Wishing All Happy Chinese New Year and Happy Holidays !

祝大家 : 恭喜发财 ! 万事如意 !

20100225 1859 FCPO Weekly Chart Study.

FCPO closed : 2595, changed : -1 point, volume : higher.
Bollinger band reading : side way upside biased.
MACD Histrogram : nearly unchanged, buyer still in.
Support : 2521, middle Bollinger band, 2400 level.
Resistant : 2600, 2650, 2740 level.
Comment :
FCPO closed 1 point lower with improved volume transacted and the weekly technical reading still suggesting a side way range bound upside biased market. However market could possible consolidate downward to test lower support level in the near term.

20100225 1841 FCPO EOD Daily Chart Study.

FCPO closed : 2595, changed : +5 points, volume : higher.
Bollinger band reading : side way bullish biased.
MACD Histrogram : continue lower, seller taking chances.
Support : 2590, 2570, 2521 level.
Resistant : 2620, 2650, 2670 level.
Comment :
FCPO ended up slightly with high volume traded despite 2 cargo surveyors released a weaker crude palm oil export data forming a down doji bar candle. Side way correction market continue to show on the daily chart with bullish biased reading to take place in the near term and market could still possibly test lower support level at the middle Bollinger band level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100225 1808 FKLI Weekly Chart Study.

FKLI closed : 1276, changed : +24 points, volume : higher.
Bollinger band reading : side way.
MACD Histrogram : reversed upward, buyer come back to give it a fight.
Support : 1274, middle Bollinger band, 1250 level.
Resistant : 1285, 1300, 1307 level.
Comment :
FKLI opened and traded mostly at higher level through out the week with 2 resistant levels penetraded ended the week with a doji bar candle. Chart wise, the outlook remained side way range bound with some test at the support and resistant level.

20100225 1735 FKLI EOD Daily Chart Study.

FKLI(Jan 2010) closed : 1276, changed : +6.5 points, volume : lower.
Bollinger band reading : slightly bullish.
MACD Histrogram : rising higher, buyer still in charge.
Support : 1270, 1260, 1250 level.
Resistant : 1278, 1290, 1300 level.
Comment :
FKLI Jan 2010 contract ended higher with lower volume today following overnight DJIA that rebounded higher and market sentiment improved as yesterday better 4th quarter GDP announced. Technically the daily chart just turned bullish as the Bollinger band width just started to expand suggesting possible further upside with the MACD Histrogram also agree with the upward biased movement by registering higher reading. However on the other hand, cash market last minuted closed from positive to unchanged with FKLI March 2010 contract ended doing 5 points discount compare to cash and 11 points discount compare to Jan 2010 contract raised some doubt on the upward movement.
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.

20100225 1512 FKLI Mid Day Hourly Chart Study.

FKLI last look (Mar2010): 1269 changed : +5 point, volume : high.
Bollinger band reading : side way little upside biased.
MACD Histrogram : up and down by a fraction, draw game for buyer and seller.
Support : 1260, 1250, 1235 level.
Resistant : 1270, 1278, 1290 level.
Comment :
FKLI Mar2010 contract opened and traded firmer in a side way 8 points range bound market. Hourly chart wise, market is likely to trade side way range bound and a little upside biased with immediate support seen at the
middle Bollinger band level.

20100225 1458 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2591, changed : +1 points, volume : low.
Bollinger band reading : bearish.
MACD Histrogram : getting lower, seller returned.
Support : 2590, 2570, 2521 level.
Resistant : 2620, 2650, 2670, 2700 level.
Comment :
Despite overnight higher soy oil futures price, FCPO opened and traded higher but the upward movement didn't last long follow by sell down activities pushed price lower test below the 2590 support level but still managed to closed 1 point above it. Hourly chart has turned into bearish outlook and is likely to trade downside biased with possible mild upward correction as price has touched the lower Bollinger band.

20100225 1036 Malaysia Corporate News.

Las Vegas Sands said it will open a portion of its Marina Bay Sands in Singapore on April 27. The project's nearly 3-acre SkyPark, which sits atop the hotel-casino's three 55-story hotel towers, will open June 23 as part of the overall grand opening celebration. The hotel will open with 963 hotel rooms and in time to host the Inter-Pacific Bar Association's annual conference.

• Subject to regulatory approval, Marina Bay Sands will open with part of the shopping mall and convention center, several restaurants and the casino. (Las Vegas Review Journal) 

This concrete opening date follows the company's indication last week that it will open its Singapore IR by April. This news should be a slight negative for Genting Singapore given that this firm date essentially limits its gaming monopoly in Singapore to about three months i.e. until end-April.

The proposal paper on electricity tariff is still under consideration by the cabinet. As such, there had been no announcement on the matter, according to the Ministry of Energy, Green Technology and Water. (Bernama)

Palm oil futures fell for the first time in three days yesterday on concern demand may wane as the price gap between the vegetable oil and its rival soybean narrowed. Palm oil for May delivery on the Malaysia Derivatives Exchange lost as much as 0.6% to RM2,619/MT, before pausing at RM2,628/MT. (Bloomberg, Malaysian Reserve)

The Selangor Government is ready to face Syarikat Bekalan Air Selangor (Syabas) in court, should the water company proceed with legal action after the state government refused to allow it to increase water tariffs.

• Menteri Besar Tan Sri Abdul Khalid Ibrahim said Syabas, through the Tetuan Cheang and Ariff law firm, sent a letter dated Feb 12, requesting Selangor to pay RM339m in compensation within 14 days or face legal action. 
• “The state government has been advised by a panel of lawyers which found that there was no need to do so. In relation to that, the state government will stop any attempt to increase water tariffs in Selangor. “We remain firm that Syabas has gone against many important matters in the concession agreement which was certified by the National Audit Department. (Bernama)

Malaysia Airports Holdings has shortlisted five companies to build the main terminal building and satellite tower for the new RM2bn low-cost carrier terminal (LCCT) in Sepang.UEM-Bina Puri JV, Sunway Construction, privately-held AHT Norlan-Carriage JV, IJM Corp Bhd and the Gadang Holdings-PPC JV are the frontrunners to win the tender.

• An MAHB official, who declined to be named, said the five were selected because they had offered the lowest prices for the project and said they could complete the job in 20 months, as outlined by the airport operator. 
• The new LCCT is slated for completion by 3Q11. However, rumours are swirling that it may be delayed by 6-12 months. "The tender process took a longer time (than expected). MAHB had pre-qualified many companies and then invited some on a selective basis to tender," the official said. "MAHB may award the contracts for both buildings in the next one to two months and the two companies are expected to start work immediately", says the official. (BT)

Proton Holdings is holding “intense discussions” with global OEMs on different types of collaborations. MD Datuk Syed Zainal said the national carmaker was talking not only with Volkswagen but also with Mitsubishi and Renault for collaboration in engine and products. However, he said he respect the confidentiality of such high-level discussions and would not want to pre-empt the talks. (Starbiz)

Perodua plans to expand its export market this year to include Thailand, Pakistan and India. MD Aminar Rashid Salleh said the company aimed to increase the sales of engine components and CBUs. “This year, our export target is 2,700-3,000 units but we need time to study the possibility of increasing the volume, particularly in new areas,” he said. “Our emphasis is within Asean. We are already in Singapore and Brunei and we would like to increase the market share. In the long-term, we might also look at South Africa,” he added. (Financial Daily)

Edaran Tan Chong Motor (ETCM), the sales and marketing arm of Nissan vehicles in Malaysia, is confident of maintaining its current growth momentum via core and proven models. "We also plan to introduce two new models," said ED Datuk Dr Ang Bon Beng. (Bernama)

Mercedes-Benz Malaysia is on track to achieving a sales target of 4,200 vehicles this year. VP of Sales and Marketing for passenger cars, Florian Mueller said the C and E class Mercedes-Benz have been the pillar of sales over the past two months with both classes contributing up to 80% of units sold. On the newly launched S300 L, S350 L and S500 L models, he said the company had already received 60 pre-launch bookings and expects another 60 in the second week. (Bernama)

Media Prima has appointed Mohamad Ariff Ibrahim as group CFO effective April 16. Mohamad Ariff is currently the CFO/finance director of New Straits Times Press. He replaces Amil Izham Hamzah who will not be renewing his contract with the group. Meanwhile, Ahmad Izham Omar will take on the role of ED of 8TV. (BT)

Bank Islam Malaysia expects a 10-15% growth in deposits this year, driven by the launch of new attractive products and campaigns. Treasury Division GM Norashikin Mohd Kassim said the bank's current total deposits stood at RM25bn for both retail and corporate segments. (Bernama)

MMC Corp said that the tender award for the construction of a port in its Jazan City in Saudi Arabia has been put on hold pending confirmation from anchor tenants. (Bloomberg, Malaysian Reserve)

YTL Power’s subsidiary, YTL Communications, has entered into contracts with Samsung Electronics Co Ltd to increase the number of base stations towards launching its 4G network nationwide soon. Samsung would provide additional 500 WiMAX 2.3GHz radio base stations to increase coverage in the East Coast, in addition to the 1,990 stations currently being deployed. It said Samsung would also supply 2,000 smaller base stations, for in-building network coverage. (Financial Daily)

Hai-O Enterprise will focus on its expansion in Indonesia going forward while exploring business opportunities in China. Group CFO Hew Von Kin said the company would launch its Indonesia ops in April and had submitted more products for registration approvals, adding that the company expected the Indonesian ops to break-even in two years. Group MD Tan Kai Hee said Indonesia was Hai-O’s only overseas market currently and it planned to venture into China in a year or two. (Starbiz)

Golden Land, an oil palm plantation company, is proposing a private placement exercise of up to 10% of its shares to raise funds to be used as working capital. Based on an indicative issue price of RM1 per share, Golden Land expects the proposed private placement exercise may raise about RM22.3m. (Malaysian Reserve)

20100225 1029 Malaysian Economic News.

Malaysia emerged from its first recession in a decade in 4Q09. Gross domestic product (GDP) increased 4.5% yoy in 4Q, after contracting 1.2% in 3Q. That was better than the median forecast of 3.2% in a survey.

• On an annual basis, Malaysia’s 2009 GDP shrank 1.7% yoy (4.6% in 2008). The median forecast in a survey was for a 2.0% decline. (Bloomberg) Please see our Economic Focus for further details.

Inflation rose for a second month in January, climbing 1.3% yoy, after gaining 1.1% in December. The median forecast in a survey was for a 1.5% increase. (Bloomberg) Please see our Economic Update for further details.

The 4.5% growth in Gross Domestic Product (GDP) achieved in 4Q09 is unexpected, says Prime Minister Datuk Seri Najib Tun Razak. The growth stemmed from strengthened domestic and external demand," said Najib. Last year, the country's economic growth contracted to -1.7%, lower than the projected 3%, he said.

• "For 2010, the country's growth is expected to be at 4.9%. The market forecast is moving closer to our expectation," said RAM Group chief economist Dr Yeah Kim Leng. 
•  Minister of International Trade and Industry Datuk Seri Mustapa Mohamed said he was optimistic that the positive trend will continue based on signs that the country's export growth could exceed the 2-3% growth projected for 2010. (Bernama)

The shift in growth from the public sector to the private sector is becoming more evident and this is healthy for the Malaysian economy judging from the positive Gross Domestic Product (GDP) growth registered in 4Q09. "The fourth quarter growth saw more contribution from the private sector and this is an important indicator of the increased public confidence towards the economy," said Datuk S.K. Devamany, Deputy Minister in the Prime Minister's Department (Economic Planning Unit). (Bernama)

The Government’s proposed fuel subsidy scheme based on the engine capacity of vehicles has apparently been shelved, according to source. This plan, which was originally set to be implemented on 1 May, will not proceed even though a lot of the preparatory work has entered the final stage. (The Star)

Prime Minister Datuk Seri Najib Tun Razak said the government had filled 38,495 of the 50,000 vacant posts in the federal civil service between March last year and 24 Feb this year. Overall, conditions in the labour market improved significantly in 4Q09 with total retrenchments declining to 2,125 persons compared with 12,590 persons in 1Q09. (Bernama)

Broad money, M3, grew at an annual rate of 7.9% in January (9.1% in Dec 09), said Bank Negara Malaysia (BNM). It was due to sustained credit by banks to the private sector. (Bernama)

20100225 1024 Global Economic News.

Federal Reserve Chairman Ben S. Bernanke said the US economy is in a “nascent” recovery that still requires low interest rates to encourage demand by consumers and businesses once federal stimulus expires. “ A sustained recovery will depend on continued growth in private-sector final demand for goods and services,” Bernanke told the House Financial Services Committee.

• Bernanke signaled that short-term interest rates would be kept near zero "for an extended period," as he said the Fed will "evaluate" whether additional monetary stimulus of some sort is needed. Unemployment, not inflation, is "the biggest problem we have," he said. 
• Bernanke left the door open to further purchases of mortgage backed securities and agency debt beyond March, and in response to questions from committee members, he said the Fed would also be evaluating whether it should extend its financing of new commercial mortgage backed securities past June. (Xinhua, Bloomberg)

The US Senate on Wednesday approved a US$15bn job-creation bill that would give businesses tax breaks for hiring the unemployed and states more money for infrastructure projects. The four-prong bill would:

• Exempt employers from Social Security payroll taxes on new hires who were unemployed; 
• Fund highway and transit programs through 2010;
• Extend a tax break for business that spend money on capital investments, such as equipment purchases;
• Expand the use of the Build America Bonds program, which helps states and municipalities fund capital construction projects. (CNN Money)

US new home sales unexpectedly fell in January to the lowest level on record, a sign that an extension of a government tax credit may not be enough to rekindle demand. Purchases declined 11% to an annual pace of 309,000, below the market forecast of 342,000. The median sales price dropped 2.4% yoy and the supply of unsold homes increased. (Bloomberg)

As banks around the world increasingly load up on government securities, the heightened risk of sovereign default makes the likelihood of a joint fiscal, banking and currency crisis much greater in the mature world, the chief economist for the Institute of International Finance (IIF) said. (Xinhua)

Global commerce contracted around 12.0% in volume terms last year, more than a previous estimate of 10.0%, said World Trade Organization Director-General Pascal Lamy. This is “the sharpest decline since the end of the Second World War,” Lamy told.

• However, world trade is “picking up” he added, without giving a forecast for this year. It’s too soon to know whether the current upward trend is “short-term” or “sustainable,” he said. (Bloomberg)

European industrial orders unexpectedly rose 0.8% mom for a second month in Dec 09 (+2.7% in Nov), led by a surge in demand for capital goods such as machinery and equipment. On an annualised basis, industrial orders increased 9.5% (-0.6% in Nov), the first annual gain since July 08. Economists forecast a drop of 1% mom in Dec 09. (Bloomberg)

Japan’s exports climbed 40.9% yoy in January (+12.0% in Dec 09), marking the biggest increase since Feb 80. Imports rose 8.6% yoy (-5.5% in Dec 09), resulting in a trade surplus of ¥85.2bn in January (¥544.2bn in Dec 09). The median estimate was for exports and imports to rise 39.5% and 12.1% respectively.. (Bloomberg)

Hong Kong’s economic growth beat estimates to rise by a seasonally adjusted 2.3% qoq in 4Q09 (0.4% in 3Q09). Financial Secretary John Tsang forecast an expansion of as much as 5% this year as he moved to counter the risk of a property bubble. Economists projected it would increase by 0.4% qoq in 4Q09. (Bloomberg)

Hong Kong will raise the stamp duty for luxury homes sales of more than HK$20m and increase the supply of land and apartments, Financial Secretary John Tsang said. The stamp duty measures could be extended to cheaper properties “if there is excessive speculation,” he said.

• At the same time, Tsang switched to forecasting a budget surplus for the year through 31 Mar, rather than a deficit, on land sales and extra government revenue from surging property and stock transactions. (Bloomberg)

Standard & Poor’s may downgrade Greece’s credit rating again by the end of March as a weak economy and political opposition threaten the country’s ability to cut the European Union’s largest budget deficit. “We believe that a further downgrade of Greece of one to two notches is possible within a month,” S&P analysts said. (Bloomberg)

Bank Indonesia (BI) doesn’t see much “pressure” to increase its benchmark interest rate in the first half of this year, central bank Deputy Governor Hartadi Sarwono said. “It seems that inflation is still within our expected range so that pressure to increase the BI rate isn’t big,” Sarwono said. (Bloomberg)

The Indonesian government and central bank are urging lenders to reduce borrowing costs to boost growth, according to State Enterprise Minister Mustafa Abubakar. Policy makers want Indonesia’s 121 commercial lenders to cut loan rates by between 1-2%. “Business people have been complaining about higher lending rates in Indonesia.” (Bloomberg)

20100224 1826 FCPO EOD Daily Chart Study.

FCPO closed : 2590, changed : +45 points, volume : lower.
Bollinger band reading : side way bullish biased.
MACD Histrogram : continue lower, buyer off loading with seller present.
Support : 2590, 2570, 2521 level.
Resistant : 2620, 2650, 2670 level.
Comment :
Drop in most of the world commodities price lead FCPO to closed weaker at the low of the day in low volume. Daily chart outlook suggesting a side way correction market with still bullish biased reading in the near term. Expect market to trade side way with a little downside biased testing lower support level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100224 1742 FKLI EOD Daily Chart Study.

FKLI closed : 1269.5, changed : -0.5 point, volume : higher.
Bollinger band reading : side way.
MACD Histrogram : rising higher, buyer still in charge.
Support : 1260, 1250, 1235 level.
Resistant : 1270, 1278, 1290 level.
Comment :
FKLI closed half a point lower with higher volume and has yet to closed above the crucial 1270 resistant level after tested above it. Side way range bound reading continue to show on the daily chart basis with some test at support and resistant level. Another thing to take notice will be the announced better than expected 4th quarter GDP seems didn't bring any surprise to the market to response accordingly and perhaps it's already reflected in during the previous January climb.
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.

20100224 1652 Malaysia 4th Quater GDP improved 4.5%.

Malaysia Prime Minister Najib Razak said Wednesday that the nation's economy expanded at a faster-than-expected 4.5% in the fourth quarter, a rebound from the third quarter's 1.2% contraction. For the whole of 2009, gross domestic product fell 1.7%, less severe than an official forecast of 3.0% contraction.

20100224 1448 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1269.5, changed : -0.5 point, volume : high.
Bollinger band reading : side way bullish biased.
MACD Histrogram : improved slightly but still weak, roll over activities taking place.
Support : 1260, 1250, 1235 level.
Resistant : 1270, 1278, 1290 level.
Comment : FKLI opened down lower following by roll over activities lifted price to above but closed just half point below the 1270 resistant level. Hourly chart suggesting a side way range bound little upside biased market to take place in the second half session.

20100224 1231 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2630, changed : +6 points, volume : low.
Bollinger band reading : side way bullish biased.
MACD Histrogram : turned lower, buyer off loading.
Support : 2620, 2590, 2570 level.
Resistant : 2650, 2670, 2700 level.
Comment :
FCPO traded slightly lower with disappointing volume transacted. Price traded throught out the first session hovering near the middle Bollinger band level with the band width started to turned inward and MACD Historgram continue to register lower reading suggesting market is consolidating and is likely to trade side way range bound with a little upside biased.

20100224 1117 US - Confidence falls to lowest since April.

Confidence among US consumers fell in February 2010 to the lowest level in 10 months, a sign that concern about job prospects may hold back the spending needed to sustain the recovery. The Conference Board’s confidence index slumped to 46, below the lowest forecast in a Bloomberg News survey of economists, from 56.5 in January 2010, a report from the New York-based private research group showed. (Bloomberg)

20100224 1116 Malaysia - GDP likely to grow 3.2% in Q4 2009.

Malaysia will likely see an expansion of the economy in terms of gross domestic product (GDP) numbers in the final quarter of 2009 after three preceding quarters of negative growth. A Bloomberg survey of 15 economists ahead of the central bank’s scheduled release of the fourth quarter GDP figures showed economy growing by 3.2% after a contraction of 1.2% in the previous quarter. (The Star)

20100224 0930 Global Economic News.

US consumer confidence fell in February to the lowest level in 10 months, a sign that concern about job prospects may hold back the spending needed to sustain the recovery. The Conference Board’s confidence index slumped to 46 (56.5 in Jan). Economists forecast the confidence index would decrease to 55. (Bloomberg)

US home prices in 20 US cities rose in December for a seventh consecutive month, indicating the industry at the heart of the worst recession since the 1930s is stabilising. The S&P/Case-Shiller home-price index increased 0.3% mom on a seasonally adjusted basis, more than anticipated and matching the gain in November. The gauge was down 3.1% yoy, the smallest decline since May 2007. (Bloomberg)

US Treasury announced that it is reopening and rebuilding its Supplementary Financing Program (SFP), under which the Treasury last year sold extra Treasury bills and deposited the proceeds in a special SFP account at the Fed. The net effect of SFP operations is to drain reserve balances from depository institutions. But it is not expected to have a significant monetary impact in the near term, especially with the Fed continuing to purchase agency and agency-guaranteed mortgage backed securities. (Xinhua)

The Bank of England (BOE) may have to restart its asset-buying programme if the economic outlook worsens, governor Mervyn King said. While the serious downside risks of another Great Depression had diminished, the economy was not out of the woods yet, he said. “If the news is that the economic outlook seems even weaker, inflation pressure is lower and that moves down that profile, I think there is a strong case then for expanding further the asset purchases,” King said. (Financial Daily)

China's exports may grow by 8% in 2010 but problems still existed with getting exports back to pre-crisis levels, Minister of Industry and Information Technology (MIIT), Li Yizhong said. It was unlikely for China's exports to recover to pre-crisis levels in the short-term, attributing the slow rebound to rising international protectionism and the fact that Chinese manufacturers relied too much on overseas markets, Li said. (XinHua)

Hong Kong’s inflation slowed to 1.0% in January (+1.3% in Dec 09) as the timing of a Chinese Lunar New Year holiday distorted comparisons with a year earlier. That matched the median estimate in a Bloomberg News survey. (Bloomberg)

Singapore’s consumer prices climbed 0.2% yoy in January (-0.5% in Dec 09) as transportation and healthcare costs rose. The index this month reflects a change in the base year to 2009 from 2004. Prices climbed 0.7% mom in January (-0.6% in Dec 09), without adjusting for seasonal factors. Economist s projected it would increase by 0.7% yoy. (Bloomberg)

India’s fiscal stimulus is a “short-term measure” to support economic growth, junior finance minister Namo Narain Meena said, signaling the government may remove some tax incentives in the budget on 26 Feb. “The expansionary fiscal stance is a short-term measure to address demand slowdown in the economy and to minimise the adverse impact of the global financial crisis,” Meena said. (Bloomberg)

Ballooning debt is likely to force several countries to default and the US to cut spending, according to Harvard University Professor Kenneth Rogoff, who in 2008 predicted the failure of big American banks. Following banking crises, “we usually see a bunch of sovereign defaults, say in a few years,” Rogoff said.

• The US is likely to tighten monetary policy before cutting government spending, sending “shockwaves” through financial markets. Fiscal policy won’t be curbed until soaring bond yields trigger “very painful” tax increases and spending cuts, he said. 
• “Most countries have reached a point where it would be much wiser to phase out fiscal stimulus,” said Rogoff. It would be better “to keep monetary policy soft and start gradually tightening fiscal policy even if it meant some inflation.” (Bloomberg) 

20100224 0924 Malaysian Economic News.

Malaysia and Germany signed an agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (DTA). The Ministry of Finance said the agreement would provide for the avoidance of the incidence of double taxation on income such as business profits, dividends, interests and royalties derived in Malaysia and remitted to Germany or vice versa. It said with the agreement would replace the previous DTA Malaysia and Germany signed on Apr 8, 1977. (Bernama)

The special laboratory set up to find solutions on issues concerning foreign nationals would focus on four main areas – entry procedure, legalisation, monitoring and enforcement system. Home Minister Datuk Seri Hishammuddin said the lab could function as an important platform to discuss issues and make recommendations to fine-tune the responsibilities of each ministry and government agency in a systematic and effective manner.

• “Among the lab’s focus will be to study the entry procedure of foreign nationals by taking into consideration the real needs of an industry and its effect on the country’s economy and security,” he said. (The Star)

The government hopes to increase the ratio of domestic investments to foreign direct investments (FDIs) to 60:40 by 2020 with improved business environment, investment policies and other incentives in the country.

• The current ratio of domestic investment to FDIs stood at 32:68. International Trade and Industry (Miti) Minister Datuk Seri Mustapa Mohamed said given the uphill challenges in the economic recovery globally, FDIs have been in on the decline. 
• It is therefore important to raise domestic investments to stimulate the domestic economy. The 60:40 ratio is in line with the Third Industrial Masterplan (IMP3), which spans over a 15-year period starting from 2006.
• Miti, in its effort to boost domestic private investment, will meet Bank Negara to discuss problems faced by small and medium-scale enterprises (SMEs) in securing financing from banks. Easy and speedy financing approval remained a concern among SMEs. (Bernama, StarBiz, FinancialDaily)

20100224 0920 Malaysia Corporate News.

The Cabinet will decide on the new electricity tariff tomorrow, says Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui. He said his ministry had submitted a proposal paper to the EPU in the PM’s department. “If the Cabinet approves, there will be some increase, it can’t be a reduction,” he said. (Bernama)
Tomorrow's tariff decision is timely and consistent with the mid-Feb time frame suggested by Tenaga’s management during its post-1QFY10 results briefing in mid-Jan. We hold the view that it will most likely be status quo for power tariffs tomorrow given stable gas and coal prices in 2H09 and the recovering economy. We also think that the best way for a base tariff hike to happen is to slip one in during a fuel-led tariff adjustment.

CIMB Group expects a higher net profit this year after a stellar 2009, to be driven by stronger earnings from its regional operations, a more vibrant capital market and a better economy. CIMB is aiming for a higher 16% ROE this year, up from 2009’s 15%. "We had a very good 2009, financially as well as in the overall development of our regional franchise. Our regional model remains 'work-in-progress' and we are determined to realise its full potential over the next few years," group CEO Datuk Seri Nazir Razak said. (BT)

CIMB Group said it will wait till the global discussion on banks' capital requirement is over before it decides what to do with its excess capital. CEO Datuk Seri Nazir Razak had last year said that it may consider returning its excess capital once the fear of global recession subsides this year. "(Although) I don't think Basel 3 is embedded, there are still some worries.

• A stronger view will surface from the emerging market banks to question the extreme treatment (after the financial crisis)." Basel 3 is not really a concern for Malaysian banks at this stage, he said. (BT)

AXA Affin General Insurance has received the approval from Bank Negara to acquire 80% of BH Insurance (M) from Boustead Holdings and 20% from Felda Marketing Services Sdn Bhd. "It is a very good opportunity for us to build a stronger presence for general insurance in Asia," said AXA Asia General Insurance CEO Jan van den Berg.

• "The business portfolio and market sectors of the two companies complement each other and the combined strengths will reinforce our position in the market," said AXA Affin CEO Jahanath Muthusamy. (Bernama)

The Securities Commission (SC) will soon be making amendments to the guidelines for the unit trust industry to allow for greater flexibility and choices to meet investors’ needs, said chairman Tan Sri Zarinah Anwar. The SC chief said that among the key changes was allowing multiple currencies for unit trust funds. Timing-wise, she said, “It’s being worked on and as soon as we get the amendments ready, the SC will be publishing it.” (Starbiz)

The property market is set to rebound this year, according to an online poll by Malaysian property website, iProperty.com.Malaysia. The pool also showed that 34% of respondents expect prices to increase 1-9%. (Bernama)

Malaysian mills are hoping to raise rebar prices to track increases in the global market, according to market participants. “We are hoping to increase prices shortly. After all, international prices are rising,” an official at one Malaysian mill said. “The Chinese new year festive season is over, so there will be no more distractions. Several projects will be coming back (for material),” an official at another mill said.

• But demand in the first week after the holiday has been sluggish, according to market participants, and mills continue to list rebar at RM2,000-2,100 per tonne, unchanged from two weeks ago. “As yet, we haven’t seen any significant rise in demand,” a Singapore-based steel trader with operations in Malaysia said. (Metal Bulletin)

More licenses would be granted to small and medium enterprises in the telecom industry to encourage their involvement, particularly the mobile segment, said Communications and Culture Minister Datuk Seri Dr Rais Yatim. (Financial Daily)

Indian telco minister A Raja said the Indian government will issue a notice inviting applications (NIA) for bids from operators by the end of this week. The auctioning of 3G spectrum would start after 45 days of issuing the notice, he added, indicating that the auction will only take place by the next fiscal starting Apr 2010.

• "NIAs will be released this week. Then, auction can take another 40-45 days," Mr Raja said. The government will auction four slots of 3G spectrum in each circle in addition to the one already allotted state-owned BSNL and MTNL, he added. (Economic Times of India)

Asiaspace has targeted at least 3,000 to 5,000 WiMAX subscribers in 1Q10, with the launch of its "amax city". (Bernama)

Notion VTec is expecting its net profit and revenue to grow by over 20% for FYE9/10, backed by its growing business. Notion VTec plans to expand its production capacity in both its Thai and Malaysian operations. "We are looking at a third factory, which is located near to our existing plants.

• Hopefully, everything will be settled and be commercially up-and-running six months from now," executive chairman Thoo Chow Fah said. For the current FY, Notion VTec has allocated some RM70m for capex. Over the longer term, the company may set up a plant in China to cater to the increasing demands from customers. However, no timeframe has been set. (BT)

Trading of LKT Industrial’s shares will be suspended upon the expiry of five market days from Feb 23, after Singapore Precision Engineering raised its stake in the company to 90.94%. (Financial Daily)

Cycle & Carriage Bintang has appointed its current chief operating officer Wong Kin Foo as its chief executive officer. The appointment will take effect from March 1. (BT)

JCY International expects to start supplying hard-disk drive (HDD) components to Hitachi Ltd and Samsung Electronics Co before FYE9/10. JCY is currently in the pre-qualification stage, which involved testing processes, with both companies and also negotiating on prices, ED James Wong said.

• The two companies have a combined 61% global market share of HDD sales and JCY hopes to increase its market penetration to about 85% from its tie-ups with Hitachi and Samsung Electronics. (Starbiz)

Malaysian commercial radio stations are taken by surprise over the government’s recent that all stations need to air new local songs, effective next month. “We are surprised by the announcement and hope to seek an audience with the minister to clarify the matter,” said Commercial Radio Malaysia (CRM) association president Datuk Borhanuddin Osman.

• Yesterday, Information Communication and Culture Minister Datuk Seri Dr Rais Yatim announced that all radio stations should air new songs from local singers to promote the domestic music industry. (Bernama)

20100224 0905 Malaysia - Inflation in January 2010 expected to increase

"Inflation is likely to rise in January 2010 and in the coming months as the government may decide to cut subsidies further, said economists. Economists polled by the Business Times poll expect the consumer price index (CPI) to grow 1.44% in January 2010, up from 1.1% in December 2009. The full year CPI could be affected by the adjustment in petrol subsidies from May 2010. (BT)"

20100223 1820 FCPO EOD Daily Chart Study.

FCPO closed : 2635, changed : +4 points, volume : higher.
Bollinger band reading : bullish.
MACD Histrogram : reversed lower, buyer taking profit.
Support : 2620, 2590, 2570 level.
Resistant : 2650, 2670, 2700 level.
Comment :
Improved transaction volume FCPO ended marginally higher within a 40 points range market as buyer locking in profit when market reached higher level. Bullish outlook remained unchanged on the daily chart basis but MACD Histrogram movement has yet to synchronize with the upward movement. Expect market to trade upside biased in the near terms.
When to buy : buy at support/weakness/break out with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100223 1726 FKLI EOD Daily Chart Study.

FKLI closed : 1270, changed : +4 points, volume : higher.
Bollinger band reading : side way.
MACD Histrogram : rising higher, buyer turned a little aggressive.
Support : 1260, 1250, 1235 level.
Resistant : 1270, 1278, 1290 level.
Comment :
8 points range FKLI ended the day at the high with supportive volume changed hand. Technical wise, Bollinger band still suggesting a side way range bound market but MACD Histrogram shows a improved market sentiment for the market to surge higher. Overall, expect market to trade side way range bound with some test at higher resistant level but has yet to turned bullish.
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.

20100223 1258 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1268.5, changed : +2.5 points, volume : high.
Bollinger band reading : side way upside biased.
MACD Histrogram : improve slightly, buyer still in control.
Support : 1260, 1250, 1235 level.
Resistant : 1270, 1278, 1290 level.
Comment :
FKLI traded firmer with improved volume transacted. Hourly chart reading suggest that market is likely to trade side way range bound with a little upside biased but still trading within the immediate support and resistant range.

20100223 1236 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2634, changed : +3 points, volume : low.
Bollinger band reading : upside biased.
MACD Histrogram : sliding lower, partial profit taking.
Support : 2620, 2590, 2570 level.
Resistant : 2650, 2670, 2700 level.
Comment :
FCPO opened at the high and follow by profit taking activities pushed price lower to ended the first session just 3 points higher with encouraging volume. Hourly chart outlook remained bullish with further upside potential but having said that market is still trading with the immediate support and resistant range since yesterday.

20100223 1003 Malaysia Corporate News.

Astro All Asia Networks has won its case against Lippo Group for a failed Indonesian pay-TV venture.The Singapore International Arbitration Centre (SIAC) has ruled in favour of Astro to recover US$230m (RM787m) from the Lippo Group over a failed Indonesian pay-TV venture.

• Astro has sought to recover the value of support and services it provided to PT Direct Vision from Mar05-Oct08. PT Direct Vision, a joint venture between Astro and Lippo Group, managed the now-defunct Astro pay-television service in Indonesia. 
• SIAC's ruling states that PT Direct Vision is liable for US$230m and PT First Media Tbk and PT Ayunda Prima Mitra are jointly and severally liable with PT Direct Vision for US$95m. The $230m award is 87% of the compensation sought by Astro. (BT, Financial Daily) This is a positive surprise to us and the market. The RM787m awarded works out to be RM0.41/share. However, we believe the recovery of the awarded amount will be protracted.

EON Capital has postponed a special shareholder meeting yesterday after about 6% of the owners cannot vote on the resolutions due to technical matters. The meeting is adjourned to 15 Mar. "The shareholders have agreed to adjourn the extraordinary general meeting (EGM) upon recommendation of the requisitionist based on some technical irregularities," K&N Kenanga Holdings' group director Tengku Zafrul Aziz said. K&N is the corporate adviser for several EONCap shareholders, including businessman Rin Kei Mei, who has called for the meeting to add eight new directors to the board.

• EONCap's current board recently shot down a takeover bid by bigger rival Hong Leong Bank Bhd, prompting Rin, who is keen to sell his 15.4%, to plot a change in the board composition. The move would ultimately pave way for Hong Leong's proposal to be reconsidered. 
• "Slightly more than 6% of the shareholders have made the chairman their proxy, but under Companies Act, a proxy has to be either a shareholder, a practising lawyer, or an approved company auditor," Tengku Zafrul said. EONCap chairman Tan Sri Syed Anwar Jamalullail is neither a lawyer nor company auditor, and he does not own shares in the company, which means he is not a qualified proxy and thus cannot vote in the meeting.
• It was an oversight on the part of Syed Anwar and the shareholders who made him a proxy, but Rin has agreed to postpone the meeting on the ground that all shareholders are able to vote on the resolutions. (BT)

Malaysia may see weak palm oil production growth for a second straight year and miss government output target as yields suffer due to the current hot weather, estate owners said.

• Hotter-than-usual weather, due to the resurgent El Nino weather condition, has aggravated the biological stress that oil palms are experiencing after seasonally higher production in the last quarter of 2009, they said. Biological tree stress refers to weaker yields after a period of high productivity. 
• Estate owners in mainland Malaysia and states on Borneo island say the dry spell could now extend Malaysia's low palm oil production period seen in the first quarter of this year to June and lift prices of the vegetable oil.
• The dry weather in February will also stunt the development of oil-rich palm flowers that take about six months to mature and produce fresh fruit bunches during the peak production period in the fourth quarter, they explained. ' 
• We are unlikely to hit the government's forecast of an additional 500,000 tonnes of palm oil if the hot weather continues to persist,' said a plantation owner with holdings in Malaysia and Indonesia. Palm oil estates in mainland Malaysia and the top producing state Sabah on Borneo island are dependent on surface water sources for irrigation. (Reuters)

A planned new palm oil futures contract in Indonesia, faces an uphill struggle against an established Malaysian rival and the imminent launch of a US competitor. The Indonesia Commodity & Derivative Exchange (ICDX) aims to launch the contract in April, but is chasing trading volumes of more than four million lots a month on Bursa Malaysia, the stock exchange in its neighbour.

• The move is the second attempt to create an Indonesian benchmark price, providing a better reflection of local supply and demand, and eliminating currency risk. But clouding the new exchange's prospects is a plan by the world's largest derivatives exchange, CME Group Inc, to develop a US dollar palm oil contract based on Malaysia's ringgit contracts for trade on its Globex platform. 
• The absence of regular data from Indonesia and most users' preference for Malaysia's pricing benchmark will also make it tougher for the Indonesian contract to gain a toehold. (SBT)

CPO futures on Bursa Malaysia Derivatives closed firmer yesterday, bolstered by rising crude oil and soy prices. A dealer said the expected lower production due to the hot weather, was likely to further boost market sentiment. The palm price was expected to reach around RM2,700 this week, he added.

• Cargo surveyor Societe Generale de Surveillance reported that Malaysian palm oil exports for the Feb 1-22 period slipped 8.4% to 865,593 tonnes from 945,311 tonnes in the first 20 days of January. (BT)

PPB Group’s 4Q09 results announcement will be delayed, as it waits for 18.4%-owned Singapore-based Wilmar International to announce its results. Wilmar told the Singapore Exchange it will announce its full-year results on March 1. PPB targets to release its 4Q report to Bursa Malaysia the day after i.e. on March 2. (BT)

The Science, Technology and Innovation Ministry is looking into awarding incentives to those who venture into "green" electricity generation, said minister Datuk Seri Dr Maximus Ongkili. "Supporting packages from related agencies also need to be streamlined to spur innovation in the green energy field. This will help boost the waste to wealth industry," he added. (Bernama)

Maxis is looking to raise a syndicated term loan facility of USD750m and term loan facility of RM2.5bn to pay amounts owing to Maxis Communications Bhd. (Bursa Malaysia)

Local Islamic banks need to innovate more to remain competitive within the industry following the government's move to liberalise the financial services sector. "I think it is a question of survival for competitors.

• Local players need to buck up and innovative more to effectively compete. "With foreign banks stating an interest in moving to Malaysia, it is essential that they do this to move ahead," said Bank Islam MD, Datuk Seri Zukri Samat. (Bernama)

The improved market situation and consumer sentiment and the launch of several new models pushed vehicle sales in Jan-2010 to 50,622 units, up 33% yoy. The Malaysian Automotive Association (MAA) said sales volume improved 6% mom.

• "Of the total units sold, 45,973 units were passenger vehicles and 4,649 commercial vehicles," it said. Sales volume, however, was expected to be lower in Feb due to seasonal shorter working month due to the Chinese New Year holidays and company closures. (Bernama)

Mah Sing is projecting RM1bn sales this year. The company believes the property market is improving, reflected by stronger sales, better consumer sentiment and business conditions as well as rising household loan applications and approvals. Mah Sing will continue to aggressively introduce its property projects this year.

• It also targets to launch its first overseas project in Wujin, China, this year. Meanwhile, the developer also announced the acquisition of 6.32 acres of land in Cyberjaya for RM21.7m from Cyberview Sdn Bhd. (BT)

Property developer Ibraco is buying a piece of land measuring 15.69ha in Kuching, Sarawak, for RM22m. Approvals have been obtained for various development with an estimated GDV of RM404.7m. (BT)

The proposed acquisition of KNM Group Bhd’s assets will funded by a close to 50:50 debt to equity ratio, worth a total of RM4.3bn, with Goldman Sachs investment banking division providing the bulk of the lending, sources said.

• The debt portion of the deal is believed to include a refinancing of all of KNM’s existing group debt. The equity portion will be taken up by three parties – Goldman Sachs private equity (GS Capital Partners VI Fund), Mettiz Capital Ltd and Lee Swee Eng. 
• Lee is KNM MD and major shareholder and is participating in the deal through his vehicle, BlueFire Capital Group. Mettiz Capital is a company incorporated in the British Virgin Islands and is an investment vehicle of one Michael Tang Vee Mun.
• It is understood that the debt portion will be at a ratio of 4x-5x earnings before interest, tax, depreciation and amortisation (EBITDA) of KNM. “For any acquirer to maximise return on its investment, he would want to borrow as much as possible and current market conditions should support around 4x-5x EBITDA,” the source said. (Starbiz)

General insurer Overseas Assurance Corp (M) Bhd (OAC Malaysia), the local general insurance arm of the Great Eastern Holdings group, will start talks to buy the general insurance business of Tahan Insurance Malaysia. Tahan said this followed the closure of its tender exercise and that the final terms and conditions of the sale are subject to approval from relevant authorities. (BT)

20100222 1814 FCPO EOD Daily Chart Study.

FCPO closed : 2631, changed : +35 points, volume : higher.
Bollinger band reading : bullish.
MACD Histrogram : resume higher, buyer still in control.
Support : 2620, 2590, 2570 level.
Resistant : 2650, 2670, 2700 level.
Comment :
FCPO opened higher and traded side way range bound within a tight 17 points range forming doji bar candle with improving volume transacted. Daily chart and indicators still suggesting for a bullish further upside potential market but the only element missing here is volume traded was comparatively lower for a sustainable upward movement and hopefully higher volume will returned to the market in the near term.
When to buy : buy at support/weakness/break out with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target

20100222 1736 FKLI EOD Daily Chart Study.

FKLI closed : 1266, changed : +14 points, volume : higher.
Bollinger band reading : side way bearish biased.
MACD Histrogram : improving, short covering with buyer appetite improved.
Support : 1260, 1250, 1235 level.
Resistant : 1270, 1278, 1290 level.
Comment :
FKLI ended the day higher but closed 22 points off the high of the day forming a shooting star candle. Despite today severe upward surge movement, daily chart technical reading has yet to change and remained bearish biased with side way range bound movement likely.
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.

20100222 1311 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1268, changed : +16 points, volume : high.
Bollinger band reading : sentiment turned positive.
MACD Histrogram : getting higher, buyer returned to the market with short covering.
Support : 1260, middle Bollinger band, 1250 level.
Resistant : 1270, 1278, 1290 level.
Comment :
Wild FKLI opened and traded higher in tandem with Asia major market that fluctuated within a huge 29.5 point range. Hourly chart wise, the outlook turned bullish with further upside potential but the over upward extended first hourly candle of today could triggered market to consolidate side way before testing higher resistant level.

20100222 1248 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2626, changed : +30 points, volume : low.
Bollinger band reading : upside biased.
MACD Histrogram : reversed and climb higher, buyer in charge still.
Support : 2620, 2590, 2570 level.
Resistant : 2650, 2670, 2700 level.
Comment :
Firmer soy oil futures price lead FCPO to opened and trade higher for the morning session despite weaker export data release by ITS export cargo surveyor. Technical hourly chart reading suggest that market is likely to trade side way range bound upside biased as 2620 level still supported well.

20100222 1012 Malaysia Corporate News.

Sime Darby's 2QFY10 numbers to be released this week may show more losses in the oil and gas sub-segment of its energy and utilities division, arising from one of its Qatar projects. Sources say the sub-segment is expected to make a provision of more than RM100m for the Qatar Petroleum project. The division also recently saw the earlier-thanexpected departure of its head Datuk Mohamad Shukri, who resigned in January. His post has been filled by Hisham Hamdan. (theedgeweekly)

The dry spell over Sabah that has triggered numerous farm and bush fires is expected to continue for another two months. Sabah Meteorological Department director Abdul Malik Tusin said that the dry spell in the state was due to the tail end of the Northeast monsoon that usually begins in November and ends by March.

• I expect the dry conditions to continue till April in Sabah, he said, adding that the northeast monsoon during December and January had brought severe flooding to Sabah. ''This month, we only recorded 0.4millimetre of rainfall compared to 210mm in the whole of January (when floods hit Sabah),” he said. He said the dry spell was part of the El Nino phenomenon that was being globally felt since June. (NST) 

If prolonged, the dry spell could lead to lower-than-expected palm oil output for the country. Sabah accounted for 31% of total palm oil output in 2009.

Maybank’s subsidiary Bank Internasional Indonesia (BII) has proposed a rights issue amounting to 1.4tr rupiah (RM513m) to strengthen its balance sheet and to enable it to meet its investment and longer-term growth goals in Indonesia. The fund-raising exercise will involve the issue of 6.2bn new shares on a one-for-eight basis at 225 rupiah apiece, or at a discount of nearly 23%.

• As the 97.5% shareholder, Maybank has agreed to subscribe to its full entitlement. Maybank said it would also take up any excess rights shares not subscribed to or renounced by other entitled shareholders.
• The proposal is subject to BII shareholder approval. It is expected to be completed in the second quarter of the year. (Business Times) 

We see limited impact of the above as it is akin to injecting additional capital into its subsidiary, in which Maybank has a controlling stake of 97.5%. Furthermore, the RM513m additional investment only accounts for about 2% of Maybank’s shareholders’ funds. The above could even be positive if BII can beef up its loan growth and keep the credit cost low as the return on the lending business in Indonesia is more lucrative with net interest margin of 6%+ compared to only 2.3% in Malaysia.

Peninsular Malaysia and Sarawak appears to be tussling yet again for power from the soon-to-be completed 2,400MW Bakun hydroelectric dam. Sources suggested that the bone of contention is that instead of Tenaga getting power solely from Bakun, it will draw power from the Sarawak state grid. Meanwhile, another competing source for Bakun’s hydropower is plans to set up several power-guzzling aluminium smelter plants in Sarawak. (The Edge Weekly) For more details and comments, please refer to our QT on the power sector today.

The heat wave has resulted in an unprecedented spike in electricity usage with Tenaga revealing that two records were set in less than a week recently. On Feb 4, power demand stood at 14,384MW. Six days later, that record was broken when a new peak maximum demand of 14,417MW was recorded. (NST)

Malaysia expects to attract at least three more big foreign investments involved in solar energy this year. The three FDIs, averaging RM1bn each, are expected to come from the US, Japan and Europe. So far, Malaysia has attracted a few large firms like solar panel makers First Solar, Q-Cells and Sunpower.

• Malaysian Industrial Development Authority DG Datuk Jalilah Baba said Malaysia can take the lead of being the solar hub in the Asean region. However, what is crucial is how much Tenaga would pay for solar power. (BT)

Malaysia is not destroying its forests to plant oil palm trees, said Sabah Finance Assistant Minister Datuk Tawfiq Abu Bakar Titingan. He said any allegation pertaining to it was absolutely not true because the country adopted a firm policy and forestry laws that clearly state that forest reserves should remain untouched.

• "Our government has identified agriculture and plantation areas. The government has already gazetted those areas," he said, commenting on a campaign by Marks & Spencer against palm oil in the United Kingdom. (Bernama)

CIMB Group Holdings plans to buy a 32.2% stake in Touch N' Go (TnG) from UEM Group and UEM Builders for RM53.8m. Once completed, the deal will bring CIMB's total stake in TnG to 52.2% from 20%. UEM Group will retain a 20% stake in TnG, while MTD Capital owns the balance 27.8%t. TnG, the electronic toll collection operator, posted a net profit of RM15.6m for the FY12/09. (BT)

Alliance Bank Malaysia's lawyers have completed their assessment of the answers CEO Datuk Bridget Lai provided in an internal probe. It is now up to the board to consider the lawyers' legal advice, sources said, declining to elaborate on what the legal advice entailed. It is understood that the board will make a decision on what to do soon, either at a monthly board meeting late next month or at an earlier special meeting.

• Lai, as well as COO Shim Kon Teck, had each been required to answer a set of questions as part of the board's probe. They provided their answers on 25 Jan, and these were then evaluated by the bank's lawyers and an independent external auditor. (BT)

Genting Group’s chairman Tan Sri Lim Kok Thay expects Resorts World Genting to have the edge over Resorts World Sentosa (RWS) because of the cool weather. Meanwhile, Lim also announced that the Genting theme park would be improved and upgraded with more exciting rides. He expressed confidence that the opening of RWS would not affect tourist arrivals at Genting Highlands as both IRs had their own attractions and strengths. (The Star)

Tiger Airways will provide a chartered aircraft that will exclusively fly foreign guests visiting Genting Singapore’s Resorts World Sentosa (RWS). Under the agreement, RWS will take over the lease of the aircraft. The plane will be staffed by pilots and cabin crew from Tiger Airways. The service is scheduled to commence late this year. (AFP)

The Baltic Dry Index stayed positive on Friday with hopes that cargo demand would pick up after China returned from holiday. The index, which gauges the cost of shipping resources including iron ore, cement, grain, coal and fertiliser, rose 0.37% or 10 points to 2,714 points.

• Brokers said there was better interest in the Pacific for vessels especially capesize ships, which typically haul 150,000 tonne cargoes such as iron ore and coal. Ship queues at ports in China and at other major terminals in Australia and Brazil remained high, helping to bolster freight rates, brokers said. 
• Analysts said freight rates could come under pressure due to worries over the rising number of new ships set to hit the market this year, despite indications of some vessel cancellations and delays. (Reuters, BT)

Qantas Airways forecast an increase in business class fares as demand recovers after a global travel slump. "We are seeing the business market demand improve," Alan Joyce, chief executive officer of Sydney-based Qantas, told Sky News Business yesterday. "The economics will have to change and fares, particularly in business class, will have to increase. It's basic supply and demand. As you get more demand for that capacity, it brings back pricing power for the airlines," according to Joyce. (Bloomberg, BT)

The Malaysia Airlines Travel Fair 2010 (MATF’10) until March 7 is dangling attractive offers to customers including a 75% discount to 49 destinations worldwide. The travel period starts from March 24 until Jan 14 next year. MAS will also be extending these offers to its customers in Singapore, Thailand, Brunei, Cambodia, Vietnam and Myanmar, where the fair will run concurrently.

• Customers can purchase one-way air tickets to any destination in Asia; starting from as low as RM133 to Medan, RM213 (Phuket) and RM359 (Hong Kong). Those planning on flying down south can fly at only RM639 to Perth one-way, and RM1,069 to Melbourne (one-way). 
• Customers heading to Europe can opt to fly one-way to London, Paris or Rome for only RM1,549. A trip to Bangkok will cost RM264; Beijing (RM487), Sydney (RM754) and the Gold Coast (RM816). (Star)

Felda Holdings is putting in place strategic Clean Development Mechanism (CDM) projects encompassing 56 biogas plants, six compost plants, one pellet plant and two independent power producer (IPP) plants nationwide. The CDM projects will use biomass waste such as empty fruit bunches (EFB) and palm oil mill effluent (POME) derived from 70 palm oil mills owned by Felda unit Felda Palm Industries Sdn Bhd (FPI).

• FPI senior GM Mokhtar Mat Min said: “It is ideal for a big plantation operator like Felda to fully tap its abundant biomass waste and convert it into renewable green energy, which can also be a new income generating source for the group.” 
• “Despite our focus to become a dynamic global conglomerate, we recognised the important need to be a socially responsible group practising environmentally friendly methods in every aspect of our operation,” Mokthar added. (Starbiz)

The increase in the number of broadband providers will put pressure on prices, prompting providers to focus on the quality of service to win customers over, said the Michael Lai, CEO of Packet One. "The increasing number of competitors will put pressure on margins, but we believe that customers are willing to pay for quality of service and value-added services." (Financial Daily)

Tune Talk's CEO Jason Lo dismissed rumours of a possible IPO once it achieves 1m subscribers. Tune Talk expects to achieve the target by August this year, which will be within its first year of operation. This will be achieved by boosting its distribution channels, innovative marketing and communications strategies and Web-based approach.

• "The decision to list (on local bourse) lies in the hands of the shareholders. For the moment, there are no such plans although Celcom can increase its stake to 51% under the shareholders' agreement. 
• "Despite the company recording some 600,000 subscribers within six months of its launch in August last year, its active subscribers are roughly 200,000 or more. (BT)

Tanjung Offshore plans to raise funds to refinance existing loans, buy new vessels and for working capital, say MD Omar Khalid. The company is looking at various financing packages to take advantage of the current low interest rate. "We have quite a few options on the table. We'd like to explore these options because the interest rate is low and it makes more economic sense in the long term," he said. (BT)

The Sunway Pyramid Shopping Mall plans to be Malaysia's biggest mall by size within the next five years as it adds two new phases to the mall. Called "SP3" and "SP4", the two phases form part of Sunway City's planned development on a 2.35ha open car park land adjacent to the existing Sunway Pyramid and the Sunway Lagoon Theme Park.

• Currently, Sunway Pyramid has a total gross floor area of 4.5m sf and net lettable area (NLA) of 1.7m sf. CEO Sunway Group of Shopping Malls, H.C. Chan, said SP3 will see 0.5m sf added to the gross floor area of the mall.He did not say what the NLA will be, but typically 65-70% of a mall's gross floor area makes up the NLA. (BT)

Sunway Pyramid S/B, Sunway Group's retail arm that operates its flagship shopping mall Sunway Pyramid, hopes to see its pretax profit and revenue improve by at least a tenth this year, as consumers loosen their purse strings. In FY Dec-09, the mall chalked up a pre-tax profit of RM120m, from RM100m a year ago.

• "We target about 10-12% growth in both pre-tax profit and revenue this year," its CEO H.C. Chan said. Chan's confidence stems from the positive economic trend since 4Q09, particularly in the month of December. (BT)

KPJ Healthcare will remain focused on its healthcare business and not look to pick up government concession businessess, says MD Datin Paduka Siti Sa'diah Sheikh Bakir. The company has no plans to buy foreign worker health check company Fomema Sdn Bhd from its rival Pantai Holdings.

• Pantai Holdings is believed to be looking to sell its Malaysian government concession businesses, Pantai Medivest S/B and Fomema, to focus on growing its hospital business, according to the daily last Thursday. 
• Fomema, which has a 15-year concession ending in 2012, was created to implement, manage and supervise nationwide mandatory health screening programme for all legal foreign workers in Malaysia. (BT)  

20100219 1835 FCPO Weekly Chart Study.

FCPO closed : 2596, changed : +17 points, volume : lower.
Bollinger band reading : side way upside biased.
MACD Histrogram : rising higher, buyer still defending.
Support : 2521, middle Bollinger band, 2400 level.
Resistant : 2600, 2650, 2740 level.
Comment :
The 3 transaction days holiday mood FCPO market still managed to end slightly higher with lower volume transacted after trader reduced positions during the long holidays. Weekly chart wise, outlook remained unchanged with a side way range bound upside biased market.

20100219 1824 FCPO EOD Daily Chart Study.

FCPO closed : 2596, changed : -4 points, volume : higher.
Bollinger band reading : bullish.
MACD Histrogram : getting weaker, buyer closing position.
Support : 2590, 2570, 2521 level.
Resistant : 2620, 2650, 2670 level.
Comment :
Seems like the drop in major world commodities futures market have little impact on FCPO that ended the day slightly lower with higher volume changed hand. Daily chart outlook remained unchanged with bullish biased with further upside potential.
When to buy : buy at support/weakness/break out with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100219 1802 FKLI Weekly Chart Study.

FKLI closed : 1252, changed : +7.5 points, volume : lower.
Bollinger band reading : side way with slightly downside biased.
MACD Histrogram : getting lower but smaller scale, seller still in.
Support : 1250, 1232, 1200 level.
Resistant : middle Bollinger band,  1274, 1285 level.
Comment :
Not much change on the FKLI weekly chart reading that still call for a side way range bound market with some test at support and resistant level. Expecting market to consolidate further in the near term.

20100219 1728 FKLI EOD Daily Chart Study.

FKLI closed : 1252, changed : -2.5 points, volume : higher than yesterday.
Bollinger band reading : bearish side way.
MACD Histrogram : recovering higher, buyer maintaining small position.
Support : 1250, 1232, lower Bollinger band level.
Resistant : middle Bollinger band, 1260, 1267 level. Comment :
FKLI closed marginally lower with improved volume despite major Asia market ended lower severely after tested below and still managed to closed above the 1250 support level ended the day with a small 6.5 point range doji bar candle. Daily chart technical view remained bearish biased with side way range bound market likely in the near term.  
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.

20100219 1254 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1248.5, changed : -6 points, volume : low.
Bollinger band reading : bearish.
MACD Histrogram : getting lower, seller return, buyer backing off.
Support : 1245, 1232, 1223 level.
Resistant : 1250, middle Bollinger band, 1260 level.
Comment :
FKLI traded lower in unison with major Asia regional market after the FED decided to raise discount rate among banks. Hourly chart development continue to show bearish reading with further downside potential for the near term.

20100219 1241 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2590, changed : -10 points, volume : low.
Bollinger band reading : side way range bound.
MACD Histrogram : getting lower, buyer off loading position.
Support : 2570, 2550, 2521  level.
Resistant : 2590, 2620, 2650 level.
Comment :
Crude palm oil futures traded weaker in low volume following soy oil futures price dropped due to stronger US Dollar after Bernanke announced a surprise quarter-point discount rate hike. However the hourly chart of FCPO has yet to turn bearish and still trading in a side way range bound market with some testing effort at support and resistant level.

20100219 0926 Malaysia Corporate News.

Two leading luxury carmakers have questioned plans by the Government to link the petrol subsidy to engine capacity, saying such a scheme overlooks fuel efficiency and also incentives to manufacturers under the revised National Automotive Policy (NAP).

• “As BMW Malaysia views the situation, the problem with designing a fuel subsidy programme around the engine capacity of a vehicle is that small engine capacities alone do not necessarily mean better economy,’’ said BMW Group Malaysia managing director Geoffrey Briscoe. 
• “A new structure, merely based on engine capacity, does not solve any problem,’’ said Mercedes-Benz Malaysia. Another point Mercedes-Benz Malaysia highlighted was that the upcoming petrol subsidy scheme contravenes the revised NAP. “The NAP 2009 liberalises manufacturing passenger vehicles with engine capacity of 1,800cc and above and on the road price of not less than RM150,000,’’ it said. “The implementation of two price structures for fuel may not support this new regulation.’’
• Datuk Mokhzani Mahathir, who is a shareholder of Porsche franchise in Malaysia, too believes the subsidy system based on engine capacity is flawed. "I think this is a dangerous precedent where consumers are penalised at the point of sales because of what they have chosen to purchase. The luxury car owner is already penalised via duties, high road tax, high insurance cost, etc,’’ he said. (Starbiz)

Work on the Gemas-Johor Baru dual tracking rail project awarded to a company from China will begin soon, said Transport Minister Datuk Seri Ong Tee Keat. “This project is a major step forward in developing the state further,” said Ong during his visit to the Segamat Inland Port. He said in order to upgrade the current railway services, the country should consider having wider tracks that would be able to accommodate high speed trains.

• As for the Padang Besar-Johor Baru tracking project, Ong said compensation to squatters and land owners including the state governments was settled before Chinese New Year. 
• On the Segamat Inland Port, Ong said the ministry was looking into reviving it. “We found that one of the major reasons for the closure of the port in 2006 was the management,” he said. He also added that he would be talking to businessmen in the area to gain feedback and gauge the viability of reopening the port. The cost of building the Segamat Inland Port is estimated at about RM21m. (The Star)

Alliance Bank Malaysia is close to completing its internal probe with the board meeting yesterday to discuss chief executive officer Datuk Bridget Lai’s replies to the questions posed to her as part of the probe, informed sources said. “The board has gone through Lai’s responses with legal counsel. The meeting was to deliberate on whether the answers are satisfactory,” a source said, adding that the bank might issue a statement on the outcome of the probe soon. The sources added that the board hoped to close the investigations by next month. The internal probe concerned operational matters which started with renovations done in the bank’s property department. (Starbiz)

Malaysia Airline System (MAS) along with 11 other defendants have been served with a complaint filed in the US District Court of New York on allegations of price fixing on airfreight shipping services and related surcharges. "At this juncture, no infringement has been established," said MAS. "The recently served complaint does not make any mention of the quantum of damages sought againt MAS. MAS is currently taking legal advice in relation to the complaint." (Financial Daily)

Pantai Holdings plans to sell its Malaysian government concession businesses as it seeks to focus on growing its hospital business, sources say. The group, owned by Khazanah Nasional and Singapore's Parkway Group, holds a long-term contract to provide services like laundry to public hospitals in three states and another for foreign worker health checks. It is believed that Pantai has already approached potential suitors like GLCs or government-linked investment funds for the sale. "It's hospitals that they can add value to, there's not much value to add for concessions," said one source. (BT)

There is no issue of Permodalan Nasional Bhd (PNB) holding equities of PLCs static, says president and group CEO Tan Sri Hamad Kama Piah Che Othman when asked to comment on calls for PNB to reduce its stakes in PLCs to increase market liquidity. PNB holds equities in 300 listed and non-listed companies, including heavyweights like Maybank and Sime Darby. (Bernama)

Newly appointed CIMB Thai chairman, Chakramon Phasukvanich, has set three priorities towards laying a stronger foundation for the bank and achieving a better result this year – i) reduce Non-Performing Loans (NPLs), ii) find a niche market for SME customers and iii) expand the bank's operation into Indo-China. "Coupled with the dual listing, the bank is projected to make a better profit by end of this year," he added. (Bernama)

Telenor Connexion AB, a wholly-owned unit of Telenor ASA, is in talks with Malaysian carmakers, including Proton Holdings, to offer its machine-to-machine (M2M) service. "We have engaged talks with Proton, we are still in early stage of negotiations," said Telenor Connexion global business development executive (automotive) Per Lindberg. The company is also in talks with Indian carmakers. (BT)

The finance ministry of India has said it is keen on the 3G auction in the current fiscal itself, but it is not yet counting for the proceeds from the auction in the current financial year, indicating a somewhat lower energy in the government for completing the auction before Mar 31. “We are not looking at money this year... We are not accounting for it. The auction can happen whenever the schedule permits,” said finance secretary Ashok Chawla. Finance minister Pranab Mukherjee, headed empowered group of minsiters (eGoMs), had put a target of Rs 35,000 crore from the sale of airwaves in the current fiscal. (Economic Times of India)

Khazanah Nasional has defended its decision to acquire a 10% stake in Oriental Universal City (OUCL) from Raffles Education Corp for US$44m (RM149.58m) stating that the investment fulfilled its strategic objectives and its financial returns requirement. (Malaysian Reserve)

OSK Holdings has a new indirect subsidiary to undertake stockbroking, corporate finance, underwriting, placement and other related activities in Cambodia, after obtaining approvals from Cambodia’s Ministry of Commerce. (BT)

PT Hanjaya Mandala Sampoerna Tbk (HM Sampoerna), a maker of 'kretek' or clove cigarettes, will shut down its operations in Kuala Lumpur by May to tap the low import duty following the implementation of the Asean Free Trade Agreement (Afta) from January this year. A spokesperson at HM Sampoerna, the subsidiary of Philip Morris International, said the implementation of the lower import duties means its factory in Malaysia is no longer viable. "Based on this fact and as part of our ongoing effort to enhance productivity and improve operational efficiency at the company, HM Sampoerna has made the decision to source products for Malaysia from Indonesia," the spokesperson said. (BT)

Tanjung Offshore’s subsidiary, Citech Energy Recovery Systems UK Ltd (CERS), has clinched a £5m (RM26.6m) contract from Solar Turbines of the US for the supply of a waste heat recovery package. The contract, involving the manufacturing, assembly, testing and delivery of the spare parts package, is expected to be completed within the next 15 months. (BT)

Sapura Resources has not decided on the sale of its wholly-owned subsidiary Sapura Auto's BMW dealership, the company said. Sapura Resources clarified that "no finalised decision on the matter has been made by the company" and that it would make the necessary announcement to the exchange when the time was right. (Financial Daily)

20100218 1806 FCPO EOD Daily Chart Study.

FCPO closed : 2600, changed : -28 points, volume : lower.
Bollinger band reading : bullish still.
MACD Histrogram : reversed lower slightly, buyer taking partial profit.
Support : 2590, 2570, 2521 level.
Resistant : 2620, 2650, 2670 level.
Comment :
Low volume FCPO ended the day at the low within a tight 17 points range market. Technically the daily chart still look bullish biased with further upside potential as Bollinger band width still continue to expand outwards.
When to buy : buy at support/weakness/break out with larger cut loss and profit target.
When to sell : sell at resistant or strength with larger quick cut loss and profit target

20100218 1745 FKLI EOD Daily Chart Study.

FKLI closed : 1252.5, changed : -5.5 points, volume : lower.
Bollinger band reading : bearish side way.
MACD Histrogram : recovering, buyer taking small exposure.
Support : 1250, 1232, lower Bollinger band level.
Resistant : middle Bollinger band, 1260, 1267 level.
Comment :
FKLI closed lower with thin volume traded. Once tested the immediate resistant at the middle Bollinger band level and support level near 1250 but still managed to closed off the low with last minutes push during pre-matching phase forming a down doji bar candle. Daily chart still bearish sided with side way range bound market likely as the Bollinger band width continue to squeeze inwards.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with larger cut loss and profit target. 

20100218 1313 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1254.5, changed : -3.5 points, volume : lower.
Bollinger band reading : neutral.
MACD Histrogram : getting lower, buyer closing position.
Support : 1250, lower Bollinger band, 1232.
Resistant : 1260, upper Bollinger band, 1267 level.
Comment :
FKLI traded weaker within a 5 points range market in the morning session. Hourly chart seems like turning from a bullish to a neutral reading as price hovering around the middle Bollinger band. Expect market to trade side way range bound with a little upside biased as the immediate trend still up.

20100218 1256 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2616, changed : -12 points, volume : low.
Bollinger band reading : bullish.
MACD Histrogram : getting lower slowly.
Support : 2605, 2590, 2570 level.
Resistant : 2620, 2650 level.
Comment :
FCPO traded slightly lower in tandem with a weaker soy oil futures price with not much participation volume today by both buyer and seller. Hourly chart reading remained bullish biased. Expect market to trade side way range bound upside biased with some testing of support and resistant.