20100706 1825 FCPO EOD Daily Chart Study.

FCPO closed : 2301, changed : +11 points, volume : higher.
Bollinger band reading : downside biased with pullback correction.
MACD Histrogram : getting lower, seller lock in partial profit.
Support : 2300, 2270, 2250 level.
Resistant : 2330, 2350, 2370 level.
Comment :
Seller profit taking activities lead market to closed marginally higher in better volume traded following a rebound in soy oil and crude oil futures prices. Daily chart shows that market started to have a pullback correction within a downside biased market and looks like the correction could still continue 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.

20100706 1746 FKLI EOD Daily Chart Study.

FKLI closed : 1311.5 changed : +18 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : turned upward, seller take profit.
Support : 1310, 1300, 1290 level.
Resistant : 1318, 1325, 1330 level.
Comment :
Improving volume FKLI recovered boldly to closed higher formed a huge wide range bar covered entirely the previous down bar candle as most regional market traded positively. Daily chart shows that market opened lower and tested lower support level near lower Bollinger band and pullback upward doing correction with the reading still 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.

20100706 1304 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1295 changed : +1.5 point, volume :high.
Bollinger band reading : correction downside biased.
MACD Histrogram : recovering, seller taking profit.
Support : 1290, 1285, 1280 level.
Resistant : 1300, 1310, 1318 level.
Comment :
FKLI ended the first session little higher after market opened lower followed by seller profit taking pushed price to recover upwards. Hourly chart shows that market is having a pullback correction within a downside biased market.

20100706 1253 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2287, changed : -3 points, volume : low.
Bollinger band reading : downside biased with pullback correction.
MACD Histrogram : getting lower, seller in control.
Support : 2270, 2250, 2230 level.
Resistant : 2300, 2330, 2350 level.
Comment :
FCPO market continue to trade in negative breath as market tested lower support level followed by partial profit taking activities lifted price upward to closed just slightly lower. Hourly chart shows a taking place pullback correction with still a downside biased market reading.

20100706 1143 Global Economic News.

New Zealand: Business confidence falls on domestic demand
New Zealand’s business confidence fell in the second quarter as domestic demand slowed, weakening the case for further interest-rate increases. Declining confidence adds to signs that economic growth and inflation pressures may not accelerate as quickly as the central bank forecasts. (Bloomberg)

Australia: Annual inflation gauge falls to 3.6% on food
A gauge of Australia’s annual inflation held above the top of the central bank’s target range in June after a jump in prices for fruit and vegetables. Consumer prices advanced 3.6% from a year earlier, after gaining 3.7% in May. An economic expansion in Australia has pushed inflation above the central bank’s target range of 2% to 3%. (Bloomberg)

Greece: Considers return to markets next year on economy gains
Greece may beat a target to reduce the European Union’s second-widest budget deficit, allowing the country to return to markets to raise debt, Finance Minister George Papaconstantinou said._ “Our hope is to tap markets sometime in 2011,” though Greece can hold off until 2012, Papaconstantinou said. (Bloomberg)

Germany: Cuts will trim budget deficit by 40%
Finance Minister Wolfgang Schaeuble proposed spending cuts that will reduce Germany’s federal budget deficit by about 40% over the next five years. The total deficit cuts from 2010 through 2014 are about EUR137bn, with energy subsidies and the armed forces facing some of the biggest spending reductions (Bloomberg)

EU: Euro may rise after break of ‘neckline’
The euro may advance to a two-month high against the dollar after breaking through the so-called neckline of an “inverse head-and-shoulders” pattern. Europe’s single currency strengthened 1.6% last week to USD1.2566, placing it above the neckline at USD1.2420 (Bloomberg)

EU: Retail sales increase, led by gains in Germany, France
European retail sales rose in May as households in Germany, France and Spain stepped up spending. Sales in the 16-nation euro area rose 0.2% from April, when they fell 0.9%. In the year, sales rose 0.3%. European consumers may hold back spending over the coming months after unemployment remained at the highest in almost 12 years in May. (Bloomberg)

20100706 1141 Malaysia Corporate News.

Carrefour launches US$1bn sale of South-East Asian units
Carrefour has launched the sale of its units in Malaysia, Singapore and Thailand, sources with direct knowledge of the matter said yesterday, in a deal that could raise around US$1bn (RM3.22bn) for the French retailer. Carrefour, the world's second-biggest retailer, has exited Japan and Korea over the years to focus on bigger and fast-growing markets such as India. The French group, like many other retailers in Europe and the United States, has been struggling due to challenging economic conditions. (Reuters)

Faber wins Abu Dhabi job
Faber Group’s subsidiary, Faber LLC, has been conditionally awarded a contract in Abu Dhabi worth RM20.38m. The contract from Abu Dhabi Health Services Co was related to the initial repair, maintenance and operation works for all mechanical systems and equipment, and various electrical installations and fittings at Sheikh Khalifa Medical City and affiliated buildings in Abu Dhabi Island. The project completion is three years, (StarBiz)

Mah Sing, Mahajaya seal RM100m JV in Kinrara
Mah Sing Group and Mahajaya will jointly develop a residential project on a 13.2-acre (5.34ha) parcel of prime residential land in Kinrara, Selangor. Under the terms of their joint venture agreement, Mahajaya’s subsidiary and the landowner Medan Damai SB will grant Mah Sing’s subsidiary, Grand Prestige Development SB, exclusive rights to develop the land and sell the residential units in return for an entitlement sum of RM35.4m to be paid progressively over a 12-month period. (FinancialDaily)

Timber industry affected by high freight rates
The timber industry is adversely affected by the unstable and high sea freight rates from Port Klang to Europe, says Timber Exporters’ Association of Malaysia vice-president Low Ching Cheong. He said the freight rate to major European ports was currently about US$2,800 per 40-footer container and was expected to increase after the summer holidays due to peak season surcharge. “The average freight rate to main European ports was about US$1,800 per 40-footer container in 2008. It went down to US$600 in June 2009 due to the economic crisis but went up to US$3,200 in March before falling to the current level,” he told StarBiz. (StarBiz)

Naim bags RM40m jetty contract
Naim Holding’s subsidiary, award-winning developer and contractor Naim Cendera Engineering Sdn Bhd has been awarded by Assar Senari Holdings SB a RM40m contract to build an oil and gas jetty in Tanjung Manis, Sarawak. The project is part of the Central Oil Distribution Terminal (CODT) which will distribute oil from Petroliam Nasional and Shell to the central region of Sarawak. (BT)

CapitaMalls Asia acquires Gurney Plaza extension
CapitaMalls Malaysia announced yesterday that Gurney Plaza SB has exercised a put option requiring CapitaRetail Gunrey SB a wholly owned subsidiary of CapitaMalls Asia Ltd to purchase Gurney Plaza’s nine storey extension block for RM215m by 15 April, 2011. (FinancialDaily)

20100706 1127 Global Market News.

July 6 (Bloomberg) -

- China’s property market is beginning a “collapse” that will hit the nation’s banking system, said Kenneth Rogoff, the Harvard University professor and former chief economist of the International Monetary Fund. As China’s economy develops, “especially at the speed it’s growing, it’s going to have bumps,” said Rogoff, speaking in an interview with Bloomberg Television in Hong Kong. He also said that while recoveries across the global economy are “very slow,” the danger of a return to recession isn’t “elevated.”

20100706 1117 Palm Oil News.

Palm at 7-1/2-month lows on currency, demand worry
JAKARTA, July 5 (Reuters) - Malaysian crude palm oil hit a fresh seven-and-a-half month low below 2,300 ringgit a tonne on Monday due to a stronger local currency and concerns about demand for vegetable oils.
World equities fell for the fourth day running on Monday and the dollar traded close to two-month lows on growing worries about slowdowns in the United States and in China -- a major importer of palm oil.

20100706 0826 FKLI EOD Daily Chart Study.

FKLI closed : 1293.5 changed : -12 points, volume :higher.
Bollinger band reading : side way range bound testing support.
MACD Histrogram : getting lower, seller increase exposure.
Support : 1290, 1285, 1280 level.
Resistant : 1300, 1310, 1318 level.
Comment :
FKLI dropped significatly lower with increase volume changed hand successfully break and stayed below crucial and pshychological 1300 support level. Daily chart show that price is likely to continue testing lower support level near the lower Bollinger band level with the outlook having a side way range bound reading.
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.