Tuesday, June 15, 2010

20100615 1817 FCPO EOD Daily Chart Study.

FCPO closed : 2391, changed : -19 points, volume : higher.
Bollinger band reading : downside biased.
MACD Histrogram : reversed downward again, seller increase exposure.
Support : 2370, 2350, 2330 level.
Resistant : 2400, 2450, 2470 level.
Comment :
FCPO resume it downward movement after yesterday correction by opened higher following by continue sell down push price to settle weaker in increase volume changed hand. Market still look weak with downside biased potential on the daily chart basis after closed at below crucial support level for the second time.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with quick cut loss and profit target.

20100615 1804 FKLI EOD Daily Chart Study.

FKLI closed : 1296 changed : -8.5 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : reversed lower, seller wanted a rematch.
Support : 1290, 1280, 1274 level.
Resistant : 1300, 1310, 1318 level
Comment :
Wild day improved volume FKLI traded in 32.5 points range after the morning illiquid market stop triggered to the low of the day and stabilized to closed off the low down 8.5 points forming a long lower shadow doji bar candle. Daily chart reading still suggesting a side way range bound market likely to development 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.

20100615 1710 Global Market News.

June 15 (Bloomberg) --BP Plc, whose potential liability for the Gulf of Mexico oil spill has lawmakers and analysts raising the specter of bankruptcy, would be unlikely to avoid paying claims by seeking court protection, restructuring experts said. The spill, the worst in U.S. history, threatens wetlands, wildlife, fishing and tourism in five states. BP has spent more than $1.43 billion to stop the leak and clean it up, and to compensate local businesses and residents since the April 20 explosion of the Deepwater Horizon oil rig.

Asian shares slip as Moody's downgrades Greece
HONG KONG, June 15 (Reuters) - Asian stocks slipped, snapping a five-day winning streak, as worries about Europe's debt problems returned after Greece was downgraded to junk status, a move which also stymied the euro's rally.
"I believe we are yet to feel the full impact of Europe's debt crisis," said David Taylor, a market analyst at CMC Markets in Australia. 

20100615 1318 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1298 changed : -6.5 points, volume : high.
Bollinger band reading : side way range bound little downside biased.
MACD Histrogram : reversed higher, seller returned for a match.
Support : 1290, 1280, 1274 level.
Resistant : 1300, 1310, 1318 level
Comment :
Stop triggered due to light volume participation FKLI once down more than 30 points touched the low of 1269.5 follow by bargain hunting lift price up and stabilized around 1290 to 1299 level. Hourly chart reading suggesting a side way range bound little downside biased market development for the near term.

20100615 1248 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2409, changed : -1 points, volume : low.
Bollinger band reading : side way range bound.
MACD Histrogram : getting higher, not much participation.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
Unbelieveable low volume tight 12 points range FCPO traded just 1 point lower. Hourly chart reading suggesting a side way range bound market without much action as volume is just too low to justified.

20100615 1237 Global Economics News.

June 15 (Bloomberg) -
- German investor confidence probably fell for a second month in June on concern that the sovereign debt crisis will undermine export prospects and crimp growth in Europe’s largest economy. The ZEW Center for European Economic Research will today say its index of investor and analyst expectations fell to 42 from 45.8 in May, according to the median of 35 forecasts in a Bloomberg News survey. ZEW releases the report, which aims to predict developments six months ahead, at 11 a.m. in Mannheim.

June 15 (Bloomberg) -- China’s banking regulator said it sees growing credit risks in the nation’s real-estate industry and warned of increasing pressure from non-performing loans. Risks associated with home mortgages are growing and a “chain effect” may reappear in real-estate development loans, the China Banking Regulatory Commission said in its annual report published on its website today. 

June 15 (Bloomberg) -- The Bank of Japan will offer as much as 3 trillion yen ($33 billion) in a new credit program that will extend loans to companies for as long as four years in an effort to strengthen the economic recovery. The central bank will accept loan requests through March 2012, it said in a statement released today in Tokyo. New loans will be extended at the benchmark interest rate, which the board today unanimously voted to keep unchanged at 0.1 percent.

20100615 1129 Malaysia Corporate News.

Sime names Bakke CEO
Datuk Mohd Bakke Salleh has been named the new chief of Sime Darby and analysts think he could be the man to fix the conglomerate based on his track record. Bakke earned his spurs after he helped to restructure Lembaga Tabung Haji in 2001-2002 following fraudulent withdrawals and poor investment decisions. The 56- year-old Bakke is currently group president and chief executive of Felda Global Ventures Holdings SB, the overseas investment arm of Felda Group. (BT) 

BHIC wins RM130m Govt maritime contract
Boustead Heavy Industries Corp’s (BHIC) indirect unit BYO Marine SB has received a letter of award dated 7 June from the government for the contract to design, construct and commission 10 units of Fast Interceptor Craft vessels for the Malaysian Maritime Enforcement Unit worth RM130.7m. In a Bursa Malaysia filing on Monday, 14 June, the group said the contract period was for a 20-month period from the effective date of the letter of acceptance of BYO. (FinancialDaily)

Ishak no longer substantial shareholder of Kenmark
Datuk Ishak Ismail has netted an estimated RM5m from selling shares in Kenmark Industrial, a company that he had started buying into slightly over a week ago. However, in a filing with Bursa Malaysia yesterday, Kenmark said Ishak had ceased to be substantial shareholder of the company as of 9 June. The shares were disposed of in the open market on 9 June and 11 June. (StarBiz)

It’s official — small pack ban effective 2 June
The Health Ministry issued an official directive to tobacco companies on Monday, 14 June, confirming the ban of cigarette packs containing fewer than 20 sticks with effect from 2 June It said this was in line with the cabinet's decision on 2 June that revoked the ministry's earlier deferment of the ban until 31 Dec, 2010. "The ban of cigarettes in packets of less than 20 sticks is in accordance with the Tobacco Control Act 2004 which had been gazetted on 23 Sept, 2004," the health ministry said in a statement on Monday. (FinancialDaily)

KUB clinches RM29m digital TV job
KUB Malaysia through its subsidiary, KUB Telekomunikasi SB, has been awarded a RM29.5m TV Al Hijrah Digital Broadcasting Centre contract from Al Hijrah Media Corporation. KUB said TV Al Hijrah was a new concept TV station operated by Al Hijrah Media Corporation, scheduled for transmission by year end and would be free to air. KUB will provide TV Al Hijrah with equipment and engineering services for its High Definition Digital Broadcast Centre. (FinancialDaily)

Perodua retains pole position in May
Perodua maintained its market leadership in May with sales of 15,000 cars and an estimated market share of 29.6% on the back of continued strong demand for vehicles. "The 15,000 units sold were 13.6% higher than the 13,200 units achieved in May 2009," its managing director Aminar Rashid Salleh said in a statement yesterday. Year-to-date, Perodua sold 78,700 cars, which was 5.64% higher than the 74,500 units forecast for the five months this year. This was also a 23.16% jump over the 63,900 units sold during January-May last year. (BT)

Amir Hamzah to helm Petronas Dagangan
Amir Hamzah Azizan, the former president and CEO of national carrier MISC will commence duties as managing director and CEO of Petronas Dagangan today. Other than Petronas Dagangan, Amir is also on the board of MISC, Bintulu Port Holdings and NCB. At the same time yesterday, Petrtonas Dagangan also announced the resignation of Mohammad Sabarudin Mohamad Amin as director/CEO with effect from today. (FinancialDaily)

20100615 1118 Global Market News.

Investors keep up rally from year lows
LONDON, June 14 (Reuters) - World stocks headed for a fourth straight day of gains as investors banked on global economic recovery to trump concerns such as euro zone sovereign debt in providing a positive backdrop for corporate earnings.
"What is helping the market is the notion that a double dip recession is not a big risk," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin. "I think that is what the markets are latching onto." 

New Zealand: Retail sales fall 0.3% on house prices
New Zealand retail sales fell for the second time in three months as house prices declined and wage growth slowed, giving the central bank less room to raise interest rates to the level reached three years ago. Sales slid 0.3% in April from March when they rose a revised 0.5%, seasonally adjusted, Statistics New Zealand said in Wellington. (Bloomberg)

India: Inflation unexpectedly accelerates to 10.16%
India’s inflation unexpectedly accelerated in May, sending bond yields to a one-month high and mounting pressure on the central bank to raise borrowing costs. The benchmark wholesale-price index advanced 10.16% from a year earlier after a 9.59% gain in the previous month, the commerce ministry said in a statement in New Delhi. (Bloomberg)

China: Economic data challenges its yuan stance
China’s gains in retail sales, consumer prices and industrial production countered the government’s assessment that the recovery isn’t “solid,” and put more pressure on policy makers to let the yuan rise. Inflation accelerated to an annual 3.1% pace in May, surpassing officials’ target for the full year, retail sales gains quickened to 18.7% and industrial production jumped 16.5%, government reports showed in Beijing. (Bloomberg)

Greece: Cut four steps to junk by Moody’s on ‘risks’
Greece’s credit rating was cut four steps to non-investment grade, or junk, by Moody’s Investors Service, which warned of the rising economic cost of the debt-strapped country’s budget cuts. The rating was lowered to Ba1 from A3, Moody’s said in a statement in London, citing “substantial” risks to economic growth from the austerity measures tied to a EUR110bn (USD134.5bn) aid package from the European Union and the International Monetary Fund. (Bloomberg)

UK: Deficit is forecast to narrow as growth weakens
Britain’s budget deficit will narrow more than forecast even as the economy grows more slowly than the previous government estimated, the UK’s fiscal watchdog said in a report. The deficit will narrow from GBP155bn in this fiscal year to GBP71bn (USD228bn) by April 2015, the Office of Budget Responsibility said in London. Gross domestic product will rise 2.6% next year, instead of the 3.25% predicted by the Labour government in March. (Bloomberg)

US: Retail sales unexpectedly fell in may
Sales at US retailers unexpectedly dropped in May for the first time in eight months, indicating the rebound in consumer spending is cooling as Americans boost savings. Purchases fell 1.2%, led by a record plunge in demand at building-material stores that may reflect the end of a government rebate on sales of energy-saving appliances, according to figures from the Commerce Department issued in Washington.(Bloomberg)

US: Economy slows as states lose federal stimulus funds
Spending cuts by state and local governments from New York to California may act as a drag on the economy into 2011, only the second time in more than a half century that such reductions have restricted growth for three consecutive years. States face a cumulative budget gap of USD127.4bn as 46 prepare for the start of their fiscal year on 1 July, according to a report this month by the National Governors Association and the National Association of State Budget Officers. (Bloomberg) 

20100615 1050 Soy Oil & Palm Oil News.

Soyoil futures bounced, buoyed by spillover support from soybeans and crude oil futures. Smaller-than-expected stocks reported in the National Oilseed Processors Association's crush report and prospects for increased demand amid soyoil's competitiveness in world vegoil markets underpinned prices, analysts said. July soyoil settled 0.49 cents or 1.33% higher at 37.39 cents per pound. Speculative funds were estimated buyers of 3,000 lots in soyoil.(Source: CME)  

China soyoil buy lifts Malaysian palm oil
KUALA LUMPUR, June 14 (Reuters) - Malaysian crude palm oil futures gained more than 1 percent, boosted by China's aggressive buying of soyoil.
"One of the reasons that palm oil has lagged is because soyoil has been depressed over the last month," said a trader in Kuala Lumpur.
U.S. rains to slow soy plantings, disrupt wheat harvest
SINGAPORE, June 14 (Reuters) - Rains in U.S. Midwest this week are likely to slow the last leg of soybean planting, while wet weather in the Plains is expected to disrupt winter wheat harvest and increase the risk of disease.
The weather outlook calls for rain or thunderstorms in some parts of Midwest, although overall conditions are favourable for corn and soybean crops, said Mike Palmerino, a forecaster at Telvent-DTN Weather.   

France sees 2010 winter rapeseed crop sharply down
PARIS, June 11 (Reuters) - France's winter rapeseed crop is expected to fall to 4.6 million tonnes this year, down 17.2 percent on 2009, the farm ministry said on Friday in its first output projections for this summer's harvest.
The output estimate was based on a yield of 3.2 tonnes per hectare, down from 3.8 tonnes last year, and an area of 1.46 million hectares, down from 1.48 million in 2009.  

India's May vegoil imports seen down 26 pct y/y
NEW DELHI, June 11 (Reuters) - India's vegetable oil imports in May probably fell 26 percent from a year ago on lower domestic prices, while the early onset of summer accentuated the seasonal drop in demand, a Reuters survey showed.
Traders said high temperatures in May, three- to five-degrees above normal, slowed consumption demand. Use of vegetable oil for cooking purposes usually wanes in summer.