Monday, July 19, 2010

20100719 1837 FCPO EOD Daily Chart Study.

FCPO closed : 2454, changed : +5 points, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : getting higher, buyer still defending.
Support : 2450, 2400, 2370 level.
Resistant : 2470, 2500, 2520 level.
Comment :
No kidding FCPO recorded 8th continuous gain in lower volume traded despite soy oil and crude oil futures price having downward corrections. Daily chart shows market reacted to soy oil and crude oil development by opened lower buy buyer persisted to maintain and push price higher during last few minuted before closing.
Outlook still suggesting a upside biased market 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.

20100719 1834 FKLI EOD Daily Chart Study.

FKLI closed : 1340 changed : -0.5 points, volume : higher.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : weakening, buyer profit taking.
Support : 1337, 1330, 1325 level.
Resistant : 1345, 1350, 1360 level.
Comment :
1 tick lower FKLI traded range bound through out the whole day until last minutes surge to closed at the high of the day despite negative news on Ireland bond downgrade. Not much action on daily chart and market still trading range bound little upside biased with volume traded still consider low.
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.

20100719 1308 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1334 changed : -6.5 points, volume : low.
Bollinger band reading : side way down side biased.
MACD Histrogram : getting lower, buyer profit taking with seller testing market.
Support : 1330, 1325, 1318 level.
Resistant : 1337, 1345, 1350 level.
Comment :
FKLI traded lower in thin trading volume after negative closed in U.S. market. Hourly chart wise, market opened lower and buyer defending their position putting effort to move market upward trying to test middle Bollinger band level but seem not getting desirable result with the reading suggesting a downside biased market development.

20100719 1247 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2436, changed : -13 points, volume : low.
Bollinger band reading : correction range bound, upside biased.
MACD Histrogram : continue lower, buyer taking profit.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
Correction take place FCPO ended the first session lower in slow volume changed hand after last week excessive surge following the steps of soy oil and crude oil futures price. Hourly chart shows that market opened lower and stay side way range bound with the reading suggesting a correction range bound upside biased market.

20100719 1130 Global Market News.

Asia stocks slide as US growth fears escalate
SYDNEY, July 19 (Reuters) - Asian stocks fell as a sharp drop in U.S. consumer sentiment added to worries that its economic recovery is losing momentum, with the cautious tone also pulling the euro from two-month highs.
"The key issue driving the market at the moment is slower global growth," said George Clapham, head of equities at Arnhem Investment Management in Australia.  
Moody's Investors Service has downgraded Ireland's sovereign bond ratings by one notch to Aa2, citing loss of financial strength, weak growth prospects and banking system problems, the credit rating agency said in a press release Monday. The government's "gradual but significant" loss of financial strength is reflected by the "substantial" rise in the ratio of debt to gross domestic product and a weakening of debt affordability, Moody's said. The country faces weak growth prospects because of a severe downturn in financial services and real estate, as well as a continued contraction in credit to the private sector, it said.

GLOBAL MARKETS: Weak corporate revenues, US data undercut stocks
NEW YORK, July 16 (Reuters) - Global share prices slid on Friday after disappointing revenue reports from bellwether U.S. corporations dovetailed with subdued U.S. inflation and slumping consumer confidence data, driving up the price of Treasuries as investors sought safety.
"Today's U.S. reports provided an unpleasant close to a dismal week of data," said Mike Englund, chief economist at Action Economics in Boulder, Colorado. "The mix leaves an unwelcome lull in activity in the second quarter that has apparently extended into the first month of the third quarter."

20100719 1114 Global Economic News.

Japan: Service demand falls as stimulus boosts wane
Japan’s demand for services fell in May, adding to signs that the export-fueled recovery has been slow to spread to households. The tertiary index, which captures 63% of the economy, slid 0.9% from April, when it advanced a revised 2.4%. (Bloomberg)

UK: BOE’s Sentance says ‘gradual’ rate rise will support recovery
Bank of England policy maker Andrew Sentance said a gradual interest rate increase from a record low to fight inflation will help support the economic recovery. “If we can raise interest rates in a gradual way, that will be helpful for the recovery because it will mean there won’t be a big shock to the business community,” he said. (Bloomberg)

US: Confidence tumbles risking slowdown
Confidence among US consumers tumbled in July to the lowest level in a year, heightening the risk of a slowdown in economic growth. The Thomson Reuters preliminary index of consumer sentiment decreased to 66.5, the lowest since August and less than the most pessimistic forecast of economists surveyed. (Bloomberg)

US: Manufacturing contracts, prices drop
Manufacturing in the US contracted in June by the most in a year and wholesale prices declined more than anticipated, underscoring the Federal Reserve’s reduced forecasts for economic growth and inflation. Factory output fell 0.4% in June, while producer prices slid 0.5% after a 0.3% decline the month before. (Bloomberg)

US: Prices excluding food, fuel exceed forecast
The cost of living in US excluding food and energy prices, climbed in June more than forecast, easing concern that a slowdown in growth will spur deflation. The core rate of the consumer price index increased 0.2%, the most since October. Prices overall fell 0.1%, a third straight decrease. (Bloomberg)

U.S: Demand for long-term assets weakened in May as investors abroad sold stocks and foreign central banks reduced their holdings of Treasury bills. Net buying of long-term equities, notes and bonds totaled USD 35.4b for the month, compared with net purchases of USD 81.5b in April. Including short-term securities such as stock swaps, total net flows were USD 17.5b, compared with USD 13b the previous month. (Source: Bloomberg)

20100719 1113 Malaysia Corporate News.

US stocks tumble as banks, GE trail revenue estimates
US stocks slid on Friday, wiping out a weekly advance, as revenue at Bank of America Corp., Citigroup Inc. and General Electric Co. missed analyst estimates and a gauge of consumer confidence slid to the lowest in a year. The Standard & Poor’s 500 Index dropped 2.9% to 1,064.88 at 4 pm in New York, the biggest drop this month. It fell 1.2% this week, erasing its gain after the Thomson Reuters/University of Michigan index of consumer sentiment fell more than economists estimated. The Dow Jones Industrial Average lost 261.41 points, or 2.5%, to 10,097.90 on Friday. (Bloomberg)

Honam acquires Titan for RM2.9bn
Honam Petrochemical Corp, South Korea's second largest ethylene maker, will pay RM2.9bn or RM2.35 per share to buy a big chunk of Titan Chemicals Corp Bhd from three institutional investors in Malaysia. Stateowned investment fund Permodalan Nasional (PNB), AmanahRaya Trustees and The Chao Group yesterday signed an agreement with Honam to sell off their combined 72% interest in Titan. Honam said it will buy the remaining shares in Titan from the open market by November and effectively take full control of the company. The South Korean company said it wanted to expand capacity and overseas revenue. (BT)

At least 4 suitors for Time
UEM Group has received at least four bids or offers to purchase its stake in Time Engineering, with prices ranging from 20 sen to 40 sen a share, sources said. It is not clear how much of its 45.03% equity interest UEM is looking to part with, but a sale of more than 33.3% could trigger a mandatory offer, if a waiver is not obtained. The sources said the internal deadline for UEM to make a decision on the stake sale has been pushed back to the end of this month. UEM has denied an announcement about the sale of its stake in Time Engineering will be made this week after refuting news reports last week. (Financial Daily)

UEM-Bina Puri venture wins RM997m LCCT deal
UEM Construction SB (UEMC) has won a RM997.23m contract with Bina Puri Holdings to build the muchanticipated permanent low-cost carrier terminal (LCCT) at the KL International Airport (KLIA). Malaysia Airports Holdings (MAHB) told Bursa Malaysia yesterday that it had appointed the UEMC-Bina Puri joint venture (JV), a 60:40 JV that was established in February, as the main contractor for the construction of the new LCCT. (BT)

Naim bags USD300m Libyan contract
Sarawak-based builder Naim Holdings has bagged a US$300m (RM963m) contract to build a 50-storey tower block in Tripoli, Libya for Libya's Al-Waatasemu Charity Foundation. Group managing director Datuk Hasmi Hasnan said construction is expected to start September and is expected to be completed in 36 months. (BT)

F&N Dairies may raise product prices
F&N Dairies (M) may increase the price of its products due to the sugar and fuel price hike from today. Chief operating officer (Dairies Division) Tony Lee, however, said the group has not made a decision on when the upward price revision will take effect. "As condensed milk contains a lot of sugar, the increase in sugar price by 25 sen a kilogram will definitely bring a big impact to the production." Since the price rationalization announcement was only made yesterday, we have to make the assessment on the impact before we decide to raise the price. "Prices of dairy products may increase by 10 sen," he told reporters after launching the new look for the "Tea pot" brand yesterday.(BT)

Sapura Group eyes Pos Malaysia
Sapura Group, one of the country's largest and most established bumiputera companies, is said to be one of the parties interested in acquiring Khazanah Nasional's 32% stake in Pos Malaysia. (Edge Weekly)

Proton, Lotus to produce sub-brand car
National automaker Proton Holdings is looking at producing a sub-brand car, partnering with its wholly owned Lotus Group International, said a source. With Proton being a mass-market car, while Lotus is a high end, the sub-brand car will be something in between. (Edge Weekly)

Lafarge: Lafarge SA sold stake in LMCB. French parent, Lafarge S.A. has sold a 11.2% stake in Lafarge Malayan Cement by way of a placement. Lafarge S.A. retains the management control and remains the largest shareholder with a 51% stake. The stake was transacted with a net proceeds of EUR141m, at RM6.24 per share. (Source: Bursa Announcement)

MSC: To dispose of non-tin investments by year-end. Malaysia Smelting Corp Bhd (MSC), the world's largest integrated tin mining and smelting group is targeting to complete the disposal of its non-tin investments and assets abroad by year-end. The group is looking at divesting its gold business in Australia, nickel in Vietnam, coal in Indonesia as well as copper and zinc operations in the Philippines. (Source: The Star)

REIT: Managers seek cut in withholding tax. Managers of real estate investment trusts (REITs) are hoping for a reduction in withholding tax for REIT investors in next year's budget, to spur the industry growth and make it more competitive. REIT managers are also proposing for a relaxation on fund-raising restrictions. (Source: Business Times)

1MDB: Picks project partners. IMalaysia Development Bhd (1MDB), the agency tasked to develop most of the government land is identifying partners to draw up a masterplan for its Bandar Malaysia and Kuala Lumpur International Financial District (KLIFD) projects in the city. Separately, 1MDB is awaiting clarification on the Bakun undersea cable transmission to assess the impact of a potentially larger supply of hydropower for its projects in Sarawak. (Source: The Star)

Southern Steel: Mandatory takeover offer at RM2.05 a share. Southern Steel Bhd's (SSB) shareholder NatSteel Holding Pte Ltd has sold its 27.03% stake in the company to Signaland Sdn Bhd for RM232.4m. Signaland, Hume Industries (Malaysia) Bhd and Hong Bee Harware Company Sdn Bhd, now control 70.3% of SSB stock. Signaland is extending a mandatory takeover offer for the outstanding SSB shares at RM2.05 a share. (Source: Malaysian Reserve)

20100719 1010 Soy Oil & Palm Oil Related.

Soyoil futures were lower, succumbing to spillover weakness from crude oil and soybeans. The market was also pressured by meal/oil spreading as well as the weight of ample U.S. inventories, analysts said. December soyoil settled 0.31 cent, or 0.8%, lower at 39.06 cents per pound.(Source: CME)