Tuesday, November 9, 2010

20101109 1855 FCPO EOD Daily Chart Study.

FCPO closed : 3363, changed : +90 points, volume : lower.
Bollinger band reading : upside biased with possible correction.
MACD Histrogram : rising higher, buyer expanding dominance.
Support : 3350, 3300, 3270 level.
Resistant : 3420, 3470, 3500 level.
Comment :
Break new high FCPO rallied closed recorded substabtial gain in slightly lower volume changed hand after market opened gap up, surged and closed near the high of the day ahead of tomorrow MPOB official Oct 2010 data and 1~10 Nov export figures.  Daily chart formed an wide range up bar candle closed way above upper Bollinger band level with the reading suggesting a upside biased market with potential pullback correction. CBOT soy oil continue to trade firmer as US Dollar traded slightly weaker.
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.

20101109 1831 FKLI EOD Daily Chart Study.

FKLI closed : 1527, changed : +7 points,  volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer market.
Support : 1500, 1485, 1470 level.
Resistant : 1530, 1550, 1580 level.
Comment :
FKLI continue to climb higher recorded gain for the 4th consecutive day with improving volume transacted despite major regional market recorded decline. Daily chart formed a up bar candle closed right at the upper Bollinger upper band level with the reading continue to call for an upside biased market development.
When to buy : buy at support/weakness/break up with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20101109 1142 Local & Global Economics News.

Economics: Malaysia to benefit from QE2, says Templeton. Emerging market such as Malaysia are set to benefit from monetary inflows as the US looks to investing in developing countries as a result of the second round of quantitative easing (QE2), said a global asset manager. Franklin Templeton Investments international chief investment officer Stephen Dover said a big portion of the money from QE2 would go into emerging markets, but these markets are at risk of overheating if not managed well. (Source: The Edge Financial Daily)

U.S: Fed says banks eased lending standards over 3 months . Banks were more willing to make consumer installment loans and eased standards on credit-card loans, the central bank said in its quarterly survey of senior loan officers through the middle of October. At the same time, demand for mortgages remained weak, while demand for business lending fell, after having been unchanged in the previous survey. (Source: Bloomberg)

Ireland: EU's Rehn endorses budget plan amid bond 'buyers strike' . European Union Economic and Monetary Affairs Commissioner Olli Rehn said he endorses the Irish government's plan to cut spending and raise taxes by as much as EUR 6b (USD 8.4b) in 2011. The Irish government hasn?t requested "financial backstops" and needs to be given space to work out a four-year budget program, Rehn said at a joint press conference in Dublin with Irish Finance Minister Brian Lenihan. Rehn was speaking at the start of a two-day trip to Ireland to show support for the government after the nation's bonds tumbled for a 10th consecutive day and the extra yield investors demand to hold the debt reached a record. (Source: Bloomberg)

Portugal: China willing to support the country's efforts to come through the economic crisis that has prompted its borrowing costs to spiral this year. "We are available to support, through concrete measures, Portuguese efforts to face the impacts caused by the international financial crisis, and deepen and broaden our economic and commercial cooperation," Chinese President Hu Jintao said in Lisbon. (Source: Bloomberg)

Australia: Job advertisements rose in October for a sixth straight month , reinforcing evidence the nation's economic expansion will accelerate next year. Jobs advertised in newspapers and on the Internet climbed 0.6% MoM from September, when they rose a revised 1.1% MoM, according to an Australia & New Zealand Banking Group Ltd. Report released in Melbourne. (Source: Bloomberg)

Australia: Strengthening currency will crimp tax revenue , especially levies on resources companies, and influence the midyear budget forecast , Treasurer Wayne Swan said. The rise of Australian dollar, the best-performing major currency against the greenback since July, is cutting into tax receipts as the value of export earnings declines, Swan said in a statement. (Source: Bloomberg)

EU: German industrial production unexpectedly fell in September
Industrial production in Germany unexpectedly declined in September, adding to signs Europe’s largest economy is losing momentum. Output declined 0.8% from August, when it rose 1.5%. Economists had forecast a 0.4% gain. Y-o-y, production increased 7.9% when adjusted for the number of work days. Manufacturing output fell 0.9%. Production of investment goods was unchanged in the month and consumer goods production fell 0.6%. Energy production increased 1.2% and construction output rose 0.4%. (Bloomberg)

EU: Swiss jobless rate declines
The Swiss jobless rate fell to the lowest in more than 1.5 years in October as companies boosted their workforce to meet global export demand. The jobless rate dropped to 3.6% from 3.7% in September when adjusted for seasonal swings, the lowest since May 2009. The unadjusted jobless rate held at 3.5%. (Bloomberg)

UK: First-time homebuyers return on price drop
The number of Britons planning to buy a home for the first time has increased as the prospect of falling prices bolsters demand. The proportion of people who intend to buy a home in the coming 12 months and who will be making their first purchase rose to 26% in October, compared to 22% in July. The number of first-time buyers expecting values to drop in the next year surged to 32% from 20% in July. (Bloomberg)

US: Household debt shrank 0.9% in third quarter
US households cut their debt last quarter, borrowing less against homes and closing credit card accounts. Consumer indebtedness totaled USD11.6trn at the end of September, down USD110bn, or 0.9% q-o-q. Households have slashed about USD1trn from outstanding consumer debts since the peak in the third quarter of 2008. The report also showed that consumers are succeeding in improving their household finances as delinquency rates continued to decline, with 11.1% of outstanding debt in “some stage of delinquency,” down from 11.4% q-o-q and 11.6% y-o-y. (Bloomberg)

20101109 1141 Malaysia Corporate News,

AirAsia: Introduces Phuket-Bali Route. Budget airline AirAsia introduced the Phuket-Bali route four times a week, dubbing it as "from paradise to paradise". The new route aims to make travel more convenient for everyone and to stimulate tourism revenue and the local economy in Phuket. (Source: Bernama)

TA: Launches first wholesale funds. TA Investment Management Bhd has launched its first wholesale funds- TA Australia Income Fund 1 and/or II - which seek to provide investors with a regular income distribution in Australian dollar over an investment horizon of three and/or five years as well as to receive capital repayment in Australian dollar upon maturity. The fund will be invested in Australian dollar-denominated fixed rate note issued by foreign financial institution. (Source: The Star)

Masterskill: Plunges on PTPTN woes. Masterskill Education Group Bhd's shares have fallen steadily since late July. The selling pressure accelerated sharply over the past week, possibly due to concerns that National Higher Education Loan Fund (PTPTN) could be facing a deficit of RM46b as highlighted in the 2009 Auditor General's (AG) Report. Masterskill is said to rely on PTPTN to provide financing for 95% of its students. There are also fears that Masterskill's stock could see overhang pressures once the six month moratorium on selling by its pre-IPO investors expire at Nov 18. (Source: The Edge Financial Daily)

Accounting: Full IFRS compliance by 2012. Malaysia is on track to achieve full compliance to the International Financial Reporting Standards (IFRS) by 1 January 2012, Prime Minister Datuk Seri Najib Razak said. (Source: Business Times)

AZRB to exit EPIC in RM115m deal
Construction firm Ahmad Zaki Resources (AZRB) is proposing to sell off its 35.97m shares, or 21.26% stake, in Eastern Pacific Industrial Corp (EPIC) to Lembaga Tabung Amanah Warisan Negeri Terengganu (LTAW) for RM111.5m, or about RM3.10 a share. In announcement to Bursa Malaysia yesterday, AZRB said that the offer by LTAW “provides a timely opportunity for AZRB to realize and unlock the value of its investment in EPIC”. EPIC ended trading at RM2.09, gaining two sen yesterday. Meanwhile, the offer price is at a 48% premium to EPIC’s close. (Financial Daily)

Firefly plans to operates 30 B737-800s in five years
Firefly SB, the budget arm national of national carrier Malaysia Airlines (MAS), plans to add 30 units of B737- 800 to its fleet between 2011 and 2015. This is to support its aggressive route network expansion plans. Managing director Datuk Eddy Leong said Firefly expects to have six aircraft in service by end if 2011. Seven more airplanes will be added in 2012 and 2013, respectively and five in 2014 and another 5 in 2015. He said in the first year, all the jet airplanes operated by the airline will be leased via open market with plans to acquire new aircraft at the later stage. (Malaysian Reserve)

UEM Land: No plan to raise bid for Sunrise
UEM Land offered RM2.80 per share in an all-share deal but Sunrise shares rose 28% to close at RM3.22 yesterday. UEM Land Holdings has no plans to raise its bid for Sunrise Bhd after the latter's share price jumped above the offer price yesterday. Although major shareholders with a 40.34% stake have agreed to the offer, UEM Land still needs another 9.7% for the deal to happen. "We believe the current market price of Sunrise is only reflecting the proposed dividend announced, the proposed offer structure and the pricing of our offer to acquire Sunrise at RM2.80 per share," UEM Land said in response to Business Times' questions. Sunrise shareholders are offered 1.33 UEM Land shares for every share they hold, priced at RM2.10 each. "As such, any increase in UEM Land’s share price, will result in a proportionate increase in Sunrise’s share price as to reflect the proposed structure and pricing," it added. Shares of UEM Land rose 10.2% to RM2.49 yesterday. (BT)

Oil palm planters seek tax waiver
Planters in Sabah and Sarawak will soon pay the windfall tax as the average monthly cash price surpasses RM3,000 per tonne Oil palm planters in Sarawak are appealing to the Government for a waiver of the windfall tax on crude palm oil (CPO). Oil palm planters in Peninsular Malaysia had been paying windfall tax when CPO prices went beyond RM2,500 per tonne in the cash market. Planters in Sabah and Sarawak will soon pay the windfall tax as the average monthly cash price surpasses RM3,000 per tonne. Yesterday, CPO futures on the Bursa Malaysia derivatives market closed RM82 higher at RM3,273 per tonne. In a statement yesterday, Sarawak Oil Palm Plantation Owners Association (Soppoa) chairman Datuk Abdul Hamed Sepawi said it is unfair to levy a windfall tax on CPO, a commodity which is subjected to many factors in the international market beyond planters' control. (BT)

Toptrans to take over listing status of AMolek
The Ayer Molek Rubber Co (AMolek) listing status will be taken over by vendors of Toptrans Engineering SB in a back-door listing valued at RM7.5m. According to the restructuring proposal, a newco will take over AMolek’s 1.8m share equity for RM7.5m to be satisfied with a cash payment of RM4.17 per share, or the issuance of up to 196,600 newco shares at a price to be determined later. AMolek shareholders will also be given priority to subscribe to the newco shares to be offered by the vendors under a proposed offer for sale exercise. (Malaysian Reserve)  China: Trade surplus may jump for October China may report its second-largest monthly trade surplus of the year tomorrow, indicating little lasting shift so far in addressing the imbalances in global spending and capital flows set to dominate a summit of the Group of 20. The USD25bn median forecast for October’s surplus compares with a USD16.9bn surplus in September. China’s export growth is estimated to cool to 23% in October y-o-y, compared with a 25.1% gain in September. (Bloomberg)

20101109 0852 Biofeuls Related News. This is interesting !

Factory Turns Chicken Fat to Diesel (Source: CME)
Agricultural giant Tyson Foods Inc. and fuel developer Syntroleum Corp. will announce that they have successfully opened a plant that makes diesel from chicken fat and leftover food grease. But they say their new venture won't survive unless Congress gives them a hefty tax break, an argument that many other alternative energy projects are also making. Tyson and Syntroleum say they've begun in recent weeks to make diesel and jet fuel from chicken fat, beef tallow and a range of greases and oils at a plant they've built in Geismar, La., south of Baton Rouge. The raw materials are leftovers from Tyson's meat-processing plants and other food-processing factories and restaurants. The Louisiana refinery has the capacity to produce 75 million gallons of fat-based fuel annually making it tiny by oil-industry standards but among the bigger alternative-fuel plants in the U.S.
Buyers include oil companies mandated by federal law to mix renewable fuel into their conventional diesel, the companies say, though they wouldn't identify the purchasers, citing confidentiality agreements. The U.S. Air Force confirmed that it has contracted to buy about 40,000 gallons for testing the fuel for potential use in planes. The companies contend that the fuel won't be economically viable unless Congress restores a $1-a-gallon federal tax credit that used to go to companies that mixed alternative fuels into petroleum-based diesel. That break expired at the end of last year, when the $170 million Louisiana plant was under construction. Had Syntroleum known Congress would let the break lapse, the company probably wouldn't have built the plant, said Jeff Bigger, a company senior vice president. Jeff Webster, a Tyson group vice president, said that if the tax break isn't extended, "The whole green-fuels industry in the U.S. is going to go down."

Biofuel worse for climate than fossil fuel - study
BRUSSELS, Nov 8 (Reuters) - European plans to promote biofuels will drive farmers to convert 69,000 square km of wild land into fields and plantations, depriving the poor of food and accelerating climate change, a report warned on Monday.
The impact equates to an area the size of the Republic of Ireland.

20101109 0851 Global Market News.

Oil falls first day in seven on euro zone woes
SINGAPORE, Nov 9 (Reuters) - Oil fell for the first session in seven as concern about euro zone debt provided support for the dollar, while forecasts indicated U.S. crude stockpiles rose for a fifth time in six weeks.
"It's just a general return to risk aversion that is driving the markets today," said Michelle Kwek, an analyst at Informa Global Markets in Singapore.

Nov. 9 (Bloomberg) -
- The yen rose to a one-week high against the euro after China said it will curb the flow of “hot money” into its economy and as speculation increased that European nations will struggle to raise funds. Asian stocks retreated from a two-year high and bond risk increased. The yen advanced to 112.24 per euro as of 3:10 p.m. in Tokyo from 113.01 in New York yesterday, and the 16-nation currency weakened versus 13 of its 16 major counterparts. The MSCI Asia Pacific Index fell 0.2 percent, snapping a six-day, 4.6 percent rally. Futures on the Standard & Poor’s 500 Index slid 0.3 percent. The cost of insuring Asian bonds against non- payment rose by the most in almost a month, according to credit- default swaps traders.

OIL: Crude falls from 2-year high to below $87/bbl
TOKYO, Nov 9 (Reuters) - U.S. crude futures retreated from a two-year high to fall below $87 a barrel on Tuesday, after jumping almost 7 percent in the previous six sessions, as the dollar recovered some ground.
"While the price is inching up, we think the terms of trade are going against OPEC countries and the increase in the price did not even compensate for the loss in the dollar value and the increase in the price of commodities," said Shokri Ghanem, chairman of Libya's National Oil Corporation.

COMMODITY MARKETS: Markets rally despite dollar; gold above $1,400
NEW YORK/LONDON, Nov 8 (Reuters) - Gold climbed to an all-time record high on Monday for a third running day, powered by worries over Ireland's debt, while oil and copper hit multi-year peaks as the Federal Reserve's move to bolster the
"Investors are looking for real assets and almost all commodities are benefiting from that as a class," said Carsten Fritsch, an analyst at Germany's Commerzbank.

GLOBAL MARKETS: World stocks pause from rally as dollar rises
NEW YORK, Nov 8 (Reuters) - World stocks weakened on Monday as renewed European debt concerns and a sign of recovery for the U.S. labor market sent the euro reeling versus the dollar, while gold surged on inflation worry.
"We're finally seeing the market turn its gaze away from Fed easing and toward these ongoing problems in peripheral Europe," said Matthew Strauss, senior strategist at RBC Capital Markets in Toronto.

PRECIOUS-Gold down but remains within sight of record
LONDON, Nov 8 (Reuters) - Gold slipped for the first time in three sessions on Monday but remained near record highs after a pick-up in the dollar dented precious metals prices. The gold price has risen by about 5 percent in the last five trading days, driven by the drop in the U.S. currency after the Federal Reserve last week detailed its plans to buy over half a trillion dollars' worth of Treasuries to revive the economy.

FOREX-Euro hurt as peripheral debt jitters resurface
LONDON, Nov 8 (Reuters) - The euro fell broadly on Monday on renewed concerns about euro zone peripheral debt while Friday's solid U.S. jobs data supported the dollar.
With the U.S. Federal Reserve's decision to launch more quantitative easing out of the way, euro zone debt problems seemed to have resurfaced on traders' radars.

Bernanke answers Fed's global critics
JACKSONVILLE, Fla., Nov 5 (Reuters) - Federal Reserve Chairman Ben Bernanke on Friday defended the U.S. central bank's bond-buying against beggar-thy-neighbor criticism, saying the return to a strong U.S. economy was critical for global stability.
He suggested doing so would bolster a dollar whose weakness has sparked cries of foul from Bogota to Beijing.

Global anger swells at U.S. Fed actions
WASHINGTON/BEIJING, Nov 5 (Reuters) - Global anger at a fresh round of liquidity injections into the U.S. economy swelled on Friday as Germany called the move "clueless" and emerging nations protested that it will wreak havoc on them.
Harsh criticism poured in as President Barack Obama headed for Asia on a trip he had hoped to use as a springboard for pressuring China to revalue its yuan but may end up in a fractious Group of 20 leaders summit next week.

World Bank chief surprises with gold standard idea
LONDON, Nov 8 (Reuters) - Leading economies should consider adopting a modified global gold standard to guide currency rates, World Bank president Robert Zoellick said on Monday in a surprise proposal before a potentially acrimonious G20 summit.
Writing in the Financial Times, Zoellick called for a "Bretton Woods II" system of floating currencies as a successor to the Bretton Woods fixed-exchange rate regime that broke down in the early 1970s.

Gold hits new high, dollar rebounds
LONDON, Nov 8 (Reuters) - Gold hit a new high, stoked by rising inflation expectations following the Federal Reserve's return to asset buying, and the dollar gained in a hang-over from last week's relatively upbeat U.S. jobs data.
"As we've had a good run on positive U.S. data, the market is buying back an oversold dollar," said Keiji Matsumoto, strategist at Nikko Cordial Securities.

20101109 0848 Soy Oil & Plam Oil Related News.

U.S. soy product futures ended lower in unison with soybeans. Soyoil futures stumbled on traders taking profits ahead of Tuesday's crop reports after climbing to 2 year highs overnight. Soymeal fell, pressured by spillover from soybeans and positioning in front of Tuesday's USDA crop updates. Dec soyoil settled 0.21c or 0.4% lower at 52.01 cents a pound. Dec soymeal ended $3.10 or 0.9% lower at $344.90 a short ton. (Source: CME)

ANALYSIS-U.S. Fed's QE2 raises alarm of commodity bubble
LONDON/SINGAPORE, Nov 5 (Reuters) - A commodities buying spree spurred by U.S. quantitative easing has raised alarm of an inflationary bubble reminiscent of 2008 when oil and other industrial raw materials struck all-time highs before the crash.
In the run up to Wednesday's announcement from the U.S. Federal Reserve, commodity traders said dollar-weakness associated with QE was largely factored in.

Palm oil at over 2-yr highs on floods, China prices
KUALA LUMPUR, Nov 8 (Reuters) - Malaysian crude palm oil futures  jumped more than 4 percent in early trade, driven by supply worries stoked by floods in some palm growing states in the country and rising soyoil prices in China.
"Traders were covering positions after a three-day holiday as soyoil on China's Dalian rose on speculative buying," said a trader with a foreign brokerage in Kuala Lumpur. "Some investors expect prices to go higher due to the floods in Northern Malaysia."

Dutch buyers to import only green palm oil by 2015
KUALA LUMPUR, Nov 6 (Reuters) - Dutch vegetable oil suppliers have pledged to order only eco-friendly palm oil cargoes by 2015 as consumers and green groups continue to scrutinise the sector, an industry official said.
Dubbed the Dutch Taskforce on Sustainable Palm Oil, the initiative will get local firms to pledge to buy palm oil from estates that do not clear forests or peatlands in Southeast Asia to expand, said Frans Claassen, an official with the taskforce.

Asian buyers, emissions in focus at green palm oil meet
JAKARTA/LONDON, Nov 8 (Reuters) - Buoyed by growing green palm oil production, an industry body will use a meeting this week in Jakarta to persuade top vegetable oil consumers India and China to start buying.
The Roundtable on Sustainable Palm Oil (RSPO), which created voluntary standards that include pledges to preserve forests, has certified more than seven percent of 45 million tonnes in global annual output in over two years.

US soy prices to climb with half of crop unsold
CHICAGO, Nov 5 (Reuters) - Grain companies will have to pay up to get deep-pocketed U.S. farmers to part with soybeans, as about half of the crop remains unsold at a time when soymeal demand rises seasonally and the export program could be extended by planting delays in Brazil.
Soybean basis bids -- the amount above or below Chicago Board of Trade benchmark futures prices that grain merchants pay to farmers -- are poised to climb at least until year end after hitting a low for 2010 during harvest last month.