Monday, August 30, 2010

20100830 1823 FCPO EOD Daily Chart Study.

FCPO closed : 2570, changed : +28 points, volume : lower.
Bollinger band reading : correction side way range bound.
MACD Histrogram : recovering, seller closing position.
Support : 2570, 2550, 2520 level.
Resistant : 2600, 2620, 2650 level.
Comment :
FCPO ended higher in decreasing volume changed hand after opened above and tested resistant turned support and at 2550 and closed right at 2570 level. Daily chart formed a longer lower part shadow doji bar candle in between lower and middle Bollinger band with the outlook turned into a side way range bound market 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.

20100830 1822 FKLI EOD Daily Chart Study.

FKLI closed : 1424, changed : +10 points, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : rising higher, buyer riding the bull.
Support : 1405, 1395, 1385 level.
Resistant : 1425, 1445, 1470 level.
Comment :
FKLI rise for the 3rd consecutive day with lesser volume traded break new high again after touched resistant level and closed little below it. Another wide range up bar candle formed on daily chart along with the turning upward upper Bollinger band. Reading remained unchanged with an upside biased market development.
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.

20100830 1321 FKLI Mid Day Hourly Chart Study.

FKLI closed(Sep 2010) : 1425.5, changed : +13 points, volume : low.
Bollinger band reading : upside biased.
MACD Histrogram : weakening, mild profit taking by buyer.
Support : 1425, 1405, 1395 level.
Resistant : 1445, 1470, 1500 level.
Comment :
FKLI rallied again shooting up 13 points higher for the contract month of Sep 2010 in slower volume traded in sync with regional market positive development. Hourly chart shows market opened little higher and climbed upward breaking higher resistant level with the outlook still showing a upside biased market reading.

20100830 1319 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2580, changed : +38 points, volume : low.
Bollinger band reading : upnside biased.
MACD Histrogram : reversed downward, buyer testing market as seller retreat.
Support : 2570, 2550, 2520 level.
Resistant : 2600, 2620, 2650 level.
Comment :
Continue firmer soy oil and crude oil futures prices leaded FCPO to opened gap higher and traded side ways in tight 10 points range and quiet volume transaction. Hourly chart shows market opened above upper Bollinger band and move side ways with the reading call for a upside biased market development.

20100830 1010 Global Economic News.

India: Economy probably expanded at fastest pace since 2007
India’s economy probably grew at the fastest pace in 2 1/2 years, adding pressure on the central bank to raise interest rates even as the global recovery falters. GDP rose 8.8% in the three months ended 30 June from a year earlier, according to the median of 27 forecasts in a Bloomberg News survey. (Bloomberg)

Japan: BOJ holds emergency meeting as yen threatens growth
The Bank of Japan will hold an emergency board meeting today as the yen’s surge to 15-year high forces policy makers to find ways to support the nation’s slowing expansion. The yen slipped after the announcement backed speculation the BOJ will step up injections of liquidity to sustain a weakening recovery. The bank’s meeting follows signs that its US counterpart is also open to further monetary stimulus, with Federal Reserve Chairman Ben S. Bernanke saying three days ago that he has the tools to prevent another recession.(Bloomberg)

South Korea: Ease lending rules, extend home buyer tax breaks
South Korea will ease mortgage lending rules and extend tax breaks to encourage buyers back to the property market after home sales slumped to the lowest level in almost a year and a half. Banks will be allowed to ease restrictions on mortgage loans for first-home buyers and owners of one residence until the end of March. The waiver for taxes on home sales will be extended by two years until the end of 2012, the government said. (Bloomberg)

EU: Prods China for faster yuan rise
The European Union thinks China has made only limited progress in allowing its yuan currency to move more rapidly, and swifter action would help safeguard a fragile economic recovery, according to draft G-20 document. China announced in June that it would loosen its grip on the tightly managed yuan, which the US and Europe say Beijing keeps artificially low to support exports. (Financial Daily)

UK: Economy grows most since 2001 on construction
The UK economy expanded faster than previously estimated in the second quarter in the biggest growth spurt since 2001 as companies rebuilt stocks and construction work surged. GDP rose 1.2% from the previous three months, the Office for National Statistics said in London. That was higher than the 1.1% initial estimate, which was the median forecast of 25 economists in a Bloomberg News survey. On the year, the economy expanded 1.7%. (Bloomberg)

US: 2-year yields rise most since April after Bernanke speech
Treasuries dropped, pushing two-year note yields up the most since April, after remarks from Federal Reserve Chairman Ben S. Bernanke tempered speculation that the central bank will step up debt buying. The yield on 10- year notes increased this week for the first time in five weeks as Bernanke said at a conference in Wyoming that the central bank will provide additional economic stimulus as needed. (Bloomberg)

20100830 1009 Malaysia Corporate News.

Wilmar buys rest of Natoleo shares
PPB Group Bhd said its 18.4% associate, Wilmar International Ltd, via wholly-owned unit PGEO Group SB, has signed an agreement last Thursday to acquire the remaining 8.62% in Natural Oleochemicals SB (Natoleo). It will buy the stake from National Land Finance Cooperative Society Ltd for RM42.45m cash or RM2.41 per share. Last month, PGEO signed a deal to buy 91.38% in Natoleo from Kulim (M) Bhd for RM450m, or RM2.41 per share. (StarBiz)

MMC’s unit preps RM1.5bn Islamic note
MMC Corp Bhd’s 70%-owned subsidiary Pelabuhan Tanjung Pelepas SB, has established an Islamic medium term note programme of up to RM1.5bn. Proceeds from the from the 10-year Syariah compliant note will be used to finance the development of the port of Tanjung Pelepas and as working capital. The first issuance under the programme is expected to be made in September this year. (Financial Daily)

Sarawak Energy may again seek lower tariffs
Sarawak Energy Bhd, the state utility firm that will buy power from the Bakun dam, is expected to put in a fresh proposal for lower tariffs during the ramp-up period between 2011 and 2015, sources said. Bearing in mind that power usage in Sarawak is likely to take off only in 2015, it is asking for lower tariffs, probably to mitigate the situation while trying to cement some of the investment deals from heavy users such as aluminium smelters. The smelters are said to be willing to buy power at 12 to 13 sen per kilowatt-hour (KwH). Sarawak Energy is offering six to seven sen per KwH while Sarawak Hidro had asked for nine sen per KwH. Industry observers indicated that even if Sarawak Energy were to buy from Bakun at nine sen per KwH, pay an additional two sen per KwH for transmission costs, it can still earn one or two sen more. (StarBiz)

Tanjong listing on LSE cancelled
Tanjong Plc’s standard listing on the London Stock Exchange has been cancelled with effect from 8.00am London time yesterday. Following the cancellation, Tanjong shares will no longer be traded on the exchange. (StarBiz)

Maxis awards contract to Huawei
Maxis Bhd has appointed Huawei as the exclusive supplier for its Next Generation High-Speed Internet network. The job will also include the building and managing of a full-service Fibre To The X network using GPON technologies. In a joint statement on Friday, the companies said this would offer Maxis subscribers fresh fixedmobile convergence (FMC) services, which included high-speed Internet services after its completion within the year. “An agreement was inked on 19 Aug to formalise the partnership,” it said. The statement said under the agreement, Huawei would offer an end-to-end turnkey services package that included active and passive equipment, holistic optical distribution network designs, and construction management for the construction of the Next Generation High-Speed Internet network. “Upon completion of the project, a network of homes in Klang Valley, Penang and Johor Bahru will be connected on a last-mile basis, using fibre-to-the-home (FTTH) wired technologies,” it said. (StarBiz) 

20100830 1005 Global Market News.

Yen pares losses as BOJ disappoints,stocks up
HONG KONG, Aug 30 (Reuters) - The yen trimmed losses and Japanese shares gave up some of their strong early gains after the Bank of Japan made only minor tweaks in policy, disappointing markets which had been looking for more aggressive action against deflation.
"If the BOJ really wanted to do something about the strength of the yen, they should have done something about deflationary pressures. The current policy of doing nothing simply isn't working," said Robert Rennie, currency strategist at Westpac in Sydney. 

OIL: Crude gains 4th day on U.S. economy, storms
SINGAPORE, Aug 30 (Reuters) - Crude rose for a fourth day on Monday on sustained momentum from Federal Reserve Chairman Ben Bernanke's speech and increased hurricane activity in the Atlantic Ocean, with storms expected to follow paths closer to the United States.
Along with oil, corn, coffee, base metals like copper and many other commodities posted sharp gains on Friday, lifted by a downward revision to U.S. growth that was not as severe as anticipated.

COMMODITY MARKETS: Bernanke's reassuring talk boosts oil, copper, corn
NEW YORK, Aug 27 (Reuters) - Oil, corn, coffee and base metals like copper, along with many other commodities, posted sharp gains on Friday, lifted by a revision to U.S. growth that was not as severe as anticipated and following comments by Fed chief Bernanke that calmed fears of double-dip recession.
"Especially with the good GDP numbers today, Bernanke and other Fed members are singing to the same tune that yes, we are going through a soft patch, but a double dip is not likely," said Peter Cardillo, chief market economist at Avalon Partners in New York.

GLOBAL MARKETS: Bargain hunters boost shares, euro flat
NEW YORK, Aug 27 (Reuters) - Global stocks rose on Friday, as bargain hunters erased early losses sparked by downbeat remarks on the economy from Federal Reserve Chairman Ben Bernanke and a warning of lower revenues by bellwether Intel.
"We're sitting on important support and in thin markets you don't want to be leaning too far in one direction coming into a very low volume week," said Richard Ross, global technical strategist at Auerbach Grayson in New York.

Asia Dry Bulk-Capesize rates to fall on weak iron ore demand
SINGAPORE, Aug 27 (Reuters) - Freight rates for large dry bulk carriers on key Asian routes are expected to decline next week on concerns Chinese demand for iron ore will slow, shipbrokers said on Friday.
In the panamax freight market, rates are seen trading in a tight range as traders balance strong Chinese demand for U.S. soybean shipments and the large surplus of available tonnage.

FOREX-Yen dips; market wary of possible Japan action
LONDON, Aug 27 (Reuters) - The yen dipped against the dollar and the euro on Friday as a nervous market trimmed long positions and Japan's prime minister reiterated a threat to take steps to stem the currency's steady rise.
"I don't think we'll see intervention around current levels unless we get a disorderly move where dollar/yen falls sharply, say by 3 yen, during one day," said Gavin Friend, currency strategist at nabCapital.
Stocks hold above 7-wk low before Bernanke

LONDON, Aug 27 (Reuters) - World stocks hovered above a recent seven-week low on Friday while oil slipped as investors braced for an update on the U.S. economic outlook from the chairman of the Federal Reserve, following a run of weak data.
The yen slipped against the dollar as speculation rose that Tokyo might take steps to stem export-damaging strength in the Japanese currency.

20100830 1004 Soy Oil & Palm Oil Related News.

Soy product futures ended higher across the board, with soyoil recouping some product share value versus soymeal on spreads. A bounce in crude oil futures provided support to soyoil, analysts said. Soymeal ended higher, garnering strength from firmer soybean futures. December soyoil settled 0.72 cent or 1.8% higher at 40.80 cents per pound. December soymeal ended $1.20 or 0.4% higher at $299.50 per short ton. (Source: CME)

Indonesia 2010 CPO Output May Fall 10%-15% -Association (Source: CME)
Crude palm oil output in Indonesia, the world's largest producer, may drop 10%-15% this year as abnormal weather patterns sap yields and heavy rainfall disrupts harvesting, a senior industry official said Friday. Output may fall to between 18 million and 19 million metric tons from 20.6 million tons last year, Indonesian Palm Oil Association Executive Director Fadhil Hasan said by phone. A decrease in Indonesian CPO output would likely boost prices of the commodity, as bouts of bad weather in key oilseed-growing regions including Russia, Ukraine and parts of Europe have also crimped global supply of oilseeds such as rapeseed.
Hasan said palm oil exports rose 5.3% last month to 1.19 million tons, with the bulk of shipments to India, China and Bangladesh. Indonesia exported 1.13 million tons of palm oil in June. Rupiah-denominated October CPO futures on the Indonesia Commodity and Derivative Exchange were 0.5% higher at IDR7,445 a kilogram. Dorab Mistry, an influential vegetable oils analyst, said Thursday evening that Indonesian CPO production will rise at a slower pace this year because expansion of plantation lands in the country has slowed. He revised his forecast for growth to 500,000 tons from 1 million tons for 2010. Indonesia produced 20.6 million tons of CPO in 2009, according to the Indonesian Palm Oil Association.
Mistry reiterated his forecast for Malaysian crude palm oil output this year, saying that an El Nino-related dry spell late last year will likely cut production by 2.3% to around 17.2 million tons, as the two-month dry spell caused tree stress and lowered crop yields. Indonesia and Malaysia combined account for 85% of the world's palm oil production.

New Britain Palm Oil Sees Prices Staying Buoyant (Source: CME)
Palm oil producer New Britain Palm Oil Ltd. Friday reported a 13% fall in first-half profit, skewed by changes in the accounting value of its trees, and said it expects prices for crude palm oil to remain buoyant due to short-term jitters about food supplies and rising consumption in the long term. The company, which operates in Papua New Guinea, said its average selling price during the first six months of the year was $792 a metric ton, compared with $730 a year earlier. However, prices recently spiked to $900 a ton due to concerns about food shortages caused by poor wheat harvests in Russia and Ukraine. There have also been concerns about supply shortages caused by production problems in Indonesia, a major producer of palm oil.
"Palm oil is in a very strong position," said New Britain Palm Oil Executive Director Alan Chaytor. He told Dow Jones Newswires demand for palm oil in the short term is buoyant and the medium-term outlook appears firm. He added longer-term demand for the commodity, which is used in many food products, is expected to keep rising as food consumption increases.

Palm up on supply squeeze, bullish outlook
KUALA LUMPUR, Aug 27 (Reuters) - Malaysian crude palm oil futures rose 0.5 percent on Friday on fears of a possible supply squeeze ahead of a Muslim festival and an upbeat price forecast by a top industry analyst.
Mainly Muslim Indonesia and Malaysia, the world's top palm oil producers, celebrate Eid Al-Fitr in mid-September after a month of fasting, which typically sees estate workers and millers take extended holidays.

Indonesian CPO futures may be used as benchmark -regulator
JAKARTA, Aug 27 (Reuters) - Indonesia's trade ministry may use a new palm oil futures contract traded on a local exchange as one of the benchmarks to calculate the monthly export tax applied on the commodity, a regulatory official said on Friday.
The Indonesia Commodity & Derivative Exchange (ICDX) launched the crude palm oil futures contract in May, in a bid to create a local price benchmark to rival Malaysia's.

India starts soymeal exports early on crop prospects
SINGAPORE, Aug 27 (Reuters) - India kicked off soybean meal marketing early this year by selling 12,000 tonnes to Thailand, with competitive prices and prospects of bumper output making more such deals likely, traders said.
India, Asia's top soymeal exporter, may corner a bigger share of the market in 2011, pricing cargoes at competitive rates which pose a direct challenge to exports from South America and the United States.

Europe, Ramadan boost Indonesia's July palm exports
JAKARTA, Aug 27 (Reuters) - Indonesia's palm oil exports in July rose 9 percent from a year ago, driven by growth in orders from Europe after a drought sapped oilseed crops across the Black Sea region and Asian food demand rose ahead of a key religious observance.
The Indonesian Palm Oil Association (GAPKI) said on Thurday that rising demand from Bangladesh, the European Union and the U.S boosted palm oil exports from the world's No.1 producer to 1.19 million tonnes in July.

India in 1st new-crop soymeal deal, sells 12,000 T-traders
SINGAPORE, Aug 27 (Reuters) - India has signed its first new-crop soybean meal export deal, selling 12,000 tonnes to Thailand this week for shipment in November and December, traders said on Friday.
The cargo was sold at $412 a tonne, including cost and freight. The harvest for the new crop will begin in October.

SINGAPORE, Aug 27 (Reuters) - Diversified commodities firm Olam International  aims to boost production volume by 15-20 percent annually as it expands into upstream sugar and palm oil ventures, its chief executive said on Friday.
Group managing director and CEO Sunny Verghese said Olam was eyeing 10,000 hectares of sugar plantations in Indonesia, Brazil or Africa to set up a crushing plant with a yearly capacity of at least 2 million tonnes.