, changed : +19 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : recovering, buyer strength increased.
Support : 2500, 2450, 2400 level.
Resistant : 2540, 2600, 2650 level.
Comment :
Week on week marginal gain FCPO traded in lesser volume as market opened and tested higher and also tested lower below middle Bollinger band support level but still manage to recover and closed at higher ground formed a long lower shadows doji bar candle. Weekly chart wise, overall outlook remained unchanged with a side way range bound market development.

20100730 1845 FCPO EOD Daily Chart Study.

FCPO closed : 2517, changed : +3 points, volume : higher.
Bollinger band reading : range bound, upside biased.
MACD Histrogram : weakening, buyer profit taking.
Support : 2500, 2470, 2450 level.
Resistant : 2520, 2550, 2570 level.
Comment :
Continue improving volume FCPO closed for weekend marginally higher after market opened gap up at the high of the day but immediately head south due to profit taking activities tested below support level and following by last hour bargain hunting push price upward to register minor gain. Daily chart wise, market outlook adjusted into suggesting a range bound upside biased market as Bollinger band width seems started to turned inwards.
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.

20100730 1821 FKLI Weekly Chart Study.

Weekly Close: 1356.5, High: 1363.5, Low: 1350.5, Range: 13 points.
FKLI closed : 1356.5, changed : +2.5 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : rising higher, buyer still in charge.
Support : 1350, 1335, 1310 level.
Resistant : 1360, 1375, 1385 level.
Comment :
Recorded marginally week on week higher FKLI traded in tight range marker with improved encouraging volume transaction. Weekly chart wise, market traded range bound testing support and resistant level with the reading still suggesting a upside biased market development outlook.

20100730 1806 FKLI EOD Daily Chart Study.

FKLI closed : 1356.5, changed : -5.5 points, volume : lower.
Bollinger band reading : side way range bound, upside biased.
MACD Histrogram : turned downward, buyer clearing position.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385 level.
Comment :
FKLI July contract ended lower on last trading day as buyer clearing off positions without much trading activities and tight range market. Today daily chart small body and range candle doji opened lower and traded range bound with the outlook having side way range bound upside biased reading. Another interesting aspect will be a possible negative divergence in the forming between price and MACD Histrogram plus volume.
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.

20100730 1445 FKLI Mid Day Hourly Chart Study.

FKLI last looked(Aug 2010) : 1359, changed : -5.5 points, volume : low.
Bollinger band reading : side way range bound.
MACD Histrogram : falling lower, no much participation from both buyer and seller.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385 level.
Comment :
Thin trading FKLI traded lower ahead of weekend and month end following overnight lower DJIA closed and negative development over major regional market. Hourly chart wise market opened gap down lower and continue to test lower support level and now hovering around middle Bollinger band level with the outlook having side way range bound marker reading.

20100730 1443 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2524, changed : +10 points, volume : low.
Bollinger band reading : correction, upside biased.
MACD Histrogram : weakening, buyer taking profit.
Support : 2520, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
Quiet weekend mood volume transaction FCPO continue to register small gain for the first session after market opened gap higher at the high of the day and immediately faced profit taking selling pressure pressed price to closed near the low. Hourly chart reading suggesting a range bound correction upside biased market development for the near term.

20100730 1417 Local & Global Economic News.

Malaysia: Malacca halal hub aims for RM155m investment, says CM
The Melaka Halal Hub in Serkam, Jasin, aims to woo RM155m investment by year-end, says Chief Minister
Datuk Seri Mohd Ali Rustam. Currently, the 53.6 hectare hub has received RM125m investments, he said. 48 of the 58 factories at the hub were already owned by the investors. (BT)

Singapore: Economic expansion may spur inflation
Singapore, which had a record first-half expansion, said economic activity will probably remain at “high levels” for the rest of the year, adding pressure on business costs and spurring inflation. Growth is supported by a broad range of industries that will remain “largely intact” in 2010, the Monetary Authority of Singapore said. The central bank said it will issue as much as SGD20bn (USD15bn) in bills starting next year as a new instrument in money-market operations to help lenders manage liquidity. (Bloomberg)

China: People’s Bank of China sees ‘less need’ to lift rates, IMF says
China sees little need for an imminent increase in interest rates, standing apart from Asian counterparts that are
raising borrowing costs as the region shrug offs risks from advanced economies. People’s Bank of China officials said “that with a benign inflation outlook there was less need for higher nominal interest rates at this
point,” the International Monetary Fund said in a statement after annual consultations with the Chinese government. “Also, they were concerned that higher interest rates could risk fueling capital inflows.” (Bloomberg)

Russia: Debt risk drops most in four months as growth picks up
The cost of protecting Russian government bonds from non-payment fell the most in four months in July, helped by rising oil prices, accelerating economic growth and a declining budget deficit. Russia’s five-year credit-default swaps dropped 32 basis points, or 0.32% point, the biggest monthly decline since March, to 164 as of July. The move was more than the 18 basis-point retreat for Brazil contracts, 14 for Mexico and 12 for China, according to data compiled by Bloomberg. (Bloomberg)

EU: Europe economic confidence rises as exports improve
European confidence in the economic outlook rose to the highest in more than two years in July and German
unemployment declined for a 13th month as exports sustained a recovery in the region. An index of executive
and consumer sentiment in the 16 euro nations increased to 101.3 from 99 in June, the European Commission
said. That’s the highest since March 2008. (Bloomberg)

US: Jobless claims in US declined by 11,000 to 457,000
The number of Americans filing first-time claims for unemployment insurance fell to 457,000, a figure that signals the labor market will be slow to improve even as the economy grows. Initial jobless claims dropped by 11,000 in the week ended July from a revised 468,000, Labor Department figures showed. Applications were in line with the median forecast in a Bloomberg News survey. (Bloomberg)

US: Deficit panel eyes reining in tax breaks
A US presidential commission charged with cutting the budget deficit discussed the politically charged issue of
scrapping or changing tax breaks that cost about USD1trn a year. Senate Budget Committee chairman Kent
Conrad suggested ending some of the tax breaks as part of a broader effort to streamline the US tax code to
make the economy more competitive globally and generate revenue without raising tax rates. (Financial Daily)

20100730 1415 Malaysia Corporate News.

Dr Ling Liong Sik charged over PKFZ scandal
The Government kept its momentum on the Port Klang Free Zone fiasco going when it charged former transport minister Tun Dr Ling Liong Sik with misleading the Government in relation to the acquisition of a piece of land in Pulau Indah to the tune of RM1.1bn yesterday. (Financial Daily)

Ananda may buy out Tanjong for RM4.4bn
Billionaire Tan Sri T. Ananda Krishnan is set to buy out Tanjong, the second of his listed firms in three days in a deal worth RM4.4bn, two sources with direct knowledge of the deal said. Ananda's Usaha Tegas investment vehicle will launch a bid for Tanjong today at RM20.50 per share for 53% of the 403m shares not held, said the two sources, who declined to identified as they are not authorized to speak to the media. (BT)

Last-minute deferment on listing unavoidable, says Focus Point
Focus Point clarified Thursday that the last-minute deferment notice on its listing exercise made on Tuesday
morning was unavoidable as matters had evolved only at the 11th hour. In a statement, the company said it has been cooperating with the regulatory authorities "to address the malicious allegations against the company and believes that everything will be sorted out in just a matter of time". (Bernama)

Selangor sticks with decision to not allow Syabas to raise water tariffs
The Selangor government reiterated that it would stick to the decision to disagree with a rise in water tariffs as
proposed by Syabas. A statement from the Menteri Besar's office Thursday on the water issue stated that no
matter what the conditions were, there was no agreeing to a rise in water tariffs for customers. The state
government also indicated, it was prepared to defend its stand while saying it would however, not stop anyone, including Syabas from seeking justice in court. (Bernama)

JCorp chief Muhammad Ali quits
Johor Corp's president and CEO Tan Sri Muhammad Ali Hashim surprised the Johor corporate community
yesterday when he walked out of the company's board meeting after announcing his immediate resignation from the post. The 62-year-old Johor corporate personality was earlier scheduled to retire in November. Reasons for his abrupt resignation remain sketchy but there have been talk that quarters in Johor wanted him out due to dissatisfaction of his management and debts incurred by the corporation. (BT)

Alliance eyes 16% ROE
Alliance is aiming for a 16% ROE within at least a year from 11% now, its new chief Sng Seow Wah said. Its
main focus will continue to be on consumer banking, which is its key earnings driver, and SME banking. (BT)

Scomi Engineering eyeing more jobs
Scomi Engineering, a 69.3% subsidiary of Scomi Group, confirmed that it has submitted proposals to upgrade
trains from the existing two-car to four, and is waiting for a decision on the extension of the current KL Monorail line. Previously, it was reported that Scomi Engineering is poised to be awarded a RM600m contract in a bid by the government to fast-track the upgrade of public transportation system in the city. (Financial Daily)

20100730 1407 Global Market News,

Asia stocks slip on U.S. worries
HONG KONG, July 30 (Reuters) - Asian stocks sagged  as worries U.S. growth data may surprise on the downside and downbeat comments from a Federal Reserve official gave investors reason book profits from a steady rally this month.
"For all the risk on/off talk, I would suggest that risk is never off, rather it becomes more selective," said Geoff Howie, Sales and Markets Strategist, MF Global Markets in Singapore. 

NEW YORK, July 29 (Reuters) - Global stocks fell on Thursday as tech companies' weak outlooks fueled recovery concerns, although the euro rose to a 12-week high against the dollar on better-than-expected European economic data.
"There is still a lack of confidence in the sustainability of economic growth and the sustainability of the earnings stream being extended into 2011," said Heino Ruland, strategist at Ruland Research in Frankfurt.  

Earnings boost stocks, dollar slips to 3-mth low
LONDON, July 29 (Reuters) - Robust quarterly earnings from Europe drove world stocks higher, while the dollar hit a three-month low on the back of weak U.S. data and a downbeat assessment of the economy from the Federal Reserve.
"Second-quarter results are better than expected and it supports the market, but the rise is capped by the rather poor macro data," said Emmanuel Morano, head of equity management at fund management firm UFG-LFP in Paris.

20100730 1404 Soy Oil & Palm Oil Related News.

Soyoil futures climbed in unison with advances in the rest of the soy complex, with spillover strength from crude oil futures and fresh export sales to China lending support. December soyoil settled 0.43 cents or 1.1% higher at 40.00 cents per pound. (Source:CME)

Global weather concerns lift palm oil
KUALA LUMPUR, July 29 (Reuters) - Malaysian crude palm oil rose 1.1 percent  concerns that dry weather in Europe will curb global vegetable oil supplies in the medium-term.
"There was no follow through in the technical correction earlier this week for palm oil. Traders are watching the weather developments in Europe and the U.S.," said a trader with a foreign broker in Malaysia. "Crude oil is giving support."

Indonesian Sinar Mas-linked firms wrecked forest-report
JAKARTA, July 29 (Reuters) - Greenpeace said on Thursday it had fresh evidence that palm oil firms linked to Indonesian agribusiness giant Sinar Mas have bulldozed rainforest and destroyed endangered orangutan habitats in Kalimantan.
The charges were denied by palm oil firm PT SMART Tbk , part of Sinar Mas, which has already said it would stop clearing critical forests.