Tuesday, August 10, 2010

20100810 1852 FCPO EOD Daily Chart Study.

FCPO closed : 2670, changed : -60 points, volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : turned downward, buyer take profit.
Support : 2670, 2650, 2620 level.
Resistant : 2700, 2720, 2750 level.
Comment :
Over upward extended FCPO faced selling pressure today as buyer decide to take profit in a larger scale pressed price to closed near the low of the day recorded a loss after both ITS and SGS export cargo surveyor released a substantial dropped in export for the period of 1~10 August 2010 down 17.4% and 14.2% respectively. Daily chart shows market opened gap down and corrected lower below upper Bollinger band with the reading calling a correction range bound upside biased market development potentially testing lower support levels.
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.

20100810 1850 FKLI EOD Daily Chart Study.

FKLI closed : 1356, changed : -9.5 points, volume : lower.
Bollinger band reading : range bound upside biased.
MACD Histrogram : buyer reducing exposure.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385 level.
Comment :
Finally there is some substantial movement took place in FKLI that slide lower but trading volume still relatively low after regional market closed negatively as trader choose to stay sidelines awaiting tonight U.S. Federal Reserve news. Daily chart wise , market opened unchanged and dived straight down to close near the low formed a wide range down bar candle rested right a middle Bollinger band level. Outlook wise, reading changed into side way range bound correction 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.

20100810 1315 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1359.5, changed : -6 points, volume : low.
Bollinger band reading : downside biased.
MACD Histrogram : getting lower, buyer book in partial profit.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385 level.
Comment :
FKLI decline lower in thin tranding volume as buyer decide to realized profit in tandem with Asia regional market negative development. Hourly chart wise, market opened unchanged and managed to test and stayed below support level for lunch with the reading suggesting a near term downside biased market development.

20100810 1314 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2690, changed : -40 points, volume : high.
Bollinger band reading : correction range bound, upside biased.
MACD Histrogram : getting lower, buyer disposing position.
Support :  2670, 2650, 2620 level.
Resistant : 2700, 2720, 2750 level.
Comment :
Finally, a correction day took place on the super bull FCPO market that eased lower in high volume transaction after soy oil futures price corrected plus a negative ITS export data that record 14.7% decline.
Hourly chart shows market opened gap down lower and continue testing lower support level with a correction range bound upside biased market reading.

20100810 1241 Local & Global Economic News.

Malaysia: Economy to grow 5% in 2H10
The country’s gross domestic product growth for this year is expected to reach 7.2% through estimated growth rates of 9.4% for the first half of the year and 5.1% for the second half, said RAM Holdings Bhd’s chief economist Dr Yeah Kim Leng. RAM attributed the lower second-half figures to easing external demand, reduced low base effect and restocking activities. However, the ratings agency said there was no sign of a double dip thus far. (Financial Daily)

Australia: Home loan approvals fell in June , after gaining in May for the first time in eight months, adding to signs the most aggressive round of interest-rate gains by a Group of 20 members is cooling demand for dwellings. The number of loans granted to build or buy houses and apartments dropped 3.9% MoM to 46,420 from May, when they rose a revised 3% MoM. (Source: Bloomberg)

Thailand: Baht has risen ‘a bit too fast’
The baht has appreciated a little too fast in the past week and exporters should brace themselves for more volatility, a senior central bank official said, while the financial minister said exporters had to adjust. Bank of Thailand assistant governor Suchada Kirakul told reporters the central bank would intervene in the currency market if necessary. The baht firmed 0.3% to THB31.95 (RM3.14) per dollar, its highest since May 2008. (Financial Daily)

Taiwan: Exports rose for a ninth month in July as demand for the island's microchips and computers weathered global risks threatening Asian shipments. Exports advanced 38.5% YoY. (Source: Bloomberg)

China: Economist bullish on China’s GDP growth
China’s economy will enjoy a strong, stable second half, putting it on course for full-year growth of about 10%- 11%, a leading government economist said in comment published. The forecast by Zhang Yutai, head of the Development Research Centre, a think-tank under China’s cabinet, is more bullish than those of many independent as well as some government economists, who have been revising down their predictions to the 9%- 10% range. (Star Biz)

China: July property prices rise 10.3% from year earlier
China’s property prices rose in July at a slower pace after the government clamped down on speculation to prevent asset bubbles and keep housing affordable. Prices in 70 major cities climbed 10.3% from a year earlier, the statistic bureau’s newspaper, China Information News, reported. That was less than the 11.4% increase in June and compared with the median estimate of 10.5% in a Bloomberg News survey of eight economists. (Bloomberg)

Japan: Current account surplus unexpectedly shrank for a second month in June as export growth cooled. The gap narrowed 18% YoY to JPY1.047tr (USD12.3b). The figures also reflect a 46% YoY slide in the so called income surplus as Japanese earned less money on overseas investments. (Source: Bloomberg)

EU: German exports rose as global recovery gained pace
German exports rose more than economists forecast in June as the global recovery helped bolster an export-led expansion in Europe’s largest economy. Sales abroad, adjusted for working days and seasonal changes, rose 3.8% from May, when they increased a revised 7.9%, the Federal Statistics Office in Wiesbaden said. Economists forecast a gain of 1.5%, the median of 11 estimates in a Bloomberg News survey shows. Imports rose 1.9% from May, when they jumped 13.7%. (Bloomberg)

EU: Euro returns 5% for bulls who acted on ECB’s defiance
The euro’s rally from a four-year low in June resulted in losses for followers of bears from Paul Volcker to Dennis Gartman. Since Volcker, the 82-year-old former Federal Reserve Chairman, said 13 May the euro may face “disintegration,” it’s up 5.99% against the dollar. (Bloomberg)

EU: Europe investor confidence jumps to two-year high, Sentix says
European investor confidence surged to the highest in more than 2 1/2 years in August as demand from emerging economies brightened the outlook, the Sentix research institute said. An index measuring sentiment in the 16-nation euro region increased to 8.5 from minus 1.3 in July, Limburg, Germany-based Sentix said. That’s the highest since December 2007. A gauge of current business conditions climbed to 16.5 from 2 in the previous month, while a sub- indicator of expectations increased to 0.75 from minus 4.5. (Bloomberg)

Mexico: Plans to sell bonds in yen by end of year
Mexico plans to sell about JPY150bn (USD1.75bn) of bonds backed by the Japan Bank for International Cooperation this year, said Gerardo Rodriguez, head of the finance ministry’s public debt unit. Mexico aims to begin selling debt in yen without guarantees sometime next year, Rodriguez said in an interview from Mexico City. He declined to discuss pricing and more specific dates. Mexico last sold yen bonds in December. (Bloomberg)

20100810 1236 Malaysia Corporate News.

Malaysia shortlists 3 sites for coal-fired plant
These are the Tanjung Bin Power Plant owned by MMC Corp subsidiary Malakoff Corp, Jimah Power Plant located in Port Dickson, Negri Sembilan; and the coal-fired power plant in Manjung, Perak, managed by Tenaga Janamanjung SB. There are no clear indications yet as to which of the three will be entrusted to develop the additional capacity. However, it is understood that the three power plants were shortlisted because of their existing facilities. It is also understood that an announcement will be made soon on the plant selected to start the project. (BT)

MAS picks Kota Kinabalu as its eastern hub
Malaysia Airlines yesterday announced that it has chosen Kota Kinabalu to be its eastern hub, as the airline sets its sights on China, Taiwan, North Asia, Indonesia and Australia markets. Its managing director cum chief executive officer Tengku Datuk Azmil Zahruddin said the hub will be developed over three stages from 15 Nov to 3 June next year, where new destinations and frequencies will be added to complement the currently served foreign cities from Kota Kinabalu. (Financial Daily)

KKB plans RM20m steel fabrication plant
KKB Engineering, which will double its annual capacity to 60,000 tonnes on full completion of its proposed RM20m new steel fabrication plant in Muara Tebas here in 2012, is set to expand its business beyond the shores of Sarawak and Sabah. Group executive director Kho Pok Tong said the company was exploring steelrelated projects in Peninsular Malaysia. (StarBiz)

EPIC denies any impending change in major shareholding
Petroleum supply base operator, Eastern Pacific Industrial Corp (Epic), has denied there will be a change in major shareholding of the company soon. Its chief executive officer, Ramli Shahul Hameed, said since last Thursday, the company’s share price on Bursa Malaysia has increased from RM1.80 to RM2.30 apiece. (Bernama)

Baswell declared PN17 firm
Baswell Resources has been declared a PN17 company after a proposed memorandum of understanding for a Middle East job was cancelled, it failed to meet credit payments and it ceased all of its furniture making businesses yesterday. The company in a filing to Bursa Malaysia said it is in the midst of formalising a regularisation plan to address its PN17 status. The company’s furniture making subsidiaries had defaulted on loans amounting to RM2.7m. (StarBiz)

Perodua set to surpass sales target
Perusahaan Otomobil Kedua SB (Perodua) is confident sales this year will reach 185,000, surpassing its forecast of 176,000. Managing director Aminar Rashid Salleh said the company was confident of surpassing the targeted figure because of the sales and bookings it had achieved so far. From January to July 2010, the service intakes from the whole country were 972,300, up 6.1% from 916,000 last year.(StarBiz)

Airlines: AirAsia X sets record sales to Seoul. AirAsia X Sdn Bhd yesterday said it had set a new sales record with its newly launched destination to Seoul recently, generating over RM20m for the booking period from Aug 4-8. It attributed the success of the campaign to the power of its blog and social network platform with over 410,000 Facebook and more than 30,000 Twitter followers. (Source: The Edge Financial Daily)

CCM: New Companies Bill to be more business-friendly, stress on governance. The new Companies Bill, which will replace the existing Companies Act 1965, aims to ease and cheapen the cost of doing business in Malaysia, but will give strong emphasis on corporate governance. The Companies Commission of Malaysia (CCM) has targeted to further reduce the number of days for setting up a business from three days to one. Hence, going e-centric will be a huge feature for the formation of companies. (Source: The Star)

Energy: Malaysia shortlists 3 for coal-fired plant. 3 companies have been shortlisted for a coal-fired plant that will be built to add 1,600 MW to the Peninsular Power Grid by the first quarter of 2015. They are the Tanjung Bin Power Plant owned by MMC Corp Bhd subsidiary Malakoff Corp Bhd; Jimah Power Plant located in Port Dickson, Negri Sembilan; and the coal-fired power plant in Manjung, Perak, managed by Tenaga Janamanjung Sdn Bhd. (Source: Business Times)

KFHM: Moves into car financing. Kuwait Finance House (Malaysia) Bhd (KFHM) yesterday entered the car-financing market in a big way by joining the sole importer and distributor of Peugeot cars in Malaysia, Nasim Sdn Bhd. The tie-up with Nasim, a member of the Naza Group of Companies, marks KFHM's significant move into the retail financing sector. (Source: Business Times)

Markets: RM777.5m payout for ASW 2020 investors. Amanah Saham Nasional Bhd (ASNB), a wholly-owned subsidiary of Permodalan Nasional Bhd (PNB), will pay a total of RM777.5m to Amanah Saham Wawasan 2020 (ASW 2020) unitholders for the year ending August 31 2010, about 32.3% higher than last year. (Source: Business Times)

MAS: Picks Kota Kinabalu as its eastern hub. Malaysia Airlines yesterday announced that it has chosen Kota Kinabalu to be its eastern hub, as the airline sets its sights on China, Taiwan, North Asia, Indonesia and Australia markets. By June 2011, Kota Kinabalu will have daily flights to Taipei and Hong Kong, 4 weekly flights to Kaohsiung (Taiwan) and Seoul, and 3 weekly services to Haneda and twice weekly to Osaka, says managing director cum chief executive officer Tengku Datuk Azmil Zahruddin. (Source: Business Times)

Rehda: Residential property prices on the rise. It is still a good time to buy property as the market is heading upwards, prices of residential properties will rise 10-20% over the next 6 months because of cost and inflationary pressures, says Real Estate and Housing Developers' Association Malaysia (Rehda) president Datuk Michael K.C. Yam. (Source: Business Times)

20100810 1205 Global Market News.

Dollar up, stocks slip on caution before Fed
HONG KONG, Aug 10 (Reuters) - The U.S. dollar clawed higher against the euro and Asian stocks slipped on Tuesday, as investors braced for the outcome of a Federal Reserve meeting that could disappoint some looking for big policy changes.
"Over the past one week or so, there has been increasing chatter that the tone of today's Fed meeting could potentially deviate from the seemingly unexciting post-meeting announcements lately," said Thomas Lam, group chief economist with DMG & Partners Securities in Singapore. 

GLOBAL MARKETS: Stocks, dollar advance before Fed meeting
NEW YORK, Aug 9 (Reuters) - Global stocks rose and the dollar edged higher on Monday on growing expectations the U.S.Federal Reserve will signal this week it is ready to renew its stimulus efforts to prop up a weakening U.S. economy.
"We're expecting the Fed to officially lay the groundwork for a policy change predicated on another month of economic data," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.

World stocks near 3-month peak as Fed looms
LONDON, Aug 9 (Reuters) - World stocks edged up towards last week's three-month peak while the dollar held near a 15-year low versus the yen on rising expectations the Federal Reserve could soon buy bonds to support the economy.
"A downgrading of its economic and inflation assessment may be considered a potential precursor to renewed action in coming months should things not start to improve," said Tom Levinson, currency strategist at ING.

20100810 1202 Soy Oil & Palm Oil Related News.

Soyoil futures ended higher, emerging as the strongest leg in the soy complex Monday. There was strength in world vegoil markets, with Malaysian palm oil futures rallying to 15-month highs and concerns about reduced sunflower oil production as a result of European droughts buoying prices, said Bill Nelson, analyst with Doane Advisory Service. Firm energy prices and a healthy near term export program aided the advances as well. December soyoil settled 0.37 cents or 0.9% higher at 42.49 cents per pound. Soymeal futures stumbled, under pressure from adjustments in the meal/oil spread relationship. August soymeal settled $2.50 or 0.8% lower at $311.10, and December soymeal ended $1.50 or 0.5% lower at $294.40 per short ton. (Source:CME)

China demand, weather woes drive palm to 15-mth top
KUALA LUMPUR, Aug 9 (Reuters) - Malaysia crude palm oil futures soared to hit over one-year highs on strong demand from China and concerns that dry weather in the United States may stunt oilseed rival soybean crops.
"The market gained because of external factors. The uptrend sentiment is still intact because players worry about the U.S. weather," said a trader with a foreign commodities brokerage firm.

OIL: Crude extends gain after 1 pct rise, eyes data
TOKYO, Aug 10 (Reuters) - U.S. crude futures extended gains above $81 a barrel on Tuesday after rising 1 percent a day earlier ahead of industry data later in the day expected to show a decline in U.S. crude inventories.
Oil prices have faded from last week's high of nearly $83 a barrel, dropping 1.6 percent on Friday in the wake of a disappointing U.S. nonfarm payrolls report.