Monday, December 27, 2010

20101227 1849 FCPO EOD Daily Chart Study.

FCPO closed : 3756, changed : +91 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : recovering, buyer holding on.
Support : 3750, 3720, 3700 level.
Resistance : 3770, 3800, 3870 level.
Comment :
FCPO rallied recorded significant gain with better volume changed hand despite weak export data released as tight supply concern due to weather factor plus soy oil and crude oil continue stand firmer.
Daily chart formed a wide range up bar candle closed right at upper Bollinger band resistant level with the band width about to turn outward suggesting a further upside biased market development testing higher resistant 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.

20101227 1819 FKLI EOD Daily Chart Study.

FKLI closed : 1513.5, changed : -3 points,  volume : lower.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : turned downward, buyer reducing exposure.
Support : 1500, 1485, 1470 level.
Resistance : 1515, 1530, 1550 level.
Comment :
Slightly improved volume FKLI closed recorded loss while regional market ended mixed after surprise China central bank official raised interest rate by 25 basis point on 26 Dec 2010.
Daily chart formed 4th doji bar candle with small body after market traded range bound within a 4 points range market with the reading 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.

20101227 0959 Global Economics Related News.

China: Increases rates to counter highest inflation in two years
China raised interest rates for the second time since mid-October to counter the fastest inflation in more than two years, and more moves may follow. The benchmark one-year lending rate will rise by 25 basis points to 5.81% and the one-year deposit rate will climb by the same amount to 2.75%, the People’s Bank of China said in a one-sentence statement on its website. (Bloomberg)

France: AAA credit rating affirmed by S&P on budget confidence
France’s standing as one of the world’s safest borrowers was affirmed by Standard & Poor’s, reflecting that the Euro-area’s second largest economy will rein in its budget deficit. At the end of a year in which rating companies downgraded the debt of Euro nations from Spain to Ireland, S&P said that France deserves a AAA sovereign credit rating because of the “wealth and depth” of its economy. (Bloomberg)

US: Consumer spending, investment increase
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. The agency also reported a 2.6% gain in bookings for capital goods like computers and electronics. (Bloomberg)

US: Home prices probably fell, confidence up
Home prices probably dropped in October, a sign housing will remain a weak link as the US recovery accelerates into the new year, economists said before reports this week. Property values in 20 cities were down 0.2% from October 2009, the first year-over-year decline since January, according to the median forecast of 14 economists surveyed ahead of a report from S&P/Case-Shiller. Other data the same day may show consumer confidence rose to a seven-month high in December. (Bloomberg)

20101227 0958 Malaysia Corporate Related News.

No listing plan for Petronas Carigali
National oil company Petroliam Nasional Bhd (Petronas) has shot down market talk that it will list wholly-owned exploration and production unit Petronas Carigali SB. “We have no plans to list Petronas Carigali or any other unit,’’ a Petronas spokesperson told StarBizWeek when contacted last Friday. Several business dailies last Saturday quoted MIDF Amanah Investment Bank Bhd’s research head as saying that Petronas Carigali could list on Bursa Malaysia next year in a move to draw foreign funds. The research head said that analysts had been told by Bursa officials of a possible initial public offering (IPO) for Petronas Carigali. However, Bursa clarified in a media statement yesterday evening that its listing department had not received any new listing application by Petronas. (StarBiz)

AirAsia boss says no plan to buy Virgin
 AirAsia Bhd group chief executive officer Datuk Seri Tony Fernandez denies there are any plan to buy a stake in British airline Virgin Atlantic as reported by the Sunday Times newspaper. “There are no discussions taking place,’’ he told StarBiz from London yesterday. The Sunday Times said in an unsourced report yesterday that Fernandez, who runs Asia’s largest Budget carrier by fleet size, had renewed his interest in the UK airline after previously considering and deciding against a bid. Any deal could be worth up to GBP1bn, the newspaper said. (StarBiz)

Siemens eyes rail jobs
Siemens, a global expert in rail transport technology, is preparing to bid for several potentially lucrative railrelated tenders in Malaysia. Several such jobs are expected to be offered in the near future, including the supply of 40 locomotives for rail company Keretapi Tanah Melayu Bhd (KTMB), the Ampang light rail transit (LRT) extension and possibly the Kuala Lumpur-Singapore high speed train project. Siemens also plans to bid for the Ampang LRT extension project in which tender is set to be out on 11 Jan 11 next year. "What the industry expects, especially for the Ampang line, is that the specification will be open enough to establish competition. (We understand) for the Ampang line, the specification will be more extensive, so it means that companies like Siemens and other big supply companies would be interested to go for it," said Muench (Mobility Division Head Siemens Malaysia). He said the job for the 17km extension, which would include signalling systems, electrification and communications, among other things, could be worth in the region of between RM200m and RM300m. (BT)

RM44.3m charges stem from write-downs in collateral values, says K&N Kenanga
K&N Kenanga Holdings Bhd said additional impairment of RM44.3m, which will be reflected in its fourth-quarter results, stems from write-downs in collateral values relating to a loan and an investment in an associate company. In a statement on Friday, K&N Kenanga said although the impairment would reflect negatively on the group's profit and loss figures, its operating profit for the nine-month period ended Sept 30, 2010, excluding the impairment figure, remained positive at RM40.4m against RM26.9m in the same period in 2009. "The preimpairment operating profit for the group represents a growth of 50.2%," it said. (StarBiz)

Epic has no plans to go private
Eastern Industrial Pacific Corp Bhd (Epic) has dismissed suggestions that the company will be taken private, following the sale of a 21.26% stake by Ahmad Zaki Resources Bhd (AZRB) to Lembaga Tabung Amanah Warisan Negeri Terengganu. Its chief executive officer Ramli Shahul Hameed said Epic wants to remain as a listed company on Bursa Malaysia. "To Epic's knowledge, there is no such plan (to take the company private) ... We want to maintain the listing status," he told Business Times in an interview recently. Prior to the acquisition of AZRB's stake, Epic had also announced a 10% share buyback plan early in the year. Ramli explained that the share buyback was planned earlier so that the state government would be able to control the company, but it does not really matter now that Lembaga Tabung Warisan Negeri Terengganu has acquired AZRB's stake. "Yes, we have started buying the stakes through share buybacks but we have yet to complete the exercise. We have secured the approval to continue with the share buyback exercise. (BT)

Kimlun keen to bid for tunnel lining jobs in MRT project
KIimlun Corp Bhd said it is keen to bid for the tunnel lining segments job packages in the RM14bn Sungai Buloh- Kuala Lumpur-Kajang mass rapid transit (MRT) line project. "Yes, we would like to bid for (relevant) parts of the project. We have experience in making MRT tunnel segments," chief executive officer Sim Tian Liang told Business Times in an interview in Kuala Lumpur. Kimlun's unit SPC Industries Sdn Bhd is one of the very few active tunnel lining segments suppliers in the country, the others being MTD ACPI Engineering Bhd and Hong Leong Asia Pte Ltd. It has a construction and pre-cast products order book of RM800m as at September this year. As one of the largest manufacturer of pre-cast concrete products in Johor, Kimlun has been supplying tunnel lining segments for the Singapore MRT extension project. "Although we're based in Johor, it is not a problem for us to supply to the Greater KL MRT project. When the government starts to roll out the job packages in mid-2011, we can always lease land in Klang Valley and set up a casting yard there," Sim said. (BT)   

20101227 0842 Crude Palm Oil Export Data.

SGS CPO export down 23.7% to 1,040,145 tonnes for the period of 1~25 Dec 2010.
ITS CPO export down 23.9% to 1,003,459 tonnes for the period of 1~25 Dec 2010.

20101227 0841 Global Market Related News.

Oil eases from two-year high after Chinese interest rate hike
SINGAPORE, Dec 27 (Reuters) - Oil eased from two-year  highs as uncertainty over Chinese fuel demand growth  following a Christmas Day interest rate hike overshadowed a  cold snap in the U.S. Northeast.
"China's interest rate hike is having some impact on the  oil markets... because of concerns over how the tightening of  monetary policy will impact demand growth," said Serene Lim,  an oil analyst at ANZ.

World economy can withstand $100 oil price-Kuwait
CAIRO, Dec 25 (Reuters) - The global economy can withstand an oil price of $100 a barrel, Kuwait's oil minister said on Saturday, as other exporters indicated OPEC may decide against increasing output through 2011 as the market was well supplied.
Analysts have said oil producing countries are likely to raise output after crude rallied more than 30 percent from a low in May because they fear prices could damage economic growth in fuel importing countries.

U.S. wheat falls from 4-1/2 month top on China rate hike
SINGAPORE, Dec 27 (Reuters) - U.S. wheat futures slid 0.7  percent, falling from  a 4-1/2 month top, while  soybeans and corn lost ground after China raised interest  rates on Christmas Day, the latest in a series of measures to  cool inflation.
"It will be bearish for agricultural prices... but we  believe the impact will be short-lived and not hit the bullish  trend," said Wang Ping, an analyst with Dongwu Futures in  China.

Gold recovers some loss, bargain hunting supports
SINGAPORE, Dec 27 (Reuters) - Spot gold regained some  ground and platinum group metals returned to positive  territory, as bargain hunting lent support, after prices lost  about one percent in early trade in response to China's  interest rate increase on Saturday.
"Earlier speculators were selling on China's rate hike  news, but a lot of buying has since emerged as speculators are  buying on dip," said a Tokyo-based dealer.

China rate hike weighs on Aussie, commodities
HONG KONG, Dec 27 (Reuters) - The Australian dollar and  commodity prices slid following an interest rate  hike by China's central bank over the Christmas weekend, but  volumes were light due to holidays in the final week of 2010.
"Expect Asian markets to be tempered into the last trading  week of the year. The cautious tone and lower turnover this  month compel the case for further consolidation," said Howie.  

OIL: Oil falls below $91 after China interest rate hike
SINGAPORE, Dec 27 (Reuters) - Oil prices fell below $91 on  Monday after China raised interest rates for the second time  in just over two months to cool inflation which is running at  its highest in over two years.
The global economy can withstand an oil price of $100 a barrel, Kuwait's oil minister said, as other exporters indicated OPEC may decide against increasing output through 2011 as the market was well supplied.

COMMODITY MARKETS: Oil ends above $91 pre-Christmas; sugar, soy rally
NEW YORK, Dec 23 (Reuters) - Oil ended at a two-year high above $91 per barrel while soybean and sugar prices surged on Thursday as investors tightened their focus on fundamentals in commodities in the last session before Christmas.
"You can almost feel the will for good economic recovery and growth worldwide as we head into 2011," RBC Capital Markets said in a research note out of London.

GLOBAL MARETS: Stocks, oil rise in festive cheer
PARIS, Dec 24 (Reuters) - World stocks held near the previous day's two-year high on Friday while oil hit fresh two-year peaks after strong U.S. data this week encouraged investors to maintain their risk positions into 2011.
"We've had a good run, helped by quantitative easing and better economic data," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin. "We've broken out of ranges, and it can go higher in 2011."

The surprise timing of the People's Bank of China (PBOC) increase in benchmark lending and deposit interest rates is likely to weigh on commodity markets when trading starts on Monday.On Christmas Day, the PBOC raised rates by 25 basis points, the second rate rise in just over two months, part of a series of measures designed to combat inflation which hit a 28-month high of 5.1 percent in November. 
The opportunity to cash in on prices at or near their highest in years before the year end could mean the correction this time may be greater than the losses following the last interest rate hike in October.

US data reinforce solid fourth-quarter growth hopes
WASHINGTON, Dec 23 (Reuters) - Demand for a range of long-lasting U.S. manufactured goods surged in November and consumer spending rose for a fifth straight month, cementing views of a solid economic growth pace in the fourth quarter.
The brightening outlook was also bolstered by other reports on Thursday showing an improving labor market and consumer sentiment, though housing continues to struggle.

China to gear up fight against inflation
BEIJING, Dec 24 (Reuters) - China's central bank kept up its rhetoric against inflation and excess liquidity on Friday by saying it will deploy a range of policy tools to head off inflationary pressures and asset bubbles.
Hu Xiaolian, a deputy governor at the People's Bank of China, said monetary policy in the world's second-largest economy needs to be prudent to tame inflation, which hit a 28-month high of 5.1 percent in November.

S.Korea faces inflation, asset bubble risks-min
SEOUL, Dec 24 (Reuters) - South Korea 's finance minister said the country needs to brace for inflationary pressures sparked by rising global liquidity and commodities prices in 2011, and an interest rate rise to address the risk of asset price bubbles.
Yoon Jeung-hyun told an economy-related ministerial meeting on Friday that higher international oil, metals and grain prices could pressure supply-side prices in line with growing liquidity and expansion in emerging economies.

PRECIOUS-Gold rises towards $1,385/oz as dollar retreats
LONDON, Dec 24 (Reuters) - Gold prices edged higher in Europe on Friday, supported by the euro's rebound from a three-week low versus the dollar, and as a further ratings downgrade stoked concerns over euro zone debt.
Fitch Ratings downgraded Portugal's long-term and local currency ratings by one notch to A-plus late on Thursday, with a negative outlook.

FOREX-Euro steady in thin trade, sentiment fragile
LONDON, Dec 24 (Reuters) - The euro was steady on Friday after rebounding from a record low against the Swiss franc and a three-week low versus the dollar, but any gains were curbed as investors remained wary about euro zone debt problems.
Trade was extremely thin, with few orders going through so close to the Christmas holidays, resulting in limited movement in any major currency pair.