Thursday, August 26, 2010

20100826 1758 FKLI EOD Daily Chart Study.

FKLI closed : 1409.5, changed : +16 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : resumed rising, buyer returned .
Support : 1405, 1395, 1385, 1375 level.
Resistant : 1425, 1445, 1470 level.
Comment :
Rallied again FKLI closed boldly at the high of the day in ultra high volume changed hand as buyer last hour pushed market to record another new year high. Daily chart formed a wide range up bar candle resumed uptrend movement after 2 days of correction with the outlook resume 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.

20100826 1426 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1399, changed : +5.5 points, volume : high.
Bollinger band reading : side way range bound little downside biased.
MACD Histrogram : recovering, both buyer and seller doing rollover.
Support : 1395, 1385, 1375 level.
Resistant : 1405, 1425, 1445 level.
Comment :
Traded range bound FKLI closed first session higher in improved volume transaction mostly consist of rollover to forward month activities. Hourly chart wise, market recovered upward after penetrated below lower Bollinger band level with the reading suggesting a side way range bound little downside biased market development.

20100826 1424 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2496, changed : +10 points, volume : low.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : getting higher, seller taking profit.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2520, 2550 level.
Comment :
Tight range quiet trading volume FCPO recovered slightly having pullback correction after 2 days significant dropped. Hourly chart formed few doji bars candle traded side ways after price touched lower Bollinger band yesterday with the reading suggesting a correction range bound downside biased market. Mean while, Indonesia just announced a raised in export tax to 6% for the month of September compare to 3% for August.

20100826 0959 Global Economics News.

Germany: Business confidence unexpectedly rose to a three year high in August . The Munich-based Ifo institute said its business climate index, based on a survey of 7,000 executives, increased to 106.7 from 106.2 in July. That's the fourth straight monthly increase and the highest level since June 2007. (Source: Bloomberg)

Singapore: Bond sales are accelerating as companies on an island vying for the title of world's fastest growing economy exploit the lowest funding costs in at least two decades to finance expansion. Temasek Holdings Pte. and CapitaLand Ltd. led borrowers that raised USD14.1b this year, topping the record USD13.2b of notes sold in 2001, according to data compiled by Bloomberg. (Source: Bloomberg)

Thailand: Raises interest rate, signals more increases
Thailand’s central bank raised its benchmark interest rate and signaled further increases after the economy overcame political unrest to grow faster than estimated last quarter. The baht strengthened and stocks fell. The Bank of Thailand increased the one-day bond repurchase rate by a quarter of a percentage point to 1.75% after its first increase in almost two years last month, it said in Bangkok. The decision was predicted by 11 out of 12 economists surveyed by Bloomberg News. (Bloomberg)
Japan: Export growth slows as global demand wanes
Japan’s export growth slowed for a fifth month in July, adding to risks in an economy under threat from the yen’s surge to a 15-year high against the dollar. Overseas shipments advanced 23.5% in July from a year earlier, less than June’s 27.7% gain, the Finance Ministry said in Tokyo. The median estimate of 18 economists surveyed by Bloomberg News was for a 21.8% increase. From a month earlier, exports fell 1.4%, the third monthly drop. (Bloomberg)

Korea: Bank of Korea governor says ’vigilance’ needed on inflation
South Korea should be alert to inflation risks even as the global recovery is set to be slower than expected, central bank Governor Kim Choong Soo said. Asia’s fourth-largest economy needs “vigilance against the possibility of the awakening of inflation expectations” with its consumer price index projected to accelerate, Kim said in a speech in New York hosted by the Korea Society on 25 Aug. A “double-dip recession” or recurrence of the global financial crisis is unlikely, though the pace of the recovery in major economies such as the US will be “slower than expected,” Kim said. (Bloomberg)

India: RBI says curbing inflation is its top priority
India’s central bank said controlling inflation is its top priority, a stance that may fuel speculation it will raise interest rates for the fifth time since mid-March. “Inflation containment may have to receive precedence over the other policy objectives,” the Reserve Bank of India said in its annual report for the year ended 30 June. “Inflation has emerged as a major concern.” India’s 10-year government bond yields climbed to the highest in more than three months, stoked by inflation concerns. (Bloomberg)
EU: UK budget ‘regressive’, hits poor hardest, IFS says
The UK coalition government’s assertion that its budget cuts will hit the richest households more than the poorest is challenged by a research of Institute for Fiscal Studies. An analysis of all benefit cuts announced in the 22 June budget shows the measures to be “regressive,” with the poorest households hit hardest, the IFS said. “The distributional effect of all tax and benefit reforms due to be implemented by 2014-15 is clearly regressive within the bottom nine decile groups of the income distribution when losses are expressed as a percentage of net income,” the London-based IFS said in a report. (Bloomberg)

US: Durables, housing signal recession risk
Orders for durable goods in the US increased less than forecast in July and sales of new homes unexpectedly dropped, increasing the risk of a renewed recession in the world’s largest economy. Bookings for goods made to last at least three years rose 0.3%, figures from the Commerce Department showed in Washington. Excluding transportation equipment, demand fell by the most in more than a year. Purchases of new dwellings fell 12% to an annual pace of 276,000, the weakest since data began in 1963, figures from the same agency showed. The reports indicate capital spending, one of the few bright spots in a weakening economic recovery, is slowing as the second half begins, while a lack of jobs is crippling housing. (Bloomberg)

20100826 0958 Malaysia Corporate News.

Axis REIT: Eyes RM200m commercial assets. Axis REIT Managers Bhd (ARMB) plans to buy a cluster of commercial assets worth more than RM200m in Petaling Jaya and Shah Alam to expand its portfolio. CEO Stewart LaBrooy said it will place out about 20% of its current fund size to raise up to RM160m for the acquisitions. Its latest deal is to buy Tesco hypermarket in Johor, Axis Technology Centre in Petaling Jaya and Axis PDI Centre in Klang worth RM200m. (Source: Business Times)

Daya Materials: Signs JV with Singapore parties to tap O&G sector. Daya Materials Bhd is teaming up with 2 Singapore-registered companies to venture into the provision of services and equipment for companies involved in exploration in the oil and gas (O&G) industry. Its unit, OCI Energy Sdn Bhd, yesterday signed a JV agreement with Sheffield Offshore Services Pte Ltd and Ascent Offshore (Singapore) Pte Ltd. The estimated initial capital contribution by OCI for the project was RM51,000 for a 51% stake while the remaining 49% would be held by Ascent. (Source: The Edge Financial Daily)

IJM: Eyes another RM2b in its order book. IJM Corporation Bhd which already has an order book of RM3.6b is looking to add another RM2b worth of jobs into its stable in the current financial year ending March 31, 2011. (Source: The Edge Financial Daily)

MMC and Zelan: To jointly bid for 10MP infrastructure projects. MMC Corporation Bhd has entered into a JV agreement with Zelan Bhd to bid for infrastructure projects under the 10th Malaysia Plan (10MP). The JV is named MMC Zelan Sdn Bhd, with MMC having a 60% stake and Zelan the remaining 40%. (Source: The Edge Financial Daily)

Technology: Seagate unveils world's first 3 terabyte external drive. Seagate announced Tuesday the world's 1st 3 terabyte (TB) external desktop drive. With 3TB of capacity, people can store up to 120 HD movies, 1,500 video games, thousands of photos or countless hours of digital music. (Source: The Edge Financial Daily)

Yinson: Going big into marine haulage. Logistic operator Yinson Holdings Bhd is going big into marine haulage business by investing RM70m to buy a platform supply vessel (PSV) this month through its subsidiary Yinson Marine Service Sdn Bhd (YMS). The Singapore-made PSV will be leased to PetroVietnam Technical Services Corp, a subsidiary of state-owned Vietnam Oil and Gas Group. (Source: Business Times)

MMC: Harbour construction tender at Jazan City aborted
MMC Corporation said yesterday the tender for the harbor construction at Jazan Economic City (JEC) in Saudi Arabia has been aborted due to impending change to the Jazan Oil Refinery’s location as requested by Saudi Aramco. “The port location will likewise be changed accordingly. Details are being studied to finalize the changes,” it said. In a filing with Bursa Malaysia Securities yesterday, MMC said the discussions leading to a decision for the power plant to be developed by Saudi Electricity Company and the desalination plant by Saline Water Conversion Corporation of Saudi Arabia were ongoing. (Financial Daily)

Cocoaland finds ‘sweet’ partner in F&N
In yet another move that signals more mergers & acquisitions in the food industry, Fraser and Neave Holdings (F&N) will take up a 23.08% stake in Cocoaland Holdings, sources say. Cocoaland is Southeast Asia’s largest producer of fruit gummies and one of Malaysia’s leading manufacturers of snacks and chocolate products. The company produces Koko Jelly, Rotong, Mum’s Bake and Lot 100 gummies, as well as Ribena pastilles for GlaxoSmithKline and Sugus gummies for the Wrigley company. (Financial Daily)

UDA in talks with Pudu JV partners
UDA Holdings is talking to a few joint-venture partners to develop the former Pudu jail site and the 22-acre land next to it, but UDA will remain the sole master developer. The project is estimated to cost about RM5bn. UDA chairman Datuk Nur Jazlan Mohamed said: “We will try to keep it at RM5bn.” (StarBiz)

Axiata to pay maiden dividend in fiscal 2011
Axiata Group, which owns Malaysia’s second-largest telecommunication company, plans to pay its maiden dividend in 2011 even as growth may slow down in the second-half this year. For a start, Axiata announced a policy to return at least 30% of its net profit as dividends to shareholders with the payout ratio to be increased progressively over time, said Axiata president and group CEO Datuk Seri Jamaludin Ibrahim at a press conference in Kuala Lumpur. (Malaysian Reserve)

Project rollout too slow, say builders
"In the last four quarters, the total value of new construction projects awarded has declined," newly-elected MBAM president Kwan Foh Kwai said. Bank Negara Malaysia's statistics indicate that the construction sector registered 8.7% growth in the first quarter of this year, but it slowed to 4.1% in the second. "If we're not vigilant, the construction sector's growth will continue to slow down, stagnate or, worse, shrink like in 2004, 2005 and 2006," he said. (BT)

20100826 0948 Global Market News.

Asia stocks up; yen eases, eyes on govt, BOJ
TOKYO, Aug 26 (Reuters) - Asian stocks rose as investors hunted for bargains among recently beaten-down shares, while the yen pulled further away from 15-year highs as investors wondered whether Japanese officials would take fresh steps to curb the currency's strength and spur economic growth.
"There are increasing signs of a slowing global economy, and on top of that you have Japan's situation where it really isn't providing policy to deal with its economic issues," said Kenichi Hirano, operating officer at Tachibana Securities. 

OIL: Crude rises second day on short-covering
SINGAPORE, Aug 26 (Reuters) - U.S. crude rose for a second day on Thursday as bargain-hunting and short-covering in equities spread to the oil market, where investors ignored reports showing slower U.S. economic activity and rising record-high inventories to take advantage of prices near 11-week lows.
Tropical Depression Seven in the far eastern Atlantic Ocean strengthened into Tropical Storm Earl late Wednesday, the U.S. National Hurricane Center said in its latest advisory.

COMMODITY MARKETS: Weak data hits markets; oil, copper bounce late
NEW YORK, Aug 25 (Reuters) - Another round of gloomy U.S. economic data sank most commodity markets on Wednesday as investors fretted about the demand outlook for raw materials, although oil and copper repaired steep early losses by the end, rebounding with Wall Street.
"They (data) are obviously lousy. It's very disappointing. The strength of second quarter GDP was business spending. It looks like businesses are pulling back from this commitment in a very big way in July. It's an indication of how sentiment is deteriorating," said Christopher Low, chief economist ay FTN Financial in New York.

GLOBAL MARKETS: US stocks rise on bargain hunting; yen eases
NEW YORK, Aug 25 (Reuters) - U.S. stocks staged a comeback on bargain hunting after suffering steep early losses on disappointing economic data on Wednesday, while the yen pulled back from a 15-year high on mounting speculation Japanese authorities may intervene to stem the currency's rise.
"Overall, this is still a very careful market," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey. "Until we see a package of decidedly positive data, this market is going to be vulnerable." 

Aug. 25 (Bloomberg) -- Nouriel Roubini, the New York University economist who predicted the global financial crisis, said U.S. growth will be “well below” 1 percent in the third quarter and put the odds of a renewed recession at 40 percent. Roubini, chairman of Roubini Global Economics LLC, said his forecast assumes the government will lower its estimate for growth in the second quarter to an annual rate of 1.2 percent “at best.” “All the growth tailwinds of the first half of the year become headwinds in the second half,” he said in an e-mail message, including the government’s $814-billion stimulus plan, hiring for the census, and incentives such the cash-for-clunkers program and tax credits for first-time home buyers.

US home sales at 15-year lows, stoke recovery fears
WASHINGTON, Aug 24 (Reuters) - Sales of previously owned U.S. homes took a record plunge in July to their slowest pace in 15 years, underlining the housing market's struggle to find its footing without government aid. Tuesday's report from the National Association of Realtors, which was much worse than market expectations, was the latest data that indicated economic activity continued to slacken into the third quarter.

FOREX-Yen dips, rally pauses on intervention jitters
LONDON, Aug 25 (Reuters) - The yen pulled back from 15-year highs against the dollar and a nine-year peak versus the euro on Wednesday on speculation Japanese authorities may take action to stem the currency's rise. "The yen has come quite far quite quickly ... so we're seeing some consolidation," said Daragh Maher, currency strategist at Credit Agricole CIB.

Yen dips from 15-yr high; stocks off for 5th day
LONDON, Aug 25 (Reuters) - World stocks fell for a fifth day as worries about a double dip recession persisted, while the yen eased from a 15-year high on speculation that Tokyo was considering intervening to weaken its currency.
"The Ireland downgrade was not too much of a surprise but it is still weighing on sentiment," said Joshua Raymond, market strategist at City Index in London.

20100826 0947 Soy Oil & Palm Oil Related News.

Soy product futures ended mixed, with meal/oil spreading boosting soymeal futures while weighing on soyoil futures. December soyoil settled 0.34 cents, or 0.8%, lower at 39.72 cents per pound. Soymeal ended $2.30, or 0.8%, higher at $292.20 per short ton.(Source: CME)

IOI Chairman: Malaysia 2010 CPO Output May Fall Short Of 17.8M Tons(Source: CME)
Crude palm oil production in Malaysia may fall short of the national target of 17.8 million metric tons in 2010 as the La Nina weather event may slow transportation and disrupt harvesting cycles, Lee Shin Cheng, chairman at IOI Corp., Malaysia's second-largest listed palm oil producer by volume, said Wednesday. Malaysia's commodities ministry in July lowered its palm production forecast to 17.8 million tons from 18.1 million tons, as adverse weather conditions hurt yields. "Production will be adversely affected if the heavier-than-expected rainfall sets in during the fourth quarter," IOI's Lee told Dow Jones Newswires. He didn't give a price forecast. Palm oil usually reaches peak production during the September-November period and coincides with the monsoon season in the country. La Nina episodes are usually associated with above-normal rainfall. Though the presence of a La Nina hampers harvesting activity, heavy rainfall augurs well for future palm yields. "It may be too early to predict but with good rainfall in 2010, production in 2011 is likely to recover," Lee said.

July US Census Soy Crush Seen At 128.5M Bushels (Source: CME)
The U.S. Census Bureau is expected to estimate the July soybean crush at 128.5 million bushels, a modest decline from the prior month, owing to tight availability of supplies for crushing, according to a survey of industry analysts. The Census Bureau's crush report is scheduled for release Thursday at 8 a.m. EDT. In an Aug. 16 report, the National Oilseed Processors Association said the July crush was 124.181 million bushels, down 2.06 million bushels from June. The NOPA report includes figures only from member processors. The daily soybean crush rate slowed in July because seasonal down time in the industry and tight soybean supplies for crushing translated into a smaller month-over-month crush pace, analysts said. Supplies of soybeans from the last harvest dwindled because of strong demand and a lack of selling by farmers. July soymeal stocks are seen increasing to 350,800 short tons in the Census Bureau estimate, up from the 334,921 tons reported for June.
The slowdown in the U.S. soymeal export program is seen building supplies, industry participants said. Soyoil stocks are seen declining to 3.528 billion pounds in the report, down from 3.555 billion the previous month. In the NOPA report, soyoil stocks saw a 9.886 million pound decrease in stocks. A lower processing pace in July and a pickup in soyoil exports led to a drawdown of soyoil supplies, said Dan Basse, president of AgResource Co. in Chicago.

CHICAGO, Aug 24 (Reuters) - Soyoil prices have lagged those of the other major global edible oils for much of 2010, frustrating managed money traders who are currently sitting on their largest long position in that commodity for more than three years. But an improving technical pattern coupled with the fact that soyoil prices have recently established their widest discount to palm oil in more than a year suggests that soy oil futures may be primed for a period of strength in the weeks ahead.

Weak demand drags palm oil to 4-week lows
KUALA LUMPUR, Aug 25 (Reuters) - Malaysian crude palm oil futures dropped to one-month lows as slower overseas demand and concerns over the pace of global economic recovery weakened sentiment.
"Equities are going through a patch of uncertainty and the market is depressed at this level," said a trader with a Kuala Lumpur-based foreign brokerage.

Canadian canola crop outlook improving- Oil World
HAMBURG, Aug 24 (Reuters) - The outlook for Canada's canola (rapeseed) crop is improving but the harvest will still be down on the year, Hamburg-based oilseeds analysts Oil World said on Tuesday. Oil World has raised its forecast of Canada's 2010/11 rapeseed crop for harvesting in summer 2010 to 10.5 million tonnes, up by 0.5 million tonnes from its July estimate but still down from the 11.8 million

US corn, soybean ratings seen down on lack of rain
CHICAGO, Aug 23 (Reuters) - A lack of rain in some areas of the U.S. Midwest and the advancing maturity of the corn and soybean crops should result in a slight drop in weekly crop condition ratings, according to a Reuters poll of 10 analysts. On average, the analysts expected the U.S. Agriculture Department's weekly Crop Progress Report to show 68 percent of the corn crop rated in good to excellent condition, down 1 point from 69 percent last week.