20100806 1936 FCPO Weekly Chart Study.

Weekly Close: 2661, High: 2695, Low: 2604, Range: 91 points
FCPO closed : 2661, changed : +144 points, volume : higher.
Bollinger band reading : range bound, upside biased.
MACD Histrogram : getting higher, buyer seized control.
Support : 2650, 2600, 2540 level.
Resistant : 2700, 2720, 2800 level.
Comment :
FCPO rallied over the week after fundamental lower stock level urged limited supply with uncertain weather news worried productions development. Weekly char shows market traded strongly with the outlook suggesting a just started upside biased potential market with possible little pullback as price seems surged a little over upper Bollinger band level.

20100806 1935 FCPO EOD Daily Chart Study.

FCPO closed : 2661, changed : +42 points, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer buy all the way.
Support : 2650, 2620, 2600 level.
Resistant : 2670, 2700, 2720 level.
Comment :
Super bull FCPO rallied again broken challenging resistant levels effortlessly followed by profit taking activities pressed price to closed off the high with slightly lesser volume. Daily chart wise, todays candle bar ended way above upper Bollinger band indicate market seems a little overbought that could possibly trigger and pullback correction. But overall the reading still suggesting a uptrend upside biased movement market.
When to buy : buy at support or weakness with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20100806 1908 FKLI Weekly Chart Study.

Weekly Close: 1363, High: 1374.5, Low: 1360.5, Range: 14 points.
FKLI closed : 1363.5 changed : +6.5 points, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer still in control.
Support : 1360, 1350, 1335 level.
Resistant : 1375, 1385, 1395 level.
Comment :
Recorded higher week on week gain FKLI traded in tide range market half volume transaction market formed another doji bar candle. Weekly chart wise, market seems not really made up its mind to move higher after hesitated to closed a the high after tested resistant level near higher Bollinger band level. As for the outlook, the reading still suggesting a upside biased potential market development but with volume lacking.

20100806 1907 FKLI EOD Daily Chart Study.

FKLI closed : 1363, changed : -3.5 points, volume : lower.
Bollinger band reading : side way range bound, upside biased.
MACD Histrogram : weakening, lower participation by both buyer and seller but buyer still in control.
Support : 1360, 1350, 1345 level.
Resistant : 1375, 1385, 1395 level.
Comment :
Diminshing volume transaction FKLI eased lower after traded side way range bound for the whole day within a 5.5 points range market. Daily chart technical reading remained unchange by suggesting a side way range bound upside biased market development with lack of sustaining volume as market seems waiting for tonight U.S. non farm payroll report.
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.

20100806 1306 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1365, changed : -1.5 point, volume : low.
Bollinger band reading : side way range bound.
MACD Histrogram : reversed lower, buyer and seller get lazy today.
Support : 1360, 1350, 1345 level.
Resistant : 1375, 1385, 1395 level.
Comment :
Lazy volume narrow 3.5 points range market FKLI closed for lunch slightly lower ahead of the weekend after regional market having mixed development. Hourly chart wise, a TOTALLY BORING market without much to write about and the reading suggesting a side way range bound consolidation market.

20100806 1305 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2643, changed : +24 points, volume : low.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer getting aggressive again.
Support : 2620, 2600, 2570 level.
Resistant : 2650, 2670, 2700 level.
Comment :
Uptrend FCPO continue to head north as trader fear of lower stock level continue to lift price higher and closed near resistant level after market opened lower and tested near support level. Hourly chart wise, market is now hovering around upper Bollinger band level with the outlook suggesting a upside biased market but with possible pullback correction.

20100806 1112 Local & Global Economic News.

Malaysia: Mier revises upward 2010 GDP forecast to 6.5%
The Malaysian Institute of Economic Research (Mier) has revised the country’s GDP growth forecast for the year to 6.5% from 5.2% previously. Its executive director Dr Zakariah Abdul Rashid said the upward revision was based on the strong 1QGDP growth of 10.1% and the good export performance. (StarBiz)

Indonesia: Q2 growth better than expected
Indonesia’s economy grew a faster-than-expected 6.2% in the second quarter, picking up pace from the first, and will accelerate to peak in the three months to the end of September, the statistics bureau said. South-East Asia’s biggest economy has started to attract more interest from foreign direct investors this year, with a flurry of announcements just this week, suggesting it may see far more commitments in the coming months. (StarBiz)

India: Splits in inflation fight, bets on monsoon to damp prices
India’s officials are splitting over how to quell the inflation hammering the 828m people who live on less than USD2 a day, with the government counting on monsoon rains to end a debate that risks policymaking paralysis. Finance Minister Pranab Mukherjee warned growth will suffer if interest rates rise too fast, after the Reserve Bank of India last week accelerated its pace of increases. (Bloomberg)

Japan: BOJ waits for ‘noose’ to tighten before adding Japan stimulus
The Bank of Japan is likely to hold off on increasing monetary stimulus next week as policy makers are unconvinced the yen’s approach toward a 15-year high will derail the nation’s economic recovery. The BOJ will keep unchanged its bank-loan program and monthly bond purchases on 10 Aug, according to all but one of 17 economists in a Bloomberg News survey. (Bloomberg)

Argentina: Bond risk sinks most as GDP forecasts climb
Argentina bond risk fell the most in Latin America over the past three months as quickening economic growth and an USD12.9bn debt restructuring boosted confidence in the country’s ability to pay its debt. The cost of protecting Argentine debt against non-payment for five years with credit-default swaps tumbled 85 basis points, or 0.85 percentage point, according to CMA DataVision. (Bloomberg)

UK: BOE keeps stimulus to aid recovery in budget squeeze
The Bank of England kept its bond-stimulus plan in place and left its benchmark interest rate at a record low as official sustained emergency aid for the economy during the biggest budget squeeze since World War II. The nine-member Monetary Policy Committee, led by Governor Mervyn King, held the target for bond holdings at GBP200bn (USD318bn), matching the median estimate of 34 economists in a Bloomberg News survey. The bank kept the key interest rate at 0.5%. (Bloomberg)

German: June factory orders jump more than forecast
German factory orders surged more than twice as much as economists forecast in June as the global recovery gathered strength and European companies increased investment. Orders, adjusted for seasonal swings and inflation, rose 3.2% from May, when they dropped a revised 0.1%, the Economy Ministry in Berlin said. Economists forecast a 1.4% gain after an initially reported 0.5% decline the previous month, according to the median of 23 estimates in a Bloomberg News survey. (Bloomberg)

EU: ECB keeps rate at 1%, may weigh second run at exit
The European Central Bank left interest rates at a record low as policy makers start to consider how to scale back the crisis-fighting measures introduced over the past two years. The ECB’s Governing Council meeting in Frankfurt set the benchmark lending rate at 1% for a 16th month, as predicted by all 51 economists in a Bloomberg News survey. The ECB will not raise its key rate until the 3Q of 2011, a separate survey showed. (Bloomberg)

US: Jobless claims unexpectedly rise to three-month high
Initial jobless claims climbed by 19,000 to 479,000 in the week ended 31 July, the most since April and exceeding the highest estimate of economists surveyed by Bloomberg News, Labor Department figures showed. The number of people receiving unemployment benefits dropped, while those getting extended payments rose. (Bloomberg)

20100806 1111 Malaysia Corporate News.

Sime Darby expects FY10 to ‘be in the black’
Sime Darby still expects to remain in the black in its financial year ended 30 June, 2010, disputing an online news portal report that it could face a potential loss of RM2bn to RM2.5bn. “The alleged figures of RM2bn to RM2.5bn are largely inflated,” a company official said. In a separate news, a general manager at Sime Darby is expected to be charged today with graft totaling RM300,000 following a MACC probe. (Financial Daily, The Star)

Multi-Purpose seeks foreign partners
Multi-Purpose is turning to foreign partners to help it grow its stockbroking business, its MD Datuk Lau Kim Khoon said. Stockbroking activities currently account for less than 5% of group revenue, with its clients comprising mainly local retail investors. The group was also looking to grow its insurance business in the country. It owns 100% of Multi-Purpose Insurans, which saw revenue expand to RM415m last year from RM60m in 2002. (BT) HeiTech Padu gets RM75m job HeiTech Padu has secured a RM74.9m contract from the Government for the maintenance services of the National Registration Department’s main business ICT system. The contract was for one year ending 30 June, 2011. Any further renewal or extension of the duration is at the discretion of the Government. (The Star)

MAHB plans RM3.1bn Islamic bonds
MAHB plans to offer up to RM3.1bn in Islamic bonds to part finance the construction of a new terminal. The new terminal is expected to be completed by the end of the first quarter of 2012. The proceeds would also be used to refinance its existing borrowings. (BT)

Perodua says it can work with Proton
Perodua welcomes any form of collaboration with Proton, its MD Aminar Rashid Salleh said. But Aminar hinted that a different business model will not make a merger between the two national carmakers possible. (BT)

Two more Chinese firms to list on Bursa before year-end
SC has received a lot of interest from Chinese companies seeking listing on Bursa Malaysia, with two more companies expected to be listed before year-end, chairman Tan Sri Zarinah Anwar said. (Bernama)

Faber net profit jumps 122% to RM46.9m
Faber posted an increase of 122% in its net profit to RM46.9m for the first half ended 30 June, 2010 from the RM21.1m recorded a year ago. Its revenue grew by 45.9% to RM454.2m from RM311.4m previously mainly due to an increase in revenue from integrated facilities management by RM156.7m. (The Malaysian Reserve)

F&N profit up on higher sales
F&N posted an 18.5% rise in net profit to RM70m in the third quarter ended 30 June compared with the previous corresponding period after seeing a rise in soft drinks sales. Revenue was up 7% to RM892.8m with contribution from the soft drinks division improving 26%. (StarBiz)  

20100806 1026 Global Market News.

GLOBAL MARKETS: U.S. stocks drop, euro up ahead of payrolls
NEW YORK, Aug 5 (Reuters) - U.S. and European stocks dropped on Thursday after an unexpected rise in weekly U.S. jobless claims underscored the weakening economy, and the euro ended slightly stronger against the dollar a day ahead of the U.S. government's monthly payrolls report.
"The claims data today was miserable and obviously it has a negative implication for the non-farm number tomorrow," said Phil Orlando, chief equity market strategist at Federated Investors, in New York.

BREAKINGVIEWS-China property crackdown stokes hard-landing worry
The author is a Reuters Breakingviews columnist. The opinions expressed are her own --
HONG KONG, Aug 5 (Reuters Breakingviews) - China's banking regulator wants to show it is more serious than its European counterparts. After banks passed a test based on a 30 percent fall in house prices, the regulator is trying to see whether lenders can handle a 50 percent drop. Such a sharp fall, while unlikely, would be hurtful to China and the world. But Beijing deserves credit for making a stress test living up to its name.
Rising leverage has become a concern for China's banking system. China's mortgages rose 48 percent in 2009, almost five times as fast as economic growth. Overall leverage is still low, and mortgages have traditionally been banks' safest assets. But a big increase in property prices has made buyers more stretched. Beijing's crackdown on the property sector has stoked more worries of a hard landing.

U.S. private sector job growth remains tepid
NEW YORK, Aug 4 (Reuters) - U.S. companies hired more workers in July but the gains are too slow to reduce unemployment and spur the economy significantly, reports showed on Wednesday.
The reports come two days before the government's more comprehensive jobs reading for the month and illustrate that while the economy's improving, the jobs market has a long way to go.

China acts on property speculation, tests banks anew
BEIJING, Aug 5 (Reuters) - China's banking regulator has ordered lenders to test the impact of a fall in house prices of up to 50 percent in key cities where prices have risen sharply, banking and regulatory sources said on Thursday.
The China Banking Regulatory Commission (CBRC) has also instructed banks to stop extending mortgages to people buying their third homes in four of the cities -- Beijing, Shanghai, Shenzhen and Hangzhou, the sources said.

Goldman plans to spin off prop trading-CNBC
CHARLOTTE, N.C., Aug 4 (Reuters) - Goldman Sachs Group Inc  plans to spin off its proprietary trading business as early as this month to comply with the so-called Volcker rule, CNBC reported on Wednesday.
It would be the first move by the New York-based investment bank to adapt its business to comply with the U.S. financial reform package signed into law last month, and would follow similar moves from other banks.

Data boosts sentiment, but U.S. jobs looms
LONDON, Aug 5 (Reuters) - World stocks put in solid gains and Wall Street looked set of a positive start as investors embraced relatively buoyant economic news ahead of Friday's key U.S. jobs report.
"Corporate earnings will keep helping the market for some more time, but if macroeconomic numbers are going to take over, then good earnings will not be enough to support the market," said Koen De Leus, economist at KBC Securities.

20100806 1019 Soy Oil & Palm Oil Related News.

Soyoil futures ended lower, retracing early gains on end of the session profit taking. The market lacked the underlying fundamental strength to justify extending the markets recent gains, analysts said. Solid export demand provided strength, while abundant supplies dampened upside momentum. December soyoil settled 0.10 cents or 0.2% lower at 42.00 cents per pound.(Source:CME)

Palm at new 4 1/2-month high on short-covering
JAKARTA, Aug 5 (Reuters) - Malaysia crude palm oil futures surged to a fresh 4-1/2 month high as investors covered short positions after a poll showed July's palm oil stock may hit a one-year low, as demand outpaced a weak recovery in production.
"With speculation that July end-stock would hit a 1-year low, traders wasted no time in covering their short position," said a trader in a local brokerage firm in Kuala Lumpur.

India's July oilmeal exports up, buck 8-month trend
NEW DELHI, Aug 5 (Reuters) - India's July oilmeal exports rose over a third from a year earlier, reversing the falling trend of the last eight months as a weaker currency helped boost sales to China, Japan and South Korea.
Oilmeal exports rose an annual 39 percent to 241,182 tonnes in July, and were 52 percent higher than the previous month, the Solvent Extractors' Association of India said in a statement on Thursday.

China soybean output may fall 3.3 pct this yr -think tank
BEIJING, Aug 5 (Reuters) - China's total soybean output in 2010 is expected to reach 14.5 million tonnes, down 3.3 percent from last year, the China National Grains and Oils Information Center said on Thursday.
The think tank said in a research report that soybean acreages for this year were already down 4.6 percent to 8.4 million hectares.