Wednesday, December 8, 2010

20101208 1821 FCPO EOD Daily Chart Study.

FCPO closed : 3594, changed : -16 points, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer in control.
Support : 3550, 3500, 3470 level.
Resistant : 3620, 3650, 3700 level.
Comment :
FCPO corrected lower recorded marginal loss with lower volume transacted as soy oil and crude oil traded lower due to a firmer U.S. Dollar. Daily chart formed a long lower shadow doji bar candle near upper Bollinger band level after market opened, tested lower and recovered upward to closed above opening price with the reading remained suggesting a correction range bound upside biased market development.
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.

20101208 1804 FKLI EOD Daily Chart Study.

FKLI closed : 1510.5, changed : +11 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : both buyer seller testing market.
Support : 1500, 1485, 1470 level.
Resistant : 1530, 1550, 1580 level.
Comment :
FKLI rallied higher recorded gain with higher volume changed hand despite major regional market traded in negative territory. Daily chart formed an up bar candle after market opened and closed higher near upper Bollinger band resistant level with the reading suggesting a side way range bound market development 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.

20101208 1150 Malaysia Corporate News.

Air Asia: To form Philippines unit. Air Asia plans to form a Philippines unit with Antonio Cojuanco, a former chairman of Philippine Long Distance Telephone Co by 1Q11. The domestic and overseas routes would be available in 2011. (Source: The Star)
Scomi Eng: Accepts RM494m price for monorail fleet expansion. Scomi Engineering via its subsidiary, Scomi Rail Bhd (SRB), has accepted the contract price of RM494m for the monorail fleet expansion project. SRB had received a letter from Syarikat Prasarana Negara Bhd (SPNB) on Dec 3 notifying SRB of the intent to award SRB the contract at the quoted price. (Source: The Star)

UEM Land: To buy land in Bangi for RM268m. UEM Land Holdings Bhd will acquire two parcels of freehold agricultural land in Bangi for RM268.5m from Inch Kenneth Kajang Rubber Public Ltd Co. UEM intends to develop a township with a gross development value of RM2.84b spanning 10 years. (Source: The Star)

NFO: Some 4 Digit prize payment reduction approved. Multi-Purpose Holdings Bhd?s unit, Magnum and another listed NFO operator received approval from the Finance Ministry to revise the special prizes of their 4 Digit Big Game from RM200 per RM1 bet to RM180 per RM1 bet. Both companies said the special prizes for the 4 Digit Big permutations would be revised proportionately. (Source: The Star)

Chemicals: Petronas, BASF mull RM4b joint venture. Petronas and Germany's BASF are considering a RM4b joint venture to produce specialty chemicals in Malaysia. The final scope of investments will be determined following the outcome of a joint feasibility study, which is targeted to be completed in 2011. (Source: The Star)

Banking: India's Religare seeks presence in Malaysia. Religare Enterprises Ltd, an Indian financial services group controlled by the Singh brothers, Malvinder and Shivinder, is planning to buy a mid-sized investment bank in Malaysia and Indonesia. Besides India, Religare has presence in Singapore and Hong Kong. (Source: Business Times)

Healthcare: Pantai plans RM500m expansion of hospital network. The Pantai Group plans to expand its network of hospitals in Iskandar Malaysia at an estimated cost of RM500m.The development of the project, which will bear the name Gleneagles Medini Hospital, will be done in phases and is slated to be one of the premium hospitals under Parkway Health. (Source: The Star)
Property: RM500m Azea latest project in Danga Bay. Imperial Marine Pte Ltd, Danga Bay Sdn Bhd and Pembinaan Sahabatjaya Sdn Bhd have formed a 30:37:33 joint venture to develop a RM500m high-end mixed development known as Azea Properties. The commercial project will be undertaken on a 1.7ha site in Danga Bay, one of the key flagship zones within Iskandar Malaysia. (Source: Business Times)

20101208 1146 Global Economics News.

Philippine: Inflation rate holds near 11-month low in November as the peso's gains helped cap increases in food and clothing prices. Consumer prices rose 3% YoY compared with October's 2.8% YoY gain, which was the smallest increase since November 2009. (Source: Bloomberg)

Vietnam: Says will fight inflation, prices aren't under control . Vietnam will focus on fighting inflation in 2011 as the prices of some goods in the country aren't yet under control and growth has created risks to macroeconomic stability, the government said. Inflation accelerated to 11.09% YoY in November, the fastest pace since March 2009. Economic growth for 2010 may reach 6.7% YoY and accelerate to as much as 7.5% YoY next year. (Source: Bloomberg)

Vietnam: Foreign reserves at 'low' level, IMF says . Vietnam's foreign reserves were at a "low" level at the end of September, covering 1.8 months of imports, amid an erosion of market confidence in government economic policy, the International Monetary Fund said. The reserves have stabilized this year, the IMF said in a statement posted on its website, without giving an overall number. In September, it said they were projected to rise to USD 15.4b by the end of this year from USD 14.1b at the end of 2009. They were less than 2 1/2 months of imports in December last year, the IMF said at the time. (Source: Bloomberg)
China: Rate rise talk builds as loans, prices rise
China is likely to raise interest rates in the coming days in a demonstration of the government’s resolve to tame inflation, an official newspaper said. In a banner headline across its front page, the China Securities Journal said this weekend offered a “sensitive window” for a rate rise, which would be the country’s second after a surprise increase in October, the central bank’s first rate hike since 2007. (Financial Daily)

New Zealand: Construction, manufacturing signal weak recovery
New Zealand construction and manufacturing contracted in the third quarter, government reports showed, adding to the case for the nation’s central bank to keep interest rates unchanged until a recovery strengthens. The value of residential construction excluding inflation fell 5.3% from the second quarter, Statistics New Zealand said. Non-residential construction dropped 0.7%. Manufacturing sales volumes fell for a third straight quarter, declining 1.4%, according to a separate report. A weakening housing market and sluggish manufacturing signal that GDP probably didn’t perform much better than a 0.2% expansion in the second quarter. (Bloomberg)

EU: Rules out aid boost, banks on ECB to fight crisis
European finance ministers ruled out immediate aid for Portugal and Spain or an increase in the EUR750bn (USD1tn) crisis fund, counting on European Central Bank bond purchases to calm debt-spooked markets. A week after handing Ireland a EUR85bn lifeline, the finance chiefs voiced confidence that Spain and Portugal will tame their budget deficits and said the existing credit line is enough to defend them in an emergency. (Bloomberg)

EU: Ireland raises taxes, cuts spending to narrow deficit
Irish Finance Minister Brian Lenihan cut spending and raised taxes by EUR6bn (USD8bn) to deal with what he called the “worst crisis in our history” as the government seeks to seal an international aid package. Lawmakers will begin voting on the measures, including cuts in child payments, tax credits and some unemployment benefits, in parliament in Dublin. Prime Minister Brian Cowen has the support of 82 lawmakers in the parliament compared with 80 for the opposition, including independents. (Bloomberg)

U.K: Factory production grows more than forecast in October . Manufacturing output rose 0.6% MoM from September, the most in seven months. Overall industrial output fell 0.2% MoM as utilities and mines cut production. (Source: Bloomberg)

UK: Retail sales rose in November on food, clothing, BRC says
UK retail sales climbed in November as higher food-price inflation pushed up values and cold weather boosted demand for clothing and footwear, the British Retail Consortium said. Sales at stores open at least 12 months, measured by value, rose 0.7% from a year earlier, compared with a 0.8% gain in October, the London-based BRC said in an e-mailed statement. Excluding the impact of a sales-tax increase in January, underlying volume sales growth is “virtually zero,” it said. While the UK economy posted its strongest two consecutive quarters of growth in a decade this year, Britons are bracing for the biggest fiscal squeeze since World War II to tame the record budget deficit. (Bloomberg)

US: Job openings in US rise, pointing to payroll gains
Job openings in the US rose in October for the first time in three months, a sign gains in payrolls will accelerate in early 2011. The number of positions waiting to be filled increased by 351,000 to 3.36 million, the most since Aug 2008, the Labor Department said. Excluding a drop among government agencies, the 369,000 increase in openings at companies was the biggest in four years. Combined with declining claims for jobless benefits and surveys showing hiring at manufactures and service providers is picking up, report may help ease concern the labor market lost momentum in November. The government reported last week that the world’s largest economy created 39,000 jobs for the month, fewer than the most pessimistic forecast of economists surveyed by Bloomberg News. (Bloomberg)

U.S: Consumer credit increases for second month in October , led by an increase in non-revolving credit, including student loans held by the federal government. Credit climbed by USD 3.38b after increasing a revised USD 1.23b in September. Non-revolving loans rose for a third month as federal government education-related lending jumped an unadjusted USD 31.8b. (Source: Bloomberg)

U.S: Tax cuts may fuel economy, limit need to extend Fed purchases . President Barack Obama's agreement to extend Bush-era income-tax cuts may give U.S. economic growth a boost while reducing pressure on the Federal Reserve to prolong its USD 600b bond-purchase program. (Source: Bloomberg)

20101208 0935 Global Market News.

OIL: Crude falls 2nd day on concern about U.S. finances
SINGAPORE, Dec 8 (Reuters) - Oil fell for a second day on  Wednesday on concern about the long-term health of U.S.  finances and after an industry report showed a  larger-than-expected increase in the country's gasoline  stockpiles.   
A jump in U.S. bond yields continued to boost the dollar  after the administration of President Barack Obama proposed to  extend Bush-era tax cuts, prompting oil investors to cash in  after prices jumped to a 26-month high near $91 on Tuesday.

COMMODITY MARKETS: Oil, gold reverse gain on dollar, US tax caution
NEW YORK, Dec 7 (Reuters) - Crude oil, gold and copper retreated from highs on Tuesday as cautious traders cashed in gains following a dollar rally and amid concerns over the potential long-term effects of a U.S. tax-cut deal.
"Gold traders were looking for any excuse to sell and the rally in the dollar gave them one," said Adam Klopfenstein, senior market strategist with Lind-Waldock.
GLOBAL MARKETS: US bond yields surge, stocks erase gains
NEW YORK, Dec 7 (Reuters) - U.S. government bond prices fell sharply on Tuesday amid worries over the fiscal outlook, while Wall Street stocks ended up only slightly on concern about the impact of higher long-term rates.
"This reduces revenue on top of extending jobless benefits, which is bad for deficits. In the short run this is good news, but two to three years down the road foreign buyers of U.S. Treasuries may start to balk," said David Carter, chief investment officer at Lenox Advisors in New York. 

Russia May Extend Grain Export Ban If Weather Unfavorable :Official (Source: CME)

Russia may extend a ban on grain exports if weather is unfavorable for crop production, Russia's trade representative in Australia, Yury Aleshin, said. "It all depends on weather, we are not interested in artificial obstacles to trade but just compelled to do it," Aleshin said on the sidelines of a grains conference. Russia has banned grain exports until the end of next June due to the worst drought in the country's history during the harvest. Russia currently has sufficient wheat to meet local demand, and providing freight rate concession to encourage movement of grains from regions with surpluses to those with deficits and keep local prices under control. Aleshin added that the country may have to import a total of 3 million metric tons of feed grains such as barley and corn for animal feed

China rate rise talk builds as loans, inflation rise
BEIJING, Dec 7 (Reuters) - China is likely to raise interest rates in the coming days in a demonstration of the government's resolve to tame inflation, an official newspaper said on Tuesday. In a banner headline across its front page, the China Securities Journal said this weekend offered a "sensitive window" for a rate rise, which would be the country's second after a surprise increase in October, the central bank's first rate hike since 2007.

Japan corp mood tumbles, BOJ tankan likely bleak -poll
TOKYO, Dec 7 (Reuters) - The mood among Japanese manufacturers tumbled in December and their optimism is seen vanishing in three months, a Reuters poll showed, underscoring mounting uncertainty over an economy already struggling with waning demand at home and abroad. Companies complained about rises in raw materials prices and difficulty in passing on costs to customers as a strong yen and global slowdown hurt profits, according to the monthly poll taken Nov. 17-Dec. 2 of 400 big firms, of which 220 responded.

German industry powers ahead, pulls away from peers
BERLIN, Dec 7 (Reuters) - German manufacturing orders rose in October, official data showed on Tuesday, rebounding despite a fall in euro zone demand as Europe's largest economy pulls further away from its peers. Seasonally and price-adjusted orders rose 1.6 percent on the month, the Economy Ministry said, just missing the mid-range forecast in a Reuters poll of economists for a 2.0 percent rise.

PRECIOUS-Gold hits record for second day in a row
LONDON, Dec 7 (Reuters) - Gold hit record highs for a second successive day on Tuesday, driven by fund buying ahead of the end of the year, the prospect of more U.S. monetary easing and investor nervousness over the European debt crisis. Silver hit a 30-year high for the seventh consecutive day, driven by a weakening dollar and a push into commodities by the investment community ahead of the end of the year. Gold in euros also hovered near record highs as tension on the bond markets ran high.

FOREX-Euro rises on Irish optimism; riskier assets rally
LONDON, Dec 7 (Reuters) - The euro rose on Tuesday on optimism Ireland will pass an austerity budget later in the day, though support was expected to be fleeting, with the single currency still dogged by structural weaknesses in the euro zone. The dollar slipped against a currency basket after comments from Fed Chairman Ben Bernanke stoked expectations of prolonged U.S. monetary easing measures, supporting appetite for risk.

Wheat hits 4-month top as rains hurt Australia crop
SINGAPORE, Dec 7 (Reuters) - U.S. wheat futures climbed to four-month highs after Australia said heavy rains had weakened the quality of its crop even as it forecast record production. "There's no way in the world we'll hit that forecast," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney, who is only expecting 2010-11 wheat output to reach 24 million tonnes.

Cocoa futures hits 4-month high on Ivory Coast turmoil
ICE cocoa futures hit a four-month high in early trade as investors were cautious due to the uncertainty in top grower Ivory Coast following its disputed elections. Former South African leader Thabo Mbeki failed on Monday to settle an election row between Ivory Coast's presidential claimant Alassane Ouattara and incumbant Laurent Gbagbo, but appealed to both for a peaceful solution.

GLOBAL MARKETS-U.S. tax deal lifts stocks, euro up on Ireland
LONDON, Dec 7 (Reuters) - Global equities advanced on Tuesday after a compromise deal to extend expiring U.S. tax cuts, though the euro zone's debt crisis and speculation over a possible interest rate rise in China kept them in check. The euro rose on optimism that Irish lawmakers will pass its toughest ever budget later in the day. "The market is benefiting from the compromise in the U.S. on the extension of the Bush tax cuts and to a lesser extent from the probable voting (through) of the Irish (budget)," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets.

Oil slips from 26-mth high on China rate increase report
SINGAPORE, Dec 7 (Reuters) - Oil fell from a 26-month high on reports that China, the world's second-largest crude user, will raise interest rates as soon as this weekend, dampening investor enthusiasm for commodities driven by Asian demand. "China interest rates are a driver in the decline of the oil market," said Ken Hasegawa, a commodity derivatives manager at Japan's Newedge brokerage.

20101208 0931 Soy Oil & Palm Oil Related News.

Soy product futures finished mixed, with soyoil rising to a 3 1/2 week high before paring gains. Soyoil was buoyed by strength in world vegoil markets amid strong global demand. Furthering gains were optimistic outlooks for a pick up in domestic use from the biodiesel industry following industry talk that the $1.00 biodiesel blenders tax credit would be rolled into law makers' agreements on preserving U.S. tax cuts, analysts said. CBOT Jan soyoil ended 0.26 cents or 0.5% higher at 53.80 cents per pound, and Jan soymeal traded $2.20 or 0.6% lower at $344.30 a short ton. (Source: CME)

China Self-Sufficiency In Edible Oils Below Govt Threshold (Source: CME)
China's self-sufficiency in edible oils has fallen below a government threshold for national food security policy, the head of an agricultural research arm of the state-backed Chinese Academy of Agricultural Sciences said. As the world's largest consumer of vegetable oils confronts two-year-high inflation levels, Beijing has sought to roll back sharp increases in cooking oil prices, releasing half a million metric tons of edible oil reserves and telling producers to hold down price hikes until the Lunar New Year. "China's self-sufficiency in edible oils is now 34%, lower than the government's aim of 40%," said Wang Hanzhong, director of the academy's Oil Crops Research Institute. "This is considered quite dangerous," he told an industry conference. "It's not safe, and it's a matter that is getting attention from the government." The academy is China's national agricultural research body, affiliated to the Ministry of Agriculture.
Cooking oil, widely used by most households, is a poster child for the government's campaign to curb inflation. Officials from the National Development and Reform Commission, the country's top economic planning agency, told food producers to refrain from raising cooking oil prices until the Lunar New Year is over, an industry official familiar with the situation said last week. Companies would have to apply to the commission if they want to raise prices during this period, local media said. Cooking oil prices jumped 13% in October. However, prices have weakened with China last week announcing its seventh annual record harvest, which rose 2.9% on 2009 to reach 546.4 million metric tons.

Brazil soy planting reaches 91 pct area-Celeres
SAO PAULO, Dec 6 (Reuters) - The planting of Brazil's 2010/11 (Sept/Aug) soybean crop climbed to 91 percent of the expected area by Dec. 3, ahead of the 86 percent planted a year ago, grain analysts Celeres said on Monday. The analysts also lowered their expectation of the current crop output to 68.1 million tonnes from 69.1 million forecast last month due to lower yields out of Brazil's center-west soy states.

Argentine soy-crushing workers end brief strike
BUENOS AIRES, Dec 6 (Reuters) - Soy-crushing workers in key Argentine grain ports started to resume normal duties on Monday following a brief protest over safety conditions that brought plants to a virtual halt, a union leader said. The protest, which started at midnight (0300 GMT), affected soy-crushing plants and ports in Puerto San Martin and San Lorenzo, although workers agreed to undertake some maintenance tasks.