20101005 1841 FCPO EOD Daily Chart Study.

FCPO closed : 2705, changed : +39 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : getting lower, seller taking small exposure.
Support : 2700, 2670, 2650 level.
Resistant : 2720, 2750, 2770 level.
Comment :
FCPO rebounded higher recorded gain with slower volume participation following a price rebounding world major commodities market plus a weaker US Dollar. Daily chart formed a wide range up bar candle closed breaking above middle Bollinger band with a remained unchanged side way range bound market reading with MACD negative divergence crossed down.
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.

20101005 1827 FKLI EOD Daily Chart Study.

FKLI last looked : 1475.5, changed : +11 points, volume : lower.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : recovering, buyer holding on.
Support : 1470, 1458, 1445 level.
Resistant : 1485, 1500, 1530 level.
Comment :
FKLI climbed higher recorded gain in thin volume trading still after opened gap up and tested higher despite a negative overnight US market. Daily chart wise market seems support well by the middle Bollinger band level  with an intact uptrend side way range little 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.

20101005 0934 Global Economics News.

Japan: Wages fail to rise for first time in six months
Japan’s wages unexpectedly stagnated in August, failing to rise for the first time in six months, adding to concern the country’s consumers won’t be able to drive growth in place of slowing demand abroad. Monthly wages including overtime and bonuses were unchanged from a year earlier at JPY 274,232 (USD 3,288), the Labor Ministry said. Barclays Capital had projected a 0.6% annual advance in pay, while Bank of America Merrill Lynch had forecast a 1% gain. (Bloomberg)

EU: European producer-price inflation slows on Euro gain
European producer-price inflation slowed in August as a stronger euro helped offset higher costs for energy as the economy cooled. Factory-gate prices in the 16-nation euro region rose 3.6% from a year earlier after increasing 4% in July. That’s in line with the median estimate of 18 economists in a Bloomberg News survey. Prices advanced 0.1% from July, when they increased 0.2%. The euro has strengthened 9.5% against the dollar over the past three months, making imports such as crude oil more affordable just as the euro-area recovery weakens. (Bloomberg)

EU: ECB steps up bond purchases, buys the most in over three months
The European Central Bank stepped up its government bond purchases last week, buying the most in more than three months to calm bond markets. The central bank said it bought EUR 1.38 bn (USD 1.9 bn) of bonds last week, up from EUR 134 m the previous week. The ECB will take term deposits tomorrow to mop up EUR 63.5 bn of liquidity created by bond purchases settled up to last week. The ECB began the bond-purchase program on May 10 to stabilize markets rocked by Greece’s fiscal crisis. (Bloomberg)

Australia: Service industry shrinks at fastest pace in 14 months
Australia’s services industry contracted last month at the fastest pace in more than a year as demand weakened for communications and financial products. The performance of services index fell 1.9 points to 45.6 in September, the lowest level since July 2009, suggesting that the central bank’s six interest- rate increases from Oct 2009 to May are cooling domestic demand even as a record mining investment boom drives down unemployment. A figure below 50 indicates the industry is contracting. Australia will decide today whether higher interest rates are needed. (Bloomberg)

US: Goods orders and pending home sales rise
Orders for US capital goods rebounded in August and pending sales of existing homes climbed for a second month, showing the recovery is stabilizing after a second-quarter slowdown. Bookings for non-military capital goods excluding planes increased 5.1%, the biggest gain since March. The number of contracts to buy previously owned houses rose 4.3%, topping the median forecast of economists surveyed by Bloomberg News. Home sales are steadying after plunging in the months following the expiration of a housing tax credit, while the need to update equipment and growing demand from overseas will help manufacturing hold up. (Bloomberg)

20101005 0933 Malaysia Corporate News.

Petronas drums up 60% profit on higher oil prices
National oil company Petroliam Nasional (Petronas), expects to record better performance for its FYE 31 March 2011, although it expects a dip in a the 2H earnings. The company recorded a stellar 59.7% growth in net profit to RM12.3bn for its first quarter ended 30 June 2010, on track of recovering oil prices. Its revenue for the quarter ended 30 June 2010, increased by 26.3% to RM58.6bn due to enhanced operational efficiencies and cost optimization initiatives, its executive vice president of finance, Datuk George Ratilal said. (Malaysian Reserve)

MMC confirms UEM bid, awaiting government decision
MMC Corp yesterday said that it had submitted a preliminary proposal to the federal government to acquire UEM Group but had yet to receive “any indication” from the government on its proposal. “MMC will lead a consortium for the proposed acquisition and to date, we have not approached the EPF and/or PNB to be our partners,” MMC said in a reply to a query by Bursa Malaysia. It was reported that MMC had plans to lead the consortium with a 40% stake while EPF and PNB would hold 30% each. MMC is understood to have submitted its proposal to the Ministry of Finance in August. (Financial Daily)

Kencana scores two new contracts
Kencana Petroleum announced yesterday it bagged two new contracts worth a total of RM30.7m. The company said that its wholly owned unit Kencana HL SB has secured a RM21.6m contract from Newfield Peninsula Malaysia Inc for the provision of procurement and construction of jackets foe wellhead platform and central processing platform for the PM329 East Piatu Development Project, off peninsular Malaysia. Meanwhile , its other 100% owned subsidiary Kencana Torsco SB secured a RM9.1m contract from Lynas Malaysia SB. Meanwhile, Kencana denied that it or any of its subsidiaries have any intention to take over Labuan Shipyard & Engineering SB and neither has there been any talk between the two parties or any relevant authorities on any takeover of Labuan Shipyard by Kencana. (Financial Daily)

UMW drills down RM771m rigs contract extension
UMW Holdings has secured a contract extension worth USD250m (RM771.25m) to provide drilling rigs to Petronas Carigali SB. The five-year contract extension will start once UMW completes its present contract at the end of 2010, which involves drilling operations on 20 firm wells with its semi-submersible drilling rig dubbed Naga 1. The additional wells will be stipulated by Petronas Carigali during the contract duration, UMW said a filing to Bursa Malaysia yesterday. (Malaysian Reserve)

Primus files fresh suit against EON Cap
Primus (M) SB, which is embroiled in a court fight over the sale of EON Capital (EON Cap) to Hong Leong Bank (HLG), yesterday initiated fresh a legal action to declare the recent EON Cap EGM is a null and void. EON Cap said Primus was seeking an order restraining the company, its servants, agents or whomsoever, from implementing or giving effect to any such resolution passed at the 27 Sept EGM. During the EGM, EON Cap shareholders approved the sale of EON Cap assets and liabilities to HLB for RM5.06bn or RM7.30 per share. (StarBiz)

Kump Jetson execs redesignated
Kumpulan Jetson chairman and executive director SM Nasarudin SM Nasimuddin and vice chairman SM Faliq SM Nasimuddin have been redesignated as the company’s non-executive directors. Kumpulan Jetson said it had received resignation letters from both SM Nasarudin and SM Faliq yesterday, but it did not reveal the reasons for the resignation. It was speculated that both Nasaruddin and younger brother Faliq would exit the company soon by selling their 33% stake. (BT) 

20101005 0929 Global Market News.

OIL: Crude steady on mixed forecast for U.S. inventories
SINGAPORE, Oct 5 (Reuters) - Oil was steady on Tuesday as forecasts called for gains in U.S. crude and gasoline inventories, while winter fuel stocks likely dropped last week.  U.S. crude oil inventories rose last week by 600,000 barrels as imports rebounded and refinery demand fell, with the industry stepping up seasonal maintenance, a preliminary Reuters poll ahead of weekly inventory reports showed on Monday. 

GLOBAL MARKETS: Dollar recoups on euro-zone woes, Treasuries up
NEW YORK, Oct 4 (Reuters) - The U.S. dollar gained broadly on Monday on lingering concerns about euro-zone debt, while speculation of further monetary easing by the U.S. Federal Reserve boosted Treasuries prices.
"The euro has come a very long way in a very short period of time, and certainly Ireland and the peripheral euro zone country issues have not gone away," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange Inc in Washington. When those issues "come back in the spotlight, they are used to take some profits on the euro."

PRECIOUS-Gold near record highs, eyes fresh dollar weakness
LONDON, Oct 4 (Reuters) - Gold prices firmed in Europe on Monday as investors continued to fret about the outlook for the dollar amid speculation of further U.S. monetary easing, but a slight rebound in the U.S. unit kept a lid on fresh gains.
"Gold is stalling near Friday's highs again, (with) a small dollar rebound this morning limiting the upside," said Andrey Kryuchenkov, an analyst at VTB Capital. "(It) will continue here ahead of U.S. data."

FOREX-Dollar edges up as bets on weakness look crowded
LONDON, Oct 4 (Reuters) - The dollar rose on Monday, recovering earlier losses as traders cut bets the currency will weaken, which have been piling up on speculation the Federal Reserve may further ease U.S. monetary easing.
"The market has a substantial short dollar position and when you're going into a big data week, you wonder whether the positioning risk is worth it at this juncture," said Paul Mackel, director of currency strategy at HSBC.

World stocks, oil slip; EM buoyant
LONDON, Oct 4 (Reuters) - Equity markets in developed economies fell across the board as investors remained wary of an economic slowdown, while stocks in buoyant emerging market economies hit their highest since June 2008.
"On the one hand people are very nervous about the economy, but on the other hand you don't want to be too negative and too short either because you know that (Federal Reserve Chairman Ben) Bernanke is there," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels.

20101005 0928 Soy Oil & Palm Oil Related News.

Soy product futures ended mixed, with soymeal gaining product value share on spreads. Stability in corn futures a competing feed with meal buoyed soymeal and enticed traders into unwinding some newly established soyoil/soymeal spreads, analysts said. December soyoil settled 0.38 cents or 0.9% lower at 43.45 cents per pound. December soymeal ended $2.40 or 0.8% higher at $292.30 per short ton.(Source: CME)

Brazil Soy Output Seen At 69.1M Metric Tons In 2010-11 - Celeres(Source: CME)
Brazil is estimated to produce a record 69.1 million metric tons of soybeans for the 2010-11 crop season, local agricultural consultancy Celeres said in a weekly report. Celeres said in its crop estimate for the upcoming 2010-11 season that Brazil's soy output was 0.9% higher than 68.5 million tons in the 2009-10 season. Rains in late September have temporarily eased concerns about the negative impact of a prolonged dry spell in key growing regions, but farmers still remain concerned about the level of moisture in the soil, Celeres said.
Celeres also hiked its previous crop estimate by 1.8% for Brazil, the world's No. 2 soy producer after the U.S., for the crop that is just beginning to be planted. Brazil should see 23.6 million hectares of land devoted to growing soy in 2010-11, up 1.2% from 2009-10, Celeres said. Output and planted area are set to increase as farmers opt to sow more soy than rival crops such as corn or cotton. Farmers are expected to see an average production of 2,926 kilograms per hectare, down 0.4% from the previous crop season when growing conditions when viewed as highly favorable, the report said.

Weak grain markets drag palm oil to two-wk lows
KUALA LUMPUR, Oct 4 (Reuters) - Global vegetable oil markets fell sharply, infected by a sell-off in grains markets after a report of larger-than-expected U.S. corn stockpiles.
"The drop in Malaysia palm oil could be a one day effect as the market is still supportive," said a trader with foreign brokerage in Kuala Lumpur.

Argentina may change seed law to promote new GM soy
BUENOS AIRES, Oct 1 (Reuters) - Argentina's government is considering reforming the country's seed law in a bid to foster use of new varieties of genetically modified (GM) soybeans and boost output in the world's No. 3 soy supplier.
The bill, which has not yet been sent to Congress, has been drawn up in consultation with seed companies and should reduce the risk of disputes like the one Argentina sustained for years with Monsanto  over Roundup Ready-resistant soy.