Friday, October 1, 2010

20101001 1829 FCPO EOD Daily Chart Study.

FCPO closed : 2733, changed : +3 points, volume : lower.
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 closed recorded marginal gain with lower volume transaction as market opened and tested higher 2750 but momentum seems lacking lead trader to close position ahead of the weekend awaits fresh catalyst to determined market direction. Daily chart formed a long lower shadow doji bar candle with market still likely to trade range bound upside biased reading. 
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.

20101001 1828 FKLI EOD Daily Chart Study.

FKLI last looked : 1473, changed : +12.5 points, volume : better.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : recovering, buyer defending.
Support : 1470, 1458, 1445 level.
Resistant : 1485, 1500, 1530 level.
Comment :
FKLI continue to surge higher started the month recorded gain with improve but relatively low volume transaction changed hand doing 7 points premium compare to cash market. Daily chart formed an up bar candle rebounding from the middle Bollinger band level with the reading still calling for 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.

20101001 1435 FKLI Mid Day Hourly Chart Study.

FKLI last looked : 1468.5, changed : +8 points, volume : low.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : weakening, buyer taking partial profit.
Support : 1458, 1445, 1425 level.
Resistant : 1470, 1485, 1500 level.
Comment :
5 points tight range market FKLI edge up higher in slow volume transaction despite a declined overnight US market. Hourly chart wise, market opened gap higher and tested resistant level followed by profit taking activities pressed to trade off the high with the reading suggesting a side way range bound little upside biased market.

20101001 1431 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2719, changed : -11 points, volume : moderate.
Bollinger band reading : side way range bound.
MACD Histrogram : getting weaker, buyer seller in battle.
Support : 2700, 2670, 2650  level.
Resistant : 2720, 2750, 2770 level.
Comment :
FCPO eased lower in moderate volume transaction changed hand after soy oil futures price traded flat plus a long China market holidays. Hourly chart wise, market opened little higher and tested 2750 resistant level and retreat downward to touched and closed below 2720 support level with the reading suggesting a side way range bound market development.

20101001 1057 Global Economics News.

Japan: Factory production unexpectedly fell in August
Japan’s industrial production unexpectedly fell in August, adding to concerns the nation’s export-led recovery is slowing. Factory output decreased 0.3% from July, the third monthly decline, the Trade Ministry said in Tokyo. The median estimate of 26 economists surveyed by Bloomberg News was for a 1.1% gain. (Bloomberg)

Taiwan: Raises key rate, seeks to prevent property speculation
Taiwan increased its benchmark interest rate for the second time this year and said it will try to prevent realestate speculation after a jump in home prices fueled concern the economic recovery may stoke a property bubble. Central bank Governor Perng Fai-nan and his board raised the rate by 0.125 percentage point to 1.5%. (Bloomberg)

China: US Yuan legislation will hurt world economic growth
China said a measure passed by the US House of Representatives aimed at pushing up the value of the yuan will hurt the global economy if it becomes law. The House of Representatives voted for a measure that would let domestic companies petition for duties on imports from China to compensate for the effect of a weak yuan. China said the legislation would do nothing to cut the US trade deficit and only risk harming growth. (Bloomberg)

EU: Ireland puts EUR34bn price on Anglo Irish
Ireland’s central bank has put a EUR34bn price on bailing out stricken Anglo Irish Bank under a worst-case scenario and said Allied Irish Banks needs to raise an additional EUR3bn by end of the year. Ireland has already injected nearly EUR23bn into Anglo Irish Bank and insisted the Anglo bill which was expected to propel government debt to over 100% of GDP, would be manageable because it would be spread out over at least a decade. (StarBiz)

EU: September inflation quickens on energy costs
European inflation accelerated to the fastest in almost two years in September, led by higher energy costs. Euro-area consumer prices rose 1.8% from a year earlier after increasing 1.6% in August, the European Union statistics office in Luxembourg said. That’s the fastest pace since November 2008 and in line with the median forecast of 33 economists surveyed by Bloomberg News. (Bloomberg)

US: Business activity picks up, claims fall
Business activity in the US unexpectedly accelerated and fewer workers filed claims for jobless benefits, easing concern the world’s largest economy is retrenching further. The Institute for Supply Management-Chicago Inc. said its business barometer climbed to 60.4 in September. Readings greater than 50 for the ISM-Chicago index signal expansion. The median forecast of 57 economists surveyed by Bloomberg News projected the gauge would fall to 55.5. The number of applicants for unemployment insurance payments fell more than projected last week, another report showed. (Bloomberg)

US: Economy expands at a slow 1.7% in Q2
The US economy grew at a 1.7% annual rate in the 2Q, marking the start of a slowdown in growth that has concerned the Federal Reserve. The revised increase in gross domestic product was more than the median forecast of economists surveyed by Bloomberg News and compares with a 1.6% estimate issued last month, figures from the Commerce Department showed. The world’s largest economy grew 3.7% in the 1Q. (StarBiz)    

20101001 1056 Malaysia Corporate News.

Samy Vellu to step down as MIC president in January
MIC’s longest serving president, Datuk Seri S. Samy Vellu, said he is stepping down in January to make way for his deputy Senator Datuk G. Palanivel. “I’m officially announcing my decision to step down and pass the leadership to my deputy in January next year,” he told reporters after chairing the party’s Central Working Committee here yesterday. The specific date would be announced later, he said, adding that the CWC was informed earlier. Palanivel would become acting president, in line with the party’s constitution, Samy Vellu said. “There will not be a presidential election. The election is only due if I step down one or two months before the end of my term as president,” he said. Samy Vellu, 74, came to the party's helm in 1979 after Tan Sri V. Manickavasagam died and has held the position for 11 consecutive terms. He was the Works Minister of Malaysia and the longest serving minister in the Cabinet until he lost his parliamentary seat in the 2008 general elections. (The Star)

Ahmad Zaki wins university project
The Government has awarded a contract to build the International Islamic Universiti Malaysia Teaching Hospital in Kuantan, Pahang, to Ahmad Zaki Resources. The company said project details including its value and concession period will be disclosed once the concession agreement is finalized. (BT)

Equator’s major owners sell down shares
Two directors and a major shareholder of Ace Market-listed Equator Life Science sold large blocks of shares and ceased to be substantial shareholders of the company. At the same time, its managing director also sold a bulk of his interest in the biotechnology company. The reason for the sale by the directors and major shareholder was not stated. It worth noting that the disposals were not forced selling by financial institutions. The massive share disposal implies the emergence of new major shareholders and possible change of strategic direction in the loss making biotechnology firm. (Financial Daily)

Shahril named Prasarana group MD
Syarikat Prasarana Negara Bhd announced yesterday the appointment of Shahril Mokhtar, 38, as its group managing director effective today. He succeeds Datuk Idrose Mohamed, who finished his two-year contract yesterday. Prasarana said in a statement that Shahril will serve a two-year term. This confirmed an earlier Business Times report. When contacted, Shahril said his immediate task was to continue improving the service levels of public transport systems under the group and ensure projects were completed on time. (BT)

RHB Capital acquires stake in RHB Insurance for RM44.5m
RHB Capital has entered into a share sale agreement with Nissay Dowa General Insurance Co Ltd to acquire 15.2% of the issued and paid-up share capital of RHB Insurance for RM44.5m cash. In a filing with Bursa Malaysia, RHB said it entailed the acquisition of 15.2m ordinary shares of RM1 each in RHB Insurance. Upon completion of the exercise, RHB Capital’s stake in RHB Insurance will increase from the current 79.5% to 94.7%. It said RHB Capital would use its internal funds to finance the proposed acquisition and no liabilities, including contingent liabilities and guarantees, to be assumed by RHB Capital pursuant to the acquisition. (Starbiz)

KHSB unit to sell 17 plots in Pulau Indah for RM57.1m
Kumpulan Hartanah Selangor (KHSB) said its unit, Central Spectrum (M) SB, yesterday agreed to sell 17 plots of industrial land measuring 27.2ha in Pulau Indah, Selangor, to Batam Heights SB for RM57.1m. Proceeds will be used for working capital. The sale is also expected to accelerate the development of Selangor Halal Hub.(BT)

PBA raises water tariff by 27% for trade consumers
State-owned public listed Perbadanan Bekalan Air Pulau Pinang (PBAPP) announced an 27% increase in water tariff for trade consumers who account for 60% of its revenue. The increase comes on the heels of the announcement made by PBAPP chairman, Chief Minister Lim Guan Eng last week of a water conservation surcharge to be imposed on domestic users above 35000 litres per month. The last water tariff review for trade and domestic users was on 1 Jan 2001. (Financial Daily)

Khazanah no longer substantial shareholder in DRB-Hicom
Khazanah Nasional disposed of 1.13m shares in DRB-Hicom Bhd on 23 Sept, and ceased to be the substantial shareholder of latter. A filing with Bursa Malaysia yesterday showed that Khazanah’s shareholdings in DRBHicom had fallen to 4.97% after the exercise. (Starbiz) 

20101001 1051 Global Market News.

OIL: Crude little changed near 7-week high of $80
TOKYO, Oct 1 (Reuters) - U.S. crude futures stood little changed near a seven-month high on Friday, after posting a rise of almost 3 percent a day earlier as lower U.S. jobless claims stoked optimism for economic recovery in the world's top oil consumer.
In Ecuador, an OPEC member country which typically exports around 300,000 barrels per day of crude, police and military personnel went on strike to protest cuts in public sector benefits and pay, thrusting the country into political chaos.

GLOBAL MARKETS: Euro at 5-month high, stocks slip at quarter end
NEW YORK, Sept 30 (Reuters) - Global stocks slipped and the euro hit another five-month high on Thursday as improving data curbed expectations the Federal Reserve would increase money supply to spur economic growth and lift asset prices.
"If (future) data and earnings confirm that we are finally out of fears of a double-dip (recession), October may be the month for the S&P to break above trading range and reach the highs that we saw in April," said John Canally, an economist and investment strategist at LPL Financial in Boston.

Bank of America cuts proprietary trading desk jobs
NEW YORK, Sept 29 (Reuters) - Bank of America Corp  is cutting about 20 to 30 employees who traded for the bank's account as a result of U.S. rule changes that require banks to trim their risk-taking businesses, a person familiar with the move said.
The largest U.S. bank by assets is making the cuts, which amount to about a third of its proprietary trading staff, as a direct consequence of the "Volcker Rule," the person said.

PRECIOUS-Gold hits record high as investors eye U.S. policy
LONDON, Sept 30 (Reuters) - Gold rose to a record high in Europe on Thursday and was on track for an eighth consecutive quarterly gain as the dollar fell amid concerns over the prospect of further U.S. quantitative easing.
Strength in gold prices also helped lift silver to its highest level since 1980, palladium to a 2-1/2 year high and platinum to its strongest since May.

FOREX-Euro hits 5-mth high vs dollar after ECB tender
LONDON, Sept 30 (Reuters) - The euro hit a five-month high  against the dollar on Thursday after banks borrowed less than expected at a European Central Bank tender, reversing earlier losses on concerns about Irish fiscal and banking problems.
Euro gains helped push the dollar index to an eight-month low against a basket of currencies, while the yen rose broadly on reported exporter demand for yen on the last day of Japan's fiscal half-year. This sparked concerns Japan may step in again to curb gains in its currency.

Euro hits 5-month high; world stocks flat
LONDON, Sept 30 (Reuters) - The euro rose to a five-month high against the dollar, helped by signs that banks are becoming less dependent on official support and a slight easing in concerns over Ireland and Spain.
"The meltdown of Anglo Irish (Bank) has been a considerable shock for Ireland, but with a credible rescue plan, it limits the risk of negative surprises going forward, and that in a sense is bringing relief to the market," said Philippe Waechter, head of economic research at Natixis Asset Management.

20101001 1049 Soy Oil & Palm Oil Related News.

Soy product futures ended mixed, with soyoil climbing on a bullish fundamental profile. Strong underlying export demand, fears of tighter global vegoil supplies and spillover strength from crude oil futures served as catalysts to support prices, analysts said. Soymeal futures grinded lower, succumbing to pressure from adjustments in the oil/meal spread relationship, traders said. The issuing of deliverable receipts by a large commercial firm added fundamental pressure to weigh on prices as well. December soyoil settled 0.65 cents or 1.4% higher at 45.09 cents per pound. December soymeal ended $0.60 or 0.2% lower at $306.90 per short ton. (Source: CME)

India 2010 Soybean Output Likely Up 4.2% At 10.13 Million Tons - Trade (Source : CME)
India's soybean output in 2010 is likely to rise 4.2% to 10.13 million metric tons as good rains are expected to increase the yield, the Soybean Processors Association of India said Thursday. The country produced about 9.72 million tons of soybean in 2009, it said in a statement. The soybean yield is likely to rise to 1,089 kilograms per hectare in 2010 from 1,006 kg/hectare last year, the trade body said. India's monsoon rains have been 2% above average so far this season, according to the state-run India Meteorological Department. The June-September monsoon season brings about 70% of India's annual rains and is crucial for summer-sown crops.
Soybean output in Madhya Pradesh, the biggest producing state, is likely to rise 11% to 6.1 million tons due to a rise in area under cultivation and a higher yield. Total area under soybean in Madhya Pradesh is estimated to have risen to 5.5 million hectares in 2010 from 5.3 million hectares last year, the trade body said. In Maharashtra, the second biggest producer, output is likely to fall to 2.8 million tons from about 3 million tons last year, it added. Higher output estimates may increase the exports of soymeal and pressurize local prices, said Mehul Agrawal, analyst with Sharekhan Commodities. The country's soymeal exports had been falling over the past few months as local prices were higher than international rates. However, exports are improving as global prices have now risen sharper than local prices.
Total soymeal exports in the marketing year starting Oct. 1 are likely to touch 4 million tons, Agrawal said. India is estimated to export about 2.5 million tons of soymeal in 2009-10, according to industry officials.

China May Lack Enough Edible Oil Stocks To Curb Prices -Report (Source: CME)
China may lack sufficient edible-oil reserves to effectively curb rising prices despite an imminent state auction, the Securities Times reported Thursday. China's grain authorities Wednesday announced an unusual state auction of edible oils, without disclosing details including the date, oil types and offer volumes. The authorities said the intent was to ensure supply and stabilize prices. Sharply rising prices have been of growing concern to the government, and Wednesday's announcement marked the addition of one more food category to a range of agricultural commodities that are testing the ability of China's vaunted agricultural reserves to defend the country's market stability and food security. Citing unnamed industry insiders, the Securities Times said the edible oils to be auctioned were likely soyoil and rapeseed oil.
However, the newspaper said, private-sector estimates place national reserves of such vegetable oils far short of domestic demand, limiting the extent to which the authorities will be able to use auctions to stabilize the market. China does not officially disclose its agriculture reserve levels. The Securities Times report was also carried Thursday on the website of the China Grains Network, the research arm of state grains stockpiler China Grain Reserves Corp., also called Sinograin Corp. "The dimensions of such an auction are likely to be limited, which makes it hard to alter the fundamental market situation," the newspaper said. The auction, China's first this year, is more likely aimed at clearing old edible-oil stocks dating from 2008, as the shelf life of such stocks are near expiry and warehouses are running out of space, it said.
Though it didn't venture to identify likely offer volumes, crucial for gauging the strength of the government's ability to control prices, the Times suggested that state reserves of such edible oils were too small to influence the market. China's rapeseed oil reserves were around 1.4 million tons, the newspaper said. If true, such reserves would be about a third of domestic rapeseed oil consumption of around 4.5 million a year, according to September data by the state-backed think tank China National Grains and Oils Information Center. The newspaper also said that "a conservative estimate of state soyoil reserves is 1.4 million tons or more, a small percentage of domestic demand." The CNGOIC estimated current Chinese soyoil consumption at around 10 million tons a year. The Securities Times said market-supportive rapeseed purchases, which have all but stopped this year, reached 5.08 million tons.
Among the state-linked buyers were Sinograin with 2.3 million tons, Cofco Ltd. with 600,000 tons, Chinatex Corp. with 180,000 tons, and local grain agencies with 1 million tons, the newspaper said. It didn't identify the buyer or buyers of the other 1 million tons. Dwindling global stockpiles and surging domestic demand have spurred sharp gains in food prices in China and abroad this year, but given the size of available reserves, edible oil prices are expected to keep rising, it said. The most-active palm oil futures on the Dalian Commodity Exchange have risen by 18% and soyoil futures by 15% in the last three months, outstripping a 9% increase in bellwether soybean futures. The state has also been auctioning wheat, corn and rice weekly to hold down prices.

Palm oil in 1st quarterly gain, weather lifts prices
KUALA LUMPUR/JAKARTA, Sept 30 (Reuters) - Malaysian palm oil rose 1.19 percent, booking its first quarterly gain in a year as a global economic recovery fueled demand and erratic weather patterns meant an uncertain grain crop outlook worldwide.
"Palm oil is supported by strong export figures and short-covering by Chinese traders ahead of the holiday," said a trader at a foreign brokerage firm in Kuala Lumpur.

Growing U.S. soyoil exports fueled by China demand
CHICAGO, Sept 29 (Reuters) - U.S. soyoil exports will stay hot even after China releases state stocks to stabilize local prices, bolstered by demand as Beijing's boycott of supplies from Argentina lingers.
China's State Grain Administration said on Wednesday it will sell vegetable oils from its state reserves to bolster supplies and stabilize prices, which were currently below the cost of U.S. imports.