Monday, August 2, 2010

20100802 1847 FCPO EOD Daily Chart Study.

FCPO closed : 2570, changed : +53 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : resume upward, buyer expand operation.
Support : 2570, 2550, 2520 level.
Resistant : 2600, 2620, 2650 level.
Comment :
FCPO recorded gain again after crude oil and soy oil futures price continue to trade higher after last friday rally with better volume transacted. Daily chart shows that market opened higher after export data release shows improvement and continue testing higher resistant level and closed right at it that turned into support level. Reading suggesting a upside bias potential market testing resistant near upper Bollinger band for the near term.
When to buy : buy at support/weakness/breakout with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100802 1828 FKLI EOD Daily Chart Study.

FKLI closed : 1367, changed : +13 points, volume : higher.
Bollinger band reading : side way range bound, upside biased.
MACD Histrogram : reversed upward, buyer defending.
Support : 1360, 1350, 1345 level.
Resistant : 1375, 1385, 1395 level.
Comment :
FKLI recorded gained for the first day of the month with improve volume traded but still consider low participation in unison with major regional market that ended mostly higher. Daily chart wise, market opened and surge higher to closed near the high of the year within a tight 5.5 points range market. Outlook still suggesting a side way range bound upside biased market reading.
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.

20100802 1322 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1365, changed : +11 points, volume : low.
Bollinger band reading : upside biased.
MACD Histrogram : turned downward, buyer taking profit.
Support : 1360, 1350, 1345 level.
Resistant : 1375, 1385, 1395 level.
Comment :
Hit year high FKLI traded in tight 5.5 point range and lesser volume participation in tandem with major positive development Asia markets. Hourly chart shows market opened higher and continue to reach higher ground following Bollinger band expansion pace with positive pullback effect take place soon but nevertheless the reading still suggesting a upside biased market development.

20100802 1309 FCPO Hourly Chart Study.

FCPO closed : 2555, changed : +38 points, volume : moderate.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer dominated market.
Support : 2550, 2520, 2500 level.
Resistant : 2570, 2600, 2620 level.
Comment :
Over the weekend strong rally on soy oil and crude oil futures price due to a continue weaker US Dollar plus improved higher export data leaded FCPO to opened and traded higher in moderate volume transaction within a 17 points tight range market. Hourly chart wise, price hovering around the upper Bollinger band level with possible triggering a pullback correction. Overall the outlook still having a upside biased market reading for the near term.

ITS export up 4.41%
SGS export up 4.7 %

20100802 1246 Local & Global Economics News.

China: Manufacturing grows at slowest pace in 17 months
China’s manufacturing grew at the slowest pace in 17 months in July as the government clamped down on property speculation and investment in energy-intensive and polluting factories. The Purchasing Managers’ Index fell to 51.2 from 52.1 in June. (Bloomberg)

South Korea: Consumer prices and exports rose
South Korea’s consumer prices rose 2.6% in July from a year earlier. Exports increased for a ninth month in July as weakness in won and the global economic recovery boosted demand for the nation’s cars, electronic goods and semiconductors. Overseas shipments increased 29.6% from a year earlier. (Bloomberg)

Australia: RBA may extend rate pause, averting damage to Gillard
Australia’s central bank may keep its benchmark interest rate unchanged for a third month after inflation slowed, averting an increase in mortgage costs that risked damaging Prime Minister Julia Gillard’s election campaign.. (Bloomberg)

EU: Banks on Europe’s edge face USD122bn bill
Banks in Europe’s most indebted nations need to refinance USD122bn of bonds this year, likely paying high interest costs even after receiving a clean bill of health from regulators. Italian banks must refinance a total of USD69bn of bonds this year and USD157bn in 2011, while Spanish lenders have USD28bn and USD73bn of debt that needs to be paid. (Bloomberg)

EU: Inflation hits 20-month high, jobless at 10%
European inflation accelerated to the fastest pace in more than 20 months on rising energy costs and unemployment held at the highest in almost 12 years. Euro-area consumer prices rose 1.7% from a year earlier in July after increasing 1.4% in June. Jobless rate remained at 10% for a fourth month in June. (Bloomberg)

US: Lack of consumer spending points to economic slowdown
The world’s largest economy will probably keep cooling in the third quarter as a lack of jobs prompts American consumers to rein in spending. The economy in the US grew at a slower-than-forecast 2.4% annual rate from April through June after expanding at a 3.7% pace in the previous 3 months. Household purchases climbed at a 1.6% rate following a 1.9% gain that was smaller than previously estimated. (Bloomberg)

US: Financial system may need USD76bn in capital, says IMF
The US financial system remains fragile and banks subjected to additional economic stress might need as much as USD76bn in capital, according to results of IMF stress tests. The findings suggested that while the nation’s banking system is stable, it remains vulnerable. Home prices, commercial real estate loans and economic growth have the potential to cause shocks that could expose banks to more losses. (Bloomberg)

20100802 1244 Malaysia Corporate News.

RM21.80 a share offer for Tanjong buyout
After days of speculation of an impending buyout offer for Tanjong plc, the intention to take the power and gaming outfit private was confirmed on Friday evening at a press conference. A special purpose vehicle (SPV) established by Usaha Tegas Sdn Bhd and its concert parties, Tanjong Capital SB, have served a notice of conditional takeover offer to acquire all the ordinary shares of Tanjong at a cash offer price of RM21.80 apiece, hence valuing the company at RM8.8bn and minorities’ shares at RM4.7bn. The offer price is also at a premium to analysts’ average target price for Tanjong of RM19.08, according to Bloomberg data. (Malaysian Reserve)

Prudential said to be eyeing P&O UK-based insurer
Prudential plc is looking at acquiring the insurance businesses of Pacific & Orient Bhd (P&O), sources say. It is learnt that Prudential has written to Bank Negara Malaysia to seek the central bank’s approval to begin talks with P&O on the potential sale of the group’s insurance business. The price of the transaction is not known. An industry observer says Prudential’s interest in P&O is not surprising, after an unsuccessful buyout attempt in American International Assurance (AIA), the Asian unit of American International Group (AIG). AIG’s assets include its Malaysian insurance business. (The Edge Weekly)

Are E&O shareholders looking at privatisation?
Eastern & Oriental (E&O) major shareholders are believed to be considering a privatization of the property developer, sources say. The news sent the stock to a fresh high in heavy trade last week. E&O managing director Datuk Terry tham Ka hon is the single largest sharehodler in E&O with a combined direct stake and indirect stake of some 16% of the company. The company is also active in share buy-backs, which signifies that it is under-valued. (The Edge Weekly)

Scomi Engineering’s Brazil monorail tender re-issued
Scomi Engineering Bhd seems to have gotten another shot in its bid for the 23.9km RM3bn Tiradentes monorail project in Sao Paulo, Brazil. Sources said the Brazilian authorities had requested for a re-issue of the tender, with modifications such as a ‘less tight’ delivery dateline and better payment structure. It is understood the reissue of the tender started early last week, with all four participating companies – a consortium of Scomi Engineering Bhd and CR Almeida SA Engenharia de Obras, Hitachi Ltd of Japan, Bombardier Inc of Canada and Switzerland’s Intamin AG – still expressing interest. (Financial Daily)

Hirotako’s stake in PA Resources piques interest
The emergence of Hirotako Holdings Bhd as a major shareholder in PA Resources Bhd was not something that the market had expected. It is a deal, which on the face of it, would be hard to rationalise. But it did happen. Hirotako, an automotive components manufacturer became a major shareholder with 15.3% equity interest in aluminium products maker PA Resources, after which the share price of Hirotako soared to its highest in about nine years. Hirotako acquired the shares on the open market and also by subscribing for a rights issue undertaken by PA Resources. The entry of Hirotako as a major stakeholder in PA Resources raises crucial questions. Among them is what kind of synergistic benefits both entities can derive from the relationship. Another is whether Hirotako will further raise its stake in PA Resources. (The Edge Weekly)

MPHB plan for investors to own Magnum shares
Multi-Purpose Holdings Bhd (MPHB) may offer its shareholders the opportunity to participate directly in its gaming outfit, Magnum Corp Sdn Bhd, by way of restricted offer for sale (ROS), its chief said. Managing director Datuk Lau Kim Khoon @ Surin Upatkoon said the plan will allow MPHB's 5,000-odd shareholders to own Magnum shares. MPHB is looking to relist Magnum on the Main Market of Bursa Malaysia. Lau said the timing will depend on the exit strategy by CVC Capital Partners, a global private equity firm which holds 47% of Magnum. He said CVC had indicated that it wanted to make an exit, but no time-frame was given. MPHB holds a 51% stake in Magnum, which operates 485 gaming outlets nationwide. (StarBiz)

MAS, AirAsia X get rights to fly to Haneda
Two Malaysian carriers have each been granted rights to fly to Haneda in Japan three times a week by the local government. Although the Malaysian Government secured traffic rights for seven flights a week to the alternative airport in Tokyo, it allowed Malaysia Airlines (MAS) and low-cost long-haul carrier AirAsia X three flights each and retained one. AirAsia X's flights to Haneda Airport are "still pending application", its chief executive officer Azran Osman-Rani said as to when it would begin operation. MAS will introduce three flights a week between Kota Kinabalu and Haneda from 15 Nov, its managing director and chief executive officer Tengku Datuk Azmil Zahruddin said. "Haneda is basically like our Subang airport, while Narita Airport is a bigger airport. Haneda is a lot nearer to Tokyo and was previously open to domestic flights only. But due to the congestion at Narita, the Japanese government is opening it up to international flights," he added. (StarBiz)

20100802 1010 Global Market News.

GLOBAL MARKETS: Asia stocks rise on S.Korea exports, China
HONG KONG, August 2 (Reuters) - Asian stocks rose on Monday and the Australian dollar firmed after Chinese manufacturing gauge for July was not as weak as feared and South Korea's exports grew faster than expected. "July's PMI did not fall through 50; however, we saw weakness almost across the board, echoing our view that the economy will keep moderating but not collapse," said Dong Tao, head of non-Japan Asia economics at Credit Suisse.  

LONDON, July 30 (Reuters) - The dollar fell to an eight-month low against the yen while global shares slipped on worries U.S. growth data due later in the day may show the world's biggest economy is losing steam.
"U.S. economic data is underperforming and keeping pressure on the dollar," said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ.

20100802 1002 Soy Oil & Palm Oil Related News.

ITS Cargo Surveyor : Export up 4.41% for the period of : 1~31 July 2010

Soyoil futures rose in unison with the rest of the soy complex, rallying to 3-month highs. The market was buoyed by speculative and technical buying spreading through grain and oilseed futures, analysts said. December soyoil settled 0.55 cents or 1.4% higher at 40.55 cents per pound.(Source: CME)
Palm oil climbs on weather worry, eyes exports data
JAKARTA, July 30 (Reuters) - Malaysian crude palm oil was steady, supported by gains in soybean and uncertainty over grains crop harvests due to adverse weather which would slow global vegetable oil supplies.
"The market is still supported by external factors such as firm soybean markets and weather concern," said a trader at in a foreign commodities brokerage firm.