Monday, October 4, 2010

20101004 1842 FCPO EOD Daily Chart Study.

FCPO closed : 2666, changed : -67 points, volume : higher.
Bollinger band reading : side way range bound little down biased.
MACD Histrogram : getting lower, buyer closing position as seller taking changes.
Support : 2650, 2620, 2600 level.
Resistant : 2670, 2700, 2720 level.
Comment :
Price plunge in world commodities prices plus a stronger US Dollar triggered FCPO sell down ended lower recorded 2.45 % dropped with higher volume transaction traded after market opened lower and pushed upward but failed breaking few levels of support. Daily chart formed a small body doji bar candle closing below middle Bollinger band with the reading turned into suggesting a side way range bound little downside 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.

20101004 1824 FKLI EOD Daily Chart Study.

FKLI last looked : 1464.5, changed : -8.5 points, volume : higher.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : recovering, buyer defending.
Support : 1458, 1445, 1425 level.
Resistant : 1470, 1485, 1500 level.
Comment :
FKLI surrendered all last Friday gain after opened unchanged tested higher follow by last hour sell down to end lower with improved but still relatively low volume transaction. Daily chart formed a down bar candle closed near middle Bollinger band support level with unchanged side way range bound little 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.

20101004 1129 Global Economics News.

Indonesia: Inflation slows, easing pressure on rates
Indonesia’s inflation slowed in September for the first time in six months, easing pressure on policy makers to raise interest rates when they meet next week. Consumer prices rose 5.8% last month from a year earlier, the Central Bureau of Statistics said in Jakarta. That compares with a 6.44 %gain in August reported earlier. The median forecast in a Bloomberg News survey of 17 economists was for a 5.94% increase. (Bloomberg)

Thailand: Inflation slows as subsidies cap price increases
Thailand’s inflation slowed in September as oil costs eased and government subsidies helped contain price pressures. An index of consumer prices rose 3% last month from a year earlier after climbing 3.3% in August, the Commerce Ministry said in Nonthaburi province outside Bangkok. The median estimate of 14 economists in a Bloomberg survey was for a 3.3% increase. (Bloomberg)

Japan: Deflation eases, jobless down; recovery intact
Japan’s deflation moderated and the unemployment rate fell, indicating the nation’s recovery remains intact as policy makers consider stimulus measures to protect the economy from a strengthening yen. Consumer prices excluding fresh food slid 1% in August from a year earlier after falling 1.1% in July, the statistics bureau said. The jobless rate dropped to 5.1% from 5.2%, while the number of people no longer in the labor force increased, it said. (Bloomberg)

China: Supports stable Euro, strong EU ties, Wen says
China supports a stable euro and won’t reduce its holdings of European bonds, underlining its strengthening ties with the European Union, Premier Wen Jiabao told Greek lawmakers in Athens. “From the outbreak of the sovereign debt crisis in certain European countries at the start of this year, I have repeatedly voiced China’s support of measures adopted by the European Union and International Monetary Fund,” said Wen, who began a tour of European capitals. “China supports a steady euro and it will not be reducing its European bond holdings.” (Bloomberg)

China: GDP to rise 9.5pc in 2010
China’s gross domestic product (GDP) is forecast to rise 9.5% in 2010, accelerating from 9.1% in 2009, state television reported on Sunday. The forecast represents the government’s official view of the country’s economic outlook. China’s economy rose 11.9% in the first quarter and 10.3% in the second quarter of this year. (BT)

US: September auto sales show stop-start recovery
US auto sales slipped 4% in September from August, showing how the market for new cars and trucks remains stuck in a slow-motion recovery nearly two full years after hitting bottom. The results pointed to a continuing but slow recovery with consumers still too concerned about housing prices and employment prospects to begin buying vehicles at anything near the historical rate for the US market. (StarBiz)

US: Manufacturing points to ‘modest’ growth
US manufacturing expanded at a slower pace, while consumer spending increased, underlining the Federal Reserve’s forecast for a “modest” pace of economic growth in coming months. The Institute for Supply Management’s factory index dropped to 54.4 in September from 56.3 the prior month, the Tempe, Arizonabased group said. Readings greater than 50 signal growth. Consumer purchases increased 0.4% in August for a second month, more than forecast by economists. (Bloomberg)

US: Fed bond buying’s unintended consequences may mean higher rates
A second round of bond purchases by the Federal Reserve may have the unintended consequences of pushing borrowing costs higher, say a growing number of US government securities dealers, strategists and economists. Yields on 10-year Treasury notes, a benchmark for everything from home mortgages to corporate bonds, rose last month for the first time since March even as the central bank hinted that it may conduct more so-called quantitative easing to bolster the economy. The median forecast of more than 60 estimates in a survey by Bloomberg News is for yields to keep rising the rest of this year and through 2011. (Bloomberg)

20101004 1128 Malaysia Corporate News.

A 20-stick pack of cigarettes costs RM10 from today
Federation of Sundry Goods Merchants’ Association president Lean Hing Chuan said the association received a letter from a tobacco company on Saturday informing the association of the price increase effective today. Deputy Finance Minister Datuk Donald Lim confirmed yesterday a 70 sen increase from the previous price of RM9.30. (TheStar)

MOH evaluates alternatives for support service contracts in East Malaysia
The Ministry pf Health (MOH) recently received other bids, besides Faber Group’s, to provide hospital support services (HSS) to public hospitals in Sabah and Sarawak, sources said. MOH is currently determining the best offer so it will not have to bear (high) cost increases. It is learnt that Faber, which is currently servicing 79 hospitals, recently applied for the renewal of its concession to provide HSS for public hospitals in Perak, Kedah, Perlis, Penang, Sabah and Sarawak. However, in it submission Faber had asked for a hike in rates that was higher than MOH expected. (StarBiz)

UEM unaware of MMC Corp takeover bid
UEM Group Bhd is not aware of any market talk of a buyout of the group by MMC Corporation Bhd, said UEM managing director Datuk Izzaddin Idris today. Based on media speculation reports, MMC has made an offer to buy UEM Group for RM15.6 billion. Khazanah Nasional Bhd, which controls UEM Group, has not given any signal to the group on the proposal. (BT)

Kencana rumoured to take over Labuan Shipyard
Kencana Petroleum is poised to take over the Labuan Shipyard and Engineering SB, a wholly owned subsidiary of UMNO-linked Realmild SB, sources say. The takeover is believed to beef up its facilities to qualify for a RM3.8bn contract to be awarded by Petronas. The four year contract is for the top side maintenance of oil rig platforms as well as hook-up and commissioning services for all of Petronas’ oil rigs. It is unclear whether Kencana will be leasing the fabrication yard from Realmild or taking over the existing lease, effectively leasing the asset directly from Ministry of Finance. Sources say it may even buy the asset from the ministry. (TheEdgeWeekly)

Proton in global car talks
National car maker Proton has started talks with companies in Japan and Europe to look into possible collaborations to produce its first concept global car, Proton Emas. Discussions with the companies would be concluded by the end of the year, Proton Holdings Bhd group managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir told reporters at the Porte de Versailles exhibition hall at the Paris Motor Show 2010. (TheStar)

GPlus major shareholder buys into Equator
Datuk Ooi Kee Liang, who was at the centre of the shareholder feud in Golden Plus (GPlus) two years ago, has emerged as the single largest shareholder in Equator Life Science. Ooi, via his investment vehicle Ideal Sun City, bought 75.2m shares or 32% in the loss making biotechnology company last Thursday. Ooi is now the Executive chairman of Equator, taking over Koh Ah Keng who sold his stake to Ooi. Equator which has defaulted its loan payments have yet to see a turnaround after posting losses. It is unclear what Ooi has up his sleeves to turnaround the company. (Financial Daily)

Notion Vtec to gear up after shelving share placement
Hard Disk Drive component manufacturer Notion Vtec plans to gear up after shelving a plan to place out a 10% stake in the company the company following the fall in its share price. The company is in the process of securing a bank loan of RM80m to finance the expansion of a new plant. (Financial Daily)

Carlsberg Malaysia plans two new premium brands
Carlsberg Brewery Malaysia, the country’s biggest brewery company, will look to introduce up to two new premium beer brands in the local market within the next year. Although its managing director Soren Ravn declined to reveal the brand names, he said the company was looking to add to its present stable of premium beer brands. Carlsberg imports international beer brands such as Hoegaarden, Stella Artois, and Budweiser. (StarBiz)

MRT project may exceed RM36bn
The proposed Mass Rapid Transit (MRT) project for "Greater Kuala Lumpur (KL)" may cost more than the initial estimates of RM36bn, given the various phases of its implementation, Land Public Transport Commission (LPTC) chairman Tan Sri Syed Hamid Syed Jaafar Albar said. The government is doing a technical study on the MRT project to ascertain the viability and cost of the multi-billion ringgit project. It is due in the middle of this month. (BT) 

20101004 1059 Global Market News.

OIL: Crude steady above $81, near two-month high
TOKYO, Oct 4 (Reuters) - U.S. crude futures stood steady above $81, near their highest levels in almost two months on Monday, helped as the dollar stayed near a six-month low against the euro.
The contract rose as high as $81.87 on Monday, the highest since $82.67 hit on Aug. 6. Oil rose 6.7 percent last week, its best weekly gain since prices rose 7.7 percent in the week to Feb. 19 as the dollar slumped and China posted strong economic data.

COMMODITY MARKETS: Huge selloff in agriculture overshadows oil, gold
NEW YORK, Oct 1 (Reuters) - Fear of high corn stockpiles and uncertainties in the outlook for sugar and cotton sparked a massive sell-off in agricultural markets on Friday, overshadowing the rally in energy and metals.
"I'm sure that the market had outstripped its fundamentals," Keith Brown, a cotton broker in Moultrie, Georgia, said after U.S. cotton futures plunged about 4 percent from 15-year highs. "(Speculators) carried us up ... now, they are feeding upon themselves like piranha trying to get out faster than the next guy."

GLOBAL MARKETS: Dollar slumps, stocks up on Fed speculation
NEW YORK, Oct 1 (Reuters) - The dollar hit a six-month low versus the euro but global stocks edged higher on Friday after Federal Reserve officials said more must be done to lift the slow-growing U.S. economy.
"We have had some good news today, especially from China, that prompted a rally in Europe and was carried through the U.S.," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco, referring to equity markets.
U.S. data supports modest 3rd-quarter growth hopes
WASHINGTON, Sept 30 (Reuters) - New U.S. claims for jobless aid fell last week, while manufacturing in the nation's Midwest region grew faster than expected in September, supporting the view that economic activity picked up a bit in the third quarter.
Another report on Thursday showed consumer spending was slightly stronger than expected in the April-June period, causing the government to revise up its second-quarter growth estimate to a 1.7 percent annualized pace from 1.6 percent.

PRECIOUS-Gold at record for sixth day; U.S. policy in focus
LONDON, Oct 1 (Reuters) - Gold hit record highs for a sixth successive session on Friday as the dollar fell to a six-month low against the euro, with expectations for further U.S. monetary easing driving strong demand for the precious metal.
Spot gold  touched a peak of $1,317.10 and was bid at $1,315.65 an ounce at 1013 GMT, against $1,305.25 late in New York on Thursday. U.S. gold futures for December delivery  rose $8.20 to $1,317.80.

FOREX-Dollar index hits 8-mth low as ISM seen weak
LONDON, Oct 1 (Reuters) - The dollar sank to an eight-month low against a currency basket on Friday as investors took speculation U.S. manufacturing due later in the day would be weak as a chance to sell the greenback.
The dollar hit its weakest against the euro since March on the view that it will face more losses if the Federal Reserve eases monetary policy further to support the economy.

Dlr falls before ISM; world stocks up on China
LONDON, Oct 1 (Reuters) - The dollar fell to an 8-month low against a basket of currencies as traders bet a U.S. manufacturing index later in the session would be weak, while world stocks were mostly firm due to upbeat Chinese data.
"The market clearly anticipates more quantitative easing from the Fed, just look at the dollar," said Philippe De Vandiere, analyst at IG Markets in Paris.

20101004 1058 Soy Oil & Palm Oil Related News.

Soy product futures backpedaled in unison with soybeans. Soyoil futures tumbled, succumbing to speculative selling, as traders trimmed risk exposure in the face of increased availability of soybeans for U.S. soybean processors. Soymeal futures fell in step with the rest of the soy complex, but lost product value share to soyoil on spreads, as traders are less fearful of tight nearby stocks, reflective of ample deliveries against the October future, traders said. December soyoil settled 1.26 cents or 2.8% lower at 435.83 cents per pound. December soymeal ended $17.00 or 5.5% lower at $289.90 per short ton. (Source: CME)

Palm oil inches higher on oil gains, China demand eyed
JAKARTA, Oct 1 (Reuters) - Malaysian palm oil ended up marginally on gains in crude oil, but the lack of fresh supply-demand data and a holiday in China meant gains were limited.
"The main supportive features in the market are firmer crude oil and unpredictable weather," said a trader at a local brokerage firm in Kuala Lumpur.

Indonesia Aug palm oil exports up 6.2 pct y/y
JAKARTA, Oct 1 (Reuters) - Indonesia's palm oil exports in August rose 6.2 percent from a year ago on strong demand from its traditional buyers, India, China, and Europe, data from the Indonesian Palm Oil Producers' Association, showed on Friday.
Crude palm and other edible oils accounted for about 15 percent of total exports in August, up from 8 percent in July, data released by the statistics bureau showed on Friday, and made a significant contribution to the better-than-expected export figures for that month.