Thursday, September 2, 2010

20100902 1910 FCPO EOD Daily Chart Study.

FCPO closed : 2542, changed : +7 points, volume : lower.
Bollinger band reading : range bound downside biased.
MACD Histrogram : recovering, buyer and seller testing market.
Support : 2520, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
19 points range market FKLI traded range bound the whole day registering minor gained in slower volume transaction. Daily chart shows a small body up doji bar candle with the reading suggesting a range bound downside 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.

20100902 1909 FKLI EOD Daily Chart Study.

FKLI closed : 1437, changed : +1.5 point, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : rising higher, buyer ruled.
Support : 1425, 1405, 1395 level.
Resistant : 1445, 1458, 1470 level.
Comment :
Marginal gained FKLI opened and surged higher before profit taking activities pressed price downward to closed off the high of the day with improving volume transaction. Daily chart wise, market formed a down doji bar candle with the reading still calling for a upside biased market with possible pullback correction to take place soon.
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.

20100902 1329 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2533, changed : -2 points, volume : low.
Bollinger band reading : range bound little downside biased.
MACD Histrogram : recovering, both buyer and seller testing market.
Support : 2520, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
Thin trading volume FCPO closed marginally lower in tight 18 points range market after opened unchanged and traded range bound. Hourly chart wise, market opened and traded along the middle Bollinger band level with the reading suggesting a range bound little downside biased reading.

20100902 1111 Global Economic News.

Philippine: 2011 deficit may narrow as economy accelerates
The Philippines may narrow its budget deficit next year to the smallest since 2008 as economic growth accelerates, Finance Secretary Cesar Purisima said. The 2011 shortfall may shrink to as little as 226 billion pesos, or 2.5% of gross domestic product if the economy expands 7%, Purisima told reporters in Manila. (Bloomberg)

India: PMI, exports point to slower growth
India's manufacturing growth eased in August as the pace of the new orders cooled following a slowdown in exports, underlining expectations that economic expansion has peaked this year. The HSBC Markit purchasing managers' index, based on surveys of 500 companies in India, fell to 57.25 in August from 57.6 in July. (Financial Daily)

South Korea: Trade, inflation signal resilience to global risks
 South Korea’s exports gained for the tenth straight month in August and consumer prices rose, signaling the economy’s resilience to global risks may prompt the central bank to boost borrowing costs. Overseas shipments increased 29.6% from a year earlier and the trade surplus will be USD32bn for 2010, up from a previous forecast of USD20bn, the Ministry of Knowledge Economy said in Gwacheon. (Bloomberg)

China: Manufacturing bounces back from low in stabilization sign
Manufacturing in China grew at a faster pace in August after the weakest performance since early 2009 in July, signaling that the economy’s slowdown is stabilizing. The purchasing managers’ index rose to 51.7 from 51.2, exceeding forecasts, a government-backed report showed. Seasonal factors might have had an effect because the index typically gains as factories restart following July maintenance. (Bloomberg)

Australia: GDP grows at fastest pace in 3 years
Australia's economy grew at the fastest pace in three years last quarter as households spent far more than expected while exports enjoyed an Asian-driven boom, reviving the risk of a further rise in interest rates. The Australian dollar jumped after the government data showed GDP climbed 1.2% in the second quarter compared with the first when it rose 0.7%. (Starbiz)

UK: Faces second recession on spending cuts, Hargreaves says
The UK will go back into recession if the government fully implements the spending cuts necessary for a sustained economic recovery, Hargreaves Lansdown Plc CEO Peter Hargreaves said. “The UK economy is in a really bad state,” he said, “If we are going to have the public sector we need, which is less than half the one we’ve got, then there are going to be an awful lot of people earning a lot less. I believe we haven’t had the worst of the recession yet.” (Bloomberg)

UK: Manufacturing expansion slows to nine-month low
UK manufacturing growth slowed to the weakest in nine months in August in a sign the economic recovery may be moderating. The pound dropped against the dollar. A gauge based on a survey of companies by Markit Economics and the Chartered Institute of Purchasing and Supply fell to 54.3 from a revised 56.9 in July. (Bloomberg)

US: Manufacturing expands at faster pace
Manufacturing in the US expanded at a faster pace than forecast in August as factories added workers and cranked up production. The Institute for Supply Management’s factory index rose to a three-month high of 56.3 from 55.5 in July, the Tempe, Arizona-based group said. Readings greater than 50 signal growth, and the figure was projected to drop to 52.8, according to the median forecast in a Bloomberg News survey. (Bloomberg)

U.S: MBA mortgage applications index increases for fifth week as record low borrowing costs lifted refinancing. The Mortgage Bankers Association's index rose 2.7% in the week ended Aug. 27. Refinancing climbed 2.8% to the highest level since May 2009, while purchases gained 1.8%. (Source: Bloomberg)

E.U: Manufacturing industry slowed in August and export demand fell to the lowest in seven months. A gauge of manufacturing in the 16 nation euro region declined to 55.1 from 56.7 in the previous month, London based Markit Economics said. (Source: Bloomberg)

Germany: Retail sales unexpectedly fell for a second month in July . Sales, adjusted for inflation and seasonal swings, declined 0.3% MoM from June, when they also dropped 0.3% MoM. (Source: Bloomberg)

Indonesia: August inflation rate climbed to the highest level in 16 months as electricity costs increased after the government raised power prices this quarter. Consumer prices rose 6.44% YoY, the Central Bureau of Statistics said in Jakarta. That compares with a 6.22% YoY gain in July reported earlier. (Source: Bloomberg)

Thailand: Inflation rate held above 3% for a ninth month in August , supporting the central bank's view that interest rates can rise further. An index of consumer prices rose 3.3% YoY last month after climbing 3.4% YoY in July, the Commerce Ministry said. (Source: Bloomberg)

Australia: August manufacturing growth slowed to the weakest pace in five months . The performance of manufacturing index fell 2.7 points to 51.7, the Australian Industry Group and PricewaterhouseCoopers said in a survey released in Canberra. A figure above 50 shows the industry is expanding. (Source: Bloomberg)

20100902 1110 Malaysia Corporate News.

BRDB: No privatisation proposal. Bandar Raya Development Bhd (BRDB) says it did not receive any proposal to privatise it. (Source: Business Times)

Iron: Vale expected to call for RM3b seaport tender. Brazil's Vale SA, the world's largest iron ore producer, plans to call for an international tender as early as November to help build a seaport in Teluk Rubiah, Perak, near the Straits of Malacca. Business Times understands that the value of the contract is slightly more than RM3b and construction is expected to take about 30 months. (Source: Business Times)

O&G: Petronas to acquire BP's interests in two companies for USD363m. Petronas will acquire BP's entire 15% and 60% interests in Ethylene Malaysia Sdn Bhd (EMSB) and Polyethylene Malaysia Sdn Bhd (PEMSB). In a statement, PETRONAS will pay USD363m in cash to BP, inclusive of a balance sheet adjustment of USD13m and the repayment of a shareholder loan of USD53m, under the terms of the agreement. (Source: The Star)

REIT: PKNS picks RM10b projects for REIT plan. Selangor State Development Corp (PKNS) has identified 16 high-profile projects worth RM10b for future injection into its real estate investment trust (REIT), its chief said. PKNS general manager Othman Omar said six of the projects have been confirmed. They are Datum Jelatek in Kuala Lumpur, PJ Elevated City, PJ Sentral Garden City and Kelana Sports City in Petaling Jaya, Selangor Science Park 2 in Sepang and the proposed Healthcare City. (Source: Business Times)

Sumatec: Bidding for RM500m worth of energy projects. Sumatec Resources Bhd, an engineering, procurement, construction and commissioning (EPCC) company mainly involved in the energy sector, is bidding for RM500m worth of projects locally and overseas. They are looking to diversify their business into green energy projects. (Source: Bernama)

TMC Life: Group MD resigns. TMC Life Sciences Bhd yesterday announced that Datuk Dr Colin Lee Soon Soo had resigned as group MD on August 31. Dr Lee and his brother recently sold all their shares in the fertility treatment specialist to Singaporean billionaire Peter Lim. (Source: Business Times) 

Vale expected to call for RM3bn seaport tender
Brazil's Vale SA plans to call for an international tender as early as November to help build a seaport in Teluk Rubiah, Perak, near the Straits of Malacca. The value of the contract is understood to be slightly more than RM3bn and its duration is about 30 months. Construction work is expected to start in the first quarter of next year. (BT)

Naim-Samsung engineering joint venture gets USD766m Sabah job
Naim Holdings announced today that Samsung-Naim, a joint venture between its subsidiary NCSB Engineering and Samsung Engineering, has received a contract worth USD766m from Petronas Carigali to provide services for the Sabah Oil and Gas Terminal project. The scope of work involves the engineering procurement, construction and commissioning of the project. (Bernama)

Petronas to acquire BP's interests in two companies for USD363m
Petronas will pay USD363m to acquire BP’s entire 15% and 60% interests respectively in Ethylene Malaysia SB (EMSB) and Polyethylene Malaysia SB (PEMSB). “Subject to certain conditions, both parties anticipate completing the transaction by the end of 2010,” the company said. (StarBiz)

SapuraCrest units win USD134m worth of contracts
SapuraCrest Petroleum has secured 2 contracts totaling USD134m, having received a letter of award for the deployment and usage of the T-6 drilling rig. The contract requires the deployment of the rig for a period of 28 months commencing from 21 Dec 2010. (StarBiz)

Sunway unit secures RM70m worth of jobs
Sunway Holdings’s wholly-owned unit Sunway Construction has secured 2 contracts worth RM70m from Putrajaya Holdings for works within the Federal Government administrative centre. The first contract was to undertake the roadworks, drainage, utilities and landscaping while the second contract was to build and commission a chilled water storage tank, plant building and other associated works for gas district cooling plant at Putrajaya. (StarBiz)

Aeon to bid for Carrefour ops in South East Asia
Aeon Co Ltd, Japan’s second largest retail group, will bid for the Thai, Malaysian and Singaporean operations of French retailer Carrefour, sources familiar with the matter said. The purchase would almost triple its outlets in the 3 South East Asian nations. Currently, Aeon operates 27 Malaysian stores and 11 outlets in Thailand. (StarBiz)

4 family takaful licences given out
BNM has given out 4 family takaful licences, instead of two as had been announced earlier. The central bank said the decision was driven by the favorable economic conditions since the initial announcement made on 27 April last year and the growth potential of the industry in the country as well as region. The new licences will see several banking groups collaborating with foreign insurance partners. (BT)

20100902 1104 Global Market News.

Asia stocks rise, US data soothes fears
TOKYO, Sept 2 (Reuters) - Asian stocks rose to a two-week high, with Japan's Nikkei briefly rising more than 2 percent, as strong U.S. manufacturing data further soothed worries about the global economy.
"It's too early to say worries about a double-dip recession in the economy have been wiped away just because China's PMI, Autralia's GDP and U.S. data weren't bad," said Masahiko Sato, an executive director at Nomura Securities' equity marketing department.

Oil slips as investors eye U.S. jobs reports
SINGAPORE, Sept 2 (Reuters) - Oil dipped as investors turned their attention to upcoming U.S. employment reports, following gains of almost 3 percent a day earlier after positive manufacturing data lifted spirits across markets.
"The market was just seeking optimism and this came from strong manufacturing data," said Serene Lim, a Singapore-based oil analyst at ANZ.

GLOBAL MARKETS-Oil, stocks rally on strong manufacturing data
NEW YORK, Sept 1 (Reuters) - Global stocks posted their biggest percentage gain this summer on Wednesday after U.S. and Chinese manufacturing data eased worries about the world's flagging economy and helped spur a rally in commodities.
"A rebound in risk appetite lured wary investors out of the relative safety of U.S. dollar-denominated assets," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington. "Surging stocks and generally firmer commodities signaled an improving mood throughout global markets."

Asian factory growth outstrips two-speed Europe
LONDON/BEIJING, Sept 1 (Reuters) - Manufacturing in China, India and Russia powered ahead in August while growth slowed in European factories, emphasising a growing divide in the pace of recovery between the rich and emerging worlds. Between the euro zone's biggest four economies there was strong evidence of diverging fortunes, with the bloc's manufacturing sector overall expanding at its slowest pace since February, surveys showed on Wednesday.

U.S. turns down China currency probes in two cases
WASHINGTON, Aug 31 (Reuters) - The U.S. Commerce Department decided on Tuesday not to investigate whether China subsidizes exports to the United States by undervaluing its currency, prompting renewed calls for Congress to act on the issue. "It's clear that China games the system by manipulating its currency," Senator Sherrod Brown said in a statement after the department announced its decision in cases involving imports of coated paper and certain aluminum products from China.

Strong Asian data boosts world stocks
LONDON, Sept 1 (Reuters) - World stocks kicked off September on a stronger note as data showed a manufacturing rebound in China and stronger-than-expected growth in Australia, while the yen held near recent 15-year peaks against the dollar. "After what could be considered a washout August, September is starting with a flourish," said Ben Potter, research analyst at IG Markets.

20100902 1102 Soy Oil & Palm Oil Related News.

Soy product futures ended mixed, with soyoil managing to divorce itself from the bearish theme in the rest of the complex on spillover support from rallying crude oil futures, analysts said. Crude oil influences soyoil due to its use in making renewable fuels. December soyoil settled 0.07 cents or 0.2% higher at 40.12 cents per pound. Soymeal futures ended lower, back pedalling in unison with declines in soybeans. December soymeal ended $1.60 or 0.5% lower at $293.60 per short ton.(Source: CME)

US Farmers Expected To Sow More Corn, Soy, Wheat For 2011 (Source: CME)
U.S. farmers will plant more acres with corn, soybeans and wheat for harvest in 2011 than they did for 2010, according to a survey of growers issued by Farm Futures magazine. Corn plantings next year are projected to climb almost 2% to 89.5 million acres, while soybean plantings are estimated to set a new record of 79.6 million acres, up about 1% from 2010, according to the survey. Farmers are "optimistic" about growing corn and soybeans, which will be planted next spring, because the current crops look good, Farm Futures analyst Arlan Suderman said.
Plantings of winter wheat this autumn are expected to rise to 41.7 million acres, up more than 10% from last year, the magazine said. Plantings plummeted last year because excessive rains delayed the corn and soybean harvests and prevented farmers from putting wheat in the ground. All-wheat plantings for harvest in 2011 were projected to rise 7% to 58.3 million acres. Farm Futures said it surveyed more than 550 farmers nationwide via email from July 23 to Aug. 4.

China Likely To Auction Soybeans In Sep -Government Agency (Source: CME)
Provincial agriculture officials in China's northeast are negotiating with soybean crushers on a likely soybean reserve auction this month, an official with a government-backed grain policy and research agency said. The auction would be the first this year, and may serve to rein in sharply higher prices that set a fresh record high Monday. China's government is closely monitoring grain prices, which have contributed to inflationary pressures this year and remain a thorny issue ahead of the high-consumption autumn festival season over the next two months.
A Shanghai-based grains trader said the likely auction, if it takes place, would weigh on prices, since it would add to supply from imports, which reached a record high of 6.2 million metric tons in June. Details of the soybean auction are being worked out, including the offer volume and rules for participation, but 1.5 million metric tons has been cited as the volume that's likely to be offered for sale. The official, who declined to be named, confirmed that discussions were proceeding, but added, "we haven't received any official notification of the auction yet."
Oil crushers are close to agreement with Heilongjiang province officials on the need for the auction, with only logistical details like the date to be worked out, one analyst with a large Shanghai-based grains consultancy said. "Such a sale would help replenish low stocks for soy crushers ahead of the new soybean crop harvest in October," the analyst said.

BUENOS AIRES, Aug 26 (Reuters) - Argentine biodiesel producers fear a proposal by opposition lawmakers to hike export taxes on the fuel could erode profit margins in the leading global supplier, industry sources said on Thursday. Plentiful soybean oil supplies, low costs and a favorable export tax regime have spurred a rapid increase in production capacity in the South American country, which began exporting biodiesel in significant quantities just three years ago.

Palm down as weak demand hits exports
KUALA LUMPUR, Sept 1 (Reuters) - Malaysian crude palm oil futures ended more than 1 percent lower, as players booked profits after data from cargo surveyors showed lacklustre overseas demand.
"There's no sign for China to increase palm oil imports since there are still a lot of stocks in the country, but soybean demand could be higher when weather turns colder," a trader with a Shanghai-based foreign brokerage said, adding that the country has about 450,000-500,000 tonnes of palm oil inventories at major ports.

China meets crushers over state soy reserve sales
BEIJING, Sept 1 (Reuters) - China's grain authority in the top soy province of Heilongjiang has met with local crushers to seek their advise on sales of state soy reserves, local crusher officials said on Wednesday.
But no decision was made on whether Beijing would continue to offer subsidies to these plants as they did last year or to sell these reserves at weekly auctions, they said.

India's Sept-Nov soymeal exports seen over 400,000T
MUMBAI, Sept 1 (Reuters) - India is likely to export more than 400,000 tonnes soymeal in Sept-Nov on strong demand from Asian countries, a senior industry official told Reuters on Wednesday.
"Globally prices of wheat and corn are at higher levels because of which we are getting good realisation for soymeal and hopefully this should continue," Praveen Khandelwal, vice president, strategy at Gokul Refoils And Solvent Ltd  said in an interview.

Next Argentine soy harvest seen at 52 mln T
BUENOS AIRES, Aug 31 (Reuters) - Soy production in Argentina, the world's No. 3 exporter, may dip slightly in the 2010/11 crop year but corn output should be a record, Agriculture Minister Julian Dominguez said on Tuesday.
Argentina's farmers will start planting the new season's corn and soy crops over the coming weeks and Dominguez estimated production of the oilseed at 52 million tonnes, slightly below this harvest's 52.7 million tonnes.

20100902 1026 FCPO EOD Daily Chart Study. (01 Sep 2010)

FCPO closed : 2535, changed : -35 points, volume : higher.
Bollinger band reading : range bound downside biased.
MACD Histrogram : recovering, both buyer and seller testing market.
Support : 2520, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
FCPO ended the day slipped lower with improved volume transaction after price penetrated below 3 levels of support and followed by profit taking activities lifted price to recover upward closed off the low. Daily chart formed a long lower shadow doji market candle closing below middle Bollinger band with the reading suggesting a range bound downside 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.

20100902 1011 FKLI EOD Daily Chart Study.(01 Sep 2010)

FKLI closed : 1435.5, changed : +11.5 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : rising higher, buyer expanding dominance.
Support : 1425, 1405, 1395 level.
Resistant : 1445, 1458, 1470 level.
Comment :
FKLI surged higher for the 4th day with improved volume transacted successfully breaking higher resistant level. Daily chart shows a uptrend intact market with 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.