20100513 1803 FCPO EOD Daily Chart Study.

FCPO closed : 2472, changed : -35 points, volume : higher.
Bollinger band reading : side way range bound downside biased.
MACD Histrogram : dropping lower, seller taking chances.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2521, 2550, 2570, 2600 level.
Comment :
FCPO ended the way negatively lower with improve volume traded formed a wide range down bar candle. Daily chart reading suggesting a side way range bound downside biased market with immediate support at the lower Bollinger band level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/breakdown with quick cut loss and profit target.

20100513 1728 FKLI EOD Daily Chart Study.

FKLI closed : 1341.5, changed : +1 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : receovering, buyer still in.
Support : 1337, 1330, 1325 level.
Resistant : 1345, 1350, 1360 level.
Comment :
Slightly improved volume FKLI ended the day marginally higher after price opened and surged high but selling pressure returned and push market to closed near the low of the day. Daily chart remained unchanged with a side way range bound reading with a lack of buyer interest at higher price 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.

20100513 1255 FKLI Mid Day Hourly Chart Study.

FKLI last looked : 1345.5, changed : +5 points, volume : low.
Bollinger band reading : upside biased.
MACD Histrogram : edging higher, buyer stayed.
Support : 1345, 1337, 1330 level.
Resistant : 1350, 1360, 1375 level.
Comment :
Positive regional market development lead FKLI to trade in positive breath by registering a half point premium compare to cash market. Hourly chart reading signalling a continue upside biased market with possible pullback downward correction. Only doubt raise on the upward movement momentum will be the lack of sustaining volume transacted.

20100513 1243 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2486, changed : -21 points, volume : low.
Bollinger band reading : downside biased.
MACD Histrogram : getting lower, selling pressure persist.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2521, 2550 level.
Comment :
FCPO continue to trade negatively ended the first half lower in hopeless volume. Hourly chart shows that market opened weakly and continue to head south and is likely to move downside biased with potential temporary pullback correction.

20100513 1148 Malaysia Corporate News.

Berjaya Corp announced the acquisition of a 70% stake in Ascot Sports Sdn Bhd, a private entity of its chairman, Tan Sri Vincent Tan. BCorp will pay a total cash consideration of RM525m, comprising an initial payment of RM400m while the remaining RM125m will be satisfied on a deferred basis.

• Ascot Sports has been re-issued a sports betting licence by the Ministry of Finance recently. Meanwhile, the group also announced the undertaking of a rights issue of 1-for-8 8% ICULS of RM1 each to fund the acquisition. Up to 614.5m ICULS will be issued. The ICULS are converted at RM1 and is for a period of 10 years. (BMSB)

Berjaya Corp has been included into MSCI Malaysia Index while two property stocks, IGB Corp and KLCC Property Holdings, have been removed from the index. The removal of IGB and KLCC Property and inclusion of BCorp came amid a worldwide reorganisation of the MSCI Global Standard Indices, which include individual stock gauges for various countries. (Financial Daily)

The Malaysian government agreed last week to the privatisation of several tracts of government- owned land in Kuala Lumpur, executives familiar with the matter say. The largest of the deals will be the sale of Sungei Besi airport, a 160-hectare field south of Kuala Lumpur that still houses an air-force base and a flying school. It is the single largest remaining tract of government-owned real estate in Kuala Lumpur and could be worth hundreds of millions of ringgit.

• According to the executives, the area is likely to be privatised to a consortium that includes the Armed Forces Superannuation Fund (30%), One Malaysia Development Fund (30%) and a company linked to businessman Desmond Lim (40%). Mr Lim, a confidant of Prime Minister Najib Razak, owns listed development company Malton, which is a shareholder in the wildly successful Pavilion shopping complex in Kuala Lumpur. 
• It isn't clear how much they will pay the government for the land but it is believed that the consortium will push ahead with over RM1bn of development that will include an Islamic Financial Centre.
• The freeing up of the state land was first announced by Mr Najib in his Budget speech last year and repeated in his recent address unveiling his New Economic Model (NEM). The projects are aimed at boosting growth and raising cash to pare the government's growing budget deficit.
• Other tracts of real estate that have been cleared for privatisation include small plots of land in Jalan Stonor and Jalan Cochrane in the capital. And the exercise is likely to extend to the historic Sultan Abdul Samad building in central Kuala Lumpur, which used to house the government court complex. The building is likely to be gentrified although it will keep its original fasade as it is considered a heritage landmark. It isn't clear which parties will snag these deals. (SBT)

The cabinet has agreed in principle to entrust the task of redeveloping the Sungai Besi Royal Malaysia Air Force (RMAF) base to a consortium of companies that include 1Malaysia Development (1MDB), sources say. The other members of the consortium are Lembaga Tabung Angkatan Tentera (LTAT) and Datuk Desmond Lim of Malton, they say.

• It cannot be ascertained if Malton or Lim, through his private company, has a stake in the consortium. It is learnt that the mandate of the consortium is to develop the 162-hectare site into a multi-billion ringgit Islamic financial centre. The 1MDB would hold 30% interest in the consortium while Lim or Malton would hold 40%. LTAT would hold the remaining 30%. (Financial Daily)

Bursa Malaysia hopes to roll out an electronic trading initiative that will allow local investors direct access to stocks listed in other exchanges within the Asean region in about a year from now, said CEO Datuk Yusli Mohamed Yusoff. “We are targeting to launch the Asean e-trading link in the second half of next year,'' Yusli said.

• Last year, stock exchange operators in Malaysia, Thailand, the Philippines, Singapore, Indonesia and Vietnam had agreed to explore possibilities of enabling investors in the region to trade stocks in participating exchanges from a single access point. 
• Yusli said the exchange's status, as per FTSE watch list, will be upgraded to advanced emerging market by September this year from the current secondary emerging market classification. Bursa Malaysia is also seeking approvals from the US Commodity Futures Trading Commission to enable US investors to trade local financial derivatives products directly. Other initiatives in the pipeline include a plan to launch multi-currency exchange traded funds and making the bond market accessible to retail investors. (StarBiz)

Maxis plans to make use of Tenaga Nasional's poles to deliver its services as such a method of deployment will be faster and cheaper, said Maxis COO Jean-Pascal Van Overbeke. Maxis, which has more than 12 million subscribers, has wired up 400 buildings in and around Klang Valley. "We are in talks with everybody to acquire or lease (the fibre optic)". (Starbiz)

WCT hopes to clinch some RM2bn worth of jobs this year. Its current orderbook of RM3.2bn is expected to last for another two years. "We expect order book replenishment in 2010 to be good. It should at least match 2009's RM2bn job win," said chairman Datuk Capt Ahmad Sufian.

• He also said that claims made by the group against Dubai's Meydan LLC was ongoing. In Jan-09, Meydan cancelled a racecourse construction deal with WCT and its partner Arabtec Construction LLC. A month later, 
• It was reported that WCT Bhd and Arabtec will claim an estimated RM500m from Meydan for work done at the Nad Al Sheba Dubai Racecourse. Meydan forfeited the RM178m performance bond held as deposit, when it awarded the job to the joint venture company in Oct-07. "The arbitration is still ongoing. We are trying to recover what we're entitled to, one of them being the performance bond," said deputy MD Goh Chin Liong. (BT)

Iskandar Investment Bhd (IIB) will be awarding six construction packages with a total value of RM250m to successful bidders by the end of the month. President and CEO Arlida Ariff said the packages were mostly for the actual construction work on the buildings related to the IIB strategic projects in Nusajaya, including work on facilities for the University of Newcastle Medicine Malaysia Campus (NUMed) in EduCity, the Marlborough College in International Resort and the Legoland Theme Park in Medini. (Star)

Malaysia Airlines (MAS) will receive contractual compensation for further delay in the delivery of the A380 super-jumbo aircraft, its MD and CEO Tengku Datuk Azmil Zahruddin said. He, however, did not reveal details of the payment. Delivery of the A380s has been delayed for the third time. (Bernama, Financial Daily)

AirAsia X has denied that its aircraft was flying too low while approaching Gold Coast airport in two incidents last week as the Australian Transport Safety Bureau (ATSB) investigates the airline for two safety breaches on May 3 and 4.

• Flight Global reported that the approach was made in instrument meteorological conditions, indicating low visibility due to cloudy or bad weather conditions at that time. The bureau said a similar incident involving the same aircraft occured on May 3 in visual meteorological conditions, which indicates sufficient visibility. 
• "To say we are putting passengers at risk and flying below the radar is completely incorrect. The landing was smooth and we are transparent and that is why we are sharing al the flight data. We will fully cooperate with the ATSB," Azran said. (Starbiz)

Proton Holdings and Perodua were among four companies honoured at the inaugural 2010 Malaysia Excellence Awards in the automotive industry. Proton was awarded the Best Passenger Car Model of the Year and Best Automotive Debut Model of the Year for its Saga and Exora models, respectively while the Best Passenger Car Value-for-Money of the Year went to Perodua Viva. (Financial Daily)

Pos Malaysia has not ruled out the possibility of becoming a controlling shareholder in Transmile Group, but any firm decision will only be made after an extensive cost and benefit study, said its top official. However, it has not committed to carrying out any such study at the moment.

• "It is one of the options, but if we want to take over, there must be a proper business plan. Otherwise we stand to lose due to Transmile's huge debt of almost RM500m," Pos Malaysia chairman Tan Sri Dr Aseh Che Mat said. Pos Malaysia managing director and CEO Datuk Syed Faisal Albar said it was adopting a defensive stance on its current stake in Transmile. (BT)

Dairy Farm International Holdings Ltd has signed a deal to purchase Bintang Supermarket Group in Malaysia, sources said. The purchase is Dairy Farm's seventh in the country since its entry 11 years ago when it acquired the Giant chain owned by the Teng family.

• According to sources, the Hong Kong-based retailer is buying 14 Bintang retail stores and two high-end Mercato supermarkets. The purchase will help Dairy Farm's Malaysian unit, GCH Retail (Malaysia), expand its portfolio of stores from the current 105 Giant outlets (supermarkets and hypermarkets) and 16 Cold Storage supermarkets. 
• It is understood that once the deal is completed, the Bintang outlets will be rebranded as Giant and the Mercato outlets in the Sri Hartamas Shopping Centre and Pavilion Kuala Lumpur will become Cold Storage. (BT)

Asia Pacific Land (AP Land) has signed an agreement with HELP International Corp (HELP) to jointly provide education in any country including Malaysia and China. JV will allow AP Land to fast track the growth of its education division, to complement its core business of property development. (BT)

United U-Li Corp plans to invest some RM50m next year to set up a new plant and increase its production capacity by 67%. It is looking for suitable land, preferably in the Klang Valley, to build the plant, and once it is completed, the company hopes to produce up to 50,000 tonnes of steel annually.

• The group, which manufactures cable support system (CSS), integrated ceiling system and light fittings, currently has two plants in Selangor and Perak, with total output of 30,00 tonnes of steel annually. 
• Group MD Datuk James Lee Yoon said the CSS market, estimated to be worth RM500m, is becoming more promising as the government releases new projects to boost the country's economy. ULI is bidding for contracts worth RM100m this year, of which it hopes to clinch at least 70%. They include the new low-cost carrier terminal project, which it hopes to be concluded by 3Q10, Lee said. (BT)

Oriental Holdings is providing ¥5.6bn (RM192.86m) corporate guarantee to Citibank Malaysia for loans taken by its subsidiaries PT Gunung Maras Lestari (GML), PT Gunungsawit Binalestari (GB), PT Bumi Sawit Sukses Pratama (BSSP), and OBS (Singapore). It said it does not envisage specific risk associated with providing the guarantee as the subsidiaries will be able to service their obligations as and when they fall due. (Malaysian Reserve)

Masterskill Education Group, en route to a Main Market listing, has received Ministry of Health and Medical Council of Malaysia approvals to offer bachelor of medicine and bachelor of surgery (MBBS) courses. The ministry has approved Masterskill's application to offer the MBBS degree in partnership with Chettinad Hospital and Research Institute of Tamil Nadu. (Starbiz)

20100513 1139 Malaysian Economic News.

Total manufacturing approvals amounted to RM5.2bn in 1Q10, involving 170 projects approved by the MIDA, Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed said. From the amount, RM3.2bn came from foreign direct investments (FDIs) while RM2.0bn from domestic investments. (Bernama)
Total manufacturing approvals dropped 35.0% yoy in 1Q10 (+11.5% in 4Q09) when compared to RM8.0bn in 1Q09, reflecting declines in both domestic (-53.5% yoy) and foreign investment approval (13.5% yoy). On a q-o-q comparison, manufacturing approvals declined by 56.3% in 1Q10.

A nationwide initiative to “Malaysianise” computer software used in the information technology sectors in the country has been rolled out. Culture, Communications and Multimedia Minister Datuk Seri Utama Dr Rais Yatim said his ministry had set up a RM200m fund to finance the software “Malaysianisation initiative”. (The Star)

Malaysia and Qatar will sign a memorandum of understanding tomorrow to explore deals worth up to US$5bn in fields including energy, and Islamic finance, a source said. Qatarbased Gulf Petroleum Ltd said in 2008 that it would lead a consortium of Gulf banking and energy firms to build a US$5bn oil-and-gas complex in Malaysia. (StarBiz)

20100513 1138 Global Economic News.

US’s trade gap widened to US$40.4bn in March from a slightly revised deficit of US$39.4bn in February. Imports and exports jumped 3.1% and 3.2% respectively. The trade gap, which was smaller than market consensus of US$41.0bn, was due in part to sharp increases in both the price and quantity of energy imports. Trade deficits with most major trading partners widened including those with China, Japan and the European Union.(Bloomberg)

The US government posted a budget deficit of US$82.7bn in April, the most ever run in the month when Americans file their tax returns. April has been a surplus month for the government because of the April 15 tax filing deadline. It was the 19th consecutive monthly deficit and surpassed the US$20.9bn shortfall last April.

• This brought the deficit for the first seven months of the fiscal year to US$799.7bnThe year-to-date deficit was down marginally from US$802.3bn a year ago. Receipts in April were about US$245.3bn, down from US$266.2bn a year earlier, and outlays were about US$327.9bn, up from US$287.1bn a year ago. 
• The Treasury Department expects that the deficit will reach US$1.56trn this fiscal year, up from a record US$1.41trn in fiscal 2009. (CNNMoney)

Europe’s economy expanded at a faster pace than expected by 0.2% qoq in the first quarter as a global recovery boosted exports, helping the region overcome the Greek fiscal crisis and consumers’ reluctance to increase spending. Economists had forecast growth of 0.1%.

• On an annual basis, euro-area GDP rose 0.5% in 1Q10 after declining 2.2% yoy in 4Q09. Germany’s GDP rose 0.2% qoq, followed by French (+0.1%) and Italy (+0.5%). By contrast, the Greek economy contracted 0.8% qoq. In Spain, the economy expanded 0.1% and Portugal grew 1.0%. (Bloomberg)

India’s industrial production grew 13.5% yoy in March for a sixth straight month (15.1% in February), adding to inflation pressures even as Europe’s debt crisis threatens to undermine the global economic recovery. The median market estimate was for a 15.1% increase. Manufacturing expanded 14.3%, followed by mining (11%) and electricity production (7.7%). (Bloomberg)

The end of second-round housing stimulus made for a 9.5% drop in purchase applications according to Mortgage Bankers' data for the May 7 week. The drop reverses a run of increases in late April including a 13.0% jump in the April 30 week as buyers rushed to get a contract in place before month-end.

• The outlook for the housing sector is uncertain but has improved in the last few weeks as mortgage rates have moved unexpectedly lower, the result of Europe's sovereign debt troubles and the resulting flight to safety, specifically flight to U.S. Treasuries. 
• Home owners are taking advantage of the move and are refinancing their mortgages as the refinance index jumped 14.8% in the week. Mortgage rates fell in the week led by a 6bp decline in 30-year fixed loans to an average 4.96%. (Bloomberg)

The Bank of Korea yesterday kept its benchmark interest rate unchanged at 2.0% for a 15th month as policy makers faced risks from the European debt crisis alongside signs that the domestic economic recovery is strengthening. The decision came after figures showed South Korea’s unemployment rate dropped to 3.7%, and Governor Kim said growth may exceed the economy’s potential.

• It also follows an agreement by policy makers three days ago to closely monitor the European crisis and take steps if needed to prevent it impeding the nation’s economic recovery. (Bloomberg)

The European Central Bank (ECB) does not intend to reveal how much is being spent on its unprecedented bond-buying programme because that information could assist speculators, a European monetary source said. (Bloomberg)

The European Commission said it is proposing to “reinforce decisively” economic governance in the European Union. It proposes to align national budget and policy planning” under a system of economic policy coordination, “so that Member States would benefit from early coordination at European level as they prepare their national budgets and national reform programs.” (Bloomberg)

David Cameron’s chancellor of the exchequer, George Osborne, will prepare an emergency budget within 50 days containing GBP6bn (US$9bn) of spending cuts to narrow Britain’s record deficit. The agreement also contains a levy on banks, a commission to investigate splitting retail from investment banking, plans to limit bonuses, and measures to increase lending to businesses. (Bloomberg)

Japan’s broadest indicator of economic health climbed to the highest level since 2008, signaling the economy sustained its expansion through the first three months of 2010. The coincident index climbed to 101.1 in March (100.0 in Feb). Economists had projected it would increase to 101.6. (Bloomberg)

Thailand's finance minister offered a slightly improved outlook for 2010 GDP - projecting growth of 4.5-5.0% - but noted the ongoing political crisis could shave 0.3% pt off that target. Korn Chatikavanij also said he expected first quarter GDP to have grown by 9.0% yoy. He added that once the political crisis is resolved, he expected the central bank to raise interest rates. He did not offer a timeframe, but the next rate setting meeting is scheduled for 2 Jun. (CNBC)

Bank Indonesia doesn’t make it its “priority” to increase the benchmark interest rate even as inflation tends to quicken because of higher world commodity prices and as the harvest season has ended, Deputy Governor Hartadi Sarwono said. The recent fund outflow from Indonesia is still “orderly” and the rupiah’s decline isn’t “worrisome,” he added. (Bloomberg)