Monday, August 23, 2010

20100823 1833 FCPO EOD Daily Chart Study.

FCPO closed : 2544, changed : +16 points, volume : higher.
Bollinger band reading : correction range bound little upside biased.
MACD Histrogram : getting lower, seller taking exposure
Support : 2550, 2520, 2500 level.
Resistant : 2570, 2600, 2620 level.
Comment :
FCPO rebounded to closed little higher with improved volume traded after market opened higher and tested support and resistant level. Daily chart shows market form a doji bar candle with longer lower part shadow with the Bolliger band moving narrower suggesting market to trade side way range bound consolidating testing support and resistant level.
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.

20100823 1821 FKLI EOD Daily Chart Study.

FKLI closed : 1401, changed : +11 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : getting higher, buyer dominated market.
Support : 1395, 1385, 1375 level.
Resistant : 1405, 1425, 1445 level.
Comment :
8th consecutive gains FKLI rallies closed right at the high of the day with better volume transaction traded after market opened and surged higher. Daily chart from the wide range up bar candle and closed at above upper Bollinger band with the outlook still recording upside biased reading with potential pullback correction.
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.

20100823 1303 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1398, changed : +8 points, volume : low.
Bollinger band reading : upside biased.
MACD Histrogram : weakenning, buyer defending and taking profit partially.
Support : 1395, 1385, 1375 level.
Resistant : 1405, 1425, 1445 level.
Comment :
Bullish FKLI opened and rallied higher again with average volume transacted taking another new high. Hourly chart shows price hovering around upper Bollinger band the reading still remained upside biased with possible downward pullback correction.

20100823 1251 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2555, changed : +11 points, volume : high.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : getting lower, seller taking exposure
Support : 2550, 2520, 2500 level.
Resistant : 2570, 2600, 2620 level.
Comment :
FCPO lifted up slightly in high volume transaction changed hand following soy oil futures price development that is currently rebounding upward. Hourly chart shows market is having pullback correction after price touched the lower Bollinger band with the reading suggesting a range bound correction downside biased market development testing higher resistant level.

20100823 1026 Global Economic News.

Japan: Prime Minister may delay meeting with BOJ
Japanese Prime Minister Naoto Kan may postpone a planned meeting next week with Bank of Japan Governor Masaaki Shirakawa, Jiji Press reported, to avoid the appearance that the government is interfering with central bank policy. Speculation has been rife that Japan will introduce steps to alleviate the threat the yen’s climb poses to growth. (Bloomberg)

US: Payrolls increase in 37 states, led by Michigan
Payrolls increased in 37 US states in July, led by a jump in Michigan that may reflect a gain in auto making. Employers in Michigan added 27,800 jobs last month, the most since October. Massachusetts, New York and Minnesota rounded out the four states with the biggest job gains. (Bloomberg)

US: Treasury 10-year notes gain for fourth week as recovery falters
Treasury 10-year notes gained for a fourth week, pushing yields to the lowest since March 2009, as economic data showed the recovery is losing momentum and the Federal Reserve resumed purchases of US debt. The government will auction USD102bn of 2-, 5- and 7-year notes next week, the smallest monthly offering of that combination of securities since May 2009. (Bloomberg)

US: Home sales probably fell, goods orders up
Home sales probably plunged in July, and orders for long-lasting goods climbed for the first time in 3 months as the US strained to sustain the recovery from the worst recession since the 1930s, economists said before reports this week. Purchases of new and existing houses dropped 12% and durable goods bookings climbed 3%, according to the median forecast of 54 economists surveyed. (Bloomberg)

20100823 1025 Malaysia Corporate News.

MAS to receive 35 Boeing 737-800 by Oct 2011
Malaysia Airlines (MAS) will be operationally more efficient to handle faster turnaround when it takes delivery of 35 new generation Boeing 737-800 within one year. The first three aircraft would be delivered this year, with the first one arriving in October and the rest in stages until October next year. The fuel efficient 737-800 with the capacity of 150 seats is bigger than B737-400 and is set to replace MAS’ ageing fleet and expand its operations. (Malaysian Reserve)

Syed Yusof buys into Vasseti, which is launching its broadband service today
Businessman Tan Sri Syed Yusof Syed Nasir has bought a 30% stake in Vasseti Bhd, which is expected to launch its 1Gbps (gigabit per second) fixed line broadband service offering for residential users in select areas today. With a paid-up capital of RM15m, Vasseti has business interests in telecommunications and information technology, plantations, construction, tourism, real estate and human resource outsourcing services. Its other shareholders are Ranjeet Singh Sidhu and Datuk M. Harisharan Pal Singh. Vasseti’s journey into telecoms began early this year when it undertook a corporate exercise to buy 80% equity stake in V Telecoms Bhd, which has a paid-up capital of RM502m. V Telecoms holds network facilities provider and NSP network services provider licences. Yusof said V Telecoms had thus far invested RM500mil to build a fibre optic network that spanned the length of Peninsular Malaysia (StarBiz)

Technip plans to buy 8-10pc stake in MHB
In an announcement on Bursa, it was mentioned that MISC Bhd has signed a binding term sheet with Technip Societe Anonyme (Technip) in relation to the strategic investment by technip of between 128m ordinary shares of RM0.50 each in MHB and up to a maximum of 158.4m MHB shares, representing between 8 to 9.9 per cent of the enlarged issued and paid-up share capital of MHB upon the Proposed Listing. Technip would also pay a 2 per cent premium over the institutional price. As part of the deal, it cannot sell the stake in the first three years of the IPO’s completion, without agreement from MISC. (Bursa Malaysia, BT)

HSL wins RM47m road project
Hock Seng Lee Bhd (HSL) has secured a RM47.1m road project in Sarawak Corridor of Renewable Energy (SCORE) from Sarawak Timber Industry Development Corp (STIDC). This brings to a total of RM262m worth of contracts the company has been awarded this year. The proposed road will link Serdeng junction with Bandar Baru Tanjung Manis and connect the halal park and Kampung Rajang in Mukah Division. The project will traverse low-lying coastal terrain and involve the construction of two reinforced concrete bridges and several culverts over minor waterways. HSL managing director Datuk Paul Yu Chee Hoe said the project contract was 24 months and HSL was expected to possess the site next week. (StarBiz)

 IJM Plantations plans RM200m capex this year
IJM Plantations Bhd plans to spend RM200m on capital expenditure (capex) for the current financial year ending 31 March, 2011, with the bulk for the expansion of its landbank in Indonesia. Chief executive officer Joseph Tek Choon Yeo said this year. it would focus on expanding its estate size in Indonesia and improving its existing infrastructure in Sabah. “We are allocating about RM160m for the expansion of planting activity in Indonesia and RM40mil for our Sandakan and Sugut operations, which we intend to improve the housing and facilities there,” he said after the company’s AGM yesterday. (StarBiz)

Hopetech eyes listing in 2011
Hopetech SB, a company that provides revenue collection systems for highway tolls, is eyeing to list on the local stock exchange some time next year as it seeks new funds for expansion plans. Hopetech managing director Hairul Ridza Hayata said it is currently in talks with investment bankers, and expects to submit an application to the authorities within two months. "The plan is to initially list in the ACE Market, and we hope that within one to two years, we will transfer our listing status to the main market," said Hairul in a Business Times interview in Kuala Lumpur recently. For the first half ended 30 June, the company posted revenue of RM58m and a net profit of about RM13m, more than what the company did for the entire 2009. Currently, about half of the company's sales come from businesses in Malaysia, while the other half from overseas, such as Indonesia, the Philippines, Thailand as well as India. Part of the company's growth strategy moving forward is to have a bigger role in the Indian market. (BT)

20100823 1016 Global Market News.

Japan stocks slip on yen worries; Aussie rebounds
HONG KONG, Aug 23 (Reuters) - Japanese shares extended losses amid worries a strong yen would derail the fragile economic recovery, while the Australian dollar recovered after falling to a one-month low on inconclusive weekend elections.
"There is the mining tax and the broadband issues but there are not too many economic differences," said Simon Burge at ATI Asset Management which oversees A$500 million. "But with no party having a clear majority it makes it hard for them to get any of their mandates through."

GLOBAL MARKETS: Japan stocks extend losses, Aussie rebounds
HONG KONG, Aug 23 (Reuters) - Japanese shares extended losses on Monday amid worries a strong yen would derail the fragile economic recovery while the Australian dollar recovered after falling to a one-month low on inconclusive weekend elections. Investors are focused on whether central bank Governor Masaaki Shirakawa and Prime Minister Naoto Kan will meet to discuss any official action in the face of the yen's strength.

US jobless claims at 9-month high, outlook darker
WASHINGTON, Aug 19 (Reuters) - The frail U.S. economy received fresh setbacks as new U.S. jobless claims scaled a nine-month high last week and Mid-Atlantic manufacturing shrank in August for the first time in more than a year. Other data released on Thursday, including a lackluster gain in a gauge of future activity last month, also implied that expansion had lost momentum after a brisk first quarter, though economists cautioned against interpreting the reports as signs of an impending double-dip recession.

ANALYSIS-Slowdown to shackle industrial commodities in H2
LONDON, Aug 19 (Reuters) - Industrial commodities face an uphill struggle over coming months as economic growth slows, but the price collapse seen in the last quarter of 2008 is unlikely. Recent data from the United States has raised doubts about the strength of recovery in the world's largest economy. Meanwhile China is tightening policy to rein in price pressures.

FOREX-Euro hits 5-wk low vs dollar on ECB comments
LONDON, Aug 20 (Reuters) - The euro fell to its lowest against the dollar in more than a month on Friday after comments by a European Central Bank official bolstered the view that euro zone monetary policy would remain loose for months to come. "The comments will lead the market to believe that policymakers are expecting further economic weakness," said Raghav Subbarao, currency analyst at Barclays Capital.

U.S. economy concerns hurt stocks
LONDON, Aug 20 (Reuters) - Investors steered clear of riskier assets amid growing concerns about slackening growth in the U.S. economy.
Globally, equities were lower, with Europe giving up early gains. The Japanese yen, a popular safe haven, threatened to hit a 15-year high against the dollar.

20100823 1015 Soy Oil & Palm Oil Related News.

U.S. soy product futures finished lower on projections that the upcoming soybean harvest will be larger than previously expected. Yield reports from participants on the annual Pro Farmer Midwest Crop Tour were up from last year, and the group Friday pegged soybean production 100,000 bushels above USDA's latest estimate. Losses in crude oil added spillover pressure to soyoil, a trader said. Commodity funds sold an estimated 1,000 soymeal contracts and 3,000 soyoil contracts. CBOT December soymeal ended down $2 to $293.10 per short ton, and December soyoil lost 0.39 cent at 40.09 cents per pound. (sOURCE: CME)

Top Soy Companies Double Soy Area In Brazil's Mato Grosso(Source: CME)
Mato Grosso's Agricultural Economy Institute, or Imea, said that top soy producers have doubled the size of their soy areas in the last five years in Mato Grosso state, Brazil's No.1 soy producing state. "This is part of a natural trend for concentration by the biggest players and we expect this trend to continue for the coming years," Otavio Celidonio, CEO at Imea, told Dow Jones Newswires on Friday. Celidonio said that the top 20 biggest international and Brazilian agricultural companies in Mato Grosso planted 1.2 million hectares in 2009-10 versus 533,700 hectares in 2004-05. These companies account for 20% of the soy grown in Mato Grosso on 6.2 million hectares, as often indebted small- and mid-size farmers sell their land, he said. Big companies have economies of scale and can often get better prices for their beans. They also pay less for their inputs such as fertilizer, Celidonio said. Mato Grosso has for a long time seen companies such as Grupo Andre Maggi running giant agribusiness operations.
This compared to Parana, the No.2 soy producing state, where farmers are more often smaller in size and linked to cooperatives. Mato Grosso has also recently seen the arrival of large-scale international players such as Argentina's Los Grobo and El Tejar. The 2009-10 soybean harvest ended in May and planting for the new 2010-11 crop will begin in September in Mato Grosso. Brazil is the world's No.2 soybean producer after the U.S.

Markets tumble as supply outlook outweighs weather woes
KUALA LUMPUR, Aug 20 (Reuters) - Malaysian crude palm oil futures notched their biggest weekly fall since last October as traders took profits from a recent weather rally in global soyoil markets and lower palm oil exports.
"External markets dropped in expectations of bumper soy crops in the United States as well as rumours that China would auction rapeseed and soyoil stocks from the state reserves," said an oil analyst in northern city of Heilongjiang.

China's top soy area sees bumper harvest -CNGOIC
BEIJING, Aug 20 (Reuters) - Heilongjiang province, China's top soy area, is expecting a bumper harvest in October despite plantings being delayed by about 10 days, said the China National Grain and Oils Information Centre (CNGOIC).
The centre cited the Heilongjiang Soybean Association as saying yields could increase by 10 percent if the weather was favourable in the later growing period. It did not give any figures.