20100903 1750 FKLI EOD Daily Chart Study.

FKLI closed : 1432.5, changed : -4.5 points, volume : lower.
Bollinger band reading : correction upside biased.
MACD Histrogram : turned downward, buyer taking profit.
Support : 1425, 1405, 1395 level.
Resistant : 1445, 1458, 1470 level.
Comment :
FKLI eased lower in lesser volume changed hand ahead of the weekend doing 3 points discount compare to cash market. Daily chart wise, market is having pullback correction after surge higher without a rest for 5 consecutive days. Reading wise is suggesting a correction range bound upside biased market testing lower support 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.

20100903 1442 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1438, changed : +1 point, volume : low.
Bollinger band reading : range bound little upside biased.
MACD Histrogram : reversed upward, buyer lock in profit.
Support : 1425, 1405, 1395 level.
Resistant : 1445, 1458, 1470 level.
Comment :
Lower volume transaction 6.5 points range FKLI closed 2 ticks higher opened higher and traded range bound the the whole morning. Hourly chart shows price move mostly along the middle Bollinger band level with the reading suggesting a range bound little upside biased market development.

20100903 1256 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2556, changed : +14 points, volume : low.
Bollinger band reading : side way range bound.
MACD Histrogram : rising, buyer testing market with some seller short covering.
Support : 2550, 2520, 2500 level.
Resistant : 2570, 2600, 2620 level.
Comment :
Higher crude oil price plus a rebounding soy oil futures price lead FCPO to opened and surge higher to closed the first session above resistant level in tight 20 points range slower volume changed hand. Hourly chart shows, price opened and stayed above middle Bollinger band level with the reading call for a side way range bound market development.

20100903 1016 Local & Global Economic News.

Malaysia: Refrains from raising interest rate as rebound cools
Malaysia’s central bank left interest rates unchanged after three consecutive increases, choosing to support growth as the global recovery slows. Bank Negara Malaysia kept its benchmark overnight policy rate at 2.75%, it said in a statement in Kuala Lumpur, a decision that was predicted by 15 of the 17 economists surveyed by Bloomberg News. The other two expected a quarter-point increase. (Bloomberg)

Malaysia: Exports data show more sustainable growth rate
Malaysia’s export declined for a fourth month in July, with the latest data from the Statistics Department released showing exports grew 13.5% to RM55.43bn from a year ago. Imports expanded by 18.1% to RM48.41bn from a year ago while on a month-on-month basis, July exports rose 4.9% and imports were up 3.5%. (StarBiz)

Japan: BOJ may forego further stimulus until October forecast review
The Bank of Japan may seek to delay implementing further monetary easing until at least October, waiting to see whether the yen’s gains and a US slowdown will force it to abandon a forecast for a sustained recovery. Governor Masaaki Shirakawa and his board will probably forego fresh liquidity injections at a two-day meeting ending 7 Sept, according to all but one of 15 economists surveyed by Bloomberg News. All 15 economists predicted that the board will keep the benchmark overnight lending rate at 0.1%, where it’s been since December 2008. (Bloomberg)

Australia: Trade surplus narrows as exports cool
Australia’s trade surplus almost halved in July as exports of coal and iron ore came off the boil while imports were lifted by defense spending, suggesting trade will be less of a boost to economic growth this quarter. The surplus of goods and services narrowed to AUD1.89bn in July from a record AUD3.44bn in June, to be well below market forecasts of AUD3.1bn. (Financial Daily)

EU: ECB keeps key interest rate at 1%, may maintain crisis mode
The European Central Bank kept interest rates at a record low and President Jean-Claude Trichet may signal the bank will stay in crisis mode into next year. The ECB’s Governing Council set the benchmark lending rate at 1% for a 17th month, as predicted by all 57 economists in a Bloomberg News survey. Policy makers are also likely to extend emergency lending measures for banks into 2011 as the risk of a renewed US recession threatens the euro region’s economic rebound, economists said. (Bloomberg)

US: Pending home sales unexpectedly rise
Pending sales of existing houses unexpectedly climbed in July from a record low, indicating the real-estate market is steadying following the end of a government tax credit. The index of purchase contracts rose 5.2% after a revised 2.8% drop the prior month, figures from the National Association of Realtors showed in Washington. (Bloomberg)

U.S: Orders to factories rose less than forecast in July . The 0.1% MoM increase in bookings followed a revised 0.6% MoM decline in June. Orders for machinery and computers dropped. (Source: Bloomberg)

E.U: Trichet says ECB to extend emergency bank lending . European Central Bank President Jean-Claude Trichet extended emergency lending measures for banks into 2011, remaining in crisis mode as the risk of a renewed U.S. recession puts the euro-area's rebound in jeopardy. The ECB will keep offering banks unlimited one week and one month loans until at least Jan. 18, Trichet told reporters in Frankfurt. The ECB will also offer banks three month loans in October, November and December at interest rates linked to the ECB's average benchmark rate over the maturity of the loan. (Source: Bloomberg)

U.K: House prices fell the most in six months in August as increased supply of property gave buyers more bargaining power, Nationwide Building Society said. The average cost of a home dropped 0.9% MoM from July, when they fell 0.5% MoM, to GBP166,507 (USD257,519). From a year earlier, prices increased 3.9% YoY, the weakest pace since November. (Source: Bloomberg)

Spain: Sold EUR3.3b (USD4.2b) of five year bonds as its borrowing costs dropped amid receding concern over the nation's ability to rein in the euro region's third largest budget deficit. Spain sold the debt at an average yield of 2.964%, compared with a yield of 3.657% at an auction on July 1, the Treasury said. Demand was 1.63 times the amount sold, compared with the bid to cover ratio of 1.7 times in July. (Source: Bloomberg)

France: 2Q10 jobless rate unexpectedly fell for the first time in two years as companies began hiring again after the worst recession since World War II. The jobless rate dropped to 9.7% from 9.9% in the three months through March. (Source: Bloomberg)

20100903 1014 Malaysia Corporate News.

AmFIRST REIT: AmFirst REIT buys land from FBSM. AmFirst Real Estate Investment Trust, is buying a plot of land with a five-storey office building in Cyberjaya from FBSM Holdings Bhd, an information technology service and systems provider for RM51.5m cash. (Source: Business Times)

Consumer: Navis bidding for Carrefour Malaysia, Singapore assets? A consortium led by a Malaysia-based private equity firm has joined a slate of bidders including French retailer Casino and Britain's Tesco, in bidding for some of Carrefour's Southeast Asian assets, sources said. Malaysia's Navis Capital Partners has bid for Carrefour assets in Singapore and Malaysia, sources familiar with the deal said. However, Navis declined to comment on the deal. (Source: Business Times)

DRB-Hicom: Raising volume in Pekan. DRB-Hicom Bhd, which inked a joint-venture agreement with a UK company on Wednesday to make sports cars in Malaysia, is moving towards adding more volume to its automotive complex in Pekan, Pahang. Furthermore, the move towards sealing an agreement with Volkswagen (VW) for the production of VW cars in Pekan has begun and the newly launched sub-compact model, Suzuki Alto, has seen orders grow where the waiting-list now is about 2 months. (Source: The Star)

MAS: MAE wins Air Mauritius maintenance deal. MAS Aerospace Engineering Sdn Bhd (MAE), a unit of Malaysia Airlines, has won a one-year deal to provide maintenance for eight aircraft of Air Mauritius. "This marks a breakthrough for us in the African aviation market, especially in capturing businesses from southern Africa," said MAS Senior GM, Engineering and Maintenance, Mohd Roslan Ismail. (Source: Business Times)

Property: IFRIC 15 implementation deferred. Malaysian Accounting Standards Board (MASB) has announced the deferment of IFRIC 15 implementation from July 1, 2010 to Jan 1, 2012. The much-debated accounting practice would have required developers to recognise revenue only on completion of projects (Source: The Malaysian Reserve)

Shin Yang: 30m shares traded off-market. Shin Yang Shipping Corp Bhd, had 30m shares traded off-market yesterday in a deal valued at RM33.2m. The block represents 2.5% of Shin Yang. The transaction occurred just days after Shin Yang secured a RM63.7m contract to provide an offshore accommodation workboat for DESB Marine Services Sdn Bhd. On the same day, Shin Yang also announced that the company and its associate units had won a 30-month freight contract worth 201.7 m Dirhams (RM73m) to deliver rock materials for Stevin Rock LLC in the United Arab Emirates. (Source: Business Times)

US stocks rise to extend biggest S&P 500 advance since July
US stocks rose, with the Standard & Poor’s 500 Index building on its biggest rally in almost two months, after retail sales improved, initial jobless claims fell and pending home sales unexpectedly increased. The S&P 500 increased 0.9% to 1,090.10 at 4 p.m. in New York, the biggest two-day gain since early July. The Dow Jones Industrial Average climbed 50.63 points, or 0.5%, to 10,320.10. Stocks rebounded yesterday from the biggest August plunge in nine years, with the S&P 500 surging 3%, as faster- than-estimated growth in manufacturing tempered concern that the global economy will slow as governments withdraw stimulus measures. The S&P 500 remains 10% below this year’s high in April amid concern that a slowdown in the economic recovery is harming the profitability of its companies. (Bloomberg)

SapuraCrest wins deals worth USD134m
SapuraCrest Petroleum was awarded two contracts totaling USD134m through two of its units. One award was from Carigali Hess Operating Company SB and Carigali PTTEPI Operating Company SB for the deployment to and utilization by these companies of the drilling rig known as the “T-6”. Another unit was awarded a bareboat charter from Seadrill UK Ltd for the bareboat charter of the T-10 to Seadrill UK. (BT)

SunCity to buy stakes in Sunway Lagoon for RM128.6m
Sunway City (SunCity) has signed share sale and purchase agreements with Datuk Lim Say Chong and Oh Kim Sun respectively for the proposed acquisition of their stakes in Sunway Lagoon SB. In a statement to Bursa Malaysia, SunCity said the proposed acquisition represents a total of 45% equity interest in Sunway Lagoon and cost RM128.6m. Sunway Lagoon is an established world-class theme park and recreation destination. It holds 49.2ha in Bandar Sunway and 46ha in Sydney, Australia. "By owning 96% of Sunway Lagoon and with the same management effort, SunCity will have greater share of the future earnings of the Sunway Lagoon group," it said. The company said the proposed acquisition would be funded via internal funds. (Bernama)

PPB to invest USD50m on 2 flour mills abroad
Diversified PPB Group, controlled by tycoon Robert Kuok, plans to open two flour mills with a combined investment of USD50m (RM157m) to expand its flour, grain trading and animal feed milling division. Managing director Tan Gee Sooi said the mills will be in Indonesia and Vietnam to take advantage of the countries' burgeoning population with the capacity to process 1,000 tonnes and 500 tonnes of flour per day, respectively "We are now talking to the state authorities, undertaking a feasibility study and scouting for the right location. "We expect to open the Indonesian mill by next year and the Vietnamese mill by next year or 2012," Tan said at the company's half-year results briefing in Kuala Lumpur yesterday. (BT)

PKNS to own 30% of AmanahRaya REIT after injection of properties, shares
Selangor state investment arm Perbadanan Kemajuan Negeri Selangor (PKNS) is to emerge as the second largest shareholder of AmanahRaya REIT (ARREIT) with a 29.9% stake. This is through injecting three of its properties in Klang Valley into ARREIT in exchange for new shares and cash, and the acquisition of some existing shares from ARREIT’s current major shareholder Kumpulan Wang Bersama (KWB), a fund managed by Amanah Raya (ARB). (Financial Daily)

20100903 1010 Global Market News.

Gold steady as investors eye U.S. jobs data
SHANGHAI, Sept 3 (Reuters) - Gold prices were steady, with buyers cautious on the physical market, as investors awaited key U.S. job data due later in the day to scrounge further clues on health of the economy.
"In the case of disappointing U.S. employment data, we could see gold test the historical high of $1,265 tonight," said Louis Lok, a dealer at Bank of China in Hong Kong, adding that even though market sentiment was close to being overbought, bullion
was still likely to move higher.

Asia stocks edge up ahead of key US jobs data
SYDNEY, Sept 3 (Reuters) - Asian stocks squeezed higher on Friday but gains were tentative ahead of all-important U.S. jobs data that tends to swing markets.
"It would have to be a big negative surprise to derail sentiment," said Tim Condon, the head of research at ING in Singapore, of the jobs data. "We think investors are braced for a negative payrolls surprise."

OIL: Crude slips ahead of U.S. jobs data, Hurricane Earl
SINGAPORE, Sept 3 (Reuters) - U.S. crude fell on Friday for the first day in three as traders awaited monthly U.S. employment data, while Hurricane Earl approached the country's east coast, fuelling concerns of disruptions to refineries and demand during the Labor Day long weekend. "Although Hurricane Earl presents a potential threat to petroleum refineries and seaports, current relatively high inventory levels for most petroleum products should lessen concerns about possible supply outages," the EIA said.

GLOBAL MARKETS-Stocks rise on upbeat data; payrolls in focus
NEW YORK, Sept 2 (Reuters) - Stocks and oil rose while U.S. Treasuries fell on Thursday as U.S. data showed the world's largest economy did not appear to be falling back into recession.
"Money seems to be flowing out of bonds and into the stock market," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati. 

US manufacturing grows in Aug, private jobs cut
WASHINGTON/NEW YORK, Sept 1 (Reuters) - The U.S. manufacturing sector grew faster than expected in August, but private employers unexpectedly cut jobs, showing the economic recovery still faces headwinds.
The 13th straight month of manufacturing expansion calmed fears that the U.S. economy may fall back into recession, but the drop in employment and a slump in July construction spending to a 10-year low kept concerns about slow economic growth alive.

US auto sales post weakest August since 1983
DETROIT, Sept 1 (Reuters) - Automakers posted their weakest U.S. August sales in 27 years, underscoring uncertainty about the strength of the recovery in the world's largest economy.
Sales dropped 21 percent from the government incentive-fueled boom a year ago. Monthly auto sales data represents one of the first and broadest-based snapshots of consumer demand.

FOREX-Euro edges up; market cautious before Trichet
LONDON, Sept 2 (Reuters) - The euro edged up on Thursday after healthy results at Spanish and French bond auctions but investors cautiously awaited comments from European Central Bank President Jean-Claude Trichet.
"Markets are a little cautious. If Trichet does sound concerned about the outlook then that would be negative for the euro," said Niels Christensen, currency strategist at Nordea in Copenhagen.

Stocks hit 2-wk high on manufacturing optimism
LONDON, Sept 2 (Reuters) - World stocks hit a two-week high and oil prices rose as optimism from strong U.S. and Chinese manufacturing data extended into a second day ahead of a euro zone interest rate decision and key U.S. jobs data.
"You're getting a lot of quick, knee-jerk reactions in both directions. These disparate pieces of economic data are being reacted to but the information is by no means clear," said Angus Gluskie, portfolio manager at White Funds Management in Australia.

20100903 1008 Soy Oil & Palm Oil Related News.

Soy product futures inched higher, rebounding from dull, mixed day session trade on spillover support from a late bounce in soybean futures. Strong export demand added strength to soymeal, while soyoil was aided by a bounce in crude oil futures. December soyoil settled 0.08 cents or 0.2% higher at 40.20 cents per pound. December soymeal ended $2.50 or 0.9% higher at $296.10 per short ton.(Source: CME)

Palm ends up, worry over demand and FX weigh
JAKARTA, Sept 2 (Reuters) - Malaysian crude palm oil futures ended marginally higher on steady crude oil prices, but concerns over slower overseas demand and bumper soy crops in America continued to weigh. "News about bumper soy crops in United States and South America eased supply concerns in China," said an oil analyst in China's top soy area, Heilongjiang province.