Thursday, September 23, 2010

20100923 1842 FCPO EOD Daily Chart Study.

FCPO closed : 2671, changed : -2 points, volume : lower.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : weakening, buyer reducing exposure.
Support : 2670, 2650, 2620 level.
Resistant : 2700, 2720, 2750 level.
Comment :
2 ticks lower FCPO traded in quiet volume transaction despite a break new high soy oil futures prices hinted that there is no follow through by buyer that seems reluctant push the price higher. Daily chart formed the third consecutive down bar candle with the Bollinger band turning inwards indicate that the market still having a correction range bound upside biased market reading.On the other hand, there is a potential negative divergence forming between price and the MACD Histrogram.
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.

20100923 1819 FKLI EOD Daily Chart Study.

FKLI closed : 1450.5, changed : -25.5 points, volume : higher.
Bollinger band reading : correction range bound, upside biased.
MACD Histrogram : getting lower, seller testing market with buyer reducing exposure.
Support : 1445, 1425, 1405 level.
Resistant : 1458, 1470, 1500 level.
Comment :
FKLI plunged lower badly in higher volume traded after opened and tested little higher followed by seller selling activities testing the market triggered buyer to reduce their position letting price to closed near the low of the day. Daily chart wise, market formed a wide range down bar candle testing support level near middle Bollinger band and the reading remained unchanged calling for a correction range bound upside biased market testing lower support level.
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.

20100923 1445 Local & Global Economic News.

Malaysia: Inflation accelerates to fastest pace in 15 months
Malaysia’s inflation rate climbed in August to the highest level in 15 months, a gain that may put pressure on the central bank to consider resuming interest-rate increases after pausing this month. Consumer prices rose 2.1% from a year earlier after gaining 1.9% in July, the Putrajaya, Malaysia-based statistics department said. (Bloomberg)

Thai: Exporters seek more measures to curb baht’s gain
Thailand’s plan to ease restrictions on fund outflows may not be enough to stem an appreciation in the baht that threatens to slow growth in overseas shipments, exporters and trade groups said. The central bank will allow companies to invest and lend more abroad and give them more flexibility when repatriating overseas earnings, moves aimed at alleviating pressure for the baht to appreciate from its strongest level in 13 years. (Bloomberg)

Japan: BOJ flags ‘downside’ risks for economy as yen rises
Top Bank of Japan officials flagged rising risks to the nation’s growth as the yen climbed in the aftermath of the US Federal Reserve signaling willingness to consider more monetary stimulus. “We’re entering a situation where we need to pay more attention to downside risks,” board member Ryuzo Miyao said. Governor Masaaki Shirakawa said that the central bank needs to monitor risks to Japan’s economy, exports, and corporate profitability. (Bloomberg)

China: Structure, not yuan, causes trade surplus, Wen says
Chinese Premier Wen Jiabao said the yuan’s value isn’t causing the US trade deficit with his country, rejecting President Barack Obama’s assessment that China is keeping the currency cheap to aid exports. “The main cause of the US trade deficit is not the exchange rate of the Chinese currency, but the structure of investment and savings,” he said. (Bloomberg)

UK: 2011 GDP growth forecast cut as budget squeeze looms
The UK economy will grow slower than previously forecast next year as the biggest public spending squeeze since World War II takes hold, the Confederation of British Industry said. GDP will rise 2% next year, down from a forecast in June of 2.5%, and the Bank of England won’t raise interest rates until the second quarter, the UK’s biggest business lobby said. (Bloomberg)

UK: BOE must raise interest rate slowly, Sentance says
Bank of England policy maker Andrew Sentance reiterated that the central bank should raise its benchmark interest rate “slowly” to combat inflation as the British and world economies avoid a double-dip recession. “The bank needs to gradually move interest rates up in a slow way which will not destabilize business confidence,” he said. (Bloomberg)

EU: Europe consumer confidence rises less than forecast
European consumer confidence improved less than economists forecast in September, adding to signs the region’s recovery is losing momentum. An index of consumer sentiment in the 16-nation euro region rose to minus 11.2 from a revised minus 11.4 in August, the Brussels-based European Commission said. (Bloomberg)

US: Fed’s inflation concern broadens easing rationale
The Federal Reserve moved closer to a second wave of unconventional monetary easing and said for the first time that too-low inflation, in addition to sluggish growth, would warrant taking action. The Federal Open Market Committee’s statement that inflation is “somewhat below” levels consistent with its congressional mandate for stable prices pushed yields on two-year Treasuries to a record low. (Bloomberg)

20100923 1430 Malaysia Corporate News.

Announcement on loan-to-value ratio very soon
BNM is expected to make an announcement on the loan-to-value ratio for mortgages very soon, according to a source. “Genuine home buyers need not worry as it will most likely be implemented on buyers making their third and subsequent house purchases, and be confined to specific locations and prices,” said the source. (StarBiz)

TNB keen on Manjung block 2 TNB is interested in bidding for the second block of the 1,000MW coal-fired power plant in Manjung if it is given the opportunity to participate, its CEO Datuk Che Khalib Mohamad Noh said. The Government had in August offered TNB to develop the first unit at its present power plant site in Majung, Perak. TNB is reported to have said the plant was expected to start operations on March 2015. (StarBiz)

Al Aqar KPJ REIT to acquire Aussie property for RM134.9m
The Al Aqar KPJ REIT has proposed to acquire properties in Queensland, Australia from Jeta Garden Waterford Gardens Trust for RM134.9m. The properties covered 14.7ha, consisting an integrated gated residential estate for older people which includes an aged care complex with care facilities known as Jeta Gardens Aged Care Facility, 23 villas and 32 apartments known as Jeta Gardens Retirement Village, and an undeveloped portion of the land. (Financial Daily)

Maxis upbeat on higher non-voice ops revenue
Maxis expects its non-voice operations to contribute 50% of its total revenue in the next one or two years. "We intend to continue setting new standards in mobile content, while simultaneously enabling seamless delivery to our customers through innovation device offerings and a modernized network," its head of products, devices, and innovation T. Kugan said. (BT)

Tan Chong to expand presence in Indochina
Tan Chong Motor Holdings’ wholly-owned subsidiary ETCM (V) Pte Ltd has proposed to acquire 74% charter capital of Nissan Vietnam from Kjaer Group for RM22.9m cash to further expand its presence in Indochina. It would complete the group’s Indochina strategy in terms of geographic coverage, given that it had earlier been appointed the sole and exclusive distributor of Nissan vehicles in Cambodia and Laos. (StarBiz) 

CIMB awaiting approval from Thai on double tax
CIMB Group is now awaiting approval from the Thai authorities on the double tax issue relating to its proposed dual listing exercise in Thailand. "We are the first do dual listing in Thailand. So, there are some issues to iron out, in particular those relating to double tax between Malaysia and Thailand," its group chief executive Datuk Seri Nazir Razak told. (Bernama)

20100923 1246 Global Market News.

GLOBAL MARKETS: Fed, tech shares push stocks, dollar lower
NEW YORK, Sept 22 (Reuters) - The dollar fell against other major currencies and major stock markets declined on Wednesday as some technology companies slumped and the Federal Reserve's downbeat assesment of the U.S. economy weighed on sentiment.
"Investors are realizing things will have to deteriorate first in the economy before the Fed is going to intervene," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels.

Stocks, bonds climb on Fed easing view
HONG KONG, Sept 22 (Reuters) - Expectations that the Federal Reserve is closer to printing more money to support the U.S. economy lifted stocks and bonds , while the dollar hit a six-week low against the euro on a dwindling yield advantage.
"The big beneficiary of more QE will be Treasuries," said Andrew Pease, senior investment strategist with Russell Investments in Sydney.

20100923 1245 Soy Oil & Palm Oil Related News.

Barely move with China markets shut; weather eyed
KUALA LUMPUR, Sept 22 (Reuters) - Malaysian palm oil and its rival U.S. soyoil made little headway  as traders waited for more news on weather in key grain producing regions in the Americas and Asia.
"There is a larger concern on frost sweeping across Canada and hurting canola that competes with palm oil and soyoil," said a regional vegetable oils trader in Singapore.

Oil World sees ample global soybean supplies
HAMBURG, Sept 21 (Reuters) - Global soybean supplies in the new 2010/11 season are likely to be ample with a smaller crop still exceeding consumption and weaker prices likely, Hamburg-based oilseeds analysts Oil World said on Tuesday.
Oil World has raised its forecast of the global 2010/11 soybean crop by 1.7 million tonnes from its previous August estimate to 258.92 million tonnes, above forecast global consumption of 256.40 million tonnes.

Biofuels to keep edible oil supply tight-Oil World
HAMBURG, Sept 21 (Reuters) - Rising global biofuel production will keep global vegetable oil supplies tight in coming months, possibly keeping prices high, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
"In a number of countries, governments continue to step up their biodiesel targets, mostly enforced by mandates, and largely regardless of the feedstock availability and the repercussions on prices," Oil World said.