Friday, February 19, 2010

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)