20100927 1844 FCPO EOD Daily Chart Study.

FCPO closed : 2735, changed : +34 points, volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer position stay firm.
Support : 2720, 2700, 2670 level.
Resistant : 2750, 2770, 2800 level.
Comment :
Increased volume transaction FCPO closed higher after opened at the high of the day followed by some mild profit taking activities pulled market to test lower support and closed recover up slightly after both export cargo surveyor released improved export data. Daily chart formed a higher down bar candle closed near upper Bollinger band with the reading turned into suggesting a upside biased market development.
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.

20100927 1826 FKLI EOD Daily Chart Study.

FKLI closed : 1470.5, changed : +20 points, volume : higher.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : reversed upward, buyer returned for a rematch.
Support : 1470, 1458, 1445 level.
Resistant : 1485, 1500, 1530 level.
Comment :
FKLI recorded huge gain traded in increasing volume transaction in tandem with a positive regional market development doing 6 points premium compare to cash market. Daily chart shows that market rebounded after tested the middle Bollinger band support level formed a wide range up bar candle with the reading suggesting a side way range bound little upside biased testing resistant level near upper Bollinger band.
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.

20100927 1303 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1471, changed : 20.5 points, volume : high.
Bollinger band reading : upside biased.
MACD Histrogram : getting higher, buyer counter attack.
Support : 1470, 1458, 1445 level.
Resistant : 1485, 1500, 1530 level.
Comment :
Positive regional market development plus continue cash market heavy weight counters buying especially banking stock lead FKLI to rally higher in ultra high volume changed hand. Hourly chart shows market opened little higher and surged up breaking 2 resistant levels and closed at the high of the day. Daily chart formed a long lower shadow doji bar candle after price break below and closed right at the middle Bollinger band support level. Outlook switch into a side way range bound market reading testing support and resistant level. Reading wise, market is likely to trade upside biased testing previous high resistant level.

20100927 1252 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2748, changed : +47 points, volume : moderate.
Bollinger band reading : upside biased with possible correction.
MACD Histrogram : getting higher, buyer in control.
Support : 2720, 2700, 2670 level.
Resistant : 2750, 2770, 2800 level.
Comment :
Rallied higher soy oil futures price, concern on uncertain weather plus an announce improved export data lead FCPO to traded higher in moderate volume changed hand. Hourly chart wise, price opened gap up higher and traded side way range bound due to some profit taking activities and seems facing heavy resistant challenge near the 2750 level. Outlook wise, market is likely to trade upside biased with possible downward pullback correction as price stay above upper Bollinger band for sometimes now.

20100927 1106 Global Economic News.

China: Needs to balance growth, inflation
Promoting economic growth while managing inflation expectations pose a challenge to economic recovery, Chinese Vice-Premier Wang Qishan said yesterday. The global economic uncertainties and rising trade protectionism could take a toll on China’s economic growth, Wang was quoted saying. A flood of easy money following the government’s efforts to ward off the negative impact of the global economic crisis has fanned concerns about inflation and asset bubbles.(Financial Daily)

Japan: Yen likely to undermine company sentiment
The Bank of Japan’s Tankan survey will probably show a slowing pace of improvement in business confidence, adding to pressure on policy makers to counter gains in the Yen by injecting more cash into the economy. A quarterly index of sentiment at large manufacturers rose 6 points in September, the least since March 2009, according to the median forecast of 19 economists surveyed. (Bloomberg)

US: Treasury said to prepare unveiling of AIG exit, repayment plan
The US Treasury Department may unveil plans as early as this week to return American International Group Inc. to independence and recoup taxpayer funds from the insurer’s bailout, said three people with knowledge of the negotiations. The biggest part of that strategy is for Treasury to begin converting its USD49bn preferred stake into common stock for sales by the first half of next year, said the people, who declined to be identified. The timing of an announcement depends on the pace of negotiations between regulators and the New York-based insurer, the people said. (Bloomberg)

US: Manufacturing probably cooled this month
Manufacturing probably cooled in September and consumer spending stabilized last month, underscoring the Federal Reserve’s forecast of “modest” US growth in coming months, economists said before reports this week. The Institute for Supply Management’s factory index fell to 54.5 from 56.3 in August, according to the median of 63 forecasts in a survey ahead of the report due on 1 October. (Bloomberg) 

20100927 1105 Malaysia Corporate News.

Sarawak offers RM6bn for Bakun hydroelectric project
The Sarawak government has offered RM6bn to buy over the Bakun hydroelectric project from the federal government, said Sarawak Chief Minister, Tan Sri Abdul Taib Mahmud. Abdul Taib said the negotiations on the matter (the state buying over the project) were still ongoing and that a final decision had yet to be reached. According to him, the federal government had yet to put a price tag on the project, which is estimated to have incurred costs exceeding RM7.3bn. (Malaysian Reserve)

Sunway to launch RM1.1bn project in Singapore
Sunway Holdings Bhd will launch its third property project with a gross development value (GDV) of RM1.1bn in Singapore next week, said managing director Yau Kok Seng. Yau said the 1.92ha project, called Vacanza @ East, would be located at Jalan Senang, District 14, a freehold land near Pan Island Expressway. “We expect good response for the project,” he said after signing a joint-venture (JV) agreement with the Dasa Group of Sri Lanka here yesterday. He said profit margin in Singapore was usually 12%. The project will comprise eight blocks of 12-storey buildings, which will have 500 units. Sunway will also launch another project, with a GDV of SGD370m in the second half of 2011 in Singapore. It will comprise 17 blocks of five-storey residential development. The JV agreement signed yesterday was between Sunway unit SunwayMas Sdn Bhd and Dasa Group for a RM250m mixed development project in Bambalapitiya, Colombo. A JV company will be formed in Sri Lanka, with SunwayMas having a 65% stake and remainder taken up by Dasa Group. SunwayMas would fund its investment in the JV company through bank borrowings and internal funds. (StarBiz)

YTL Cement to buy out Perak-Hanjoong
YTL Cement Bhd has offered to buy a 35.16% stake in Perak-Hanjoong Simen SB from Gopeng Bhd for RM200m in a move that will see the company consolidating its position in the building material industry. YTL Cement said Gopeng had, on 24 Sept, accepted its offer to buy all 117.74m ordinary shares of RM1.00 each, with a formal sale and purchase agreement to be entered in due course. (Malaysian Reserve)

Karambunai denies plan to build resort casino
The surge of Karambunai Corp Bhd (KCB) shares since speculation arose it might get a casino licence as part of a proposed integrated resort (IR) at its existing resort in Sabah has created excitement in the market but the company last Friday poured cold water on any such move. “KCB has not up to date submitted any official proposal to the Malaysian government, nor has it penned any written documents with any other third parties in respect of any plan to build a casino in Karambunai,’’ the company told Bursa Malaysia. KCB said since it was a key player of tourism in Sabah, its general manger of the Nexus Karambunai Hotel was invited to be a member of Pemandu’s NKEA tourism lab. “During the lab sessions, KCB’s representative has been discussing and disclosing drawings in Karambunai with members of the private and public sectors as to the manner in which Karambunai as a member of the private sector may assist in this direction,” it explained. “Pemandu is free to use any drawings conducted in the lab sessions, but chooses drawings from Karambunai which has copyrights source & status. To KCB, these chosen drawings are merely meant as a plan. The recent public information simply mentions the existence of a IR in Kota Kinabalu Sabah and has not disclosed and named specifically KCB as a party. (StarBiz)

Azman Hashim to take MCM private
ACE market firm MCM Technologies Bhd’s major shareholder Tan Sri Azman Hashim has made an offer to take the company private at 13 sen a share, according to statement to Bursa Malaysia last Friday. The offer, to be satisfied entirely by cash, came in at 13% higher compared to MCM’s pre-suspension price of 11.5 sen. Azman, through Amcorp Group Bhd’s wholly owned unit Mezzanine Capital (M) Sdn Bhd controlled a 62.75% stake in MCM Tech. “The offeror has no intention to maintain the listing status of MCM Tech” assuming that he gets 75% control of the company, documents filed with the exchange on Friday showed. MCM Tech said it received the offer on Thursday and the announcement was posted on Bursa during the mid-day trading break. (StarBiz)

Proposal to resolve bondholders’ worry
A satisfactory proposal is expected be tabled in two week’s time to resolve concerns of bondholders of the Selangor water sector, especially in the area of compensation or assistance, a bondholder told StarBizWeek. An informal meeting was held last Friday between the representatives of the state and federal government and stakeholders in the state’s water sector, in particular bondholders. A bondholder said after the meeting: “We look forward to a positive outcome from this meeting in two week’s time. We believe this meeting today has been fruitful to enable the government to fully appreciate our plight.” He said with the recent downgrade on debt papers by Malaysian Rating Corp Bhd and RAM Ratings in the water sector it had triggered a higher risk weighting for the players. (StarBiz) 

20100927 1100 Global Market News.

Oil trades near two-week high as risk appetite returns
SINGAPORE, Sept. 27 (Reuters) - Oil was steady, trading close to a two-week high near $77 reached earlier, as energy and commodities regained the favour of investors with a weaker dollar and resurfacing risk appetite.
"The dollar has set a weaker tone and that's going to be supportive for oil prices," said Mark Pervan, a senior commodities analyst at ANZ in Melbourne.

Soy at 13-month top; corn, wheat rise on weak dollar
SINGAPORE, Sept 27 (Reuters) - Chicago soy futures climbed to a 13-month top nearly 1 percent, while corn scaled a new 2-year peak as a weak dollar and tight supplies continued to buoy the grain market.
"We have seen strength across the agricultural commodity complex. Beans, corn and wheat are all trading higher with what we have seen in outside markets," said Luke Mathews, commodity strategist at Commonwealth Bank of Australia.

Asian stocks rally, dollar dips to five-month low
SINGAPORE, Sept 27 (Reuters) - Asian stocks rose to their highest in more than two years in response to optimism on the U.S. economy, while the dollar dipped to five-month lows against the euro.
"Wall Street's rise has provided a bit of a boost but gains on the U.S. data are mainly because the figures weren't quite as bad as expected, not that they were really good," said Takashi Ushio, head of the investment strategy division at Marusan Securities. "So gains on this alone will be limited." 

OIL: Crude extends rally, reaches two-week high near $77
SINGAPORE, Sept. 27 (Reuters) - Oil climbed to near $77, the highest level since mid-September, extending last week's rally as energy and commodities regain the favour of investors with a weaker dollar and resurfacing risk appetite.
New orders for a wide range of long-lasting U.S. manufactured goods rose in August and business spending plans rebounded strongly, separate reports showed on Friday, the latest sign a sharp summer slowdown in the economy was abating.

COMMODITY MARKETS: Broad weekly gains; gold hits 7th record for Sept
NEW YORK, Sept 24 (Reuters) - Gold hit record highs on Friday for a seventh time this month and oil, metals and a wide number of crops finished the week with big gains after a falling dollar boosted prices across commodities.
"With the dollar getting definitely weaker with the pass of every session, gold has little work to do other than to head higher to compensate for dollar's slide," said Pradeep Unni, senior analyst at Richcomm Global Services.

GLOBAL MARKETS: Stocks surge, dollar slumps on data, Fed watch
NEW YORK, Sept 24 (Reuters) - Global stocks jumped but the dollar slid on Friday as economic data both raised hopes the recovery is improving and bolstered speculation the Federal Reserve will boost money supply to aid a struggling economy.
"You're finally in a place now that it's not because the equity equation is so attractive that you do something, it's actually because the safe side of the equation is so unattractive that you do something," Pride said.

PRECIOUS-Gold hits record, silver reaches 30-yr peak
LONDON, Sept 24 (Reuters) - Gold rallied to record highs in Europe on Friday, with spot prices knocking on the door of $1,300 an ounce, as expectations grew that further quantitative easing could lead to volatility in the currency markets.
Spot gold  hit an all-time high of $1,298.25 an ounce and was bid at $1,297.70 an ounce at 0917 GMT, against $1,293.50 late in New York on Thursday.

FOREX-Dlr/yen spikes on intervention talk, euro jumps
LONDON, Sept 24 (Reuters) - The dollar spiked above 85.00 yen on Friday on talk of intervention by Japanese authorities keen to stem the yen's recent gains, but quickly retreated as doubts emerged about whether they had taken action.
That left investors nervous about more intervention and, with risk aversion hitting markets, traders said the Bank of Japan's task of weakening the yen was becoming even tougher.

Yen pares losses; intervention talk unconfirmed
LONDON, Sept 24 (Reuters) - The yen staged a partial recovery from losses prompted by unconfirmed talk of central bank intervention , while the euro rose on a stronger than expected German business sentiment survey.
"The price action certainly suggested that the Japanese intervened, but one can't be sure," said Kenneth Broux, markets strategist at Lloyds TSB Financial Markets.

20100927 1056 Soy Oil & Palm Oil Related News.

SGS CPO Export up 15% to 1,080,597 tonnes for the period of 1~25 Sep 2010.
ITS CPO Export up 17% to 1,162,573 tonnes for the period of 1~25 Sep 2010.

U.S. soy product futures closed sharply higher with soybeans on technical buying and robust demand. U.S. soy export sales, particularly to China, have been strong lately and continue to support gains, traders say. Dryness at planting time in Brazil, the world's no. 2 soy producer after the U.S., added support. Weakness in the greenback helped fuel rallies across the grains and soy complex. The soft greenback makes U.S. soy look even more attractive to foreign buyers and brought speculative money into the markets, an analyst says. Commodity funds bought an estimated 2,000 soymeal contracts and 3,000 soyoil contracts at CBOT. CBOT Dec soymeal closed up $7.50, or 2.4%, at $317 per short ton. CBOT Dec soyoil climbed 0.99 cent, or 2.3%, to 44.89 cents per pound.(Source: CME)

Global Soybean Prices Likely To Rise By Dec-Jan - Expert (Source:CME)
Global soybean prices are likely to rise to $11.50 to $12 per bushel by December-January because of supply disruptions in South America and rising demand in China, said global vegetable oil expert Dorab Mistry. "For some time, soybean prices may remain at double digits. Current prices are also not hurting the demand," Mistry said. There is plenty of focus on South America's crop prospects because of questionable soil moisture for early seedings in Mato Grosso--Brazil's top soy-producing state. Brazil is the world's second-largest soy producer after United States. According to Cropcast Weather Services, the soybean crop outlook may not be favorable because of dry weather seen in these areas of Brazil over the past few months. "If Brazil doesn't get rains in December, soybean crop may be hurt," Mistry said.
Higher imports by China, the largest importer of soybean, is going to support global prices, he said, adding that a widening price gap between sunflower oil and soyoil is also boosting soybean prices. The price difference between sunflower oil and soyoil is $150 per ton. Mistry reiterated his earlier 2010 palm oil production estimate for Malaysia of 17.2 million tons, but said the number may be revised in October. The Southeast Asian country produced 17.6 million tons last year.

Overseas demand hopes boost palm; export data eyed
KUALA LUMPUR, Sept 24 (Reuters) - Global vegetable oil futures rose  as traders took positions hoping for a revival in overseas demand ahead of a key industry conference.
"Trade volume picked up in the afternoon trading session of palm oil, it could be related to the international oil conference in Mumbai," said a trader in Kuala Lumpur.

Indonesia ups Oct CPO export tax, cuts cocoa tax
JAKARTA, Sept 24 (Reuters) - Indonesia will set its crude palm oil (CPO) export tax at 7.5 percent in October, up from 6 percent in September, the trade ministry said on Friday.
Higher export tax would mean Indonesia's palm oil products will be more expensive than rival Malaysia, potentially slowing exports in October from the world's top palm oil producer.