20100729 1855 FCPO EOD Daily Chart Study.

FCPO closed : 2514, changed : +19 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : weakening, buyer still in and locking in profit.
Support : 2500, 2470, 2450 level.
Resistant : 2520, 2550, 2570 level.
Comment :
FCPO ended the day registering some gain with better volume transacted after market opened and tested higher but profit taking activities pressured price to downward resulted FCPO to closed off the high of the day. Daily chart technical reading suggesting an upside biased market market development but with weak supportive volume.
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.

20100729 1854 FKLI EOD Daily Chart Study.

FKLI closed : 1362.5, changed : +6.5 points, volume : lower.
Bollinger band reading : side way range bound, upside biased.
MACD Histrogram : reverse upward, buyer still in charge.
Support : 1360, 1350, 1345 level.
Resistant : 1375, 1385, 1395 level.
Comment :
Despite thin volume trading and 1 day ahead of expiry, FKLI still managed to closed the day at higher ground doing 4 points premium compare to cash market. Daily chart wise, market outlook suggesting a side way range bound upside biased development.
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.

20100729 1300 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1356.5, changed : +0.5 point, volume : low.
Bollinger band reading : side way range bound.
MACD Histrogram : recovering, not much participation from both buyer and seller.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385 level.
Comment :
Near expiry FKLI traded in thin volume tight range market closed 1 tick higher for lunch. Hourly chart study suggesting a side way range bound little upside biased market development.

201000729 1258 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2522, changed : +27 points, volume : moderate.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : rising, buyer remained in charge.
Support : 2500, 2470, 2450 level.
Resistant : 2520, 2550, 2570 level.
Comment :
Buyer dominated FCPO continue to trade firmer with supportive volume changed hand after market opened gap higher and continue to move upward. Hourly chart show market break above 2500 resistant level and now reached the upper Bollinger band. Outlook wise, technical reading suggesting a side way range bound upside biased market.

20100729 1236 Local & Global Economics News.

Australia: Consumer prices rose 0.6% QoQ in the 2Q10 from the previous three months, the Bureau of Statistics said in. Prices increased 3.1% YoY. (Source: Bloomberg)

Malaysia: Miti taking proactive measures to attract FDIs
The drop in foreign investments into Malaysia is not as bad as revealed by the Unctad World Investment Report (WIR) 2010 and changes are under way to ensure the country competes to attract high value-added investments. International Trade and Industry Minister Datuk Seri Mustapa Mohamed said net investments in the first quarter rebounded to USD1.41bn and exceeded that of the whole of last year and he had told the Cabinet that the ministry would be taking proactive measures to encourage mo re foreign and domestic investment. (StarBiz)

Malaysia: Consumer confidence turns more optimistic
Consumer confidence in Malaysia inched up to 99 index points in the second quarter from 98 points in the first quarter of this year, according to the latest Nielsen Global Consumer Confidence Survey. In a statement, Nielsen said the latest consumer confidence index gain in Malaysia also represented an 18-point surge from an all-time low in the first quarter last year. Consumer Confidence Index levels above and below a baseline of 100 indicate degrees of optimism and pessimism respectively. (StarBiz)

New Zealand: Raises benchmark rate for second month. "Further removal of monetary policy stimulus is appropriate," central bank Governor Alan Bollard said in a statement released in Wellington after boosting the official cash rate by a quarter percentage point to 3%. (Source: Bloomberg)

Japan: Slower production may build case for stimulus extension
Japanese industrial production probably grew at the slowest pace in more than a year last quarter, adding pressure on the government to extend consumer incentives as export growth cools. Factory output rose 0.2% in June from May, according to the median estimate of 26 economists surveyed by Bloomberg News ahead of a Trade Ministry report to be released in Tokyo. That would cap the smallest quarterly gain since production fell in the first three months of 2009. (Bloomberg)

Japan: Refining hits 10-week high at oil plants
Oil refining in Japan, the world’s third-largest consumer of crude, rose to a 10-week high as producers resume operations after maintenance shutdowns. The nation’s refiners were using more than 75% of capacity in the week ended 17 July, the highest rate since 8 May, according to data from the Petroleum Association of Japan. That compares with this year’s low of less than 62% in the week ended 19 June. (Bloomberg)

EU: ECB says banks tightened credit standards further
European banks continued to tighten credit standards for companies and households in the second quarter as the sovereign debt crisis impaired their access to funding, the European Central Bank said. “The downward trend in the net tightening of credit standards on loans to enterprises, which came to a halt in the first quarter of 2010, was reversed in the second quarter, increasing from 3% to 11%,” the Frankfurt-based central bank said in its quarterly Bank Lending Survey. (Bloomberg)

S. Korea: Current-account surplus widened to a one-year high in June as the global recovery supported demand for the country's cars and semiconductors. The windfall was USD 5.04b, from a revised USD 3.82b in May, the Bank of Korea said. The surplus was the biggest since June 2009. (Source: Bloomberg)

UK: King forecasts no early return to ‘normal’ rate level
Bank of England Governor Mervyn King said there may be a “considerable” way to go before UK interest rates return to “normal” as policy makers debate when to start withdrawing emergency stimulus from the economy. “There will come a point when we will certainly need to ease off the accelerator and return Bank Rate to more normal levels,” King told lawmakers in London. “I look forward to that time because it will probably be a signal that there is a smoother drive ahead, with the economic outlook improving in a durable way. But I fear there is some considerable distance to travel before we can begin to use the word ‘normal’.” (Bloomberg)

US: Durables show investment picking up
Business investment in the US picked up in the second quarter, helping sustain the economic recovery, June data on durable goods showed. Orders for non-military capital equipment excluding aircraft climbed 0.6% last month after jumping 4.6% in May, more than previously reported, figures from the Commerce Department showed in Washington. Sales of such gear, used in calculating gross domestic product, also rose. (Bloomberg)

U.S: Fed's Beige Book says economic recovery slowed in some areas over the past two months, dragged down by commercial real estate and the expiration of a tax credit for homebuyers. "Economic activity has continued to increase, on balance, since the previous survey," the central bank said in its Beige Book business survey, while noting that two of the Fed's 12 districts reported the economy "held steady" and two said the pace of expansion slowed. (Source: Bloomberg)

20100729 1233 Malaysia Corporate News.

RM4.20 per share for MEASAT
In an unusual twist of events, shares of two companies controlled by Malaysian billionaire T Ananda Krishnan - regional satellite network operator MEASAT and conglomerate Tanjong plc - were suspended from trading on Bursa Malaysia Securities yesterday, fuelling rumours of major corporate exercises. The reclusive tycoon holds a 59.56% stake in MEASAT and 30.92% in Tanjong Plc. Ending long time speculation, MEASAT Global Network Systems SB announced yesterday evening a privatization offer for MEASAT Global at RM4.20 cash per share. The offer is conditional upon acceptance from 90% of the nominal value of the shares (excluding those already held by MEASAT Global) and relevant approvals.(Financial Daily)

Khazanah to raise SGD2.65bn for Parkway takeover
Fresh from winning the battle for Singapore’s healthcare group, Parkway Holdings Ltd, state-owned investment arm Khazanah Nasional is looking to raise around SGD2.65bn (RM6.19bn) in bonds and bank loans to help finance its SGD3.5bn takeover of the largest private hospital operator in Asia. Around SGD800m in sukuk will be arranged by OCBC Banking Corp, DBS Group Holdings and CIMB Group Holdings. The sukuk road show is scheduled to be undertaken in Singapore on Monday, with book building to start on Tuesday. (Financial Daily)

George Kent secures RM130m water job
George Kent has secured another water infrastructure project with the award of a RM129.8m contract to construct and complete a 160m milliliters per day water treatmentplant in Kuantan, Pahang. The contract was awarded by the East Coast Economic Region Development Council in an open tender, the company said. The project was scheduled for completion by 12 Aug 2013, which would be 157 weeks from the site possession date of 10 Aug 2010. (Malaysian Reserve)

WCT proposes to issue RM600m bonds with warrants
WCT has proposed an issuance of RM600m nominal value serial fixed rate bonds of up to five years with up to 181m detachable warrants on a “bought deal” basis to primary subscribers. WCT also proposed an offer for sale of the provisional rights to the allotment of up to 181m WCT warrants by primary subscribers at an offer price to be determined to shareholders and entitled senior management of the WCT group of companies. The company said the proceeds from the proposed bonds with warrants would enable it to refinance its existing borrowings, resulting in interest savings for the company. “The proposed exercises will allow the company to lock in financing at a lower effective funding cost, thereby allowing the WCT group to better plan its cash flow requirements,” it said. It said upon exercise of the WCT warrants, the company would obtain additional proceeds to redeem the bonds, finance the working capital requirements of the group in the future and repay borrowings, in addition to strengthening WCT’s capital base. (StarBiz)

PepsiCo renews Permanis’ bottling rights
PepsiCo has extended the rights of C.I. Holdings’s (CIH) wholly-owned subsidiary Permanis to manufacture and sell its beverage brands in Malaysia for 10 years. PepsiCo and C.I. Holdings said in a joint statement that the two parties had signed an exclusive bottling agreement to renew the franchise bottling rights of Permanis. PepsiCo general manager for its South-East Asia business unit, Manu Anand, said the renewal and extension of the agreement showed PepsiCo’s confidence in Permanis as a long-term strategic growth partner for its Malaysian beverage business. (StarBiz)

CIH: Secures 10-year extension to PepsiCo bottling deal. CI Holdings Bhd's (CIH) subsidiary Permanis Sdn Bhd has secured a 10-year extension (until June 30, 2020) of its franchise bottling rights with PepsiCo for the manufacture and sale of the latter?s beverage brands in Malaysia. (Source: The Edge Financial Daily)

GAB: Profits from World Cup. The month-long World Cup was a profitable time for the drinks industry which saw an increase of between 30% and 40% sales for pubs and clubs. GAB invested RM10m to promote its activities during the World Cup and it paid off handsomely. (Source: The Sun)

Markets: SC revokes SJ Asset Management licence. The Securities Commission (SC) has revoked SJ Asset Management Sdn Bhd's (SJAM) licence effective immediately, after investigations found the company had broken rules. SJAM failed to safeguard clients' assets and engaged in deceitful and improper business practices, the SC said. The company was also found to have given the SC false and misleading information. (Source: Business Times)

MAS: Eyes 5% annual revenue growth from charter services. Malaysian Airline System Bhd (MAS) expects a 5% annual growth in the revenue from charter services due to high demand and the availability of resources. The charter services are especially for places that are difficult to get to and which other airlines refuse to service. (Source: The Edge Financial Daily)

MRCB: To raise RM400m for KL Sentral Park. MRCB Sentral Properties Sdn Bhd, a unit of Malaysian Resources Corp Bhd (MRCB), will raise RM400m of debt to finance the development of its latest project called KL Sentral Park. The commercial paper/medium term notes (CP/MTN) programme is arranged by Affin Investment Bank Bhd. The financing, which is being guaranteed by Danajamin Nasional Bhd, is for a period of 7 years. (Source: Business Times)

Steel: Acerinox plans additional EUD251m investment here. Acerinox SA, the world's biggest stainless steel maker, is investing an extra EUD251m (RM1b) for the second phase of its stainless steel production plant in Malaysia. Acerinox?s investment in Tanjung Langsat near Pasir Gudang is the single largest foreign investment in Johor so far, with a commitment to pump in as much as USD1.5b (RM4.8b) into the Johor economy. (Source: Business Times)

20100729 1211 Global Market News.

Asia shares retreat from highs, dollar dips
TOKYO, July 29 (Reuters) - Asian stocks edged down from a three-month high and the dollar eased towards three-month lows  , hit by soft U.S. data that underlined the patchy nature of the U.S. economic recovery.
"Profit-taking is coming to the fore because coupled with worries about the uncertain outlook for the U.S. and European economies, U.S. stocks seem to be peaking," said Yutaka Miura, a senior technical analyst at Mizuho Securities in Tokyo.

NEW YORK, July 28 (Reuters) - World stocks fell, snapping a four-day rally on Wednesday, as weak orders for U.S. durable goods in June and the Federal Reserve's downbeat take on the economy dampened the outlook and drove the dollar lower.
"Earnings have been good, but the overall economy is still sluggish at best and is not coming back as much as we would have hoped," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati.

Earnings boost stocks, euro rises
LONDON, July 28 (Reuters) - World stocks rose for the fifth day running as solid corporate earnings combined with easing fears about financial stability to boost investors appetite for riskier assets.
"Earnings are coming through better than expected," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin. "Banks are better ... having underperformed for some time."

20100729 1209 Soy Oil & Palm Oil Related News.

Soyoil ended higher, following the lead of soybeans, but advances were limited by meal/oil spreading and weakness from crude oil futures. Crude-oil influences soyoil due to its use in making renewable fuels. December soyoil settled 0.28 cents or 0.7% higher at 39.57 cents per pound.(Source:CME)

China Ministry: July Soybean Imports Likely 5.6 Million Tons(Source: CME)
China's soybean imports in July are likely to reach 5.6 million metric tons, the Ministry of Commerce said Wednesday.
The new estimate is 3.6% lower than a commerce ministry estimate earlier this month.
However, it would still be the second-highest monthly import volume so far this year, after last month's record 6.2 million ton intake.
If realized, it would be a 27% increase from the same period last year, based on customs data.
The estimate, published on the ministry's website, is based on reports from importers during the June 16-June 30 period, and the regular forecast is usually lower than the actual import figure, as it doesn't include all cargoes.
The ministry issues the estimates twice a month.

India Soyoil Imports May Slow Down In Next 4 Months - Executive(Source:CME)
India's soyoil imports, after rising sharply in the past few months, are likely to slow in the next four months due to a rise in the premium over palm oil and higher supplies of local crops, a senior industry executive said Wednesday.
"We expect 300,000-500,000 tons of soyoil may come in July-October period," said Srinivaas Sirigeri, managing director of Shakti Enterprises, a Mumbai-based importer.
India's soyoil imports in the first eight months of the marketing year that began Nov. 1 jumped nearly 40% from a year earlier to 914,676 tons, according to data from the Solvent Extractors' Association.
The premium of soyoil over palm oil has risen to $90 per ton from about $40/ton about two months ago, Sirigeri said.
"If the soyoil prices stay at these levels, then imports will gradually decrease," he added.
Indian companies increased their soyoil imports over the past few months after a decline in the premium over palm oil. Soyoil normally commands a premium over palm oil due to its better quality.
The South Asian nation is the world's second-largest edible oil consumer after China and meets more than half of its annual requirement through imports. It imports palm oil mainly from Indonesia and Malaysia and soyoil mostly from Brazil and Argentina.
The country may import a total of 1.3 million to 1.5 million tons of soyoil in 2009-10, Sirigeri said. India imported 989,613 tons of soyoil in 2008-09.
Soybean arrivals in the local market have also increased as farmers are offloading more stocks to raise money required for the new crop sowing, he added.
Soybean sowing in India starts in June and continues through July.

Palm oil steady on output concern, FX weigh
JAKARTA, July 28 (Reuters) - Malaysian crude palm oil was little changed as concerns that rains would slow palm oil output providing support countered expectations of a stronger ringgit and ample supply of other oilseeds weighing on the market.
"The bullish factors are market concern about palm oil output and good demand, at least for the Ramadan offtake," said a trader with a domestic commodities brokerage.

US soymeal demand to slip again in 2010-Oil World
AMSTERDAM July 27 (Reuters) - Soymeal consumption in the United States is set to decline for a third year in the 2009/10 season, while demand is rising in Brazil and Russia, oilseeds analysts Oil World said on Tuesday.
U.S. consumption of soymeal is expected to amount to about 27.6 million tonnes in October/September 2009/10, down from 27.9 million tonnes in the previous season, the Hamburg-based oilseeds analysts said.

Canola oil would qualify for biodiesel mandate-EPA
WINNIPEG, Manitoba, July 27 (Reuters) - Biodiesel made from canola oil would emit 50 percent less greenhouse gas than petroleum diesel fuel, which would make it eligible for the U.S. mandate to increase renewable fuel production, according to the U.S. Environmental Protection Agency (EPA).
EPA data that compares greenhouse gas emissions between biodiesel and conventional diesel, released on Monday, shows canola oil would meet a key eligibility requirement for the U.S. Renewable Fuel Standard program.