Wednesday, September 8, 2010

20100908 1822 FCPO EOD Daily Chart Study.

FCPO closed : 2674, changed : +46 points, volume : lower.
Bollinger band reading : side way range bound little upside biased market.
MACD Histrogram : rising, buyer gain control.
Support : 2670, 250, 2620 level.
Resistant : 2700, 2720, 2750 level.
Comment :
Continue higher FCPO recorded another gained for the 5th consecutive days in lesser volume traded after a higher soy oil and crude oil futures price plus in a expectation of improved export.
Daily chart, price seems likely to test higher resistant level near upper Bollinger band level with the reading suggesting a side way range bound little upside biased market.
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.

20100908 1810 FKLI EOD Daily Chart Study.

FKLI closed : 1437, changed : +3.5 points, volume : lower.
Bollinger band reading : correction upside biased.
MACD Histrogram : weakening, buyer still profit.
Support : 1425, 1405, 1395 level.
Resistant : 1445, 1458, 1470 level.
Comment :
Last hour buying lifted FKLI record gain after traded range bound for the whole day in holiday mood volume participation. Daily chart wise, market still having a 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.

20100908 1610 FKLI Mid Day Hourly Chart Study.

FKLI last looked : 1432.5, changed : -1 points, volume : low.
Bollinger band reading : side way range bound.
MACD Histrogram : recovering, buyer seller in holiday mood.
Support : 1425, 1405, 1395 level.
Resistant : 1445, 1458, 1470 level.
Comment :
6 points range quiet transaction volume FKLI traded side way range bound without much participation. Hourly chart wise, the reading suggesting a side way range bound little downside biased.

20100908 1547 Breaking News in Euro Zone.

Sept. 8 (Bloomberg) -
- Four months after the 110 billion- euro ($140 billion) bailout for Greece, the nation still hasn’t disclosed the full details of secret financial transactions it used to conceal debt. “We have not seen the real documents,” Walter Radermacher, head of the European Union’s statistics agency Eurostat, said in a Sept. 2 interview in his Luxembourg office. Eurostat first requested the contracts in February. Radermacher vows new toughness when officials from his staff head to Greece this month to come up with a “solid estimate” of the total value of debt hidden by the opaque contracts. “This is a new era,” he said.

20100908 1546 FCPO Mid Day Hourly Chart Study.

FCPO last looked : 2648, changed : +20 points, volume : average.
Bollinger band reading : range bound upside biased.
MACD Histrogram : weakening, buyer taking partial profit.
Support : 2620, 2600, 2570 level.
Resistant : 2650, 2670, 2700 level.
Comment :
Higher overnight soy oil and crude oil lead FCPO to opened higher and traded range bound within a 20 points range market in moderate volume transaction. Hourly chart show that market traded range bound between resistant 2650 level with the reading suggesting a range bound consolidation upside biased market.

20100908 0934 Global Economic News.

Korea: May raise rates even as global risks dim outlook
The Bank of Korea may increase its benchmark interest rate to damp price pressures even as the risk of faltering world growth dims the nation’s export outlook. 10 of 14 economists surveyed predict Governor Kim Choong Soo will raise the seven-day repurchase rate 0.25 percentage points to 2.5% tomorrow. The rest expect no change after July’s quarter-point increase from a record-low 2%, the first advance since the global financial crisis. (Bloomberg)

China: Slowdown in output growth will deepen, ministry says
China’s slowdown in industrial output growth will deepen after the smallest increase in 11 months in July, a government forecast showed. Production will gain about 10% in the second half of 2010 from a year earlier, the Ministry of Industry and Information Technology said at a briefing in Beijing. That compares with July’s 13.4% and the 17.6% average for the first half of the year. The August data is due next week. (Bloomberg)

Australia: Extends rate pause on global growth concern
Australia’s central bank extended its pause in raising interest rates “for the time being” as concern that the global economic recovery may falter trumped evidence of an accelerating expansion at home. Governor Glenn Stevens kept the overnight cash rate target at 4.5% for a fourth month, matching all 25 economists’ forecasts, a Reserve Bank of Australia statement showed in Adelaide. (Bloomberg)

Australia: Gillard keeps power by ceding ground to Australia independents
Julia Gillard held on to power as Australia’s first female prime minister after two independent lawmakers agreed to prop up a minority Labor Party government to resolve the country’s closest election in 70 years. Gillard was forced to negotiate power-sharing agreements with the Greens Party and three independents after losing her party’s overall majority in the 21 Aug election. (Bloomberg)

Japan: Shirakawa says BOJ ready to take action if needed, watching Yen
Bank of Japan Governor Masaaki Shirakawa said the central bank is ready to take more action and is watching the effect of the strong yen on the nation’s economy, after the bank kept borrowing costs and the size of its liquidity injections unchanged. Shirakawa’s remarks suggest the BOJ could implement further monetary stimulus if the Yen, which is approaching a 15-year high against the dollar, threatens to derail the nation’s export-led expansion. (Bloomberg)

Germany: Factory orders unexpectedly declined in July
German factory orders unexpectedly fell in July as demand in the Euro region weakened, indicating the recovery in Europe’s largest economy is losing momentum. Orders, adjusted for seasonal swings and inflation, declined 2.2% from June, when they surged a revised 3.6%, the Economy Ministry in Berlin said. (Bloomberg)

EU: Seeks stronger Euro management amid German doubts
European Union governments sought to strengthen the management of the Euro region as Germany warned that the economic rebound is slowing its push for stiffer sanctions on high-deficit countries. EU finance ministers weighed ideas for improving national budget management, monitoring countries at risk and imposing sanctions on rule-breakers, EU President Herman Van Rompuy said in a statement after leading a brainstorming session in Brussels. (Bloomberg)

US: Unemployment may rise to 10% on ‘feeble’ growth
The jobless rate in the US is likely to approach 10% in coming months as the economy fails to grow enough to employ people rejoining the labor force, economists said. Private payrolls climbed 67,000 in August, after a gain of 107,000 the previous month, and the unemployment rate rose to 9.6%, the Labor Department reported. (Bloomberg) 

20100908 0933 Malaysia Corporate News.

UMW's drilling rig contract faces delay
UMW Holdings said its USD183.12m (RM571.33m) contract to provide its Naga 2 jack-up drilling rig has been delayed by a month as the parties are finalising the documents. It expects the contract to be done before the end of September 2010 from the end of August before, UMW said in a statement to Bursa Malaysia. The rig is meant for the Pangkah WHP-B Development Drilling Programme in the Ujung Pangkah Field located in the Pangkah PSC - Offshore, East Java, Indonesia. (BT)

Hearing date for EONCap petition set
The hearing of the petition filed by EON Capital’s (EONCap) single largest stakeholder, Primus (Malaysia) SB, has been set on 20 Sept to 23 Sept and 27 Sept and 28 Sept this year. Primus had filed a lawsuit against EONCap’s directors on 21 June in an attempt to stop the lender from being taken over by bigger rival Hong Leong Bank. Primus claims that Hong Leong’s takeover offer is unlawful in the way it is structured, and that EONCap’s directors had not acted in the best interest of the bank. Yesterday, the company had erroneously announced that the trial petition would be held in September on the 20th till the 23rd and the 28th and 29th. (BT)

Tenaga signs renewable energy pact
Tenaga Nasional has signed three agreements with three parties for the supply of electricity generated by renewable energy for 21 years. The agreements, under its Small Renewable Energy Power (SREP) Program, are expected to cost TNB RM37.7m annually. The agreements are between TNB and Garisan Etika (M) SB for 10 megawatt (MW), TNB and Maju Intan Biomass Energy SB for 10MW and TNB and Felda Palm Industries SB for 0.5MW. The SREP Program was launched by the government in May 2001 to promote the usage of renewable energy in power generation, and to reduce emission of greenhouse gases. To date, the total capacity under the renewable energy power purchase agreement is 108.15MW. (BT)

Petronas to list Petronas Chemicals
Petroliam Nasional (Petronas) is looking to list its petrochemical arm Petronas Chemicals Group on Bursa Malaysia’s Main Market, with the national oil corporation remaining as Petronas Chemicals’ controlling shareholder following the initial public offering (IPO). Petronas Chemicals, which is the umbrella company for Petronas’ 22 petrochemical-related companies, has an authorized share size of 15bn shares and an authorized share capital of RM1.5bn. The final retail price will be determined after the institutional price is fixed on the price determination date and will equal the lower of the retail price and a percentage of the institutional price. Meanwhile, Business Times reported that Petronas Chemicals Group (PCGB), one of the largest petrochemicals producer in Southeast Asia, plans to grow by expanding its production capacity and carrying out selective acquisitions in the mid-to-long term. (BT, FInancialDaily)

Berjaya may buy CMP shares
Berjaya Assets may take up an equity stake in Central Malaysia Properties SB (CMP), the developer of a RM4bn integrated waterfront development project in Johor Bahru. Berjaya Assets said, CMP had invited it to take up a stake in the company. Chairman of Berjaya Group, Tan Sri Vincent Tan Chee Yioun owns a 60% stake in CMP, while the remaining 40% is held by CMP managing director, Datuk Chan Tien Ghee. The response was in relation to a news report, which came out over the weekend, on plans for Berjaya Assets to take over the project. (BT)

SEAL to lease Penang premises to AEON
Seal Incorporated’s (SEAL) subsidiary, Seal Lifestyle Development SB, has agreed to lease out the shopping centre building together with car parks in Bayan City, Bayan Baru in Penang to AEON Co (M). Seal lifestyle would rebuild the property according to the design and specifications of AEON, for a total development cost of RM146m. Upon obtaining the certificate of completion and compliance, Seal Lifestyle would lease the property to AEON to operate a shopping centre there. The lease would be for an initial term of 10 years with an option of three renewal terms of five years each. (FInancialDaily)

Zelan sells 22% stake in IJM to focus on projects
Engineering and construction group Zelan unanimously obtained shareholder approval for the disposal of 30m ordinary shares held in IJM Corp, which was tabled at the company extraordinary general meeting (EGM) held yesterday. The price of the disposal that represents 22% of the issued and paid-up capital of IJM Corp will be determined at a later date at open market prices or through business transaction by the company. At yesterday’s close of RM5.13 for IJM Corp shares, the disposal would be valued at about RM153.9m. (Malaysian Reserve)

Petra Energy objects UPOIC’s application Petra Energy said that in its arbitration proceedings by United Palm Oil Industry Public Co Ltd (UPOIC), the latter had sought to amend their Points of Claim and to increase their claim for damages and penalty from USD11.26m to USD21.58m. Petra Energy had objected to UPOIC’s application to the Tribunal. On 3 Sept, the arbitration tribunal informed that it was allowing UPOIC’s application to amend their Request for Arbitration subject to certain terms. Petra Energy said the date for the arbitration hearing was fixed from 6-9 Dec. (StarBiz) 

20100908 0929 Global Market News.

OIL: Crude falls as investors offload risk
SINGAPORE, Sept 8 (Reuters) - Oil fell for a third straight session on Wednesday as the dollar jumped and Asian equities fell on investor attempts to reduce risk exposure, while U.S. crude remained depressed by brimming petroleum stockpiles.
European Brent crude for October  was trading almost $4 higher than U.S. benchmark West Texas Intermediate (WTI), shedding 42 cents on Wednesday to $77.34.

GLOBAL MARKETS: Stocks, euro fall on European banking fears
NEW YORK, Sept 7 (Reuters) - World stocks pulled back from a one-month high on Tuesday, the euro tumbled and the yen hit a 15-year peak against the dollar on renewed concerns about European banks and the global economy.
"There's concern about the health about the European banking sector ... that fear kind of comes and goes," said Tom Schrader, managing director, U.S. equity trading at Stifel Nicolaus Capital Markets in Baltimore. 

Obama kicks off campaign with infrastructure plan
MILWAUKEE, Sept 6 (Reuters) - President Barack Obama, scrambling to spur job creation, proposed a six-year plan on Monday to rebuild U.S. infrastructure with an initial $50 billion investment and prepared new business tax cuts.
"We are going to rebuild 150,000 miles (240,000 km) of our roads -- that's enough to circle the world six times. ... We're going to lay and maintain 4,000 miles (6,400 km) of our railways -- enough to stretch coast-to-coast," Obama told a labour rally in Milwaukee where several thousand supporters cheered his every line.

China sees factory output growth slowing to 10 pct
BEIJING, Sept 7 (Reuters) - Annual growth in Chinese factory output will slow to 10 percent in the second half of this year, a government official said on Tuesday.
Beijing's drive against property speculation will reduce demand for everything from steel and cement to furniture, Xin Guobin, a department head at the Ministry of Industry and Information Technology, told a news conference.

German industry orders fall unexpectedly
BERLIN, Sept 7 (Reuters) - German manufacturing orders unexpectedly fell in July at their steepest rate in more than a year, weighed down by weaker demand from abroad and a below-average volume of big orders.
The data sent the euro to a session low against the dollar and Bund futures to a session high.

PRECIOUS-Gold holds near $1,250/oz as firm dollar caps gains
LONDON, Sept 7 (Reuters) - Gold held near $1,250 an ounce in Europe on Tuesday, supported by remerging concerns over the European banking sector and worries about global economic growth, though strength in the dollar capped gains.
"This morning we've seen risk aversion coming back with the Wall Street journal report," said Credit Agricole analyst Robin Bhar. "That has obviously impacted on equities, we've seen safe-haven flows into the dollar, but not into gold."

FOREX-Euro slides, Europe banking issues in focus
LONDON, Sept 7 (Reuters) - The euro fell broadly on Tuesday after rekindled concerns about the European banking sector prompted investors to sell higher-risk currencies.
"For the moment, the news about the German banks and the stress tests will weigh on risk appetite," said Sven Schubert, currency analyst at Credit Suisse in Zurich.

Stocks, euro down on Europe banking concerns
LONDON, Sept 7 (Reuters) - World stocks edged down from the previous day's one-month high  while the euro fell broadly as renewed concerns about Europe's banking sector encouraged investors to pause after a recent rally.
"It's shedding more light on how effective the stress tests were and how much they revealed ... bringing those fears back on the table," said Commerzbank rate strategist David Schnautz.

20100908 0928 Soy Oil & Palm Oil Related News.

Soy product futures ended higher in unison with soybeans. Soyoil futures were the upside leader of the products, with huge sales of soyoil announced by USDA Tuesday morning providing a fresh dose of bullish news to lift prices, said Steve Freed, analyst with ADM Investor Services in Chicago. December soyoil settled 0.93 cents or 2.3% higher at 41.79 cents per pound. December soymeal ended $3.40 or 1.1% higher at $306.70 per short ton.(Source: CME)

Chinatex: 2011 China Soy Crush Capacity Above 100 Mln Tons.(Source: CME)
China's daily soybean crushing capacity is likely to rise to about 350,000 metric tons next year, taking total capacity next year beyond 100 million tons, Chinatex Corp. Vice President Luan Richeng said. This year's daily crushing capacity was about 300,000 tons, Luan told an industry conference. Chinatex is a major state-owned trader of agricultural commodities and textiles. The trading company expects the country's imports of cotton, soybeans and vegetable oils to grow steadily, Luan said. Soybean imports in the 2009-10 marketing year ending in October are likely to reach 49.5 million tons, he said. The estimate is in line with U.S. Department of Agriculture forecasts published last month.
Palm oil imports of around 6 million tons are expected in the same marketing year, Luan said. Cotton production in 2010-11 is expected to edge up 1.5% to around 7.18 million tons, while consumption is projected to rise 3.1% to 10.88 million tons and imports to grow 14.3% to 2.72 million tons, he said.

Palm oil inches up on demand recovery hopes
KUALA LUMPUR, Sept 7 (Reuters) - Malaysian crude palm oil futures on closed higher Tuesday as some traders took positions on expectations for a recovery in exports this month although lower crude oil sapped sentiment.
"The market is going sideways, probably investors are waiting to get some hints from the exports data," said a trader with local brokerage in Kuala Lumpur.

India's 2010/11 soymeal exports seen sharply up
MUMBAI, Sept 7 (Reuters) - India's soybean output in 2010/11 is likely to top last year's and meal exports from the new crop are likely to rise significantly as lower bean prices are seen giving edge to Indian exporters, a senior industry official said.
The Central Organisation for Oil Industry and Trade estimates the country's soybean output in 2009/10 was 8.5 million tonnes, down 4.4 percent due to deficient rains that pulled down yields.

Brazil forward sells 14 pct new soy crop-Celeres
BRASILIA, Sept 6 (Reuters) - Brazilian soybean producers have sold 14 percent of the 2010/11 soybean crop that farmers are preparing to plant this month, up from 13 percent a week ago, analysts Celeres said on Monday.
Sales of the new crop as of Sept. 3 were 1 percentage point ahead of this time last year, Celeres said, but 1 percentage point behind the 15 percent already sold on average by this stage over the last five years.