20100825 1851 FCPO EOD Daily Chart Study.

FCPO closed : 2486, changed : -24 points, volume : higher.
Bollinger band reading : downside biased.
MACD Histrogram : getting lower, seller in control.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2520, 2550 level.
Comment :
FCPO continue to head south again today after market ended lower in ultra high volume transaction traded after both export cargo surveyor release a drop in export figures. Daily chart wise, market opened higher at the high of the day and dive deep below breaking below crucial psychology 2500 support level with the reading suggesting a downside biased market testing lower support level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with quick cut loss and profit target.

20100825 1848 FKLI EOD Daily Chart Study.

FKLI closed : 1393.5, changed : -5.5 points, volume : higher.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : reversed lower, buyer taking profit.
Support : 1385, 1375, 1360 level.
Resistant : 1395, 1405, 1425 level.
Comment :
Correction continue to take place in FKLI that ended lower in better volume transacted taking a break after worked hard 8 straight days.  Daily chart wise, market opened unchanged and tested and stay below support turned resistant level at 1395 and the outlook turned into a correction range bound 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.

20100825 1314 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1396, changed : -3 points, volume : low.
Bollinger band reading : side way range bound downside biased.
MACD Histrogram : getting lower, buyer closing position to realise profit.
Support : 1395, 1385, 1375 level.
Resistant : 1405, 1425, 1445 level.
Comment :
FKLI ended first session lower in lesser volume traded as trader started to roll over to forward month contract 4 days ahead of expiry date to maintain their position. Hourly chart wise, market opened unchanged and test 2 tick higher before coming down lower to test support level with the reading suggesting a side way range bound downside biased market development.

20100825 1303 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2501, changed : -9 points, volume : high.
Bollinger band reading : downside biased.
MACD Histrogram : getting lower, seller testing support level.
Support : 2500, 2470, 2450 level.
Resistant : 2520, 2550, 2570 level.
Comment :
Decline in export data released lead FCPO to trade lower in ultra high volume transaction despite market opened higher and seller take the opportunity to start their program selling again pressed price lower tested support level but buyer seems putting effort to hold the 2500 defense line.
Hourly chart wise, price traded around the lower Bollinger band level with the reading suggesting a downside biased market development with possible pullback correction.

20100825 1000 Local & Global Economic News.

Malaysia: BNM says ringgit move will boost trade
Recent moves to allow the ringgit to be used more widely for trade settlement will bolster the country's trade with major Asian trading partners, the central bank said. "The recent changes in the foreign exchange administration rules are part of the liberalization process aimed at achieving greater efficiency in the conduct of international trade as well as promoting a conducive business," (Financial Daily)

Singapore: Bond sales beat record as economy fires, costs plunge
Singapore bond sales are accelerating as companies on an island vying for the title of world’s fastest-growing economy exploit the lowest funding costs in at least two decades to finance expansion. Temasek Holdings Pte. and CapitaLand Ltd. led borrowers that raised USD14.1bn this year, topping the record USD13.2bn of notes sold in 2001. (Bloomberg)

India: Curbing inflation is its priority
India’s central bank said controlling inflation is its top priority, a stance that may fuel speculation it will raise interest rates for the fifth time since mid-March. “Inflation containment may have to receive precedence over the other policy objectives,” the Reserve Bank of India said in its annual report. “Inflation has emerged as a major concern,” (Bloomberg)

Japan: Currency moves ‘one-sided’ as yen climbs
Japan’s Finance Minister Yoshihiko Noda said recent currency movements have “clearly” been one-sided as the yen climbed to its highest level since 1995 against the dollar and more than an eight-year high against the euro,, referring to the yen’s advance against the dollar and the euro. (Bloomberg)

EU: German exports, investment drove second-quarter GDP
Exports and investment fueled Germany’s record economic growth in the second quarter, a detailed breakdown of the data showed. Exports rose 8.2% from the first quarter and equipment investment increased 4.4%, the Federal Statistics Office in Wiesbaden said. Gross domestic product surged 2.2% when adjusted for seasonal swings. (Bloomberg)

US: Home sales plunge as tax credit wanes
Sales of existing houses plunged by a record 27% in July as the effects of a government tax credit waned, showing a lack of jobs threatens to undermine the US economic recovery. Purchases plummeted to a 3.83m annual pace, the lowest in a decade of record keeping, figures from the National Association of Realtors showed. (Bloomberg)

E.U: Industrial orders rose more than economists forecast in June . Orders in the 16 nation euro area increased 2.5% MoM from May, when they jumped 4.1% MoM, the European Union's statistics office in Luxembourg said. (Source: Bloomberg)

Germany: Exports, investment fueled economic growth in 2Q10 , a detailed breakdown of the data showed. Exports rose 8.2% QoQ from the first quarter and equipment investment increased 4.4% QoQ. GDP surged 2.2% QoQ when adjusted for seasonal swings. That's the fastest since records for a reunified Germany began in 1991. (Source: Bloomberg)

Ireland: Cut one step by S&P as bank rescue costs rise . Ireland's long-term sovereign credit rating was cut one step to AA by Standard & Poor's on concern about the rising cost of supporting the country's struggling banks. S&P raised its estimate for recapitalizing the banking system to as much as EUR 50b (USD 63b) from a previous estimate of as much as EUR 35b. (Source: Bloomberg)

20100825 0959 Malaysia Corporate News.

Stocks drop after sharp fall in July home sales
Stocks are closing lower after another disappointing report on housing renewed worries about the economy. The Dow Jones industrial average lost 134 points on Tuesday following news that sales of previously occupied homes fell last month to their lowest level in 15 years. The Dow dipped below 10,000 pts for the first time in seven weeks. The yield on the two-year Treasury note reached another record low. According to preliminary calculations, the Dow fell 134, or 1.3%, to 10,040. The Standard & Poor's 500 index fell 15, or 1.5%, to 1,052, while the Nasdaq fell 36, or 1.7%, to 2,124. Three stocks fell for every one that rose on the New York Stock Exchange, where volume came to 1.2bn shares. (Associated Press)

QL Resources allocates RM400m capex
Agro-based food manufacturer QL Resources has set aside RM400m in capital expenditure (capex) over the next two years, mainly to upgrade existing plants and machinery, and to develop new plants in Vietnam and Indonesia. Managing director Chia Song Kun said the investment would be used to further beef up its core businesses, namely integrated livestock farming, marine product manufacturing and palm oil activities. (Malaysian Reserve)

TNB to build coal-fired power plant in Manjung
Tenaga Nasional (TNB) has been given the go ahead by the Malaysian government to expand its generation capacity at Manjung, Perak, by another 1,00MW. The national power generator and transmission company announced that the coal-fired project will be undertaken on a build, own and operate basis with commissioning of the facility set for March 2015. TNB currently owns and operates a coal-fired 2100MW (3x700MW) facility on a man-made island at Manjung via its wholly-owned unit, Tenaga Janamanjung SB. (Malaysian Reserve)

IJM Land to launch properties worth RM1bn
IJM Land expects to launch new properties with a total gross development value (GDV) of RM1bn to RM1.2bn in the financial year ending 31 March (FY11), said chief executive officer and managing director Dauk Soam Heng Choon. “With the outlook of the property market looking more positive this year, we expect to launch a list of new properties during this financial year. Since April, we have already launched properties with a GDV of RM500m.” (StarBiz)

YTL’s Wessex may drop out of Klang River project
YTL Corp’s Wessex Water Ltd may no longer participate in the multi-billion ringgit project to rehabilitate and develop the polluted Klang River, sources said. Britain-based Wessex is a water treatment and sewerage specialist, which together with property developer I-Bhd, had been part of consortium bidding for the Selangor government project. It is understood that Wessex, together with another consortium and a company, had been chosen to work on different aspects of the project. The other consortium is TSS-Mako Engineering SB while the company is GJA Engineering & Construction SB. (StarBiz)

Firefly buys another 3 ATR72-500s
Malaysian Airline System subsidiary FlyFirefly SB (Firefly) will increase its present turboprop fleet with the purchase of three additional ATR72-500s, two which will be delivered in December 2010 and the third in January 2011. In a statement yesterday, Firefly said the latest purchase would increase its total turboprop fleet to 10. The new aircraft will enter into service one month from delivery date. (Financial Daily)

GenM minorities okay UK casinos buy from sister company
Genting Malaysia’s (GenM) minority shareholders yesterday approved the company’s proposed acquisition of the UK casino businesses from its sister company, Genting Singapore Plc. GenM’s major shareholder Genting and the parent group’s chairman and chief executive Tan Sri Lim Kok Thay (holding 0.28% of Genting Malaysia) did not vote at the EGM yesterday, being deemed interested parties in the transaction. (Financial Daily)

Bond: IDB to list USD3.5b sukuk bonds in KL and London. The Islamic Development Bank (IDB) will dual list USD3.5b of its sukuk bonds in Kuala Lumpur and London by the year-end. Of this amount, USD1.1b has already been issued to investors. (Source: The Star)

CIMB: Biggest stock in M'sia at RM58b. CIMB Group Holdings Bhd consolidated its position as the biggest stock on Bursa Malaysia for a second day, ahead of close rival Malayan Banking Bhd (Maybank), amid some mild selling pressure yesterday. (Source: The Star)

JCorp: Muhammad Ali: I made the decision to quit JCorp. The speculation on the immediate resignation of former president and CEO of Johor Corp (JCorp) ended on Tuesday, Aug 24 when Tan Sri Muhammad Ali Hashim revealed he was the one that made the decision. He said the decision was made due to the current environment that is not conducive for him to stay on. (Source: The Edge Financial Daily)

K-Star: Looks to raise funds. K-Star Sports Ltd, one of the China-based companies listed on Bursa Malaysia, is looking at a few options to raise funds for future expansion plans. It is looking at options such as rights issue, share placement and even a dual listing in Taiwan. (Source: The Star)

MAS: Firefly to double ATR fleet to fuel expansion. Turboprop operator Firefly is looking to double its fleet of ATR 72-500 aircraft from 7 to 14 by 2012. Firefly managing director Datuk Eddy Leong yesterday announced that the airline will be taking delivery of 3 more planes between December this year and January 2011. (Source: Business Times)

20100825 0945 Global Market News.

OIL: Crude lowest in 7-weeks as econ worries intensify
SINGAPORE, Aug 25 (Reuters) - Crude was steady below $72 on Wednesday, trading at seven-week lows, after sliding 2 percent a day earlier on fears that major economies may slip back into recession following dismal U.S. housing data. Last Wednesday, the EIA said U.S. combined commercial stockpiles of crude and refined products in the week to Aug. 13 hit the highest level since weekly records began in 1990, and the highest level since 1980 according to the agency's monthly data.

COMMODITY MARKETS: US housing sales slide slams oil, copper, grains
NEW YORK, Aug 24 (Reuters) - A huge drop in U.S. home sales on Tuesday sent slew of commodities tumbling, including oil, copper, grains and coffee futures, as the economic outlook and demand prospects dimmed, but a sliding dollar provided some support for commodities.
"Existing home data was worse than expected and is putting pressure on everything," said Tom Bentz, broker at BNP Paribas Commodity Futures Inc in New York.

GLOBAL MARKETS: Stocks drubbed, yen gains as US housing teeters
NEW YORK, Aug 24 (Reuters) - World stocks fell to one-month lows on Tuesday and the yen hit a 15-year high as dismal U.S. housing data added to fears the global economic recovery would fizzle out.
"The wheels are coming off the recovery," said Keith Springer, president of Capital Financial Advisory Services in Sacramento, California.

Euro zone industrial orders surge in June
BRUSSELS, Aug 24 (Reuters) - Euro zone industrial new orders rose slightly more than expected during the month of June, data showed on Monday, boding well for economic growth in the third quarter of 2010.
Industrial orders in the 16-nation currency zone increased 2.5 percent month-on-month for a 22.6 percent annual gain, European Union statistics office Eurostat said.

ANALYSIS-Dollar becomes funding currency as yields tumble
NEW YORK, Aug 23 (Reuters) - The dollar is quickly becoming a funding currency for purchases of higher yielding assets as U.S. Treasury yields slump and the U.S. economic outlook remains uncertain.
While the dollar is still far from surpassing the Japanese yen and the Swiss franc as the world's funding currency of choice, investors are no longer rushing to buy the greenback as a safe haven any time trouble erupts worldwide.

World stocks slide; yen buoyant
LONDON, Aug 24 (Reuters) - World stocks fell as investors fretting about an anaemic global recovery dumped risky assets and fled into government debt and other safe-haven assets including the yen, which hit a 15-year high against the dollar.
"If the U.S. housing data today is weak, that could take the market down," said Justin Urquhart Stewart, director at Seven Investment Management. "In light volumes, it's reacting to every bit of news, and the next economic news could be bad. M&A news has had a disproportionate effect."

20100825 0944 Soy Oil & Palm Oil Related News.

1:50 pm SGS export data :  Down 14.9% to 939,456 tonnes for the period of 1~25 Aug 2010.
10:07 am ITS export data : Down 7.6% to 992,319 tonnes for the period of 1~25 Aug 2010.

Soy-product futures ended mixed, with the unwinding of meal/oil spreads supporting soyoil futures. Soymeal followed soybeans lower on seasonal pressure, while soyoil climbed as traders reduced risk exposure in soymeal by liquidating some meal/oil spreads. December soyoil settled 0.24 cent, or 0.6%, higher at 40.06 cents per pound. December soymeal ended $5.20, or 1.8%, lower at $289.70 per short ton.(Source: CME)

Palm oil drops 0.6 pct on technicals, weak demand
KUALA LUMPUR, Aug 24 (Reuters) - Malaysian crude palm oil futures fell 0.6 percent on technical selling and a slowdown in demand thanks to a surge in cash prices.
"Looking at the current scenario, the physical market is a bit quiet. Destination interest is mute for the time being," said a trader in Kuala Lumpur.

20100825 0933 FCPO EOD Daily Chart Study.(24 Aug 2010)

FCPO closed : 2510, changed : -50 points, volume : higher.
Bollinger band reading : correction range bound little downside biased.
MACD Histrogram : getting lower, seller increase exposure.
Support : 2520, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
Continue lower soy oil prices due to recovering US Dollar lead FCPO fall lower with increasing volume transaction traded ahead of export data announcement. Daily chart form a wide range down bar candle indicate seller getting aggressive with their program selling activities toward the 50% fibonacci retracement level. Outlook turned into a correction range bound little downside biased market reading.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with quick cut loss and profit target.