Friday, December 24, 2010

20101224 1829 FCPO EOD Daily Chart Study.

FCPO closed : 3665, changed : +7 points, volume : lower.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : recovering, buyer continue stay put.
Support : 3650, 3620, 3550 level.
Resistance : 3700, 3720, 3750 level.
Comment :
Low participation FCPO recorded small gain with quiet volume traded ahead of next Monday export data release after soy oil and crude oil futures price traded and closed for the holiday higher.
Another small body up doji bar candle day (the 5th continuous) edge up little higher a longer lower shadow while the Bollinger band width continue to turn inwards suggesting a side way 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.

20101224 1819 FKLI EOD Daily Chart Study.

FKLI closed : 1516.5, changed : -0.5 point,  volume : lower.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : rising, buyer still holding on.
Support : 1515, 1500, 1485 level.
Resistance : 1530, 1550, 1580 level.
Comment :
Holiday mood FKLI traded quietly closed 1 tick lower with much lower volume changed hand as most regional markets closed recorded small loss.
Daily chart formed the 3rd doji bar candle with longer lower shadow after market tested below 1515 support level and recovered while the Bollinger band stop turning inwards suggesting a side way range bound upside biased market development.
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.

20101224 1121 Global Economics Related News.

Singapore: Inflation accelerated to 22-month high in November
Singapore’s inflation rate rose to the highest level since January 2009, an acceleration that may put pressure on the central bank to allow further currency appreciation to curb price increases. The consumer price index climbed 3.8% in November from a year earlier, after gaining 3.5% in October, Singapore’s Department of Statistics said in a statement. That matched the median estimate of 14 economists surveyed by Bloomberg News. Prices rose 0.3% from October, without adjusting for seasonal factors. (Bloomberg)

India: Food inflation accelerates as onion costs jump
India’s food inflation accelerated to a six-week high, adding pressure on authorities to curb a jump in onion prices that has forced the nation to halt exports of the staple this week and toppled governments in the past. An index measuring wholesale prices of agricultural products including lentils, rice and vegetables compiled by the commerce ministry rose 12.13% in the week ended 11 Dec from a year earlier, a trade ministry report showed in New Delhi. The index gained 9.46% the previous week. (Bloomberg)

South Korea: Consumer confidence declines on jobs, growth outlook
South Korean consumer confidence declined in December as people became less optimistic about the economy and job prospects. The sentiment index fell to 109 from 110 in November, the Bank of Korea said. A number exceeding 100 indicates optimists outnumber pessimists. The central bank left borrowing costs at 2.5% this month after an appreciation in the nation’s currency contributed to a moderation in economic expansion. It increased interest rates by a quarter percentage-point each in July and November from a record-low 2%. GDP growth will cool to 4.5% next year, from 6.1% in 2010, the monetary authority said. (Bloomberg)

US: New home sales, prices rise in Nov
New US single-family home sales rose in November but to a lower-than-expected rate, a government report showed, highlighting the weakness in the housing market even as the broader economic recovery gains momentum. The Commerce Department said sales increased 5.5% to a seasonally adjusted 290,000 unit annual rate after a downwardly revised 275,000 unit pace in October. (Bloomberg)

US: Consumer spending increase, jobless claims dip
Americans increased spending in November for a fifth straight month and companies stepped up orders for equipment, more evidence the US economy is gaining momentum heading into 2011. Household purchases rose 0.4% after a 0.7% increase in October that was almost twice as large as previously estimated, figures from the Commerce Department showed. Rising incomes and stock prices are giving consumers the wherewithal to boost the purchases that account for 70% of the world’s largest economy. A drop in claims for jobless benefits indicates employers are slowing the pace of firings, a step toward cutting unemployment from close to a 26-year high. (Bloomberg)

20101224 1120 Malaysia Corporate Related News.

Sime Darby files civil suit
Sime Darby has filed a civil suit against its former president and group chief executive Datuk Seri Ahmad Zubir Murshid and four senior executives claiming RM337.63m in damages for alleged breach of duties in three projects under the troubled energy and utilities division.(Financial Daily)

PLUS directors extend deadline for new bids
The independent directors of PLUS extended the period for new offers to buy the group's business to 10 Jan, 2011 from the earlier announced deadline of 5pm yesterday. (StarBiz)

US firm looking at Adventa acquisition
Rubber glove manufacturer Adventa hit limit up yesterday on speculation that it could be a potential acquisition target by a US healthcare firm for the upstream integration of its healthcare business. It was also rumored earlier that the US firm had previously been in preliminary talks with Top Glove but had decided Top Glove was too big a manufacturer, which would be too expensive. (Financial Daily)

Proton planning two-seater sports car that would look like Lotus
 Proton Holdings plans to produce a two-seater sports car in two years. Proton corporate planning general manager Badrulhisham Mohd Ghazali said the vehicle would not be a hatch-back type like Satria Neo but would look like the legendary Lotus. (StarBiz) Internal BToto discussions consider strategic investor Berjaya Sports Toto (BToto) has had preliminary discussions internally on a possible corporate exercise which may result in the entry of a strategic investor, it told Bursa Malaysia yesterday. It said that while there had been initial contact with several potential strategic investors, no negotiation had been conducted with any strategic investor at this juncture, as internal discussions and planning were still ongoing. (StarBiz)

Nusajaya to develop RM670m project
Nusajaya Consolidated SB, a 50:50 joint venture between UEM Land and United Malayan Land (UMLand), will develop 6.7 acres in Nusajaya, Johor, into a mixed development project with a gross development value of RM670m. UMLand said in a statement to Bursa Malaysia that NCSB yesterday signed an agreement with Bandar Nusajaya Development SB to acquire the freehold land in Nusajaya for RM49.6m in cash. The proposed development, to comprise commercial, residential and retail components, will be developed over four years and is expected to yield a gross profit of RM160m. It is located in Puteri Harbour, an integrated waterfront and marina development spanning 278.42ha within Nusajaya and Iskandar Malaysia. (StarBiz)

Pintaras unit wins RM26m job
Pintaras Jaya’s wholly owned subsidiary, Pintaras Geothecnics SB, had been awarded a contract worth RM26.1m by Exceljade SB. The contract will see Pintaras Undertake earthwork, piling including pilecap and stumps for development of service apartments at Jalan Tun Razak. Jalan Raja Muda Abdul Aziz in the city. The project will start contributing positively to errnings. (Bernama)

Government funded MRT
The Government will set up a special vehicle company (SPV) to channel total funding for the proposed greater KL mass rapid transit (MRT) project. Land Public Transport Commission (SPAD) chief executive officer Mohd Nur Ismal Kamal said the multi-billion ringgit project will not be undertaken on a turnkey basis and contractors need not seek financing. All MRT job packages will be tendered out to both local and international contractors. (Bernama) 

20101224 1116 Global Market Related News.

Rising Food Prices Point To China Policy Challenges -UN Envoy (Source : CME)
Sharp increases in food prices highlight shrinking arable land and land degradation in China, putting at risk the country's ability to sustain increases in agricultural production, a senior United Nations official said. The sharp agricultural product price rally this year has fed into the highest inflation levels in 28 months, even as China said earlier this month it secured a seventh consecutive record grain harvest. Despite the rising output numbers, Olivier De Schutter, the United Nations Special Rapporteur on the right to food, indicated that food inflation pointed to deeper policy problems. "The recent food price hikes in China are a harbinger of what may be lying ahead," he wrote in a release published along with a six-page report on the situation in China. "The widening gap between rural and urban is an important challenge to the right to food of the Chinese population," he said.
Since 1997 China has lost 8.2 million hectares of arable land to urbanization, industrialization, forest replanting programs and natural disasters, he said. "Today, 37% of China's total territory suffers from land degradation." Shrinking arable land poses a major threat to China's policy aim of maintaining self-sufficiency in grains and will fuel competition over land and land evictions, de Schutter said. He urged Beijing to accelerate the pace of sustainable farming and move toward more low-carbon agriculture, as well as address a widening urban-rural income gap and phase out a household registration system that deprives rural migrant workers from access to basic services in cities.

US home sales bounce back, 3rd-quarter GDP raised
WASHINGTON, Dec 22 (Reuters) - Sales of previously owned U.S. homes rose in November, offering the latest sign the economy was ending the year on a more solid footing after a sluggish third-quarter.
The Commerce Department on Wednesday said the economy grew at an annual rate of 2.6 percent in the third quarter, a touch above its earlier 2.5 percent estimate, but more of that output ended up in warehouses.

China top banker sees rate rises
SHANGHAI/BEIJING, Dec 23 (Reuters) - China Construction Bank Corp (CCB)  Chairman Guo Shuqing said he expects the government to raise interest rates and lift bank required reserve ratios (RRR) further next year.
Guo, former head of the State Administration of Foreign Exchange (SAFE) and widely seen as a candidate for the next central bank governor, told Xinhua News Agency that the moves were aimed at reining in money supply and bank credit.

PRECIOUS-Gold holds above $1,380/oz as debt fears support
LONDON, Dec 23 (Reuters) - Gold held steady above $1,380 an ounce in Europe on Thursday as trade thinned ahead of the Christmas holidays, but was set for its first weekly gain in three as worries over euro zone sovereign debt lent support.
Spot gold  was bid at $1,383.65 an ounce at 1033 GMT, against $1,384.55 late in New York on Wednesday. U.S. gold futures for February delivery  fell $3.10 to $1,384.30.

FOREX-China support steadies euro, outlook shaky into 2011
LONDON, Dec 23 (Reuters) - The euro steadied against the dollar and the Swiss franc on Thursday, helped by supportive comments from China, but analysts said the outlook for the single currency was shaky, with fresh losses expected into 2011.
Liquidity was at a premium in currency markets ahead of year-end, with traders saying flows were having a bigger impact on price than fundamentals.

U.S. wheat at 4-1/2 month top, soy, corn firm
SINGAPORE, Dec 23 (Reuters) - U.S. wheat rose 0.4 percent  to a 4-1/2 month high as fears of tight global supplies next  year and talk of Russia's extension on grain exports  underpinned the market."The grain markets are in follow-through price mode as Australia is still supportive for wheat, although the market  has factored it in. And there are ongoing rumours that Russia  may extend the export ban," said Ker Chung Yang, an analyst at  Phillip Futures in Singapore.

World stocks scale two-year highs; oil firm
PARIS, Dec 23 (Reuters) - World stocks hit their highest level since September 2008 on Thursday while oil held near a two-year peak as favourable U.S. data reinforced expectations economic growth will retain momentum into next year."The corporate picture still looks very bright, the trend towards higher profits is going to continue and public policies should remain shareholder-friendly," said Henk Potts, equity strategist at Barclays Wealth. 

20101224 1115 Soy Oil & Palm Oil Related News.

US Soy oil futures market closed today due to Christmas Eve Day.

CBOT soy products ended higher as soybeans rallied on strong demand. The U.S. Census crush report was in line with expectation, and showed crushing of soybeans into soymeal and oil was down from the prior month, which analysts said was due to weaker processing margins. Jan soymeal ended up $7.30, or 2.1%, to $360 per short ton. Jan soyoil closed up 0.62 cent, or 1.1%, to 56.59 cents per pound. The market will be closed Friday for the Christmas holiday.  (Source: CME)

Palm off 1-week high on China restocking, weather
KUALA LUMPUR, Dec 23 (Reuters) - Malaysian crude palm oil  futures ended off one-week highs on Thursday, as China  unveiled plans to restock agriculture commodities at a time  when erratic weather globally may curb supplies."The weather story now includes a China story, which will  see gains across most the of the agricultural complex," said a  trader with a foreign commodities brokerage.

Uruguayan farmers seen planting record soy area
MONTEVIDEO, Dec 22 (Reuters) - Farmers in Uruguay are expected to dedicate a record high area to soybeans in the 2010/11 season, despite concerns that dry weather linked to La Nina could hit crops, a government poll showed on Wednesday.
Uruguayan soy output is tiny when compared with that of its South American neighbors Brazil, Argentina and Paraguay -- the world's second, third, and fourth biggest soy exporters, respectively.