Tuesday, December 14, 2010

20101214 1822 FCPO EOD Daily Chart Study.

FCPO closed : 3680, changed : -42 points, volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : turned downward again, buyer taking profit.
Support : 3650, 3620, 3550 level.
Resistant : 3700, 3720, 3750 level.
Comment :
Hit 33 month high FCPO closed recorded losses with decreasing volume changed hand ahead of tomorrow export data release in tandem with soy oil futures prices that correcting downward after hitting new high.
Daily chart formed a down doji bar candle after market opened and tested new high triggered buyer to start their profit taking program pressed price down all the way to closed near the low of the day with the reading 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.

20101214 1741 FKLI EOD Daily Chart Study.

FKLI closed : 1510.5, changed : -1 point,  volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : weakening, buyer taking profit.
Support : 1500, 1485, 1470 level.
Resistant : 1530, 1550, 1580 level.
Comment :
Quiet FKLI ended the day recorded 2 ticks lower with relatively low volume transacted on par with cash market index as regional market traded mixed but ended slightly positive.
Daily chart formed a small 6.5 points range body down bar candle still doing correction with the reading suggesting a correction range bound upside biased market development testing supports 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.

20101214 1013 Global Economics News.

China: May allow Yuan options trading to help banks and companies protect their earnings from swings in foreign exchange rates, according to four people with knowledge of the plan. The State Administration of Foreign Exchange, the nation's currency regulator, has asked for some banks' opinions on the issue, according to the people, who asked not to be identified because the plan hasn't been announced. Trading may start in two months, two of the people said. Options give the buyer the right, not the obligation, to buy or sell the currency at a specific price on a specific date. (Source: Bloomberg)

China: Reserve ratio hike extended for three months
A selective increase in required reserves for Chinese banks that was due to expire this week will be extended for another three months. The move affects six of the country’s biggest lenders. With the extension of the selective process, the required reserve ratio will stand at a record high of 19% for the country’s biggest banks. The decision to extend the selective reserve requirement increase will lock up about RMB180bn in deposits that the banks would otherwise have had available to lend. (StarBiz)

China: Pledges to tackle inflation, growth model
China’s leaders pledged to accelerate a shift in the nation’s growth model in 2011 and also focus on stabilizing prices after an annual meeting in Beijing to set economic policy guidelines. The state-run Xinhua News Agency reported on the outcome of the so-called Central Economic Work Conference, attended by President Hu Jintao and Premier Wen Jiabao. Its initial accounts didn’t give any specific targets for growth, inflation or lending. The government reiterated its intention to keep the currency stable. (Bloomberg)

China: Increases banks’ reserve ratios to cool prices
China ordered lenders to park more money with the central bank for the third time in five weeks to counter the threat from inflation. Reserve requirements will increase 50 basis points starting 20 Dec, the People’s Bank of China said. (Bloomberg)

US: Budget deficit widens as spending increases
The US government posted a wider budget deficit in November as spending swelled compared with the same time last year when a shift in the timing of payments for programs like Medicare and Social Security damped outlays. The deficit was USD150.4bn last month, exceeding the median estimate of economists surveyed, compared with USD120.3bn in November 2009, according to the Treasury Department’s budget statement released in Washington. (Bloomberg)

US: Confidence rises to a six-month high
Confidence among US consumers increased in December to a six-month high, coinciding with stronger holiday sales that show the economy is gathering speed. The Thomson Reuters/University of Michigan preliminary index of consumer sentiment rose to 74.2 from 71.6 at the end of November. A Commerce Department report showed the US trade deficit shrank more than the forecast in October to USD38.7bn as growing economies overseas propelled exports to a two-year high. (Bloomberg)

US: Retail sales probably climbed in November
Retail sales probably climbed in November for a fifth consecutive month as Americans began their holiday shopping, showing consumers are playing a bigger role in the US recovery, economists said before a report this week. The projected 0.6% gain would follow a 1.2% October increase in purchases, according to the median of 62 estimates in a survey ahead of Commerce Department figures on 14 Dec. (Bloomberg)

E.U: ECB steps up bond purchases to fight market tensions. The Frankfurt-based ECB said it completed EUR 2.667b (USD 3.56b) of purchases after settling EUR 1.965b the previous week. That's the most in 23 weeks. (Source: Bloomberg)

U.K: Retailers see Christmas at least as good as 2009, BRC says. Almost two-thirds of U.K retailers predict Christmas sales will be the same or better than last year as stores step up discounts, the British Retail Consortium said. Thirty-five percent of retailers surveyed said sales will be better than last year, and 29% predicted they will be the same, while 36% expected sales to decrease, the London-based group said in an emailed statement. (Source: Bloomberg)

20101214 1012 Malaysia Corporate News.

Naza brothers exit Kumpulan Jetson
The Naza brothers Sheikh Mohd Nasarudin SM Nasimuddin and Sheikh Mohd Faliq SM Nasimuddin have resigned as directors of Kumpulan Jetson. The group told Bursa Malaysia yesterday that the resignations of Nasarudin, 27, and Faliq, 25, came into effect the same day. The brothers were deemed interested by virtue of their interest in Superior Pavillion, which owns 13.12 million Jetson shares. Jetson also announced yesterday that the brothers had disposed of 4.37 million Jetson shares, or 7.22% stake, for RM1.05 each on 8 Dec. They were believed to initially have big plans for the company but lost interest after disagreements with other shareholders, stemming from unsettled financial issues within Jetson. (StarBiz)

Johor Corp confident of clearing debt by 2012
Johor Corp Bhd’s newly-appointed CEO Kamaruzzaman Abu Kassim says he is confident that the group’s debts will be cleared by 2012 based on its strengths, particularly its existing assets such as landed properties and bonds. JCorp is confident of restructuring its RM3.6bn debt by the first quarter of 2012. Kamaruzzaman Abu Kassim said the company has appointed Maybank Investment Bank Bhd and CIMB Investment Bank Bhd as advisers in a debt-restructuring scheme which started four months ago. (Malaysian Reserve)

TSM Global plans RM30mcapex for expansion
TSM Global plans to allocate RM30m in FY12 to acquire machinery and expand its capacity after securing contracts to supply auto-parts for the localized Toyota Camry that is slated for production in 2012. (FinancialDaily) 

Petronas denies report on RM8bn bid for UK firm
Petroliam Nasional Bhd (Petronas) said it has not put in a GBP1.71bn (RM8.49bn) cash bid to buy Heritage Oil Plc, an independent upstream exploration and production company listed on the London Stock Exchange (LSE). Petronas has never made a cash bid for Heritage Oil based in the United Kingdom, it said in a statement issued to StarBiz yesterday, following a foreign news report that Petronas would look into buying Heritage Oil. UK's Daily Mail reported on Thursday that Petronas would soon put in a cash bid of GBP1.71bn to buy Heritage Oil, which would give it exposure to relatively low-risk exploration fields in Iraqi Kurdistan and Malta in the near term. Any cash offer for Heritage would have to be agreed by chief executive Tony Buckingham, who sits on 29.7% of the (company's) equity, the report said. The Daily Mail said Buckingham had pocketed 84.5m in August after announcing a 1-a-share special dividend with the firm's 50% stake sale in a series of oil exploration assets in Uganda and would reap a further 51mil-plus should Petronas make a bid to buy Heritage Oil. (StarBiz)

Marine construction company Benalec set for early 2011 IPO
Benalec Holdings Bhd, the country’s second largest marine construction firm by market share, is set to list on the Main Market in the first quarter of next year. Having just received in the first week of December approval for the listing on the local bourse, the company expects to raise some RM100m from the IPO, said the group managing director Vincent Leaw Seng Hai. According to the MD, the proceeds raised are intended for the use of working capital. (Financial Daily)

PHB secures anchor tenants for Nu Sentral
Pelaburan Hartanah Bhd (PHB) has secured two anchor tenants, Golden Screen Cinema (GSC) and Parkson, for its seven-storey retail development called Nu Sentral in Kuala Lumpur Sentral. Nu Sentral is part of a bigger 2.4ha integrated commercial development called Lot G, being jointly developed by Malaysian Resources Corp Bhd and PHB. "Both Parkson and GSC take up about 25% of the 460,000 sq ft net lettable area in Nu Sentral," PHB managing director and chief executive officer Kamalul Arifin Othman told Business Times. The development will also have a 27-storey office building with a net lettable area of 450,000 sq ft. Lot G, with gross development value of RM1.4bn, is slotted for completion in 2012. It is set to be one of the developments PHB plans to inject into its recently-launched Amanah Hartanah Bumiputera unit trust scheme. (BT)

US firm to build RM1bn solar cell plant in Perak
US-based Twin Creeks Technologies Inc (TCTI) will invest about RM1bn to build a plant that will produce highpower solar cells and panels at Kanthan Industrial Area here. The plant will be run by Twin Creeks Malaysia SB, a joint venture between TCTI, Perak State Development Corp and a state government subsidiary, The Red Solar (M) SB. Phase one of the plant would begin with a production capacity of 100 MW in 2012, which would be raised to 500 MW in 2014, The Red Solar said in a statement yesterday. Twin Creeks Malaysia also plans to continue with the second phase construction of the plant in 2015 on a 15ha stretching to Perak Hi-Tech Park. (StarBiz)

Ramunia unit slapped with RM16m suit
Ramunia Holdings Bhd’s wholly owned unit, Ramunia Fabricators SB, has been slapped with a RM15.9m suit by Ulti Resources SB for unlawful possession of land, according to a filing to the exchange last Friday. The plaintiff is seeking the amount and claims that Ramunia Fabricator had unlawfully entered and took possession of the lands in Kota Tinggi, Johor, in July 2008. (Malaysian Reserve) 

O&G: M'sia and Brunei ink billion-ringgit oil and gas exploration pact. Malaysia has sealed a 40-year joint oil and gas exploration deal with Brunei which is expected to generate billions in revenue for both countries. The deal involves two deep water blocks - CA1 and CA2 - located within the two countries' commercial arrangement area along the Brunei-Sarawak maritime border near the Limbang division. Petronas will also be looking into possible joint ventures with Brunei National Petroleum Company Sdn Bhd (Petroleum Brunei) to explore oil and gas in a third country and development of downstream industries. (Source: The Star)

CIMB: Unit eyes USD100m in sales from Dublin funds. CIMB-Principal Islamic Asset Management Sdn Bhd(CPIAM) is targeting about USD100m in sales for its Dublin domiciled syariah funds by the end of next year. CIMB intends to launch three funds under the UCITS III structure, all of which can be freely marketed across Europe. (Source: The Star)

Proton: To spend GBP480m on Lotus. Proton Holdings announced that the total forecast capital expenditure for Group Lotus plc's business turnaround plan is about GBP480m (RM2.37b) over a five-year period. The funds will obtained from internally generated funds and externally secured funding during the turnaround period. (Source: The Edge Financial Daily)

WCT: Eyes more jobs in Qatar. WCT sees opportunities in Qatar as more infrastructure projects are expected to be implemented in preparation for 2022's FIFA World Cup. Bloomberg has reported that Qatar would spend USD57b (RM178.4b) on infrastructure developments related to the World Cup over the next decade. (Source: The Edge Financial Daily)

KPJ: Enhances medical business with takeover. KPJ Healthcare Bhd has acquired the 28-year-old Sabah Medical Centre (SMC). SMC would be KPJ's second venture in Sabah after the company took over the Damai Medical Centre five years ago. (Source: The Star)

KYM: Secures jobs from Vale. KYM Holdings Bhd has been awarded a contract valued at RM0.6m by Vale International SA for the provision of consultancy services relating to Vale's land acquisition in Teluk Rubiah, Perak. (Source: The Star)

Conglo: JCorp is not selling assets to repay RM3.6b debt. Johor Corp (JCorp) will not be selling any of its assets to repay its RM3.6b bonds due on July 31, 2012. JCorp is planning to refinance the debt instead. CIMB Bank and Maybank Investment Bhd have been appointed as the financial advisor. (Source: The Star)

Gaming: Olympia said to be keen on Pan Malaysian Pools. Olympia Industries Bhd has expressed an interest to acquire Pan Malaysian Pools Sdn Bhd from Tanjong plc. However, no formal offer has been made yet. (Source: The Star)     

20101214 0938 Global Market News.

OIL: Oil unchanged, market focus still on China
Oil prices fell on Tuesday in early Asian trade after moving higher in the previous session supported by data showing higher Chinese demand for oil in November. 
China's apparent oil demand hit a record 9.3 million barrels per day in November as refineries made more diesel than ever to help cover shortages on the domestic market,  Reuters calculations based on preliminary data showed. Crude oil processing hit a record 8.92 million bpd.

COMMODITY MARKETS: China stokes copper record, oil lags
NEW YORK, Dec 13 (Reuters) - Reports showing China's economy remains on the boil drove copper to record highs on Monday and triggered a run-up in many other commodities despite speculation that the giant raw materials consumer will raise interest rates soon, dampening demand.
"It's going to take an act of God to get the Fed to trim its bond buying," said Michael Woolfolk, an analyst at BNY Mellon. "That's what people are concerned about."
GLOBAL MARKETS: Global stocks rally falters, dollar slips
NEW YORK, Dec 13 (Reuters) - A stock rally fizzled on Wall Street on Monday as investors took profits and the dollar fell after Moody's warned it may change its U.S. outlook if a tax-cut deal is adopted.
"We've had a decent run-up over the last week or so and the market started out strong, but we saw a bit of profit-taking at the end," said Giri Cherukuri, head trader at Oakbrook Investments LLC in Lisle, Illinois.

SCENARIOS-China policy tightening and commodities
Dec 13 (Reuters) - Commodity investors may be switching  their stance on the risk of Chinese policy tightening away  from last month's fear to an optimistic outlook reflecting the  positive historical correlation between inflation and  commodity prices.
With data over the weekend showing inflation running at a  28-month high above 5 percent, most market watchers expect  Beijing to continue to tighten policy, including raising  interest rates.

China extends reserve requirements for top banks
HONG KONG/BEIJING, Dec 13 (Reuters) - China's central bank  told six of the country's biggest lenders that a special  increase in required reserves will be extended, the latest  step to try to quell inflation in a campaign that leaders this  weekend suggested would be intensified.
Three industry sources told Reuters that the special  increase in reserves that had been due to expire this week  will be extended for three months. That followed an official  reserve requirement increase for all banks -- the third in a  month -- that was announced on Friday.

PRECIOUS-Gold firms on physical demand, weaker dollar
LONDON, Dec 13 (Reuters) - Gold extended gains above $1,390 an ounce in Europe on Monday as the dollar surrendered early gains against the euro, and as last week's price dip of more than 2 percent brought physical buyers back to the market.
Concern over the outlook for the euro zone is also lending support to the precious metal, which is often seen as a safe store of value, analysts said.

FOREX-Euro bounces on sovereign buys; debt woes linger
LONDON, Dec 13 (Reuters) - The euro trimmed losses against the dollar on Monday, helped by East-European and Latin-American demand but hampered by uncertainty about how the euro zone would deal with its debt problems.
Trading volumes were reduced by the approach of the year-end, while few investors were willing to take on big positions before a Federal Reserve meeting this week and a European Union summit on Thursday and Friday.

U.S. wheat firm as weather worry outweighs USDA data
U.S. wheat and corn futures  crept higher on Monday in Asia, erasing early losses, as  persistent concerns about the impact of weather on global  supplies outweighed upbeat forecasts by the U.S. government.  "I think questions remain on the Australian crop and drier  conditions in the U.S. and China. These weather concerns are  probably overshadowing any announcements from the USDA," said  Garry Booth, a trader at MF Global Australia.

Treasury yields rise again, equities up
Selling pressure on 10-year U.S. Treasuries drove yields to fresh six-month highs on Monday as investors threatened to undo this year's bond rally on signs of global economic recovery and deeper U.S. deficits.  "If the market really thinks there will be a rate hike within a year, then the two-year yield could rise near 1 percent," said Tomoaki Shishido, a fixed-income analyst at Nomura Securities in Tokyo, adding that he did not believe there would be such a rate rise.

Oil steady to higher after OPEC output unchanged, eyeing China
PERTH, Dec 13 (Reuters) - Oil prices were steady to higher  after the Organization of Petroleum Exporting  Countries(OPEC) met over the weekend and agreed to keep crude  oil output levels flat.
"It looks like fundamentals are getting stronger heading into winter," said Tony Nunan, a risk manager with Tokyo-based Mitsubishi Corp.    

COMMODITY MARKETS: Investors try to defend profit in thin trade
NEW YORK, Dec 10 (Reuters) - Copper hit a near record high but most commodities fell in thin trade for a second straight day on Friday as investors tried to defend profits before the year-end, amid a resurgent dollar.
"Investors who have performed well this year may be looking to protect their gains rather at this stage," said Anne-Laure Tremblay, an analyst for gold and other precious metals at BNP Paribas in London. U.S. silver producer, Coeur d'Alene Mines Corp.
GLOBAL MARKETS: Asian stocks rise, dollar up on upbeat U.S. data
SYDNEY, Dec 13 (Reuters) - Asian stocks rose on Monday as  investors took in their stride China's latest attempt to cool  inflation and fresh vows to tackle price pressure, while  upbeat U.S. economic data helped   shore up the dollar.
"Investors are thinking about this issue more sensibly  than they may have done so in the past, realising the broad  growth in the Chinese economy is good and policy makers aren't  over-reacting in terms of trying to slow the economy down,"  said Craig James, chief economist at CommSec.

20101214 0937 Soy Oil & Palm Oil Related News.

Soy product futures settled higher, rallying in step with soybeans amid broad-based commodity buying. Soyoil was the upside leader of the products, garnering additional support from strong global vegoil demand and fears weather issues for Malaysian and Indonesian palm oil crops will trim world vegoil supplies, analysts said. Strong gains in crude oil aided the supportive tone. Crude oil influences grain and oilseeds due to their use in making renewable fuels. Soyoil, a byproduct of soybeans, is the primary feedstock for U.S. biodiesel production. CBOT January soyoil ended 1.29 cents, or 2.4%, higher at 55.45 cents per pound, and January soymeal traded $5.20, or 1.5%, higher at $342.80 a short ton. January oil shar was 44.67%, while the January soybean crush margin ended at 60 1/4 cents. (Source: CME)

India November Vegetable Oil Imports Fall 11% To 668,917 Tons (Source: CME)
India's vegetable oil imports in November fell 11% from a year earlier to 668,917 metric tons due to higher availability of domestic oilseed crop and rising global prices, the Solvent Extractors' Association of India said. Edible oil imports during the first month of the marketing year that began Nov. 1 totaled 652,262 tons, down from 712,677 tons, the trade body said. India is the world's second-largest vegetable oil importer after China and meets more than half of its requirements through imports.
Import price of crude palm oil rose about 55% to $1,088 per ton, while soyoil price increased more than 30% to $1,192/ton. "Local oilseeds crushing has also improved, compared with last year," said B.V. Mehta, executive director of the trade body. According to the Central Organization of Oil Industry and Trade, India's summer-sown oilseeds output in the crop year that began Oct. 1 is likely to rise 12.4% to 15.4 million tons from 13.7 million tons in the previous year. India's edible oil imports this marketing year are likely to remain unchanged from previous year's 8.8 million tons, Sushil Goenka, president of the Solvent Extractors' Association, said earlier this month.

Palm at 30-mth highs on weather concerns, China
Malaysian palm oil futures hit a 30-month high on Monday, bolstered by concerns over supply tightness during the monsoon season and a firmer  Chinese soyoil market. "Production is going to fall in December, as output has  been sizing down due to heavy rains that started two months  ago," said a trader with foreign brokerage in Kuala Lumpur.

China edible oil supply guaranteed ample - NDRC
BEIJING, Dec 13 (Reuters) - Domestic supplies of edible oils are guaranteed to be ample, said the country's top economic planner on Monday, refuting a media report of possible shortages during the Spring Festival.
"With a surge in soybean imports this year, state oilseed and oil stocks are ample, while enterprise stocks are plentiful and production levels are normal," said the National Development and Reform Commission in a statement published on its website.

India's Nov vegoil imports dip on higher local crush
NEW DELHI, Dec 13 (Reuters) - India's vegetable oil imports in November fell 11.3 percent from a year earlier on higher local soybean crushing compared with the previous month, a leading trade body said on Monday.
"Soybean crushing was good last month. It trimmed overseas requirement," said B.V. Mehta, executive director of the Solvent Extractors' Association of India.