Monday, February 28, 2011

20110228 1837 FCPO EOD Daily Chart Study.

FCPO closed : 3472, changed : -43 points, volume : lower.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : recovering, seller taking profit.
Support : 3470, 3450, 3420, 3350 level.
Resistance : 3500, 3550, 3620 level.
Comment :
FCPO closed recorded loss with decreasing volume transacted as export data for the month of Feb 2011 released recorded decline while soy oil traded lower after last Friday closed recovered significant higher.
Daily chart formed wide range down bar candle with small upper and lower shadow closed near lower Bollinger band level after market opened gap up tested higher resistance level and dive lower tested lower support level and recover upward slightly as seller profit taking still taking place.
Reading wise suggesting a correction range bound downside biased market development testing support and 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.

20110228 1747 FKLI EOD Daily Chart Study.

FKLI closed : 1491 changed : -1.5 points,  volume : lower.
Bollinger band reading : downside biased.
MACD Histrogram : getting lower, seller taking exposure.
Support : 1480, 1470, 1458, 1445 level.
Resistance : 1485, 1500, 1515 level.
Comment :
FKLI closed recorded small loss with lower volume changed hand while regional market closed mostly higher where else Mar 2011 contract ended 1 tick lower doing nearly 9 points discount compare to cash market .
Daily chart formed a down doji bar candle with long lower shadow after market opened gap down tested lower level and recovered to close near lower Bollinger band level.
Reading wise suggesting a downside biased movement market development potentially testing lower lower support level else market will be trading correction range bound.
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.

20110228 1213 Global Economic Related News.

China: Lowers growth target as Wen calls for sustainability
Chinese Premier Wen Jiabao said the nation set a lower growth target for the period from 2011 through 2015 than in previous five years as part of efforts to create a more sustainable economy. The government set an economic growth target of 7% for the so called 12th five-year plan period, which covers 2011 through 2015, Wen announced. (Bloomberg)

India: Predicts 9.25% growth next year, signals lower budget gap
India’s finance ministry said economic growth may accelerate to as much as 9.25% in the next financial year, the fastest pace since 2008, and signaled a cut in the budget deficit to help slow inflation. Mukherjee is due to unveil the budget on 28 Feb for the year starting 1 April. (Bloomberg)

US: Economy grew 2.8% in fourth quarter, revised From 3.2%
The US economy grew at a 2.8% annual rate in the fourth quarter, slower than previously calculated and less than forecast as state and local governments made deeper cuts in spending. The revised increase in gross domestic product compares with a 3.2% estimate issued last month and a 2.6% gain in the third quarter, figures from the Commerce Department showed. The economy, excluding inventories, grew at a 6.7% pace, the most since 1998. (Bloomberg)

US: Consumer sentiment climbs to three-year high
Confidence among US consumers increased in February to the highest level in three years as a drop in unemployment helped overcome concern over rising food and fuel costs. The Thomson Reuters/University of Michigan final index of sentiment climbed to 77.5, exceeding the median forecast of 74.2 in January, a report showed. The Commerce Department said the economy grew less than previously estimated in the fourth quarter as state and local governments cut back on spending. (Bloomberg)

US: Payrolls probably accelerated in February
Payroll gains in the US probably accelerated in February, buoyed by more seasonable temperatures and a pickup in manufacturing, economists said before reports this week. Employment increased by 190,000 workers this month, the most since May 2010, after a 36,000 gain in January, when winter storms depressed the count, according to the median forecast of 59 economists surveyed ahead of Labor Department data on 4 March. The report may also show the jobless rate increased to 9.1% from 9%. (Bloomberg)

U.K: February consumer confidence stayed close to the lowest since March 2009, a report by GfK NOP Ltd. showed. The index of sentiment rose to minus 28 from minus 29 January, when it plunged the most since 1994. Gauges of consumers perception of the economy in the past 12 months and over the next year both declined. (Source: Bloomberg)

U.K: Economy shrank more than initially estimated in 4Q10. GDP fell 0.6% QoQ from the previous three months, compared with an initial estimate for a 0.5% QoQ drop, the Office for National Statistics said in London. The statistics office said its "best estimate" for the impact of cold weather on the data remains 0.5% QoQ. The slump was led by construction and investment. (Source: Bloomberg)

S. Korea: Current account surplus narrowed to an 11-month low in January as imports surged amid an economic recovery and rising energy demand. The surplus was USD 229m, compared with USD 2.11b in December. The current account is the broadest measure of trade, tracking goods, services and investment income. (Source: Bloomberg)

Japan: January consumer price drop eases as oil, food costs gain. Consumer prices excluding fresh food declined 0.2% YoY. Price drops eased for a fourth consecutive month. (Source: Bloomberg)

Singapore: Industrial production growth unexpectedly accelerated in January as electronics manufacturers increased output, offsetting a decline in pharmaceuticals. Manufacturing, which accounts for about a quarter of the economy, climbed 10.5% YoY in January after a 9% YoY increase in December, the Economic Development Board said in a statement. (Source: Bloomberg)

Vietnam: Trade deficit widened in February from the previous month even as the government strives to curb the gap with a weaker currency that may boost inflation. The deficit totaled USD 950m, up from a revised USD 877m in January, according to preliminary figures released. The deficit for the first two months of the year is USD 1.83b, the report said. (Source: Bloomberg)

20110228 1212 Malaysia Corporate Related News.

AFG: Langkah Bahagia looking to exit AFG. Langkah Bahagia Sdn Bhd, an investment vehicle believed to be linked to former finance minister Tun Daim Zainuddin, is looking at selling its stake in Alliance Financial Group Bhd (AFG). Langkah Bahagia owns 14.8% in AFG via Vertical Theme Sdn Bhd. Langkah Bahagia is said to be offering to dispose of the stake to parties related to Temasek Holdings Ltd, which indirectly holds 49% in Vertical Theme. (Source: The Edge Financial Weekly)

Bina Puri: Eyes RM250m revenue from property, secures RM1.1b projects in Brunei. Bina Puri Holdings Bhd is projecting a total of RM250m sales revenue from its property division or 20% of the group's overall ongoing projects this year. The contribution marked the construction group's effort to shift away from its core business activities to property development. Separately, Bina Puri has secured a total of RM1.1b worth of projects in Brunei. The company had an unbilled portion totalling RM265m until 2013 and plans to secure another RM600m worth of projects in the Sultanate this year. (Source: The Star)

Uzma: Poised to clinch Petronas contract. Uzma Bhd, which specializes in upstream oil engineering works, stands a good chance of getting a slice of the oil recovery enhancement contracts in domestic brown field and idle oil fields as its probably the only local firm that has the technology and equipment to conduct EOR in the oil fields. The total value of the contracts could be worth up to RM500m. (Source: The Edge Financial Weekly) 

RHB in final leg of acquisition
The RHB banking group, the country's fourth largest by assets, expects to conclude its purchase of Indonesian lender Bank Mestika Dharma in April this year after several delays, its chief said. The group's listed entity, RHB Capital Bhd, had first announced plans to buy 80% of Bank Mestika for some RM1.16 bn in October 2009. Those plans, however, ran into delays because of queries from the Indonesian central bank relating to "structure and disclosure", group chief executive officer Datuk Tajuddin Atan said as early as May last year. Tajuddin told Business Times last week that some changes in structure had since been made, with RHB Bank – RHB Capital's commercial bank - now being proposed as the entity to undertake the purchase. This new proposal, which was submitted on 20 Dec last year, got the green light from Bank Negara Malaysia on 31 Jan this year. It is currently pending approval from Bank Indonesia. (BT)

Hunza ready to launch RM800m property projects
Hunza Properties will launch property worth RM800m in gross development value (GDV) over the next 18 months as its Gurney Paragon mixed development project in Penang nears completion. The three projects identified for launch are the Alila II high-rise residences at Tanjung Bungah and the Bandar Putra Bertam residential project in Penang with a combined GDV of RM500m, and a high-rise residential project in Segambut, Kuala Lumpur, with a GDV of RM300m. (Malaysian Reserve)

DRB-Hicom inks new concession for Puspakom
DRB-Hicom Bhd’s wholly-owned unit Puspakon SB has signed a new 15-year concession agreement with the government to continue carrying out vehicle inspection. Under the latest concession, Puspakom will pay a “predetermined concession fee” at an undisclosed rate to the government beginning September 2009 to August 2024 and will be allowed to collect fees for each inspection, according to a filing by DRB-Hicom to Bursa Malaysia last Friday. “The concession allows Puspakom to continue motor vehicles inspection and testing activities which will further strengthen the services sector of DRB-Hicom,” the company said in the filing. (Malaysian Reserve)

Nissan may raise car prices to counter strong yen
Edaran Tan Chong Motor Sdn Bhd (ETCM), the sole distributor and assembler of Nissan vehicles in Malaysia, is considering raising prices of its vehicles to offset the yen’s appreciation against the ringgit. Its executive director Datuk Dr Ang Bon Beng said, however, the company would try to avoid raising prices and instead look to reduce other costs to offset the impact of the strong yen on its bottomline. “We are trying to maintain current car prices, even though the prevailing strong yen hurts us,” he told SunBiz at ETCM’s Chinese New Year media lunch last week. The ringgit’s rate against 100 yen was 3.7282/7337 last Friday. Meanwhile, Ang expects double-digit growth in net profit and car sales this year, as ETCM launches seven new completely knocked-down (CKD) and completely built-up (CBU) models as well as introduce cosmetic changes to its existing model line-up. He said the new models include single- and twin-cab trucks and the Nissan Livina X-Gear 1.6-litre engine passenger car. (Sun2Surf)

AirAsia may raise RM1.2bn in Thai, Indonesian units IPOs
AirAsia Bhd, South-East Asia’s biggest budget carrier, may raise as much as USD400m (RM1.2bn) from separate listings of its Indonesian and units to help pay for the expansion. The company expects to raise USD150m to USD200m in each offering, both of which will likely to happen in the fourth-quarter, chief executive officer Datuk Seri Tony Fernandez said in a Bloomberg TV interview last Friday. Bankers for the Indonesian share sale may be announced soon, he said. The airline jumped the most in three months in Kuala Lumpur trading after last Thursday reporting a ninefold jump in profit and saying it may begin paying dividends. The company, based in Selangor, Malaysia, plans to sell shares in overseas units as it seeks new planes, possibly including 175 of Airbus SAS’s planned A320neo. (Malaysian Reserve)

Tajuddin Atan to be appointed CEO Of Bursa Malaysia
Bursa Malaysia has appointed Datuk Tajuddin Atan as its CEO, effective 1 April, 2011. He will take over from Datuk Yusli Mohamed Yusoff who will remain in office until 31 March, 2011. He is currently the MD of RHB Bank and Group MD of RHB Capital since May 2009 and July 2009, respectively. (Bernama)

20110228 0938 Global Market Related News.

Oil rises above $114 as supply woes persist after Libya cuts
SINGAPORE, Feb 28 (Reuters) - Brent crude rose more than $2 a barrel to a high of $114.50 as concern persisted about security of supply from the Middle East and North Africa even after top exporter Saudi Arabia boosted supply to meet the shortfall caused by a cut in exports from Libya.
"There is the continued threat that conflicts will spread in the region that produces a large amount of oil in the world," said Ben Westmore, a commodities economist at the National Australia Bank. 

Wheat up half pct on strong consumer demand, soy dips
SINGAPORE, Feb 28 (Reuters) - U.S. wheat futures rose around half a percent, extending gains as growing demand from top buyers in the Middle East continued to underpin the market amid concerns over supplies this year.
"The downside on wheat is going to be limited as governments across the world are going to ensure that there are adequate stocks, give the unrest," said Abah Ofon, an agricultural commodities analyst at Standard Chartered Bank.

Sime eyes $2.5 bln oil palm expansion deal in Cameroon-FT
KUALA LUMPUR, Feb 28 (Reuters) - Malaysia's Sime Darby  is considering a $2.5 billion plantation expansion deal in Cameroon, the Financial Times reported on Sunday, signalling the global grab for land is well underway as food prices soar.
The Financial Times quoted Sime Darby Chief Executive Mohd Bakke Salleh as saying the project in the West African state will involve 300,000 hectares (741,300 acres) of oil palm estates although discussions have so far led to "nothing conclusive."

Argentine crops lifted by scattered showers-gov't
BUENOS AIRES, Feb 25 (Reuters) - Scattered showers in Argentine soy-growing regions further improved the condition of oilseed crops hit by severe dryness earlier this year, the Agriculture Ministry said on Friday in its weekly report.
Argentina is the world's No.3 exporter of soybeans and the top supplier of soyoil and meal, and dryness caused by the La Nina weather phenomena earlier this year led analysts to lower their forecasts for soy output in the South American country.

Gold headed for best month since August on Libya unrest
SINGAPORE, Feb 28 (Reuters) - Spot gold inched up on Monday, heading for its best month since last August, boosted by fears over the deteriorating situation in Libya and spreading violence in the region, supported by rising oil prices.
"The sentiment is still generally bullish," said a Singapore-based dealer, "If oil keeps going up, people will continue to bet on gold, as a hedge against inflation and against risks caused by the unrest in the Middle East."

Shares dip; emerging Asia outflows may persist
SINGAPORE, Feb 28 (Reuters) - Asian shares on Monday slipped back toward a three-month low hit last week, with emerging Asian equities seen likely to keep lagging developed markets as investors fret about risks from inflation.
"There are strong concerns about inflation based on excessive liquidity and emerging markets have been hurt more by this," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management in Tokyo.

OIL: Crude jumps nearly $2 towards $100 on Libya
TOKYO, Feb 28 (Reuters) - U.S. crude futures jumped by nearly $2 towards $100 a barrel on Monday as the worsening situation in Libya fed worries that unrest in the Middle East would spread and that oil flows in the region would be disrupted.
Concern about supply disruption from OPEC-member Libya, where revolt against its long-serving president has significantly cut down on exports, on Thursday drove Brent to a 2-&#189   year-high of nearly $120 a barrel and U.S. crude to more than $103.

COMMODITIES: Oil, copper and cocoa up on political unrest
NEW YORK, Feb 25 (Reuters) - Crude gained with Brent oil holding above $112 a barrel on Friday as unrest in the Middle East, including a bloody political standoff in OPEC producer Libya, overshadowed news that Saudi Arabia has boosted oil output in recent days.
"I don't think many traders are comfortable being short over the weekend," said Tom Bentz, an energy broker at BNP Paribas Commodity Futures in New York.

GLOBAL MARKETS: Oil rises, Asian shares dip on Libya worries
SINGAPORE, Feb 28 (Reuters) - London crude prices rose by more than $1 and Asian shares edged lower on Monday, as the worsening situation in Libya stirred renewed concern about  disruptions to oil production.
"With rising commodity prices, the ECB will likely continue its tough talk on inflation, increasing the probability of early ECB tightening," BNP Paribas analysts wrote in a note.

Rising oil prices could stall US states' recoveries
WASHINGTON, Feb 27 (Reuters) - Rising oil prices could trample prospects for economic recovery in many U.S. states, three governors warned on Sunday, as a leading economist said they also threaten the country's economic comeback.
"Oil prices -- I hope don't go any higher," said Indiana Governor Mitch Daniels, a possible contender for the Republican presidential nomination in 2012. "But everywhere now one hears there's more than a minor risk they're going to go a lot higher."

Fed officials play down oil price risks
NEW YORK, Feb 25 (Reuters) - The Federal Reserve would react to higher oil prices only if the increases spilled over into broader areas, officials of the U.S. central bank said on Friday, with one policy maker calling the risks "manageable."
In a similar vein, an official of the European Central Bank said policy makers should be wary of responding too soon to the recent jump in oil prices as it may be fleeting.

Fed's Bullard says it's time to debate completing QE2
BOWLING GREEN, Ky., Feb 24 (Reuters) - A senior U.S. Federal Reserve official said on Thursday he thinks it is time to consider tapering off or scaling back a $600 billion bond-buying program because of an improved economic outlook.
"The natural debate now is whether to complete the program or to taper off to a somewhat lower level of assets," St. Louis Federal Reserve President James Bullard said at a Chamber of Commerce breakfast held at Western Kentucky University.

U.S. jobless claims fall, durable orders mixed
WASHINGTON, Feb 24 (Reuters) - New U.S. claims for jobless aid fell last week, indicating healing in the labor market, but declines in new home sales and orders for a range of factory goods in January showed the recovery remains uneven.
The recovery has been slow by historical standards and the unemployment rate remains at a painfully high 9 percent. But analysts see the economy making headway and saw the jobless claims data as evidence of better days ahead.

PRECIOUS-Gold near $1,400/oz, supported by Mideast unrest
LONDON, Feb 25 (Reuters) - Gold held near $1,400 an ounce in Europe on Friday, supported by interest in the metal as a haven from risk as violence flared in Libya, but struggled to maintain traction as some investors cashed in this week's hefty gains.
The U.N. Security Council is to meet later to discuss a draft proposal for sanctions against Libyan leaders, who are battling for survival against a popular uprising in which French estimates say some 2,000 people may have died.

FOREX-Dollar edges up as oil prices ease; U.S. GDP due
LONDON, Feb 25 (Reuters) - The dollar edged up on Friday, helped as oil prices retreated from their recent highs on easing concerns about the turmoil in Libya and as investors squared positions ahead of the weekend.
However, the euro still hovered near 2011 highs against the U.S. currency, helped by inflation-fighting rhetoric from euro zone policymakers which has added to expectations euro zone rates will rise while U.S. policy remains loose.

Oil resumes surge, keeps stocks under check
LONDON, Feb 25 (Reuters) - Oil resumed its surge as political tension in North Africa showed little signs of abating and stock prices were checked on fears that runaway oil prices will constrain global growth.
"The Libyan crisis really brought back the geopolitical risks at the forefront of investors' minds," said David Thebault, head of quantitative sales trading, at Global Equities in Paris. "That being said, this week's pull-back (in stock prices) has been serious and we're getting close to a floor here."

20110228 0937 Soy Oil & Palm Oil Related News.

ITS CPO export down 10.4% to 1,110,672 tonnes for the period of 1~28 Feb 2011.
SGS CPO export down 9.1% to 1,092,620 tonnes for the period of 1~28 Feb 2011.

Soy-product futures rebound, with soyoil briefly rallying to its exchange-imposed daily trading limit. Strong international demand for vegoil and optimistic outlooks for increased soyoil usage for biodiesel provided support to rekindle speculative buying interest, analysts said. Soymeal recouped prior declines in unison with the rest of the soy complex. CBOT May soyoil ended 4.2% higher at 57.58c/pound and May soymeal rose 2.8% at $364.70/short ton. (Source: CME)

Veg oils set to reignite after crude surge: Maguire
CHICAGO, Feb 24 (Reuters) - The prices of edible oils look set to strengthen in the days ahead after crude oil burst to its highest levels in more than two years on the back of supply concerns sparked by unrest in major oil exporter Libya.
Crude is a well-established leader of edible oil prices, as biodiesel demand typically firms in response to higher fossil fuel prices. But within the edible oil arena, Malaysian palm oil looks set to outperform soybean oil and canola (rapeseed oil) on the back of tight palm inventories as well as the prospect for higher soy and rapeseed output this coming year.

Palm oil bounces on bargain hunting after sharp declines
KUALA LUMPUR, Feb 25 (Reuters) - Malaysian palm oil futures rose as much as 2.5 percent after sharp sell-off the previous day as investors snapped up bargains although concerns lingered over Middle East unrest slowing economic growth.
"After the sell-off investors are quite uncertain about the market tread. It is likely to content between 3,400 to 3,500 ringgit a tonne," said a trader with foreign brokerage.

Argentine exchange ups soy outlook to 48.8 mln T
BUENOS AIRES, Feb 24 (Reuters) - Argentina's 2010/11 soy production is seen rising to 48.8 million tonnes, up from the previous forecast for 47.0 million tonnes, due to improved weather, the Buenos Aires Grains Exchange said on Thursday.
The exchange said the crop's prospects had improved since mid-January due to much-needed rain after the La Nina weather phenomenon created dry conditions late last year.

Indonesian palm output to slip this yr, grow slowly-IPOC
JAKARTA, Feb 25 (Reuters) - Palm oil output from top producer Indonesia will slip nearly 4 percent this year to 21 million tonnes because of heavy rains, and then grow 3 percent each year until 2015 assuming current weather patterns continue, an industry official said on Friday.
Weather forecasters predict a wet 2011 after unusually heavy rains in recent months have wreaked havoc on plantation crops in Indonesia, and lower palm supply would support the regional market  along with higher oil prices.

India's vegoil imports shrink on bigger domestic supply
NEW DELHI/KUALA LUMPUR, Feb 25 (Reuters) - India will process 12 percent more domestic oilseed crops into cooking oil this year, trimming imports of edible oil by up to 5 percent in the first such slowing in five years, easing global prices and blunting food-driven inflation.  
India, the world's top buyer of vegetable oils, appears to be following China in using cheaper oilseeds and cutting imports of Southeast Asian palm oil and Latin American soyoil to feed its population of more than a billion.