Thursday, September 30, 2010

20100930 1848 FKLI EOD Daily Chart Study.

FKLI closed : 1464.5, changed : +5.5 points, volume : low.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : reversed upward, buyer seems eager to stay.
Support : 1458, 1445, 1425 level.
Resistant : 1470, 1485, 1500 level.
Comment :
FKLI expired recorded gain in low volume participation rebounding from the middle Bollinger band level. Daily chart formed a small body up bar candle traded side way range bound along middle Bollinger band level with the reading suggesting a side way range bound little 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.

20100930 1846 FCPO EOD Daily Chart Study.

FCPO closed : 2730, changed : +32 points, volume : high.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : getting weaker, buyer reducing exposure.
Support : 2720, 2700, 2670, 2650 level.
Resistant : 2750, 2770, 2800 level.
Comment :
FCPO recovered most of  yesterday losses recorded gain in increasing volume transaction after both ITS and SGS export cargo surveyor released improved month to month export data. Daily chart shows that market still traded range bound within a narrowing Bollinger band indicates that market is still in consolidation mode  with the reading suggesting a correction range bound upside biased market development.
When to buy : buy at support or weakness with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100930 1545 Local & Global Market News.

Malaysia: Ringgit hits new high against the greenback
The Ringgit rose to a fresh 13-year high against the ailing USD yesterday, tracking gains by other regional currencies, as the prospect of stronger economic growth fuelled speculation of further inflows from overseas funds. The Ringgit was traded at 3.0846 against the greenback yesterday, the strongest level since October 1997. (Starbiz)

Taiwan: To weigh interest rate amid property threat
Taiwan’s central bank may discuss raising its benchmark interest rate tomorrow for the second time this year after the island’s economic recovery and the threat of a property bubble added to the case for higher borrowing costs. Governor Perng Fai-nan will increase the benchmark by 0.125 percentage point to 1.5% after the policy board meets, according to 11 of 14 economists surveyed. (Bloomberg)

China: Manufacturing accelerates for a second month
Manufacturing accelerated in China for a second straight month in September, adding to signs the fastestgrowing major economy is stabilizing after policy makers curbed lending in an effort to avert asset bubbles. The purchasing managers’ index released rose to 52.9, the highest level in five months, from 51.9 in August. The data are seasonally adjusted and readings above 50 indicate an expansion. (Bloomberg)

Spain: Credit rating set for Moody’s cut on economy
Spain’s top AAA credit rating, held since 2001, probably will be cut one level by Moody’s Investors Service as the Euro region’s fourth-biggest economy struggles to grow, according to investors managing about USD700bn. Five out of eight money managers surveyed predicted a one-step reduction to AA1, with the rest forecasting a two-level cut to AA2. The decision may come this week after Moody’s put Spain’s debt on review for a possible downgrade on 30 June, saying it would conclude the analysis within three months. (Bloomberg)

EU: European economic confidence unexpectedly improves
European confidence in the economic outlook unexpectedly improved this month as executives and consumers weathered tougher government budget cuts by countries struggling to convince investors that they won’t need external aid. An index of executive and consumer sentiment in the 16 euro nations rose to 103.2, the highest since January 2008, from a revised 102.3 in August, the European Commission in Brussels said. (Bloomberg)

US: Fed presidents far from unanimous on need for further easing
Regional Federal Reserve presidents showed they’re far from unanimous on whether the central bank should try to boost flagging US growth with a second round of unconventional monetary easing. The range of views shows that if Chairman Ben S. Bernanke aims to restart Treasury purchases in November, as some economists project, he may have to do so over the objections of several central bank officials. (Bloomberg)

20100930 1544 Malaysia Corporate News.

AZRB likely to bag RM300m hospital job
AZRB has emerged as the frontrunner to win a RM300m job to build a 300-bed hospital in Kuantan, Pahang for Universiti Islam Antarabangsa, sources said. It is understood that the authorities are now at the final stage of awarding the project and the Terengganu-based construction outfit is likely to bag the job. (Financial Daily)

 Iskandar may get new CEO
Datuk Syed Mohamed Ibrahim, the property head at DRB-HICOM, is slated to join Iskandar Investment as its CEO, replacing Arlida Ariff who currently holds the post. Arlida's contract expires at the end of this year and it is believed that her term will not be extended, sources said. (BT)

Maybank sees bigger foreign contribution
Maybank expects its international operations from countries such as Singapore and Indonesia to contribute 40% to the group’s net profit by 2015. For the financial year ended 30 June, 2010, international operations contributed 21% to the group’s net profit. (StarBiz)

Sumitomo ventures into Sarawak aluminium smelter project
Sumitomo Corp will take part in an aluminium smelting project in Sarawak via its proposed acquisition of a 20% stake in Press Metal’s unit Press Metal Sarawak SB. The capacity of the plant is 120,000 tonnes per year and will be completed by end of 2010. Total investment is USD300m. (Financial Daily)

MAS sees new aircraft delivery next month
MAS is expected to take delivery of 35 Boeing 737-800 aircraft next month. Its senior general manager in sales and marketing Datuk Bernard Francis said some of the aircraft would be based at KLIA and MAS would increase flights to South Asia, Asean and China. (StarBiz)

Tanjung unit gets extension
Tanjung Offshore wholly-owned subsidiary, Tanjung Offshore Services SB has been approved and awarded a contract extension by Petrofac (Malaysia PM-304) Ltd that is valued at RM110m. The contract extension was for the provision and supply of mobile offshore production unit for Cendor Field, Block PM-304 for an extended period effective 24 Sept to the second quarter of 2013. (StarBiz)

Kimlun awarded RM70m project
Kimlun Corp wholly-owned subsidiary Kimlun SB was awarded a RM70m contract for the construction of main building works for Marlborough College East in Mukim Pulai, Iskandar Malaysia. The contract was awarded by MRCB’s wholly-owned unit, MRCB Engineering SB. (StarBiz) 

20100930 1530 Global Market News.

Dollar stuck near lows, Asian stocks slip
HONG KONG, Sept 30 (Reuters) - The dollar was stuck near an eight-month low, ground down by expectations of more Federal Reserve easing, while Asian stocks pulled back slightly from a two-year high as markets took a breather from September's strong rally.
The dollar is down 8.5 percent this quarter against a basket of world currencies, its worst quarter in over eight years, as a sluggish economy and stubbornly high unemployment levels have fueled expectations of another round of asset buying by the Fed.

OIL: Crude steady after 2 pct gain on EIA data
TOKYO, Sept 30 (Reuters) - U.S. crude futures stood little changed on Thursday to hold a gain of more than 2 percent from a day earlier, helped by data showing a drop in U.S. crude and product inventories.
A tightening in product stockpiles -- just as U.S. refiners were stepping up seasonal maintenance and with more than a month to go before the hurricane season winds down -- prompted traders to bid up prices.

GLOBAL MARKETS: Dollar sags as monetary stimulus seen in pipeline
NEW YORK, Sept 29 (Reuters) - Rising expectations that central banks will step up monetary stimulus to support fragile economies drove the dollar to a five-month low against the euro on Wednesday and helped gold extend its record-breaking rally.
"The dollar currently is in a 'lose-lose' situation where if U.S. data is disappointing, it increases the prospects of Fed easing, and that weighs on U.S. rates and the dollar," said Brian Dolan, chief currency strategy at in Bedminster, New Jersey.

PRECIOUS-Gold hits record highs in anticipation of more QE
LONDON, Sept 29 (Reuters) - Gold prices rallied to record highs in Europe on Wednesday on fears moves by the Federal Reserve to tackle the sluggish U.S. economy would undermine the dollar, boosting investment in bullion as an alternative asset.
Spot gold hit a record $1,313.20 and was bid at $1,308.60 an ounce at 0953 GMT, against $1,307.40 late in New York on Wednesday. U.S. gold futures for December delivery rose $1.80 an ounce to $1,310.10.

FOREX-Dollar toils on rising expectations of more Fed easing
LONDON, Sept 29 (Reuters) - The ailing dollar fell more on Wednesday as sliding U.S. Treasury yields and below-forecast U.S. data fuelled expectations that U.S. monetary policy would need to be further relaxed.
Mounting speculation that the U.S. Federal Reserve could embark on a second round of quantitative easing (QE) knocked the dollar to a five-month low against the euro and a two-year trough against the Australian dollar.

Dollar hits lowest since Jan, bracing for QE
LONDON, Sept 29 (Reuters) - The U.S. dollar extended its steep decline on Wednesday, clocking losses of more than five percent for the month, as investors prepared for the Federal Reserve to print more money to lift the weakening U.S. economy.
Mounting speculation the Fed will embark on a second round of quantitative easing -- expanding its balance sheet to buy bonds and others assets -- to prevent a double-dip U.S. recession sent the dollar to a five-month low against the euro and a two-year trough against the Australian dollar.

Asian stocks at 2-yr high, dollar on defensive
HONG KONG, Sept 29 (Reuters) - Asian stocks hit a two-year high and the dollar was stuck near a seven-month low after poor U.S. data reinforced expectations the U.S. Federal Reserve will take more action to help the struggling economy.
"The Nikkei's rising on the slightly weaker yen, and there's also probably some window-dressing ahead of the end of the first half of the business year," said Norihiro Fujito, general manager at Mitsubishi UFJ Morgan Stanley Securities.

20100930 1529 Soy Oil & Palm Oil Related News.

ITS export up 21.3% to 1,479,602 tonnes for the period of 1~30 Sep 2010
SGS export up 30% to 1,479,138 tonnes for the period of 1~30 Sep 2010

Soy product futures ended lower, stumbling in unison with soybeans. Soyoil futures came under additional pressure from news China would begin selling edible oils from its reserves to cool rising domestic prices, analysts said. Soymeal followed beans lower, with traders becoming less fearful of tight nearby supplies, as the availability of soybeans for crushing improves on the expansion of the fall harvest, analysts said. December soyoil settled 0.49 cents or 1.1% lower at 44.44 cents per pound. December soymeal ended $1.00 or 0.3% lower at $307.50 per short ton.(Source: CME)

China To Hold First 2010 Edible Oil Reserve Auction (Source: CME)
Chinese grain authorities will auction edible oil reserves to ensure sufficient supply to the market and stabilize prices, said the state-backed China National Grain and Oil Trade Center. Edible oils like palm oil and soyoil have steadily rallied on the back of dwindling global stockpiles and surging domestic demand, and amid sharp gains in food prices in China and abroad. The date, offer volumes, oil types and other details of the edible-oil auction will be announced later, the think tank, an arm of the State Grain Reserves Bureau, said in a statement. The auction, China's first this year, would also clear old edible-oil stocks dating from 2008, according to analysts.
Most-active palm oil futures on the Dalian Commodity Exchange have risen by 18% and soyoil by 15% in the last three months, outstripping the 9% increase of bellwether soybean futures. Facing dwindling stocks, soy crushers in China's northeastern producing provinces were in consultation with state grain authorities earlier this month on a potential soybean reserve sale. However, with the new soybean crop already half harvested and set to be completed next month, the need for a soybean auction has abated, analysts said. China has already been holding regular auctions of millions of tons of corn, wheat and rice reserves to hold down prices.

SYDNEY, Sept 29 (Reuters) - Australia's biofuel production is forecast to more than double by 2015 as new capacity is installed and demand for alternative fuels increases, a private consultancy forecast in a report on Wednesday. Australia's biofuel annual capacity is forecast to rise to 1.519 billion litres by 2015 from 636 million litres this year, APAC Biofuel Consultants said, adding that this would see more demand for sugar cane and soybeans as biofuel feedstocks.

WASHINGTON, Sept 23 (Reuters) - The U.S. Environmental Protection Agency has placed canola oil on an equal footing with soyoil, ruling that it emits low enough greenhouse gas levels to qualify for the U.S. mandate to increase renewable fuel production. In a final decision signed on Wednesday, the EPA said canola oil biodiesel met the lifecycle greenhouse gas emission reduction level of 50 percent

China to sell vegoil reserves -state grain body
BEIJING, Sept 29 (Reuters) - China will release some of its temporary vegetable oil reserves via public bidding to bolster  market supplies and to stabilise prices, China's State Grain Administration said.
The exact volume would be announced later, the administration said, without giving further details.

Mixed sowings tighten EU rapeseed mkt, imports eyed
PARIS, Sept 28 (Reuters) - Rapeseed supply in Europe is set to tighten further after a smaller harvest this year and a mixed sowing campaign for 2011, which may prompt more soybean and palm oil imports to satisfy biofuel and food demand, analysts said.
The rapeseed crop in the European Union is estimated to have fallen by some 1 million tonnes versus 2009 to around 20 million tonnes, and sowing for the next harvest has been hampered in major producers Germany and Poland by damp conditions.

U.S. soy drops 0.5 pct, corn slips below $5/bsh
SINGAPORE, Sept 29 (Reuters) - Chicago soybean futures slid half a percent, falling further from Monday's 13-month top as improved sowing outlook in South America and harvest of a record U.S. crop weighed on the market.
"The soy market is facing up to what is possibly a record U.S. crop, plus there has been some improvement in South American weather conditions," said Brett Cooper, a senior manager of markets at FCStone Australia.

US Harvest-Standing water a concern for corn, soy in Minnesota
CHICAGO, Sept 28 (Reuters) - Big rains last week in Minnesota left standing water in some farm fields and created conditions in which mold can thrive, possibly reducing corn and soybean yields by as much as 10 percent, agronomists said on Tuesday.
Dry weather in the U.S. Midwest allowed farmers in much of the United States' top growing region to harvest corn at the fastest pace in at least 28 years.