Wednesday, December 22, 2010

20101222 1846 FCPO EOD Daily Chart Study.

FCPO closed : 3621, changed : +60 points, volume : higher.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : turned upward, buyer seems gathered confident to stay and seller leaving.
Support : 3620, 3550, 3500 level.
Resistance : 3650, 3700, 3720 level.
Comment :
FCPO closed recorded gain again with better volume traded as weather factor raise production concern while soy oil and crude oil futures price continue to surge higher ground.
Daily chart formed an up doji bar candle surging higher with the reading remained suggesting a correction range bound upside biased market development testing higher resistance level.
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.

20101222 1826 FKLI EOD Daily Chart Study.

FKLI closed : 1516, changed : +2 points,  volume : lower.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : rising, buyer taking small position.
Support : 1515, 1500, 1485 level.
Resistance : 1530, 1550, 1580 level.
Comment :
6.5 points range market FKLI closed recorded marginal gain with more than 50% lower of yesterday volume changed hand while regional market closed mixed with Greece economy face "JUNK" rating by fitch plus a tensioned Korean peninsular zone.
Daily chart formed an up doji bar candle managed to break and closed above another resistance level at 1515 heading towards upper Bollinger band level with the reading suggesting a side way range bound little upside biased market development testing higher resistance 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.

20101222 0937 Global Economics Related News.

Hong Kong: Inflation rate climbed to 2.9% in November
Hong Kong’s inflation rate accelerated to the highest level in three months in November on rising private-sector rents and food costs. Consumer prices rose 2.9 percent from a year earlier, compared with 2.6 % in October, the government said on its website today. The reading matched the median estimate of 10 economists in a Bloomberg News survey. (Bloomberg)

Japan: Bank of Japan pledges to steadily buy more assets
The Bank of Japan said it will “steadily” provide liquidity to support demand and Governor Masaaki Shirakawa warned about the risks a climb in bond yields posed to the nation’s expansion. “Volatile long-term rates can affect the economy, prices and financial conditions by influencing borrowing costs for households and companies,” Shirakawa told reporters in Tokyo today after the central bank left its credit programs unchanged and kept the key interest rate between zero and 0.1 %.(Bloomberg)

U.K : Budget gap swells to record as spending jumps
Britain’s budget deficit swelled to a record in November, underscoring the challenge facing Prime Minister David Cameron as his government prepares to implement the deepest spending cuts since World War II. Net borrowing was GBP22.8 billion (USD35.4 billion), compared with GBP16.7 billion a year earlier, the Office for National Statistics said in London. That exceeded the GBP16.8 billion median forecast of the 12 economists in a Bloomberg survey. (Bloomberg)

US: Fed extends swap lines with ECB, other central banks
The Federal Reserve authorized the extension through 1 Aug of its temporary dollar liquidity swap arrangements with the European Central Bank and the central banks of Japan, Canada, Switzerland and the United Kingdom. The arrangements had been authorized through January, the Fed said today in a statement. Fed officials voted in May to restart the emergency currency-swap tool to keep Europe’s sovereign-debt crisis from spreading to US markets. (Bloomberg)

20101222 0935 Malaysia Corporate Related News.

PLUS imposes RM50m bidding deposit
Plus Expressways’ board is giving bidders close to three weeks to cough up RM50m as deposit for offers received by the end of tomorrow. The deposit will only be refunded if the offer is rejected by the board. As of yesterday, PLUS had two bids on the table, one from UEM Group and the Employees Provident Fund, and another from Jelas Ulung SB. On the surface, Jelas Ulung has the more attractive bid with RM26bn for PLUS' business, and no request for compensation from the Government or a tax waiver. PLUS said bids received by the end of the business day tomorrow would be required to put up the deposit by 10 Jan 2011. The company also said that it will seek an adjournment of the EGM to approve the UEM-EPF bid, planned for tomorrow, to have more time to evaluate the offer by Jelas Ulung. (BT)

KNM bags RM2.1bn UK energy contract
KNM Group Bhd has clinched a RM2.1bn contract for the engineering, procurement, construction and commissioning of 80MW gross capacity energy from a biomass and waste recycling centre project in Peterborough, the UK, for the next four years. KNM said wholly-owned KNM Process Systems SB had secured the “EnergyPark Peterborough” project with Peterborough Renewable Energy Ltd. “This project represents KNM’s drive into the renewable and clean energy sector,” it said. KNM Process was set up in June 1990 and is principally involved in the design, engineering, procurement and manufacturing of process equipment. (BT)

DRB-HICOM in milestone deal with VW
DRB-HICOM and Volkswagen AG, the largest carmaker in Europe, will collectively invest close to RM1bn over the next five to six years mainly to set up the infrastructure to assemble VW vehicles in Malaysia. About RM600m to RM700m will be invested by DRB-HICOM, with the balance by VW. "A bulk of it (about RM300m) will be used to buy the necessary equipment and machines for the production. A lot of the production will be robotised," DRB-HICOM group managing director Datuk Seri Mohd Khamil Jamil said. The local production of first batch of VW vehicles, namely the Passat and the Jetta, will begin in the fourth quarter of next year. DRB-HICOM is expected to produce 40,000-50,000 VW vehicles over the near term, for domestic sales initially and for the export market as early as the fourth quarter of 2012. (BT)

Maxwell to be sixth China company to list on Bursa
Maxwell International Holdings, a Chinese sports footwear manufacturer, will spend RM37.5m to set up a plant in China to double its production. Chairman and executive director Jenny Li Kwai Chun said the new plant will help Maxwell make 16m pairs of sports shoes a year. Li said the plant expansion is in line with the company's aim to grow and gain a larger share in China's rubber and plastic shoes industry, from 0.3% now. Maxwell does not carry its own brand. All its shoes are exported to Asia, Europe and US as original equipment manufacturer and original design manufacturer for brands like Kappa, Diadora, Brooks and Yonex. "We expect the plant to double our revenue once it is fully operational in 2012," she told reporters. Maxwell aims to raise RM34.4m from its initial public offerings (IPO) and plans to list on Bursa Malaysia's Main Market by January next year with a market capitalisation of RM216m. Its IPO consists of a public issue of 63.75m new shares at an issue price of 54 sen each. Of the total, 20m shares will be allocated for the Malaysian public and 43.75m shares for private placement to selected investors. (BT) 

20101222 0904 Global Market Related News.

Oil up near $90/bbl as crude, gasoline inventories drop
PERTH, Dec 22 (Reuters) - Oil prices rose to  hover just below $90 a barrel, supported by data showing a  drop in U.S. oil and gasoline inventories, a winter cold snap  in the United States and Europe amid thin trading volumes.
"Big drops in crude oil and gasoline inventories in the  API data pushed the oil market to the up. But buying interest  around this level, around $90 a barrel, is not so large, "  said Ken Hasegawa, a commodity derivatives  manager at Japan's  Newedge brokerage.    

Japan Nov crude oil imports rise 5.8 pct y/y
TOKYO, Dec 22 (Reuters) - Japan's crude oil import volume rose 5.8 percent in November from a year earlier, the biggest rise since May 2008, as refineries replenished supplies ahead of the peak winter season while stocks remain low.
Japan, the world's third-biggest oil consumer, imported 18.833 million kilolitres (3.95 million barrels per day) of crude oil last month on a customs cleared basis, preliminary data from the Ministry of Finance showed on Wednesday.

Gold ticks up on euro zone debt fears; currencies watched
SINGAPORE, Dec 22 (Reuters) - Gold inched up,  with sentiment still supported by worries of more ratings  downgrades for debt-ridden European countries and the euro's  diminishing appeal to investors. 
"Every time we touch a high, we can see many people taking a chance to take profits," said Louis Lok, a dealer at Bank of China in Hong Kong. 

Euro off lows on report of China help offer; stocks hold gains
SINGAPORE, Dec 22 (Reuters) - The euro won some reprieve  from a report of China's offer to help Europe contain the debt  crisis that has kept the single currency on the defensive and  drove it to record lows against the Swiss franc in early  Wednesday trade.
Asian stock markets clung to Tuesday's gains in light  pre-holiday trade after upbeat arnings forecasts and a flurry  of merger activity lifted European and Wall Street stocks,  pushing U.S. stocks to more than two-year highs. 

OIL: Crude extends gains on API crude stock drop
TOKYO, Dec 22 (Reuters) - U.S. crude futures extended gains to near $90 a barrel on Wednesday, getting support from industry data showing a surprise large drop in U.S. crude inventories.
Prices got a lift from American Petroleum Institute data, released late on Tuesday, showing a large 5.8 million barrel decline in weekly crude stocks, surpassing analyst expectations for a 2.3-million-barrel drop in a Reuters poll.

COMMODITY MARKETS: Up again despite dollar; copper, cotton hit record
NEW YORK, Dec 21 (Reuters) - Commodity prices rose for a second straight day on Tuesday as investors betting the sector would keep rallying in 2011 bought into thinly traded markets, pushing copper and cotton to a record and many markets higher.
"This is year-end and people are squaring their books, but it seems like there are fresh funds coming in," said Andrey Kryuchenkov at Moscow-based commodity traders VTB Capital.

GLOBAL MARETS: Global stocks rise ahead of 2011, euro down
NEW YORK, Dec 21 (Reuters) - Global stocks rose on Tuesday on upbeat corporate results and mergers amid bets of stronger global growth next year, while the euro fell on worries of more ratings downgrades for indebted euro zone countries.
"U.S. economic policy has improved confidence in the outlook for growth and corporate earnings next year, and investors are taking the view that bond markets are no longer the place to be," said Mike Lenhoff, chief strategist at Brewin Dolphin.

China frets about spreading EU debt woes
BEIJING, Dec 21 (Reuters) - China urged European  authorities to back their tough talk with action on Tuesday by  showing they can contain the euro zone's simmering debt  problems and pull the bloc out of its crisis soon.
China, which has invested an undisclosed portion of its  $2.65 trillion reserves in the euro, said it backed steps  taken by European authorities so far to tackle the region's  debt problems, but made clear it would like to see the  measures having more effect.

BOJ stands pat on policy, warns on output fall
TOKYO, Dec 21 (Reuters) - The Bank of Japan kept monetary policy steady as widely expected on Tuesday, holding off on easing as it scrutinises how escalating debt woes in Europe and a U.S.-driven rise in bond yields affect Japan's fragile economy.
In a statement announcing the rate decision, the central bank said it will steadily purchase various assets and provide longer-term funds through its 35 trillion yen ($418 billion) asset buying and market operation fund, to ensure that the effects of its monetary easing steps spread across the economy.

PRECIOUS-Gold rises towards $1,390/oz on euro, safe-haven bid
LONDON, Dec 21 (Reuters) - Gold prices rose towards $1,390 an ounce in Europe on Tuesday, supported by fresh strength in the euro and buoyant interest in the metal as a haven from risk amid fears of further borrowing strains in the euro zone.
Tensions ran high after ratings agency Moody's said it had put Portugal on review for a possible downgrade. This pulled gold from highs as it brought the euro under some pressure, though the single currency remained higher on the day.

FOREX-Euro pares gains as Moody's puts Portugal on review
LONDON, Dec 21 (Reuters) - The euro pared gains against the dollar in thin trade on Tuesday after ratings firm Moody's put Portugal on review for a possible downgrade, reinforcing worries that the euro zone's debt crisis would persist well into 2011.
The single currency also fell to a fresh lifetime low versus the Swiss franc as investor concerns over the euro zone periphery enhanced the safe haven status of the franc.

Wheat holds near 19-week top, corn firm on Argentina
SINGAPORE/MILAN, Dec 21 (Reuters) - Wheat prices were firm with the U.S. futures trading close to a 19-week top hit in the last session on concerns over supplies next year. Corn edged higher as hot weather and limited rainfall in Argentina fuelled worries about crop prospects in the world's second-largest corn exporter. "The focus is on harvest in Australia and certainly there has been some progress," said Brett Cooper, senior manager for markets at FCStone Australia.

China weekly corn sales low, local govt to buy corn
BEIJING, Dec 21 (Reuters) - Trades at a weekly state corn sale on Tuesday remained low, with feed mills in the south the biggest buyers because of cheap prices, while companies boosted purchases of this year's corn from farmers.
The central government sold 190,200 tonnes of nearly 1.8 million tonnes offered at the auction.

Euro slips on Moody's Portugal review; stocks up
LONDON, Dec 21 (Reuters) - The euro pared gains after Moody's put Portugal on review for a possible downgrade, while world stocks rose, driven by bargain-hunting investors betting on stronger global growth next year. "The Moody's announcement on Portugal has knocked some of today's optimism out of the euro but these credit announcements are not completely out of the blue any more so the negative reaction is always going to be a little bit more dampened than six months ago," said Jane Foley, senior currency analyst at Rabobank.

20101222 0903 Soy Oil & Palm Oil Related News.

U.S. corn ticks up, soy steady on Argentine weather
SINGAPORE, Dec 22 (Reuters) - U.S. corn futures ticked  higher, rising for sixth straight session, while  soybeans were little changed at 5-1/2 week top as hot weather  and lack of rains in Argentina continued to raise supply  concerns.
"There have been some concerns over the past few sessions on Argentine dryness. That is not a new concern and it is certainly on our watch list," said Luke Matthews, a commodity strategist at the Commonwealth Bank of Australia.

U.S. analyst cuts Argentine soy production forecast
CHICAGO, Dec 21 (Reuters) - Private U.S. crop analyst Michael Cordonnier said Tuesday he cut his forecast for 2010/11 Argentine soybean production due to hot and dry weather in key production areas of the No. 3 soybean exporter.
Cordonnier pegged the Argentine soy crop at 49 million tonnes, down from his previous estimate of 50 million. 

Soy product futures climbed in unison with soybeans. Soyoil futures led the advances, grabbing a larger percentage in overall value of the soy products, amid strong world vegoil demand and outlooks for improved domestic usage in the biodiesel industry, analysts said. CBOT Jan soyoil ended 0.58c or 1.1% higher at 55.56 cents per pound, and Jan soymeal traded $1.10 or 0.3% higher at $352.60 a short ton. (Source: CME)

Palm oil up on weather potentially sapping output
KUALA LUMPUR, Dec 21 (Reuters) - Malaysian crude palm oil  futures rose 1.2 percent  as traders grew more  concerned over heavy rains curbing production in the world's  second largest producer of the vegetable oil."Palm oil could easily hit 4,000 ringgit early next year  if the crazy weather continues," said a trader with a foreign  commodities brokerage.

Indonesia to hike Jan palm export tax to 20 pct
JAKARTA, Dec 21 (Reuters) - Indonesia may hike its palm  oil export tax to 20 percent in January, from 15 percent in  December, in line with rallying international prices, industry  sources familiar with the matter told Reuters on Tuesday.
The higher tax could slow exports in January as sellers in  the world's largest producer hold shipments to avoid the hefty  hike.

China sells 57,700 T rapeseed oil, 58 pct of offer
BEIJING, Dec 21 (Reuters) - China on Tuesday sold 57,700 tonnes of rapeseed oil out of 100,000 tonnes on offer from state reserves. The sales, once in two weeks since November, are aimed to cool food prices in the run-up to the holiday period.
The rapeseed oil was sold at an average of 9,255 yuan ($1,387) per tonne, slightly higher than the previous price after the rebound of domestic edible oil prices.

Rains to fan out over all Brazil soy areas-Somar
BRASILIA, Dec 20 (Reuters) - Brazil should see rains covering all its soy-producing regions by next week, forecaster Somar said on Monday, topping up moisture levels in areas that had been making do with a lot less rain.
Many areas should receive showers this week also as a cold front makes its way from the southernmost state Rio Grande do Sul, an important soy producer, up to other states growing the oilseed including Parana and Mato Grosso do Sul.