Wednesday, August 18, 2010

20100818 1812 FKLI EOD Daily Chart Study.

FKLI closed : 1385.5, changed : +1.5 point, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : getting higher, buyer still in control.
Support : 1385, 1375, 1360 level.
Resistant : 1395, 1405, 1425 level.
Comment :
Last minute surge lifted FKLI to closed marginally higher and traded in improving volume changed hand. Daily chart formed a long lower shadow doji bar candle still above upper Bollinger band level tested near lower support and recovered upward to closed above resistant level. Technical reading still suggesting a upside biased marker development with potential pullback correction.
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.

20100818 1300 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1378.5, changed : -5.5 points, volume : high.
Bollinger band reading : correction range bound, upside biased.
MACD Histrogram : getting lower, buyer realising profit.
Support : 1375, 1360, 1350 level.
Resistant : 1385, 1395, 1405 level.
Comment :
Hit another new year high FKLI opened and tested higher resistant level and corrected downward to test support level at middle Bollinger band ended the first session lower with increased volume traded. Hourly chart shows that market is having correction range bound upside biased reading testing lower support level.

20100818 1246 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2610, changed : -36 points, volume : high.
Bollinger band reading : downside biased.
MACD Histrogram : getting lower, seller getting serious.
Support : 2600, 2570, 2550 level.
Resistant : 2620, 2650, 2670 level.
Comment :
FCPO dive deeper again closing lower in high volume transaction traded as sentiment turned negative in anticipation of weaker demand. Hourly chart shows market opened and tested resistant level followed with seller came in to start their program selling pressed price to downward breaking and closed below support level. Outlook wise, market reading suggesting a downside biased development as price moving in the pace of the Bollinger bans width expansion.

20100818 1046 Local & Global Economic News.

Malaysia: Economic growth to stay strong
The Malaysian economy, whose GDP enjoyed a spectacular performance in the first three months of 2010, is expected to ease in the second quarter. Economists polled forecast the economy to grow 7.93% y-o-y in the second quarter, from 10.1% in the first. They also project full-year growth to average 6.83% before slipping to 5.47% next year. Bank Negara Malaysia will announce the latest data today. (BT)

Singapore: Exports cool as government predicts slowing demand
Singapore’s export growth rose at a less-than-expected pace in July as shipments of pharmaceuticals and electronics cooled amid a weakening global economy. Non-oil domestic exports climbed 18.2% from a year earlier, after a revised 28.5% gain in June, the trade promotion agency said in a statement. The median forecast of nine economists surveyed was for an increase of 20.1%. (Bloomberg)

Hong Kong: Jobless rate slides to lowest in 19 months
Hong Kong’s jobless rate fell to the lowest level since December 2008, encouraging consumers to spend and aiding the city’s recovery. The rate for the three months ended 31 July was 4.3%, compared with 4.6% in the second quarter, the government said on its website. That was lower than the median 4.5% estimate of nine economists surveyed. (Bloomberg)

Taiwan: Economy probably grew more than 10% amid export gains
Taiwan’s economy probably expanded more than 10% last quarter as the island’s shipments of microchips and displays weathered global risks to Asian exports. Gross domestic product expanded 10.15% in the three months through June from a year earlier, after rising 13.27% in the first quarter, according to the median of 14 estimates in a survey. (Bloomberg) US:

Household debt shrank 1.5% in the second quarter
American households pared their debts last quarter, closing credit card accounts and taking out fewer mortgages as unemployment persisted near a 26-year high, a survey by the Federal Reserve Bank of New York showed. Consumer indebtedness totaled USD11.7trn at the end of June, a decline of 1.5% from the previous three months and down 6.5% from its peak in the third quarter of 2008, according to the New York Fed’s first quarterly report on household debt and credit. (Bloomberg)

US: Production rebounds, housing languishes
Production jumped twice as much as forecast in July, signaling manufacturing is shouldering a US economic recovery that is showing signs of moderating in the second half of the year. Output climbed 1% as factories churned out more computers, appliances, automobiles and industrial machinery, the Federal Reserve said. Another report showed work began last month on fewer houses than forecast. (Bloomberg)

20100818 1045 Malaysia Corporate News.

Khazanah gets 95% acceptance
Khazanah Nasional’s wholly owned subsidiary, Integrated Healthcare Holdings Ltd (IHHL), has successfully closed the voluntary general offer (VGO) for Parkway Holdings Ltd Monday. The VGO closed at 5.30pm, at which time IHHL held and had received acceptances for 95% of the shares outstanding in Parkway. This offer by IHHL, which was initially launched as a partial offer for 313m shares of Parkway at an offer price of SGD3.78 per share on 27 May, was subsequently revised to a VGO on 26 July at a revised offer price of SGD3.95 per share, said Khazanah in a media statement. (StarBiz)

TMC Life founder to exit company?
A 25% stake representing 149.55m shares in healthcare player TMC Life Sciences changed hands in two offmarket trades for a sum of RM77.76m, or 52 sen per share, yesterday. Amos Siew Boon Yeong, executive director of TMC Life Sciences, declined to name the parties to the deal. The shares changed hands in two tranches of 120.36m and 29.19m shares. Based on the 2009 annual report, the 120.36m shares transferred appear to be an exact match to the shareholding of Datuk Dr Colin Lee Soon Soo, the founder and managing director of TMC Life Sciences. (Financial Daily)

UMW bags RM579m drilling job in Indonesia
UMW Holdings has secured a USD183.12m (RM578.66m) contract from Hess (Indonesia-Pangkah) Ltd in Jakarta for its jack up drilling rig, Naga 2, for exploration works in Indonesia. The contract involves drilling of seven firm wells and 13 option wells at the Pangkah WHP-B development drilling programme in the Ujung Pangkah Field located in the Pangkah PSC offshore, East Java. UMW said the job is expected to start in the first week of September this year and is for a period of 1,355 days or about 3.7 years. The contract is expected to boost its earnings and net assets for the financial year ending 31 Dec 2010 and onwards, it said. (Malaysian Reserve)

Adex in Malaysia up 22% at RM3.5bn in 1H10
Advertising expenditure (adex) in Malaysia breached the RM3.5bn mark for the first time in the first-half of 2010 (1H10), according to Carat Media Services (M) SB. The figure marked a year-on-year (y-o-y) growth of 22%, said the company using data sourced from Nielsen. Month-on-month adex growth stood at 6%, at RM681,000 from RM644,000 previously, Carat Media said in a statement yesterday. (Malaysian Reserve)

Genting to spend US$1.3b on NY deal
Genting Malaysia is to spend USD1.3bn to invest in its video lottery project in New York, according to an edited copy of the proposal posted on the New York lottery regulator’s website. A report submitted by Genting to New York regulators says it will pay a licensing fee of USD380m, USD350m to develop the site. It also says it plans to build a resort comprising 3 hotels, shopping and other facilities. (BT) 

20100818 1012 Global Market News.

GLOBAL MARKETS: Stocks up on earnings, deal talk; euro rebounds
NEW YORK, Aug 17 (Reuters) - Global shares prices rose on Tuesday as two big U.S. retailers reported higher-than-expected earnings, while the euro rose as worries over Europe's sovereign debt problems eased.
"The deal talk is a big catalyst for today's rally. It validates that there is a greater confidence in the outlook for materials companies," said John Praveen, chief investment strategist at Prudential International Investments Advisers LLC in New Jersey. 

Dlr/yen near 15-yr lows, economic woes cap stocks
LONDON, Aug 17 (Reuters) - The dollar hovered near a 15-year low against the yen, as prospects of more weak economic data from the United States added to worries about a global slowdown and capped gains in stock markets.
"We wouldn't expect markets to make too much headway dramatically in either direction," said Graham Secker, European equity strategist at Morgan Stanley. "We're in a holding pattern until we get a breakout in the economic data."

20100818 1010 Soy Oil & Palm Oil Related News.

Soy product futures bounced in unison with soybeans, with soymeal climbing on concerns of tighter soybean supplies amid lingering yield uncertainties. December soymeal ended $4.40 or 1.5% higher at $299.80 per short ton. December soyoil settled 0.14 cents or 0.3% higher at 42.21 cents per pound.(Source: CME)

Sudden Death Syndrome 'Toasts' Iowa Soybean Crop.(Source: CME)
Most soybean fields in Iowa--a state normally ranked as one of the nation's top-two producers of that important oilseed--are currently under siege from Sudden Death Syndrome, a dramatically named plant disease that often slashes harvest yields by 20% to 60%.
"Over 50% of soybean fields are affected in Iowa, based on the survey we did," said Iowa State University plant pathologist X.B. Yang, widely considered one of the world's leading experts on soybean disease. "Illinois, southern Minnesota, eastern Nebraska [soybean fields] will be affected with less degree."
Although SDS is caused by a soil fungus, [Fusarium virguliforme] that infects soybean roots early in the growing season, symptoms do not become apparent until July/August, first appearing as yellowish spots on foliage. All infected leaves eventually wither and die, killing the plant outright.
"The worst infestations appear to be in central/eastern Iowa, extending into northern/central Illinois. One observer near Peoria said this was the first case of SDS that he had ever witnessed in his vicinity," said Marion, Iowa-based market consultant Rich Balvanz of AMS Commodities. "Unlike some years, when SDS is limited to minor spots within a field, whole fields are being affected by the condition, which results in premature death of plants at the same time that pods are in the critical filling stage."
Yang said in an interview Tuesday that 2010 is, "easily one of the top 1 or 2 worst years for SDS since it was first discovered in 1994. Some fields are toasted [completely dead]."
Growers with fields infected by SDS have little recourse, apart from rotating to a different crop, as no fungicides exist to battle the disease and no soybean varieties exhibit complete resistance to SDS. The disease is exacerbated by exceptionally early plantings in wet soil, exactly the type of field conditions which prevailed across the Midwestern grain belt this spring.
"Losses vary from field to field ... depending at what growth-stage the disease shows up and how large of an area is affected," Yang said. "I have seen losses as high as 30 bushels per acre. Generally severe premature defoliation can lead to 10 bushel losses."
The U.S. Department of Agriculture last week predicted that Iowa soybean farmers would harvest average yields of 51 bushels an acre, equal to last year, and the second-highest for any state in 2010, trailing only Nebraska. Total bean production in Iowa was penciled in at nearly 518 million bushels, equaling 15% of the entire U.S. crop of 3.43 billion bushels.
Although national soy crop scores published Monday by the USDA remained unchanged from a week previous, the amount of Iowa bean acreage deemed worthy of classification as 'good' or 'excellent' tumbled 4 percentage points, to 69%.
"State-by-state [soybean yield] projections showed a decline of about three-tenths of a bushel [in national soybean yields], with significant set backs noted, due to too much rain in Iowa," said Farm Futures analyst Bryce Knorr.

Weaker soy, exports drag palm oil to one-week lows
KUALA LUMPUR, Aug 17 (Reuters) - Malaysian crude palm oil futures fell to more than one-week lows along with other vegetable oil markets although prospects of lower production reined in losses.
"Palm oil fell in unison with the broader market, however, a lack of millers selling in the cash market kept the underlying (sentiment) strong," said another trader in Kuala Lumpur.

China says working to resolve Argentina soyoil dispute
BEIJING, Aug 17 (Reuters) - China's commerce ministry said it was working with Argentina on a mechanism to help resolve a trade dispute over soyoil, but gave no time frame for the resumption of soyoil imports from the world's largest exporter.
"Last month, our ministry had deep discussions over the issue with the Argentina side," said Yao Jian, the ministry's spokesman at a regular news conference.