Tuesday, October 26, 2010

20101026 1815 FCPO EOD Daily Chart Study.

FCPO closed : 3053, changed : -18 points, volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : turned lower, buyer realising profit.
Support : 3050, 3020, 3000 level.
Resistant : 3070, 3100, 3150 level.
Comment :
FCPO retreats lower recorded decline in lesser volume changed hand in tandem with lower soy oil futures price development as US Dollar rebounding after hitting 15 years low triggered buyer in lock in partial profit.
Daily chart formed a down bar candle pulling back from the 2 year highs with the reading turned into suggesting a correction range bound upside biased market possibly closing the gap near 3020 level testing lower support levels.
When to buy : buy at support and weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20101026 1732 FKLI EOD Daily Chart Study.

FKLI closed : 1498.5, changed : +4 points,  volume : higher.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : recovering, buyer holding on.
Support : 1485, 1470, 1458 level.
Resistant : 1500, 1530, 1550 level.
Comment :
Ultra high volume transaction mostly due to rollover activities to forward month contract FKLI recorded gain after major regional market traded mixed. Daily chart formed a long lower shadow doji bar candle as market still having correction range bound upside biased 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.

20101026 1523 Breaking News on CPO!

Indonesia raises Nov CPO, cocoa bean tax to 10 pct
JAKARTA, Oct 26 (Reuters) - Indonesia will set its crude palm oil export tax at 10 percent in November, up from 7.5 percent in October, the trade ministry said on Tuesday.
Higher export tax would mean Indonesia's palm oil products will be more expensive than rival Malaysia, potentially slowing exports in November from the world's top palm oil producer.

20101026 1020 Global Economics News.

Japan: Export growth slows in sign of cooling demand
Japan’s exports grew at the slowest pace this year in September as overseas shipments increased 14.4% y-o-y, a sign the country is losing its chief engine for growth as demand abroad tempers. Nevertheless, it still beat economists’ median estimate of a 9.6% gain. M-o-m, shipments fell a seasonally adjusted 0.1%. Meanwhile, imports climbed 9.9% y-o-y and the trade surplus rose to JPY797bn (USD9.8bn). (Bloomberg)

South Korea: Economic growth probably slowed
South Korea’s economic expansion probably slowed last quarter as the nation’s currency surged the most in Asia and global growth cooled, imperiling exports and increasing scope to extend a pause in interest-rate increases. GDP is expected to advance 0.8% in the three months through September from the second quarter, when it gained 1.4%, according to median estimates by Bloomberg. (Bloomberg)

EU: Industrial orders increase more than forecast
European industrial orders increased more than twice as much as economists forecast in August, led by demand for capital goods such as machinery. Orders in the euro area jumped 5.3% from July, when they fell 1.8%. Economists had forecast a gain of 2.2%. Y-o-y, industrial orders rose 24% after rising 12% in July. Orders for capital goods rose 8.1% m-o-m while orders for intermediate goods increased 3.4% and demand for durable consumer goods jumped 5.4%. Orders excluding heavy transport equipment such as ships and trains rose 4.1%. (Bloomberg)

US: Existing home sales rise more than forecast in September
Sales of US existing homes rose in September by the most on record, a sign cheaper borrowing costs are helping stabilize an industry that’s battling the headwinds of foreclosures and joblessness. Purchases increased 10% to a 4.53m annual rate from 4.12m in August, beating estimates of a rise to 4.3m. The median price fell 2.4% y-o-y to USD171,700. Purchases of single-family homes rose 10% to a 3.97m annual rate m-o-m. The number of previously owned homes on the market fell 1.9% to 4.04m. At the current sales pace, it would take 10.7 months to sell those houses, compared with 12 months in August. (Bloomberg)

U.S: Bernanke says regulators reviewing foreclosures . U.S. banking regulators are examining mortgage lenders' procedures to see if they are improperly foreclosing on homes and expect preliminary findings soon, Federal Reserve Chairman Ben S. Bernanke said. "We are looking intensively at the firms' policies, procedures, and internal controls related to foreclosures and seeking to determine whether systematic weaknesses are leading to improper foreclosures," Bernanke said at a housing conference in Arlington, Virginia. (Source: Bloomberg)

20101026 1019 Malaysia Corporate News.

Perwaja invests RM200m, mulls iron ore mining
Steel manufacturer Perwaja Holdings Bhd plans to build a pelletisation plant in Kemaman, Terengganu, and is considering mining operations that would help to cut its dependence in imported iron ore. The plant may help Perwaja to save at least 15% from its production cost once it commences operation by end-2012, according to executive chairman Tan Sri Abu Sahid Mohamed in Kuala Lumpur. Perwaja appointed Sinosteel as the key engineering firm to design and build the plant, which will have an annual capacity of 1.2m tonnes in the first phase while the second phase will see an additional 1.2m tonnes. (Malaysian Reserve)

Two more companies offer 4G broadband
Two companies have started offering the 4G wireless broadband service on a trial basis, with eventual speed hitting 100Mbps (mega bytes per second) by the first quarter of next year. "There are already several companies offering an almost 100Mbps Internet connectivity service. Such speed should be looked upon as an extra reach," Information, Communication and Culture Minister Datuk Seri Rais Yatim said. He declined to name the two companies but said that they are among nine companies that are offering the new 4G long-term evolution (LTE) technology. (BT)

Glomac acquires Suria Stonor condo units
Glomac Bhd is buying 18 units of apartment in Suria Stonor Condominium for RM38.41m as an investment. It views the property as one with a potential for a quick turnaround, Glomac said. The purchase is at a discount of 35% to the last transacted price of RM1,000 per sq ft for comparable properties at Suria Stonor. (BT)

SP Setia to launch four residential projects worth RM546m
SP Setia Bhd plans to launch four new residential projects with an estimated gross sales value RM546m on the island beginning this December and next year. SP Setia property (North) general manager S. Rajoo told StarBiz that the projects comprised the RM175m Setia Greens, RM60.5m Brook Residences, RM170m Setia V Residences, and the RM139m Pearl Villas in the Setia Pearl Island scheme. Setia Greens, comprising 149 three-storey terraces and 18 semi-detached houses with dual frontage in Sungai Ara, would be launched in December. “The selling price starts from RM918,000 onwards for terraced units with built-up areas ranging from 2,400sq ft and 3,200sq ft. “The selling price for the semi-detached units, with built-up areas of around 3,300sq ft, is around RM1.6m onwards,” he said. Subsequently the group would launch Brook Residences in February 2011 and the Pearl Villas in April, and Setia V Residences in the second half of next year, Rajoo said. (StarBiz)

SGX to buy Aussie bourse for US$8.3bn
Singapore Exchange (SGX) has agreed to a USD8.3bn (USD1 = RM3.10) takeover of Australia's ASX Ltd to create Asia's fourth-largest stock exchange, aiming to cut costs and fight growing competition. However, the first major consolidation of Asia-Pacific exchanges faces regulatory hurdles, including getting Australia's parliament to lift a 15% ownership cap on the ASX and approval from the country's Foreign Investment Review Board (FIRB). Under a deal still being negotiated into the early hours of yesterday morning, SGX offered a combination of AUD22.00 (AUD1 = RM3.07) in cash plus 3.473 of its own shares per ASX share, valuing the Australian operator at AUD8.4bn or AUD48.00 a share - a 37% premium to their last trade on Friday. The companies said they hope to close the deal in the second quarter of next year. (BT)

AirAsia: AirAsia X to gain from ministry programme. The Ministry of Transport's (MOT) plan to develop a transparent and liberalised air rights allocation framework could finally see AirAsia X getting the much sought after rights to fly to Seoul and Sydney. Under the Economic Transformation Programme road-map, MOT has been tasked to facilitate the formulation of an air rights allocation framework to further develop the tourism and airline industries. The framework will enable local airlines to plan and launch additional flights to priority cities in a more efficient manner after additional air rights have been negotiated. (Source: Business Times)

Public Bank: Cambodian unit sets up securities business. Public Bank Bhd unit Cambodian Public Bank plc (CampuBank) has established a wholly-owned subsidiary, CampuBank Securities plc, in Cambodia. CampuBank Securities had obtained a securities company license from the Securities and Exchange Commission of Cambodia, which would enable it to carry out securities underwriting business, securities dealing business, securities brokerage business and investment advisory business in Cambodia. The issued and paid up capital of CampuBank Securities was equivalent to about RM31.1m. (Source: The Star)

SP Setia: To launch four residential projects. SP Setia Bhd plans to launch 4 new residential projects with an estimated gross sales value of RM546m in Penang beginning this December and next year. The projects comprised the RM175m Setia Greens, RM60.5m Brook Residences, RM170m Setia V Residences, and RM139m Pearl Villas in the Setia Pearl Island scheme. SP Setia property's (North) GM S.Rajoo said Penang would continue to play an important revenue generating role in the group?s property development business. (Source: The Star)

20101025 0846 Global Market News.

Gold steady ahead of Fed move; spot trade thin
SINGAPORE, Oct 26 (Reuters) - Gold was steady as investors turned focus on expectations of more monetary easing by the Federal Reserve, and physical buyers were on the sidelines awaiting a clear direction on prices.
"People are waiting for next week's Fed meeting to see how much money they are going to pump into the market," said Ronald Leung, a physical dealer at Lee Cheong Gold Dealers.

Asian stocks slip as dollar fights higher
HONG KONG, Oct 26 (Reuters) - Asian stocks slipped but were near a 28-month high, while the dollar edged up against the euro as dealers took some profits with debate about the outcome of the next Federal Reserve meeting clouding the near-term outlook.
After no major policy initiatives emerged from a Group of 20 finance ministers meeting over the weekend, investors had kept selling the dollar on expectations that further asset-buying from the Fed will lead to debasement of the U.S. currency. 

Oil under pressure from dollar as currency link deepens
SINGAPORE, Oct 26 (Reuters) - Oil fell towards $82, under pressure from an expected gain in U.S. crude stockpiles for three out of four weeks and a stronger dollar, as the currency's volatility exposed the market to price swings.
"It could be the oil market is just taking a breather and will just trade range-bound today," said Serene Lim, a Singapore-based oil analyst at ANZ.

China raises fuel prices 3 pct
BEIJING, Oct 25 (Reuters) - China will raise retail fuel prices by about 3 percent from Tuesday in its first hike in 7 months, a move bringing prices back to near record highs but unlikely to dampen oil demand in the world number-two consumer.
Retail ceiling prices for gasoline will increase by 230 yuan ($34.54) per tonne and diesel by 220 yuan, the government said on Monday, confirming an earlier Reuters report. 

OIL: Oil pares losses as dollar retreats
SINGAPORE, Oct 26 (Reuters) - Oil pared early losses on Tuesday as the dollar retreated from session highs, but prices remained capped by forecasts showing U.S. crude inventories rose for the third time in four weeks last week.
The inverse correlation between the dollar and oil has become deeply entrenched over the past few days as investors buy emerging-market shares whenever the greenback drops.

COMMODITY MARKETS: Up broadly as dollar slides without G20 help
NEW YORK/SINGAPORE, Oct 25 (Reuters) - Commodities surged on Monday as the dollar tumbled on market perceptions that the Group of 20 countries at their weekend meeting did not agree on concrete steps to stop competitive currency devaluations.
"The differences still persist between countries as to what constitutes proper monetary and currency policy," said Daniel Briesemann, analyst at Frankfurt-based Commerzbank.

GLOBAL MARKETS: Absence of firm G20 pact sends dollar lower
NEW YORK, Oct 25 (Reuters) - Investors on Monday continued a familiar pattern of heavily selling dollars and buying emerging-market shares, calculating that a Group of 20 meeting that produced no firm policy initiatives would leave market trends unchanged.
"By demanding 'market determined exchange rates' (at the G20) the U.S is opening the floodgates for a further dollar depreciation due to the ultra-expansionary monetary policy in the U.S.," Commerzbank analysts said in a note.

China raises fuel prices 3 pct, to tweak scheme
BEIJING, Oct 25 (Reuters) - China will raise retail fuel prices by about 3 percent from Tuesday in its first hike in 7 months, a move bringing prices back to near record highs but unlikely to dampen oil demand in the world number-two consumer.
Retail ceiling prices for gasoline will increase by 230 yuan ($34.54) per tonne and diesel by 220 yuan, the government said on Monday, confirming an earlier Reuters report.

PRECIOUS-Gold up, palladium highest since 2001 on dollar
LONDON, Oct 25 (Reuters) - Gold rose more than one percent on Monday and palladium hit its highest in nearly a decade, as the dollar fell after weekend comments at the G20 meeting and investors awaited a speech by the Federal Reserve Chairman.
"This is to do with the fact that the G20 communique failed to produce anything concrete on the coordinated exchange rates policy," Andrey Kryuchenkov, analyst with VTB Capital, said of the dollar's loss and gold's subsequent rise.

FOREX-Dollar's woes resume after G20, Fed in focus
LONDON, Oct 25 (Reuters) - The dollar dropped broadly on Monday, hitting a 15-year low versus the yen, as a Group of 20 agreement to shun competitive currency devaluations was taken as a green light to resume dollar-selling by investors.
"The G-20 was seen as a hurdle by some and now that is over, investors are back to do what they are most comfortable with -- dollar-selling," said Ankita Dudani, G-10 currency strategist at RBS.

Absence of firm G20 pact sends dollar lower
LONDON, Oct 25 (Reuters) - Investors ploughed a familiar furrow of selling dollars and buying emerging shares, concluding a Group of 20 meeting that produced lots of noise but no firm policy initiatives had left market trends unchanged.
"By demanding "market determined exchange rates" (at the G20) the U.S is opening the floodgates for a further dollar depreciation due to the ultra-expansionary monetary policy in the U.S," Commerzbank said.

20101023 0845 Soy Oil & Palm Oil Related News.

Corn dips on profit-taking, weather woes support wheat
SINGAPORE, Oct 26 (Reuters) - U.S. corn futures slipped as investors booked profit after a 1.6 percent gain in the previous session, while wheat ticked higher as poor rains in U.S. winter crop areas supported the market.
"There is certainly unease at the growing strength of La Nina," said Garry Booth, a trader at MF Global Australia. 

CBOT soyoil surged to its highest level in more than two years on strong demand and a weak dollar. The dollar supported commodities across the board, and the soy complex had additional support from strong exports, analysts said. They said spillover strength from crude oil and world demand for vegoils has supported soyoil. Dec soyoil ended up 1.17 cents, or 2.4%, to 49.47 cents per pound, and Dec soymeal closed up $3.70 to $334.60 per short ton. (Source : CME)

Dry Weather Causes Delays In Brazil Soy Planting - Consultancy (Source: CME)
Brazil's farmers have planted only 16% of the expected total soy area as of Oct. 22 due to a lack of rain in many key regions, local agricultural consultancy AgRural said. The area planted with soybeans in Brazil, the world's No. 2 soy producer after the U.S., compares to 21% at the same time last year and 7% the week before, AgRural said in a report. Farmers in Mato Grosso, the country's No. 1 soy-growing state, have planted only 19% of their soy area compared to 50% a year earlier, AgRural said. Although farmers in Mato Grosso are typically the first to begin planting in Brazil, they have been forced this season to postpone seeding in many regions due to the La Nina phenomenon that caused drier-than-usual weather.
Nonetheless, Mato Grosso's farmers managed to progress last week from 5% of their soybeans planted as of Oct. 15, as rain in many parts of the state softened the brittle soil and allowed seeding. Farmers in Parana, Brazil's No. 2 soy-producing state, have seen more favorable rainfall. Farmers had planted 35% of the Parana soy area as of Oct. 22, versus 20% in the prior week and 18% a year earlier, the consultancy said.

U.S. corn jumps 2 pct on weak dollar, soy up 1.7 pct
SINGAPORE, Oct 25 (Reuters) - U.S. corn futures rose more than 2 percent, edging closer to a two-year high reached earlier this month as a weakening dollar supported commodities amid prospects of strong global demand for the grain.
A "very strong start this morning which you can point to one single factor, the U.S. dollar," said Luke Mathews, a commodity strategist at Commonwealth Bank of Australia.

Hit more than 2-year highs on weaker dollar
KUALA LUMPUR, Oct 25 (Reuters) - Vegetable oil markets jumped to two-year highs as the dollar fell broadly after a Group of 20 meeting and on concerns over delayed output in main soy producing areas.
"Malaysian market sentiment is positive as investors are expecting lower stocks in November and December and looking forward to China's demand ahead of winter and New Year," said a trader in Kuala Lumpur.

Malaysia's Oct 1-25 palm oil exports up 1 pct-SGS
KUALA LUMPUR, Oct 25 (Reuters) - Exports of Malaysian palm oil products for Oct. 1-25 rose 1 percent to 1,091,158 tonnes from 1,080,597 tonnes shipped from Sept. 1-25, cargo surveyor Societe Generale de Surveillance said on Monday.

Brazil's new soy crop seen at record - Agroconsult
SAO PAULO, Oct 22 (Reuters) - Brazil's 2010/11 soy crop, with its No. 1 soy-growing state close to a month behind in planting with no clear sign of spring rains, should beat last year's record output, analysts Agroconsult said on Friday.
The new crop is expected to total a record 69.6 million tonnes, up from a revised 69.0 million tonnes last season.

Dry Brazil keeps China buying US soybeans
SAO PAULO, Brazil, Oct 22 (Reuters) - Belated rains over Brazil's soy belt may not mean a smaller harvest but a delayed one is almost assured, which will force buyers such as China to rely on U.S. Gulf soybeans into April.
In fact, China is already locking in U.S. exports for early next year, in case Brazil's crop is delayed getting to port by weather or the country's famously inefficient infrastructure and unpredictable labor situation.

Green palm oil output must rise 5-fold by 2015-AAK
LONDON, Oct 22 (Reuters) - Production of sustainable certified palm oil needs to increase about fivefold in the next five years, to meet buyers' commitments, the British unit of Swedish oils manufacturer AAK  said on Friday.
The Roundtable on Sustainable Palm Oil (RSPO), an industry body of consumers, green groups and plantation companies, was formed in 2004 and aims to promote growth and use of sustainable oil palm products.