20100811 1844 FCPO EOD Daily Chart Study.

FCPO closed : 2676, changed : +6 points, volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : weakenning, buyer continue to take profit.
Support : 2670, 2650, 2620 level.
Resistant : 2700, 2720, 2750 level.
Comment :
Correction 35 points range market FCPO traded range bound registering minor gain in lower volume transaction as market await fresh news to lead market direction. Today doji bar candle daily chart tested support level but recovered upward to closed slightly higher with the outlook having correction 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.

20100811 1842 FKLI EOD Daily Chart Study.

FKLI closed : 1347.5, changed : -8.5 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : buyer reducing exposure.
Support : 1345, 1337, 1330 level.
Resistant : 1350, 1360, 1375 level.
Comment :
FKLI eased lower with improved volume traded within a 10 points range market after most regional market having negative development. Daily chart wise, the doji bar candle opened below and tested middle Bollinger that turned into resistant level now. Technical reading wise, market is likely to trade side way range bound testing lower support levels.
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.

20100811 1530 Local & Global Economic News.

U.S: Productivity fell in 2Q10. The measure of employee output per hour fell at a 0.9% annual rate, the first drop since late 2008. Hours worked climbed at a 3.6% rate, leading to a 2.6% increase in the amount of goods and services produced. (Source: Bloomberg)

Germany: Inflation accelerated in July on higher energy prices. The inflation rate, calculated using a harmonized European Union method, rose to 1.2% YoY from 0.8% YoY in June. In the month, consumer prices increased 0.3% MoM. (Source: Bloomberg)

U.K: Housing market gauge signaled the first decline in prices for a year in July as demand for homes fell. The number of real estate agents and surveyors saying prices fell exceeded those reporting gains by 8% points, compared with a positive reading of 8 in June, the London based Royal Institution of Chartered Surveyors said in an email report. (Source: Bloomberg)

France: Industrial production fell in June amid a decline in car production as the government phases out purchase incentives. Output dropped 1.7% MoM from May, when it advanced a revised 1.9% MoM. (Source: Bloomberg)

China: July trade surplus reached an 18-month high as exports rose to a record and import gains slowed. The gap surged 170% YoY to USD 28.7b, the customs bureau said. Exports increased 38.1% YoY to USD145.5b and imports advanced 22.7% YoY to USD116.8b. (Source: Bloomberg)

China: Property prices rise 10.3% YoY, slowest pace in six months in July as the government cracked down on speculation to prevent asset bubbles. The value of sales fell 19.3% YoY. (Source: Bloomberg)

Japan: BOJ keeps policy on hold as yen rises. The Bank of Japan refrained from adding measures to expand liquidity as it gauges the risk the yen's advance poses to the nation's export-led rebound. The policy board headed by Governor Masaaki Shirakawa kept the benchmark overnight rate unchanged at 0.1% and maintained its credit programs for lenders by a unanimous vote, the central bank said in Tokyo. (Source: Bloomberg)

Singapore: GDP expands 24%, less than estimated in 2Q10 as manufacturing cooled in June, and growth is forecast to slow after a record pace in the first half, the government said. (Source: Bloomberg)

Australia: Business confidence slipped in July to the lowest level in more than a year , adding to signs higher interest rates are eroding domestic demand and driving the local dollar down by the most in almost two weeks. The confidence index halved from June to 2 points, according to a National Australia Bank Ltd. (Source: Bloomberg)

Malaysia: Slower IPI growth in June reflects less robust exports
The Industrial Production Index climbed 9.4% y-o-y in June, the weakest growth in four months compared with a double digit increment in the previous three months, reflecting less robust exports. The benchmark index, which measures manufacturing, utilities and mining output, dropped 2.8% on a monthly basis, according to the statistics department.(Financial Daily)

South Korea: July unemployment rate rises to 3.7%
South Korea’s unemployment rate rose to 3.7% in July from 3.5% in the previous month, Statistics Korea said in Gwacheon, citing seasonally adjusted figures. (Bloomberg)

South Korea: Bank of Korea to debate ’extremely low’ rates amid export
Bank of Korea policy makers may debate raising interest rates for the second time this year as price pressures jostle with concerns that slower US and Chinese economic growth threatens exports. Seven of the 15 economists surveyed by Bloomberg News predict Governor Kim Choong Soo will raise the seven-day repurchase rate by another quarter point to 2.5% this week, while the rest forecast a delay until September or later. (Bloomberg)

UK: June trade deficit narrows more than forecast
The UK’s trade deficit narrowed more than economists forecast in June as exports rose to a two- year high. The goods-trade gap shrank to GBP7.4bn (USD11.7bn) from GBP8bn in May, the Office for National Statistics said in London. The median of 17 forecasts in a Bloomberg News survey was for a GBP7.8bn deficit. Exports jumped 4.3% to the highest since June 2008, and imports rose 1%. (Bloomberg)

UK: Housing gauge signals first price drop in a year A UK housing-market gauge signaled the first decline in prices for a year in July as demand for homes fell, a sign the economic recovery may be losing steam. The number of real-estate agents and surveyors saying prices fell exceeded those reporting gains by 8 percentage points, compared with a positive reading of 8 in June, the London-based Royal Institution of Chartered Surveyors said in an e-mailed report today. A third more real-estate agents reported an increase rather than a drop in properties for sale. (Bloomberg)

20100811 1524 Malaysia Corporate News.

Window for TM to exit Measat
Telekom Malaysia (TM) stands to book a one-off profit of around RM100m if it chooses to part with its 15% stake in satellite service provider Measat Global, analysts said. This was based on estimates that TM had written down its investment in Measat to around RM2.50 per share since 2003. TM owns about 60m shares in Measat. Measat’s shareholders have announced plans to take the company private at a price of RM4.20 per share. If TM sells its Measat stake, it would gain a gross figure of RM252m. Compared with the written-down price of RM2.50 per share, or RM150m this gives a gain of over RM100m. (StarBiz)

No offer to buy out Epic stake: AZRB
Ahmad Zaki Resources (AZRB) has not been approached by state-controlled Terengganu Inc SB to buy out its 21.3% stake in Eastern Pacific Industrial Corp (Epic), a top company official said yesterday. Sources close to AZRB said that if and when there was an offer, it would let the shareholders vote on it at a special shareholders' meeting. "Epic is a strategic stake for us and has provided us good returns," one of the sources said. In its annual report, AZRB said that its investment in Epic had contributed generously to the group's earnings, with an RM8.9m profit. (BT)

Genting’s US racino may cost US$730m initially
Genting group’s US racino project could see an initial investment of about USD730m (RM2.3bn), consisting of a USD380m upfront licensing fee and an initial capital expenditure between USD300m and USD350m, according to RAM Ratings. The proposed gaming venture would have a limited impact on Genting’s credit profile, said the rating agency. Genting New York LLC (Genting NY), an indirect wholly owned subsidiary of Genting Malaysia (GenM), was unanimously recommended by the New York Lottery evaluation committee on 3 Aug for the rights to develop and operate a video lottery facility at the Aqueduct Racetrack in New York. (Financial Daily)

HLBB’s RM700m debt issuance oversubscribed
Hong Leong Bank’s (HLBB)RM700m Tier 2 subordinated debt (sub debt) issuance completed yesterday saw a final book that was more than 8 times oversubscribed with a total order exceeding RM5bn. The final pricing came in well within the lower end of the initial price guidance of 4.85%-5.05%, Hong Leong group managing director Yvonne Chia said. Proceeds from the exercise will be channeled for working capital purposes and will reinforce the bank’s capital adequacy following the redemption of the USD200m (RM636.3m) sub debt on 3 Aug, it said in a filing to Bursa Malaysia yesterday. (Malaysian Reserve)

Bandar Raya still in talks to sell Mieco stake
Mieco Chipboard informed Bursa Malaysia yesterday that its major shareholder, Bandar Raya Developments (BRDB), was still in preliminary and exploratory discussions with a Chinese party on selling its stake in Mieco to the latter. On 9 Aug, a news report stated that BDRB was in talks with a Chinese party to hive off its 56.76% stake in Mieco. BRDB informed Mieco that it had recently met a Chinese party to discuss a potential collaboration between Mieco and the Chinese party in production and marketing of chipboard and related products, including the possibility of the Chinese party participating in the equity of Mieco in the future. (StarBiz)

Khazanah sells more CIMB Niaga shares
Khazanah Nasional has given notice to CIMB Group Holdings (CIMB) its intention to sell another 615.998m Class B shares, or 2.57% of issued and paid-up shares in CIMB Niaga, for IDR50 each. In a filing with Bursa Malaysia yesterday, CIMB said it will in turn issue 268m shares of RM1 each to Khazanah as consideration for the stake in the Indonesian bank. The transfer of the block of Class B shares in CIMB Niaga will mean that a total of 4.71bn shares will be acquired by CIMB for IDR5.44trn (RM1.92bn). (Malaysian Reserve)

Bolton buys land in Gombak
Bolton’s subsidiary is buying a 9.2 hectare plot of land in Gombak, Selangor from LP Heights SB, for RM72m. Ketapang Realty SB. plans to seek approval for the layout amendment of the land to allow the development of gated and guarded community comprising of three-storey semi-detached houses and three-storey bungalow houses. Currently it has approval for 184 residential units, comprising of 36 units of semi-detached houses, 88 units of terrace houses and 60 units of town villas. The proposed development, with a gross development value of RM220m, is expected to generate RM45m in gross development profit for the subsidiary. The development costs will be financed through internal funds and bank borrowings. (BT)

AZRB: No offer to buy out EPIC stake. Ahmad Zaki Resources Bhd (AZRB) has not been approached by state-controlled Terengganu Inc Sdn Bhd  to buy out its 21.3% stake in Eastern Pacific Industrial Corp Bhd (EPIC). "EPIC is a strategic stake for us and has provided us good returns," one of the sources said. (Source: Business Times)

Gaming: Tycoons Kuok, Yeoh won't join bid for casinos. Tycoons Tan Sri Robert Kuok and Tan Sri Francis Yeoh said they don't plan to join a bid for Philippine Amusement & Gaming Corp, contradicting San Miguel Corp president Ramon Ang who said they may make a joint offer. (Source: The Star)

Lafarge: Pick-up in cement demand seen in H2. Lafarge Malayan Cement Bhd is optimistic that local cement demand will grow slightly in the 2nd half of the year on expectations of more robust implementation of ongoing and new infrastructure projects, said president and CEO Bi Yong Chungunco. Some of the upcoming projects include Second Penang Bridge, the double track railway project and the low cost carrier terminal at the KL International Airport. (Source: The Star)

Proton: Sees 50% export jump. Proton Holdings Bhd expects its exports to increase 50% to over 30,000 cars from just over 20,000 in the year ended March 2010. This will be driven mainly by the Chinese market, where Proton currently has a pact with local company Jinhua Youngman Automobile Group Ltd (Jinhua). (Source: Business Times)

Southern Steel: SC rejects HwangDBS as independent adviser to SSB takeover. The Securities Commission has rejected HwangDBS Investment Bank Bhd?s appointment as the independent adviser in relation to the takeover offer by Signaland Sdn Bhd to acquire all the remaining shares in Southern Steel Bhd (SSB) for RM2.05 per share. (Source: The Edge Financial Daily)

20100811 1457 FKLI Mid Day Hourly Chart Study.

FKLI last looked : 1353, changed : -3 points, volume : low.
Bollinger band reading : downside biased.
MACD Histrogram : recovering, buyer taking profit.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385 level.
Comment :
FKLI continue to head south today as market opened lower and traded range bound within tight 5 points range market. Hourly chart wise, the reading suggesting range bound downside biased market development testing support level.

20100811 1443 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2672, changed : +2 points, volume : low.
Bollinger band reading : correction range bound.
MACD Histrogram : recovering, buyer taking profit.
Support : 2670, 2650, 2620 level.
Resistant : 2700, 2720, 2750 level.
Comment :
FKLI opened higher and turned downward due to profit taking activities continues pressed market to test lower support level and then recovered upward to closed little higher. Hourly chart wise, technical reading suggesting a side way range bound market development.

20100811 1258 Global Market News.

Dollar up, stocks down on caution ahead of Fed
LONDON, Aug 10 (Reuters) - The dollar rose and world stocks slipped as investors stayed cautious ahead of likely moves by the U.S. Federal Reserve to warn about and possibly prop up a faltering economic recovery.
"We're seeing some squaring up of short positions ahead of the Fed, and there is some risk-off sentiment as well as Asian stocks closed lower, prompting a sell-off in high yielders such as the Australian dollar," said Christian Lawrence, currency strategist at RBC Capital Markets.

GLOBAL MARKETS: Stocks cut losses, dollar eases after Fed
NEW YORK, Aug 10 (Reuters) - U.S. stocks lost ground but finished the day well off earlier lows and government debt rallied on Tuesday after the Federal Reserve signaled it would act as necessary to preserve the fading economic recovery.
"The Fed is kind of caught in a spot where it isn't sure what to do, so it went halfway," said Michael O'Rourke, chief market strategist at BTIG LLC in New York. "This is an insurance move, one it probably took grudgingly just to meet market expectations." 

20100811 1256 Soy Oil & Palm Oil Related News.

December soyoil settled 0.26 cents, or 0.6%, lower at 42.23 cents per pound. August soymeal settled $1.80, or 0.6%, lower at $309.30, and December soymeal ended $4.60, or 1.6%, lower at $289.80 per short ton. (Source: CME)

China July Edible Oil Imports 620,000 Tons; Down 33% On Year(Source: CME)
China's edible oil imports in July fell 33% on year to 620,000 metric tons, but rose 6.9% on month, the General Administration of Customs said Tuesday.
In the January-July period, edible oil imports fell 13% on year to 3.79 million tons.

Argentina Soyoil Exports To India Rising; China Still Not Buying(Source: CME)
India is ready to sharply increase its soyoil buying from Argentina, with exports to the Asian country expected to reach $1.5 billion this year, Argentina's foreign ministry said.
Argentine soyoil sales to India last year totaled just $16 million, according to Argentina's agricultural sanitation service Senasa. Argentine officials are working hard to increase soyoil exports to India to make up for lost sales to China. China led Argentine soyoil imports last year, buying over $2 billion worth, according to Senasa.
According to the release, India's ambassador to Argentina, Rengaraj Viswanathan, made the commitment to increase sales in a meeting with Foreign Minister Hector Timerman on Monday.
India has already bought over $1 billion worth of soyoil during the first six months of the year, Viswanathan said, according to the release.
In April, China blocked the import of Argentine soyoil, citing quality issues, in a move widely seen as retaliation for barriers imposed by Argentina to slow the flow of Chinese products into the local market.
China is the largest buyer of Argentine soyoil and soybeans, Argentina's top export, and China depends on Argentina for the bulk of its soyoil imports.
But China has stood firm, shifting its soyoil buying to the United States and Brazil. Argentina's soyoil exports to China during the first half of the year totaled just 106,050 metric tons, down from over a million tons during the same period a year earlier, according to the Senasa.
While Argentine officials are optimistic that the spat with China will be worked out soon, that may be easier said than done. Last month, Argentina slapped new tariffs on some Chinese textile and food processor imports, a move sure to increase tension with the Asian giant.
As in previous cases, Argentina accused Chinese manufactures of dumping and fixed a minimum reference price for import taxes on the goods.
While the dispute with China drags on, Argentina is pushing hard for India to take up the slack. Argentina's agriculture minister, Julian Dominguez, recently traveled to India, the world's second-largest edible oil consumer after China, in an attempt to jump-start the trade.
The South-Asian country meets more than half of its annual needs through imports of palm oil from Indonesia and Malaysia and soyoil from Brazil and Argentina.

Palm oil down 2 pct after weaker export concerns
KUALA LUMPUR, Aug 10 (Reuters) - Malaysian crude palm oil futures fell from a 15-month high as investors took profits on lower overseas demand and weaker soyoil markets after a string of palm oil data pointed to a possible stock rise.
   "The vessels lining up in Malaysian ports are getting fewer, for now this will play the biggest role in whether the market will continue to go higher or maybe the starting point for the market to turn back," said a trader in Kuala Lumpur.