Monday, February 14, 2011

20110214 1809 FCPO EOD Daily Chart Study.

FCPO closed : 3933, changed : -22 points, volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : turned lower, buyer reducing positions.
Support : 3920, 3900, 3850 level.
Resistance : 3950, 4000, 4070 level.
Comment :
Low volume participation FCPO closed lower recorded loss ahead of tomorrow holiday, changing month and export data release after last Friday soy oil closed lower but currently rebounding higher.
Daily chart formed a small up doji bar candle after market opened gap down and recovered upward tested higher resistant but closed off the high of the day with the reading suggesting a correction 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.

20110214 1743 FKLI EOD Daily Chart Study.

FKLI closed : 1506.5 changed : +19 points,  volume : lower.
Bollinger band reading : pullback correction range bound downside biased.
MACD Histrogram : turned upward, seller taking profit.
Support : 1500, 1485, 1470 level.
Resistance : 1515, 1530, 1540 level.
Comment :
Technical rebound FKLI closed recorded big gains with lesser volume participation doing nearly 1.5 point premium compare to cash market as sellers decided to lock in profit after last week severe fall pushed price higher while all regional market closed rebounding higher after Egypt president steps down news.
Daily chart formed an up doji bar candle after market opened gap up and tested higher resistant level but closed off the high of the day doing pullback correction. Reading wise, market is likely to trade correction range bound within a downside biased market development testing support and resistant.
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.

20110214 1007 Global Economic Related News.

Mubarak resigns, hands over control to military
Egypt's Hosni Mubarak resigned as president and handed control to the military on Friday, bowing down after a historic 18-day wave of pro-democracy demonstrations by hundreds of thousands. A massive crowd in Cairo's central Tahrir Square exploded into joy, waving Egyptian flags, and car horns and celebratory shots in the air were heard around the city of 18 million in joy after Vice President Omar Suleiman made the announcement on national TV just after nightfall. "In these grave circumstances that the country is passing through, President Hosni Mubarak has decided to leave his position as president of the republic," a grim-looking Suleiman said. "He has mandated the Armed Forces Supreme Council to run the state. God is our protector and succor." (The Star)

EU: Greek slams EU auditor over asset sale call
Greece's finance minister rejected comments by a senior European Union (EU) official backing calls for a huge state asset sale to boost the country's debt recovery effort. Finance Minister George Papaconstantinou slammed comments by EU Commission official Servaas Deroose carried in the newspapers as "inaccurate". Deroose had repeated a demand for a state asset sale worth EUR50bn by 2015 and sparking a strong backlash from the Greek government. (BT)

US: Obama aims to cut deficit by USD1.1trn over 10 years
US President Barack Obama's proposed budget for fiscal 2012 will seek to cut the record federal deficit by USD1.1trn over the next 10 years, White House budget director Jack Lew said. Lew, speaking on CNN, said the president was also on track to halve the budget deficit by the end of his first term in office, which goes through 2012. (BT)

US: Sentiment climbs to eight-month high
Consumer confidence rose in February to the highest level in eight months as decreasing unemployment lifted Americans’ spirits. The Thomson Reuters/University of Michigan preliminary index of consumer sentiment for the month climbed to 75.1 from 74.2 in January, in line with the median forecast of economists surveyed by Bloomberg News. (Bloomberg)

US: Treasury yields reach highs on economic growth
Treasuries fell, with 10-year notes touching the highest yield since April, as the US sold USD72bn of debt amid data showing the economy is gaining steam. Yields on 30-year bonds were the highest in 10 months as the amount of bids at the 10 Feb bond sale was less than the average for the past 10 auctions and the 8 Feb note sale drew the lowest demand in the category of bidders that includes foreign central banks since May 2007. (Bloomberg)

20110214 1006 Malaysia Corporate Related News.

KrisAssets goes shopping
KrisAssets Holdings, the owner and operator of Mid Valley Megamall, is believed to be buying four-year old The Gardens Mall in a deal estimated to be close to RM1bn. This move will provide KrisAssets, which essentially operates like a real estate investment trust, a new avenue for recurring income. At the same time, Mid Valley Megamall developer IGB Corp will be able to unlock the value of its assets. "IGB is a developer that carries development risk. KrisAssets is a pure play asset yielding entity," an industry observer familiar with the company said. Both companies had requested for the suspension of their shares from 2.30pm last Friday and on Monday 14 Feb, pending the announcement of a proposed material transaction. (BT)

TM in cable venture with Indonesian telcos
Telekom Malaysia (TM) has entered into a construction and maintenance agreement with PT XL Axiata Tbk and PT Mora Telematika of Indonesia to jointly build a high bandwidth optical fibre submarine cable system. The cable will link Malaysia and Indonesia, and is named the "Batam-Dumai-Melaka" cable system (BDM). TM Global vice-president Rozaimy Abdul Rahman said for TM the investment on their end is RM12m for the cable from Dumai to Malacca while the cable cost from Batam to Malacca is borne by their Indonesian partners. "The total cost of the project is less than RM24m and we started building the cables since January last year. We expect the cables to be completed by the fourth quarter of this year," said Rozaimy at the signing ceremony in Kuala Lumpur last Friday. (BT)

AirAsia delays deliveries of 10 more aircraft
AirAsia has delayed another 10 aircraft delivery, this time it says to allow it the option of taking on newgeneration A320 aircraft once they are available. Instead of 24, it will now take delivery of 14 aircraft in 2012. The deferred 10 will only be taken in 2015, increasing the number of deliveries in that year to 19 from 9 originally. In 2010, AirAsia co-founder and chief executive officer Datuk Seri Tony Fernandes had said it would look to slow down deliveries, in a move to keep its level of borrowings manageable. He said receiving between 10 and 12 aircraft a year would be ideal. The deferral will help maintain the company's net gearing position to below two. AirAsia said the 14 aircraft it will receive in 2012 will be adequate to support the growth of its joint ventures in the Philippines as well as Vietnam while continuing to support existing affiliate airlines. (BT)

NGSB withdraws claims against TM
Network Guidance SB (NGSB) has withdrawn claims for damages amounting to RM400m and loss of profit of RM500m against Telekom Malaysia and TM Net SB over an alleged breach of contract. TM told Bursa Malaysia last Friday that NGSB withdrew its claims for aggravated damages of RM200m and exemplary damages of RM200mil and also abandoned the claim for loss of profit of RM500m. In the re-amended claim, NGSB sought a declaration that both parties had entered into an agreement for a joint-venture project but TM breached the agreement. As a result of the breach of agreement, NGSB suffered loss and damages. NGSB was now claiming special damages totaling RM23.95m. (StarBiz)

'Syed Mokhtar-led group eyes Pos stake'
A group led by Malaysian billionaire Syed Mokhtar Al-Bukhary is the favorite to buy a 32.2% stake in Pos Malaysia Bhd, the Edge reported, without saying where it got the information. The other groups bidding for the stake owned by state-run investment company Khazanah Nasional include Sapura Group, the Malaysian weekly newspaper said. The deadline for bids is 14 Feb, it said (BT)

CCM, AKN settle case amicably
Chemical Company of Malaysia (CCM) and AKN Technology have agreed to settle their litigation case amicably and a notice of discontinuance has been filed in the Kuala Lumpur High Court. According to a filing with Bursa Malaysia, the notice was filed in respect of the discontinuance of the litigation case commenced by AKN against CCM and the discontinuance of the CCM's counter-claim against AKN. CCM said the case would not have any material effect on the company's earnings and net assets for the financial year ending 31 Dec 2011, or any effect to the share capital or substantial shareholders' shareholding. (StarBiz)

Proton mulls inviting third party to use plants
National carmaker Proton Holdings is thinking about inviting a third party to use its manufacturing plants which are 50% underutilized. “Currently, we don’t have any parties that are talking to us to utilise our plants. “But in our long-term planning, for better utilization of plant capacity, of course we would like to do a third party assembly,” chairman Datuk Mohd Nadzmi Salleh said last Friday. (BT)

India: Rate hikes, graft scandals may hit India's growth
India is set for scorching growth this year but concern is mounting about its longer term outlook, with the central bank seen hiking interest rates further and corruption scandals worrying investors. The stock market has already dropped some 17% this year, hit by fears that economic growth will cool due to higher interest rates and souring foreign investor sentiment amid a spate of high-profile corruption scandals. In January, foreign institutional investors turned net sellers for the first time in eight months, dumping some USD1.4bn in Indian stocks, according to industry data. (BT)

20110214 0927 Global Market Related News.

Crude edges up after hitting a 10-wk low on Friday
SINGAPORE, Feb 14 (Reuters) - U.S. crude futures traded higher after falling to a 10-week low in the previous session as tensions in the Middle East cooled following the resignation of Egyptian President Hosni Mubarak.
On the New York Mercantile Exchange, March crude    rose to $85.67, up 9 cents by 0009 GMT, after settling more  than $1 lower at $85.58 in the previous session.

Malaysia's Petronas finds new energy fields offshore Sarawak
KUALA LUMPUR, Feb 14 (Reuters) - Malaysia's state oil firm Petronas  said on Monday it has discovered new oil and gas fields through the drilling of NC3 and Spaoh-1 wells in Blocks SK316 and SK306 in offshore Sarawak state. 
It said drilling of the NC3 wildcat well and a subsequent appraisal well brought significant discovery in Block SK316 with early estimation of 2.6 trillion standard cubic feet of net gas in place. 

U.S. wheat jumps 1.7 pct, corn makes new contract highs
SINGAPORE, Feb 14(Reuters) - U.S. wheat futures rose 1.7 percent, starting the week on bullish note as dry weather in crop areas of China and the United States raised concerns over supplies amid strong buying, led by Egypt, the world's top importer.
"Weather issues are continuing to persist in China, not much change to that situation is expected for a while and similar is the case for the U.S. winter wheat belt," said Luke Matthews, a commodity strategist at the Commonwealth Bank of Australia.   

OIL:Crude edges up after hitting a 10-wk low on Friday
SINGAPORE, Feb 14 (Reuters) - U.S. crude futures traded higher on Monday after falling to a 10-week low in the previous session as tensions in the Middle East cooled following the resignation of Egyptian President Hosni Mubarak.
Mubarak's departure eased worries about potential oil supply disruptions along the Suez Canal and a strategic pipeline.
The anti-government demonstrations in Egypt, which is not a major oil producer, began in late January, raising fears that the unrest could spread to other producer nations in the region.

COMMODITIES:First broad fall in 5 weeks; oil at 10-week low
NEW YORK, Feb 11 (Reuters) - Commodities fell broadly on Friday for the first time in five weeks after Egyptian President Hosni Mubarak's resignation pushed U.S. oil prices down, although metals and grains ended mixed on varying fundamentals.
"Lower prices may be temporary here as traders will again look broadly and see if protests in Egypt, which apparently are now about to end, may spark other similar movements across the Middle East," said Mark Waggoner at Excel Futures in Bend, Oregon.

GLOBAL Asian stocks rise as Egypt worries fade
SYDNEY, Feb 14 (Reuters) - Asian stocks rose on Monday as investors greeted news of Egyptian President Hosni Mubarak's resignation with relief, while U.S. crude steadied near $85.50 after falling to 10-week lows as geopolitical tensions eased for now.
"What with good corporate earnings, the resignation of Mubarak and other helpful factors, the investment environment is good," said Yoshihiro Ito, chief strategist at Okasan Online Securities.

Obama budget cuts $3.6 bln in oil, gas subsidies
WASHINGTON, Feb 11 (Reuters) - The White House will ask Congress to repeal $3.6 billion in oil, natural gas and coal industry subsidies as part of its proposed government budget for the 2012 spending year that will be released on Monday.
Phasing out the fossil fuel subsidies, which would total $46.2 billion over a decade, will help the U.S. "transition to a 21st century energy economy," Energy Secretary Steven Chu said in a posting on his blog at the department's website on Friday. The White House sought similar deep cuts in fossil fuel tax breaks and spending last year, but Congress voted against it.

US icebreakers can't handle Alaska oil spills-official
WASHINGTON, Feb 11 (Reuters) - The U.S. Coast Guard does not have enough working icebreakers to respond to a major oil spill in Alaskan waters, the top official who oversaw the containment of the BP oil spill warned Congress on Friday.
"The current condition of the Coast Guard icebreaker fleet should be of great concern to the senior leaders of this nation," General Thad Allen testified at a House Transportation subcommittee hearing on last summer's oil spill in the Gulf of Mexico.

US govt finds major safety issues on Alaska oil line
NEW YORK, Feb 11 (Reuters) - The U.S. government's Pipeline and Hazardous Materials Safety Administration has begun a thorough investigation of the Trans Alaska Pipeline System, following a Jan. 8 leak that required the line to shut down temporarily.
The division of the U.S. Department of Transport found that the line appears to have "multiple conditions" that "pose a pipeline integrity risk to public safety, property or the environment," according to a Feb. 1 letter sent by regulators to the pipeline operator and viewed by Reuters.

S.Korea skips rate rise, seen tightening in March
SEOUL, Feb 11 (Reuters) - South Korea's central bank surprised markets on Friday by keeping interest rates on hold at 2.75 percent, indicating it wanted more time to assess the impact of a rate rise in January before moving again to tackle inflation.
Most analysts had expected a rare back-to-back rate increase after inflation rose more than expected in January to stand above the central bank's target. A Reuters poll shows they now expect the authority to raise rates in March.

India's lack of industrial capacity addition worrisome
NEW DELHI, Feb 11 (Reuters) - India is concerned about the lack of capacity addition in its industrial sector, the trade and industries minister said on Friday, after data showed factory output in December grew at the weakest pace in 20 months.
But, Anand Sharma was optimistic factory output growth  would break out of the low single-digit zone it has occupied for two months.

Beijing moves to tighten rare earth production
BEIJING, Feb 11 (Reuters) - China has created a "state planning" zone covering the country's biggest rare earth mines in a move to cut production of the vital rare mineral elements used for numerous high-tech goods, the official Xinhua news agency reported on Thursday night.
Exploration and mining of rare earth resources in the zone, an area of 2,500 square kilometres of Jiangxi province in southern China that contains 760,000 tonnes of rare earth mineral deposits, will be subject to stricter state scrutiny and regulatory checks, Xinhua said, citing the Ministry of Land and
Resources in Beijing.

PRECIOUS-Gold pares gains, physical buyers scarce
SINGAPORE, Feb 11 (Reuters) - Gold erased some of early gains in directionless trade on Friday, under pressure from a drop in ETF holdings to their lowest since late January, a firm U.S. dollar and a lacklustre physical market.
Premiums for gold bars were steady in Hong Kong and Singapore, with no signs of buying interest from China after the Lunar New Year celebration. Unrest in Egypt could underpin sentiment, but there was hardly any physical buying in Asia related to the deadly turmoil.  

FOREX-Euro falls as debt nerves return, dollar gains
LONDON, Feb 11 (Reuters) - The euro fell on Friday following a new bout of market jitters over the euro zone's sovereign debt problems, while the dollar struck a one-month high against the yen after data underscored recovery in the U.S. jobs market.
U.S.Treasury yields have spiked this month, shoring up the dollar while improving data has supported the view that economic recovery in the United States is on more durable ground.

U.S. wheat up after sharp decline; soy, corn steady
SINGAPORE, Feb 11 (Reuters) - Chicago wheat futures rose around half a percent, while soybeans were little changed after sliding from 2-1/2 year highs in the previous session on disappointing U.S. weekly export sales.
"For corn, there is more strength coming in as there was impressive exports report from USDA yesterday and buyers are worried about lower stocks," said Ker Chung Yang, commodities analyst at Singapore-based Phillip Futures.

US govt hands may be tied on ethanol-USDA official
PALM BEACH, Florida, Feb 10 (Reuters) - The U.S. government has few options to slow down the ethanol boom that has played a big role in drawing down corn supplies to their lowest level in 15 years, a top U.S. Agriculture Department official said on Thursday.
"The fact is the industry has pretty much been built," USDA Chief Economist Joe Glauber told reporters on the sidelines of a Commodity Markets Council conference. "This isn't a question of just saying 'cut it off.' It's much more complicated than that."

20110214 0926 Soy Oil & Palm Oil Related News.

Soy product futures ended lower, succumbing to profit taking pressure. Traders reduced risk exposure in the markets in unison with soybeans, with soyoil garnering further weakness from declines in crude oil futures, analysts said. Soymeal declines in step with soybeans, with slowing domestic demand applying modest pressure, traders added. CBOT March soyoil ended 0.55 cents or 0.9% lower at 58.49 cents per pound, and March soymeal traded $4.40 or 1.2% lower at $378.10 a short ton. (Source: CME)

Palm oil perks up as tight supply concerns grow
KUALA LUMPUR, Feb 11 (Reuters) - Malaysian palm oil futures rose 0.7 percent on concerns that earlier floods and rains could further weaken yields at a time of strong demand despite prices logging their  weakest weekly gain in two weeks.
"For Malaysia, the stock draw will be more pronounced in February, as China will have to replenish after the Lunar New Year holiday and its a much shorter month for harvesting from oil palms," said a trader with a foreign brokerage.

Asia oils-China restocks with palm oil after Lunar Year holidays
KUALA LUMPUR, Feb 11 (Reuters) - China, the world's No.2 vegetable oil buyer, is seeking nearby palm oil shipments to replenish stocks after the Lunar New Year holiday although the pace of orders will be slower due to the recent price rally.
China's domestic refined palm olein used in cooking oil is selling at around 10,300 yuan ($1,563)a tonne with import prices for the spot month standing at a much higher 10,800 yuan, potentially limiting the size of purchases, traders said.

Indonesia palm oil giant SMART to invest $500 mln for two CPO plants
Feb 11 (Reuters) - Palm oil giant PT Sinar Mas Agro Resources & Technology, or SMART  plans to invest $500 million in two crude palm oil plants (CPO), Indonesia's industry minister said on Friday.
The plants will process CPO for other derived products, MS Hidayat said. "The location is still to be discussed, but I expect them to build the factories outside Java," he added.

India's Jan vegoil imports down on high global prices
NEW DELHI, Feb 11 (Reuters) -India's vegetable oil imports in January may have fallen 7 percent from December as buyers slowed overseas purchases on high global prices, a Reuters survey shows.
Last month, the Malaysian benchmark palm oil contract  hit a 33-month high as part of a weather-driven rally in global vegetable oil markets.