20100727 1827 FCPO EOD Daily Chart Study.

FCPO closed : 2485, changed : -12 points, volume : higher.
Bollinger band reading : correction upside biased.
MACD Histrogram : weakening, buyer profit still taking profit.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2520, 2550 level.
Comment :
Morning profit taking session following by second half session bargain hunting resulted FCPO tested below support levels and recovered up to closed at higher ground. Daily chart wise, reading still shows that market is in correction phase within a upside biased development with possible resumption upward movement.
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.

20100727 1826 FKLI EOD Daily Chart Study.

FKLI closed : 1355.5, changed : +0.5 point, volume : higher.
Bollinger band reading : range bound, upside biased.
MACD Histrogram : , buyer position remained intact.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385 level.
Comment :
Increased volume half point higher FKLI traded range bound testing support and resistant level and closed right at the middle. Daily chart reading suggesting a side way range bound upside biased market 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.

20100727 1309 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1351.5, changed : -3.5 points, volume : high.
Bollinger band reading : side way rage bound little upside biased.
MACD Histrogram : fall lower, buyer taking profit.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385 level.
Comment :
FKLI eased little lower in high volume transaction as buyer tempted to secure profit after market opened higher and push price to lower ground plus accelerating rollover activities. Hourly chart reading suggesting market to trade side way range bound little upside biased.

20100727 1300 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2444, changed : -29 points, volume : moderate.
Bollinger band reading : downside biased.
MACD Histrogram : falling, buyer closing position.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
FCPO continue to retrace lower in moderate volume traded following overnight correction soy oil futures prices.
Hourly chart wise, market opened gap lower and continue head south tested and break below 2 support levels and reached the lower Bollinger band level for lunch break. Reading recorded a downside biased market development for the near term testing lower support level.

20100727 0926 Global Economic News.

Japan: Export growth slackens
Japanese exports continued to rise in June on shipments to Asia but the pace of growth was the slowest this year amid signs that recovery may be losing steam as global demand falls. "We previously saw a robust, Vshaped recovery in exports after the financial crisis. Now the speed of the recovery is tapering off," said Atsushi Kamio, economist at the Daiwa Research Institute. (BT)

US: Home sales recover strongly
Sales of new US single-family homes rebounded strongly in June from the prior month's record low, driving the number of houses on the market to its lowest level in nearly 42 years. Sales jumped 23.6% to a 330,000 unit annual rate from a downwardly revised 267,000 units in May. (BT)

Singapore: Factory output rises at slowest pace in four months
Singapore’s industrial production rose at the slowest pace in four months in June as pharmaceutical and electronic manufacturers made fewer goods, suggesting demand may ease as the global recovery cools. Output at factories, which accounts for about a quarter of the economy, climbed 26.1% in June from a year earlier, after a revised 58.4% surge in May. (Bloomberg)

South Korea: Construction shrinks as economy grows
South Korea’s construction industry had its biggest annual contraction since at least 2008 in the second quarter, deepening a dilemma for policy makers faced at the same time with a sustained expansion in the broader economy. Construction shrank 0.8% over the three months through June compared with the prior quarter, the third drop in four quarters, and 0.5% from a year ago (Bloomberg)

India: May raise rates as higher prices spark protests
India’s central bank is likely to raise interest rates for the fourth time since March after a strike to protest rising prices brought much of the nation to a halt this month. The Reserve Bank of India will probably increase its reverse repurchase rate by a quarter-point to 4.25%. (Bloomberg)

Australian: Inflation probably quickened, stoking rates pressure
Australia’s annual inflation rate probably accelerated above the top of the central bank’s target range last quarter, increasing pressure on policy makers to boost borrowing costs during a federal election campaign. The consumer price index rose 1% in the quarter for an annual gain of 3.4%. (Bloomberg)

Global: Economy may slow to 3.25% from 4.7% average
The new normal for the world economy may be arriving as the US, Europe and China all decelerate simultaneously. After policy stimulus and inventory-rebuilding pulled the major economies out of recession with 5% growth in the first quarter, they are slouching toward a weaker expansion, even as they show signs of dodging a double-dip. Global growth may average 3.25% to 3.5% in the next three to five years. (Bloomberg)

20100727 0925 Malaysia Corporate News.

CIMB: Shareholders approve acquisition of 19.67% stake in CIMB Niaga. CIMB had received approval from its shareholders to acquire 19.67% stake in PT Bank CIMB Niaga TBK (CIMB Niaga) for RM1.9b from Khazanah Nasional Bhd via the issuance of new shares. The acquisition will increase CIMB stake in CIMB Niaga from 78% to 98%. (Source: The Star)

Kencana: KM1 to boost Kencana's earnings. Kencana Petroleum Bhd's USD150m (RM478.5m) acquisition of the remaining 75% of oil rig KM1 will be completed by the 1st week of August and will contribute positively to the company's bottom line immediately. The acquisition gives Kencana full ownership of KM1 which is currently chartered on a 5 year, RM827m Petronas drilling contract. This contract accounts for about a third of Kencana's existing RM2.4b order book. (Source: The Edge Financial Daily)

Kenmark: Stock staring at Aug 9 suspension. Beleagured Kenmark Industrial Co (M) Bhd said it was very likely that its stock will be suspended on August 9 as it sees no way how the company would be able to furnish its audited financial statements for the 2010 fiscal year within the time required by Bursa Securities. (Source: Business Times)

F&N Holdings: Kirin to buy a stake in parent Fraser & Neave from Temasek. Japan's Kirin Holdings will buy a 14.7% stake in beverage and property conglomerate F&N from Singapore state investor Temasek Holdings for USD953m (RM3.05b) to accelerate its expansion in Asia. Kirin has spent nearly USD5b on acquisitions in the past 2 years to diversify its operations and grow outside its saturated home market of Japan, where it vies for the top spot in beer sales with Asahi Breweries. (Source: The Edge Financial Daily)

MAHB: Inks pact on China airport jobs. Malaysia Airports Holdings Bhd (MAHB) has sealed an initial pact to help provide airport operation, management and technical consultancy for the Yongzhou Lingling Airport in Hunan province and other airports in China. The group signed a memorandum of understanding with Nagamas Enterprise (HK) Ltd (NEL) to explore the possibility of providing the services. (Source: Business Times)

PKA won't pay
The Port Klang Authority (PKA) is set to hold back its final payment of RM222.58m to Free Zone Capital (FZCB), one of the four special-purpose vehicles (SPVs) established by Port Klang Free Zone (PKFZ) turnkey contractor Kuala Dimensi SB (KDSB) to raise funds from the market. Sources said the PKA board had decided not to make the final payment to FZCB in view of its legal suit against KDSB, with a claim totaling about RM1.4bn. (Financial Daily)

Khazanah wins bid for Parkway
Khazanah Nasional has emerged victorious in the battle for control of Asia’s largest hospital chain Parkway Holdings Ltd. This follows the exit of Fortis Healthcare Ltd, who was also seeking to strengthen its foothold in the regional healthcare market. Yesterday, Fortis told the Singapore Stock Exchange that it had accepted Khazanah subsidiary Integrated Healthcare Holdings Ltd’s higher cash offer of SGD3.95 (RM9.25) per share and said it would divest its entire stake in Parkway to the Malaysian government arm. (Financial Daily)

Mudajaya slumps on SC probe report
Shares of power plant builder Mudajaya Group fell for a second day as jittery investors booked in profits from recent sharp gains on a news report that the company had been probed by the Securities Commission (SC). Mudajaya told the exchange yesterday it “has not been directly queried by the SC” but assured investors that “it is more than willing to extend its full cooperation” if queried by the regulator. “The board of Mudajaya is not aware of the nature of the complaint about the company by anyone whosoever,” it said in reply to the exchange’s query on the report published over the weekend. (StarBiz)

GPRO plans to acquire precision casting AB Tech for RM140m
GPRO Technology plans to acquire precision casting and injection moulding specialist AB Technology SB (AB Tech) at an indicative price of RM140m. GPRO said the proposed acquisition would be fully satisfied by the issuance of new GPRO shares at an issue price of 10 sen. Yesterday, GPRO signed a heads of agreement to acquire AB Technology from Grand Intergroup SB and Whatever Investment Pte Ltd. (Financial Daily)

Leong Hup plans RM30m broiler farm
Integrated poultry company Leong Hup Holdings plans to spend up to RM30m this year to set up a broiler farm in the Bio Desaru Food Valley project in the Kota Tinggi district. Executive director Tan Sri Francis Lau Tuang Nguang said the farm would be located on 72.84ha dedicated for poultry farming activities within the 3,642.17ha Bio Desaru Food Valley, the first big-scale organic food farm in the country. “We are investing between RM20m and RM30m in the farm, which will have the capacity to produce 500,000 to over one million fowls within the next three years,’’ he said. Like other chickens reared in Leong Hup’s farms nationwide, the birds at the Bio Desaru Food Valley farm would be bred in broiler houses, Lau said. (StarBiz)

B-Retail IPO oversubscribed
Berjaya Corp (BCorp) said that as at the closing date of the initial public offering of Berjaya Retail (B-Retail) at 5pm on 22 July, applications for the shares by BCorp minority shareholders were oversubscribed by 17.52 times. It told Bursa Malaysia that a total of 7,562 applications for 55.57m 50 sen shares were received for the 3m shares reserved for applications by the minority shareholders. (StarBiz)

KBB under PN1 after defaulting payments on RM16m debts
KBB Resources has been designated as an affected listed issuer pursuant to Practice Note No 1/2001 (PN1) of the main market listing requirements of Bursa Malaysia Securities due to repayment default. KBB’s board of directors said the company and seven of its wholly-owned subsidiaries were in default of 18 banking facilities as they had not been able to make the repayments. The total amount owed to a number of financial institutions, both local and foreign, was about RM16.1m as of 21 July 2010. KBB said it had initiated a debt restructuring plan and had submitted an application to the Corporate Debt Restructuring Committee (CDRC) in respect of the restructuring scheme. (Financial Daily)

20100727 0909 Soy Oil & Palm Oil Related News.

Palm ends 1 pct down after key exports data
KUALA LUMPUR, July 26 (Reuters) - Malaysian crude palm oil ended 1 percent lower, after data showed a drop in palm oil exports in the first three weeks of July, indicating weak overseas demand.
"The exports are not very supportive to the current market, players are watching external factors that are related to the weather," said a trader with a Kuala Lumpur-based foreign brokerage.

20100727 0908 Global Market News.

Asian stocks rise on US data, euro inches up
HONG KONG, July 27 (Reuters) - Asian stocks rose to their highest in two and a half months, boosted by solid U.S. housing data, while the euro inched up towards two-month peaks on relief over stress tests on European banks.
"The environment is gradually improving, after U.S. new home sales data and European banks' stress tests, but investors are still not entirely convinced that the recovery is solid," said Soichiro Monji, chief strategist at Daiwa SB Investments.

NEW YORK, July 26 (Reuters) - Global stocks rose on Monday after U.S. data showed a pick-up in new home sales, reviving hopes for improvement in a tepid economic recovery, while the euro firmed against the dollar on increased risk tolerance.
"There was a big revision down in the prior month, but then obviously a rebound this month. We're still at these trough levels, which we've been bouncing along. It's a good sign that we did see an increase after the tax credit expired," said Michael O'Rourke, chief market strategist at BTIG LLC, in New York.

US trims 2010 deficit forecast, economy faces headwinds
WASHINGTON, July 23 (Reuters) - The Obama administration warned on Friday the U.S. economy had encountered "strong headwinds" and the country's fiscal challenge remained grave, but it lowered an estimate for the budget deficit this year.
In broad terms, no major changes were made in the updated outlook for the country's fiscal path over the next decade for the country's deficits and debts, which the White House readily admit remain too high.

US manufacturers continue streak of profit beats
BOSTON/NEW YORK, July 23 (Reuters) - Honeywell International Inc  and Ingersoll-Rand Plc  raised their 2010 profit forecasts and General Electric Co  boosted its dividend in moves that underlined U.S. manufacturers' growing confidence in the economic recovery.
Honeywell boosted its profit forecast for the rest of 2010, saying it expected to see organic sales -- excluding the effect of acquisitions and currency fluctuations -- to accelerate through the second half.

Seven banks fail Europe test, credibility questioned
LONDON/MADRID, July 23 (Reuters) - Just seven European banks failed a health check and were ordered to raise their capital by 3.5 billion euros ($4.5 billion), much less than expected, confirming fears the continent's long-awaited stress test was too soft.
Results of the test of how 91 banks in 20 countries would cope with another recession was released on Friday in a bid to restore investor confidence after the Greek debt crisis spooked markets earlier this year. But it fell on deaf ears.