Monday, August 9, 2010

20100809 1918 FCPO EOD Daily Chart Study.

FCPO closed : 2731, changed : +70 points, volume : higher.
Bollinger band reading : upside biased with potential correction.
MACD Histrogram : rising, buyer turned crazy.
Support : 2720, 2700, 2670 level.
Resistant : 2750, 2800, 2830 level.
Comment :
Never look back FCPO record another gain with ultra super high volume today as buyer dominated market gathered encouragement from a higher soy oil and crude oil futures price plus a continuous weaker U.S. Dollar. The over extended surged daily chart shows price closed way way above upper Bollinger band and the outlook still calling for an upside biased market.
When to buy : buy at support or weakness with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100809 1900 FKLI EOD Daily Chart Study.

FKLI closed : 1365.5, changed : +2.5 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : buyer defending.
Support : 1360, 1350, 1345 level.
Resistant : 1375, 1385, 1395 level.
Comment :
FKLI rose marginally with little improved volume after opened lower but buyer came in to support the market lifted price to recover upward. Daily chart wise, market still trading range bound testing support and resistant level with the reading suggesting a 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.

20100809 1325 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1360.5, changed : -2.5 points, volume : low.
Bollinger band reading : downside biased.
MACD Histrogram : recovering, buyer and seller testing market.
Support : 1360, 1350, 1345 level.
Resistant : 1375, 1385, 1395 level.
Comment :
FKLI eased lower in thin trading volume having a hard time deciding which direction to move towards to with regional markets having mixed development. Hourly chart wise, market opened lower and tested below support level but buyer came in to support the market back to above support level but nevertheless the outlook is showing a downside biased reading market development.

20100809 1251 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2713, changed : +52 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : turned downward, buyer taking profit.
Support : 2700, 2670, 2650 level.
Resistant : 2720, 2750, 2770  level.
Comment :
FCPO extending gain on early Monday with supportive volume traded as buyer turned aggressive again due to a stronger soy oil and crude oil futures price after negative non farm payroll data lead to a weaker U.S. Dollar.
Hourly chart show market opened and testing higher resistant level hovering around upper Bollinger band with the outlook having upside biased reading with possible pullback correction.

20100809 1153 Global Economic News.

Singapore: Economy expanded 17.9% in first half, growth may ease
Singapore’s economy expanded less than previously estimated in the first half of 2010 and growth may “moderate” in the coming months, Prime Minister Lee Hsien Loong said. Its GDP rose 17.9% in the 6 months through June from a year earlier. The economy may grow 13% to 15% in 2010, Lee said, reiterating an earlier forecast. (Bloomberg)

US: Retail sales probably increased in July
US retail sales probably rose in July for the first time in 3 months as incentives spurred auto purchases, indicating merchants are relying on discounts to spark demand, economists said before reports this week. (Bloomberg) US:

Companies hired 71,000 workers in July
US companies hired fewer workers than forecast in July, evidence of what Federal Reserve Chairman Ben Bernanke has called an “uncertain” economic environment that may keep him focused on reviving growth. Private payrolls that exclude government agencies rose by 71,000 after a June gain of 31,000 that was smaller than previously reported. Overall employment fell by 131,000 and the jobless rate held at 9.5%. (Bloomberg)

US: Consumer credit fell USD1.3bn in June
Consumer credit in the US declined in June for a fifth straight month, a sign an uneven labor market is discouraging borrowing. The USD1.3bn decrease in credit followed a revised USD5.3bn drop in May. This indicates consumer purchases, which account for about 70% of the economy, will be restrained as Americans rebuild savings. (Bloomberg)

US: Buyers regain majority of treasuries as savings rate rises
For the first time since the start of the financial crisis in August 2007, US investors own more treasuries than foreign holders. Mutual funds, households, and banks have boosted the domestic share of the USD8.2tn in tradable USD debt to 50.2% as of May. (Bloomberg)

20100809 1151 Malaysia Corporate News.

Costs at Bakun set to balloon
Costs at the RM7.3bn Bakun Dam project are set to balloon with every step in the delay in impoundment and power supply to Sarawak, said Sarawak Hidro SB managing director Zulkiflie Osman. Starting next year, an additional interest payment of RM10m per month will be incurred as the dam is already five months behind schedule for flooding. It takes seven months from the impoundment date for the dam to reach its minimum operating level to generate power. Sarawak Hidro, the owner and developer of the Bakun Dam project, has submitted its commitments and undertakings to Sarawak’s Ministry of Public Utilities as per the Sarawak cabinet decision in June. By the year-end, the project cost including interest and compensation is estimated at RM7bn to RM7.3bn. “In view of the rising costs, impoundment must take place before the end of the year,” said Izzuddin. (StarBiz)

Govt says no to PTP-Johor Port consolidation plan
The Government has decided not to approve a proposal by MMC Corp to consolidate and rationalise the operations of Port of Tanjung Pelepas (PTP) and Johor Port. International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the decision was made after considering views and concerns from companies and industries operating here. He said his ministry has held dialogues with companies and industries operating in Pasir Gudang to discuss the matter after the proposal made headlines. “The companies have voiced their concerns that they will have to incur higher haulage costs if they were to use PTP instead of Johor Port,’’ said Mustapa. (StarBiz)

Gamuda unveils USD171m Bahrain bridges venture
Gamuda has opened the first phase of its Sitra Causeway Bridges in Sitra, Bahrain. Costing USD171m (RM547m), the Sitra Causeway Bridges project comprised the construction of bridges and causeway works together with grade separated interchanges at both ends of the causeway and Nabih Salleh Island, it said. The project also consisted of massive underground infrastructure and relocation of utility works for the setting up of high and low voltage cables, sewage, gas and irrigation works. The remaining eastern marine bridges that are in the direction towards Sitra from Umm Al Hassam are scheduled for completion and handover in December 2010. (StarBiz)

SC aims to conclude review on Mudajaya soon
After days of speculation surrounding an alleged probe in Mudajaya Group by the Securities Commission (SC), the regulator said it was still reviewing the affairs of the construction and engineering firm but added that it aimed to conclude the review as soon as possible. The SC also said it had engaged all relevant parties, including the management of Mudajaya. It is understood that SC’s review of Mudajaya is still at the “surveillance” stage and has not escalated into a full investigation. A source familiar with the situation added that the SC had met with Mudajaya managing director Ng Ying Loong on Tuesday and that the regulator had not contacted him since.(StarBiz)

Wah Seong unit buys into Petro-Pipe
Wah Seong Corp said last Friday its indirect wholly-owned subsidiary, Asiana emas SB, has signed a share sale agreement with Detik Gaya SB to acquire 20% of Petro-Pipe (Sabah) SB for RM10.5m cash. (StarBiz)

Kurnia plans to place out shares
Kurnia Asia said it plans to undertake a private placement of up to 10% of its share capital to repay some RM40m in borrowings and raise some RM35m for its working capital requirements. In a filing with Bursa Malaysia last Friday, the general insurer did not identify the price for the placement shares or the investors the shares will be placed with. (MalaysianReserve)

Focus Point secures new listing date
Malaysia’s largest chain of professional eye-care centres, Focus Point Group, has secured a new date from the regulators to proceed with its listing on the ACE Market of Bursa Malaysia. The new listing date is tentatively schedules on 23 Aug. Focus Point has given its cooperation to the regulators to address the allegations made against the company two weeks ago that affected its earlier listing plan, it said in a statement last Friday.(MalaysianReserve)

20100809 1110 Global Market News.

Dollar slides vs Asia, stocks up ahead of Fed
HONG KONG, Aug 9 (Reuters) - The U.S. dollar fell against emerging Asian currencies on Monday on growing expectations the Federal Reserve will have to buy more bonds to support the flagging economy, helping to also lift commodity prices and equities.
"After the poor jobs data, the focus is now on whether the Fed will further ease its monetary policy. The yen has already risen to around 85 yen (per dollar) on expectations that the Fed might do so," said Mitsuo Shimizu, deputy general manager at Cosmo Securities in Tokyo. 

Stocks rise, dollar flat as US jobs data looms
LONDON, Aug 6 (Reuters) - Pending U.S. jobs data kept investors on edge but not enough to stall the mid-year rally in global equities boosted by robust earnings.
"The U.S. data is very important. If the market reacts positively and closes near a new high this week, then we have a very good chance to go higher," said Giuseppe-Guido Amato, strategist at Lang & Schwarz in Frankfurt.

GLOBAL MARKETS: US jobs report saps stocks, dollar; wheat falls
NEW YORK, Aug 6 (Reuters) - World stock markets and the dollar slumped on Friday as investors fled to safe-haven bonds and gold after U.S. employment data signaled the economic recovery was losing traction.
"Initial market reactions signal concerns about the impact of the poor employment picture on spending, corporate revenues and sustainable profitability," said Mohamed El-Erian, co-chief investment officer at Pacific Investment Management Co in Newport Beach, California.

20100809 1108 Soy Oil & Palm Oil Related News.

Funds bought an estimated 1,000 soymeal contracts and 3,000 soyoil contracts. Traders next week will review updated supply and demand estimates in USDA crop reports, due Thursday. CBOT December soyoil rose 0.12 cent to 42.12 cents per pound, and December soymeal edged up 50 cents to $295.90 per short ton. (Source:CME)

India Increases Palm Oil Buys As Price Gap To Soyoil Widens(Source:CME)
India, the world's second-largest vegetable oils consumer after China, may purchase more palm oil in the next two months than soyoil, as palm oil's discount has widened, a Mumbai-based trading executive said Friday.
In recent months, India has imported more soyoil after a bumper soybean crop dragged prices lower even as palm production growth remained sluggish. But weather concerns over U.S. and South America soybean crops propelled soyoil prices higher, making it a more expensive commodity compared with the cheaper palm oil.
India is seeking between 550,000 and 600,000 metric tons of palm products, including crude palm oil and refined products, this month as the price gap with rival soyoil from Argentina has widened to $100/ton on a delivered basis from $40-$50/ton in the last two months, Govindlal G. Patel, director at Mumbai-based vegetable oils importer Dipak Enterprise, said by phone.
Importers in India have stepped up purchases as demand is expected to increase during the festive period that begins later this month with Ramadan, the Muslim month of fasting, and ends with the celebration of the Hindu festival Diwali in November.

Palm oil near 5-month high on weather worry, wheat gains
JAKARTA, Aug 6 (Reuters) - Malaysia crude palm oil futures closed up 1.6 percent after trading near a five-month high as gains in wheat sparked renewed concern erratic weather could also affect crops like soybean and palm oil, curbing global supplies.
"Agriculture commodities have been shooting up a lot because of weather concern," said a trader in a foreign commodities brokerage firm.

SMART eyes palm oil expansion in Kalimantan
JAKARTA, Aug 5 (Reuters) - Indonesian palm oil giant PT SMART Tbk , accused by green groups of clearing valuable forest, aims to expand its plantations by 50,000 hectares a year, the company's president director said on Thursday.
SMART last month rejected fresh claims by Greenpeace that the firm was clearing peatland and high conservation value forests, which shelter endangered species and trap vast amounts of climate-warming greenhouse gases.

OIL: Oil hovers below $81; weak dollar supports after poor data
PERTH, Aug 9 (Reuters) - Oil prices hovered just below $81 a barrel on Monday, as a weaker dollar supported prices that had fallen for three straight days last week, in part on poor U.S. economic data.
"The market is pretty directionless at the moment and oil looks pretty well-priced considering the poor jobs data in the U.S., which is underscoring the fragility of their economic recovery," said Ben Westmore, a commodities analyst at the National Australia Bank.