Thursday, August 19, 2010

20100819 1825 FCPO EOD Daily Chart Study.

FCPO closed : 2595, changed : -15 points, volume : lower.
Bollinger band reading : correction range bound little upside biased.
MACD Histrogram : getting lower, seller getting encouragement to stay put.
Support : 2570, 2550, 2520 level.
Resistant : 2600, 2620, 2650 level.
Comment :
FCPO eased lower to record decline in lower but consider relatively high volume traded after market opened lower and recovered upward to closed near the high. Daily chart shows that market opened below the support turned resistant middle Bollinger band level with the outlook still having range bound little upside biased reading.
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.

20100819 1823 FKLI EOD Daily Chart Study.

FKLI closed : 1389, changed : +3.5 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : getting higher, buyer in charged.
Support : 1385, 1375, 1360 level.
Resistant : 1395, 1405, 1425 level.
Comment :
Hit new year high for the third day FKLI ended little higher still in sustaining volume changed hand as market opened and tested higher resistant level prompted buyer to secure profit pressed price to closed off the high of the day. Daily chart formed a classic shooting star doji bar candle traded outside of the Bollinger band hinted a potential pullback correction awaits tomorrow confirmation with the underlying reading still upside biased.
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.

20100819 1256 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1395, changed : +9.5 point, volume : high.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer stayed on guard.
Support : 1385, 1375, 1360 level.
Resistant : 1395, 1405, 1425 level.
Comment :
Steroided FKLI registering 4th day of consecutive gained with high volume transaction changed hand in tandem with major Asian market exchange. Hourly chart shows market opened and continue to surge upward along with upper Bollinger band testing higher resistant level with the reading suggesting a upside biased market development and possible pullback correction.

20100819 1238 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2582, changed : -28 points, volume : high.
Bollinger band reading : correction range bound little upside biased.
MACD Histrogram : turned lower, buyer retreat as seller getting aggressive.
Support : 2570, 2550, 2520 level.
Resistant : 2600, 2620, 2650 level.
Comment :
High volume transaction FCPO ended first half lower in tight 22 points range market after overnight soy oil futures price traded lower. Hourly chart wise, market opened lower below lower Bollinger band level and currently having upward pullback correction with still downside biased reading.

20100819 1028 Local & Global Ecnomics News.

Malaysia: Economy grew a strong 8.9% in 2Q; domestic demand to support growth in 2H2010
Sustained expansion in domestic demand and continued robust growth in external demand drove the country’s economy to register a strong 8.9% growth in the second quarter of 2010, said Bank Negara Malaysia. The stronger domestic demand was due to higher private and public sector spending, while the expansion in external demand spurred domestic production. On the supply side, major economic sectors continued to record strong growth during the quarter, led by the manufacturing and services sectors. (Financial Daily)

Malaysia: CPI up 1.9% y-o-y in July to 114 The Consumer Price Index (CPI) rose 1.9% year-on-year (y-o-y) in July to 114.0 from 111.9 a year ago, due mainly to increases in the index for food & non-alcoholic beverages and the non-food index. For the period from January to July this, the CPI rose 1.5% to 113.4 compared with that of 111.7 in the same period last year. In a statement Wednesday, Aug 18, the Department of Statistics Malaysia said compared with June, the CPI increased by 0.3%. (Financial Daily)

China: To start yuan-ringgit trading China will begin trading in yuan against the Malaysian ringgit, marking the latest step by Beijing to internationalize its currency. The introduction of a sixth currency to trade against the yuan comes after the Chinese central bank said on Tuesday it would open the yuan bond market to funds accumulated overseas through trade settlement or central bank swaps. (Financial Daily)

Australia: Abbott Australian vote win would boost Aussie on mining tax end
Australia’s dollar may extend its world-beating gains this quarter should voters hand victory on 21 Aug to opposition leader Tony Abbott, who’s promised to scuttle a proposed tax on mining companies. Abbott has called this weekend’s contest a “hard election to win,” with opinion polls showing his Liberal-National coalition neck-and-neck with Prime Minister Julia Gillard’s Labor Party. (Bloomberg)

Russia: Putin bond demand sinks as drought lifts prices
Russia sold the smallest amount of 2014 ruble bonds in more than two months as investors demanded higher yields after the worst drought in 50 years boosted food prices. The Ministry of Finance raised RUB1.2bn (USD40m), or 6%, of the RUB20bn of federal debt known as OFZs offered, the least since a 2 June auction, according to central bank data. (Bloomberg)

EU: Construction rises most in three months
European construction output rose the most in three months in June, led by a rebound in Spain. Construction in the 16-nation euro region increased 2.7% from May, when it fell 0.7%, according to the European Union’s statistics office in Luxembourg. From a year earlier, June output rose 3.1% after falling 6.2% in the previous month. (Bloomberg)

UK: BOE voted 8-1 on stimulus in third loss for Sentance
Bank of England policy makers considered arguments for expanding or withdrawing emergency stimulus this month before overruling Andrew Sentance’s third call for an interest-rate increase. The Monetary Policy Committee, led by Governor Mervyn King, voted 8-1 to keep the benchmark rate at 0.5% and their bondpurchase plan at GBP200bn (USD313bn). (Bloomberg)

Brazil: GDP to accelerate this quarter, Meirelles says Brazil’s central bank President Henrique Meirelles said economic growth will accelerate in the third quarter and that analysts should not come to “hasty” conclusions about policy makers’ future decisions. “There will be a recovery -- the question is to what level of activity and inflation,” Meirelles said in an interview with GloboNews TV network. “What we can’t do is to arrive at hasty conclusions. The central bank cannot signal what it doesn’t know.” (Bloomberg)

US July home building up, industrial output rises
WASHINGTON, Aug 17 (Reuters) - U.S. home building increased at a much weaker pace than expected in July, though sturdy growth in industrial output implied the embattled economy has enough strength to keep growing. Tuesday's mixed batch of data also showed a tick up in producer inflation last month, which some analysts said helped ease concerns of a damaging downward spiral of falling prices amid an ebb in momentum in recovery from the longest and deepest downturn since the 1930s.

Obama seeks new design for housing, Fannie/Freddie
WASHINGTON, Aug 17 (Reuters) - The U.S. government's role in housing finance should undergo "fundamental change," but it should still provide some guarantees in the mortgage market, Treasury Secretary Timothy Geithner said on Tuesday. Setting the stage for what promises to be a long debate about fixing Fannie Mae and Freddie Mac, Geithner convened a conference of housing industry leaders and heard a range of ideas about reforms for the $10.7 trillion mortgage market.

20100819 1026 Malaysia Corporate News.

Singapore ‘remisier king’ in TMC
Peter Lim Eng Hock, long dubbed Singapore’s “remisier king” and one of the island-republic’s richest men, has emerged as the new shareholder in healthcare player TMC Life Sciences with a 29.6% stake following the exit of founder and managing director Datuk Dr Colin Lee Soon Soo. Lim is believed to have bought a collective 25% stake from Colin Lee and his brother Lee Soon Swee, in two off-market trades on Tuesday at 52 sen a share for a total of RM77.8m. It is uncertain where the remaining 4.6% of Lim’s stake came from. Colin will remain as its managing director. (Financial Daily)

Jetson’s termination of JV a sign of brewing tussle
Kumpulan Jetson’s subsidiary Jetson Construction SB has terminated its joint venture agreement with China State Construction Engineering (Hong Kong) Ltd, which was entered into to build Platinum Park here. The parties have mutually agreed to terminate the JV deal, which was entered into on 6 May for the purpose of jointly submitting a tender on Naza TTDI SB’s invitation to develop a 38-storey office block and 10 levels of podium for Platinum Park in Jalan Stonor in KL City Centre. In an announcement to Bursa Malaysia yesterday, Jetson said the termination stemmed from the inability of the parties and Naza TTDI to reach a consensus in relation to the payment arrangement in respect of the first progress payment. (Financial Daily)

MPB extends offer for NSTP to 14 Sept
Media Prima (MPB) has further extended the closing date for the takeover offer of The New Straits Times Press (Malaysia) (NSTP) until 5pm on 14 Sept, the second and final extension as permitted under the Malaysian Code on Takeovers and Mergers 1998. In a statement yesterday, MPB said it held a total of 96.85% of shares in NSTP as of Tuesday. It said extensions would provide ample time for the remaining shareholders to take up the offer to swap their shares. (Financial Daily)

EON Cap delays shareholder vote on Hong Leong takeover
EON Capital has postponed an EGM scheduled for today to vote on Hong Leong Bank’s RM5.06bn takeover offer after a minority shareholder tried to block it in court. A stockholder owning 200 shares filed a High Court summons in Kuala Lumpur challenging the validity of the EGM on the grounds that not enough notice was allegedly given. A new date will be fixed for shareholders to vote, the lender said in a filing to Bursa Malaysia yesterday. (Malaysian Reserve)

Celcom Axiata issues RM4.2bn sukuk
Celcom Axiata, the second largest mobile telco by number of subscribers in Malaysia, issued RM4.2bn Islamic bonds in a private offering to three local institutional investors. The Employees Provident Fund (EPF) agreed to take up RM3.4bn of the Islamic bond, also known as sukuk, while CIMB Islamic Bank and Malayan Banking took up the remaining RM800m equally, according to a statement from Celcom, a unit of Axiata Group. (Malaysian Reserve)

Handal JV secures RM12.3m contract in Indonesia
Handal Resources’ wholly-owned unit Handal Offshore Services SB (HOSSB) announced that its joint venture bid has secured a contract worth USD3.9m (RM12.31m) from Pertamina Hulu Energi ONWJ Ltd to operate, inspect and maintain up to 200 cranes offshore the north west Java sea in Indonesia. In a release to Bursa Malaysia yesterday, Handal said HOSSB jointly bid for the project with PT Encona Inti Industri and PT Cakra Daya Energy with HOSSB holding a 50% in the joint bid that was submitted under the name of Encona. (Malaysian Reserve)

20100819 1015 Global Market News.

Japan shares up, yen steady on easing talk
SINGAPORE, Aug 19 (Reuters) - Japanese shares rose on Thursday, outperforming the rest of Asia, and the dollar held steady on a report that the Bank of Japan was considering new monetary easing measures to weaken the yen's export-sapping rise.
"Until we get a clear sentiment shift, the markets are still catering mostly to those with a very short-term trading bias, or a very long-term perspective. For everyone in between, the gut-wrenching could continue for awhile," Randy Frederick, director of trading and derivatives for Charles Schwab, said in a note.

GLOBAL MARKETS: Stocks eke out gain on mixed earnings, oil dips
NEW YORK, Aug 18 (Reuters) - World stocks scratched out gains on Wednesday after a forecast from U.S. retailer Target Corp aided the consumer outlook in a field of tepid earnings, while energy shares fell as crude oil prices were pressured by a disappointing industry report.
"The market is still rangebound. There is no conviction at the moment, and this will go on until September when investors come back from holiday," said Alexandre Le Drogoff, technical analyst at Aurel BGC in Paris.

Stocks weakened by oil, BHP move
LONDON, Aug 18 (Reuters) - World stocks were flat on Wednesday, held back by losses in Europe that were partly caused by energy shares taking a beating from the weaker oil price.
Wall Street looked set to open flat.Shares of global miner BHP Billiton remained in focus, falling 2 percent in London on concerns that it may have to overpay for Canadian fertiliser group Potash Corp after the Canadian group rejected an initial offer.

Asian shares rise, BHP bid boosts confidence
SINGAPORE, Aug 18 (Reuters) - Asian stocks rose and the dollar inched up against the yen as a $39 billion takeover bid in the farm sector and earnings from two U.S. retail giants boosted confidence in the corporate outlook.
"Today we're seeing short-covering prompted by the overnight Wall Street rise, but the main players are day traders and they tend to dump shares fairly quickly when any rises lose steam," said Norihiro Fujito, general manager of the investment research and information division at Mitsubishi UFJ Morgan Stanley Securities.

20100819 1012 Soy Oil & Palm Oil Related News.

Soy product futures ended mixed, with soyoil stumbling on the bearish impact of abundant supplies and slowing demand. Early weakness in crude oil helped pin soyoil in negative territory, analysts said. Soymeal futures ended higher, benefiting from soyoil's weakness in the meal/oil spread relationship. December soymeal ended $0.20, or 0.1%, higher at $300.00 per short ton. December soyoil settled 0.76 cents, or 1.8%, lower at 41.45 cents per pound. (Source: CME)

BUENOS AIRES, Aug 12 (Reuters) - Agribusiness giant Cargill Inc  said on Thursday it will invest $112.4 mln in a biodiesel plant in Argentina, one of the world's top suppliers of biodiesel. Argentina is also the world's top exporter of soyoil, largely used for biofuels production.

Tepid soyoil drags palm oil to fresh one-week lows
KUALA LUMPUR, Aug 18 (Reuters) - Malaysia crude palm oil futures fell to a fresh one-week low on Wednesday as market players booked profit on lacklustre soyoil markets. "There's no significant movement in the overseas market so the market is going for a technical correction," said a trader with a foreign brokerage in Kuala Lumpur. "The market is being mainly influenced by external factors," he added.

Oil falls as U.S. petroleum stockpiles head for record
SINGAPORE, Aug 18 (Reuters) - Oil prices fell after an industry report signalled petroleum inventories in top consumer the United States were headed for a record, following an unexpected sharp increase in crude stocks last week. "It looks like the oil product market is very comfortably supplied and that demand conditions remain lacklustre," said Stefan Graber, a commodities analyst with Credit Suisse in Singapore.

20100819 1002 FCPO EOD Daily Chart Study(18 Aug 2010).

FCPO closed : 2610, changed : -36 points, volume : higher.
Bollinger band reading : correction range bound little upside biased.
MACD Histrogram : turned lower, buyer retreat as seller getting aggressive.
Support : 2600, 2570, 2550 level.
Resistant : 2620, 2650, 2670 level.
Comment :
FCPO continue to correct downward to closed lower with improved trading volume traded following a weaker soy oil futures price plus slower demand anticipation. Daily chart opened and tested little higher followed by buyer closing position and present of seller program selling activities pressed price tested below middle Bollinger band support level and bounced off to closed just above it. Reading wise, market continue to have downward correction with the upside biased getting little weak.
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.