Wednesday, August 4, 2010

20100804 1834 FCPO EOD Daily Chart Study.

FCPO closed : 2590, changed : +28 points, volume : lower.
Bollinger band reading : correction range bound, upside biased.
MACD Histrogram : resume upward again, buyer increase exposure.
Support : 2570, 2550, 2520 level.
Resistant : 2600, 2620, 2650 level.
Comment :
Doji bar candle FCPO ended recording gain with reduced volume transaction changed hand after market opened higher above resistant that turned into support and seems facing some difficulties breaking above 2600 psychology level. Daily chart wise, the uptrend remained intact after market continue to seek higher ground but still lack of supportive volume with MACD Histrogram seems not responding to the higher high market development but having said that the outlook remain range bound upside biased 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.

20100804 1833 FKLI EOD Daily Chart Study.

FKLI closed : 1365, changed : +2.5 points, volume : lower.
Bollinger band reading : side way range bound, upside biased.
MACD Histrogram : weakenning, buyer taking profit.
Support : 1360, 1350, 1345 level.
Resistant : 1375, 1385, 1395 level.
Comment :
Ultra low volume FKLI ended the day having marginal gain after traded mostly range bound through out the whole trading session after regional market having mixed development. Not much action took place today as trader seems looking for more clue about the market near term direction but overall it is still a buyer dominated market for now. Reading wise, outlook remained unchanged with a side way range bound upside biased 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.

20100804 1250 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1362.5, changed : unchanged, volume : low.
Bollinger band reading : range bound, downside biased.
MACD Histrogram : reversed upward, buyer taking profit.
Support : 1360, 1350, 1345 level.
Resistant : 1375, 1385, 1395 level.
Comment :
Tight 4.5 points range, low participation volume FKLI ended first session unchanged without significant movement. Hourly chart wise, market opened lower and moving side way range bound with the reading suggesting a range bound downside biased market development.

20100804 1239 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2592, changed : +32 points, volume : low.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer in control.
Support : 2570, 2550, 2520 level.
Resistant : 2600, 2620, 2650 level.
Comment :
18 points range market, thin volume traded FCPO closed for lunch higher following a firmer soy oil and crude oil overnight price. Hourly chart shows market opened and and trying to test higher resistant level with the outlook recommending a upside biased market reading.

20100803 0933 Local & Global Economic News.

Malaysia: Exports advance 17.2% in June
Malaysia’s June 2010 external trade continued to see strong growth, albeit at a moderating pace, with exports expanding 17.2% y-o-y to RM52.83bn, while imports soared 30.1% y-o-y RM46.79bil. Overall, total trade grew 22.9% y-o-y to RM99.62bn, the International Trade and Industry Ministry said yesterday. Malaysia continued to enjoy healthy trade surplus, which totaled RM6.04bil in June.(Starbiz)

Australia: Building approvals, retail sales falter in June. The number of permits granted to build or renovate houses and apartments fell 3.3% MoM from May, the third straight drop. Retail sales gained 0.2% MoM. (Source: Bloomberg)

Australia: Keeps key rate at 4.5% as inflation cools
Australia’s central bank kept interest rates unchanged for a third month after slower inflation and diminished financial risks abroad left officials with little need for any shift in policy. Governor Glenn Stevens maintained the overnight cash rate target at 4.5%, the Reserve Bank of Australia said in Sydney. (Bloomberg)

China: To further open gold market to trading, imports
China will let more banks import and export gold and open trading further to foreign companies as near-record prices and falling stock markets spur demand in the world’s second-largest buyer of the metal. Gold prices gained. China may “increase foreign members on the Shanghai Gold Exchange and will also study ways to allow foreign qualified bullion suppliers to deliver to the exchange,” the People’s Bank of China said (Bloomberg)

E.U: Producer-price inflation unexpectedly slowed in June as a stronger euro helped offset higher costs of imported goods such as energy. Factory-gate prices in the 16 nation euro region rose 3% YoY after increasing 3.1% YoY in May, the European Union's statistics office in Luxembourg said. (Source: Bloomberg)

Greece: To pass first 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 are likely to praise Greece’s progress and say more work is needed to lock in the gains, economists said. (Bloomberg)

Spain: Registered unemployment declined for a fourth month in July as the tourist season spurred hiring. The number of people registering for unemployment benefits fell by 73,790, or 1.9% MoM, from June to 3.9 million. From a year earlier, the number of unemployed rose 10% YoY. (Source: Bloomberg)

US: Fed may pass on more stimulus amid signs of weakness
Federal Reserve policy makers signaled they will probably pass on providing more stimulus at their 10 Aug meeting and wait to see if signs of a weaker economic growth persists. Chairman Ben S. Bernanke told lawmakers that consumer spending is “likely to pick up” amid a “moderate” expansion. (Bloomberg)

US: Orders to factories decline more than forecast
Orders placed with US factories declined more than forecast in June, a sign manufacturing will cool in coming months. The 1.2% decrease in bookings was more than double the 0.5% drop projected by the median forecast of economists followed a revised 1.8% decline in May, figures from the Commerce Department showed (Bloomberg)

US: Spending stagnates, home sales drop
Consumer spending, pending home sales and factory orders were all weaker than projected in June, showing the US recovery lost momentum heading into the second half of the year as employment stagnates. Household purchases, which account for about 70% of the economy, were unchanged from May, according to the figures from the Commerce Department. (Bloomberg)

20100803 0930 Malaysia Corporate News.

MOF nod for Hong Leong's EONCap bid
The Ministry of Finance (MOF) has approved a potential takeover of EON Capital (EONCap) by bigger rival Hong Leong Bank in a RM5.06bn deal. EONCap, in a filing to the stock exchange late yesterday, said it received the go-ahead through Bank Negara Malaysia. EONCap's shareholders are to meet on 19 Aug to decide on the deal despite opposition from its biggest shareholder, Primus Pacific Partners. Primus, which thinks Hong Leong's implied offer price of RM7.30 a share for the smaller bank's assets and liabilities is too low, has taken the matter to court, claiming the offer is illegal in structure and unfair to smaller shareholders. The case goes to trial on 20-23 Sept and 27-28 Sept. (BT)

Tanjung CSI wins RM5m Petronas job
Tanjung Offshore’s unit Tanjung CSI SB has been awarded an RM5m contract by Petronas Carigali SB to revamp the distribution control system at the latter’s crude oil terminal and onshore slug catcher in Terengganu. The works are expected to be completed by May 2011. (BT)

Alam Maritim in deal with oil major
Alam Maritim Resources’ unit Alam Maritim (M) SB has mobilised one of its anchor handling tug supply vessels for a long-term charter contract with an established oil major for RM30.32m. The contract is for two years with an extension option of one year. Meanwhile, Alam Maritim Resources has signed a joint venture agreement with Pacific Crest Pte Ltd (PCPL) for a joint venture business and jointly own an accommodation work barge. Both companies will invest in the equity of a duly incorporated ship owning company under Labuan Offshore Companies Act 1990 known as Alam Radiance (L) Inc. ((BT, MalaysianReserve)

OSK Cambodian ops gets approval
OSK Holdings announced that the Securities and Exchange Commission of Cambodia has granted an approvalin- principle to OSK Indochina Securities Ltd (OSKISL), an indirect subsidiary of OSKH, to act as a securities underwriter in Cambodia. OSKISL is a wholly-owned subsidiary of OSK Indochina Bank Ltd, which is in turn, wholly owned by OSK Investment Bank (OSKIB), OSKIB is wholly-owned by OSKH. As a securities underwriter, OSKISL is permitted to advise on public offerings, to carry on underwriting, securities dealing, securities brokerage and investment advisory activities in Cambodia. (Starbiz)

Major shareholders bid for Kretam at RM1.43 a share
Kretam Holdings’ major shareholders are making a takeover bid for the Sabah based plantation company at RM1.43 per share, a 2.1% premium over yesterday’s closing price, after one of its substantial shareholder’s holdings exceeded the 33% mandatory general offer threshold. The takeover offer values Kretam at RM349m. The offerors are buying 49.89%, or 121.98m shares worth about RM175m, that they do no hold. (MalaysianReserve)

Axiata: UK's Cable&Wireless Worldwide secures Axiata contract. London-listed Cable&Wireless Worldwide has won a new deal from Axiata Group Bhd (Axiata) to support its growing Internet protocol  (IP) capacity needs in Asia Pacific. Under a two-year agreement, C&W Worldwide will build and manage a new IP-based network in Singapore for four of Axiata?s operating companies. (Source: The Edge Financial Daily)

Construction: CIDB sees RM82b construction projects this year. The Construction Industry Development Board (CIDB) expects RM82.3b and RM70b worth of construction and infrastructure projects to be implemented in 2010 and 2011 respectively. (Source: The Star)

Iskandar: RM62b committed for Iskandar Malaysia. Iskandar Malaysia has attracted investments totaling RM62.3b up to June, surpassing the 2010 target of RM47b. Of these investments, RM24.9b are from the manufacturing sector, RM18.4b from properties, RM12.8b from utilities, tourism and others, while RM6.3b from the Government. (Source: The Star)

Khazanah: Issues SGD1.5b Islamic debt paper. Government investment arm Khazanah Nasional Bhd has issued the largest and longest-term sukuk, or Islamic bond, in Singapore of SGD1.5b (RM3.5b). The sukuk, with tenures of five and 10 years, was the largest Singapore dollar-based sukuk by a foreign issuer in the island-state and the first Singapore dollar sukuk issuance out of the Malaysia International Islamic Financial Centre (MIFC) initiative. (Source: Business Times)

MPHB to maintain 51% stake in Magnum. Multi-Purpose Holdings BHD (MPHB) intends to maintain its 51% stake in Magnum Corporation Sdn Bhd even if Magnum is relisted. MPHB said it will attempt to ensure that the 1st priority will be given to MPHB shareholders to participate in any potential offer for sale of CVC's portion. (Source: The Star)

Property: City Developments in talks to sell KL land. Singapore's property tycoon Kwek Leng Beng is in talks to sell a parcel of land in Jalan Bukit Bintang, Kuala Lumpur, which could possibly fetch a record price for a land deal in this country's history. It is understood that the selling price for the land, owned by Kwek's City Developments Ltd (CDL), is being negotiated for more than RM3,000 per sq ft. Contenders for the land are believed to be the owner of Pavilion Kuala Lumpur and the YTL group, both of which have sizeable assets along Jalan Bukit Bintang. (Source: Business Times) 

20100803 0923 Global Market & Industry News.

Asia stocks pause, dollar at 8-mth low vs yen
SINGAPORE, Aug 4 (Reuters) - Asian stocks held close to their three-month high but Japanese shares fell as the dollar hit an eight-month low against the yen after weak U.S. data fuelled talk of more Fed policy easing.
"Today's stock fall is really all about the yen. At this kind of level, there's inevitably worries about what sort of impact this will have on company earnings going forward," said Toshiyuki Kanayama, a market analyst at MInc. 

GLOBAL MARKETS: Stocks pull back, dollar falls on growth worries
NEW YORK, Aug 3 (Reuters) - Stocks paused a day after hitting the highest level in 2-1/2 months, while the dollar slid on Tuesday as disappointing earnings and U.S. economic data gave investors reason to fret about the global recovery.
"People are beginning to accept that the U.S. economy is coming back to earth and, as far as growth goes, may be playing second fiddle to other economies," said Andrew Wilkinson, analyst at Interactive Brokers Group in Greenwich, Connecticut. "That's driven bond yields down and is sapping the dollar." 

GLOBAL ECONOMY-Output grows in U.S., Euro zone; China slows
NEW YORK, Aug 2 (Reuters) - Global manufacturing showed little risk of a double-dip recession as output in July grew in the United States and Europe and a rare contraction in China suggested Beijing was successfully reining in its hot economy.
Global stock markets welcomed Monday's news that the U.S. manufacturing sector grew last month for a 12th straight month and at a rate slightly better than expected.

U.S. manufacturing slows in July for 3rd month
NEW YORK, Aug 2 (Reuters) - U.S. manufacturing grew in July at its slowest pace this year as a stream of new orders tapered off, pointing to further slackening in the economic recovery.
Still, the manufacturing index was better than many analysts had expected and boosted U.S. stock prices.

Record leap in German engineering orders boosts economic outlook
BERLIN, Aug 2 (Reuters) - Germany's engineering sector continues to drive the country's recovery as orders in the sector leapt by a record 62 percent in June, data showed on Monday, indicating Europe's largest economy could accelerate in the second half.
The growth in orders, topping a 61 percent increase in May from a year earlier, was boosted by a base effect but was also driven by strong demand from emerging markets for high-end German plant and engineering equipment.

Industrial commodities face headwinds in H2 2010
LONDON, Aug 3 (Reuters) - Industrial commodities will struggle to make further gains in the second half of this year as developed countries cut infrastructure spending, UK-based Standard Life Investments said on Tuesday.
Frances Hudson, global thematic strategist at Standard Life told Reuters that easing demand from China, the world's largest consumer of industrial commodities such as copper, used in power and construction, would also check demand growth.

Stocks tick higher as dollar falls
LONDON, Aug 3 (Reuters) - Global stocks ticked higher on Tuesday as U.S. stock futures indicated a steady start on Wall Street, with oil prices firmer due to a weak dollar, while copper prices fell back after recent strong gains.
"Considering the massive price increase of recent days it's not surprising to see some profit taking," said Eugen Weinberg, analyst at Commerzbank.

20100803 0921 Soy Oil & Palm Oil Related News.

Soyoil futures ended higher, climbing to their highest point since April on spillover strength from crude oil futures and adjustments in the meal/oil spread relationship. December soyoil settled 0.51 cents or 1.2% higher at 41.68 cents per pound. (Source:CME)

Brazil Trade Group Hikes 2009-10 Soy Exports To 29.8 Million Tons.(Souce:CME)
The Brazilian Vegetable Oils Industry Association, or Abiove, on Tuesday raised its forecast for soy exports to 29.8 million metric tons from the 2009-10 crop season.
This compares to its prior estimate on July 14 of 29.5 million tons and 28 million tons a year ago.
Abiove said the year's soy crush was seen at 33.6 million tons, up slightly from the previous estimate of 33.1 million tons and higher than the 30.7 million tons last year.
The harvested 2009-10 soy crop is seen at a record 68.4 million tons compared to 57.3 million tons a year ago.
Abiove trimmed its data for Brazil's final stocks of soybeans to 2.9 million tons from 3.7 million tons in July. This is up from 2.1 million tons last year, Abiove said.
Abiove said Brazil should produce 25.6 million tons of soymeal in 2009-10, up from its last estimate in July of 25.2 million tons and above 23.5 million tons a year ago.
The group pegged Brazilian soyoil production at 6.5 million tons in 2009-10 versus 6.4 million tons in the prior estimate.

Palm oil slips off three-month highs after weather rally
KUALA LUMPUR, Aug 3 (Reuters) - Malaysia crude palm oil futures eased from three-and-a-half month highs hit the previous day as investors took profit after weather-driven rally.
"The market is purely profit taking because of last week. The sentiment and fundamentals don't change as we have good exports and strong competitor prices to soyoil," said a trader in Kuala Lumpur.

Argentine soy crushing rises 13.6 pct in June
BUENOS AIRES, Aug 2 (Reuters) - Argentine soy crushing activity rose 13.6 percent year-on-year in June to 3.4 million tonnes, boosted by record production of the oilseed, the government said in its latest report on Monday.
Argentina is the world's top supplier of soyoil and soymeal and the third-biggest exporter of unprocessed beans. Grain production was hit by a severe drought last season, but ideal weather conditions lifted 2009/10 soy output to a record.
In June, crushers produced 647,188 tonnes of soyoil  -- up 13.8 percent from the same month last year.