20100928 1834 FCPO EOD Daily Chart Study.

FCPO closed : 2737, changed : +2 points, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer in control.
Support : 2720, 2700, 2670 level.
Resistant : 2750, 2770, 2800 level.
Comment :
FCPO edge up marginally traded in lower volume transaction after opened lower and recovered upward following a side way range bound traded soy oil futures price. Daily chart reading remained unchanged by suggesting a 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.

20100926 1816 FKLI EOD Daily Chart Study.

FKLI closed : 1452, changed : -18.5 points, volume : higher.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : turned lower again, seller counter attack.
Support : 1445, 1425, 1405 level.
Resistant : 1458, 1470, 1485 level.
Comment :
FKLI surrendered most of yesterday gain to closed recorded decline in ultra high volume transaction after opened and tested lower closing near the low of the day. Daily chart formed a down bar candle closing below middle Bollinger band with the reading suggesting a side way range bound little upside 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.

20100928 1428 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1464, changed : -6.5 points, volume : high.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : getting weaker, buyer taking profit.
Support : 1458, 1445, 1425  level.
Resistant : 1470, 1485, 1500 level.
Comment :
FKLI eased lower in ultra higher volume traded as traders started to row over position toward next months contract ahead of the expire spot month contract. Hourly chart show that market opened lower and traded range bound testing middle Bollinger band support level doing pullback correction after yesterday rally with the reading calling a correction range bound upside biased market development.

20100928 1254 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2726, changed : -9 points, volume : low.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : getting weaker, buyer realising profit.
Support : 2720, 2700, 2670 level.
Resistant : 2750, 2770, 2800 level.
Comment :
FCPO closed softer for lunch in thin volume transaction traded mostly in profit taking mood after yesterday gain.
Hourly chart shows that market opened lower and traded side way continuing yesterday pullback correction. Reading wise, market is likely to trade correction range bound testing lower support level near middle Bollinger band before resume upside biased.

20100928 1130 Global Economics News.

China: Industrial companies’ profits climb
Chinse industrial companies’ profits climbed 55% in the first eight months of 2010 from a year earlier, bolstering investment as the government pares back stimulus. Net income increased to RMB 2.6 trn (USD390bn), compared with an 11% decline in the same period in 2009. This number gave little indication that labor costs are dragging earnings, after local governments increased minimum wages and companies such as Foxconn Technology Group boosted pay. (Bloomberg)

Hong Kong: Exports unexpectedly increased
Hong Kong’s exports unexpectedly climbed the most in more than 18 years in August, buoyed by Chinese demand and the comparison with a decline a year earlier. Overseas sales increased 36% to HKD 290.1 bn after a 23.3% gain in July, the government said on its website today. None of seven economists in a Bloomberg News survey forecasted such a large jump. (Bloomberg)

Japan: Export growth slows
Japan’s exports grew at the slowest pace this year in August as a decrease in global demand and an advance in the yen threaten to undermine the nation’s recovery. Overseas shipments increased 15.8% from a year earlier, the slowest since December, underscoring concerns that the country’s recovery may falter after cooling exports and stagnant consumer demand more than halved the nation’s growth rate last quarter. The median estimate of 21 economists surveyed by Bloomberg News was for a 19% increase. (Bloomberg)

South Korea: Consumer confidence declines to 14-month low
South Korea’s consumer confidence fell to the lowest level in 14 months amid concern that the nation’s economic recovery will slow. The sentiment index declined for a second straight month to 109 in September from 110 in August, the Bank of Korea said. The index’s recent peak was a seven-year high of 117 in October. A number exceeding 100 indicates optimists outnumber pessimists. A sub-index measuring consumers’ views of the economic outlook dropped to 108 in September from 109 in August, while the expected inflation rate over the next year remained at 3.2%. (Bloomberg)

UK: Home prices decline most in 18 months
UK home values dropped by the most in 18 months in September as all of Britain’s regions posted price declines. The average cost of a home fell 0.4% from the previous month to GBP 157,600 (USD249,000), the third consecutive monthly drop and the biggest since March 2009. Housing demand fell the most since January 2009. Prices rose in September by 1% from a year earlier, the least in seven months. Prices fell in all regions for the first time since April 2009. (Bloomberg)

US: US sets duties on China and Mexico
The US imposed dumping duties on copper pipes and tubes from China and Mexico. The duties will be as much as 60.85% on USD233m of imports from China and as much as 31.43% on USD 130m of imports from Mexico for the products, used in plumbing and for carrying liquids or gases in heating systems. The decision, announced by the Commerce Department, is the third of four needed to make the tariffs final. Chinese and Mexican copper tube makers will have to deposit duties for products shipped to the US while the case is pending. The final ruling is scheduled for 8 Nov. (Bloomberg)

U.S: China bill in Congress may prompt retaliation, businesses say . U.S. legislation pressing China  to raise the value of its currency may boomerang by prompting retaliation against American businesses operating there, representatives of those companies said. The House of Representatives  is set to consider legislation this week that would let companies petition for higher duties on imports from China to compensate for the effect of a weak currency. (Source: Bloomberg)

Gold: Central banks and the IMF sold about 94.5 metric tons of gold in the year that ended on Sept. 27 , the lowest amount under an agreement that began in 1999, according to data from the World Gold Council. Eurozone banks disposed of 6.2 tons, led by Germany, Greece and Malta, while the International Monetary Fund sold 88.3 tons. The figure for the Eurozone banks was 96% below last year's 142 tons. (Source: Bloomberg)

20100928 1127 Malaysia Corporate News.

Another possible by-election in Malaysia
Galas assemblyman Che Hashim Sulaiman died at the Al-Islam Medical Centre in Kampung Baru, Kuala Lumpur, today after a long battle with colon cancer. He was 45. This signals the possibility of another byelection. (NST)

Syabas may get tariff hike
A water tariff hike of between 15% and 20% may be in the offing for Syarikat Bekalan Air Selangor SB (Syabas), sources said. The increment would be a lifesaver for the water treatment players, Syarikat Pengeluar Selangor Holdings (Splash) and Konsortium Abbas SB, which are both on the verge of defaulting on their debt commitments. It is understood that the federal government has agreed in principle to the tariff hike for Syabas, but has yet to get the green light from the Selangor state government which is run by the opposition Pakatan Rakyat. Syabas has the mandate to supply treated water to Kuala Lumpur, Selangor and the federal capital of Putrajaya and under its concession agreement was supposed to get a 37% tariff hike last year. (Financial Daily)

Muhyiddin: Govt yet to decide on PLUS sale
The Government has not made any decision on the sale of PLUS Expressways, says the Deputy Prime Minister. A blog said last week that the Government had given the green light for the Employees Provident Fund to buy PLUS. An earlier report had said that Khazanah might sell its stake in the toll road operator. In the past, privately-held Asas Serba SB had voiced its interest in the highway. It had proposed to pay RM50bn for 25 toll highways and said that its plan would end toll rate increases and help the Government save RM114bn in compensation payments until 2038. (BT)

Taliworks' subsidiary in RM66.8m water project in China
Taliworks Corporation, via its 70% indirectly subsidiary Eco3 Technology and Engineering Pte Ltd, on Monday announced the signing of a 30-year concession agreement to construct and operate the Meihua industrial waste water treatment and recycled water plant in Ningxia Province, China. The project is estimated to cost 145m reminbi (RM66.8m) and construction will proceed with phase one with a treatment capacity of 30m litres per day (MLD), it said in a statement. The Meihua project is an extension of Taliworks' quest for similar industrial waste water projects within the fast-developing Ningxia Province, the group said. (Bernama)

Sarawak seeks debt guarantee
The offer price of RM6.2bn for the 2,400 MW Bakun dam mostly comprises debt that is guaranteed by the Federal Government, with a remaining RM450m that is likely to be paid via installments, according to sources. While there is no mention of debt repayment, it is assumed that the state government will service the loans which it proposes to be still guaranteed by the Federal Government. It is learnt that the average interest rate is less than 6% for 12 years ending 2023. (StarBiz)

EONCap shareholders give HLBB offer the nod
EONCap’s shareholders had approved all the proposed resolutions, including the proposed divestment of the group’s banking operations for RM5.06bn cash, or RM7.30 per share to HLBB. However, another stumbling block is ahead for HLBB – the pending lawsuit filed by substantial shareholder, Primus Pacific Partners, against the existing board of directors. (FinancialDaily))

SunCity steps up presence in Penang, plans RM800m property project
Sunway City (Suncity) is boosting its presence in Penang and plans to undertake a residential property project in the southwest district of Penang island with an estimated gross development value of RM800m. Suncity said yesterday that its unit, Sunway City (Penang) SB, had entered into a sale and purchase agreement with Sungai Ara Holdings SB to acquire 32.78ha of freehold land for RM38.76m for residential property development. (Financial Daily)

Kimlun awarded RM64.8m for the construction of 25-storey service apartments
Kimlun announced yesterday that its wholly-owned subsidiary, Kimlun SB, yesterday received the letter of award for the contract sum of RM64.8m from Bukit Indah (Johor) SB, a wholly owned subsidiary of SP Setia, for the construction of Main Building Works for 2 blocks of 25-storey service apartments and ancillary buildings at Bukit Indah, Bandar Nusajaya, Mukim Pulai, daerah Johor Bahru, Johor. The scope of works comprises building construction works for the service apartments and ancillary buildings, which will be due to be completed by September 2012. (BursaMalaysia)  

Aerospace: Mida completes talks with Pratt & Whitney.   The Malaysian Investment Development Authority (Mida) has concluded negotiations with Pratt & Whitney for the American aircraft engine maker to set up shop here, its director-general Datuk Jalilah Baba says. "Pratt & Whitney is seriously looking at having a base in Malaysia." Locally, it has a USD680m (RM2.1b) deal with national carrier Malaysia Airlines  to provide 34 engines for 17 of the airline's new Airbus aircraft. "They will come here. We are also talking to several other aerospace-related companies," Jalilah said. (Source: Business Times)

Khazanah: Ties up with Camco.  Khazanah will acquire 9.28m ordinary of Camco shares at 20 pence (98 sen) each, and in turn, form a joint venture with Camco to expand carbon-trading operations in Asia. Shares in the London, UK-based manager of emission-reduction projects jumped 41% to 20.5 pence (RM1) as of 8.36am local time, the highest price since December 29 last year. The purchase will give Khazanah a 5.3% stake in the company. The joint venture will be capitalised with as much as USD46m (RM142m) to invest in the emissions-to-energy market in Southeast Asia. (Source: Business Times)

MAS: Sees 40% rise in capacity for India flights.  Malaysia Airlines (MAS) is looking at 40% capacity increase next year for flights from Indian cities, based on growing demand from business and leisure travellers. MAS plans to leverage on the delivery of new planes and increased frequencies of flights to support the projected growth, MAS' regional manager for South Asia operations Azahar Hamid said. (Source: Business Times)

Plantation: New clone unveiled.  A new oil palm clone dubbed the Wakuba oil palm ramet was launched with a promise of doubling the current oil yield. Named after TSH Resources Bhd unit TSH Biotech Sdn Bhd's 5-year old tissue-culture laboratory in Wakuba Gading, Tawau, Sabah, the new clone promises an oil yield of up to 10 tonnes per ha compared to average current yield of about 4.5 tonnes per ha in the country. TSH Resources chairman Datuk Kelvin Tan said the company had invested RM25m in the laboratory, which is expected to produce 1.5m ramets by 2015 compared with 500,000 this year. (Source: The Star)

Plenitude: To buy Penang land.  Plenitude Bhd's wholly owned unit, Plenitude Estates Sdn Bhd, has agreed to buy 21.3ha of freehold land in Balik Pulau, Penang, from United Formula Sdn Bhd and Affluent Base Sdn Bhd for RM40.1m. The land is earmarked for mixed development that includes double-storey and super-link houses as well as 2-3 storey shops with an estimated gross development value of RM230m. (Source: Business Times)

REDtone: To submit 4G business plan soon.  REDtone International Bhd plans to submit a detailed business plan to the Malaysian Communications and Multimedia Commission soon on how it plans to use new bandwidth that allows even faster services than what's available now. (Source: Business Times)

20100928 1108 Global Market News.

OIL: Crude tracks equities lower as dollar strengthens
SINGAPORE, Sept 28 (Reuters) - Oil fell towards $76 on Tuesday, tracking Asian equities lower on lingering concerns about euro-zone debt, which also boosted the dollar.
U.S. crude oil stockpiles probably fell by 400,000 barrels last week on lower imports as seasonal refinery maintenance slowed demand, a preliminary Reuters poll of analysts showed on Monday, ahead of weekly inventory reports Tuesday and Wednesday.

COMMODITY MARKETS: Gold, sugar rally; wheat leads losses in grains
NEW YORK, Sept 27 (Reuters) - Gold touched another record high on Monday before finishing flat in thin trade, and oil and a few other commodities also ended little changed or softer after being weighed down by equities and directionless trade.
"Most complexes show prices stuck in tight trading ranges, with little indication that they will break out one way or another," Edward Meir, senior commodities analyst at MF Global in New York, wrote in a commentary on oil.

GLOBAL MARKETS: Gold, bonds soar on debt woes, Fed speculation
NEW YORK, Sept 27 (Reuters) - Gold hit a record high of $1,300 per ounce and U.S. Treasury prices surged on Monday on renewed worries about euro-zone debt and expectations the Federal Reserve will further ease monetary policy.
"The euro right now is being pulled in a tug of war between the sovereign debt crisis still existing in the euro zone versus the prospect of a very serious QE2 (another round of quantitative easing) out of the U.S.," said Boris Schlossberg, director of FX research at GFT in New York.

PRECIOUS-Gold hits record at $1,300; silver at 30-year high
LONDON, Sept 27 (Reuters) - Gold powered to hit a record high at $1,300 an ounce as investors poured money into bullion on fears of looming inflationary pressures as well as worries about the health of the global economy.
Silver, often considered the poor man's gold, rose to a 30-year high as investors chased a cheaper alternative. The metal has gained nearly 30 percent this year, catching up with gold.

World stocks near 5-month high, M&A lifts mood
LONDON, Sept 27 (Reuters) - World stocks hit their highest level in nearly five months on Monday while oil prices rose as growing corporate merger activity and last week's upbeat U.S. economic data encouraged investors to buy risky assets.
Unilever has agreed to buy U.S.-based hair care firm Alberto Culver for $3.7 billion in cash. A source said China's Bright Food Group is exploring the purchase of Britain's United Biscuits in a possible $3.2 billion deal.

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."

20100928 1107 Soy Oil & Palm Oil Related News.

Soy product futures ended mixed, with soyoil climbing at the expense of soymeal on fears of tightening global vegoil supplies. The soyoil market also garnered support from a strong export demand base, analysts said. Soymeal slipped lower on oil/meal spreading. December soyoil settled 0.08 cents or 0.2% higher at 44.97 cents per pound. December soymeal ended $1.30 or 0.4% lower at $315.70 per short ton.(Source:CME)

Malaysia, Indonesia Palm Oil Output To Expand By 2.5M Tons In 2010-11 - Analyst (Source:CME)
Palm oil production growth in Malaysia and Indonesia, the world's top producers of the commodity, may expand by 2.5 million metric tons during the calendar year 2010-2011, as widespread rain will boost palm yields and as the lower palm production period ends, vegetable oils analyst Dorab Mistry said. "The biological low cycle will come to an end around June 2011 and the higher cycle should coincide with the beneficial after-effects of good rainfall in 2010," Mistry, director at Godrej International Ltd., said in a speech prepared for an industry conference in Mumbai, India. Mistry reiterated his forecast for Malaysian crude palm oil output this year, saying that an El Nino-related dry spell late last year will likely cut production by 2.3% to around 17.2 million tons, as the two-month dry spell caused tree stress and lowered crop yields. He estimated Indonesia's palm oil production in 2010 to reach 22.5 million from 22 million tons last year.
Mistry said palm prices are likely to trade lower the next four to six weeks, as he predicted a strong recovery in CPO production, which "will spillover into November. Malaysia's month-end stocks will rise and prices will need to go lower." Malaysia's September CPO output is likely to grow at a slower pace, as harvesting was disrupted when workers headed home for the Eid ul-Fitr celebrations earlier this month, traders said. "We could lose about MYR150-MYR200...After that weak spell, prices should begin to recover as exports remain strong," Mistry said, as major vegetable oil buyers India and China restock supplies, tipping prices to rally to MYR3,000-MYR3,200/ton by January next year. He also said global soyoil production for 2010-2011 period is projected to increase by about 2.1 million tons, Mistry said, citing higher rate of crushing and ample supply of global soybeans.
Rival soyoil prices will likely rise to rise sharply, to $1,050 a ton free-on-board Argentina ports by January, he said, widening the gap between soy oil and palm oil, making the latter a cheaper alternative to price-sensitive buyers. CPO usually trades a wide discount to soyoil, but a record crop of soybeans from South America this year and a likely record harvest from the U.S. even as palm production slowed, has pushed it into a narrow discount around $10-$20/ton the last few months.

Soy at 13-month top; corn, wheat rise on weak dollar
SINGAPORE, Sept 27 (Reuters) - Chicago soy futures climbed to a 13-month top on Monday, rising nearly 1 percent, while corn scaled a new 2-year peak as a weak dollar and tight supplies continued to buoy the grain market.
Soybeans gained additional strength from a rally in Asian vegetable oil markets, led by China's Dalian futures, estimates of sowing falling in the United States next year and dry weather hurting prospects of soon to be planted South American crops.

Climb on China, weather; palm at highest since May 2009
JAKARTA/KUALA LUMPUR, Sept 27 (Reuters) - Malaysian palm oil hit its highest level since May 2009 and other global vegetable oil markets rallied on Monday as traders bet on top buyers China and India snapping up more cargoes in the months to come.
An industry conference in Mumbai forecast that India will buy a record amount of vegetable oil in the new marketing year and China's Ministry of Commerce revised up its estimate for September soy imports.

China MofCom ups Sept soy import est to 4.9 mln T
BEIJING, Sept 27 (Reuters) - China's commerce ministry has revised up its estimate for soy imports in September to 4.9 million tonnes, the second largest level ever, lifted from an earlier estimate of 4.7 million tonnes.
Cheap South American soy imports, coupled with a capacity expansion, led soy plants to book more of the oilseed after record imports of 6.2 million tonnes in June.

Palm oil to rise by Jan after weak Oct-Mistry
MUMBAI, Sept 26 (Reuters) - Malaysian crude palm oil futures  could rise at least 11 percent to 3,000-3,200 ringitt per tonne by January as demand strengthens but prices may weaken slightly next month as output and stocks rise, top analyst Dorab Mistry said.
Crude palm oil production would recover in October and Malaysia's month-end stocks would swell, he said on Sunday, suggesting that Malaysia's benchmark palm oil futures, which closed at 2,701 ringgit ($871.8) on Friday, would weaken.

Soyoil, biofuels may lift crude palm oil - Mielke
MUMBAI, Sept 25 (Reuters) - Robust biofuel demand and firm soyoil prices may lift crude palm oil (CPO) prices by 11 percent to 3,000 ringgits per tonne in five months, a top industry analyst said on Saturday.
On Friday, Malaysia's benchmark palm oil futures  rose by more than 1 percent to close at 2,701 ringgit ($871.8).