Wednesday, February 16, 2011

20110216 1821 FCPO EOD Daily Chart Study.

FCPO closed : 3745, changed : -140 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : weakening, seller testing market as buyer leaving.
Support : 3720, 3700, 3650 level.
Resistance : 3750, 3800, 3850 level.
Comment :
Change month FCPO closed recorded huge losses down 140 points or 3.6% (continuous chart down 188 points) as export data released shown significant lower but still improved figure and soy oil futures price Monday night plus yesterday night closed recorded severe losses. 
Daily chart formed a down bar candle after market opened gap down, dive deeper and closed near the low of the day and below middle Bollinger band support level. Technical chart reading turned to suggesting a side way range bound market development with MACD negative divergence forming. 
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.

20110216 1737 FKLI EOD Daily Chart Study.

FKLI closed : 1505.5 changed : -1 point,  volume : lower.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : recovering, seller taking profit.
Support : 1500, 1485, 1470 level.
Resistance : 1515, 1530, 1540 level.
Comment :
FKLI closed recorded marginal loss with decreasing volume transacted doing nearly 1 point discount compare to cash market as sellers continue to realising profit while regional market closed mostly recorded gain.
Daily chart formed an up doji bar candle with long lower shadow after market opened gap down tested lower support level and recovered upward to closed nar the high of the day with the reading wise suggesting a correction range bound downside 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.

20110216 1005 Global Economic Related News.

U.S: Manufacturing in New York area grew at faster pace in February, a sign factories continue to drive the economic expansion. The Federal Reserve Bank of New York's general economic index rose to 15.4 from 11.9 in January. Readings greater than zero signal expansion in the so-called Empire State Index, which covers New York, northern New Jersey, and southern Connecticut. (Source: Bloomberg)

U.S: Global demand for assets declined in December. Net buying of long-term equities, notes and bonds totaled USD 65.9b during the month, compared with net buying of USD 85.1b in November. (Source: Bloomberg)

U.S: Stockpiles at companies increased 0.8% MoM in December. Sales climbed 1.1% MoM, reaching the highest level since September 2008. (Source: Bloomberg)

Germany: Investor confidence increased in February for a fourth month as Europe's largest economy gathered strength and stocks rose to a three-year high. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict developments six months in advance, rose to 15.7 from 15.4 in January. That's the highest July 2010. (Source: Bloomberg)

Japan: GDP fell less than estimated in 4Q10 in a pullback that may prove temporary as overseas demand revives production after the nation fell behind China as the world's second-largest economy. The annualized 1.1% YoY drop in GDP in the three months through December was driven by a slowing in exports and fading of government stimulus programs, Cabinet Office figures showed in Tokyo. (Source: Bloomberg)

India: Inflation slowed in January, an easing that may not prevent the central bank from raising interest rates further. The wholesale-price index rose 8.23% YoY after an 8.43% YoY jump in December, the commerce ministry said in a statement in New Delhi. (Source: Bloomberg)

Singapore: Retail sales rise in December, spurred by record growth, tourism. The index measuring purchases excluding automobiles rose 8.6% YoY after gaining a revised 5.5% YoY in November. (Source: Bloomberg) 

China: Inflation quickens to 4.9% in January
China’s inflation exceeded the government 2011 target for a fourth month as prices excluding food rose the most in at least six ears, escalating pressure on the central to keep raising interest rates. Consumer prices rose 4.9% last month from a year earlier after a 4.6% gain in December, the statistics bureau said in a statement on its website yesterday. Producer-price inflation quickened to 6.6% from 5.9%.(StarBiz)

Japan: Swap spreads hit two-year high on BOJ rate view
The bond market premium to lock in interest rates for three years rose to the highest since October 2008 as Nomura Securities Co. said the end of the central bank’s zero rate policy is getting closer. The gap between the cost of swap contracts to lock in fixed rates for three years compared with one year reached 0.17 percentage point on 9 Feb, the widest since 14 Oct 2008. The spread was at 0.15562 yesterday. (Bloomberg)

South Korea: Unemployment rate increased to 3.6% in January
South Korea’s unemployment rate rose to 3.6% in January from a revised 3.5% in December, Statistics Korea said today in Gwacheon, south of Seoul. The median estimate in a Bloomberg News survey of eight economists was for a jobless rate of 3.7%.(Bloomberg)

Euro: Economy expands less than economists forecast
Europe’s economy expanded less than economists forecast in the fourth quarter as cold weather curbed German output and French growth unexpectedly stalled. Gross domestic product in the euro region rose 0.3% from the previous three months, when it increased at the same rate, the European Union’s statistics office in Luxembourg said today. Economists had forecast the economy to expand 0.4%, the median of 37 estimates in a Bloomberg News survey showed.(Bloomberg)

US: Deficit to hit record USD1.6trn
President Barack Obama sent Congress a USD3.7trn budget that projects the federal deficit will exceed USD1trn for the fourth consecutive year in 2012 before falling to a more “sustainable” levels by the middle of the decade. The deficit for the current fiscal year is forecast to hit a record USD1.6trn-10.9% of gross domestic product-up from the USD1.4trn the administration estimated previously. It would be USD1.1trn in 2012, 7% of GDP. By 2015 it would decline to USD607bn, or 3.2% GDP.(StarBiz)

US: Retail sales climb less than forecast
Sales at retailers rose less than forecast in January, showing it will be difficult for American consumers to sustain last quarter’s pick-up in spending without bigger gains in employment. Purchases increased 0.3%, the smallest gain since a drop in June, according to Commerce Department figures today in Washington. Other reports showed manufacturing in the New York area accelerated and confidence among home builders stagnated. (Bloomberg)

20110216 1003 Malaysia Corporate Related News.

AMMB: EPF accumulating shares in AMMB. The Employees Provident Fund (EPF) has been accumulating shares in AMMB Holdings Bhd recently, increasing its stake in AMMB by 11.1% to 12.93% in AMMB. (Source: The Edge Financial Daily)

Property: Race to let out office space. Competition among lessors of office space in Kuala Lumpur is expected to intensify this year, with average rental of office space in the business district projected to remain unchanged at USD24.31 (USD1 = RM3.05) per sq ft a year. This brings the total stock of office space in the area to 31.1m sq ft compared with 28.1m sq ft in 2010. (Source: Business Times)

Mining: Canadian miner to speed up Pahang ops. Monument Mining Ltd, a Canadian gold mining and exploration company, plans to buy two new drill rigs for USD1m (RM3.05m) to speed up its current exploration programmes in Pahang. Monument owns Selinsing gold mine, Damar Buffalo Reef and Famehub in Pahang, within the central gold belt district of Malaysia. (Source: Business Times)

Government: Sarawak assembly unlikely to be dissolved this week, says Taib. Sarawak Chief Minister Tan Sri Abdul Taib Mahmud yesterday said the state legislative assembly will not be dissolved by this week to pave way for the state election. (Source: The Edge Financial Daily)

Petronas finds new O&G fields offshore Sarawak
State-controlled Petroliam Nasional (Petronas) has made a major oil and gas (O&G) discovery after commencing drilling works at NC3 and Spaoh-1 wells in Blocks SK316 and SK306 respectively, offshore Sarawak. The successful drilling of the NC3 wildcat well in March 2010 and a subsequent appraisal well indicated a significant discovery for the national oil company in Block SK316, with early estimates at 2.6tr standard cubic feet (tscf) of net gas in place. ‘The Spaoh-1, well located in Block SJ306, shows similar promise. It was drilled in Dec 2010 and found both oil and gas,” the national oil company said. Petronas pointed out that preliminary evaluation indicated about 100m stock tank barrels (mmsb) of oil and 0.2 tscf of gas in place respectively. Currently, the well is being prepared for production testing. (FinancialDaily)

IGB to sell The Gardens Mall to subsidiary
IGB Corp plans to sell The Gardens Mall, which has an indicative value of RM820m, to its subsidiary KrisAssets Holdings for cash as part of its ongoing streamlining scheme. KrisAssets, its 75% unit, essentially operates like a real estate investment trust, and the purchase will give it a new source of recurring income. IGB entered into an agreement yesterday for KrisAssets to buy all of the shares in Mid Valley City Gardens SB. The purchase will depend on the net tangible assets of MVCG for the fiscal year ended 31 Dec 2010. (BT)

Bidders for Khazanah’s stake in Pos Malaysia to go through vigorous process
Khazanah Nasional will be putting the bidders for its 32.21% equity in Pos Malaysia through a vigorous process that includes a detailed assessment of the business plan and whether there will be a “cultural fit” between the new owners and the postal company. Monday was the deadline for all bidders to submit their offer and sources close to the deal said the format required for the bids was broken up into a few parts. One of them being the business plan, another the indicative office price and a third being the background information on the bidder such as the name of shareholders and partners as well as financial information of all companies in the consortium. (Starbiz)

Plan to relist Magnum put on hold
Multi-Purpose Holdings (MPHB), which has planned to relist its gaming unit, Magnum Holdings is putting the plan on hold. “The board of directors of MPHB wishes to state that the preliminary plans to relist Magnum as announced on 3 and 4 Aug 2010 has been placed on hold for the time being,” MPHB said. (Starbiz)

Handal unit inks RM12m crane deal
Handal Resources wholly owned unit, Handal Offshore Services SB (HOSSB), has signed a RM12m deal with Excell Crane & Hydraulics Inc (ECHI) for the use of the intellectual property rights of the “Seacrane” offshore pedestal crane product line. The “Seacrane” will be used in Asia, Africa, Europe, Australia, New Zealand and other countries. (BT)

AirAsia to order 175 A320s
AirAsia say it’s in talks to buy about 175 of the upgraded A320 jet planned by Airbus SAS, as well as some larger A330s with which to add flights to Germany and other European destinations from Kuala Lumpur. The two sides had not yet agreed financial terms for the order, whose size would not be “not dissimilar” to AirAsia’s last 175-plane A320 purchase, chief executive officer Datuk Seri Tony Fernandes said. (Starbiz)

20110216 0949 Global Market Related News.

Crude rebounds as U.S. crude stocks fall unexpectedly
SEOUL, Feb 16 (Reuters) - U.S. crude futures recovered slightly in early Asian trade after the American Petroleum Institute (API) said U.S. crude stocks fell unexpectedly last week as imports dropped.
NYMEX crude for March delivery was up 0.23 cents, or 0.27 percent, at $84.55 a barrel by 2338 GMT. It settled down 0.58 percent on Tuesday at $84.32 a barrel, the lowest close since Nov. 30, 2010, when front-month crude closed at $84.11.

Gold steady after two days' gain; investors on sideline
SINGAPORE, Feb 16 (Reuters) - Spot gold held steady after two consecutive sessions of gains, as investors stood on sidelines of a market with no clear trend for the short term, and technical resistance is seen around $1,375.
"We are seeing inflation rise globally," said Darren Heathcote, head of trading at Investec Australia, "The bullish trend is intact, although we'll see periods of weakness."

Sterling rises, Nikkei at 9-mth high on soft yen
SYDNEY/TOKYO, Feb 16 (REUTERS) - Sterling rose in Asia as accelerating inflation in Britain cemented expectations of an early interest rate rise, while a weaker yen helped to send Japanese stocks to their highest level since May. 
"The question everybody is asking is whether that is the reversal of a trend of the bullish emerging market story or is that just a rebalancing of portfolio," Zorrilla said, adding that he supported the second view. 

OIL:Crude rebounds as U.S. crude stocks fall unexpectedly
SEOUL, Feb 16 (Reuters) - U.S. crude futures recovered slightly in early Asian trade on Wednesday after the American Petroleum Institute (API) said U.S. crude stocks fell unexpectedly last  week as imports dropped.
Concerns over possible supply disruption also buoyed the  markets as unrest in the Middle East continued in Bahrain,  Iran and Yemen.

COMMODITIES:Down after early gains; Mideast, inflation on radar
NEW YORK, Feb 15 (Reuters) - Heavy profit-taking in grains and metals wiped out early gains in commodities on Tuesday, but inflation worries and tensions in Middle East oil producing nations could reverse the trend quickly, analysts said.
"If you're an investor and looking to position yourself in this environment, you'll go long commodities," said Adam Sarhan at Sarhan Capital in New York. "We are starting to see higher inflation that's going to reflect itself in higher oil prices and higher commodity prices everywhere."

GLOBAL:Sterling rises, Nikkei at highest since May
SYDNEY/TOKYO, Feb 16 (REUTERS) - - Sterling rose in Asia on Wednesday as accelerating UK inflation fueled talk of an early rate rise, while a weaker yen helped to send Japanese stocks to the highest level since last May. 
Sterling rallied to a 5-1/2 month peak against a currency basket  after inflation in Britain jumped to twice the Bank of England's target in January, prompting Governor Mervyn King to acknowledge that interest rates might rise more rapidly than economists had expected.

China inflation surprisingly low, media says lending brisk
BEIJING, Feb 15 (Reuters) - Chinese inflation  was lower than  forecast at 4.9 percent in the year to January, but price  pressures continued to build and will force the central bank to  stick to its course of gradual monetary tightening.
That was underlined by a Xinhua report that Chinese banks extended 1.2 trillion yuan ($182 billion) in new lending in January -- in line with expectations and nearly a fifth of 7 trillion yuan in loans that many assume is the government's full-year target in 2011.

Obama budget has $556 bln, six-year transport plan
WASHINGTON, Feb 14 (Reuters) - President Barack Obama on Monday proposed an ambitious long-term transport spending plan in his 2012 budget as a way to boost U.S. economic competitiveness and spur job growth.
While cutting other spending, Obama aggressively accelerated efforts to upgrade aging roads, bridges

China the wild card for commodity prices
LONDON, Feb 15 (Reuters) - A strengthening global economy and growth in demand are likely to keep commodity prices high in coming months, but there is a risk China could slam on the monetary brakes and trigger a reversal.
Low inventories make copper and corn favourite bets for investors this year as long as prices stay strong.

PRECIOUS-Gold up on weaker dollar, China inflation
LONDON, Feb 15 (Reuters) - Gold rose for a second day on Tuesday, helped by a weaker dollar and slower Chinese inflation data that soothed some concern over the prospect of more rapid rate rises in the world's second largest bullion consumer.
Rising inflation particularly in the emerging world could encourage demand for gold, which can help investors insulate their portfolios against growing price pressures.

FOREX-Euro creeps higher but hampered by debt skepticism
LONDON, Feb 15 (Reuters) - The euro edged higher on Tuesday on demand from the Middle East and Asia, but it was undermined by scepticism over how euro zone leaders would come up with a quick and effective solution to tackle its debt crisis.
Peripheral euro zone yield spreads have been widening in the past week on uncertainty over a rescue package for the region, and there was some disappointment after a meeting of European finance ministers on Monday.

U.S. corn rises 0.6 pct on supply fears, wheat dips
SINGAPORE, Feb 15 (Reuters) - U.S. corn futures rose around half a percent recovering some ground as investors placed bets on shrinking supplies amid strong demand from food and fuel sectors.
"Corn is seeing some modest gains as there is a kind of bargain-hunting because we saw a sharp decline in prices," said Ker Chung Yang, commodities analyst at Singapore-based Phillip Futures.

China data eases rate fears, world stocks up
LONDON, Feb 15 (Reuters) - Chinese inflation data helped ease investor concerns that the world's No 2 economy will have to tighten monetary policy more aggressively, but other data releases kept markets in a tight range.
"The data probably slightly eased expectations of immediate tightening, although in the overall scheme of things, this doesn't change the fact that China is still in a tightening phase," said Etsuko Yamashita, chief economist at SMBC.

Crude up on China demand, unrest in Middle East
SEOUL, Feb 15 (Reuters) - U.S. crude futures pared some  losses in early Asian trade , buoyed by Chinese demand and unrest in the Middle East, which could trigger supply  disruptions of crude oil. NYMEX crude for March delivery  was up 0.09 cents, or 0.11 percent, at $84.90 a barrel by 2351 GMT, after settling down 0.9 percent at $84.81. Near Monday's close, the contract hit a session low of $84.58, the lowest since Dec. 1, when prices hit $83.63.

Obama would end subsidies to wealthiest US farmers
WASHINGTON, Feb 14 (Reuters) - President Barack Obama called for the elimination of farm subsidies to the wealthiest farmers in his new budget plan on Monday, arguing that the payments distort the farm sector and even pay some farmers that grow no crops.
Lawmakers rejected an identical proposal a year ago, ahead of the mid-term elections, saying any change in farm supports should be delayed until an overhaul in 2012.

Gold edges up after China inflation data
SINGAPORE, Feb 15 (Reuters) - Spot gold inched higher after China's weaker-than-expected inflation data eased fears of more aggressive tightening moves, while persistent concerns about rising prices are expected to buoy gold in the longer term. "The number, in line with market expectations, may help reduce fears of further tightening and underpin gold prices to a certain extent," said Hou Xinqiang, an analyst at Jinrui Futures in China.

Asian stocks rise slightly, copper up on China CPI
SYDNEY/TOKYO, Feb 15 (Reuters) - Asian stocks rose slightly on Tuesday after China's closely-watched inflation data failed to surprise markets, while the euro regained some ground after hitting a three-week low the previous day.
"The data probably slightly eased expectations of immediate tightening, although in the overall scheme of things, this doesn't change the fact that China is still in a tightening phase," said Etsuko Yamashita, chief economist at SMBC.

Argentine corn farmers could lead new protests
BUENOS AIRES, Feb 14 (Reuters) - Argentine corn farmers, facing shrinking yields and low domestic prices, could lead a drive for fresh protests against government export policies, which sparked a commercial strike last month.
Protests in the South American country -- a leading supplier of corn, soybeans and wheat -- often move global prices, especially if they disrupt trade at the peak of the corn and soy harvests in March and April.

Vale's Malaysian iron-ore hub to handle 30 mln T/yr
IPOH, Malaysia Feb 14 (Reuters) - Brazil's Vale  will spend $1.3 billion in the first phase of its transhipment project in Malaysia's Perak state that can handle 30 million tonnes of iron ore yearly to meet global demand, a Malaysian official said on Monday.
Perak Chief Minister Zambry Abdul Kadir told Reuters the world's largest iron ore miner's Malaysian hub would be ready by 2014 to handle Chinamax carriers, which are 400,000-tonne iron ore vessels that will cut freight costs for Vale.

20110216 0947 Soy Oil & Palm Oil Related News.

ITS CPO export up 8.14% to 636,966 tonnes for the period of 1~15 Feb 2011.
SGS CPO export up 7.3% to 610,087 tonnes for the period of 1~15 Feb 2011.

Soy product futures tumbled, succumbing to profit taking pressure, as the markets corrected after rising to historically high levels. Soyoil futures sank to 3-week lows, as traders reduced risk exposure amid the diminished threats of South American supply issues slowing demand for U.S. soybeans, analysts said. Soymeal followed the lead of soybeans, sinking to 1-month lows. CBOT March soyoil ended 1.15 cents or 2% lower at 56.54 cents per pound, and March soymeal traded $8.90 or 2.4% lower at $366.60 a short ton. (Source: CME)

Bangladesh to cut import duty on edible oil to 10 pct
DHAKA, Feb 15 (Reuters) - Bangladesh will cut its import duty on edible oils in a bid to stabilise domestic prices amid soaring global food costs, a commerce ministry official said on Tuesday.
"The government has decided to reduce import duty on edible oil to 10 percent from 15 percent earlier," the official said, adding that the measure would take effect soon, but without giving details.

Argentine soy recovery on solid footing-gov't
BUENOS AIRES, Feb 14 (Reuters) - Rainfall in Argentina's top soy growing region last week brought more moisture to already damp soils, cementing the recovery of soy crops hit by severe dryness, the Agriculture Ministry said.
Recurrent rains since mid-January eased the impact of weeks of dry weather caused by La Nina, although the rainfall arrived too late for corn crops, which were battered by dryness when they were going through the key pollination stage.

Rain to intensify in Brazil's center-west soy belt
SAO PAULO, Feb 14 (Reuters) - A cold front of Brazil's southeastern coast will combine with Amazon moisture to bring heavy rainfall in the main soy growing states in the center-west this week, local forecaster Somar predicted Monday.
Regular rains mixed with hot sunny days will be needed over the world's No. 2 soy belt to allow farmers to harvest early maturing fields, while keeping conditions moist and sunny enough to bring later cycle beans to maturity.