Tuesday, August 3, 2010

20100803 1827 FCPO EOD Daily Chart Study.

FCPO closed : 2562, changed : -8 points, volume : higher.
Bollinger band reading : correction range bound, upside biased.
MACD Histrogram : reversed lower again, buyer taking profit.
Support : 2550, 2520, 2500 level.
Resistant : 2570, 2600, 2620 level.
Comment :
Profit taking activities resulted FCPO to eased lower with increasing volume traded after market tested lower support level and managed to recovered up off the low of the day. Daily chart candle formed a potential bearish hanging man long lower shadow doji bar candle waiting for tomorrow market development for confirmation but having said that technical reading still suggesting a correction range bound upside biased marker development in the near term.
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.

20100803 1742 FKLI EOD Daily Chart Study.

FKLI closed : 1362.5, changed : -4.5 points, volume : higher.
Bollinger band reading : side way range bound, upside biased.
MACD Histrogram : turned downward again, buyer taking profit to reduce exposure.
Support : 1360, 1350, 1345 level.
Resistant : 1375, 1385, 1395 level.
Comment :
Hit new year high FKLI ended the day lower surenderring most of yesterday gain with improved volume traded(still relatively low). Daily chart shows that market opened above upper Bollinger band and formed a down bar candle to closed near the low possibly triggered a correction market. Outlook wise, market still suggesting a correction 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.

20100803 1416 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1370.5, changed : +3.5 points, volume : low.
Bollinger band reading : range bound, upside biased.
MACD Histrogram : resume upward, buyer lock in partial profit but still defending.
Support : 1360, 1350, 1345 level.
Resistant : 1375, 1385, 1395 level.
Comment :
Overnight strong Dow Jones closed leaded FKLI to opened gap up higher followed by profit taking activities resulted FKLI to record minor gain for first session with lower transaction changed hand. Hourly chart shows that price opened right at upper Bollinger band and triggered a pullback correction taking place for the time being with the outlook having a correction range bound upside biased market reading.

20100803 1415 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2563, changed : -7 points, volume : low.
Bollinger band reading : upside biased.
MACD Histrogram : weakening, buyer taking profit.
Support : 2550, 2520, 2500 level.
Resistant : 2570, 2600, 2620 level.
Comment :
Stronger Ringgit damper FCPO upward momentum and ended marginally lower for lunch in thin trading volume despite a stronger overnight soy oil and crude oil futures price. Hourly chart shows market opened and tested slightly higher but selling pressure come into market pressed price lower near support level before recover up off the low. Hourly reading remained suggesting a upside biased market development.

20100803 1235 Local & Global Economics News.

Malaysia: Ringgit at 2-year high, biggest gainer after won
The ringgit rose to a new two-year high yesterday against the US dollar and was the second biggest daily gainer behind the won, as persistent worries about the economic health in the West drove investors to Asian markets in search of higher returns. Analysts said the ringgit’s rise was underpinned by relatively sound economic fundamentals at home and around the region, as well as a bullish technical view on the currency. (Starbiz)

Indonesia: May keep benchmark rate at 6.5%
Indonesia may keep its main interest rate at a record low for a 12th straight month, putting off joining its neighbors in raising borrowing costs even as growth and inflation accelerate in Southeast Asia’s biggest economy. Bank Indonesia will leave its reference rate unchanged at 6.5%. (Bloomberg)

China: Manufacturing faces ‘slowdown, not a meltdown’
China’s July manufacturing data were the weakest in more than a year as the government clamped down on property speculation and investment in polluting and energy- intensive factories. A purchasing managers’ index released slid to 49.4 from 50.4 in June. (Bloomberg)

EU: Greece to pass first deficit test as budget challenges mount
Greece’s austerity drive may pass its first test this week as a European Union-led mission prepares to dole out more rescue funds for a government trying to cut the euro-region’s second-biggest budget gap and weather a recession. In approving the second tranche of a three-year, EUR110bn (USD145bn) bailout, the EU and International Monetary Fund say that more work is needed to lock in the gains. (Bloomberg)

EU: Manufacturing accelerates more than estimated
Growth in Europe’s manufacturing industry accelerated more than previously estimated in July, indicating an export-led recovery maintained its momentum. A gauge of manufacturing in the 16-nation euro region increased to 56.7 from 55.6 in the previous month. (Bloomberg)

US: Consumer spending to accelerate
Federal Reserve Chairman Ben S. Bernanke said rising wages will probably spur household spending in the next few quarters, even as weak job gains drag down consumer confidence. "While the US has “a considerable way to go” for a full recovery, rising demand from households and businesses should help sustain growth,” Bernanke said. (Bloomberg)

US: Manufacturing slowed as orders cooled
The manufacturing rebound that propelled the US out of the recession cooled in July, reflecting a slowing in orders and production. The Institute for Supply Management’s manufacturing gauge dropped to 55.5 last month, from 56.2 in June, felling to a one-year low. (Bloomberg)

20100803 1233 Malaysia Corporate News.

US stocks advance as corporate earnings surpass estimates
US stocks rallied, sending the Standard & Poor’s 500 to the highest close in 10 weeks, after better-thanestimated earnings at companies from Humana Inc. to Allergan Inc. and manufacturing data that topped forecasts. Oil climbed above USD81 for the first time since May, giving a boost to energy companies. The S&P 500 gained 2.2% to 1,125.86 as of 4 pm in New York. The Dow climbed 208.44 points, or 2%, to 10,674.38 as all 30 of its components advanced. (Bloomberg)

Johns Hopkins tipped to enter Malaysia
The world-renowned teaching and research institution Johns Hopkins may make its way to Malaysia in a big way. Sources said that Johns Hopkins might be involved in the healthcare field in partnership with a local listed company. Information of its exact field of involvement remains sketchy, but sources said that a piece of land in Selangor had been identified for the development of a medical city. Business Times understands that the investment in this initiative could be to the tune of RM1.8bn. The Government on its part may provide a tenth of the funds required for this project. (BT)

P&O awaits Bank Negara approval
Pacific & Orient Insurance is seeking Bank Negara approval to begin discussions with Prudential Holdings Ltd for a stake sale to the latter. (StarBiz)

AMMB investors to get choice in dividend payout
BANKING group AMMB Holdings plans to give its shareholders a choice of receiving dividends in cash or new shares, in a move to improve its capital position. Under the dividend reinvestment plan, those keen to be paid in shares must notify the group in writing. This means that shareholders who don't do so will continue to get paid in cash. (BT)

Favelle secures RM106m orders
Favelle Favco through its subsidiaries has secured several orders with a combined value of about RM106.4m for the supply of tower cranes and offshore cranes. The orders were for deliveries from end 2010 till end-2011. (StarBiz)

Samsung Heavy to set up shipyard in Teluk Ramunia
Samsung Heavy Industries, a core subsidiary of South Korea’s Samsung Group, is to invest in the oil and gas (O&G) hub in south-east of Johor. Johor Mentri Besar Datuk Abdul Ghani Othman said the company had last year visited Teluk Ramunia and identified an area there for its shipyard. Samsung Heavy is the second-largest shipbuilder in the world with its main activities in shipbuilding, offshore floaters, digital devices for ships, and construction and engineering concerns. (StarBiz)

SIG IPO oversubscribed by 24.1 times
SIG Gases, a manufacturer, refiller and distributor of industrial gases in Malaysia, has received overwhelming response for its upcoming listing on the main market of Bursa Malaysia with its public tranche oversubscribed by 24.1 times. SIG is the only pure-play listed industrial gases provider in Malaysia. (Financial Daily)

Dijaya, IWSB in Danga Bay venture
Property developers Dijaya Corp and Iskandar Water Front SB (IWSB) will jointly develop (60:40 joint venture) two parcels of prime waterfront land at Danga Bay, Johor Baru, into a mixed development project that carries a gross value of RM3.8bn over the next 12 years. They sealed the deal to purchase the land for the project from Danga Bay Sdn Bhd for RM308m, or RM190 per sq ft. Johor Menteri Besar Datuk Abdul Ghani Othman witnessed the signing of the sale and purchase agreements for the two parcels of land totalling 14.8ha in Johor Baru. It is one of the biggest private land deals since the inception of Iskandar Malaysia in 2006, where it is located. (Financial Daily)

YTL, Intel team up on 4G network
YTL Communications SB (YTL Comms) has partnered Intel Malaysia to deliver superior fourth-generation (4G) network by the year-end. YTL Comms chief executive officer Wing Lee said the high-speed Internet network, which will be commercially launched in the fourth quarter, will enable the company to introduce its range of 4G devices to the market. "Offering WiMAX (Worldwide Interoperability for Microwave Access)-ready devices is an integral part of our strategy," he said in a statement that was released yesterday in Kuala Lumpur. (Financial Daily)

20100803 1155 Global Market News.

Asia stocks up on bank earnings, U.S. dataHONG KONG, Aug 3 (Reuters) - Asian stocks rose to their highest levels in nearly three months and turned positive for the year, boosted by strong European bank results and a sign the U.S. economy was stronger than expected.
"A combination of solid earnings from HSBC and BNP Paribas and strong U.S. manufacturing data has significantly eased economic worries and boosted appetite for stocks," said Lee Sun-yeb, a market analyst at Shinhan Investment Corporation. 

GLOBAL ECONOMY-China slows to cruising speed, Europe perks up
BEIJING, Aug 2 (Reuters) - China's manufacturing sector cooled further in July, even shrinking by one measure, but markets took the news as a sign of a desired slowdown rather than a harbinger of a slump that could derail global recovery.
Manufacturing surveys from other big emerging economies India and Russia, also served to bolster investor sentiment, with Asia's third-largest economy marking its 16th month of expansion and Russia's activity improving for the seventh month in a row.

Imports slow US Q2 growth, business spending surges
WASHINGTON, July 30 (Reuters) - U.S. economic growth slowed in the second quarter as companies invested heavily in equipment from abroad and the pace of consumer spending eased, raising concerns about the recovery in the rest of 2010.
The fastest rate of business spending in four years would normally be associated with increased confidence in the economy, but analysts said cash-flush companies were merely making up for ground lost during the recession.

Asian stocks up as markets shrug off China data
HONG KONG, Aug 2 (Reuters) - Asian stocks rose on strong corporate earnings and shrugged off news that Chinese manufacturing shrank in July amid investor hopes that the world's fastest growing major economy will expand strongly.
"There is no need to panic because this is just a slowdown, not a meltdown," Qu Hongbin, chief economist for China at HSBC, said in a statement.

GLOBAL MARKETS: Stocks at multi-month highs; euro surges
NEW YORK, Aug 2 (Reuters) - Global stocks surged to a 2-1/2 month high and the euro hit a three-month high on Monday as growth in the U.S. manufacturing sector topped expectations and European bank earnings boosted optimism.
"What we've seen over the last few weeks has been decent earnings, but economic data has been on the weak side. But    today we had good earnings out of Europe, and we actually had strong economic data, and that is piling on to a decent start to the month," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati, Ohio.

20100803 1154 Soy Oil & Palm Oil Related Price.

Soyoil futures ended higher, climbing to a 3 1/2 month high before profit taking emerged to trim advances. Soyoil was the upside leader of the products, buoyed by spillover support from soybeans and crude oil futures. Crude oil influences soyoil due to its use in making renewable fuels. December soyoil settled 0.55 cents or 1.5% higher at 40.55 cents per pound. (Source: CME)

Malaysia's July Palm Oil Exports To Pakistan Doubles On Month (Source: CME)
Pakistan's palm oil purchases from Malaysia in July doubled on month to meet demand for Ramadan, the Islamic holy month of fasting, trading executives said Monday. Pakistan's ongoing palm oil purchases also supported CPO prices, which rose 2.1% to a fresh three-month high of MYR2,570 a metric ton from Friday's close.
"CPO prices may rise to MYR2,600-MYR2,610/ton in the next few trading sessions as the rise in exports may reduce palm oil inventory levels, which is positive for prices," said a senior executive at Kuala Lumpur-based brokerage. Cargo surveyor SGS (Malaysia) Bhd. Monday said Malaysia's palm shipments to Pakistan are estimated at 231,316 tons, versus 116,670 tons the previous month.
The sharp rise in Pakistan's palm oil purchases is close to estimates by a Pakistan-based importer two weeks ago.

Palm oil hits 3-mth high on exports, soybean
JAKARTA, Aug 2 (Reuters) - Malaysian crude palm oil jumped by midday to hit a 3-month high on gains in soybean markets and good export figures, but a firmer ringgit may limit gains.
"We have the bad weather and good exports. At the same time, soybean markets are also higher, tracking gains in the wheat market," said a trader with a foreign commodities brokerage firm, adding the market was likely to test 2,600 ringgit this week.