20100305 1842 FCPO Weekly Chart Study.

FCPO closed : 2670, changed : +75 points, volume : higher.
Bollinger band reading : side way upside biased.
MACD Histrogram : rising slowly, buyer taken some exposure.
Support : 2580, 2530, 2500 level.
Resistant : 2730, 2800, 2850 level.
Comment :
FCPO ended higher week on week with better volume changed hand. Weekly technical chart suggesting that the market is likely to trade side way range bound upside biased after market testing the 2580 crucial support level for the third time.

20100305 1819 FCPO EOD Daily Chart Study.

FCPO closed : 2670, changed : -4 points, volume : slightly lower.
Bollinger band reading : upside biased.
MACD Histrogram : getting higher, buyer still in.
Support : 2670, 2650, 2620 level.
Resistant : 2700, 2730, 2750 level.
Comment :
Profit taking activities lead FCPO to retreated lower in the second hald session ended the day marginnaly lower. Technically, the daily chart reading still suggesting a upside biased market with possible side way range bound correction as price touched the upper Bollinger band for the second time and today candle ended with a long upper shadow doji bar.
When to buy : buy at support/weakness/break up with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100305 1755 FKLI Weekly Chart Study.

FKLI closed : 1303, changed : +27 points, volume : lower.
Bollinger band reading : side way with a little upside biased.
MACD Histrogram : recovering. buyer taking chances.
Support : 1300, 1270, 1230 level.
Resistant : 1310, 1350, 1390 level.
Comment :
Weekly chart reading shows that market is just started to turned positive from a side way range bound market. Should Bollinger band continue to expand wider in the coming week, market is likely to trade further upside. But else the side way range bound market will likely continue.

20100305 1736 FKLI EOD Daily Chart Study.

FKLI closed : 1303, changed : +18 points, volume : higher.
Bollinger band reading : bullish.
MACD Histrogram : reverse upward. buyer turned aggresive.
Support : 1300, 1295, 1290 level.
Resistant : 1307, 1315, 1325 level.
Comment :
Seems like market is welcoming the Bank Negara rate hike announcement that indicate our country economy is getting better to a certain extend and banks are direct beneficiary of this move with few banking stocks flying high today. FKLI also traded strongly that ended on 4 points premium against cash market with higher volume transacted. The same goes to daily technical chart that shows a bullish outlook with crucial resistant at previous January high. Expect market to trade upside biased with possible side way market for consolidation.
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.

20100305 1456 FKLI Mid Day Hourly Chart Study.

FKLI last looked : 1296.5, changed : +11.5 points, volume : moderate.
Bollinger band reading : bullish but overbought.
MACD Histrogram : rising higher. buyer in charge.
Support : 1290, 1285, 1280 level.
Resistant : 1295, 1300, 1307 level.
Comment :
Bank Negara Interest rate hike policy seems didn't bothered by FKLI bullishness to go the distance by trading higher. Hourly chart also continue to stay bullish biased with possible correction to take place soon as price surging pace is a little too fast take might triggered buyer to lock in profit.

20100305 1234 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2683, changed : +9 points, volume : high.
Bollinger band reading : bullish but possible correction.
MACD Histrogram : rising, buyer add position.
Support : 2670, 2650, 2620 level.
Resistant : 2700, 2730, 2750 level.
Comment :
FCPO continue to trade higher with better volume ahead of the palm oil conference next week despite weaker soy oil futures price. Chart wise remain bullish biased with possible correction downward as price once traded way above the upper Bollinger band triggered an overbought condition. Expect market to go side way range bound with some test of support before resume it up trend movement in the second session.

20100305 0939 Malaysia Corporate News.

Bursa Malaysia expects the trading volume of its palm oil futures (FCPO) to grow by at least a third this year, helped by increased visibility on the world’s largest derivatives exchange, CEO Datuk Yusli Mohamed Yusoff said. Bursa is in the process of transferring its derivatives contracts currently traded on an in-house platform onto CME Group Inc’s Globex platform. (Reuters)

Malaysia's palm oil futures jumped as much as 1.9% to two month highs yesterday as traders took positions ahead of a key industry conference due next week, expecting a flow of bullish news. Traders are also on the lookout for February palm oil stocks, production and export data due to be released on Wednesday by the industry regulator. (Starbiz)

All new buildings will have to provide broadband infrastructure as a new compulsory service, Deputy Prime Minister Tan Sri Muhyiddin Yassin said. He said it is time to make it compulsory for this infrastructure to be provided in an effort to achieve the target of 100% accessibility to broadband services throughout the country this year. He said Telekom Malaysia's HSBB has reached 239,000 premises and 304,000 by end-March. In order to overcome "dropped calls" and improve mobile services in the rural areas, the government would widen the cellular coverage by constructing 1,000 new towers throughout the country. (Financial Daily)

Maxis wants to triple the number of subscribers in Sabah and Sarawak to 1m collectively by end-10 by expanding its network coverage in the two states. In Sarawak, for instance, only 60% of the state is covered. Currently, the two states have about 350,000 subscribers. Maxis is building 125 new transmission sites in Sarawak and 180 in Sabah, CMO Matthew Willsher told reporters at a luncheon in Kuching yesterday. (BT)

The Federation of Malaysian Manufacturers (FMM) has called for a transparent and consistent pricing formula for natural gas and electricity tariffs. This move will allow the industry to estimate future prices. FMM said it recognised that energy pricing should be at market rate but changes to policies would have an impact on operating costs. (Bernama)

Khazanah and Singapore's Raffles Education Corp Ltd (REC) plan to invest RM200m to set up a university in Johor. Raffles University Iskandar will be located in the Iskandar Malaysia special economic zone. REC and Khazanah will make their investments over five years after they win the necessary approvals. (BT)

The government has received overwhelming response from foreign luxury car manufacturers seeking further clarification on the National Automotive Policy (NAP), especially on new technology and green technology. "MITI and its agencies will continue to promote the industry. We have to provide the infrastructure, the human capital development to support the industry and to ensure that localisation will take place," Abdul Rahman said. (Bernama)

The Naza Group and General Motors are confident of selling 1,600 units of Chevrolet vehicles this year, driven by the soon-to-be-launched 1.8 litre Cruze sedan. The Cruze is currently Chevrolet's top-selling car in its class in China, Australia, India and Singapore and is expected to be launched in Malaysia this quarter. "We are also currently discussing the possibility of bringing in CKD assembly operations of certain Chevrolet vehicles through Naza's assembly plant in Gurun, Kedah, from manufacturing to export," Naza group joint executive chairman and CEO Datuk SM Faisal Tan Sri SM Nasimuddin. (BT)

The New Straits Times Press (Malaysia) (NSTP) has sold a plot of land measuring 217,807 sq ft in Shah Alam to Megah Selesa Development for RM15.9m. Proceeds from the sale will be used for working capital. (BT)

JAKS Resources is aiming for property development to be one of its main earnings contributors going forward. In addition to its venture with Star Publications, JAKS is due to announce its participation in another property project in Subang Jaya. JAKS’ orderbook, which currently stands at around RM400m, could reach RM1bn with the Star and Subang projects. However, the spokesman said JAKS would not lose focus on its core business as it continues to eye a portion of the Pahang-Selangor interstate raw water transfer project. (Financial Daily)

The Singapore Navy has received indications a terror group is planning attacks on oil tankers in the Strait of Malacca, a key shipping lane for world trade, the Singapore Shipping Association (SSA) warned yesterday. Singapore Navy recommends ships using the strait between Indonesia and Malaysia strengthen onboard security measures. “This does not preclude possible attacks on other large vessels with dangerous cargo,” the SSA said in the advisory. Up to 80 per cent of China’s oil imports and 30 per cent of its iron ore imports pass through the Strait of Malacca — a narrow, congested waterway between Indonesia, Malaysia, and Singapore. (Reuters)

Stamford College plans to diversify into the manufacturing of low alloyed, alloyed and long- steel products. The company also planned to reduce its issued and paid-up capital by cancelling 50 sen from the par value of its RM1 shares. Stamford said it seeks to mitigate the risk of over-dependency on its core business of providing academic, tertiary and professional courses, amid an increasingly competitive market. It had launched a manufacturing project through Sang Cahaya Sdn Bhd in mid-2008, the company said. (BT)

Pantai Holdings is scheduled to open a RM500m hospital in the Iskandar region in Johor. The 400-bed hospital will also have a centre of excellence and a nursing college, the hospital's chairman Tan Sri Khatib Abdul Hamid said. "It will be ready within five years, but it can be earlier," Khatib said. Pantai has also confirmed the opening of a hospital in Sri Manjung, Perak. To be ready in 2012, Pantai will lease this building and manage it. Pantai now operates nine hospitals nationwide. (BT)

20100305 0933 Malaysian Economic News.

Malaysia delayed plans to implement a new fuel subsidy system after rejecting a proposal on the use of identity cards to buy subsidized gasoline, Domestic Trade and Consumer Affairs Minister Ismail Sabri Yaakob said. Another proposal to limit purchases based on a vehicle’s engine capacity has also been rejected because it isn’t “practical”. He also said that there were “no plans for now” to increase fuel prices. The government would have been able to save about RM1bn (US$296m) annually if the revamp were to start in May. However, a “subsidy rationalization lab” would instead be set up to review all forms of subsidy, including for food and petrol. The government now aims to come up with a new system before presenting the nation’s annual budget in October, he added. (Bloomberg, Malaysia Insider) Please see our Economic Update for further details

Bank Negara Malaysia (BNM) has raised the Overnight Policy Rate (OPR) by 25bps to 2.25% at its monetary policy committee (MPC) meeting yesterday as the economic recovery is firmly established. It said the domestic economy has since improved significantly and is now on a path of recovery. Given this improved economic outlook, the MPC decided to adjust the OPR towards normalising monetary conditions and preventing the risk of financial imbalances that could undermine the economic recovery process. "At the new level of the OPR, the stance of monetary policy continues to remain accommodative and supportive of economic growth," it said. (Financial Daily) Please see our Economic Update for further details

A high demand for halal products can help propel the economy towards achieving its target economic growth of 6%, said International Trade and Industry Deputy Minister Datuk Mukhriz Mahathir. He said having a diversified range of halal food products can also be an integrated step towards promoting Malaysia as a global halal hub. "We are competing with several neighbouring countries like Thailand, in the food industry, but we have an edge over the others as our food products are unique in that they carry the halal logo which is accepted worldwide.”There are many European companies which want to strike business deals with Malaysian companies as they are confident of the halal logo which is promoted widely," he said. (Bernama)

Malaysia will gradually reduce corporate income tax once the proposed goods and services tax is implemented by the middle of next year, said Deputy Finance Minister Datuk Chor Chee Heung. Businesses related to government services such as food and transport would be exempted from the new tax. The levy is expected to generate RM1bn in additional annual tax revenue for the government, he said. (Bernama, Bloomberg)

Malaysia hopes to conclude negotiations for a free-trade agreement (FTA) with Chile before the year-end, said International Trade and Industry Ministry Secretary-General Tan Sri Abdul Rahman Mamant. “With Chile, we are in the advanced stage (of negotiations) actually. Only a few items are still sensitive so we hope the government can make a final decision on some of the sensitive items,” he said. (Bernama, StarBiz)

Foreign investments in Penang declined a whopping 78.0% to RM2.2bn last year against RM10.2bn recorded in 2008. "It's the lowest investment ever recorded by the island state in the past five years," said Penang Gerakan Small-and--Medium Entrepreneurs (SME) Bureau Chairman Michael Heah. According to the Malaysian Industrial Development Authority (Mida), the number of approved projects recorded in Penang also dipped 31.1% to 104 projects in 2009 from 151 projects in 2008. (Bernama)

20100305 0929 Global Economic News.

Overall US factory orders increased by 1.7% in January (+1.5% in Dec), much of it driven by volatile aircraft orders. Analysts expected orders to rise 1.8%. Excluding transportation, orders edged up just 0.1%, the slowest gain in six months. New orders for capital equipment orders fell 4.1% after two months of strong gains, suggesting the fourth quarter surge reflected expiring business investment tax credits. Inventories increased 0.2% (- 0.2% in Dec) and the inventories-to-shipment ratio was 1.29, unchanged from December. (Xinhua)

US initial jobless claims fell 29,000 to 469,000 in the week of February 27. This marks the lowest level since Jan. 9. A consensus estimate of economists expected new claims to drop to 470,000. The 4-week moving average of initial claims was 470,750, down 3,500 from the previous week's revised average of 474,250. In the February 20 week, continuing claims declined by 134,000 to 4.500m. (CNN Money)

US non-farm unit productivity was revised up to a 6.9% (from 6.2% initially reported) annual rate in 4Q09, while unit labor costs were revised down to a 5.9% (from -4.4%) rate of decline. (Xinhua)

US same store sales, or sales at stores open at lease a year, jumped 4% in February. Many of the nation's top retail chains reported much stronger-than-expected February sales furthering hopes that US consumers are starting to loosen their purse strings. February marked the sixth month in a row that overall same-store sales increased and was the strongest gain since November 2007, when those sales rose 6%. (CNN Money)

US pending home sales dropped 7.6% in January (+0.8% in Dec), the National Association of Realtors announced. The drop in contract signings adds to evidence the housing market at the center of the worst recession since the 1930s is struggling to rebound after reports last week showed unexpected declines in purchases of new and existing homes. (Bloomberg)

The US House approved a US$18bn job-creation bill that aims to help create jobs by offering a temporary tax break to companies that hire people who have been out of work at least 60 days. The Congressional Budget Office has estimated that the payroll-tax break would save or create up to 234,000 jobs. The plan would also provide US$4.5bn to help state and local governments issue bonds to pay for construction projects. (Bloomberg)

The European Central Bank (ECB) left its benchmark interest rate at a record low of 1.0% as policy makers weigh the risks of withdrawing emergency lending measures amid Greece’s fiscal crisis. The decision came largely expected. (Bloomberg)

Europe’s recovery almost came to a halt in 4Q09 as companies continued to cut investment while consumers held back spending, countering a gain in exports. Gross domestic product (GDP) rose 0.1% qoq (0.1% in 3Q09). Corporate investment dropped 0.8% qoq (0.9% in 3Q09) while household spending was flat (-0.2% in 3Q09). Exports gained 1.7% qoq and imports rose 0.9% qoq. (Bloomberg)

The European Central Bank (ECB) said its offerings of three-month cash will return to variable interest rates on 28 Apr. “Amounts will be set with the aim of ensuring smooth conditions in money markets” and avoiding “significant spreads” between the ECB’s benchmark rate and the rate at which money is allotted, President Jean-Claude Trichet said. The benchmark rate serves as the minimum bid rate. (Bloomberg)

The Bank of England (BoE) kept its bond-purchase program on hold for a second month as policy makers assessed whether the £200bn spent so far is enough to prevent a relapse in the economy. This decision was widely predicted by economists. The bank also kept the benchmark interest rate at a record low of 0.5%. (Bloomberg)

Chinese Premier Wen Jiabao will unveil a plan at today’s annual meeting of the National People’s Congress to sell RMB200bn (US$29bn) of bonds for a second year to help local governments fund infrastructure projects. (Bloomberg)

China’s central bank can prevent inflation from spinning out of control this year and is also confident of containing inflation expectations, Su Ning, a deputy governor of the People’s Bank of China (PBOC) said. “From the measures we have taken, I feel we can control inflation at a reasonable level this year. Just as we successfully managed deflationary pressure last year,” he said. (Financial Daily)

Japanese businesses cut spending for an 11th quarter even as their earnings rebounded. Capital spending excluding software fell 18.5% yoy in the three months ended Dec. 31. Based on today’s data, the Cabinet Office may revise fourth-quarter economic growth figures lower on March 11. (Bloomberg)

Hong Kong’s retail sales rose 6.6% yoy to HK$29.3bn in January (16.1% in Dec 09), marking the fifth monthly increase as more tourists visited the city. That was less than the median 10.1% estimate. The numbers may have been distorted by the timing of a Lunar New Year holiday, which fell in Jan 09 and February this year. (Bloomberg)

Indonesia’s central bank kept its benchmark interest rate unchanged at 6.5% for a seventh straight month. It was the lowest level since the measure was introduced in July 05. The move was predicted by all economists. (Bloomberg)