Tuesday, August 24, 2010

20100824 1810 FKLI EOD Daily Chart.

FKLI closed : 1399, changed : -2 points, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : getting higher, buyer defending.
Support : 1395, 1385, 1375 level.
Resistant : 1405, 1425, 1445 level.
Comment :
Finally a decline day for FKLI after 8 straight days of climb with lesser volume traded taking some rest. Daily chart form a classical doji market candle hint for a potential correction to take place with the reading remain 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.

20100824 1304 FKLI Mid Day Hourly Chart Study,

FKLI closed : 1401.5, changed : +0.5 point, volume : low.
Bollinger band reading : range bound upside biased.
MACD Histrogram : recovering, buyer still in control.
Support : 1395, 1385, 1375 level.
Resistant : 1405, 1425, 1445 level.
Comment :
1 tick higher FKLI traded in quiet volume for the first session today after tested near support level and recovered. Hourly chart wise, market seems supported along the middle Bollinger band with reading suggesting a range bound upside biased development.

20100824 1253 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2545, changed : -15 points, volume : high.
Bollinger band reading : side way range bound little downside biased.
MACD Histrogram : weakening, seller testing market strength.
Support : 2520, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
Lower overnight soy oil futures price plus a stronger Ringgit lead FCPO to end the first session declined lower in high volume traded after testing near support and resistant level. Hourly chart shows price traded along and below middle Bollinger band with the band width getting narrowing suggesting a side way range bound little downside biased market development.

20100824 1028 Local & Global Econimic News.

Malaysia: Use of ringgit to expand Bank Negara's recent foreign exchange (forex) liberalization measures coupled with China allowing yuan-ringgitt trade will gradually reduce the dependency on the US dollar and enhance trade financing efficiency, experts said. (StarBiz)

Singapore: Inflation accelerates on car prices, electricity
Singapore’s inflation accelerated in July as higher oil costs pushed up electricity tariffs and government quotas on vehicle licenses boosted car prices. The consumer price index climbed 3.1% from a year earlier, Singapore’s Department of Statistics said in a statement. (Bloomberg)

Thailand: Economy grows more than forecast as exports gain
Thailand’s economy expanded more than estimated last quarter as surging exports countered the impact of political turmoil, supporting gains in the nation’s currency and stocks. Gross domestic product rose 9.1% in the three months through June from a year earlier, the government said in Bangkok. (Bloomberg)

Vietnam: Inflation slowed for fifth month in August
Vietnam’s inflation cooled for a fifth month in August, a slowdown that may ease concerns the government’s devaluation of the dong will stoke price pressures. Consumer prices climbed 8.18% this month from a year earlier, according to figures released by the General Statistics Office in Hanoi, down from 8.19% in July. (Bloomberg)

EU: Consumer confidence unexpectedly improved in August
European consumer confidence unexpectedly improved in August after economic growth accelerated to the fastest pace in four years in the second quarter. An index of sentiment in the 16-nation euro area rose to minus 12 from minus 14 in July, the European Commission said in an initial estimate. (Bloomberg)

EU: Hungary leaves main rate unchanged for fourth month
Hungary left its benchmark interest rate unchanged for a fourth month and said inflation and debt risks worsening following the collapse of talks with the International Monetary Fund may prompt a rate increase. (Bloomberg)

UK: Economy to take pounding
The British pound’s biggest rally in 14 months is in jeopardy as Prime Minister David Cameron’s budget cuts begin to curb economic growth. Foreign-exchange forecasters are the most pessimistic on the pound since May 2009, when Standard & Poor’s said the UK was at risk of losing its AAA credit rating. (Bloomberg)

US: Housing slide may drag economy into recession Housing led the US out of seven of the last eight recessions but it may kill the recovery this time. Home sales collapsed after a federal tax credit for buyers expired in April. Since then, the manufacturing-led expansion, which began in the second half of 2009, has been waning, with jobless claims rising and factory orders falling. (Bloomberg)

20100824 1027 Malaysia Corporate News.

QL Resources lays hands on rival
QL Resources yesterday acquired 11m shares, or 23.29% of Lay Hong, in an off-market transaction. The identity of the seller was not disclosed but it is believed to be London Biscuits. All three players are in the food business. The common denominator in the three companies is the need for eggs, which is what Lay Hong offers. Founded in the 1970s and listed since October 1994, Lay Hong is mainly involved in the production of eggs, broiler farming and feedmill activities. (Financial Daily)

Boustead 2Q net profit surges 212% to RM146.5m
Boustead Holdings’ net profit for the second quarter (2Q) ended 30 June 2010 surged 212% to RM146.5m from RM46.9m a year ago, mainly due to stronger palm oil prices and higher sales volume. Its revenue for the quarter increased to RM1.42bn from RM1.28bn in 2009, with earnings per share (EPS) of 15.68 sen. Boustead declared a second interim single tier dividend of 10 sen per share. For the six months ended 30 June, Boustead’s net profit jumped to RM236.7m from RM107.8m, on the back of a 20% increase in revenue to RM2.98bn from RM2.49bn in 2009. EPS came in at 25.45 sen. (Financial Daily)

HLBB gets shareholders’ nod to adjourn EGM
Hong Leong Bank (HLBB) yesterday obtained its shareholders’ approval to adjourn its EGM to a yet-to-bedetermined date. The EGM was to have been for shareholders to consider its proposed acquisition of the entire assets and liabilities of EON Capital for RM5.06bn cash, or RM7.30 per share, and a proposed renounceable rights issue of shares to raise gross proceeds of about RM1.6bn. This follows EON Cap’s decision last week to discontinue its EGM and to issue a fresh notice to convene an EGM at a later date to consider the proposed disposal. (Financial Daily)

Nadzmi does not rule out RM500m cash injection for Lotus
Proton Holdings chairman Datuk Seri Mohd Nadzmi Mohd Salleh did not rule the possibility of its subsidiary, Lotus Group International Ltd, requiring an additional RM500m over the next two years to develop new models. Nadzmi also confirmed reports that about RM290m had been advanced to Lotus. It was reported that Lotus required the cash injection before it could repay all amounts due to Proton. (Financial Daily)

Salcon acquires water treatment company in China for RM20.3m
Salcon via its unit Salcon Jiangsu (HK) Co Ltd has acquired 100% equity interest in China’s Yizheng Rong Xing Wastewater Treatment Company Ltd for RM20.28m. The acquisition is further to the signing of a water consolidation cooperation agreement on 1 Dec 2009, with the government of Yizheng City, China, for the integration and consolidation of water and wastewater works in Yizheng city, said Salcon in a statement yesterday. This is Salcon’s eighth concession in the Jiangsu Province, China. (Financial Daily)

Xingquan expects double-digit earnings growth to continue
Xingquan International Sports Holdings Ltd CEO Wu Qing Quan, who expresses confidence in the company sustaining a double-digit earnings growth in the current financial year ending 30 June 2011 (FY11), says he has no intention of divesting his equity stake in the sport shoemaker in China. Wu, who is the single largest shareholder with a 58.4% stake in Xingquan, said he would retain his shareholding, adding that any interested investor wanting to acquire a substantial stake would have to buy on the open market. (Financial Daily)

UMW buys stake in China oil company
UMW Holdings’ wholly-owned unit UMW China Ventures (L) Ltd will spend USD24.68m (RM77.5m) to buy 46,700 preferred shares, representing a 4.67% stake, in Hilong Holdings Ltd (HL Cayman) from owner Zhang Jun. In a filing to the exchange yesterday, UMW said the purchase would create value, synergies and future business opportunities for the group as the Hilong group undertakes drilling related activities in countries like China, Ecuador, Kazakhstan and others. (Malaysian Reserve) 

20100824 1020 Global Market News.

Nikkei leads Asia stks down,euro at 6-wk low
SINGAPORE, Aug 24 (Reuters) - Asian stocks fell, with Japan's Nikkei index dipping below a key support level as investors fretted about an anaemic global recovery, while the euro hit a six-week low against the dollar.
"Selling by hedge funds and European investors appears to be hurting stocks and if the Nikkei goes further below 9,000, unloading by individual investors will also likely accelerate," said Masayuki Otani, chief market analyst at Securities Japan Inc.

M&A activity boosts world stocks; oil firmer
LONDON, Aug 23 (Reuters) - World stocks rose from last week's one-month low on Monday as a slew of corporate takeover activity and an encouraging euro zone business survey helped ease concerns about a global economic slowdown.
Mining shares gained as financial markets bet Australia's inconclusive weekend elections would lead to a change of government, spelling the end to a plan to impose tax on major iron ore and coal mines.
In the corporate sector, increasing merger and acquisition activity is boosting investor sentiment as companies utilise high cash balances and historically low borrowing costs to look for bargain buys and expand their business.

20100824 1018 Soy Oil & Palm Oil Related News.

Soy product futures ended mixed, with meal/oil spreading buoying soymeal futures. Soymeal followed soybeans higher on strong demand, while soyoil came under pressure from ample supplies and spillover pressure from crude oil futures. Crude oil influences soyoil due to its use in making renewable fuels. December soyoil settled 0.27 cents or 0.7% lower at 39.82 cents per pound. December soymeal ended $1.80 or 0.6% higher at $294.90 per short ton. (Source: CME)

China July Soybean Imports 4.95 Mln Tons, Up 12.5% On Year(Source: CME)
China's soybean imports in July rose 12.5% on year to 4.95 million metric tons, the General Administration of Customs said Monday. For the first seven months of the year, soybean imports rose 16.2% to 30.76 million tons. July soybean imports fell 20% from the all-time record volume imported in June. China is the world's biggest importer of soybeans and gets most of its supplies from the U.S., Brazil and Argentina, the world's leading soybean producers.

Brazil 2009-10 Soy Sales Steady At 85% As Of Aug. 20 -Celeres(Source: CME)
Brazil's soy sales remained steady at 85% of the 2009-10 soybean crop as of Friday, local agricultural consultancy Celeres said in a weekly report. Celeres said in the report issued Monday that Brazil, which is the world's No. 2 soy producer after the U.S., saw sales unmoved at 85% compared to the week before. Sales were also down from 90% at the same time a year ago. Farmers in Mato Grosso, Brazil's No. 1 soy-producing state, sold 96% of their soy as of Friday, steady from the week before and a year ago, Celeres said. Mato Grosso's farmers were the first to start their harvest and took the opportunity to sell earlier than other states. For the upcoming 2010-11 crop, Brazil's farmers have also begun selling, and they often swap beans for other items such as seeds or fertilizers. Celeres said that 12% of the 2010-11 crop was sold as of Friday, from 11% in the previous week and 11% at the same time a year ago. Brazil finished harvesting the 2009-10 soy crop in May.
Brazil is expected to have produced a record 68.5 million metric tons of soybeans for the 2009-10 crop season, compared with 57 million tons the previous crop year.

Palm oil off 3-week lows, ringgit weighs
KUALA LUMPUR, Aug 23 (Reuters) - Malaysian crude palm oil futures ended 0.6 percent higher on Monday after touching fresh three-week lows earlier in the session over concerns that a stronger ringgit will hurt refiner margins.
Traders are on the lookout for new cues after palm oil futures last week notched their biggest weekly fall since  October as traders took profits from a recent weather-induced rally in agriculture markets as well as lower palm oil exports.
"The market was oversold so there's a bit of retracement, but the trading range is between 2,500 and 2,600 ringgit," said a trader with a foreign brokerage in Kuala Lumpur.

Argentine soy farmers fear curbs on herbicide use
BUENOS AIRES, Aug 20 (Reuters) - Lawmakers in leading soy-growing provinces in Argentina are considering proposals to limit the use of the herbicide glyphosate, worrying farmers but drawing praise from environmental activists.
The lower house of the provincial Congress of Santa Fe, the No. 2 soy province, has approved a bill that would limit glyphosate spraying close to urban areas. In Buenos Aires, the No. 3 soy province, a local senator has presented a proposal to ban the herbicide by 2019.