Wednesday, June 30, 2010

20100630 1819 FCPO EOD Daily Chart Study.

FCPO closed : 2373, changed : +7 points, volume : lower.
Bollinger band reading : side way downside biased.
MACD Histrogram : weakening, seller staying.
Support : 2370, 2350, 2330 level.
Resistant : 2400, 2450, 2470 level.
Comment :
FCPO managed to registered a positive closed in lesser volume traded after less encouraging export data released. Daily chart outlook remained unchanged with a side way range bound downside biased reading after tested 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.

20100630 1813 FKLI EOD Daily Chart Study.

FKLI closed : 1313 changed : -2.5 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : weakening, buyer closing position with seller present
Support : 1310, 1300, 1290 level.
Resistant : 1318, 1325, 1330 level.
Comment :
12.5 points range half volume transaction FKLI ended marginally lower on the last trading day. Meanwhile Jul 2010 contract ended lower doing 6 points discount compare to cash market. Daily chart formed a long lower shadow doji bar candle with the reading suggesting a side way range bound market.
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.

20100630 1303 Global Market News.

ECB Loans Demand for cash on offer from the ECB today will highlight how much European banks still rely on the central bank for funding. Lenders need to repay 442 billion euros ($540 billion) tomorrow and credit Markets may face a renewed bout of risk aversion should demand for the three-month ECB loans exceed 300 billion euros, according to Laurent Fransolet, head of European fixed-income strategy at Barclays Capital. The ECB will announce how much money banks have asked for at about 11:15 a.m. in Frankfurt.

Asian shares fall on risk reduction
SINGAPORE, June 30 (Reuters) - Asian stocks slid and the euro struggled near a two-week low as investors unwound risky positions before the quarter-end amid heightened concerns over banks' funding conditions in Europe.
"Given that the market has risen pretty sharply since late May, I am not overly alarmed by the size of falls we are seeing today," said Choi Seong-lak, a market analyst at SK Securities. KOSPI has gained 8 percent in the past month after hitting a six-month low on May 25.
 Asia shares fall as bank funding fears growSINGAPORE, June 30 (Reuters) - Asian stocks slid and the euro struggled near a two-week low on Wednesday on concerns over banks' funding conditions in Europe and the pace of the global recovery.
Fears of a potential liquidity shortfall of more than 100 billion euros in the financial system as European banks repay 442 billion euros ($545.5 billion) in emergency loans sparked the latest sell-off in equity markets, with the Standard & Poor's 500 Index  tumbling to an eight-month low.

Stocks fall as bank funding worries intensify
LONDON, June 29 (Reuters) - World stocks hit a 2-1/2 week low  while oil and the euro also slipped as investors grew nervous over the funding situation of banks about to repay 442 billion euros ($545.5 billion) to the European Central Bank.
"There's concern over the ECB expiry of the massive liquidity facilities member state banks have been enjoying ... We're seeing a real sense of uncertainty about the market at the moment, a real lack of conviction," IG Markets analyst Ben Potter noted.

Fed officials: US recovery firm but watching Europe
RICHMOND, Va., June 28 (Reuters) - Europe's debt debacle poses some risks for the United States, but is unlikely to derail the country's solid economic recovery, top Federal Reserve officials said.
Financial markets have grown nervous in recent months about the possibility that some European countries might have trouble repaying their debts, potentially setting off a renewed banking sector crisis.

20100630 1300 FKLI Mid Day Hourly Chart Study.

FKLI closed(Jul Contract) : 1313 changed : -2 points, volume : moderate.
Bollinger band reading : side way correction downside biased.
MACD Histrogram : recovering, selling taking profit.
Support : 1310, 1300, 1290 level.
Resistant : 1318, 1325, 1330 level.
Comment :
Opened lower FKLI managed to recovered higher to register a minor drop during closing as profit taking activities take place pushing price to move upward in sustaining volume traded. Hourly chart showing a side way correction downside biased market.

20100630 1259 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2363, changed : -3 points, volume : low.
Bollinger band reading : downside biased.
MACD Histrogram : reversed upward, seller take profit.
Support : 2350, 2330, 2300 level.
Resistant : 2370, 2400, 2450 level.
Comment :
Continue drop in soy oil and crude oil price plus a less exciting crude palm oil export data lead FCPO to opened and traded weakly followed by profit taking activities lifted price to recovered mostly closing only slightly lower in mild volume changed hand. Hourly chart reading shows a downside biased market with pullback correction taking place after price opened and traded way below lower Bollinger band.

20100630 1231 Global Economic News.

Thailand: Raises 2010 growth forecast as exports surge
Thailand’s Finance Ministry raised its 2010 economic growth forecast for the second time in three months as soaring exports overshadowed the impact from the nation’s recent deadly political unrest. Gross domestic product may expand 5% to 6% in 2010, with a mid-point forecast of 5.5%, Ekniti Nitithanprapas, the ministry’s spokesman, said. The ministry in March raised the estimate to as much as 5% from a December projection of as much as 4%. (Bloomberg)

Philippines: Aquino plans ‘austerity’ to cut Philippine budget gap
Philippine President-elect Benigno Aquino will implement “austerity measures” and focus public spending on helping the poor as he seeks to narrow the budget deficit without raising taxes, his incoming officials said. Aquino’s economic team, will review in two weeks the growth and fiscal goals set by the previous government, and may reduce the 2010 budget-shortfall target, Budget Secretary-designate Florencio Abad said. The administration may cut the deficit to about 2% of gross domestic product in three years. (Bloomberg)

South Korea: Manufacturers’ confidence holds near 7-year high
South Korean manufacturers’ confidence held near a seven-year high as companies shrugged off concern that the global rebound may falter. An index measuring expectations for July stayed at 104, unchanged from June, the Bank of Korea said. The reading hit 107 in May, the highest since the fourth quarter of 2002, when the bank published its confidence survey on a quarterly basis. A measure of non-manufacturing companies’ expectations fell to 87 from 90. (Bloomberg)

Japan: Production declines, jobless rate increases
Japan’s industrial production and household spending slipped in May and the unemployment rate unexpectedly increased, in signs that the recovery of the world’s second-largest economy may slow. The jobless rate reached 5.2% in May, the third straight monthly increase and the highest level since December. Factory output dropped 0.1% from April, the Trade Ministry said. (Bloomberg)

Euro: Economic confidence unexpectedly improves
European confidence in the economic outlook unexpectedly improved in June after reviving global growth and a drop in the euro bolstered the region’s recovery. An index of executive and consumer sentiment in the 16 euro nations rose to 98.7 from 98.4 in May, the European Commission in Brussels said. Economists had projected a drop to 98.1, according to the median of 25 estimates in a Bloomberg News survey. The commission’s index is based on a survey of 130,000 managers and 40,000 consumers conducted in the first two weeks of the month. (Bloomberg)

US: Home prices in US cities rose 3.8% in year to April
Home prices in 20 US cities rose in April from a year earlier as sales got a boost from a tax credit aimed at reviving the industry that triggered the worst recession since the 1930s. The S&P/Case-Shiller index of property values climbed 3.8% from April 2009, the biggest y-o-y gain since September 2006, the group said. The increase exceeded the median forecast of economists surveyed by Bloomberg News. (Bloomberg)

US: Confidence sinks on concern over jobs
Confidence among US consumers sank in June more than forecast as Americans became distressed over the outlook for jobs and incomes. The Conference Board’s confidence index slumped to 52.9 this month, below the lowest forecast of economists surveyed by Bloomberg News, from a revised 62.7 in May, figures showed. Sentiment fell most in regions affected by the oil spill. (Bloomberg)

20100630 1229 Malaysia Corporate News.

PKA wants IRB to withdraw letter on KDSB backtaxes
The Port Klang Authority (PKA) will ask the Inland Revenue Board (IRB) to withdraw the letter appointing it as the agent for collecting backtaxes due from Kuala Dimensi SB (KDSB). At the same time, a deputy minister reiterated the government’s “commitment” to honour all debt obligations on bonds issued by KDSB, the turnkey contributor of the controversial RM4.6bn Port Klang Free Zone (PKFZ) project. Deputy Transport Minister Datuk Abdul Rahim Bakri said defaulting on the debt obligations would jeopardize investor confidence in Malaysian bonds. (Financial Daily)

MPHB in property development
Multi-Purpose Holdings (MPHB) will be announcing its joint venture (JV) with a public-listed developer in the next several weeks to mark its entry into the property development sector. The group is starting from ground zero in property development as other than its two residential projects which it launched early this year in Penang, it does not derive any revenue from property development. The group has two office buildings, Menara Multi Purpose and Plaza Flamingo and two hotels under Flamingo brand as investment properties. (StarBiz)

P1 sees earlier turnaround with SK Telecom
WiMAX telecommunications company Packet One Networks (M) SB (P1), a subsidiary of Green Packet, expects to become profitable earlier following its strategic alliance with SK Telecom. Green Packet group managing director and chief executive officer C.C. Puan said the group’s initial break-even target was by the year-end but following the South Korean telco’s USD100m investment in P1, the group would be able to turn around earlier. SK Telecom’s investment will help them expand their network, advertise more and acquire customers. Puan said P1 was expecting to double its subscriber base this year from 140,000 subscribers last year. However, details of the group’s plan with SK Telecom to further their services would only be made known in a few months, he said. With the new investment, SK Telecom is now P1’s second biggest shareholder, with a 25.8% stake after Green Packet’s 57.1%. SK Telecom’s investment is the first by a foreign telco in a WiMAX operator in Malaysia. (StarBIz)

Wilmar, Elevance to build Indonesia biochemical plant
Singapore’s Wilmar International and US-based Elevance Renewable Sciences will build a refinery in Indonesia to produce biofuels and oleochemicals, the two firms said. The refinery, which is expected to be ready in 2011, will have an initial capacity of 180,000 tonnes a year, and can be expanded to produce 360,000 tonnes of biofuels and oleochemicals annually. The joint venture facility will be located within Wilmar’s upcoming manufacturing complex in Surabaya. (Financial Daily)

Naim to venture into China?
Naim Holdings has signed a memorandum of understanding with three other parties to explore the prospect of collaborating for the development of two community inter-linked smart cities. The MoU on Monday with the Miri City and two other parties in China – Guangzhou Panyu Economy and Trade Promotion Bureau of Guangzhou and Institute of Digital Guangzhou – for the development of Panyu-Miri Smart Cities (PMSC). (Financial Daily)

Kencana gets RM34m Petronas Carigali job
Kencana Petroleum has clinched a RM33.9m hook-up and commissioning job from national oil company Petroliam Nasional’s upstream unit Petronas Carigali SB. The job constituted a portion of the contract from Petronas Carigali for the provision of hook-up and commissioning service for the oil company’s facilities between 2007 and 2010. The work order is expected to contribute positively to earnings for the year ended 31 July 2011. (Financial Daily)

Petra Perdana’s placement fixed at RM1.32
Petra Perdana has fixed the price of its private placement of shares to Nam Cheong Dockyard SB at RM1.32, representing a 5% discount to the 5-day volume weighted average market price of the stock of RM1.39. Petra Perdana will raise total gross proceeds of RM39.28m from the placement. Petra Perdana has also proposed a renounceable rights issue that is slated to be concluded by year end. The rights issue is expected to raise RM60m. The corporate exercises are said to help the company raise funds to facilitate the financing of new vessels, repay borrowings and working capital. (Financial Daily) 

Haisan gets letter of demand for RM42.2m
Haisan Resources has received a letter of demand from Messrs Zul Rafique & Partners acting for CapOne and Malaysian Trustees (MTB) for a sum of RM42.2m. The sum included the principal sum (of RM40m), interest accrued and default interest from an unsecured fixed rate term loan facility, Haisan said in a filing with Bursa Malaysia yesterday. The company and its wholly-owned subsidiaries also received three letters of demand for the repayment of principal and interest in respect of the banking facilities granted by financial institutions, namely CIMB Bank, Public Bank and CapOne. Haisan said the reason for the default was because the company did not have sufficient funds to meet the principal and interest payment due. “The company has appointed a scheme adviser, UHY Diong Advisory (KL) SB, to formulate a conclusive debt restructuring proposal (DRP),” Haisan said. (StarBiz) 

20100630 1023 Soy Oil & Palm Oil News.

Soyoil futures stumbled Tuesday, retreating to 8-month lows. Speculative led selling was featured, as broad based weakness, with crude oil tumbling and building supplies amid sluggish domestic demand weighing on prices, analysts said. December soyoil settled 0.99 cent, or 2.6%, lower at 36.81 cents per pound. Speculative funds were estimated sellers of 5,000 lots in soyoil.(Source:CME)

Palm oil hits 7-mth lows on global economy
KUALA LUMPUR, June 29 (Reuters) - Malaysian crude palm oil futures slid to 7-month lows, as sentiment was hurt by a global selloff in stocks and commodities.
"There are some technical selloff as the market is a bit depressed after crude oil, soyoil and regional equities markets fell," said a trader in Kuala Lumpur.

Japan soybean imports seen up 1.5 pct in 2010-ministry
TOKYO, June 29 (Reuters) - Japan, the world's second biggest soybean buyer, is forecast to import 3.44 million tonnes of soybean in 2010, up 1.5 percent from 3.39 million a year earlier, as ample global supply is expected to keep prices relatively low.
Japan's Ministry of Agriculture also said in a report released on Tuesday that the country's soybean demand for crushing is forecast to rise to 2.53 million tonnes in 2010, up 1.8 percent from 2.485 million tonnes in 2009.