Monday, September 20, 2010

20100920 1821 FCPO EOD Daily Chart Study.

FCPO closed : 2708, changed : +81 points, volume : lower.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : resumed upward, buyer staying firmly.
Support : 2700, 2670, 2650 level.
Resistant : 2720, 2750, 2770 level.
Comment :
Improving export data and a surged in commodities prices especially soy oil futures lead FCPO to register huge gained today in slightly less but consider high volume transaction. Daily chart formed a doji bar candle after market tested higher resistant, triggered some buy stop order and followed by some profit taking selling activities pressed to closed off the high. Technical reading turned into a side way range bound  upside biased market development testing support and resistant level.
When to buy : buy at support/weakness/break up with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100920 1737 FKLI EOD Daily Chart Study.

FKLI closed : 1475.5, changed : +5.5 points, volume : low.
Bollinger band reading : correction range bound, upside biased.
MACD Histrogram : weakening, buyer taking profit.
Support : 1470, 1458, 1445 level.
Resistant : 1500, 1530, 1550 level.
Comment :
Seller not welcome FKLI edged up higher again after opened and tested lower support level in quiet volume transaction as buyer decided to stayed put. Daily chart formed a long lower shadow doji bar candle continue to have correction take place since last Friday. Technical reading call for a correction range bound upside 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.

20100920 1325 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1466.5, changed : -3.5 points, volume : low.
Bollinger band reading : downside biased.
MACD Histrogram : reversed upward, buyer taking partial profit.
Support : 1458, 1445, 1425 level.
Resistant : 1470, 1500, 1530 level.
Comment :
FKLI corrected downward to eased marginally lower in thin volume traded. Hourly chart shows market opened little lower and traded range bound followed by profit taking activities pressed market tested lower and recover upward to closed the first session off the low. Outlook wise, reading turned into suggesting a downside biased market development.

20100920 1312 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2712, changed : +85 points, volume : high.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer seized control again.
Support : 2700, 2670, 2650 level.
Resistant : 2720, 2750, 2770 level.
Comment :
FCPO rally higher in ultra high volume after soy oil recording huge again in tandem with major commodities futures market that march higher. Hourly chart wise, market opened gap up and stayed higher above upper Bollinger band level. Technical reading suggesting a further upside biased market with possible pullback correction.

20100920 1247 Local & Global Economic News.

Malaysia: FMM against offshore trading of Ringgit
The Federation of Malaysian Manufacturers (FMM) has expressed concern about the strong Ringgit and its possible internationalization, saying that stability in the currency’s exchange rate is of “utmost importance”. “It is stability of the Ringgit and the freedom to remit dividends and capital that attract long-term investments, including FDI, the FMM said. It added that a strengthening of the MYR should not be used as a primary indicator of strength of the economy. To recap, there is speculation that the Ringgit will once again be traded in the international markets, five years after it was de-pegged from the US dollar. (StarBiz)

Indonesia: IMF says policy should be 'more proactive' . Bank Indonesia should signal a greater readiness to boost borrowing costs amid signs of acceleration in the economy, the International Monetary Fund said. "I think they'll need to be more proactive going forward on monetary policy," Thomas Rumbaugh, division chief at the IMF's Asia & Pacific Department, said. "We believe there needs to be a stronger commitment to reducing inflation and keeping it low." (Source: Bloomberg)

Singapore: Exports unexpectedly accelerate on drugs, electronics
Singapore’s export growth unexpectedly accelerated in August as sales of electronics and pharmaceuticals rebounded. Non-oil domestic exports climbed 31.2% from a year earlier, after a revised 18.3% gain in July, the trade promotion agency said in a statement. That’s the fastest pace since December 2005, according to previously reported data. The median forecast of 10 economists surveyed was for an increase of 16.2%. (Bloomberg)
Japan: Bank of Japan keeps Yen in system after intervention
The Bank of Japan refrained from removing funds in the financial system, leaving deposits held by institutions at the bank at the highest level this month after the nation’s first currency intervention since 2004. Deposits climbed by JPY2trn (USD23.4 bn) to JPY17.1trn, the central bank said. (Bloomberg)

Australia: Gillard’s Dollar peaking as tax proves Aussie 27% overvalued
Australia’s dollar, this quarter’s best performing major currency, is now the most overvalued. Purchasing power parity, a measure of the cost of goods relative to other countries, shows the so-called Aussie is 27% too expensive, according to data compiled by Bloomberg. The median estimate of strategists and economists is for it to weaken by 6% by year-end, the fourth-worst performance of 31 currencies tracked by Bloomberg. (Bloomberg)

US: Home sales, goods orders probably rose
Home sales probably increased in August, a sign the US real estate market is stabilizing after the expiration of a tax credit caused demand to plunge, economists said before reports this week. Purchases of new and previously owned homes rose 7% to a combined 4.395m annual pace, according to the median forecast in a survey. (Bloomberg)

US: Consumer sentiment hurt by delay in extending tax cuts
Concern that US personal income taxes will increase next year caused an unexpected decline in consumer confidence in September, indicating the biggest part of the economy will struggle to pick up. The Thomson Reuters/University of Michigan preliminary index of consumer sentiment dropped to a one-year low of 66.6, figures showed. A separate report from the Federal Reserve showed household wealth declined 2.8% in the second quarter as stock prices fell. (Bloomberg)

US: Fed likely to keep rates low, affirm asset floor, survey shows
The Federal Reserve this week is likely to affirm its pledge to keep interest rates low for an “extended period” and maintain the floor on its holdings of securities, say economists surveyed by Bloomberg. The Fed’s Open Market Committee at its 21 Sept meeting will hold off from expanding the balance sheet by purchasing securities, according to 60 of 64 analysts surveyed. 54 of 63 economists said the Fed will leave unchanged a sentence saying high unemployment and low inflation warrant “exceptionally low” rates for an “extended period.” (Bloomberg)

US: Household worth fell in second quarter
Household wealth in the US fell 2.8% in the second quarter as share prices were depressed by the European debt crisis, marking a setback for Americans’ efforts to repair finances battered by the recession. Net worth for households and non-profit groups declined by USD1.5trn to USD53.5 trn, according to the Federal Reserve’s Flow of Funds report issued in Washington. (Bloomberg)

20100920 1246 Malaysia Corporate News.

Digi: Shares fall ahead of iPhone 4 launch. The shares of DiGi.Com Bhd shed 10 sen to end at RM24.70 during last Friday's trade ahead of its iPhone 4 launch this week. DiGi's introduction of iPhone 4 is expected to impact DiGi's EBITDA margins, which have suffered over the last few quarters because of handset subsidies. (Source: The Edge Financial Daily)

O&G: GNI to see USD24b more from OGE sector under NKEA. The Malaysian government hopes to see an additional USD24b (RM74.6b) contribution to gross national income (GNI) through the oil, gas and energy (OGE) sector in the next decade as one of the 12 National Key Economic Areas (NKEA), according to sources. Some of the key milestones are to import liquefied natural gases (LNG) by 2012 as a fuel substitute and to create new industries, to reduce the energy bill by 15% by 2014 and to have in place, a regional oil storage and trading hub with a capacity of 10m tones by 2017. (Source: The Edge Financial Daily)

Plantation: Less carbon dioxide from oil palm estates. The Tropical Peat Research Unit in the Sarawak Chief Minister's Department has set up three Eddy Coveriance towers to carry out an advanced carbon flux study to reinforce its early breakthrough in scientific findings that carbon dioxide (CO2) emission from oil palm plantations on peatland is lower than that of forest peat swamp. Preliminary findings also revealed that CO2 emission from plantations on peatland decreases over time. (Source: The Star)

Property: AQRS to launch RM153m Melawati Heights project. Property developer, AQRS The Building Co Sdn Bhd, will launch its residential project, Contours Twin Courtyard Show Villa, at Melawati Heights in Hulu Kelang, Selangor, on Friday. The project, with a gross development value of RM153m, is located on 3.2ha land. The units are priced between RM3.2m and RM4.8m. (Source: Business Times)

HELP eyes secondary listing in Singapore
Local private education provider HELP International Corp is planning a secondary listing of its shares in Singapore over the next 18 months to fund its expansion plans. The group, which runs the HELP University College in Pusat Bandar Damansara, Kuala Lumpur, plans to set up a chain of private schools, offering preschool, primary and secondary education, in the next five years. HELP University is now also looking at buying a controlling stake in a Singapore-based private school and turning it into a subsidiary prior to the secondary listing in the republic. HELP director of corporate planning Adam Chan Eu-Khin declined to reveal the name, except to say that it is a reputable school with strong psychology and hospitality management programmes. (BT)

Puncak Niaga to meet bondholders as informed by Malaysian Trustees
In an announcement on Bursa last Friday, Puncak announced that the Trustee for the holders of the Notes, Malaysian Trustees Berhad is convening a Collective Bondholders Informal Meeting among all the Selangor water concessionaire holders/operators/bond issuers/term loan borrowers. The meeting agenda will entail: i) the impact of the current situation in the water sector on water treatment operation cash flow, ii) the course of action(s) to be taken by the bondholders/lenders to resolve the situation, and iii) other matters related thereto. (Bursa Malaysia)

Eonmetall to tap global production market
Eonmetall Group plans to tap into the global palm oil production market through participation in Indonesia, after building five solvent extraction plants here. Its chief executive officer Yeoh Cheng Chye said the fifth plant in Malaysia is being commissioned in Sitiawan, Perak, which will be handed over to its client next month. The company delivered Malaysia's first solvent extraction plant in Johor Baru in 2008 to a plantation company which owns and operates over 11,000ha of oil palm plantations in the country. (BT)

Voir mulls expansion via M&As
Fashion retailer Voir Holdings is looking to expand its business through mergers and acquisitions, says its top official. Voir, which retails women's fashion & casual apparels, shoes and accessories under the Voir, Soda and Applemints brands, said it is exploring several possibilities for expansion, including acquiring rivals and brand extension in the fashion apparel, perfumery, beauty and wellbeing segments. "There are some discussions... we are open to such opportunities," its managing director Ham Hon Kit told Business Times in an interview. He said the new brands can come from either its in-house brands or brands of international or local fashion owners. Voir expects an exciting year in 2011, as recent store openings have begun to show results and more new fashion stores and cafes are scheduled to open in the fourth quarter of this year. (BT)

Naim ends MoU with Libyan partner
Naim Holdings’ wholly owned subsidiary, NCSB Engineering SB, has dropped plans to establish a joint venture with Al-Waatasemu Charity Foundation for the construction of the Gaddafi Tower at Tripoli City Centre, Libya. After detailed discussions and feasibility studies, both parties have mutually agreed to terminate the MoU. (MalaysianReserve)

Proton has no merger plans
Proton Holdings has no plans to merge with other companies at this juncture, according to adviser Tun Dr Mahathir Mohamad. Dr Mahathir said the national car manufacturer was a profitable company. It was earlier reported that Proton was working on a deal to make DRB-HICOM an equity partner, but the deal may have hit a snag as neither party has confirmed their interest. Dr Mahathir said Proton was now at the restructuring stage and is not anxious to merge yet. (StarBiz)

20100920 1225 Global Market News.

OIL: Crude steady on U.S. economic woes
SINGAPORE, Sept 20 (Reuters) - Oil was steady on Monday after dropping 3.7 percent last week as supply concerns eased and weak consumer sentiment data set the tone for downbeat expectations about the U.S. economy.
The front-month U.S. contract reached a one-month high above $78 early last week on expectations of an extended closure of the biggest Canada-U.S. crude pipeline.

COMMODITY MARKETS: Gold in week's 3rd record; corn, sugar lead gains
NEW YORK, Sept 17 (Reuters) - Gold had its best week since May as it hit its third record high in four days on Friday and corn, sugar and silver saw big gains too in a week when commodities were whipsawed by currencies and economic data.
"It seems to have been taken as good news," David Wilson, director of metals research at Societe Generale in London, said, referring to the Chinese bank's announcement. "If there is not tightening up, there will still be some lending."

GLOBAL MARKETS: Gold sets new all-time peak as stocks waver
NEW YORK, Sept 17 (Reuters) - Global stocks wavered and oil prices sank on Friday after a worse-than-expected reading of  U.S. consumer sentiment pricked optimism over upbeat earnings from Oracle, while gold prices hit a third high for the week.
"I'm not surprised to see the market struggling a bit on this," Matthew Strauss, senior currency strategist at RBC Capital Markets in Toronto, said of the consumer sentiment report. "It plays into the uncertainties about what a sustainable recovery would look like."

PRECIOUS-Gold at record peaks; silver eyes highest in 30 yrs
LONDON, Sept 17 (Reuters) - Gold leapt to a record high on Friday as a weaker dollar and growing speculation of further quantitative easing by the U.S. Federal Reserve prompted a flurry in investment buying.
Sister-metal silver  was supercharged, benefiting also from gains in prices for industrial metals to test the $21 mark. A break above $21.24 would open the way for prices to hit levels last seen in October of 1980.

FOREX-Dollar steady vs yen but hits 1-month low vs euro
LONDON, Sept 17 (Reuters) - The dollar hovered within striking distance of a one-month high against the yen on Friday, with investors nervous about pushing it too far against the yen as the threat of Japanese intervention hung over the market.
But the dollar fell against other majors, with the euro climbing 0.5 percent to a one-month high, while sterling  also hit its highest in a month. The yen fell on the crosses, dropping to its lowest in more than a month against the euro and a four-month trough versus the higher-yielding Aussie.

World stocks try 3rd week of gains with risk on
HONG KONG, Sept 17 (Reuters) - Global stock markets were on track for a third week of gains and high-yielding currencies strengthened on Friday, while the threat of Japanese intervention kept the yen close to its low for the month against the dollar.
"In addition to the fact that investors aren't still entirely sure about the outlook for the global economy, they are also closely watching whether there would be any comments from the United States on Japan's currency intervention," said Hiroaki Kuramochi, chief equity marketing officer at Tokai Tokyo Securities in Tokyo.

Oil heads for biggest weekly drop in five ahead of pipe restart
SINGAPORE, Sept 17 (Reuters) - Oil was headed for its biggest weekly drop in the last five, erasing gains related to the eight-day shutdown of Enbridge's largest Canada-U.S. pipeline, now scheduled to restart in a matter of hours.
"WTI (is) pressured by the ongoing Cushing bottleneck, and Brent supported by seasonal maintenance to North Sea operations, regional supply issues, and stronger global demand," said JP Morgan oil analysts headed by Lawrence Eagles.

Global stocks try 3rd week of gains; yen steady
HONG KONG, Sept 17 (Reuters) - Global stock markets were on their way to a third week of gains, with emerging markets favoured, while the threat of Japanese intervention kept the yen close to its lows for the month.
"In addition to the fact that investors aren't still entirely sure about the outlook for the global economy, they are also closely watching whether there would be any comments from the United States on Japan's currency intervention," said Hiroaki Kuramochi, chief equity marketing officer at Tokai Tokyo Securities in Tokyo.

GLOBAL MARKETS: Stocks little changed, gold hits record
NEW YORK, Sept 16 (Reuters) - U.S. stocks were little changed on Thursday as data showed the U.S. economy's recovery remained halting, while the dollar rose slightly against the yen a day after Japan's huge intervention to weaken its currency.
"We are just in the same growth path we were before the double-dip fears -- that is why the (stock) market is just kind of stuck, volumes are kind of low, and there is no conviction one way or the other," said John Canally, investment strategist and economist for LPL Financial in Boston.

20100920 1148 Soy Oil & Palm Oil Related News.

Soy jumps 2 pct to 14-month top, corn at 2-yr high
SINGAPORE, Sept 20 (Reuters) - Chicago soy rose more than 2 percent to its highest since June 2009 on concerns that dry weather may hurt a soon to be planted crop in Brazil, while corn rallied to a new 2-year top amid strong demand and worries about U.S. yields. "I think as far as headline stories go, it is weekend frost in Canada which is serious, but time will tell how much impact it will have on the tonnage," said Brett Cooper, a senior manager of markets at FCStone Australia.

ITS : CPO export up 5% to 906,688 tonnes for period 1~20 Sep 2010
SGS : CPO export up 5.3% to 881,812 tonnes for period 1~20 Sep 2010

U.S. soy product futures closed lower with soybeans as trader booked profits. Market participants took money off the table after soyoil reached a nearly one-month high Thursday, a trader says. CBOT Dec soyoil touched a session high of 42.15 cents per pound, its highest price since Aug. 18. Strong demand has supported soyoil prices, and USDA on Thursday announced U.S. exporters sold 67,000 tons of soyoil to unknown destinations. Commodity funds sold an estimated 2,000 soyoil contracts and 1,000 soymeal contracts. CBOT Dec soyoil closed down 0.26 at 41.75 cents per pound, and CBOT Dec soymeal lost $1.40 at $296.30 per short ton. (Source: CME)

Palm oil off two-week lows on corn support
KUALA LUMPUR, Sept 17 (Reuters) - Malaysian crude palm oil futures gained 0.7 percent after touching a near two-week low earlier in the session as a surge in corn prices spread to other agriculture commodities.
"Crude oil and soyoil showed a little strength today," said a trader in Singapore. "The market is expected to trade rangebound between 2,600 and 2,620 ringgit."