Tuesday, September 21, 2010

20100921 1824 FCPO EOD Daily Chart Study.

FCPO closed : 2674, changed : -34 points, volume : lower.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : turned downward again, buyer taking profit.
Support : 2670, 2650, 2620 level.
Resistant : 2700, 2720, 2750 level.
Comment :
FCPO eased lower surrendered partial of yesterday gain with less volume traded as buyer decided to lock in profit after yesterday huge gain. Daily chart wise, downward correction taking place formed a wide range down bar candle with the reading still calling a side way range bound upside biased market.
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.

20100921 1806 FKLI EOD Daily Chart Study.

FKLI closed : 1478.5, changed : +3 points, volume : higher.
Bollinger band reading : correction range bound, upside biased.
MACD Histrogram : weakening, buyer continue taking partial profit.
Support : 1470, 1458, 1445 level.
Resistant : 1500, 1530, 1550 level.
Comment :
Closed marginally higher FKLI traded range bound within a 10.5 point range market with slightly better but considered  low volume transaction following a mixed regional market development. Daily chart formed the 2nd doji bar candle as buyer still very much in control of the market with partial profit taking activities. Outlook remain unchanged with 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.

20100921 1323 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1476.5, changed : +1 point, volume : low.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : turned upward, buyer still in control.
Support : 1470, 1458, 1445 level.
Resistant : 1500, 1530, 1550 level.
Comment :
Slow volume transaction FKLI opened 1 tick higher and surged upward testing upper Bollinger resistant level followed by profit taking activities hitting price to soften off the high. Daily chart show that market traded range bound bouncing within the Bollinger upper and lower band with the reading suggesting a range bound little upside biased market.

20100921 1301 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2696, changed : -12 points, volume : low.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : getting weaker, buyer book in profit.
Support : 2670, 2650, 2620 level.
Resistant : 2700, 2720, 2750 level.
Comment :
FCPO eased lower in thin volume traded after yesterday price surged despite a firmer soy oil futures price. Hourly chart shows that market is having correction after price spike up above upper Bollinger band level with the reading suggesting a correction range bound upside biased market testing support near middle Bollinger band level.

20100921 1015 Global Economics News.

Thailand: Exports rise as demand weathers Baht strength
 Thailand’s exports rose for the 10th consecutive month in August as the Baht’s appreciation to a 13-year high failed to curb demand for the country’s automobile parts and electronics. Shipments increased 23.9% last month from a year earlier to USD16.5bn. Prime Minister Abhisit Vejjajiva’s government is considering measures to temper the Baht’s gains, which the Thai Chamber of Commerce said may affect overseas shipments in the fourth quarter. (Bloomberg)

Taiwan: Export orders increase more than estimated
Taiwan’s export orders rose faster than economists projected, signaling resilience to global economic risks and scope for higher borrowing costs. Orders, an indication of shipments in the next one to three months, increased 23.3% in August from a year earlier, after an 18.23% gain in July, the Ministry of Economic Affairs said. (Bloomberg)

US: Homebuilder confidence holds at one-year low
Confidence among US homebuilders in September unexpectedly held at the lowest level in more than a year, showing the housing market remains depressed following the expiration of a government tax credit. The National Association of Home Builders/Wells Fargo confidence index was unchanged at 13, matching the August reading as the lowest since March 2009, data showed. Index readings lower than 50 mean more respondents said conditions were poor. (Bloomberg)

US: Obama prods China on currency, praises economic team
President Barack Obama criticized China for its currency policy, praised his economic team and called predictions of a Republican takeover of the House of Representatives “premature.” China’s leaders haven’t done “everything they said would be done” to allow the nation’s currency to rise in value, Obama said, echoing the views expressed by administration officials and lawmakers at congressional hearings last week. (Bloomberg) 

20100921 1014 Malaysia Corporate News.

MAS orders Airbus freighters
Malaysia Airlines has placed a firm order with Airbus for two more A330-200F freighters, following the conversion of two existing options. The latest contract increases the airline's firm orders for freighter aircraft to four. The aircraft will be operated by its air freight arm, Malaysia Airlines Cargo SB (MASkargo) and will be powered by PW4000 engines from Pratt & Whitney. (BT)

PLUS and IDFC Projects win tender to build 127.6-km road In India
A consortium comprising PLUS Expressways and India's IDFC Projects Ltd has secured a tender to build a fourlane 127.6-km road which is the Jetpur-Somnath section of the National Highway-8D in Gujarat. The highway connects New Delhi with Mumbai, passing through state capitals and suburbs, which is popularly known as the Western Express Highway. The project to be executed on design, built, finance, operate and transfer basis is for a 30-year period from the date of the proposed execution of the relevant concession agreement, (Bernama)

KL, Singapore conclude KTM deal
 Malaysia and Singapore have agreed to bring the outstanding issue on the development charges payable on Keretapi Tanah Melayu (KTM) land in the city state that will be jointly developed by both countries, to the international court for arbitration. Both countries also agreed to accept the arbitration award as final and binding. (Financial Daily)

End to Affin-BSN merger dispute
 An out-of-court settlement is on the cards in the legal dispute arising out of the 2001 merger between BSN Commercial (M) and the former Perwira Affin Bank, which resulted in the creation of Affin Bank. This is the latest development in a lawsuit filed in 2007 by BSNC Corporation against Affin Bank and its owner Affin Holdings. Lawyers quoted in the court notes were saying that the BSNC had received a ’serious’ letter of offer from Affin to settle dispute (Financial Daily)

Sime Darby’s forensic group finds breaches in 4 projects
The forensic and legal consultants tasked to look into certain projects under Sime Darby's energy and utilities division have found evidence of breaches in four key projects. Projects involved are namely the Bulhanine and Maydan Mahzam project with Qatar Petroleum (QP project), the Maersk Oil Qatar project (MOQ project), the Bakun hydroelectric dam and a project known as the "Marine Project". It was reported previously that Sime Darby booked a loss of RM200m for the QP project, RM159m for the MOQ project and RM155m for building vessels for the project, and RM450m for the Bakun hydroelectric dam project. Sime Darby, in a statement to Bursa Malaysia yesterday, said based on the findings of the work group, it has resolved to initiate legal proceedings and, where appropriate, to lodge reports with relevant authorities. (BT)

Players allocated 2.6GHz spectrum
The majority of the nine cellular/wireless companies are believed to have been informed by the industry regulator that they have been allocated the 2.6GHz spectrum that is meant for 4G, which can be used after 1 Jan, 2013. The StarBiz report named four cellular firms – Celcom Axiata, DiGi.Com, Maxis Communications and U Mobile Sdn; four WiMAX players – Asiaspace Sdn, Packet One Network (M) Sdn, REDtone International and YTL Communications Sdn Bhd; and a new entrant, a company said to be linked to Tan Sri Syed Mohkhar Al-Bukhary. A source said it was a matter of time before the remaining one or two players get their letters. This time around the Government wants to award the spectrum to all the wireless/cellular players so that they can have the additional spectrum that gives them more speed and capacity. (StarBiz) 

20100921 1001 Global Market News.

PRECIOUS-Gold hits record as investors seek safety
LONDON, Sept 20 (Reuters) - Gold hit a record high for the fourth day in a row on Monday, boosted by growing expectations for U.S. interest rates to remain exceptionally low as the economy struggles, while silver came in range of 30-year peaks.
Data on Friday showed Americans were at their most pessimistic in over a year this month, as growing fears about job security and finances undermined U.S. consumer sentiment and painted a muted picture of price pressures.

FOREX-Dollar struggles before Fed meeting, AUD shines
LONDON, Sept 20 (Reuters) - The dollar slipped broadly on Monday on speculation the Federal Reserve may flag the need to inject more stimulus into the struggling U.S. economy when it announces its latest policy decision on Tuesday.
The U.S. currency traded in a thin range against the yen due to a market holiday in Japan and as investors were cautious of taking big yen positions after Japan's intervention last week.

Dlr slips, gold hits peak; Fed signals eyed
LONDON, Sept 20 (Reuters) - The dollar slipped and gold hit a record high  as the possibility the Federal Reserve could signal further economic stimulus spurred demand for alternative assets.
"There is plenty of pressure on the Fed to put forward what they are going to do to stop the U.S. going into a double dip recession. It will be the main focus of the week and the market could go either way, we expect trading to be quite volatile," said Will Hedden, sales trader at IG Index.

20100921 0959 Soy OIl & Palm Oil Related News.

U.S. soy rises for 3rd day on Brazil weather concerns
SINGAPORE, Sept 21 (Reuters) -  U.S. soy rose around half a percent, rising for a third straight session to trade around 1-year highs as concerns dry weather may hurt the upcoming soy plantings in Latin America continued to underpin the market.
"There is drought in Russia, frost in China and Canada, dry weather in Western Australia and unusually dry conditions in South America."

OIL: Crude retreats ahead of Fed meeting
SINGAPORE, Sept 21 (Reuters) - Oil fell on Tuesday, resuming last week's trend and erasing part of the previous session's 1.6 percent gain, on lingering worries about the U.S. economy ahead of a U.S. Federal Reserve meeting later in the day.
Prices of U.S. crude on Monday tracked equities higher, but the gains came in thin trade, with the total number of contracts trading hands about 25 percent below the average volume over the last 30 days, according to Reuters data.

COMMODITY MARKETS: Markets end mixed after early rally
NEW YORK, Sept 20 (Reuters) - Commodities closed mixed on Monday after many markets rallied sharply in early trade, with a key sector index closing flat, dragged down off eight-month highs by losses in corn, coffee and other markets late in the session.
"At this point I don't think we are going to hear about the need. We may hear the Fed say they are ready, if necessary, but I don't think that they want to imply that things are getting worse," said Frank Lesh, broker and futures analyst with FuturePath Trading in Chicago.

GLOBAL MARKETS: Stocks rise on S&P 500 rally. dollar slips
NEW YORK, Sept 20 (Reuters) - World stocks jumped as the U.S. benchmark S&P 500 index broke above a key level on Monday, lifted by optimism over corporate news, but the dollar slipped on fears the struggling U.S. economy needs further stimulus.
"We've been waiting for this level to be penetrated, and breaching it makes it hard to be too negative right now," said Frank Gretz, market analyst and technician at Shields & Co in New York.

Soy product futures climbed in step with soybeans. Soyoil futures were the upside leader of the products, rising on borrowed strength from soybeans, crude oil and strong gains in world vegoil markets amid the threat of lower world vegoil supplies, analysts said. December soyoil settled 0.75 cents or 1.8% higher at 43.05 cents per pound. Speculative funds were estimated buyers of 3,000 lots in soyoil. December soymeal ended $1.70 or 0.6% higher at $310.20 per short ton. Speculative funds were estimated buyers of 1,000 lots in soymeal.(Source: CME)

Brazil's Soybean Sales Rise 1 Percentage Point - Celeres (Source: CME)
Brazil's sales for old and new soybeans crept ahead by 1 percentage point as of Friday, local agricultural consultancy Celeres said in a weekly report. For the upcoming 2010-11 crop, Celeres said in the report issued Monday that Brazil, the world's No. 2 soy producer after the U.S., had sold 15% of its crop as of Friday, up from 14% both in the previous week and at the same time a year earlier. Brazil's farmers often swap beans for other items such as seeds or fertilizers. For instance, farmers in Mato Grosso, Brazil's No. 1 soy-producing state, sold 22% of their 2010-11 soy as of Friday, versus 21% the week before and a year earlier, Celeres said. Mato Grosso's farmers are expected to begin planting their soybeans in mid-September. They typically harvest and sell their beans earlier than in other states. For the old 2009-10 soy crop, which ended harvesting in May, Brazil saw sales rise slightly to 88% as of Friday. This compared to 87% the week before and 93% at the same time a year earlier.
Farmers in Mato Grosso sold 98% of their soy as of Friday from 97% the week before and 98% a year earlier, Celeres said. Brazil is expected to have produced a record 68.5 million metric tons of soybeans for the 2009-10 crop season, compared with 57 million tons the previous crop year.

USDA Says 225,000 Tons Soybeans Sold To China in 2010-11 (Source:CME)
The U.S. Department of Agriculture on Thursday announced private export sales of 225,000 tons of soybeans to China, 165,000 tons of corn to South Korea and 110.000 tons of corn for delivery to unknown destinations in the 2010-11 marketing year. The soybean and corn marketing year both began Sept. 1. Often a U.S. exporter agrees to sell a commodity to an intermediary that has not yet settled the final foreign destination of the commodity. When that happens the U.S. exporter reports the sale to the USDA, which lists the destination as "unknown." U.S. exporters are required to report to the USDA sales of 100,000 tons or more of soybeans made in the same day to the same destination by 3 p.m. EDT the next business day.

Malaysia Sep. 1-20 Palm Oil Exports 906,688 Tons -Intertek(Source: CME)
Malaysia's palm oil exports during the Sept. 1-20 period rose 5% on month to 906,688 metric tons, cargo surveyor Intertek Agri Services said Monday. The European Union was the biggest buyer of Malaysian palm oil, followed by China and the Indian subcontinent; they purchased 212,345 tons, 211,782 tons and 179,192 tons, respectively. Intertek estimated exports at 863,289 tons during the Aug. 1-20 period.

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.

Surge on weather anxieties; inflation eyed
KUALA LUMPUR, Sept 20 (Reuters) - Global vegetable oil markets surged  as investors took positions on concerns a dry spell may curb grain output in the Americas.
"Compared to other vegetable oils, China palm oil is mainly dominated by funds and there's still room for the price to increase," said Zhang Juan Cong, an oil analyst with Dadi Futures in Zhejiang province.

China soyoil row hits Argentine crush margins
BUENOS AIRES, Sept 17 (Reuters) - China's boycott of Argentine soyoil means soy processors in Argentina are suffering negative crush margins and exporting more beans than usual, an industry group executive said on Friday.
The Asian country, the world's top soyoil importer, halted exports from No. 1 global exporter Argentina in April in retaliation for anti-dumping measures on some Chinese manufactured goods.