Friday, September 24, 2010

20100924 1819 FCPO EOD Daily Chart Study.

FCPO closed : 2701, changed : +30 points, volume : higher.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : turned upward again, buyer defended well.
Support : 2700, 2670, 2650 level.
Resistant : 2720, 2750, 2770 level.
Comment :
FCPO recorded gained with improved volume transaction after Indonesia announced increased of export tax to 7.5% for the month of October 2010 plus a higher soy oil futures price.
Daily chart formed an up bar candle marching towards upper Bollinger band with the reading still suggesting a side way range bound 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.

20100924 1739 FKLI EOD Daily Chart Study.

FKLI closed : 1450.5, changed : unchanged, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : getting lower, seller taking small exposure as buyer playing defending.
Support : 1445, 1425, 1405 level.
Resistant : 1458, 1470, 1500 level.
Comment :
FKLI ended unchanged after opened little higher and tested lower support level but buyer came in to support the market lifted price to recovered. Daily chart formed a long lower shadow doji bar candle after price break below and closed right at the middle Bollinger band support level. Outlook switch into a side way range bound market reading testing support and resistant 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.

20100924 1315 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1446, changed : -4.5 points, volume : high.
Bollinger band reading : downside biased.
MACD Histrogram : recovering, buyer closing position with seller testing market.
Support : 1445, 1425, 1405 level.
Resistant : 1458, 1470, 1500 level.
Comment :
FKLI continue to head south after opened higher, tested support and resistant level but still ended lower as buyer closing position with seller testing market strength. Hourly chart shows market continue to trade near lower zone of the Bollinger band with the reading turned into suggesting a downside biased market development.

20100924 1300 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2687, changed : +16 points, volume : low.
Bollinger band reading : side way range bound.
MACD Histrogram : recovering, low participation from buyer and seller.
Support : 2670, 2650, 2620 level.
Resistant : 2700, 2720, 2750 level.
Comment :
Thin volume transaction FCPO traded higher in tight 14 points range market. Daily chart shows a boring market as price opened higher and moving along the flat middle Bollinger band. Reading wise, market is likely to stay side way range bound for a while.

20100924 1113 Global Economics News.

Singapore: Inflation rate climbs to 18-month high
Singapore’s inflation accelerated to an 18-month high as record economic growth in the first half of the year spurred demand for goods and services, sustaining pressure on the central bank to allow currency gains. The consumer price index climbed 3.3% in August from a year earlier, Singapore’s Department of Statistics said. That matched the median estimate of 10 economists surveyed by Bloomberg News. (Bloomberg)

Taiwan: Industrial output rises as joblessness falls
Taiwan’s industrial production rose more than estimated, gaining for a 12th straight month, while the jobless rate fell to a 20-month low, increasing the central bank’s scope to boost borrowing costs. Output advanced 23.4% in August from a year earlier, after rising a revised 20.93% in July, the Ministry of Economic Affairs said. The median of 11 estimates in a Bloomberg News survey was for a 21.6% increase. (Bloomberg)

China: Wen warns 20% yuan gain would cause ‘major’ upheaval
Chinese Premier Wen Jiabao said a 20% rise in the yuan would cause severe job losses and trigger social instability, putting the nation on course for a clash with US lawmakers demanding a stronger currency. “We cannot imagine how many Chinese factories will go bankrupt, how many Chinese workers will lose their jobs, and how many migrant workers will return to the countryside” should China acquiesce to demands for a 20% to 40% gain, Wen said in New York. “China would suffer major social upheaval.” (Bloomberg)

EU: European services, manufacturing growth weakens
Growth in Europe’s services and manufacturing industries weakened more than economists forecast in September, adding to evidence the recovery in the region is losing steam. A composite index based on a survey of euro-area purchasing managers in both industries declined to 53.8 from 56.2 in August, London-based Markit Economics said. Economists expected a reading of 55.7, according to the median of 15 forecasts in a Bloomberg News survey. A reading above 50 indicates expansion. (Bloomberg)

US: Existing home sales, leading index rise
Sales of US previously owned homes climbed from a record low in August and a gauge of the outlook for the economy increased, confirming the Federal Reserve’s forecast for a “modest” pace of expansion. Purchases of existing houses climbed to a 4.13m annual pace, the second-lowest on record, the National Association of Realtors said. The New York- based Conference Board said its index of leading economic indicators rose 0.3%, exceeding forecasts. (Bloomberg)

20100924 1112 Malaysia Corporate News.

Malaysia promoted to ‘Advanced Emerging Market’
FTSE Group has promoted Malaysia to its Advanced Emerging Market status in the FTSE Global Equity Index Series. All Malaysian indices and sub-indices would migrate from June next year. Malaysia was previously ranked Secondary Emerging Market indices, Bursa Malaysia said in a statement yesterday. Meanwhile, Securities Commission chairman Tan Sri Zarinah Anwar in a statement said the move underlined the global recognition of the regulatory framework of the Malaysian capital market and could lead to greater international participation in the Malaysian market. (Starbiz)

Bursa gets SEC recognition
Bursa Malaysia has been recognised as a designated offshore securities market by the US Securities and Exchange Commission under Regulation S of the US Securities Act 1933. In a statement, Bursa Malaysia said US-based investors would be able to trade in all securities listed on Bursa Malaysia and Malaysian shelf-listed bonds on Bursa Malaysia Bonds, so long as they satisfy the conditions of Regulation S. “While we already have the attention of key institutional investors from US in this market, having this designation will ease trading processes for those investors based in United States. Prior to this, US-based investors who purchased or sold securities must take their own measures to ascertain that the purchaser is located outside the US as per the regulation requirements from the US federal securities laws unless the transaction is done via a designated offshore securities market and trades are not pre-arranged. With this designation, US based investors would now be able to trade the Malaysian securities market without the registration requirements imposed by the US federal securities laws. (Starbiz)

Sarawak government bids for Bakun
The Sarawak state government’s utility firm Sarawak Energy has emerged as one of three bidders vying to buy the Bakun hyrdroelectric project from the federal government, offering about RM6.3bn. Sarawak Energy has submitted its proposal to the Bakun project’s owner Sarawak Hidro SB, a wholly owned subsidiary of the Minister of Finance. Sarawak Energy has also appointed consultants to undertake technical due diligence on the 2,400-megawatt (MW) capacity Bakun hydroelectric dam. The due diligence is expected to begin next month. (FinancialDaily)

Medical ad rules relaxed
More than 7,000 private clinics and 200 private hospitals nationwide can now advertise their services effective today. The move is aimed at promoting medical tourism in the country. The Health Ministry is also allowing these medical establishments to put up banners announcing the opening of new facilities, albeit for a limited period, and advertising overseas on condition they comply with the countries’ requirements. Previously, advertisements were only confined to health magazines, directories, leaflets and billboards while press advertisements were limited to congratulatory messages. (NST)

Proton rules out Lotus sale
National carmaker Proton Holdings has ruled out selling Lotus Group International Ltd at any price for now, but will focus instead on turning around the British high-performance car manufacturer, its chief said. This is despite Proton receiving three unsolicited offers, including one from the current Lotus management led by Dany Bahar, to take up a stake in the loss-making subsidiary, Proton chairman Datuk Seri Nadzmi Mohd Salleh said. It was reported that Lotus had received RM290m cash from Proton. In another report quoting Nadzmi, Lotus was said to need RM500m more over the next two years to develop new models. (BT)

August vehicle sales up 12.8%
Malaysian automotive sales and production for August rose in annual terms, as players ramped up output and sold more vehicles ahead of the Hari Raya Aidifitri celebrations. The Malaysian Automotive Association said vehicle sales climbed 12.8% to 55,208 units from 48,937 units a year earlier. Cumulative sales for the eight months rose 16.5% to 409,806 vehicles from 351,846 units in the same period last year. (FinancialDaily)

PLUS finalising funding details
The proposed four-lane Jetpur-Somnath highway project in Gujarat, India, secured by PLUS Expressways and its joint bidding partner, IDFC Projects Ltd, is estimated at INR950 crores (100 rupees = RM6.78). PLUS said the concession period had been fixed at 30 years. The company and its partner are finalising the funding details of their special purpose vehicle that will undertake the project. The proposed project forms a section of 127.6km National Highway 8D, which starts at Jetpur and ends at Somnath. The scope of work includes rehabilitation, upgrading and widening the existing carriageway. (BT)

DXN sets 50pc dividend policy
DXN Holdings Bhd has set a dividend policy of at least 50% of its net profit to shareholders, with immediate effect. DXN, which is involved in the cultivation, manufacturing and marketing of health food supplements, said the dividend will be paid on a quarterly basis. “Based on the performance of the group, the company is of the opinion that it has the financial capability to meet the dividend policy,” DXN told Bursa Malaysia yesterday. (BT)

Kulim disposes of entire stake in Natoleo
Kulim (M) yesterday said it had completed the disposal of its entire equity in Natural Oleochemicals SB (Natoleo) comprising 186.56m shares for RM450m. (BT)

20100924 1107 Global Market News.

Tropical Storm Matthew heads for Central America
MEXICO CITY, Sept 23 (Reuters) - Tropical Storm Matthew formed over the western Caribbean on Thursday and was expected to hit Central America as early as Friday, the U.S. National Hurricane Center said.
The storm, which had maximum sustained winds of 45 mph (75 kph), could disrupt the coffee harvest due to begin early next month in major regional exporters Honduras and Guatemala.

Corn drops for 5th day, soy steady near 1-yr high
SINGAPORE, Sept 24 (Reuters) - Chicago corn futures lost more ground, taking weekly losses to more than 3 percent, as poor U.S. exports pressured the market, while soybeans were little changed, trading near 1-year highs on strong demand.
"Funds are record long in corn and I think the market is little bit fearful what happens if we see fund liquidation," said Brett Cooper, a senior markets manager at FCStone Australia.

Gold steady; renewed economic concerns support
SINGAPORE, Sept 24 (Reuters) - Gold prices were steady as disappointing data from the U.S. and Europe renewed concerns over the economic recovery, keeping market sentiment supported.
"In real terms it's hard to say gold prices are too high. I think the price will be quite sticky at these levels. From an investment perspective we are starting to see some substitution of gold for silver. In the other metals palladium may also benefit as a cheaper alternative to gold," Ben Westmore, commodities economist at National Australia Bank.

Yen dips, Japan stocks rise on intervention talk
TOKYO/HONG KONG, Sept 24 (Reuters) - The yen dropped on Friday, driven by rumours Japan was intervening for the second time this month to weaken it, while Japanese equities cut their losses on strength in exporter stocks.
"Given that this would be the second time (for intervention) and not as much of a surprise, I think the impact would be pretty limited at best. Even now, it seems tough for the dollar to hang onto the 85 yen level, and this will make it hard for the Nikkei to rise substantially in turn," said Masayoshi Okamoto, head of dealing with Jujiya Securities in Tokyo. 

GLOBAL MARKETS: Stocks slide, bonds rise as data fails to inspire
NEW YORK, Sept 23 (Reuters) - Global stocks fell and bond prices rose on Thursday as lackluster U.S. and euro zone economic data rekindled worries over growth prospects in the developed world.
"Market technicians had been very positive on our breaking out of that range, so falling back under it added to the decline we saw and accelerated our losses," said John Stoltzfus, senior market strategist at Ticonderoga Securities in New York.

PRECIOUS-Gold holds near record high on currency fears
LONDON, Sept 23 (Reuters) - Gold held near record highs on Thursday, eyeing a breach of $1,300 an ounce, while silver flirted with 30-year peaks as the threat of currency devaluation lifted interest in the metals as a safe store of value.
Spot gold  was bid at $1,291.85 an ounce at 0939 GMT, against $1,289.60 late in New York on Wednesday. U.S. gold futures for December delivery  rose 60 cents to $1,292.70.

FOREX-Dollar steadies after Fed-induced fall, kiwi down
LONDON, Sept 23 (Reuters) - The dollar steadied on Thursday after sharp selling the previous day when the U.S. Federal Reserve hinted at more easing, pushing Treasury yields down and keeping the greenback pinned near a five-month low on the euro.
Market players sold dollars as they positioned for more U.S. quantitative easing later this year.

Stocks, euro slip on euro zone concerns
LONDON, Sept 23 (Reuters) - World stocks slipped  while the euro fell broadly as a survey showed a slowdown in  growth of the euro zone services and manufacturing sectors and concerns intensified about the region's banks.
"The bottom line is that growth momentum continues to moderate," said Marco Valli, economist at UniCredit.

20100924 1105 Soy Oil & Palm Oil Related News.

Soy product futures ended mixed with soyoil climbing at the expense of soymeal on strong export demand. The market is garnering strong demand from China, with firm crude oil prices and fears of tightening world vegoil supplies buoying prices as well, analysts said. Soymeal slipped lower on oil/meal spreading. December soyoil settled 0.64 cents or 1.5% higher at 43.90 cents per pound. December soymeal ended $0.90 or 0.3% lower at $309.50 per short ton.(Source:CME)

Informa Cuts 2010 US Corn, Soy Output Estimates-Traders(Source:CME)
Private analytical firm Informa Economics cut its forecasts for U.S. corn and soybean production as the harvests advance. Informa pegged 2010 corn output at 12.88 billion bushels, below its early September estimate for a final crop of 13 billion, traders said. The firm estimated 2010 soybean output at 3.412 billion bushels, compared with an earlier projection of 3.437 billion, they said. Results from the early corn harvest have been disappointing and encouraged talk of a smaller-than-expected crop. The U.S. Department of Agriculture on Sept. 10 estimated corn production at 13.16 billion bushels. Early soybean harvest results have been strong, but Informa said Thursday that it was lowering its estimate for 2010 soybean acres, according to traders. The USDA on Sept. 10 pegged the soybean crop at 3.483 billion bushels.
The USDA is set to update its production estimates in a crop report due Oct. 8. As of Sunday, 18% of corn was harvested, above the five-year average of 10%, and 8% of soybeans were harvested, above the five-year average of 6%, according to the government. Informa estimated 2010 all-wheat production at 2.224 billion bushels, compared to USDA's September estimate of 2.265 billion, traders said. The government is expected to update its wheat production estimate in a small grains report Sept. 30. Informa also issued estimates for 2011 crop plantings, traders said. Reduced corn output expectations recently sparked a rally in corn prices and encouraged talk about the need for soybean prices to rise to compete for acreage. The firm projected 2011 corn plantings at 90.4 million acres and soybean plantings at 77.4 million acres, traders said. Informa estimated 2011 all-wheat plantings at 57 million acres and cotton plantings at 11.05 million acres, they said.
The USDA in June estimated 2010 corn plantings at 87.9 million acres and soybean acres at 78.9 million. The government pegged 2010 all-wheat plantings at 54.3 million and cotton plantings at 10.9

Palm Oil Body RSPO: Indonesia's Smart Has Breached Policies(Source:CME)
The Roundtable On Sustainable Palm Oil, an industry organization that groups palm producers, environmental groups and food companies, said that Indonesia-based Sinar Mas Agro Resources & Technology (SMAR.JK) has breached its policies and that the firm's membership in the group is at risk. "Members who have been found to not be in compliance and who continue to be in noncompliance with the RSPO regulations could ultimately face sanctions, including the suspension and, eventually, the termination of their membership of the RSPO," it said. The comments by RSPO could diminish Smart's hopes that global conglomerates could resume purchases of palm oil products from the company. Global food giants Nestle SA (NESN.VX) and Unilever NV (UN), as well as U.S.-based fast food chain Burger King Holdings Inc. (BKC), are on the long list of food companies that has suspended sourcing of palm oil from Smart in response to claims by Greenpeace that the producer is involved in deforestation.
Responding to RSPO's comments, Daud Dharsono, president director at Smart, said the company was committed to sustainable palm production and "will work towards RSPO's requirements." In August, Smart issued results from an independent audit--carried out by the Control Union Certification and the British Standard Institute--refuting charges by environmental group Greenpeace that it had cleared large swathes of land with high conservation value and drained peat lands to cultivate palm crop. Smart said the audit provided evidence that "the firm had operated responsibly and within the laws and regulations set out by the Indonesian government," but BSI said subsequently that some aspects of its report were misreported, and that Smart had set up plantations on deep peat in two estates. RSPO said on its website that its grievance panel had written to Smart and its parent firm, the Singapore-listed Golden Agri Resources Ltd (E5H.SG), about the breaches revealed by the auditors. Golden Agri is not a member of the RSPO.
RSPO also urged Golden Agri to stop announcing publicly it was in the process of obtaining RSPO certification for its estates or that it planned to become a RSPO member. "Golden Agri is not a member of the RSPO, nor has the RSPO yet received a membership application from the company. The panel encourages Golden Agri to submit a full and complete application for membership (and) documentation RSPO would need in order to review the application," the agency said.

Boosted by adverse weather; eye industry meet
KUALA LUMPUR, Sept 23 (Reuters) - Global vegetable oil markets made a little headway  on concerns over erratic weather curbing grain harvests across the globe.
"Weather problems in Canada, South Americas, China and Ukraine giving support to grain complex, especially corn and soy," said a trader in Kuala Lumpur. "Indirectly, soyoil is rallying."

Adani Wilmar to more than double soymeal exports
MUMBAI, Sept 23 (Reuters) - India's Adani Wilmar, the second-biggest edible oil importer in the country, aims to double its soymeal exports to 1.2 million tonnes in 2010/11 on higher availability of seeds.
"Certainly, we will export more soymeal in 2010/11, last year we had exported 500,000 tonnes. This year we will export 1.2 million tonnes," Pranav Adani, managing director told reporters on Thursday.

Brazil's southern soy states to see rain - Somar
SAO PAULO, Sept 22 (Reuters) - Heavy rainfall is beginning to roll through Brazil's southern soybean producing states, but widespread moisture is not seen in Brazil's early planting center-west region until early October, Somar meteorologists said Wednesday.
Brazil's official soy planting season began on Sept. 15 but dry weather as a result of La Nina has pushed back the planting date for two to three weeks in the No. 1 soybean growing state of Mato Grosso, according to present Somar forecasts.

Weather, festive demand stoke China's soyoil appetite
KUALA LUMPUR, Sept 23 (Reuters) - China's recent big buy of U.S. soyoil heralds a scramble for even more cargoes as domestic supplies shrink on strong festive demand and crops are hit by erratic weather.
The world's second-largest consumer of vegetable oil could buy 5 to 10 percent more soyoil in 2010 than the 2.4 million tonnes it bought last year, with purchases picking up in the second half as traders fret that cold weather may shrivel the domestic soy crop.

Argentine crops seen threatened by La Nina
CHICAGO, Sept 22 (Reuters) - The strengthening weather formation known as La Nina is causing concerns about the upcoming South American growing season for wheat, corn and soybeans, a U.S. agricultural meteorologist said on Wednesday.
"I would be very concerned about Argentina. They did pick up some significant rains this month which benefited the winter wheat crop. However, La Nina correlates quite well with drought in central Argentina," Mike Palmerino, agricultural meteorologist for Telvent DTN, told the Reuters Global Ags Forum, an online chatroom for grain traders.