Friday, April 27, 2012

20120427 1816 FCPO EOD Daily Chart Study.

FCPO closed : 3505, changed : +5 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histogram : recovering, buyer seller battling.
Support : 3500, 3470, 3450, 3420 level.
Resistance : 3550, 3620, 3650, 3700 level.
Comment :
FCPO closed marginally higher with slower volume transacted. Soy oil price trading higher after overnight closed recorded loss while crude oil price declining lower.
Price traded range bound swing between gain and losses on mixed view on slower export concern due to weaker global economy and lower soybean crop development.
Still, daily chart reading remained suggesting a side way range bound 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.

20120427 1746 FKLI EOD Daily Chart Study.

FKLI closed : 1569.5 changed : -5 points, volume : higher.
Bollinger band reading : downside biased with possbile pullback correction.
MACD Histogram : falling lower, seller in control.
Support : 1565, 1550, 1540, 1530 level.
Resistance : 1570, 1580, 1590, 1595 level.
Comment :
FKLI closed recorded loss with better volume participation doing 1.5 points premium compare to cash market that falls 11 points lower. Overnight U.S. markets closed higher and today Asia markets ended mostly little lower while European markets trading slightly higher.
Mixed news over U.S. reported lower but higher than forecast jobless claim, increased U.S. exisiting home sales, Spain's credit rating downgraded by S&P and new Bank of Japan easing measure resulted global markets to trade in different direction while awaits U.S. GDP data tonight.
Daily technical chart reading revised to calling a downside biased market development with possible pullback correction.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.

20120427 1713 Regional Markets EOD Daily Chart Study.

 DJIA chart reading : side way range bound.
 Hang Seng chart reading : side way range bound.
KLCI chart reading :  downside biased with possible pullback correction.

20120427 1625 Global Market & Commodities Related News.

Asian shares pushed higher on firm U.S. data despite a two-notch downgrade of Spain's credit rating that capped gains, while fresh easing measures by the Bank of Japan supported Tokyo stocks. U.S. stocks rose for a third day on Thursday after upbeat housing data and stronger-than-expected results from companies, including Citrix Systems Inc , overshadowed some high-profile earnings misses.

The yen slipped after the Bank of Japan eased monetary policy, going slightly beyond market expectations in its much-awaited easing steps, while the euro was bruised after Standard & Poor's hit Spain with a two-notch credit rating downgrade.

FOREX-Yen slips after BOJ easing; Spain downgrade dents euro
TOKYO, April 27 (Reuters) - The yen quickly erased losses made after the Bank of Japan went slightly beyond market expectations in its much-awaited easing steps, as traders quickly covered short positions in a market already overwhelmingly yen short.
"I think the BOJ did pretty well this time in finding the narrow path of not disappointing the markets. It wasn't a big surprise overall, though its decision to boost ETFs may have done some tricks," said Ayako Sera, senior market economist at Mitsui Sumitomo Trust Bank.

U.S. corn rose half a percent, building on previous session's rally on tight old-crop supplies and talk of Chinese purchases, while soy gained for a fourth day in a row with further reduction in South American crop.

Asian cocoa butter ratios plunge to 4-mth low
Asian cocoa butter ratios tumbled to their lowest since December at 0.95 to 0.98 times London futures  as buying interest dried up and grinders struggled to sell their inventory, dealers said on Friday.  

Argentine exchange cuts soy, corn crop view again
One of Argentina's biggest grains exchanges cut another million tonnes each off its 2011/12 soy and corn crop forecasts on Thursday as poor yields dim expectations half-way through harvesting.

Cameroon cotton output up 11 pct in 2011-12
Cameroon's raw cotton production rose 11 percent to 180,000 tonnes during the 2011-12 season and could reach 220,000 tonnes this year, according to state firm SODECOTTON, which attributed the boost to increased cotton acreage and government subsidies.

Indonesia to subject coal to export tax -trade ministry
JAKARTA, April 27 (Reuters) - Indonesia is to subject coal to an export tax to increase state revenues, prevent exploitation, protect the environment and maintain coal reserves, the director general of foreign trade in the trade ministry said on Friday.
Indonesia has said it would apply export taxes to other minerals, creating uncertainty in the country's large mining sector, but until now it was unclear whether coal would be included.

Coal of Africa moves first production for export
JOHANNESBURG, April 25 (Reuters) - Coal of Africa , whose thermal and coking coal operations are all in South Africa, has moved its first production destined for the export market.
About 1,500 tonnes of thermal coal from its Vele Colliery in the Limpopo Province is heading by rail for Mozambique, where it will be shipped and sold to Asian markets.

Brent crude dropped to trade just above $119 a barrel  on renewed fears about the state of the debt-ravaged euro zone economies following a downgrade of Spain's credit rating.

China daily steel output above 2 mln T in mid-April - CISA data
SHANGHAI, April 26 (Reuters) - China's daily crude steel output remained above 2 million tonnes tonnes in the second 10 days of April, industry data showed on Thursday, as steelmakers sustained high output amid a seasonal rebound in demand.
Daily runs eased 1.3 percent to 2.005 million tonnes after hitting a record high of 2.031 million tonnes in the first 10 days in April, data from the China Iron & Steel Association (CISA) showed.

Iron Ore-Shanghai steel eyeing 2nd weekly loss, ore down
SINGAPORE, April 27 (Reuters) - Prices for imported iron ore cargoes in China fell for the third day in a week on Friday, reflecting thin buying interest among steel producers worried about slow domestic demand that has weighed on Shanghai rebar futures for a second week running.
Activity in the physical iron ore market was also limited ahead of a long Labour Day holiday in China, the world's biggest buyer of the steel ingredient. Chinese markets are shut on Monday and Tuesday.

Japan's copper exports to China fall 5 pct in March
TOKYO, April 26 (Reuters) - Japan's exports of refined copper to China slipped in March, customs cleared data showed on Thursday, as China's swollen stockpiles and weak demand dented appetite from the world's top consumer of the industrial metal.
Japan's exports of copper cathode to China fell 5 percent from a year earlier to 23,203 tonnes last month.

Nippon Steel posts quarterly profit, beats estimate
TOKYO, April 27 (Reuters) - Nippon Steel Corp , the world's No.4 steelmaker, reported a quarterly profit and beat its forecast for a loss after the yen retreated from a record high and recovering Japanese car production offset slower export demand.  
Japanese steelmakers, which sell more than half of their products overseas, are struggling with weaker exports because of a slowing economy in China, the world's biggest consumer of the alloy used in construction, ships and cars.

Japan March zinc exports jump as smelters resume
TOKYO, April 26 (Reuters) - Japan's March zinc exports to Asia leapt on a year on year basis after smelters resumed work after earthquake-related closures last year.
Japan's exports of refined zinc grew 2.7 times in March from a year earlier as shipments to Malaysia jumped 53 times while those to China increased 7 times, customs-cleared data showed on Thursday.

METALS-LME copper snaps 3-day rise after Spain downgrade
SHANGHAI, April 27 (Reuters) - London copper eased 0.1 percent snapping a three-day winning streak after a downgrate on Spain's credit rating revived fears about the debt-laden euro zone, keeping the market on edge and trimming investor appetite for riskier assets.
"The downgrade of Spain's credit rating along with political uncertainties over the euro zone crisis are keeping investors wary about copper today and will keep price rises capped in Shanghai, even as it plays catch up with London's overnight gains," said a Shanghai-based trader.

PRECIOUS-Gold inches down after Spain downgrade; dollar weighs
SINGAPORE, April 27 (Reuters) - Gold struggled to make headway as the downgrading of Spain's credit rating fuelled concerns about the debt-stricken euro zone, while a stronger dollar after the Bank of Japan eased policy added to the pressure.
"Europe has more near-term challenges than the U.S," said Jeremy Friesen, commodity strategist at Societe Generale in Hong Kong. "The U.S. data will probably be weaker than market expectations, but the focus will still be the uncertainty in Europe."

London copper eased 0.1 percent, snapping a three-day winning streak after a downgrate on Spain's credit rating revived fears about the debt-laden euro zone, keeping the market on edge and trimming investor appetite for riskier assets.

Gold struggled to make headway as the downgrading of Spain's credit rating fuelled concerns about the debt-stricken euro zone, while a stronger dollar after the Bank of Japan eased policy added to the pressure

Baltic sea index rises as panamax rates strong
April 26 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, rose for a 12th straight session on Thursday, driven primarily by gains in panamax rates.
"Transatlantic round voyage rates for panamaxes have more than doubled in the past month as owners sensed a strong window of opportunity in the South American grain export season and kept increasing their rate ideas," RS Platou Markets analysts said in a note.

Asia Dry Bulk-Panamax rates to rise to fresh 6-month high
SINGAPORE, April 26 (Reuters) - Rates for panamax dry bulk carriers on key Asian freight routes are expected to rise on tight vessel availability and strong demand, ship brokers said on Thursday.
"Activity in the Pacific basin remains steady and rates continued to climb," said broker firm ICAP. "The strong East Coast South America market continues to lend support to the Pacific market and Pacific round voyages are being conducted in the mid-$12,000 for the time being."

20120427 1244 Jaya Tiasa Daily Chart Study.


Jaya Tiasa Chart Reading :
Pullback correction upside biased possible testing support near middle Bollinger band level.
Crucial support near RM8.45 level.

20120427 1238 Pintaras Daily Chart Study.

Pintaras Chart Reading :
Pullback correction upside biased with possible negative MACD divergence development.
Crucial support near RM2.80 level.

20120427 1122 Global Market & Commodities Related News.

GLOBAL MARKETS-Shares inch up, Spain debt downgrade caps
TOKYO, April 27 (Reuters) - Asian shares inched up on Friday, tracking U.S. stocks which jumped overnight on strong U.S. housing data and earnings, but concerns over the health of European banks weighed on investor risk appetite after Standard & Poor's downgraded Spain's rating.
"The price action reflects strong market nervousness over the European problem, and that investors have yet to take on risk," said Junya Tanase, chief foreign exchange strategist at JPMorgan Bank in Tokyo.

COMMODITIES-US stimulus speculation lifts copper, most markets
NEW YORK, April 25 (Reuters) - Commodities ended broadly higher on Thursday, with copper one of the biggest gainers, after high claims for jobless benefits in the United States fed expectations that the Federal Reserve may approve another U.S. economic stimulus.
"Yesterday's Fed proclamation that they are prepared to take additional easing steps even in the face of slightly positive growth" is weakening the dollar, said Alexander Chepurko, foreign exchange analyst at Forex Club in New York.

Oil rises on U.S. housing data, Fed optimism
NEW YORK, April 26 (Reuters) - Crude oil futures rose on T hursday as a solid pickup in U.S. home sales added to economic optimism following the U.S. Federal Reserve's vow a day earlier that it would take further stimulus action if needed to keep the recovery going.
"This is a positive note as an improvement in economic data adds support to risk assets," said Sean McGillivray, vice president and broker at Great Pacific Wealth Management in Grants Pass, Oregon.

Refining losses hit China's PetroChina, Sinopec
HONG KONG, April 26 (Reuters) - Hefty refining losses continued to weigh on profits at Chinese state oil giants PetroChina  and Sinopec Corp  in the first three months of the year, with the latter posting a worse than expected 35 percent drop in earnings.
But the worst may be over because the Chinese government raised gasoline and diesel prices twice in the first quarter, and crude prices may have peaked for this year, some analysts say.

Argentina says YPF takeover needed to fuel economy
BUENOS AIRES, April 26 (Reuters) - Argentina must seize control of top energy company YPF from Spain's Repsol to boost production of the oil and natural gas needed to fuel economic growth, Economy Minister Hernan Lorenzino said on Thursday.
President Cristina Fernandez unveiled plans to expropriate a 51 percent stake in YPF  last week, sparking a swift reprisal by Spain on biodiesel imports and threats of trade retaliation by the European Union.

Production growth lifts Shell; Exxon falls short
April 26 (Reuters) - First-quarter earnings from the top two publicly traded oil companies showed clearly both the challenges and potential gains of growing output even a little, with Exxon Mobil Corp's  production declining and Royal Dutch Shell Plc  easily beating estimates.
Exxon's oil and natural gas production slumped 5 percent, leading to a lower net profit and pushing its shares down 1.4 percent on Thursday -- an especially big move for a $400 billion company that just increased its dividend the previous day by a better-than-expected 21 percent.

NATURAL GAS - US natgas futures reverse, end lower for May expiry
NEW YORK, April 26 (Reuters) - Front-month U.S. natural gas futures ended lower o n T hursday, as an early rally on a slightly supportive inventory report faded ahead of the May contract expiration due to moderate weather forecasts and record-high supplies.
"The (EIA) report on first glance was in line, but with the revision, we injected less that we thought. Even with that, we still have a huge surplus and the market remains well supplied," said Eric Bickel, analyst at Summit Energy in Kentucky.

Euro Coal-Ticks up due to dollar weakness
LONDON, April 26 (Reuters) - European prompt physical coal prices rose by around 50 cents on Thursday, boosted by higher oil prices and the dollar's earlier weakness but few trades were reported.
"The dark spreads (margin from generating using coal as a fuel) are healthy but nobody needs to buy any more coal and the U.S. cargoes continue to flow, there's no sign of that slowing yet," one trader said.

20120427 1011 Local & Global Economy Related News.

Malaysia: Najib spending spree risks credit downgrade
Malaysian Prime Minister Najib Razak's record spending binge, aimed at shoring up support before elections that could be called as early as next month, may risk the country's first credit-rating downgrade since the Asian financial crisis 15 years ago. Standard and Poor's "might have to think about" a potential cut of Malaysia's A- rating in a few years unless the next government enacts measures to boost revenue and reduce subsidies after the vote, Mr Takahira Ogawa, an analyst at the rating company, said. (Bloomberg)

Singapore: Production falls on drugs, electronics
Singapore's industrial production fell for the second time in three months last month as electronics and pharmaceutical manufacturers decreased output. Manufacturing fell 3.4% y-o-y after a revised 11.8% gain in February. Economists had expected a 5.8% decline. From the previous month, output climbed a seasonally adjusted 2.7%. (Bloomberg)

Thailand: Exports down in March on continued Europe weakness
Thailand‟s exports fell 6.5% y-o-y in March, the fourth decline in five months, as factories struggled to resume full production after last year's flood crisis. Shipments fell in nearly all product items affected by last year's floods, with March exports valued at USD19.9bn. In particular, shipments to Europe fell 15.3% and to Japan, 3.6%. Exports to the US meanwhile rose 5.3% and to China 1.1%. (Bloomberg)

South Korea’s GDP grew 0.9% qoq in 1Q12 (0.3% in 4Q11), the fastest pace for a year. (AFP)

Spain: Ratings cut by S&P on deficit, bank bailout concern
Spain‟s sovereign credit rating was cut to BBB+ from A by Standard & Poor‟s on concern the nation will have to provide further fiscal support to the banking sector as the economy contracts. Its short-term rating was lowered to A-2 from A-1, while the outlook on the long-term rating is negative. (Bloomberg)

Italy: Business confidence drops to lowest in two years
Italian business confidence unexpectedly fell to the lowest level in more than two years in April amid concerns that the country‟s fourth recession in a decade may deepen. The manufacturing-sentiment index dropped to 89.5 from a revised 91.1 in March. Economists had predicted a reading of 92.1. (Bloomberg)

EU: Spanish, Italian bond yields climb after confidence data
Spanish and Italian bond yields climbed in light volumes Thursday, as demand for lower-rated euro-zone government debt was curbed following a survey that showed economic confidence in Europe was dwindling. The 10-year Spanish bond yield rose by seven basis points to 5.84% while the corresponding Italian bond yield increased by two basis points to 5.65%, according to Tradeweb. The weaker backdrop could pose a challenge to an Italian bond auction on Friday for up to EUR6.25bn. (Bloomberg)

The Eurozone economic sentiment indicator fell to 92.8 in Apr (94.5 in Mar), the lowest level in over a year. Manufacturer confidence also fell to -9.0 in Apr (-7.1 in Mar), whilst services confidence plunged to -2.4 from -0.3 in Mar. Consumer confidence slipped further to -19.9 (-19.1 in Mar), whilst business sentiment slumped to -0.52 from Mar’s -0.28. (Dow Jones)

US: Cooling labor market takes a toll on confidence
More Americans than forecast filed applications for unemployment benefits last week and consumer confidence declined by the most in a year, signaling that a cooling labor market may restrain household spending. Jobless claims fell to 388,000 from a revised 389,000 the prior week that was the highest since early January while the Bloomberg Consumer Comfort Index declined to minus 35.8 from minus 31.4 the previous week. (Bloomberg)

US: Pending sales of existing homes increased 4.1% in March
Signed contracts to buy US homes rose more than forecast in March as low interest rates drew buyers back into the market. The index of pending home purchases rose 4.1% to 101.4, the highest level since April 2010, after a 0.4% gain in February that was revised from a previously estimated 0.5% drop, the National Association of Realtors reported. The median forecast of 43 economists surveyed by Bloomberg News called for a 1% rise in the measure, which tracks contracts on previously owned homes. (Bloomberg)

US stocks rise after home sales increase
US stocks rose for a third day as pending home sales increased more than forecast and technology companies rallied on better-than-estimated earnings. Metals led commodities higher, while 10-year Treasury yields approached a two-month low. The Dow rose 113.90 to close at 13,204.62 while the S&P 500 Index closed up 0.7% to 1,399.98. The S&P 500 reversed early losses as the National Association of Realtors reported that pending home purchases rose 4.1% to the highest level since April 2010, tempering concern about the economy after an earlier government report showed 388,000 Americans filed jobless claims last week, 13,000 more than the median economist estimate. (Bloomberg)

20120427 1010 Malaysia Corporate Related News.

Ananda pares down stake in Bumi Armada
Tan Sri Ananda Krishnan and his bumiputera partners will sell roughly 15% of Bumi Armada in private placements to local land foreign institutional investors in a deal that will raise close to RM2bn and cut Ananda and his partners‟ stake to 55%. The shares would be placed out at a discount of between 3%-6% of the RM4.22 current price. The planned placement represents the latest in a series of asset sales involving Ananda‟s companies. Last month, Anada sold his power generation business to 1MDB for RM8.5bn. Sources also said that 1MDB is in talks to buy Ananda‟s satellite operator Measat Global.(Financial Daily)

Felda Global to offer 2.19bn shares in IPO
Felda Global Ventures Holdings (FGVH) will see up to 2.19bn shares being offered under its IPO scheduled for end-May or early June. The IPO comprises an offer for sale by Felda of up to 1.21bn shares and a public issue of up to 980m shares. FGVH is in the upstream and downstream palm oil business and other agribusinesses encompassing oil palm and rubber plantation products, soybean and canola products, oleochemical and sugar products. 49%-owned associate Felda Holdings, meanwhile, is the largest CPO producer in the world. FGVH also has MSM under its stable. (StarBiz)


Market observers said there will still be strong investor interest in the soon-to-be-listed Felda Global Ventures Holdings Bhd (FGVH) despite Koperasi Permodalan Felda (KPF) not participating as a major shareholder in the listed entity. The sources added the relatively bullish outlook for commodities market would stand FGVH in a good stead when the politically-linked organisation made its debut on the stock exchange. (StarBiz)

Felda has appointed seven financial institutions to provide loans to settlers who want to purchase shares in Felda Global Ventures Holding (FGVH), up to a maximum of RM100,000. Felda's chairman Tan Sri Mohd Isa Abdul Samad said officers from the financial institutions would distribute the blue forms (share applications) to all Felda settlers for the purchase of shares. (BT)


KLIA passenger traffic hit by MAS, AirAsia route cuts
KLIA underperformed regional airports in terms of passenger movement in the first quarter of 2012, due to route cuts by Malaysia Airlines and AirAsia. KLIA saw passenger movement grow by 6.9% for the quarter under review compared with Changi‟s 12.8% growth and Jakarta‟s 18.4% jump. Last year, MAS announced route cuts to at least 10 international destinations as part of efforts to rationalise its network and return to profitability, (BT)

Big spin-offs from Pengerang O&G project
The RM5bn Pengerang Independent Deepwater Petroleum Terminal (PIDPT) project, which will be completed about four years from now, is targeted to contribute RM19.8bn in gross national income and create 14,100 jobs by 2020. It will complement Petronas' Refinery and Petrochemicals Integrated Development (Rapid) complex with its crude oil refining capacity. The project will start next year and is scheduled for completion in 2016. The Pengerang terminal will be the second largest of its kind in Asia, with close to 1.3 million cubic m in capacity. (BT)


Carlsberg Brewery Malaysia Bhd will introduce a 3% general increase in price effective May 1, 2012. “The adjustment is not a dramatic one and is in line with inflation levels,” said its managing director, Soren Ravn after the AGM. Ravn said the recent introduction of premium labels Asahi and Kronenbourg currently hold 16% to 17% market share in the premium segment while good growth is expected to continue. Carlsberg’s premium brands currently contribute just under 10% to the group’s total revenue of RM1.5 billion for FY11. A 100% profit distribution has also been declared, at a total gross dividend of 72.5sen, he said. (Financial Daily)

DRB-Hicom Bhd's stake in Proton Holdings Bhd reached 98.66% or 541.8m shares based on the valid acceptances of 48.59% or 266.88 million shares as at 5pm on Thursday. DRB-Hicom said since it had acquired not less than 90% of the offer shares, it would compulsory acquire the remaining shares. It said that it would, within two months, proceed to exercise its rights to compulsorily acquire the remaining offer shares. The offer will remain open until 5pm on May 9. Proton's securities will be suspended with effect from 9am on May 4. (Starbiz)

Government-linked private equity fund management company Ekuiti Nasional Bhd (Ekuinas) recorded a total portfolio gain of RM165.7m in 2011 gross annualised internal rate of return (IRR) of 32.3%and a net IRR of 20.6% per year. This exceeded Ekuinas’ long-term minimum net IRR target of 12% and aspirational target of 20%, said Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop. Announcing Ekuinas’ second-year financial performance yesterday, he noted that Ekuinas has succeeded in increasing Bumiputera equity value by RM806.5m or 1.4x its invested capital of RM565.9m. Nor Mohamed said for 2011, Ekuinas had received an additional allocation of RM600m from the government, bringing the total amount received by the end of last year to RM1.1bn. Ekuinas has committed under its direct and outsourcing programme an additional five investments amounting to RM420.7m ” he noted. These included Cosmo Restaurants Sdn Bhd which is the franchisee of Burger King; Lyndarahim Ventures Sdn Bhd, the owner of San Francisco Coffee; Revenue Valley Sdn Bhd which operates Manhattan Fish Market, Malaysia’s Tony Roma’s and Popeyes; Cosmopoint Group which owns and operates KL Metropolitan University College; and Cosmopoint International College of Technology. (BT)

The proposed merger between OSK Investment Bank and RHB Capital may take up to six months to be finalised once it receives the go-ahead from Bank Negara, OSK CEO U Chen Hock said. RHBCap group MD Kellee Kam was reported to have said that it hopes to conclude its takeover of OSK in the third quarter after the bank's shareholders meeting earlier this month. (BT)


CIMB: Eyes double-digit growth in deposits
CIMB Bank Bhd is confident of registering a double-digit growth in its retail deposit business in Malaysia this year from the RM53bn recorded last year. Head of Retail Financial Services, Peter England said last year, the bank achieved a growth of 24%, up from its initial expectation of 17%. He said the bank is confident of registering the double-digit growth. However, he cannot promise that it will achieve the same figure as last year, as it is hard to grow consistently due to a growing customer base. He also said that there were more competition in the deposit segment from local banks in the first quarter. England said in terms of market share in the retail deposit business, the bank has a 11% stake in the segment and is placed at number four. (Business Times)

PT Bank CIMB Niaga reported a 29% rise in 1Q net profit on higher lending in all its business segments. Net profit came in at 937bn rupiah (RM311.6m) compared with 728bn rupiah (RM342m) in the same period a year ago. The higher net profit resulted from a 30% increase in operating income, to 3.17tr rupiah (RM1bn). Loans in the commercial, corporate and retail segments grew by 23%, 17% and 11%, respectively. As of 31 Mar, total loans grew by 18% to 129.8tr rupiah (RM43.1bn). The bank's asset quality continued to improve, with its gross NPL ratio coming down to 2.69% from 2.86% a year earlier. (BT)


Nestle (Malaysia) Bhd expects 2012 to be a very challenging year, saying many uncertainties could dampen global economic growth and further drive volatility in commodity costs. However, its managing director Peter R. Vogt said the group does not plan to increase the prices of Nestle products but to maintain prices as much as possible. "Nestle was looking at expanding its branding, productivity and cost efficiency to overcome commodity price increases, rather than increase the prices of its products," he said. He also said volatile commodity prices are expected to continue in 2012 and the group will remain vigilant and take all necessary measures to mitigate and soften any impact on the business. "The group will continue to capitalise on product innovation as well as promoting nutritional diets and healthy lifestyles in line with the government's goal of creating a healthy and productive society," Vogt said. Nestle will remain focused on growing both its top and bottom lines in 2012 and continue to leverage its Nestle Continuous Excellence (NCE) savings initiatives. "The group will continue to intensify its marketing investment in line with our objective of being the leading food, nutrition, health and wellness brand, become an industry benchmark for financial performance as well as maintain our stakeholders' trust," he added. (Bernama)

Nestle (Malaysia) Bhd is expecting a big jump in capex for 2013-14 as it expands its Shah Alam manufacturing operations. Its managing director, Peter R. Vogt said the details of the capex were being worked out. But for 2012, he said the capex would be RM180m, where a large part would be to upgrade its plants, which were operating at 80%-90% capacity. Nestle bought a piece of land in Shah Alam last year, which is adjacent to its current factory. (Starbiz)

Mah Sing Group Bhd and its potential Thailand-based joint cooperation partner Central Pattana have decided not pursue a memorandum of understanding (MoU) to study the potential initial investment of developing and managing a shopping mall Icon City through a joint venture and/or partnership. (StarBiz)

Sunway Real Estate Investment Trust’s subsidiary, SunREIT Capital Bhd, has issued RM850m in nominal value of commercial papers (CPs), which has been accorded a short-term rating of P1(s) by RAM Rating Services Bhd. The three-month RM200m CPs will be under a competitive tender, while the one-month RM300m CPs and three-month RM350m will be on private placement. All have a maturity date of July 25. (BT)


AirAsia: Carries 4.82m passengers in 1Q FY2012
AirAsia said it carried 4.82m passengers in 1Q FY2012, up 12% from 4.32m in the previous corresponding period. It recorded a strong load factor of 80% for the period, the same as in Q1 FY11, on the back of a 12% increase in capacity. It said the strong traffic was due to spillover from a strong fourth quarter of the previous financial year especially with the introduction of new routes from Kuala Lumpur (KL) to Danang in Dec 2011. (Bernama)

AirAsia has dismissed allegations that it has opted to stay at the LCCT and that it will not move to the new KLIA2. “At the end of the day, if we are not going to move to KLIA2, we do not have alternative airports”. MAHB chairman Tan Sri Dr Aris Othman said it was up to the airline to decide whether to operate from KLIA2 or not. He added that the new LCCT was not only for AirAsia but also for other low-cost carriers. The KLIA2 is on track to be opened by April next year, with 50% of the development completed to date. (Bernama)


Malaysia Airports (MAHB) is aiming to keep its AAA rating from RAM Rating Services once it completes the full drawdown of its Islamic debt issuance facility latest by the middle of next year, said its CFO Faizal Mansor. “Right now our debt to equity ratio is at 65%. Our bond covenant allows us to go up to 125%. But for us to maintain a AAA rating, it should be below 100%. The complete drawdown of the sukuk facility is expected to increase its debt to equity ratio to about 90%.” (Star Biz)


MAHB: MAS routes cut affects passenger numbers at local airports
Malaysia Airport Holdings (MAHB) said the decision by Malaysia Airlines (MAS) to cut some of its long-haul routes has impacted the number of passenger using local airports. Its CFO Faizal Mansor said without the cut, the number of passengers using local airports, could have reached double-digit growth in the first quarter ended Mar 31, 2012. He said in the quarter, the number of passenger using local airports grew by 6.5% to 16m people from the 15.1m recorded in the same period last year. He said that the higher number of passengers was contributed by an increase in airline operators using local airports as well as the usage of bigger aircraft by them. (Bernama)


JT International Bhd (JTI Malaysia) together with the tobacco industry will continue to work closely with the government to enforce pragmatic and multi-pronged solutions to fight the illegal cigarette trade. JTI Malaysia chairman Datuk Seri Mohd Nadzmi Salleh said the illegal cigarette trade took away the shares from the legal cigarette business last year, which has affected the company's performance. "The environment is very competitive. I think that is one of the biggest contributors why we see a slight decline in our turnover over last year," he said. (Bernama)

Bursa Malaysia has publicly reprimanded Axis Incorporation Bhd and has fined three of its directors a total of RM450,000 for breaches of listing requirements. The stock exchange has also reprimanded Ngui Kee Corp (M) Bhd and three of directors, and imposed a RM100,000 fine on its chief executive officer. (BT)

TA Global Bhd has acquired the Movenpick Karon Beach Resort in Phuket, Thailand for US$90.3m (RM275.4m) from Kingdom Hotel Investments. TA Global said the purchase would be paid with a mix of internally generated funds and borrowings.The company had acquired China's Swisstel Kunshan, also from Kingdom Hotel, for US$60.7m last year. (Financial Daily)

Pakistan, Asia’s third-biggest cooking-oil buyer, may increase imports by as much as 27% this quarter as traders stockpile to meet demand during the Muslim fasting month of Ramadan, a refiners group said. Purchases may climb to 500,000 metric tons in the April-June period from 394,996 tons a year earlier, said Rasheed Janmohammad, vice chairman of the Pakistan Edible Oil Refiners Association. Rising demand from Pakistan may help palm oil prices in Malaysia extend a 10% gain this year as a drought in South America threatens soybean output. Import demand during Ramadan may also trim stockpiles in Malaysia, the world’s second-biggest producer. (Bloomberg)

DKSH Holdings (Malaysia) Bhd will expand its collaboration with German-based Henkel to allow DKSH to sell, distribute and provide logistics services of the latter's goods in Malaysia. This collaboration expands DKSH's cooperation with HEnkel in Thailand, Hong Kong, and Vietnam. In Malaysia, DKSH will now provide for the support of Henkel's brand range of Schwarzkopf Extra Care, Freshlight, Palette, and got2b. (Starbiz)


Property: Committed investments into Iskandar Malaysia reaches RM87.56bn
The cumulative committed investments into Iskandar Malaysia reached RM87.56bn in various sectors from 2006 until March 2012, with 43% of it having already been realised. The chief executive of the Iskandar Regional Development Authority (IRDA), Ismail Ibrahim said, as of March this year alone, Iskandar Malaysia had recorded total cumulative committed investments of RM2.78bn. He said there was a need to target investors from the Asia Pacific and focus on strengthening the Iskandar Malaysia-Singapore partnership in identified growth sectors that could bring mutual benefits. He added that further infrastructure improvement in connectivity between Johor Baharu and Singapore will also help create a mutually beneficial economic unit. (Bernama)


Axiata: Celcom withdraws appeal against RM590m award
Celcom Axiata Bhd has withdrawn its appeal to the Court of Appeal against a decision involving the award of US$193.49m (RM590m) to DeTeAsia Holdings GmbH in a dispute during its privatisation in 2003. In a filing with Bursa Malaysia, Axiata Group said Thursday that Celcom withdrew its appeal with no order as to costs. To recap, Celcom Axiata had appealed to the appellate court over a High Court decision which had earlier set aside its originating summon against DeTeAsia’s bid to enforce the international court decision. In 2005, the International Court of Arbitration of the International Chamber of Commerce ordered Celcom to pay US$193.49m in principal sum and interest to DeTeAsia for breach of an agreement between Celcom and DeTeAsia. (StarBiz)

20120427 1008 Global Market Related News.

Most Asian Stocks Rise on U.S. Housing Growth, Earnings (Source: Bloomberg)
Most Asian stocks rose as companies including Samsung Electronics Co. posted earnings that beat estimates and signs that the U.S. housing market is stabilizing overshadowed Standard & Poor’s downgrade of Spain’s sovereign- credit rating. James Hardie Industries SE, a building-materials supplier that counts the U.S. as its biggest market, added 0.4 percent in Sydney. Samsung Electronics, Asia’s largest consumer electronics maker, gained 2.3 percent in Seoul. Nintendo Co. sank 4.9 percent in Tokyo after the world’s largest maker of video-game machines forecast earnings this fiscal year that missed analysts’ estimates. “We still believe that there will be good growth in the U.S., with GDP picking up in the second half of the year,” said Daphne Roth, the head of Asian-equity research at ABN Amro Private Banking in Singapore, which manages about $217 billion for clients. “The global economic growth picture is quite good. We’ve been getting a lot of positive surprises in the earnings reports.”

Japan, Australia Stock Futures Rise on U.S. Housing Data (Source: Bloomberg)
Japanese stocks rose for a third day after better-than-estimated U.S. housing data boosted the outlook for Asian exporters and on speculation the Bank of Japan will announce fresh stimulus after a meeting today. Nissan Motor Co. (7201), a carmaker that gets a third of its sales from North America, climbed 1.7 percent. Kyocera Corp. jumped 2.9 percent after the electronics manufacturer said profit would rise on growing sales. Nintendo Co., the world’s largest maker of gaming consoles, sank the most in seven months after forecasting net income that lagged analysts’ expectations. “We still believe that there will be good growth in the U.S., with GDP picking up in the second half of the year,” said Daphne Roth, the head of Asian-equity research at ABN Amro Private Banking in Singapore, which manages about $217 billion for clients. “The global economic growth picture is quite good. We’ve been getting a lot of positive surprises in earnings reports.”
The Nikkei 225 Stock Average (NKY) gained 0.2 percent to 9,580.21 as of 10:03 a.m. in Tokyo, heading for a weekly rise of 0.2 percent. Volume was almost 25 percent below the 30-day average ahead of the Bank of Japan’s release of economic growth and inflation forecasts. The broader Topix Index rose 0.1 percent to 810.59.

European Stocks Little Changed as Autos Offset Jobless (Source: Bloomberg)
European stocks were little changed after a rally in automakers helped offset a drop in euro-area confidence and a report that showed more Americans than forecast filed for jobless benefits last week. Volkswagen AG (VOW) rallied 8.7 percent after reporting a jump in operating profit. Porsche SE climbed 7.4 percent. Rhoen Klinikum AG (RHK) surged 44 percent after receiving a 3.1 billion euros ($4.1 billion) takeover offer. Deutsche Bank AG (DBK) and Banco Santander SA (SAN) paced financial shares lower. The Stoxx Europe 600 Index climbed 0.1 percent to 257.2 at the close in London, after swinging between gains and losses today. The gauge has advanced 5.2 percent this year as the European Central Bank disbursed more than 1 trillion euros to the region’s lenders to spur credit and boost the economy.
“After the euphoria of the ECB capital injection, we’ve come back to reality,” said Matthieu Giuliani, who helps manage $4 billion at Paris-based Banque Palatine SA. “Economic statistics will continue to be difficult considering countries’ deficits and the fact that they aren’t attacking the problem. Growth in the macroeconomy won’t be found soon.”

U.K. Stocks Advance on Earnings; Unilever, Shell Climb (Source: Bloomberg)
U.K. stocks advanced for a third day, after swinging between gains and losses, as Unilever Plc and Royal Dutch Shell Group Plc posted financial results that beat forecasts, outweighing worse-than-expected economic reports in the U.S. and Europe. Unilever, the world’s second-biggest consumer goods company, and Shell, Europe’s largest oil producer, climbed more than 2.5 percent each. AstraZeneca (AZN) Plc fell the most since 2010 after the drugmaker cut its profit forecast. Admiral Group Plc (ADM) dropped after reporting a slowdown in sales. The FTSE 100 (UKX) Index rose 29.83 points, or 0.5 percent, to 5,748.72 in London after fluctuating between gains and losses at least 12 times. The measure has dropped 3.6 percent from its 2012 high in March as concern resurfaced that some countries in Europe will struggle to reduce deficits and service their debt. The FTSE All-Share Index added 0.5 percent today, while Ireland’s ISEQ Index slipped 0.4 percent.
“Indecision reigned today where a volatile session indicated just how investors are still unsure as to whether the good corporate earnings season is enough to discount the overriding storm clouds that still shroud the macro picture,” said Angus Campbell, head of market analysis at Capital Spreads in London.

U.S. Stocks Rise on Home Sales Increase; Treasuries Gain (Source: Bloomberg)
U.S. stocks rose for a third day as pending home sales increased more than forecast and technology companies rallied on better-than-estimated earnings. Metals led commodities higher, while 10-year Treasury yields approached a two-month low. The Standard & Poor’s 500 Index (MXEF) closed up 0.7 percent to 1,399.98, capping its best three-day rally since February. (SPX) Futures on the benchmark index slid 0.4 percent at 5:32 p.m. in New York after S&P cut Spain’s sovereign credit rating. The Stoxx Europe 600 Index rose 0.1 percent, reversing a drop of 0.7 percent. Ten-year note yields lost four basis points to 1.94 percent, gold futures increased 1.1 percent and the dollar weakened versus 11 of 16 major peers amid bets the Federal Reserve won’t hesitate in providing more stimulus if the economy weakens. Oil closed at a three-week high.
The S&P 500 reversed early losses as the National Association of Realtors reported that pending home purchases rose 4.1 percent to the highest level since April 2010, tempering concern about the economy after an earlier government report showed jobless claims topped estimates last week. Citrix Systems Inc. and Xilinx Inc. (XLNX) led technology shares higher after posting earnings that topped estimates by at least 16 percent. “We’re more confident,” Andrew Milligan, who helps oversee about $240.7 billion as the Edinburgh-based head of global strategy at Standard Life Investments Ltd., said in a telephone interview. “The market got into this earnings season a little too pessimistic. The economy has surprised a little more positively. The underlying concept of an economy moving forward is pretty much accepted by people.”

Emerging-Market Stocks Rise as U.S. Outlook Boosts Assets (Source: Bloomberg)
Emerging-market stocks had their biggest advance in two weeks as Brazil gained on increased optimism about Vale SA (VALE5)’s performance.  Vale SA, the world’s second-largest mining company, jumped 1.7 percent in Sao Paulo after saying it will meet its sales target for this year. Brazil’s Bovespa added 0.7 percent. The MSCI Emerging Markets Index (MXEF) advanced 0.4 percent to 1,015.94 in New York. Fenerbahce Sportif Hizmetler Sanayi & Ticaret (FENER) AS rose to its highest since August, lifting Turkey’s stock gauge by 1.2 percent. U.S. data showed pending home sales increased more than forecast in March as low interest rates drew more buyers into the market. The index of pending home purchases rose 4.1 percent, compared with the 1 percent median forecast of 43 economists surveyed by Bloomberg.
Vale’s production and sales “rebounded in March and should continue strong in the second quarter,” Bruno Piagentini, an equity analyst at Coinvalores Corretora de Valores, said. “The market realized the drop in sales and the rise in costs in the first quarter was temporary. Vale is returning to the company that we’re familiar with.”

S&P 500 Caps Biggest Three-Day Advance Since February (Source: Bloomberg)
U.S. stocks gained, giving the Standard & Poor’s 500 Index its biggest three-day advance since February, after better-than-estimated housing data overshadowed disappointing earnings at United Parcel Service Inc. A measure of homebuilders in S&P indexes rose 4.8 percent as PulteGroup Inc. rallied 10 percent amid a narrower loss. Chevron Corp. (CVX) advanced 2.3 percent as the energy company lifted its dividend. Amazon.com Inc. (AMZN), the largest Internet retailer, surged 12 percent at 4:57 p.m. New York time as revenue beat estimates. UPS (UPS), the biggest package-delivery company that is considered a proxy for the economy, retreated 1.8 percent. The S&P 500 increased 0.7 percent to 1,399.98 at 4 p.m. New York time. It has advanced 2.4 percent in three days. The Dow Jones Industrial Average climbed 113.90 points, or 0.9 percent, to 13,204.62 today. About 6.7 billion shares changed hands on U.S. exchanges, almost in line with the three-month average.
“Things are better,” said Michelle Gibley, director of international research at San Francisco-based Charles Schwab Corp. Her firm has $1.83 trillion in client assets. “We did get several months of better-than-expected economic data. The earnings season has been pretty good.”

FOREX-Dollar near 3-week low as it falls prey to dovish Fed
TOKYO, April 26 (Reuters) - The U.S. dollar floundered at three-week lows against a basket of major currencies on Thursday, after the Federal Reserve did little to alter the perception that it remained deeply committed to a dovish policy stance.
"Despite its projections that GDP growth will pick up, the FOMC expects unemployment to remain well above target by the end of 2014. This means that there is scope for further monetary easing down the road, especially if the recovery falters," said Philip Marey, strategist at Rabobank.

Euro Falls as S&P Spain Rating Cut Boosts Europe Concern (Source: Bloomberg)
The euro fell, extending a monthly loss against the dollar and yen, after Standard & Poor’s cut Spain’s sovereign debt rating, adding to concern the region’s financial woes are spreading. S&P downgraded Spain’s long-term credit rating two levels to BBB+ yesterday from A, saying the outlook is negative as the country’s recession undermines efforts to cut the budget deficit. The yen rose against 10 of its 16 major counterparts before a meeting today where the Bank of Japan (8301) is expected to expand stimulus measures to combat deflation. The Australian dollar halted a two-day gain as S&P 500 Index futures declined, sapping demand for higher-yielding assets. “It does look as if the Spanish crisis is set to get worse before it gets better,” said Mike Jones, a currency strategist at Bank of New Zealand in Wellington. “The knee-jerk reaction from the euro to the downgrade has been to the downside. It’s also taken some of the heat out of investors’ risk appetite.”
The euro fell 0.2 percent to $1.3188 at 8:51 a.m. in Tokyo from the close in New York yesterday, poised for a 1 percent loss this month. The common currency slid 0.1 percent to 106.92 yen, having weakened 2.2 percent since March 31. The yen was at 81.07 per dollar from 80.99, after climbing 0.4 percent yesterday.

Cooling Job Market Takes Toll on U.S. Confidence: Economy (Source: Bloomberg)
More Americans than forecast filed applications for unemployment benefits last week and consumer confidence declined by the most in a year, signaling that a cooling labor market may restrain household spending. Jobless claims fell to 388,000 from a revised 389,000 the prior week that was the highest since early January, Labor Department figures showed today in Washington. The Bloomberg Consumer Comfort Index declined to minus 35.8 from minus 31.4 the previous week. “There has been some slowdown in the labor market,” said Yelena Shulyatyeva, a U.S. economist at BNP Paribas in New York, who correctly projected the level of jobless claims. “That makes consumers feel less confident, and makes them more cautious about their spending. We could see some weakness in April payrolls.”
Fewer firings are needed to lay the groundwork for more hiring and support consumer demand, which makes up 70 percent of the economy. Another report today showed that signed contracts to buy homes rose more than forecast in March, more evidence of a stabilizing housing market that may boost confidence.

Pending Sales of U.S. Existing Homes Increased 4.1% in March (Source: Bloomberg)
Signed contracts to buy U.S. homes rose more than forecast in March as low interest rates drew buyers back into the market. The index of pending home purchases rose 4.1 percent to 101.4, the highest level since April 2010, after a 0.4 percent gain in February that was revised from a previously estimated 0.5 percent drop, the National Association of Realtors reported today in Washington. The median forecast of 43 economists surveyed by Bloomberg News called for a 1 percent rise in the measure, which tracks contracts on previously owned homes. An improved labor market and mortgage rates near historic lows are helping to stabilize housing. At the same time, the industry remains the economy’s weakest link, depressed by the threat of more foreclosures, stricter lending standards, and lower property values. “It’s good news,” said Sean Incremona, senior economist at 4Cast Inc. in New York. “It does suggest that improvement in the housing market is continuing.”

Manufacturing Contributed Less to U.S. Growth Last Year (Source: Bloomberg)
Manufacturing added less to U.S. economic growth last year than in 2010, indicating a pickup in the expansion depends more on bigger gains in the services industry. Factory production accounted for 0.5 percentage point of the 1.7 percent increase in gross domestic product in 2011, the Commerce Department said today in Washington. A year earlier, manufacturing added 1.2 percentage points to economic growth of 3 percent. “We definitely need the recovery to broaden,” said Ryan Sweet, a senior economist at Moody’s Analytics Inc. in West Chester, Pennsylvania. “There are signs that manufacturing is starting to slow. We’re going to see manufacturing contribute less to growth this quarter.”
Makers of durable goods, such as automobiles, were still one of the biggest contributors to the expansion last year, adding 0.49 percentage point after 0.96 percentage point in 2010. Durable-goods manufacturing increased 7.9 percent in 2011 after a 17 percent jump the previous year. Fifteen of 22 industry groups added to growth, including professional, scientific and information services.

Consumer Comfort in U.S. Falls by the Most in More Than a Year (Source: Bloomberg)
Consumer confidence in the U.S. dropped last week by the most in more than a year as perceptions of personal finances and the buying climate dimmed. The Bloomberg Consumer Comfort Index fell to minus 35.8 in the period to April 22 from minus 31.4 the previous week, the biggest decline since March 2011. A gauge of the buying climate decreased to a two-month low, and a measure of household financial wherewithal fell by the most since September. Payrolls grew in March by the least in five months, raising concern that growth is short of the pace needed to trim an unemployment rate hovering above 8 percent. Bigger advances in jobs and incomes would provide a cushion against elevated fuel costs and allow households to accelerate spending, which accounts for about 70 percent of the economy.
“It is going to be difficult to generate large improvements in sentiment unless the economy begins to pick up,” said Joseph Brusuelas, a senior economist at Bloomberg LP in New York. “Jobs are growing, but not fast enough. There’s a risk the pace of consumption will slow this quarter.”

Bernanke Takes On Krugman’s Criticism Ignoring Own Advice (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke took on Nobel prize-winning economist Paul Krugman yesterday and called his advice to reduce unemployment by boosting inflation “reckless.” “The question is, does it make sense to actively seek a higher inflation rate in order to achieve” a slightly faster reduction in the unemployment rate, Bernanke said yesterday to reporters after a Federal Open Market Committee meeting. “The view of the committee is that that would be very reckless.” Krugman, whom Bernanke hired at Princeton University in 2000 when he was chairman of the economics department, said in a New York Times Magazine article that the Fed should raise its 2 percent inflation target to cut unemployment. Such a policy shift would align with Bernanke’s comment in 2000 that the Bank of Japan (8301) should pursue faster inflation to escape deflation, he said. Japan’s consumer prices fell 0.2 percent that year.
“While the Fed went to great lengths to rescue the financial system, it has done far less to rescue workers,” Krugman wrote. “Higher expected inflation would aid an economy” because it would persuade investors and businesses “that sitting on cash is a bad idea,” Krugman said.

Treasuries Set for Weekly Advance on Spain’s Rating Cut (Source: Bloomberg)
Treasuries were set to complete a six-week gain, the longest in 10 months, as Spain’s rating downgrade by Standard & Poor’s renewed concern Europe’s debt crisis is deepening, increasing demand for safer assets. Yields on two-year U.S. notes touched the lowest level since February before Spain auctions bonds next week. The Federal Reserve will sell today as much as $8.75 billion of Treasures maturing in June 2014 to April 2015 as part of its program known as Operation Twist. “Europe’s debt crisis will probably enter a second round,” said Akira Takei, head of the international fixed- income department at Mizuho Asset Management Co. in Tokyo, which oversees about $41 billion. “There is a move toward risk aversion, resulting in the buying of Treasuries.”
Yields on benchmark 10-year notes lost one basis point, or 0.01 percentage point, to 1.93 percent at 9:40 a.m. Tokyo time, according to Bloomberg Bond Trader prices. The 2 percent note maturing in February 2022 added 3/32, or 94 cents per $1,000 face value, to 100 5/8. Ten-year rates have fallen 3 1/2 basis points since April 20 and have declined for six consecutive weeks, the longest drop since June.

Gross Cuts Treasuries, Raises Mortgages in Fed Buy Bet (Source: Bloomberg)
Pacific Investment Management Co.’s Bill Gross said that while more monetary stimulus isn’t likely at the moment, additional quantitative easing remains an option for the Federal Reserve if employment growth is sluggish. “The chairman has not ruled it out,” Gross, who runs the world’s biggest bond fund, said during a Bloomberg Television “Street Smart” interview with Trish Regan. “If we see some weak employment reports over the next few months, then QE3 is back on.” The central bank remains “prepared to do more as needed,” Fed Chairman Ben S. Bernanke said yesterday at a press conference following a meeting of the Federal Open Market Committee in Washington, where policy makers reiterated their pledge to keep borrowing rates at record lows through 2014.
Yields on benchmark 10-year Treasury notes are likely to remain around 2 percent through the end of the year with the Fed and other central banks keeping interest rates at artificially low levels, Gross said. Pimco favors mortgage securities over Treasuries because of the additional yield they offer over government debt in that environment, he said.

China Seeks Boost From Low-Income Housing as Real Estate Slows (Source: Bloomberg)
The Beijing Star Brand Building Materials West Factory has been demolished, and in its place is a construction pit crawling with dump trucks as cranes tower above. This is the future home of the Taiheyuan Affordable Housing Project, which will have grocery stores, restaurants, and 2,400 apartments for factory hands and other low-income residents. As growth slows and real estate values slump, Chinese officials are counting on cheap housing to help prop up the economy, Bloomberg Businessweek reports in its April 30 edition. The Taiheyuan project is just a tiny piece of a vast national effort to build subsidized housing for the urban poor. Five million affordable apartments are to be built this year, with a goal of reaching 36 million units by the end of 2015.
“We will work speedily to improve the system for constructing, allocating” and managing low-income housing, Premier Wen Jiabao said in a speech on March 5. Leaders in Beijing, though, may encounter stiff opposition at the local level as cities and towns balk at footing the bill and seek more profitable investments for their money.

Japan Consumer Prices Rise as BOJ Considers Stimulus Move (Source: Bloomberg)
Japan’s consumer prices rose in March, according to a report released as the central bank decides today on monetary policy. Prices excluding fresh food increased 0.2 percent from a year earlier, the statistics bureau said today in Tokyo. The median estimate in a Bloomberg News survey of 31 economists was for a 0.1 percent gain. The Bank of Japan’s inflation forecast, also due today, may show the 1 percent goal adopted in February remains elusive. Economists unanimously forecast the bank will add to stimulus as lawmakers press for aggressive steps to spur growth and shake off more than a decade of deflation. “Additional easing at today’s meeting is almost a done deal,” Yoshimasa Maruyama, chief economist at Itochu Corp. (8001) in Tokyo, said before the report.
Shirakawa aims to contain expectations for monetary action in the face of pressure from lawmakers in the ruling Democratic Party of Japan and opposition Liberal Democratic Party. In a speech in the U.S. earlier this month, he said that central banks “cannot reasonably deliver solutions to structural issues” and the key challenge for Japan is rapidly changing demographics.

South Korea’s Current-Account Surplus Widens in March (Source: Bloomberg)
South Korea’s current-account surplus widened in March to a four-month high as overseas shipments of cars, electronics and oil products rose while the European debt crisis weighed on global demand. The surplus was $3 billion, compared with a revised surplus of $557 million in February, the Bank of Korea said in a statement in Seoul today. The current account is the broadest measure of trade, tracking goods, services and investment income. Asia’s fourth-largest economy, which expanded at the fastest pace in a year in the first quarter, faces downside risks from the European debt crisis and high oil prices, the central bank said this month. It left borrowing costs unchanged for a 10th straight month on April 13 as it forecast a “moderate recovery” in domestic demand.
“We’re passing a bottom but global demand will likely remain weak, which bodes ill for exporters,” Yoon Yeo Sam, a fixed-income analyst at Daewoo Securities Co. in Seoul, said before the release. “With moderate growth and persistent inflation pressures, policy makers seem to have limited room for moving interest rates in either direction.”

World Bank Assesses Myanmar’s Debt as Re-engages Nation (Source: Bloomberg)
The World Bank is helping assess Myanmar’s debt level as it rekindles working relations with the country 25 years after stopping loans, an official at the lender said. The Washington-based World Bank will open an office in Myanmar in June, Pamela Cox, the bank’s vice president for East Asia, told reporters today. The lender, along with the International Monetary Fund, is gathering data to analyze the nation’s debt sustainability, she said. “This is to see how much debt stress this country is going to be under once it normalizes relations and how much debt should be forgiven,” said Cox, who will travel to the country in June to meet with authorities. “We’re not at the stage of loans yet.”
The European Union and nations including the U.S. and Australia have said they will ease sanctions against Myanmar, where a new government took power in March 2011 and initiated steps to liberalize after five decades of military rule. Japan on April 22 announced it would forgive 303.5 billion yen ($3.8 billion) in loans and interest and roll over 198.9 billion yen of debt with a new loan.

Spain Cut by S&P for 2nd Time This Year on Banks, Economy (Source: Bloomberg)
Concerns that Spain will have to provide further fiscal support to the banking sector as the economy contracts prompted Standard & Poor’s to cut the nation’s sovereign credit rating to BBB+ from A. Spain’s short-term rating was lowered to A-2 from A-1, while the outlook on the long-term rating is negative, New York- based S&P said in a statement yesterday. The nation’s 10-year borrowing costs have climbed about 70 basis points this year as Prime Minister Mariano Rajoy struggles to convince investors he can control public finances amid soaring unemployment and a contracting economy. Banks threaten to disrupt the premier’s efforts as bad loans reach the highest levels in almost two decades.
“Spain’s budget trajectory will likely deteriorate against a background of economic contraction,” S&P wrote in the statement yesterday. “At the same time, we see an increasing likelihood that Spain’s government will need to provide further fiscal support to the banking sector. As a consequence, we believe there are heightened risks that Spain’s net general govern debt could rise further.”

France Unemployment Near 10% Fueled by Laws Election Omits: Jobs (Source: Bloomberg)
Tired of waits to fill orders and lack of control over his Asian factories, Pierrick Haan, chief executive officer of Dupont Medical, decided last year to return production of some wheelchairs and medical equipment to France. The 150-year-old Dupont Medical created 20 jobs making custom devices at a plant in central France -- and will stop there. Faced with France’s stifling labor code, Haan probably will send any additional production of standard equipment to what he calls “Near France:” Tunisia, Bulgaria or Romania. “The cost of labor isn’t the main problem, it’s the rigidities,” Haan said in an interview. “If you make a mistake in your hiring plans, you can’t correct it.”
While polls show job creation and the economic crisis are the top issues for French voters in next month’s second-round election, neither President Nicolas Sarkozy nor Socialist Francois Hollande are focusing on Haan’s concern. Companies say the biggest obstacle to hiring is the “Code du Travail,” a 3,200-page labor rulebook that dictates everything from job classifications to leave for training to the ability to fire.

Europe Seen Adding Growth to Budget Rules as Focus Shifts (Source: Bloomberg)
Europe may add an annex to its budget treaty spelling out how countries can boost growth as the bloc shifts its emphasis on tackling the debt crisis, a German government official said. Steps to raise competitiveness along with structural reforms are likely to feature in the prescriptions for growth, with a target date for completion by the June 18-19 Group of 20 leaders’ summit in Mexico, the official said on condition of anonymity because the discussions are private and not complete. The change in tack was signaled yesterday by European Central Bank President Mario Draghi, whose call for a “growth compact” was quickly endorsed by German Chancellor Angela Merkel. Francois Hollande, the French Socialist presidential election front-runner, welcomed Draghi’s remarks as evidence of the need for treaty changes to boost growth, while questioning the means of getting there.
“It’s not the same idea of growth,” Hollande said in an interview on France Info radio today. Draghi is “adding even stronger competition, liberalization and privatization.”

Euro-Area Economic Confidence Drops More Than Forecast (Source: Bloomberg)
Economic confidence in the euro region declined more than economists had forecast in April, as the region’s slump showed signs of deepening. An index of executive and consumer sentiment in the 17- nation euro area fell to 92.8 from a revised 94.5 in March, the European Commission in Brussels said today. Economists had forecast a drop to 94.2 from a previously reported 94.4, the median of 29 estimates in a Bloomberg News survey showed. Europe’s economy is faltering as spending cuts across the region undermine hiring and consumer confidence. Deutsche Bank AG, Germany’s largest bank, today reported a 33 percent drop in first-quarter profit, with Chief Executive Officer Josef Ackermann calling investors’ “risk appetite markedly lower.”
“With more austerity in the pipeline and the debt crisis still unresolved, any significant pickup in economic confidence in the remainder of this year might fail to occur,” said Martin van Vliet, an economist at ING Group in Amsterdam. “This could jeopardize a return to modest positive growth later this year.”

20120427 1008 Global Commodities Related News.

GRAINS-Soy eases from 4-year top, wheat dips on supply outlook
SINGAPORE, April 26 (Reuters) - U.S. soybeans slid half a percent on Thursday as the market took a breather after rallying to its highest in almost four years on the back of further crop losses in South America and strong Chinese demand.
"The main reason for the rally in the last couple of days has been the freezing temperatures we have seen in parts of Argentina which are likely to have resulted in some damage to the soybean crop," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia.

Market Recap: Wheat Futures (Source: CME)
Chicago and Kansas City wheat futures were firmer throughout the day, ending mostly around 7 to 9 cents higher. Minneapolis wheat ended 7 1/2 to 15 cents lower. Early support came from short-covering and this morning's weekly export sales data, showing sales for both marketing years combined to surpass expectations.

Wheat Market Recap Report  (Source: CME)
July Wheat finished up 9 at 635 1/2, 1 1/4 off the high and 11 up from the low. December Wheat closed up 6 at 671 3/4. This was 8 1/4 up from the low and 1 1/2 off the high. July wheat was trading just slightly higher late in the day but a late buying spurt sparked a rally to new highs for the day late and a 9 cent higher close. Uncertain weather factors helped to support the early bounce and short-covering emerged to see moderately higher trade into the mid-session. High temperatures in parts of Ukraine and in the southern plains of the US plus cold weather in the eastern Corn Belt helped to support. Temperatures in northern Texas wheat areas were well above 100 degrees to as high as 110 degrees and this had traders concerned for yield losses. Weekly export sales came in at 386,700 metric tonnes for the current marketing year and 357,300 for the next marketing year for a total of 744,000. As of April 19th, cumulative wheat sales stand at 99.3% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 95.7%. Sales of 32,000 metric tonnes are needed each week to reach the USDA forecast. The International Grain Council lowered their world production forecast by 5 million tonnes to 676 million tonnes as compared with 695 million last year. Iraq bought 300,000 tonnes of wheat which traders thought was from Australia, Canada and Kazakhstan. July Oats closed down 1 1/4 at 340 1/2. This was 1 1/2 up from the low and 3 1/4 off the high.

Libya plans to import 1 mln T of wheat in 2012  (Source: CME)
Libya expects to import 1 million tonnes of wheat in 2012 as production is expected to increase only slightly after last year's civil war, the director of the North African country's authority for cereal production said. "We expect to import 1 million tonnes of wheat. It will be done in specific (time) periods as required," Ali Rahuma, director of the authority which comes under Libya's agricultural ministry, told Reuters in an interview on Wednesday.

Morocco wheat harvest seen falling to near 3 mln T  (Source: CME)
Morocco's wheat harvest should stand at around 3 million tonnes this year, including 2 million tonnes of soft wheat, down sharply from a year earlier, the head of the country's agriculture industry group said on Wednesday. This would mean that wheat imports may rise by 50 percent from their level during the ongoing import calendar year, which starts in June and ends in May of the following year. Bread and semolina are the staples for Morocco's 34-million population.

Market Recap: Corn Futures  (Source: CME)
Old-crop corn futures ended high-range with gains of 6 1/2 to 13 cents; September futures were fractionally lower; and new-crop futures settled mid-range with losses around 3 cents. Funds purchased 6,000 corn contracts today (30 million bushels). Bull spreading was the dominant action in the corn market today and nearby contracts received an additional boost heading into the close from talk China may be back in the market for more U.S. corn.

Corn Market Recap for 4/26/2012  (Source: CME)
July Corn finished up 6 1/2 at 607 1/2, 3/4 off the high and 8 1/2 up from the low. December Corn closed down 3 at 535. This was 5 up from the low and 5 off the high. May corn closed sharply higher while July was moderately higher into the close but on the highs of the day and December corn recovered from moderately lower on the day late ion the session but still closed lower. July corn saw mostly choppy to lower trade for much of the early trade until buying emerged late in the day. A firm basis market at the gulf and talk that the offers were pulled for delivery in the next few months due to a lack of producer selling helped to support. Weekly export sales came in at 645,600 metric tonnes for the current marketing year and 180,600 for the next marketing year for a total of 826,200. As of April 19th, cumulative corn sales stand at 83.3% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 80.3%. Sales of 374,000 metric tonnes are needed each week to reach the USDA forecast. The data suggests that the USDA may be in a position to raise their export forecast in the May 10th update. Ideas of little or no deliveries for first notice day for May corn has helped to provide underlying support to the old crop corn even with the sell-off in soybeans and choppy trade in outside markets. December corn was lower into the mid-session with talk of active planting in Iowa and ideas that the crop will get off to a fast start this year. The Buenos Aires Grains Exchange reduced their corn production estimate by 1 million tonnes from their previous estimate to 19.8 million tonnes as compared with the April USDA forecast of 21.5 million tonnes. July Rice finished down 0.32 at 15.68, 0.01 off the high and equal to the low.

SOFTS-ICE coffee edges up early, sugar slightly lower
LONDON, April 26 (Reuters) - Arabica coffee futures on ICE edged up early, supported partly by a weaker dollar, although prices remained close to last week's 18-month lows while ICE cocoa also posted modest gains.  Arabica coffee futures  were slightly higher in a modest rebound after the prior session's steep setback.

ANRPC cuts 2012 rubber output forecast after Q1 fall
MUMBAI, April 26 (Reuters) - Global natural rubber output in the first quarter fell by a sharper-than-expected 9.5 percent as farmers in Thailand and Malaysia trimmed tapping on a steep drop in prices, promoting an industry body to cut its production forecast for 2012.  The Association of Natural Rubber Producing Countries (ANRPC) revised down its total production estimate in 2012 for member countries to 10.297 million tonnes from 10.42 million tonnes estimated earlier.

Costa Rica 11/12 sugar output rebounds-attache
April 25 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Costa Rica:  "Costa Rica's sugar cane and sugar production rebounded in 2011/2012 to 3,750,000 and 390,000 tonnes, respectively. Good weather conditions in the main production areas during 2011 resulted in higher production. Production is forecast to increase again during 2012/2013 as a result of slightly larger area planted."

Brazil '12/13 sugar output seen up at 37.8 mln T-Job Economy
SAO PAULO, April 25 (Reuters) - Brazil's total sugar output for the 2012/13 harvest, which will kick off in coming days, will reach 37.8 million tonnes, up from 36.2 million tonnes the season that ended in March, local sugar analysts Job Economy said on Wednesday.
Output of sugar from the main center-south cane producing region is forecast at 32.8 million tonnes, up from 31.4 million last season, which saw the first drop in output in 11 years due to drought and falling yields from aged cane fields.
 
Forecasts for Brazil's 2012/13 CS cane crop
April 25 (Reuters) - Brazil's center-south 2012/13 sugarcane harvest is struggling to expand this year after disappointing output in the 2011/12 season due to a mixture of bad weather and overdue replanting of ageing cane plants.  
The new crushing season started in April. Although planting of cane has expanded, dry weather persists over the main growing areas which will limit the recovery of the crop in the world's largest sugar exporter.

China 2012 cotton acreage seen down 9.4 pct-survey
April 25 (Reuters) - China's cotton acreage in 2012 is expected to decline 9.4 percent year-to-year, as weak cotton prices and unseasonably cool weather in some growing regions prompted farmers to delay planting, the China Cotton Association (CCA) said.
Among the 2,963 cotton farmers surveyed by the industry group, 42.4 percent said they would reduce planting, 9.1 percent said they would increase, with 46.4 percent said they would keep the acreage unchanged compared with last year, CCA said on its website on Tuesday.  

Argentine biodiesel mix seen reaching 10 pct soon
BUENOS AIRES, April 25 (Reuters) - Argentina should be able to meet a higher biodiesel mix requirement of 10 percent within three months, absorbing additional supplies of the soy-based fuel after Spain moved to cut imports, an industry group said on Wednesday.  Madrid took steps to restrict biodiesel imports last week in retaliation for the South American country's decision to seize control of energy company YPF  from Spain's Repsol .

OIL-Brent steady above $119; Fed comments support
SINGAPORE, April 26 (Reuters) - Brent crude was steady above $119 a barrel on Thursday, as optimism over a recovery in the U.S economy offset the impact of rising global supplies.
"The Fed's comments are supporting crude oil prices, despite a higher-than-expected U.S. inventory figure," said Miguel Audencial, a trader with CMC Markets in Sydney.

Oil Declines From Four Week High After Spanish Credit Rating Cut (Source: Bloomberg)
Oil fell from the highest level in almost four weeks in New York, trimming a second weekly gain, after Spain’s credit rating was lowered by Standard & Poor’s. Futures slipped as much as 0.6 percent after Spain’s rating was cut to BBB+ from A by New York-based S&P on concern the nation will have to provide fiscal support to the banking sector as the economy contracts. Oil prices may drop next week after economic confidence in the euro-region fell and more Americans than forecast filed applications for unemployment benefits, a Bloomberg News survey showed. Crude for June delivery slipped as much as 59 cents to $103.96 a barrel in electronic trading on the New York Mercantile Exchange and was at $104.02 at 9:15 a.m. Sydney time. The contract yesterday rose 43 cents to $104.55, the highest close since April 2. Prices are 0.9 percent higher this week and up 5.3 percent this year.
Brent oil for June settlement increased 0.7 percent to $119.92 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark contract’s front month premium to West Texas Intermediate closed at $15.37.

Gold Traders Get More Bullish as Central Banks Hoard More (Source: Bloomberg)
Gold traders are more bullish after central banks expanded their bullion reserves and hedge funds increased bets on a rally for the first time in three weeks. Fourteen of 28 analysts surveyed by Bloomberg expect prices to gain next week and nine were neutral, the highest proportion in two weeks. Mexico, Russia and Turkey added about 44.8 metric tons valued at $2.39 billion to reserves in March, International Monetary Fund data show. Fund managers raised their so-called net-long positions by 2.5 percent in the week ended April 17, according to the Commodity Futures Trading Commission. Federal Reserve Chairman Ben S. Bernanke said April 25 that he’s prepared to “do more” if needed to spur the economy, and Bank of Japan (8301) Governor Masaaki Shirakawa has said the BOJ is “committed” to easing. Gold rose about 70 percent as the Fed bought $2.3 trillion of debt in two rounds of quantitative easing ending in June 2011.
The U.K. fell into its first double- dip recession since the 1970s, data showed April 25, while the IMF predicts the 17-nation euro region will contract. “Ultra-loose monetary policies of recent years don’t look like they’re going to end any time soon,” said Mark O’Byrne, the executive director of Dublin-based GoldCore Ltd., a brokerage that sells and stores everything from quarter-ounce British Sovereigns to 400-ounce bars. “The problems in the euro zone don’t look like they’re going to end any time soon. We’ve had a dip, and our advice to clients is always to buy the dip.”

20120427 1007 Soy Oil & Palm Oil Related News.

Market Recap: Soybean Futures  (Source: CME)
Old-crop soybean futures posted a late-session recovery to end 4 1/4 to 7 3/4 cents higher, with the rest of the market down 5 1/4 to 12 1/2 cents. Meal ended mixed amid bull spreading, with soyoil weaker. Soybean futures were weaker most of the day, but in the end, old-crop futures rallied on strong demand and ongoing concerns about the South American crop.

Soybean Complex Market Recap  (Source: CME)
July Soybeans finished up 4 1/4 at 1480 1/4, 2 3/4 off the high and 16 3/4 up from the low. November Soybeans closed down 11 3/4 at 1358 3/4. This was 4 1/2 up from the low and 11 1/4 off the high. July Soymeal closed up 4.6 at 421.8. This was 7.2 up from the low and 0.2 off the high. July Soybean Oil finished down 0.28 at 55.75, 0.39 off the high and 0.34 up from the low. May and July soybeans recovered to close higher on the day while November soybeans closed sharply lower and near the lows. Solid export sales news helped to support the market with strong old crop sales helped to support. The market saw some strength early but selling quickly emerged to drive the market moderately lower on the day into the mid-session. November led the market lower as traders see recent action in soybeans relative to other grains and cotton as a factor which may have attracted extra planted area. Talk of unwinding of soy/corn spreads added to the negative tone into the mid-session. Weekly export sales for soybeans came in at 926,200 metric tonnes for the current marketing year and 483,000 for the next marketing year for a total of 1.409 million tonnes which was even higher than expectations. As of April 19th, cumulative soybean sales stand at 95.2% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 94.9%. Sales of 88,000 metric tonnes are needed each week to reach the USDA forecast. Meal sales came in at 221,100 metric tonnes for the current marketing year and 11,700 for the next marketing year for a total of 232,800. Cumulative sales stand at 77.9% of the USDA forecast versus a 5 year average of 74.5%. Sales of 76,000 metric tonnes are needed each week to reach the USDA forecast. Oil sales came in at 700 metric tonnes which was well below expectations. Cumulative soybean oil sales stand at 66.3% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 67.1%. Sales of 8,000 metric tonnes are needed each week to reach the USDA forecast. The Buenos Aires Grains Exchange reduced their soybean production estimate by 1 million tonnes from their previous estimate to 43 million tonnes as compared with the April USDA forecast of 45 million tonnes. There have been estimates from the trade in recent days at 40-42 million.

Soy yields surprise in drought-hit Argentine Pampas  (Source: CME)
Stunted soy plants and sickly corn crops are testament to a harsh drought that dashed hopes for a bumper harvest in Chivilcoy, a typical farming town in Argentina's Pampas plains.
The South American country is one of the world's biggest suppliers of grains. Shrinking production forecasts reflecting dry conditions early in the season boosted global grains prices.

Palm oil slips on economic woes, output outlook  (Source: CME)
Malaysian palm oil futures slipped as global economic uncertainty and expectations of improving production weighed on the market, although recovering exports and a smaller soybean crop in Argentina limited losses. "The underlying fundmentals still look quite good. Market is down as traders expect production should pick up in the month ahead. Another thing is economic concerns may be eating into demand," said James Ratnam, an analyst with TA Securities in Malaysia.

Soy eases from 4-year top  (Source: CME)
U.S. soybeans slid half a percent on Thursday as the market took a breather after rallying to its highest in almost four years on the back of further crop losses in South America and strong Chinese demand. "The main reason for the rally in the last couple of days has been the freezing temperatures we have seen in parts of Argentina which are likely to have resulted in some damage to the soybean crop," said Luke Mathews, commodities strategist at Commonwealth Bank of Australia.

VEGOILS-Palm oil slips on economic woes, output outlook
SINGAPORE, April 26 (Reuters) - Malaysian palm oil futures slipped as global economic uncertainty and expectations of improving production weighed on the market, although recovering exports and a smaller soybean crop in Argentina limited losses.
"The underlying fundmentals still look quite good. Market is down as traders expect production should pick up in the month ahead. Another thing is economic concerns may be eating into demand," said James Ratnam, an analyst with TA Securities in Malaysia.

Soy yields surprise in drought-hit Argentine Pampas
CHIVILCOY, Argentina, April 25 (Reuters) - Stunted soy plants and sickly corn crops are testament to a harsh drought that dashed hopes for a bumper harvest in Chivilcoy, a typical farming town in Argentina's Pampas plains.
The South American country is one of the world's biggest suppliers of grains. Shrinking production forecasts reflecting dry conditions early in the season boosted global grains prices.

Thursday, April 26, 2012

20120426 1828 FCPO EOD Daily Chart Study.


FCPO closed : 3500, changed : -11 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histogram : recovering, buyer seller battling.
Support : 3470, 3450, 3420, 3380 level.
Resistance : 3500, 3550, 3620, 3650 level.
Comment :
FCPO closed little lower with increasing volume traded. Soy oil price trading little higher after overnight closed recorded gain while crude oil price also edging higher.
Price trading mostly in negative territory through out the day on slowing global economy concern and anticipation of improving crude palm oil production ahead despite lower soybean crop development over South America.
Technical chart reading stayed suggesting a side way range bound 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.

20120426 1739 FKLI EOD Daily Chart Study.

FKLI closed : 1574.5 changed : -2 points, volume : lower.
Bollinger band reading : pullback correction downside biased.
MACD Histogram : falling lower, seller taking exposure.
Support : 1570, 1565, 1550, 1540 level.
Resistance : 1580, 1590, 1595, 1600 level.
Comment :
FKLI closed little lower with declined volume transacted doing 5 points discount compare to cash market that closed marginaly higher. Overnight U.S. markets closed higher and today Asia markets also ended recorded gains while European markets trading higher.
Global markets rise after overnight U.S. Federal Reserve statement that they are prepared to provide more stimulus measure if needed and some global company earnings report beat estimates. Having said that, China market ended lower as lower corporate earnings concern overshadow positive news from the U.S.
Daily chart analysis adjusted to suggesting a pullback correction downside biased market development.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.

20120426 1700 Regional Markets EOD Daily Chart Study.

 DJIA chart reading : side way range bound.
 Hang Seng chart reading : side way range bound.
KLCI chart reading :  side way range bound little downside biased.

20120426 1624 Global Market & Commodities Related News.

Asian shares rose, retaining positive momentum as the Federal Reserve reassured markets that it will keep its very accommodative stance to support growth, while optimism grew over strong quarterly corporate earnings.  U.S. stocks rallied on Wednesday, with Apple's surge giving the  Nasdaq its biggest gain of the year, while the Fed chairman reassured markets that the central bank would do more if necessary to lift the economy.

The U.S. dollar floundered at three-week lows against a basket of major currencies, after the Federal Reserve did little to alter the perception that the central bank will be deeply committed to a dovish policy stance.

FOREX-Dollar near 3-week low as it falls prey to dovish Fed
TOKYO, April 26 (Reuters) - The U.S. dollar floundered at three-week lows against a basket of major currencies on Thursday, after the Federal Reserve did little to alter the perception that it remained deeply committed to a dovish policy stance.
"Despite its projections that GDP growth will pick up, the FOMC expects unemployment to remain well above target by the end of 2014. This means that there is scope for further monetary easing down the road, especially if the recovery falters," said Philip Marey, strategist at Rabobank.  

Morocco wheat harvest seen falling to near 3 mln T
Morocco's wheat harvest should stand at around 3 million tonnes this year, including 2 million tonnes of soft wheat, down sharply from a year earlier, the head of the country's agriculture industry group said on Wednesday.

U.S. soybeans slid half a percent as the market took a breather after rallying to its highest in almost four years on the back of further crop losses in South America and strong Chinese demand.

Brazil '12/13 sugar output seen up at 37.8 mln T-Job Economy
Brazil's total sugar output for the 2012/13 harvest, which will kick off in coming days, will reach 37.8 million tonnes, up from 36.2 million tonnes the season that ended in March, local sugar analysts Job Economy said on Wednesday.

Brent crude was steady around $119 a barrel, as optimism over a recovery in the U.S economy offset easing concerns of a disruption in Iranian oil exports and high U.S. crude stocks.

Japan's crude imports from Iran drop 6.3 pct y/y in March
Japan's customs-cleared crude imports from Iran fell 6.3 percent in March from a year ago, amid tightening Western sanctions that make it difficult to do business with the Islamic Republic.

China Aviation Oil seeks up to 1.4 mil barrels jet fuel -trade
China Aviation Oil (Singapore)  is seeking up to 1.4 million barrels of jet fuel for May and June, with a slight spike in purchases in May, industry sources said.

Japan imports LNG from Belgium for 1st time
Japan, the world's top user of liquefied natural gas (LNG), in March imported LNG for the first time from Belgium, customs-cleared data from the Ministry of Finance showed on Thursday.

COLUMN-China's copper imports; should we be worried?
--Andy Home is a Reuters columnist. The opinions expressed are his own--
LONDON, April 25 (Reuters) - The intensity of China's appetite for imported copper is once again the defining feature of the global market.  
Chinese buyers' absence from the spot market is all too evident.  
The arbitrage between Shanghai and London has been deeply import-negative for many weeks. Physical premiums for metal in Shanghai have been soft, lower indeed than those for metal in recessionary Western Europe.  

China daily steel output above 2 mln T in mid-April - CISA data
China's daily crude steel output remained above 2 million tonnes tonnes in the second 10 days of April, industry data showed on Thursday, as steelmakers sustained high output amid a seasonal rebound in demand.

China to close 8.5 mln tonnes of steel, copper capacity in 2012
BEIJING, April 26 (Reuters) - China aims to shut down 7.8 million tonnes of steelmaking capacity and 700,000 tonnes of copper smelting capacity this year, the industry ministry said on Thursday, as part of its efforts to reduce pollution.
The Ministry of Industry and Information Technology said in a statement that it also aims to close 270,000 tonnes of aluminium capacity in 2012.

LME proposes warehouses deliver 60 tonnes tin, nickel
The London Metal Exchange is proposing that warehousing companies ensure their minimum daily nickel and tin deliveries are at least 60 tonnes, the exchange said on Wednesday.

London copper edged lower, unimpressed by the U.S. Federal Reserve's reassurance on the chance of more monetary stimulus, as the market was torn between a lackluster picture of demand from top consumer China and a squeeze in London.

Gold held above $1,644 after the U.S. Federal Reserve's meeting on interest rates offered few surprises, but gains in equities and expectations the central bank could do more if necessary to lift the economy may eventually spur buying from investors.  

METALS-London copper edges down, shrugging off Fed comments
SINGAPORE, April 26 (Reuters) - London copper edged lower unimpressed by the U.S. Federal Reserve's reassurance on the chance of more monetary stimulus, as the market was torn between a lackluster picture of demand from top consumer China and a squeeze in London.
"Bernanke's comments on the possibility of QE3 (the third round of quantitative easing) is biased towards being bullish for copper, but its effect is rather limited after the prospects of more QE have been diminishing over the past month or two," said Fang Junfeng, an analyst at Shanghai CIFCO Futures.

PRECIOUS-Gold stuck in range after Fed, equities curb losses
SINGAPORE, April 26 (Reuters) - Gold held above $1,644 after the U.S. Federal Reserve's meeting on interest rates offered few surprises, but gains in equities and expectations the central bank could do more if necessary to lift the economy may eventually spur buying from investors.  
"I think going forward, gold will probably trade in the direction of where the macro-economy is going. If we hear fresh news from the euro zone that the debt crisis is reemerging, then we could see some safe have demand," said Lynette Tan, an analyst with Phillip Futures.  

20120426 1104 Global Market & Commodities Related News.

GLOBAL MARKETS-Fed's reassurance, earnings optimism lift shares
TOKYO, April 26 (Reuters) - Asian shares gained on Thursday, retaining positive momentum as the Federal Reserve reassured markets that it will keep its very accommodative stance to support growth, and optimism grew over strong corporate earnings after Apple Inc's robust results.
"The totality of all new Fed communications ... have reinforced the idea that the policy bias is currently neutral and that the outlook remains highly dependent on incoming data," said Societe Generale in a note.

COMMODITIES-Oil up despite high supply; cattle ignore mad cow
NEW YORK, April 25 (Reuters) - Oil markets rose on Wednesday despite an increase in U.S. crude supplies and cattle prices recovered from a sell-off sparked by mad cow disease, but early strength in the dollar restrained commodities as a whole.  
"Oil got support from equities, which are on a rally mode," said Hamza Khan, analyst at the SchorkGroup in Villanova, Pennsylvania.

Exports gobble up U.S. Gulf diesel stocks
--Robert Campbell is a Reuters market analyst. The views expressed are his own--
NEW YORK, April 25 (Reuters) - Stocks of distillate fuel on the U.S. Gulf Coast are tight and getting tighter as strong demand from overseas markets drains inventories even as overall production has risen.
For the first 15 weeks of the year, U.S. Gulf Coast distillate fuel stocks are down 5.36 million barrels, at an average pace of 357,000 barrels a week.

Japan's Iran crude imports fall 6.3 pct yr/yr in March
TOKYO, April 26 (Reuters) - Japan's customs-cleared crude imports from Iran fell 6.3 percent in March from a year earlier to 1,751,737 kilolitres (355,400 barrels per day), Ministry of Finance data showed on Thursday.
March imports from Iran rose 41.9 percent from February's 1,234,082 kl (267,700 bpd).

Libya's biggest oil refinery faces restart delay
LONDON, April 25 (Reuters) - Libya's largest refinery, 220,000 barrels per day (bpd) Ras Lanuf, is unlikely to restart for another month or more until after a meeting between board members and shareholders, an official at the refinery operator Libyan Emirati Refining Co (Lerco) told Reuters.
Lerco is a joint-venture between Libya's state oil company National Oil Corporation (NOC) and UAE-based Al Ghurair group.  

Oil gains with Wall St, shrugs off US stock build
NEW YORK, April 25 (Reuters) - Oil prices rose in choppy trading o n W ednesday, with Brent closing at its highest in eight days, as a rally in equity markets fueled partly by Federal Reserve comments outweighed a fifth straight weekly increase in U.S. crude stockpiles.
"Oil got support from equities, which are on a rally mode and as support that developed after the day's lows at around $103 (for U.S. crude) was not violated," said Hamza Khan, analyst at the Schork Group in Villanova, Pennsylvania.

NATURAL GAS - US natgas futures spike 5 pct on demand, supply cut talk
NEW YORK, April 25 (Reuters) - U.S. natural gas futures shot up sharply on Wednesday as stronger demand and talk of supply cuts from Canada's largest gas producer stirred buying despite milder extended weather forecasts and concerns about record-high supplies.
"There is current weakness in market fundamentals due to an oversupply of natural gas and it is clear that a continued reduction of drilling activity will be required to restore market balance," the company said in a statement.