20100812 1429 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1342, changed : -5.5 points, volume : high.
Bollinger band reading : coorection downside biased.
MACD Histrogram : buyer closing position.
Support : 1337, 1330, 1325 level.
Resistant : 1345, 1350, 1360 level.
Comment :
Overnight Dow Jones drop plus a negative sentiment regional market development resulted FKLI to opened and testing lower level of support before recover slightly but still recording a lower close for lunch time. Hourly chart shows that market opened and traded below lower Bollinger band and are now having a pullback correction with the reading suggesting a downside biased market development.

20100812 1259 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2690, changed : +13 points, volume : high.
Bollinger band reading : side way range bound market.
MACD Histrogram : recovering, buyer program buying again.
Support : 2670, 2650, 2620 level.
Resistant : 2700, 2720, 2750 level.
Comment :
FCPO continue to test higher ground resistant level with supportive volume closed for lunch little higher.
Hourly chart wise, market opened slightly lower and move upward break above and closed right at the middle Bollinger band level. Technical reading suggesting a side way range bound market testing support and resistant level development. In the mean time soy oil futures price is having downward retracement.

20100812 1205 Global Economic News.

China: ‘Peak’ inflation may leave room for stimulating economy
Chinese policy makers may have extra room to loosen lending curbs and boost investment in coming months after slower growth in retail sales and industrial output signaled ebbing inflation pressures. July’s 3.3% gain in consumer prices, announced by the statistics bureau in Beijing, may be the peak for the year, according to Nomura Holdings Inc. and Mizuho Securities Asia Ltd. Industrial production expanded at the weakest pace in 11 months in July, highlighting the moderation in growth triggered by government curbs including a JPY7.5trn (USD1.1trn) lending limit for 2010. (Bloomberg)

Japan: Leader turns salesman in bid to secure foreign contracts
Naoto Kan’s political roots may lie in socialist activism, but that is not stopping Japan’s new prime minister from enthusiastically embracing a new role as salesman for some of his nation’s biggest businesses. As part of a drive to shore up growth in what is still the world’s second-largest economy, Kan and his ruling Democratic party have pledged dramatically to increase the role of government in promoting Japanese companies’ interests overseas, a mission the premier has described as a re-creation of “Japan Inc”. (Financial Daily)

Korea: Bank of Korea to weigh prices, exports in rate debate
Bank of Korea policy makers may tomorrow debate raising interest rates for the second time this year as price pressures jostle with concerns that slower US and Chinese economic growth threatens exports. Seven of the 15 economists surveyed by Bloomberg news predict Governor Kim Choong Soo will raise the seven-day repurchase rate by another quarter point to 2.5% this week, while the rest forecast a delay until at least September. Investors have pared bets that the board will move. (Bloomberg)
 UK: July consumer confidence drops to 15-month low
UK consumer confidence dropped in July for a third month, plunging to the lowest since the aftermath of the economy’s worst quarterly contraction in three decades last year, Nationwide Building Society said. The index of sentiment slumped 7 points from the previous month to 56, the customer-owned lender said in an e-mailed statement. The result was the lowest since April 2009. A measure of expectations for the economy fell 13 points to 76. (Bloomberg)

US: Economists cut US growth forecasts, hiring limited
A lack of jobs will shackle consumer spending and restrain the US recovery more than previously estimated, according to economists polled by Bloomberg news. Gross domestic product will expand at an average 2.55% annual rate in the last six months of 2010, according to the median of 67 estimates in a survey taken 31 July to 9 August, down from the 2.8% pace projected last month. Household purchases will climb at a 2.25% rate, compared with a 2.6% gain previously forecast. (Bloomberg)

US: Fed offers fresh aid to shaky US recovery
The US Federal reserve on Tuesday took a small but significant step to counter a weakening US economy recovery, saying it would use cash from maturing mortgage bonds it holds to buy more government debt. The decision to reinvest proceeds from the nearly USD1.3trn (RM4.12trn) in mortgage-linked debt, acquired during the 2008 financial crisis in an effort to keep borrowing costs down, represents a policy shift for the central bank. (Financial Daily)

20100812 1202 Malaysia Corporate News.

Naza brothers may be looking at Jetson exit
The Naza brothers are studying the options of an exit strategy as the brothers were not happy with recent developments. SM Nasarudin SM Nasimuddin, the elder of the siblings, told BT that he did not wish to make a comment at this point in time. Mohd Najib, an independent director of Kumpulan Jetson, had resigned and then retracted his resignation. It was reported also that the previous controlling stakeholder in Jetson wanted to regain control of the company as it was on the verge of getting a major project abroad. Yesterday, Jetson announced the appointment of Lee Chee Hoe as executive director. He is the chief executive officer of Jetson's construction arm, Jetson Construction SB. Last year, the Naza brothers, SM Nasarudin and SM Faliq SM Nasimuddin, bought 33.2% of Jetson for RM12.3m. (BT)

WCT aims to add 2 hotels to portfolio by 2014
WCT, a leading construction and property development company, plans to own and manage two hotels within the next four years. It will open its maiden hotel in Klang, Selangor, under the Première brand name on 10 Oct. The hotel is part of the RM145m BBT-One Tower and the Boulevard project developed by WCT. BBT Hotel SB director Eddie Tan said Première, the newest addition to the WCT portfolio, will be one of the main contributors to its hospitality division. BBT Hotel, known as Smart Seasons SB until September 2006, is a subsidiary of WCT. (BT)

Swee Joo in deeper financial trouble over low cash reserves, vessels charter
After embarking on its fleet expansion strategy for the FY ended 30 Sept 2009, Swee Joo is now in deeper financial trouble than expected as it is unable to lease out its newly-acquired ships due to soft market conditions, according to sources. The loss-making shipping services company took delivery of 10 new vessels in FY09, according to its latest annual report, which it said was to “give (its) fleet a wide variety of ships and flexibility to cater to the diverse needs and expectations of customers through the right mix of vessels for the right routes”. (Financial Daily)

Multi Vest proposes capital reduction
Multi Vest Resources (MVest, which is changing its name to Pinehill Pacific) has proposed to pare down its accumulated losses via the reduction of its entire share premium account and the cancellation of half of the par value of its share of RM1 per share to 50 sen each. As at 30 June 2009, its paid-up capital stood at RM149.8m comprising 149.8m shares, while its share premium account stood at RM200.61m. Its accumulated losses stood at RM321.6m and RM302.4m at the company and group levels respectively, as of the FY ended 30 June 2009. (Financial Daily)

Yee Lee wins Red Bull distributorship
Yee Lee Corporation has won the non-exclusive right to distribute Red Bull energy drinks within Malaysia and its respective borders. The company told Bursa Malaysia yesterday that its wholly owned subsidiary Yee Lee Trading Co SB, has inked a distribution agreement with Red Bull Asia FZE for the distributorship deal. The deal gives Yee Lee the non-exclusive right to distribute and market Red Bull Energy Drink and Red Bull Sugarfree. (Financial Daily) 

20100812 1127 Global Market News.

OIL: Crude weaker as demand concerns weigh
TOKYO, Aug 12 (Reuters) - U.S. crude futures were weaker on Thursday after falling steeply the day before amid demand worries as data showed a rise in U.S. gasoline stocks and easing weather fears in the Gulf of Mexico.
Global oil demand growth will inch higher over the rest of this year and into 2011, but any rise could be eroded if the economy is weaker than forecast, the International Energy Agency (IEA) said on Wednesday. 

COMMODITY MARKETS: Broad slump on economy fears; grains await USDA
NEW YORK, Aug 11 (Reuters) - Most commodity markets, including oil and industrial metals, fell in volatile trade on Wednesday as investors sold off risky assets when China's factory output slowed a day after the Federal Reserve downgraded its outlook for U.S. economic growth.
"There's just a lot of uncertainty about the report tomorrow," said Brian Basting, commodity research analyst at Advance Trading in Bloomington, Illinois. "We've seen some profit-taking ahead of this report and now people are just evening up positions to see what the USDA says tomorrow."

GLOBAL MARKETS: Stocks plunge, dollar rallies on growth fears
NEW YORK, Aug 11 (Reuters) - Fear roiled global markets on Wednesday, with stocks sinking and the dollar making its biggest one-day gain in nearly two years against most currencies.
"I don't think that we are in for a major correction for the equity market," said Klaus Wiener, head of research at Generali Investments in London. 

Fed's econ view weighs on stocks, dlr/yen
LONDON, Aug 11 (Reuters) - The dollar fell towards a 15-year low against the yen while world stocks hit a 1-1/2 week trough after the Federal Reserve's assessment of the U.S. economy turned more pessimistic.
"It was probably a reflection of divided perceptions on the outlook. The Fed has done little more in terms of action, other than the gentlest of nudges on the tiller," said Jeremy Batstone-Carr, strategist at Charles Stanley.

Fed offers fresh aid to shaky U.S. recovery
WASHINGTON, Aug 10 (Reuters) - The Federal Reserve on Tuesday took a small but significant step to counter a weakening U.S. economic recovery, saying it would use cash from maturing mortgage bonds it holds to buy more government debt.
The decision to reinvest proceeds from the nearly $1.3 trillion in mortgage-linked debt, acquired during the 2008 financial crisis in an effort to keep borrowing costs down, represents a policy shift for the central bank.

20100812 1121 Soy Oil & Palm Oil Related News.

Soy product futures ended mixed, with soyoil managing to rise against soymeal on adjustments in the meal/oil spread relationship ahead of Thursday's crop reports. December soyoil settled 0.15 cents or 0.4% higher at 42.38 cents per pound. Speculative funds were estimated buyers of 3,000 lots in soyoil. December soymeal ended $1.90 or 0.7% lower at $287.90 per short ton. Speculative funds were estimated sellers of 2,000 lots in soymeal. (Source:CME)

Argentina Soyoil Sales To India Carry Deep Discount(Source:CME)
While Argentina has increased soyoil sales to India to partially make up for lost exports to China, exporters and farmers are paying for it dearly due to steep discounts for Argentine soyoil, the Buenos Aires Cereals Exchange said in a press release Wednesday.
In April, China blocked the import of Argentine soyoil, citing quality issues, in a move widely seen as retaliation for barriers imposed by Argentina to slow the flow of Chinese products into the local market.
China is the largest buyer of Argentine soyoil and soybeans, Argentina's top export, and China depends on Argentina for the bulk of its soyoil imports.
But since the Chinese slammed shut imports, Argentine soyoil has been selling at a discount of about $50 per ton compared to Brazilian soyoil, the exchange said. That works out to about 5%.
That will affect about 6 million tons of soyoil exports this season, bringing down farm profits and export tax revenue, according to the exchange.
In addition, Chinese soybean millers have taken advantage of the blocked Argentine soyoil imports to bring in about 40% more Argentine soybeans than initially expected for processing in China, the exchange said. China has greatly expanded soybean processing capacity in recent years and is easily able to handle the increased domestic crushing rates.
The exchange called for a rapid end to the trade spat with China and a resumption of soyoil trade. But so far little progress has been made.
In addition, last month Argentina slapped new tariffs on some Chinese textile and food processor imports, a move sure to increase tension with the Asian giant.
As in previous cases, Argentina accused Chinese manufactures of dumping and fixed a minimum reference price for import taxes on the goods.
While the dispute with China drags on, Argentina is pushing hard for India, the world's second-largest edible oil consumer after China, to take up the slack. The South-Asian country meets more than half of its annual needs through imports of palm oil from Indonesia and Malaysia and soyoil from Brazil and Argentina.
Last year very little Argentine soyoil made it to India, but exports to the Asian country are expected to reach $1.5 billion in 2010, Argentina's foreign ministry said in a press release Monday.
India has already bought over $1 billion worth of soyoil during the first six months of the year, according to the release.

Palm flat as higher soyoil, weaker demand clash
KUALA LUMPUR, Aug 11 (Reuters) - Malaysian crude palm oil futures barely moved with the market torn between concerns over weaker demand and stronger U.S. soyoil.
"India is importing a massive amount of soyoil from Argentina. China is buying from South America for their requirement," said a trader in Kuala Lumpur. "Palm oil demand is likely to fall, due to its price parity with soyoil."

Wilmar to buy 20 pct stake in Kencana Agri-sources
SINGAPORE, Aug 11 (Reuters) - Singapore's Wilmar , the world's largest palm oil firm, plans to take a 20 percent stake in small rival Kencana Agri , sources with knowledge of the deal told Reuters.
Most of Kencana's plantations are located in the Kalimantan and Sulawesi regions in Indonesia. It has only planted 20.1 percent of its 188,784 hectare landbank.