Tuesday, September 14, 2010

20100914 1820 FCPO EOD Daily Chart Study.

FCPO closed : 2643, changed : -33 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : turned downward, buyer taking profit.
Support : 2620, 2600, 2570 level.
Resistant : 2650, 2670, 2700 level.
Comment :
FCPO closed lower forgoing all yesterday gain in better volume transaction changed hand as market sentiment turned mixed awaits tomorrow export data and MPOB official August 2010 report with an anticipation of higher than expected inventory level. Daily chart formed a wide range down bar candle with correction downward from the upper Bollinger band level.  Reading wise, market still having side way range bound 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.

20100914 1745 FKLI EOD Daily Chart Study.

FKLI closed : 1471.5, changed : +8 points, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : continue rising, long live the buyer.
Support : 1470, 1458, 1445, 1425 level.
Resistant : 1500, 1530, 1550 level.
Comment :
Rocket fueled FKLI registered gain again hitting new higher in lesser volume traded and seems wanted to march toward the record high near 1530 level. Daily chart wise, price reached above and closed right at the upper Bollinger band level hinted a potential correction with the reading remained upside biased.
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.

20100914 1548 Global Economic News.

Global: Basel regulators to bolster bank capital requirements . Regulators from 27 nations more than doubled their capital requirements for banks, giving lenders as long as eight years to comply in full, as part of international efforts to prevent future financial crises. The Basel Committee on Banking Supervision  will require lenders to have common equity equal to at least 4.5% of assets, weighted according to their risk. Regulators will introduce an additional capital buffer of 2.5% to withstand future stress, the committee said in a statement. Banks that fail to meet that second buffer would be stopped from paying dividends, though not forced to raise cash. (Source: Bloomberg)

U.S: August budget gap narrows to USD 90.5b down 13% YoY from USD 103.6b in August 2009. The gap for the fiscal year that started in October was USD 1.26tr compared with USD 1.37tr last year at the same time. (Source: Bloomberg)

Canada: Employment rose more than forecast in August , led by educators, and the unemployment rate rose as more people entered the workforce. Payrolls rose by 35,800 jobs, the seventh gain in the past eight months, following a drop of 9,300 in July. (Source: Bloomberg)

E.U: Raises growth forecast for 2010 . Europe's economy may grow almost twice as fast as previously forecast this year with a more "moderate" expansion in the second half, the European Commission said. GDP in the 16 nation euro region may increase 1.7% this year instead of a previously projected 0.9%. The region's growth rate may slow by half to 0.5% in the current quarter and weaken to 0.3% in the fourth quarter, it said. (Source: Bloomberg)

China: To allow credit-default swaps while limiting leverage . China will introduce credit-default swaps by year end, allowing banks to hedge risk while restricting the contracts to avoid pitfalls the U.S. credit markets experienced over the last several years, according to an official with a state-backed Chinese financial association. China will limit the amount of leverage used in credit swaps and won't permit the contracts to be written on high-risk assets such as subprime mortgages. Investors in the derivatives also will be required to own the underlying security. (Source: Bloomberg)

20100914 1545 Malaysia Corporate News.

Boustead: May get to reclaim land south of Penang Bridge. Boustead Holdings Bhd will be allowed to reclaim an area south of the Penang Bridge as compensation for scaling down its Royal Bintang Hotel project from 12 floors to 5 floors as required by Unesco for declaring George Town a World Heritage Site, according to sources. They said Boustead will be allowed to reclaim an area "very much less" than 100 acres between the existing Penang Bridge and the Penang Second Crossing (P2X) in Batu Maung. (Source: The Edge Financial Daily)

Daiman: To develop land in China. Daiman Development Bhd has signed a memorandum of understanding with the People's Government of Chaozhou Municipality, China (PGCM), to acquire and develop 121.5ha in the Chaoan county, Guangdong Province, China. (Source: Business Times)

HSL: Sets sights on SCORE projects. Hock Seng Lee Bhd (HSL) is eyeing the proposed extension projects for the Mukah Airport and Tanjung Manis seaport in central Sarawak, said its chairman Datuk Idris Buang. Both the airport and seaport are within the Sarawak Corridor of Renewable Energy (SCORE). (Source: The Star)

Jerneh: Ace tipped to be Jerneh Insurance buyer. Ace, which made an internal announcement on the impending acquisition of Jerneh Insurance recently, has been keen to invest in Malaysia for some time, says an industry source. Both Jerneh Asia and Paramount were not immediately available for comment, but shares in both companies have been suspended from trading since mid-day yesterday, pending "a material announcement in relation to the proposed disposal of Jerneh Insurance". (Source: Business Times)

MAE: Wins RM82m job at new LCCT. Malaysian AE Models Holdings Bhd (MAE) has won a RM81.8m job at the new low-cost carrier terminal, dubbed KLIA2, in Sepang. In its filing to the stock exchange yesterday, MAE said its wholly-owned unit Matromatic Handling Systems (M) Sdn Bhd will supply, install and maintain a baggage handling system for the main terminal building, satellite building, sky bridge and piers. (Source: Business Times)

Property: RM500m proposal to restore heritage assets. A RM500m incentive is being proposed by a think-tank to the federal government for the 2011 Budget as an inducement for owners of heritage properties in cities such as Penang and Malacca to restore these structures. The Penang-based Socio-Economic and Environmental Institute (Seri) is suggesting that the allocation should be in the form of grants or incentive loans. The beneficiaries will not be limited to cities on Unesco's World Heritage List, but will include historic towns like Taiping in Perak. (Source: Business Times)

Shipping: Decision on cabotage policy after study. The Transport Minister will head a study to determine whether the controversial cabotage policy, which has caused discord between shippers in Sabah and Sarawak and local ship-owners over the past 30 years, should be removed. The national policy, introduced in 1981, mandates that only Malaysian flagships can carry cargo between domestic ports. However, exporters and importers in Sabah and Sarawak, led notably by the Federation of Sabah Manufacturers (FSM), want the policy removed, blaming it for the higher prices of goods in the two states compared to the peninsula. (Source: Business Times)

TDC: Targets to connect 300 buildings in KL city centre by year-end. After wiring up several blocks of buildings in Kuala Lumpur's Mont Kiara, Time dotCom Bhd (TDC) now wants to connect 300 buildings in the KL City Centre area before the year is out. With an additional 300 buildings to the 90 at Mont Kiara, TDC would provide hundreds of residential and commercial units access to fibre optic with transmission speeds of 1 megabit per second (Mbps) to 50Mbps. TDC's network is capable of boosting speed to 100Mbps with no additional capital expenditure required. (Source: The Star)

20100914 1309 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1468.5, changed : +5 points, volume : low.
Bollinger band reading : upside biased.
MACD Histrogram : weakening, buyer taking partial profit.
Support : 1458, 1445, 1425 level.
Resistant : 1470, 1500, 1530 level.
Comment :
FKLI climbed higher again in the morning session in slow volume transaction as buyer continue to test their luck testing higher resistant level. Hourly chart shows that the uptrend remained intact with buyer taking partial profit and the reading still calling for an upside biased market development.

20100914 1257 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2645, changed : -31 points, volume : average.
Bollinger band reading : side way range bound.
MACD Histrogram : getting lower, buyer taking profit and reducing position.
Support : 2620, 2600, 2570 level.
Resistant : 2650, 2670, 2700 level.
Comment :
FCPO opened higher but selling pressure came in after that pressed price downward breaking and closed below 2 levels of supports as market anticipating a higher than expected crude palm oil inventory level spurt buyers to lock in gain and reducing exposure. Hourly chart shows that market dive lower testing support level near lower Bollinger band after tested the upper Bollinger for 2 times with the outlook having a side way range bound reading market testing support and resistant level.

20100914 0857 Global Market News.

Asia stocks keep global rally alive; yen rises
HONG KONG, Sept 14 (Reuters) - Asian stocks edged up while the yen rose to a 15-year high ahead of a decisive vote in Japan, leaving unclear whether a rally that lifted global equities to the highest in four months can stay alive.
"Although better data in the U.S. and China and the agreement in Basel on new regulations have boosted risk appetite, the moves are already beginning to look exhausted," Mitul Kotecha, global head of foreign exchange strategy at Credit Agricole CIB, said in a note.

China economy shows inner strength in buoyant data
BEIJING, Sept 11 (Reuters) - Chinese factories ramped up production in August and money growth easily topped expectations, showing that the economy remained buoyant despite government efforts to clamp down on bank lending and property speculation.
Investment was also resilient, while inflation sped to its fastest pace in 22 months, though the bulk of price rises stemmed from higher food costs, which analysts have said should be transitory after a spell of bad weather across China this summer.

IMF says risks to global growth have intensified
WASHINGTON, Sept 10 (Reuters) - The International Monetary Fund said on Friday that downside risks to global recovery have intensified due to recent turbulence in sovereign debt markets and continued weakness in the financial sector.
The IMF, in a briefing note prepared for Group of 20 deputy finance ministers, said global growth had been somewhat stronger than expected during the first half of 2010, "but is projected to slow temporarily during the second half of 2010 and the first half of 2011."

PRECIOUS-Gold steady near highs; consumers offset risk demand
LONDON, Sept 13 (Reuters) - Gold steadied within about 1.0 percent of record highs on Monday, as improving consumer demand helped cushion the impact of upbeat Chinese economic data on investors' desire for the safe-haven asset.
"It seems risk is a bit back on the table, with China looking okay and Basel swinging the whip, but so far ahead that it's going to take quite a few years for the banks to implement (the rules)," Ole Hansen, senior manager at Saxo Bank, said.

FOREX-New bank rules, Chinese data boost euro
LONDON, Sept 13 (Reuters) - The euro rose more than 1 percent against the dollar on Monday as relief at new global banking regulations and upbeat Chinese data lifted investor appetite for currencies seen as higher-risk.
"Better risk appetite is putting the dollar under pressure and the euro and currencies like the Australian dollar have been holding up very well," said Niels Christensen, currency strategist at Nordea in Copenhagen.

Robust Chinese data lifts metals, oil; gold flat
LONDON, Sept 13 (Reuters) - Upbeat economic data from commodity consuming giant China boosted key raw materials copper  and oil  , while capital protection vehicle gold  eased as attitudes towards risk brightened.
"The Chinese data was instrumental, especially as the market had also heard rumours the Chinese were to hike interest rates," Commerzbank commodities analyst Eugen Weinburg said.

Wave of calming news lifts stocks, hits dollar
LONDON, Sept 13 (Reuters) - World stocks surged  and Wall Street looked set to join in, driven by robust economic news from China and relief that new global bank rules would not mean a rush to raise billions of dollars in extra capital.
"Risks of double dip (recession) straight away are clearly low. People have probably got over-worried in August that the end of the world is nigh," said Michael Dicks, head of research and investment strategy at Barclay's Wealth.

20100914 0855 Soy Oil & Palm Oil Related News.

U.S. soy product futures finished mixed, with soyoil rising slightly on solid demand. Soyoil export sales are expected to remain firm after the USDA last week announced a string of deals in its daily reporting system. China and Peru were among the buyers last week. Weekly U.S. soyoil export sales, issued Thursday, were 138,200 tons, compared to 12,300 tons the previous week and 16,000 tons the week before that. "It seems like the export news on that bean oil continues to be pretty stout," a broker says. Commodity funds bought an estimated 1,000 soyoil contracts at CBOT, a light amount. CBOT December soyoil ended up 0.05 cent at 41.81 cents per pound, and CBOT December soymeal slipped 20 cents to $293.50 per short ton.(Source: CME)

SURVEY: NOPA Soy Crush Expected To Drop To 120 Million Bushels(Source: CME)
A monthly report from the National Oilseed Processors Association is expected to confirm that fewer soybeans were crushed in August than July due to a seasonal slowdown in operations and a lack of available supplies. The NOPA report, due out at 8:30 a.m. EDT Tuesday, is projected to say processors crushed 120 million bushels of soybeans in August, down from 124.181 million bushels in July, according to a survey of analysts by Dow Jones Newswires. The range of analysts' estimates was 116.3 million to 124 million. The NOPA report only includes figures from member processors. "There's just a seasonal fall in the crush," said Dan Basse, president of AgResource Company, a Chicago-based agricultural research firm. "I think the tightness of old-crop beans just exacerbated that."
Supplies of soybeans from the last harvest, or the "old crop," are tight because of strong demand and a lack of selling by farmers. Harvest of the next soybean crop, or the "new crop," will pick up speed this month and likely finish next month. Most analysts projected the NOPA report will show a decline in soyoil stocks from last month. The average of analysts' estimates was 2.87 billion pounds, compared to July soyoil stocks of 3.026 billion. Estimates ranged from 2.75 billion pounds to 3.123 billion pounds. Soyoil stocks should decline from last month because exports have been strong, said Anne Frick, senior oilseed analyst for Prudential Bache. Reduced crushings also indicate soyoil stocks will drop, another analyst said. However, Basse projected a modest increase in stocks because the struggling biodiesel industry, hurt by the expiration of a tax credit promoting biodiesel production, is not using as much soyoil as it used to.

Malaysia End-August Palm Oil Stocks Likely 1.65-1.7 Million Tons.(Source: CME)
Malaysia's Aug. 31 palm oil inventory levels likely reached 1.65 million to 1.70 million metric tons, their highest level since March, due to weak export demand and rising palm oil production, market participants said Monday. Stocks likely rose more sharply than in preceding months due to increased palm imports from Indonesia, a Singapore-based trading executive said. He estimated that palm oil imports in August were around 100,000 tons compared with usual levels of around 20,000 to 25,000 tons as Indonesian traders rushed to move cargoes before Indonesia raised its crude palm oil export tax to 6% from 3% on Sept. 1. Palm oil output likely rose 8% to 10% from 1.52 million tons the previous month, as favorable weather conditions aided harvesting, a company executive at a Malaysia-based major plantation company said. End-July inventory levels were 1.41 million tons, data from the government-linked Malaysian Palm Oil Board showed.
"September production data may not rise significantly as the long Eid holidays have disrupted or slowed down harvesting rounds at the estates," the executive said. MPOB is due to issue palm oil production, stock and export figures Wednesday. Benchmark palm oil prices on the Bursa Malaysia Derivatives have risen 5.6% since the start of this month due to concerns that an Islamic holiday would slow harvesting.

China Ministry: September Soybean Imports Likely 4.73 Million Tons(Source: CME)
China is likely to import about 4.73 million metric tons of soybeans this month, the Ministry of Commerce said Monday. The estimate is slightly lower than imports in August, when 4.76 million tons of soybeans were imported, according to data last week from the General Administration of Customs. Such volumes are still historically high. The forecast for imports this month represents a 72% rise from a year earlier. The estimate, published on the ministry's website, is based on reports from importers during the Aug. 16-Aug. 31 period. The regular forecast is usually lower than the actual import figure as it doesn't include all cargoes. The ministry issues the estimates twice a month.

China data, crude lift palm to one-mth highs
KUALA LUMPUR, Sept 13 (Reuters) - Malaysian crude palm oil futures hit one-month highs  after a long weekend holiday, on encouraging economic data from China and firmer crude oil, although prospects of a bumper U.S. soy crop weighed on prices.
"People missed the opportunity to hedge enough positions because nobody expected that crude (oil) could go this high within two days," said a trader with a foreign commodities broker.