Monday, September 6, 2010

20100906 1814 FKLI EOD Daily Chart Study.

FKLI closed : 1437.5, changed : +5 points, volume : lower.
Bollinger band reading : correction upside biased.
MACD Histrogram : weakening, buyer taking profit.
Support : 1425, 1405, 1395 level.
Resistant : 1445, 1458, 1470 level.
Comment :
Lesser volume FKLI closed higher in tandem with major regional market positive closed development. Daily chart formed a small body doji bar candle with correction still taking place. Technical wise, market still registering correction range bound upside biased 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.

20100906 1528 FKLI Mid Day Hourly Chart Study.

FKLI last looked : 1437, changed : +4.5 points, volume : lower.
Bollinger band reading : correction upside biased.
MACD Histrogram : recovering, buyer taking profit.
Support : 1425, 1405, 1395 level.
Resistant : 1445, 1458, 1470 level.
Comment :
FKLI traded higher in slow volume changed hand after market opened higher and traded side ways range bound. Hourly chart shows market traded range bound within a tight 5 point range market with a side way range bound downside biased market reading.

20100906 1502 FCPO Mid Day Hourly Chart Study.

FCPO last looked : 2610, changed : +40 points, volume : average.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer building position.
Support : 2600, 2570, 2550 level.
Resistant : 2620, 2650, 2670 level.
Comment :
FCPO recorded gain after opened gap up and surged higher in moderate volume transaction changed hand following a weaker US Dollar plus stronger soy oil and crude oil price. Hourly chart wise, price moving along with the moving upward upper Bollinger band as the outlook turned into an upside biased reading testing higher resistant level.

20100906 1428 Global Ecnonomics News.

Japan: May raise GDP estimate as spending drop eased
Japan’s economy probably grew more than three times the government’s initial estimate, economists said after a report showed companies cut spending at the slowest pace since 2007 as a result of strong overseas demand. GDP expanded 1.5% on an annualized basis last quarter, compared with a preliminary reading of 0.4%, according to the median forecast of 16 economists surveyed by Bloomberg News. (Bloomberg)

China: Home prices to fall from this month, BNP says
China’s home prices will decline from this month as the government maintains its lending curbs and increases the supply of public housing, forcing property developers to cut prices to boost sales, BNP Paribas said. “Although the government has not quantified its target, it has indicated that it wants to see a housing-price correction take place in order to meet or partly meet public expectations.” (Bloomberg)

Australia: May extend rate pause on global growth concern
Australia’s central bank may keep its benchmark interest rate unchanged for a fourth month to support the nation’s economy as concerns deepen that recoveries may be faltering in the US, Japan and Europe. Reserve Bank of Australia Governor Glenn Stevens and his board will leave the overnight cash rate target at 4.5% in Adelaide, according to all 25 economists surveyed by Bloomberg News. (Bloomberg)

US: Trade deficit probably narrowed in July
The trade deficit probably narrowed in July as a slowing economy prompted Americans to buy fewer goods from abroad, economists said before a government report this week. The gap between imports and exports decreased to USD47bn from USD49.9bn the prior month, according to the median of 60 estimates in a Bloomberg News survey ahead of the Commerce Department’s 9 Sept report. (Bloomberg)

Global: ‘Modest recovery’ underway for economy
John Lipsky, the second-ranking official at the International Monetary Fund, said Group of 20 nations deputies showed confidence about the global economic recovery, even taking into account challenges and risks. “They’re mainly confident that there’s a moderate recovery under way globally,” Lipsky said after a G-20 deputies’ meeting. "There are “obviously risks and challenges but things seem to be moving more or less in the line with our forecasts.” (Bloomberg)

U.S: Recession concerns ease on addition of private jobs in August . Private payrolls climbed 67,000 after a revised 107,000 increase in July that was more than initially estimated. The unemployment rate rose to 9.6% as more people looked for work. (Source: Bloomberg)

U.S: Service companies expand less than forecast in August . The Institute for Supply Management's index of non-manufacturing businesses, which covers about 90% of the economy, fell to 51.5 from 54.3 in July. Readings above 50 signal growth. (Source: Bloomberg)

S. Korea: Economy expanded at almost the same pace in 2Q10 as initially estimated. GDP grew 1.4% QoQ over the three months to June from the first quarter, compared with a July estimate of 1.5% QoQ, the Bank of Korea said. The economy grew 7.2% YoY, matching the earlier estimate. (Source: Bloomberg)

Indonesia: Raises banks' reserve ratio, while keeping its benchmark interest rate unchanged to support growth. Lenders will be required to set aside 8% of their deposits as primary reserves from 5% previously, the central bank said. The secondary reserve requirement, comprising a combination of government bonds and Bank Indonesia certificates, was maintained at 2.5%, and the reference rate was kept at 6.5%. (Source: Bloomberg)

Australia: Services industry shrank in August at a slower pace as companies increased hiring to meet demand for communication services. The performance of services index rose 0.9 points to 47.5 from July, Commonwealth Bank of Australia and the Australian Industry Group said. A figure below 50 indicates the industry is contracting. (Source: Bloomberg)

20100906 1427 Malaysia Corporate News.

Amanah Harta Tanah PNB: RM500m potential asset injection in future. Real estate investment trust  Amanah Harta Tanah PNB (AHP) could add over RM500m worth of assets in its portfolio within the next four years. PNB Commercial Sdn Bhd, the asset management subsidiary of Permodalan Nasional Bhd, has set its objective of turning around the commercial properties within PNB Commercial's stable, which will later be offered for injection into the REIT. (Source: Business Times)

AZRB: Files suit against AFU. Ahmad Zaki Resources Bhd (AZRB) has initiated legal actions against Saudi Arabia's Alfaisal University (AFU) over the latter?s decision to liquidate the performance and advance bonds totaling 52.6m riyals (RM43.9m) for the Alfaisal University campus development project (phases 1 & 2) in Riyadh, Saudi Arabia. AFU had on Aug 23 sent a letter to AZRB alleging a breach of performance. (Source: The Edge Financial Daily)

Berjaya Assets: To handle Lido Boulevard. Berjaya Assets Bhd is now in the midst of taking over the development of Lido Boulevard, the multibillion ringgit integrated waterfront development project in Johor Bahru by Central Malaysia Properties Sdn Bhd (CMP). The exercise is likely to be completed within the next six months, after which work on the project is expected to start. (Source: Business Times)

CIMB: Among bookrunners picked for AIA IPO in HK. CIMB Group was selected as one of the underwriters to sell AIA Group Ltd shares in the pan-Asian life insurer's proposed initial public offering (IPO) on the Hong Kong Stock Exchange (HKSE). CIMB will be one of a record 11 book runners that AIA's parent, American International Group Inc (AIG), has chosen in the hope to raise about USD15b (RM46.7b) which will be used to repay part of the USD182.3 b in government bailout assistance the insurance giant received beginning September 2008. (Source: Malaysian Reserve)

CIMB: Vietnam venture hits rough waters? CIMB Group venture in Vietnam may have hit a snag. The parent company of Vinashin Shipbuilding Finance Co Securities LLC (VFC) (CIMB has a 10% stake in VFC) has hit choppy waters. State-owned Vietnam Shipbuilding Industry Group (Vinashin) is debt laden and came close to bankruptcy this year. While the equity stake and investment committed is small, VFC is still CIMB's only toehold in Vietnam. (Source: The Edge Financial Weekly)

HPI: Expanding with RM44m plant. HPI Resources is investing RM44m to set up a new integrated manufacturing plant and warehouse in Nilai, Negeri Sembilan by end-2011 as part of its expansion plans. It has acquired a new piece of industrial land for RM8.5 m from the Chemical Company of Malaysia Bhd, as announced last Friday. (Source: The Edge Financial Daily)

Jetson: Naza terminates shareholders' agreement for Matrade project. The Naza Group?s TTDI KL Metropolis Sdn Bhd (TKLM) has terminated the shareholders? agreement with Kumpulan Jetson Bhd to build a new trade exhibition centre for the Malaysia External Trade Development Corporation (Matrade) on a joint-venture basis. Jetson said on Friday, Sept 3 the termination arose from disagreements on certain commercial terms relating to the project costs for the Matrade centre in Jalan Dutamas which was expected to cost RM628m. (Source: The Edge Financial Daily)

KYM: In ?intense? talks with Vale. KYM Holdings Bhd, which only recently garnered interest based on its ties with Brazil's mining giant Vale International SA, is set to make the relationship official soon. Executive chairman and CEO, Datuk Dr Isahak Yeop Mohd Shar said ?definitely before year-end?. The company will make an official announcement on the contracts it hopes to secure from Vale. (Source: The Star)

Property: Wing Tai to launch projects in Malaysia. WING Tai Holdings Ltd, a property developer, will launch several new projects in Malaysia as it is bullish on the market. Its deputy chairman Edmund Cheng said Wing Tai will continue to develop high-end properties in the Klang Valley. It currently has 80ha of land in Kuala Lumpur and Penang. (Source: Business Times)

RHB Cap: EPF mulls bigger exercise for RHB Cap. The Employees Provident Fund (EPF), the major shareholder of RHB Capital Bhd, is not discounting the possibility of a bigger corporate exercise in its move to pare down its interest in RHB Cap. Some key people in the top management in EPF are looking at the possibility of RHB Cap merging with a local banking giant. They have identified 3 potential partners ? Ambank Group, Malayan Banking Bhd and CIMB Group. However, ANZ, Ambank Group strategic partner with 27% equity interest has expressed that they was not interested in the tie-up. (Source: The Edge Financial Weekly)

TM: No decision on Measat GO
Telekom Malaysia Bhd (TM) has yet to decide whether to take up the RM4.20 per share cash offer for its 15.39% stake in satellite operator Measat Global Bhd by Measat Global Network Systems SB (MGNS). An investment vehicle connected to tycoon T Ananda Krishnan, MGNS owns a 59.56% stake in Measat. The offer, which was made by MGNS in late July for all the shares it does not already own, values Measat at RM1.64bn. The offer price also represented a 10.53% or 40 sen premium over Measat’s closing price of RM3.80 on 27 July. TM has the second-largest stake in Measat, with the next largest shareholder holding a 1.33% stake. The general offer (GO) expires 8 Sept. (StarBiz)

Sunway unit in S’pore project
Sunway Holdings Bhd’s unit, Sunway Developments Pte Ltd, and joint-venture partner Hoi Hup Realty Pte Ltd will pay SGD165m (RM384m) to lease a parcel of state land from the Singapore government at Miltonia Close for 99 years to undertake a property development project. “The completion period of the proposed project shall be 72 months or earlier, commencing from 2 Sept and would contribute positively to the earnings of Sunway Group for the financial year ending 31 Dec, 2011 onward,” Sunway told Bursa Malaysia yesterday. (StarBiz)

SAAG proposes to raise RM416m
SAAG Consolidated Bhd has proposed to raise gross proceeds of up to about RM416m by undertaking a proposed rights issue, proposed exchangeable bonds and/or proposed ICPS issue. The corporate exercise would enable the company to increase its shareholders’ funds and strengthen the capital base, SAAG said in a filing with Bursa Malaysia. It would also enable the company to repay borrowings and raise funds for its business expansion. The proposals involve a renounceable two-call rights issue of up to 5.2bn rights shares on the basis of five rights shares for every two SAAG shares. It comes with up to 1.04bn warrants on the basis of one free warrant for every five rights shares subscribed. (StarBiz)  

20100906 1425 Global Market News.

GLOBAL MARKETS- Stocks, commodities gain on labor market report
NEW YORK, Sept 3 (Reuters) - Stocks jumped and commodities rose on Friday after data showing fewer U.S. job losses than expected reinforced other reports this week to ease fears the American economy is on the cusp of a new recession.
"It's not a great report, but it's a bit better than expected, and it does not indicate that we're into some sort of headlong plunge into a double dip," said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts.

US economic data damp down fears of new recession
WASHINGTON, Sept 2 (Reuters) - Pending sales of previously owned U.S. homes rebounded unexpectedly in July and new claims for jobless benefits fell last week, helping quell fears the economy could face a double-dip recession.
The data released on Thursday, including sturdy sales from U.S. retailers last month, followed a report on Wednesday showing a surprising gain in manufacturing and suggested the economy retained some underlying strength.

Japan capex fall slows, 2nd qtr GDP seen revised up
TOKYO, Sept 3 (Reuters) - Japanese companies cut capital spending in April-June by a less-than-expected 1.7 percent from the same period last year, pointing to an upward revision of an anaemic preliminary reading for second-quarter GDP growth.
But the strong yen and slowing exports to major destinations such as the United States and China may hurt business sentiment and corporate willingness to spend, boding ill for the economic outlook, analysts say.

FOREX-Dollar slips broadly before U.S. payrolls
LONDON, Sept 3 (Reuters) - The dollar struggled on Friday while the euro crept up before U.S. employment data which is expected to show more job losses and may fuel dollar selling but also heighten risk aversion.
"If the figure is weak, we would see the dollar being sold off and the euro would rise, before it all dissipates," said Paul Mackel, director of currency strategy, at HSBC. "That has been the kind of reaction that we have been seeing to the past few data releases from the U.S."

GLOBAL MARKETS-Europe stocks gain;yen near 15-yr high vs dlr
LONDON, Sept 3 (Reuters) - European stocks edged higher after U.S. shares climbed, but the dollar struggled as markets braced for a key U.S. labour report expected to show more job losses, clouding the outlook for recovery.
"People are watching the growth in (U.S.) private sector employment, which is likely to be too low to be good enough for the economy," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin.

20100906 1424 Soy Oil & Palm Oil Related News.

U.S. soy product futures climbed with soybeans on spillover support and technical buying, traders say. The soy complex felt borrowed strength from the grains, which climbed nearly 4% on tightening supply outlooks and expectations for strong demand. Corn, in particular, helped pull up the soy complex because corn and soybeans compete for acreage in the spring, says Brian Hoops, president of Midwest Market Solutions. Commodity funds bought an estimated 2,000 soymeal and 3,000 soyoil. Dec soymeal closed up $7.20 at $303.30 per short ton, and Dec soyoil was up 0.66 cent at 40.86 cents per pound.(Souce: CME)

Palm up on short covering due to supply worries
KUALA LUMPUR, Sept 3 (Reuters) - Malaysian crude palm oil futures closed more than 1 percent higher on short-covering ahead of the Muslim festive season, but a firmer ringgit capped gains, a trader said. Muslims worldwide will mark the end next week of the month-long Ramadan fasting period, when plantation workers in top palm oil producers, Indonesia and Malaysia, usually go on long holidays, triggering worries of tight supplies.
"There is some technical rebound in anticipation of a long holiday next week, and the delay of Malaysian Palm Oil Board data is not good news for the market too," said a trader in Kuala Lumpur, referring to monthly palm oil figures released by the industry regulator.

20100906 1059 FCPO EOD Daily Chart Study. (03 Sep 2010)

FCPO closed : 2570, changed : +28 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : recovering, both buyer and seller still battling.
Support : 2570, 2550, 2520 level.
Resistant : 2600, 2620, 2650 level.
Comment :
FCPO recorded gain with lesser volume traded following the steps of recovering soy oil and crude oil futures price by opened gap up and surged higher. Daily chart shows that price managed to break and stayed above middle Bollinger band resistant level with the reading suggesting a side way range bound 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.