20100827 1851 FCPO Weekly Chart Study.

Weekly Close: 2542, High: 2569, Low: 2486, Range: 83 points
FCPO closed : 2542, changed : -2 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : weakenning, buyer reducing position as seller testing market.
Support : 2540, 2500, 2450 level.
Resistant : 2600, 2650, 2700 level.
Comment :
2 ticks lower week on week FCPO tested lower support near middle Bollinger band and rebounded upward to closed off the low as putting effort to support the market after interested seller testing market strength. Weekly chart form a long lower part shadow doji bar candle and the outlook turned into suggesting a side way range bound correction market.

20100827 1850 FCPO EOD Daily Chart Study.

FCPO closed : 2542, changed : +12 points, volume : lower.
Bollinger band reading : correction range bound little downside biased.
MACD Histrogram : recovering, seller reducing exposure.
Support : 2520, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
FCPO continue to corrected higher after the recent plunge ended marginally higher in lesser volume changed hand following a continue soy oil price recovery. Daily chart wise, market still having a technical rebound potentially testing higher resistant level with the outlook still recording correction range bound little downside biased.
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.

20100827 1823 FKLI Weekly Chart Study.

Weekly Close: 1414, High: 1419, Low: 1390, Range: 29 points.
FKLI closed : 1414 changed : +24 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer ruled.
Support : 1395, 1385, 1375 level.
Resistant : 1425, 1445, 1470 level.
Comment :
FKLI recorded gained reaching new high in supporting increasing volume transaction. Weekly chart shows, price surge seems over extended closing way above upper Bollinger band but nevertheless the reading remained unchanged by suggesting a upside biased market with potential pullback correction.

20100827 1808 FKLI EOD Daily Chart Study.

FKLI closed : 1414, changed : +4.5 points, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : rising higher, buyer on guarded.
Support : 1405, 1395, 1385, 1375 level.
Resistant : 1425, 1445, 1470 level.
Comment :
Super bullish FKLI gained higher in little lower volume transaction after market opened and tested lower before resume upward movement momentum breaking new year high level with profit taking activities took place pressed price to closed off the high. Daily chart shows price moving along the expanding upper Bollinger band with the reading remained calling an upside biased market 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.

20100827 1311 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1411, changed : +1.5 point, volume : high.
Bollinger band reading : upside biased.
MACD Histrogram : rising higher, buyer stayed put.
Support : 1405, 1395, 1385, 1375 level.
Resistant : 1425, 1445, 1470 level.
Comment :
Overnight fall on Dow Jones to closed below 10,000 level leaded to a much lower FKLI open  but some how buyer will is just too strong maintaining their position supported market all the day to break another new year high recorded slightly gain to closed for lunch. Hourly chart shows that the uptrend remained intact with the reading still suggesting an upside biased market.

20100827 1300 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2548, changed : +18 points, volume : moderate.
Bollinger band reading : upside biased.
MACD Histrogram : getting higher, seller reducing exposure.
Support : 2520, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
FCPO continue to edge higher in average volume changed hand after industry expert Mr. Dorab Mistry given a bullish outlook on FCPO price with the 2nd half year target near RM3,000 per tonne during yesterday Brazil conference due to erratic weather causing lower production. Hourly chart wise, price opened unchanged and surge upward tested above but closed below 2550 resistant level with the reading suggesting an upside biased market development.

20100827 1022 Global Economic News.

Japan: BOJ under pressure to boost economy as yen threatens expansion
Prime Minister Naoto Kan’s government is stepping up pressure on the Bank of Japan to spur growth as it tries to jump start a slowing economy under threat by a currency at a 15-year high. The ruling Democratic Party of Japan called on the central bank to “speedily take further steps” in a stimulus package proposal presented to Kan in Tokyo yesterday. (Bloomberg)

Japan: Consumer prices fall in July as economic growth slows . Prices excluding fresh food slid 1.1% YoY. (Source: Bloomberg)

Japan: Unemployment rate unexpectedly falls to 5.2% in July . The median forecast of 24 economists surveyed by Bloomberg News was 5.3%. (Source: Bloomberg)

E.U: Loans to households and companies grew in July . Loans to the private sector rose 0.9% YoY after growing an annual 0.5% YoY in June. That's the strongest increase since June 2009. M3 money supply, which the ECB uses as a gauge of future inflation, increased an annual 0.2% YoY in July, the same rate recorded in the previous month. (Source: Bloomberg)

China: Direct investment in the U.S. plunged in 1H10 even as its overall foreign acquisitions rose to a record, underscoring the nation's efforts to diversify its portfolio, according to the Heritage Foundation. China's non-bond investments in the U.S. slumped 47% YoY to USD 1.6b, while those in the rest of the world surged 34% to USD 29b. (Source: Bloomberg)

Singapore: Factory output in July rises at slowest pace in eight months as pharmaceutical companies reduced output after a ramp-up earlier this year. Manufacturing climbed 9.9% YoY, after a revised 29.5% YoY gain in June. (Source: Bloomberg)

Philippines: Bangko Sentral ng Pilipinas kept key rate at 4% to support recovery . The Philippine central bank kept its benchmark interest rate at a record low as easing inflation gives it room to support the nation's economic recovery. That's the lowest level since central bank data started in 1990. (Source: Bloomberg)

Philippines: Economic growth unexpectedly accelerated in 2Q10 to the fastest pace in three years as consumer and government spending increased. GDP increased 7.9% YoY compared with a revised 7.8% YoY gain in the three months through March. (Source: Bloomberg)

Australia: Business investment unexpectedly fell 4% in 2Q10 , a sign companies are delaying spending plans on renewed concern about the global economy and doubts over a local mining tax. Capital spending dropped 4% QoQ from the previous three months, when it declined a revised 1% QoQ. (Source: Bloomberg)

EU: Confidence drops to 6-year low, survey shows
European’s confidence in the European Union dropped to a 6-year low as the 27-nation bloc battled the Greeceled debt crisis, according to the latest Eurobarometer survey. 49% of respondents said their nation’s membership in the EU was “a good thing”, according to the poll of more than 26,000 people released by the EU executive arm in Brussels. (Bloomberg)

EU: Loan growth accelerates as economy recovers
 Loans to households and companies in Europe grew at the fastest pace in 13 months in July after the economic recovery gathered steam. Loans to the private sector rose 0.9% from a year earlier after growing an annual 0.5% in June. M3 money supply, a gauge of future inflation, increased an annual 0.2% in July, the same rate recorded in the previous month. (Bloomberg)

US: Jobless claims decrease more than forecast
Applications for jobless benefits fell more than forecast last week, easing concern American employers are again slashing payrolls as the economy slows. Claims dropped by 31,000, the first decline in a month, to 473,000 in the week ended 21 Aug. The total number of people receiving government payments exceeded 10m for the first time in 4 months, reflecting an increase in those getting extended benefits. (Bloomberg)

20100827 1021 Malaysia Corporate News.

F&N to buy 23% of Cocoaland
Fraser and Neave Holdings (F&N), Malaysia's largest soft drinks manufacturer and distributor, has agreed to acquire a 23.0% stake in Cocoaland Holdings for RM54.6m to expand in the food business. Under the deal, F&N is proposing to buy 39.6m new shares in confectionery maker Cocoaland for RM1.38 each. Cocoaland's last traded price prior to its suspension was at RM2.87 a share. Cocoaland has rallied by 119% this year. F&N chief executive officer Datuk Ng Jui Sia said the stake in Cocoaland, its first in a food manufacturer, will provide the group with a strategic and synergistic foothold to advance its food products in its existing regional, world-class food and beverage (F&B) enterprise. (BT)

Tenaga proposes 1-for-4 bonus issue of up to 1.12bn shares
 Tenaga Nasional has proposed a one–for-four bonus issue of up to 1.12bn shares of RM1 each with the entitlement date to be announced later. As at 31 May 2010, its paid-up capital stood at RM4.35bn, comprising 4.35bn shares while there were 129.85m shares outstanding ESOS options. In a statement to Bursa Malaysia yesterday, Tenaga said the bonus issue would be carried out by capitalizing up to RM1.12bn from its share premium account, which amounted to RM5.27bn as at 31 August 2009. (Financial Daily)

Masterskill to buy land
Masterskill Education Group says wholly-owned Masterskill (M) SB will buy nine plots of freehold land for RM30.04m to build the group’s flagship university campus. The land in Kajang measures a total of 19.77 hectares. The university campus, dubbed Masterskill University College of Health Sciences, will comprise an academic block with about 700,000 sq ft in built-up area and hostel facilities of about one million sq ft in built-up area. The campus will be able to accommodate around 20,000 students, Masterskill said in a statement. (BT)

 JPK to be axed from Bursa
JPK Holdings will be de-listed from Bursa Malaysia Securities on 8 Sept 2010, after a filing to submit its regularization plans to the regulators. In a filing to the exchange yesterday, the trading of the securities of the company will be suspended with effect from 6 Sept. “The securities of the company will be de-listed on 8 Sept unless an appeal is submitted to Bursa Securities on or before 3 Sept 2010. Any appeal submitted after the appeal timeframe will not be considered,” it said. JPK said it would be appealing against the decisions. (Malaysian Reserve)

Affin and BEA form strategic partnership
Affin Holdings (AHB) and The Bank of East Asia Ltd, Hong Kong (BEA) have formally established a partnership to jointly develop business in China, Hong Kong, Malaysia and other key markets where they both operate. Both parties signed a memorandum of understanding yesterday for the strategic partnership to signify the beginning of a long-term collaboration between AHB and BEA. The signing outlines the framework for a mutually beneficial co-development of businesses between AHB and BEA. AHB said the strategic partnership would enhance AHB’s ability to support its customers who want to have a business presence in China and Hong Kong by leveraging on BEA’s strong presence and extensive branch network there. (StarBiz)

Axiata's CFO joins Goldman
Datuk Yusof Annuar Yaacob, the group chief financial officer of Axiata Group, will leave the group at the end of November this year. He will join US investment bank Goldman Sachs as the managing director for Goldman Sachs Corporate Finance Malaysia, Axiata said in a statement. (BT)

AirAsia may consider aerobridges at new LCCT
Budget carrier AirAsia may consider using aerobridges at the new permanent low-cost carrier terminal (LCCT) to aide passenger convenience, says its chief. "MAHB (Malaysia Airports Holdings) has given us a proposal on using aerobridges and if we can get the right economic deal, we will consider it," AirAsia chief executive officer Datuk Seri Dr Tony Fernandes said. Fernandes added that the airline would still be able to meet its 25-minute turnaround time with the usage of aero-bridges. (BT)  

Autos: Ford, Mazda to invest RM1.1b in Thailand plant. Ford Motor Company and Mazda Motor Corp will invest USD350m (RM1.1b) in their joint-venture AutoAlliance Thailand (AAT) plant in Rayong to support the production of their next generation compact pickup trucks. The investment will enable production of the new Mazda and Ford compact pickups to start in mid-2011. (Source: Malaysian Reserve)

Banking: No fee for unilateral wa'd currency hedging. Islamic financial institutions can enter into forward foreign currency transactions for hedging purposes based on unilateral wa'd (promise) but no fee is to be charged on the promisee, according to Bank Negara's Syariah Advisory Council. The fees were not to be charged on the promisee in view that upfront cash payment for forward currency transaction would lead to a bilateral wa'd which was not allowed by syariah. (Source: The Star)

Green Packet: To supply WIMAX modems to Saudi's GO. Green Packet Bhd has sealed a deal to supply its WIMAX modems to Saudi Arabia's first and fastest growing 4G operator, GO (Etihad Atheeb Telecom Co). Green Packet said GO held a fixed line license on the 3.5 GHz frequency spectrum across 13 regional divisions of Saudi Arabia, and aimed to revolutionise internet broadband services by bringing the latest telecommunications wired and wireless technologies to the kingdom. (Source: The Edge Financial Daily)

Markets: CDRC to revamp RM2.2b debts. The revived Corporate Debt Restructuring Committee (CDRC) has agreed to help restructure RM2.2b of debts from 13 applicants. The companies that CDRC agreed to help in recent months included KBB Resources Bhd, Tracoma Holdings Bhd, Limahsoon Bhd, Carotech Bhd and LCL Corp Bhd. (Source: The Star)

Pantech: New plant will raise manufacturing revenue. Pantech Group Holdings Bhd, a pipes, fitting and flow-control products manufacturer, expects its manufacturing division revenue to increase by 50% when its new plant in Pasir Gudang, Johor, commences operation by year-end. It is sited on part of a 8ha land and has an initial capacity of 7,000 tonnes annually, producing mainly stainless steel welded pipes and fittings. (Source: The Star)

Plantation: Felda settlers set to receive RM11m award. Felda has to pay RM11m in damages to 354 settlers after the agency's final bid to appeal against the payment order was refused by the Federal Court here. (Source: The Star)

Zelan: To focus on Gombak project. Engineering and construction group Zelan Bhd will focus on the Gombak Integrated Transport Terminal (GITT) project, which is expected to provide an income stream of RM900m over 25 years. To be concluded in the next couple of months, the project would contribute an additional RM220m to Zelan's orderbook. (Source: Business Times)

20100827 1013 Global Market News.

Stocks slip; market tense before Bernanke
SYDNEY, Aug 27 (Reuters) - Asian stocks fell on Friday to round off a week of losses as persistent worries over whether the U.S. economy may suffer another recession kept investors dour.
"What Bernanke says or doesn't say will determine our fate next week," said Don Williams, chief investment officer at Platypus Asset Management in Australia. 

GLOBAL MARKETS: Stocks slip; market tense before Bernanke
SYDNEY, Aug 27 (Reuters) - Asian stocks fell on Friday to round off a week of losses as persistent worries over whether the U.S. economy may suffer another recession kept investors dour. "What Bernanke says or doesn't say will determine our fate next week," said Don Williams, chief investment officer at Platypus Asset Management in Australia.

GLOBAL MARKETS: Stocks slip; market tense before Bernanke
SYDNEY, Aug 27 (Reuters) - Asian stocks fell on Friday to round off a week of losses as persistent worries over whether the U.S. economy may suffer another recession kept investors dour.
"What Bernanke says or doesn't say will determine our fate next week," said Don Williams, chief investment officer at Platypus Asset Management in Australia.

OIL: Crude snaps two-day rally ahead of U.S. GDP report
SINGAPORE, Aug 27 (Reuters) - Crude snapped a two-day rally on Friday, heading for a third straight week of losses, as an expected downgrade in U.S. economic growth fed disquiet over record oil inventories and weak housing and manufacturing data. The U.S. government on Friday is expected to revise second-quarter gross domestic product (GDP) growth lower to an annual pace of 1.4 percent, from 2.4 percent, according to a Reuters survey.

US July new home sales sag, durables orders soft
WASHINGTON, Aug 25 (Reuters) - New U.S. home sales slumped to the slowest pace on record in July and orders for costly durable goods were weak, heightening fears the economy was at risk of another downturn. The reports on Wednesday from the Commerce Department suggested growth could slow materially without government support and some economists saw the risk of a contraction in output in the third quarter.

FOREX-Euro rises, supported by higher European shares
LONDON, Aug 26 (Reuters) - The euro rose on Thursday as a rise in global share prices prompted investors to pick up riskier currencies, but gains were capped as more weak U.S. economic data indicated the pace of recovery was slowing. "The market is still looking at stocks and how the ongoing correlation between risky assets and euro/dollar holds up, and it still seems to be holding up well," said Jeremy Stretch, head of currency strategy at CIBC.

World stocks rebound from lows, yen slips
LONDON, Aug 26 (Reuters) - World stocks bounced off seven-week lows and Japan's yen weakened in another burst of the risk-on, risk-off trading that has dominated financial markets this year. "Companies have been reporting reasonable results," said David Buik, partner at BGC Partners. "But whether a rally can be sustained is to be seen, there is nothing to say the bad news is all over."

20100827 1012 Soy Oil & Palm Oil Related News.

Soy product futures ended higher, bouncing in step with advances in soybeans. Lingering concerns about the yield potential of the U.S. soy crop provided strength for soyoil and soymeal, analysts said. December soyoil settled 0.36 cent, or 0.9%, higher at 40.08 cents per pound. December soymeal ended $6.30, or 2.2%, higher at $298.30 per short ton. (Source: CME)

India 2010-11 Soybean Output Likely Up On Better Rains, Yield (Source: CME)
Soybean production in India is likely to rise in the next crop year, driven by better yields due to good rains in major growing regions, industry executives said Thursday. The country is estimated to have produced about 8.5 million metric tons in the crop year ending Sept. 30, according to data from the Central Organisation for Oil Industry and Trade. The overall production in 2010-11 will be better than the current year, but it is too early to give any figure, said Govindbhai Patel, managing partner of Dipak Enterprises and an expert on vegetable oil industry. The soybean production in 2009-10 fell about 5% as India suffered its worst drought in almost four decades, with monsoon rains 22% below average. But the monsoon rains are near normal this year so far, boosting the prospects of crop growth. The crop condition is quite good in major soybean growing regions as the rains are coming in regular intervals, said S.K. Srivastava, director of National Research Centre for Soybean.
The sowing of soybean--the main oilseed grown in the summer season--in India starts in June and continues through July. Total area under summer-sown oilseeds has increased 5.4% to 16.14 million hectares until Aug. 20, according to the latest government data. Total yield is likely to improve from the this year's level of 1.1 tons per hectare, Srivastava said. Despite expectation of higher production and large stocks India's edible imports in 2010-11 may remain mostly steady compared with the current year, industry executives said. India--which imports nearly half of its edible oil needs--is likely to import 8.2 million-8.4 million tons in the marketing year ending Oct. 31, said Pradip Desai, managing director of Mumbai-based importer Palmtrade Services Pvt. Ltd. It's difficult to see edible oil imports going above 8.5 million or 8.6 million tons in 2010-11, he added. India is the world's second-largest edible oil importer.
It imports palm oil mostly from Indonesia and Malaysia, and soyoil from Argentina and Brazil.

Indonesia sets Sept CPO export tax at 6 pct, cocoa steady
JAKARTA, Aug 26 (Reuters) - Indonesia will set its crude palm oil (CPO) export tax at 6 percent in September, up from 3 percent in August, the trade ministry said on Thursday, confirming an earlier Reuters story. It also raised the CPO base export price to $804 per tonne, from $725 per tonne in August. The trade ministry kept its export tax for cocoa beans at 10 percent in September, unchanged from August. But the cocoa base export price which is used to calculate the tax will be cut to $2,673 a tonne in September from $2,738 a tonne in August.

Palm oil rebounds from low on technicals, oils
KUALA LUMPUR, Aug 26 (Reuters) - Malaysian crude palm oil futures rebounded from one-month lows hit the previous day due to technical buying and firmer oils markets. "The market is up on technical retracement and a correction after a fall earlier. It also followed external soy, soyoil and crude oil markets that edged higher (in the afternoon session)," said a trader with a foreign brokerage in Kuala Lumpur.

Port closure seen hurting India Aug soymeal exports
MUMBAI, Aug 26 (Reuters) - India's soymeal exports in August are likely to fall short by about 50,000 tonnes compared to July, despite higher crushing as a closure of a key port in western India cut shipments, two oil millers and one port official said. Operations at Mumbai port were affected for nearly a fortnight in August after two Panamanian ships collided just off Mumbai's coast on Aug. 7.

20100827 0950 FCPO EOD Daily Chart Study.(26 Aug 2010)

FCPO closed : 2530, changed : +44 points, volume : lower.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : turned upward, seller take profit.
Support : 2520, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
Recovering soy oil and crude oil futures prices plus Indonesia imposed a higher export tax on crude palm oil lead FCPO to closed at the high of the day gained 44 points in lesser volume traded. Daily chart formed a wide range up bar candle after market opened higher and climb upward but overall the reading still suggesting a downside biased with correction taking place market development.
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.