20101103 1828 FCPO EOD Daily Chart Study.

FCPO closed : 3087, changed : -3 points, volume : higher.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : weakening, buyer realising profit.
Support : 3070, 3050, 3020 level.
Resistant : 3100, 3150, 3200 level.
Comment :
Directionless FCPO traded within a small 23 points range bound market recorded small declined as market awaits US Federal Reserve policy decision announcement that will affect US Dollar movement plus market seems over concerns on Malaysia weather issue that has yet to hit major palm oil plantation states. Daily chart formed the 4th doji bar candle traded range bound in consolidation phase as market is likely to be quiet tomorrow doing correction range bound upside biased ahead of this weekend 5th China International Oils and Oilseeds Conference at Guang Zhou.
When to buy : buy at support and weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20101103 1745 FKLI EOD Daily Chart Study.

FKLI closed : 1510, changed : +2 points,  volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : reverse lower, buyer in control.
Support : 1500, 1485, 1470 level.
Resistant : 1530, 1550, 1580 level.
Comment :
Quiet volume transaction FKLI edge up slightly recorded marginal gain after market traded range bound tested previous high and retreat within a 6 points range market. Trading participation is relatively low probably due to traders choose to stay sideline awaits tomorrow Batu Sapi & Galas by-elections result plus a longer holiday weekend. Daily chart formed a graveyard doji bar candle with tested upper Bollinger band resistant level with the reading call for a correction range bound 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.

20101103 1510 Breaking News. UEM Land & Sunrise.

KUALA LUMPUR (Dow Jones)--Malaysian property firms UEM Land Holdings Bhd. (5148.KU) and Sunrise Bhd. (6165.KU) plan to merge their operations via an exchange of shares, a move that will allow both firms to capitalize on the expected growth in the real estate sector. A person familiar with the deal told Dow Jones Newswires that UEM Land, owned by state-controlled UEM Group, and Sunrise-- a developer of high-end real estate in Kuala Lumpur--plan to sign a share exchange agreement that will be announced tomorrow. He declined to provide further details of the transaction.

20101103 1052 Local & Global Economics News.

Malaysia: Malaysia-EU FTA set to be concluded by 2012
The Malaysia-European Free Trade Agreement (FTA) is set to be concluded by 2012, said EU Ambassador and head of delegation to Malaysia, Vincent Piket. He said the first round of the FTA meeting was scheduled for 6-9 Dec in Brussels, Belgium, while at the same time the Partnership and Cooperation Agreement (PCA) talks will be held at Putrajaya. (StarBiz)

India: Central bank raises rates for sixth time this year
India’s central bank raised interest rates for a sixth time this year in Asia’s fastest round of increases to cool inflation and said further monetary policy tightening in the “immediate future is relatively low.” The Reserve Bank of India boosted the repurchase rate by a quarter-point to 6.25% and the reverse repurchase rate by a similar margin to 5.25% with immediate effect, according to a statement in Mumbai. Fifteen of 23 economists had predicted the decision in a Bloomberg News survey. (Bloomberg)

China: Third-quarter yuan settlement almost triples
Trade settlement in the Chinese yuan in the third quarter almost tripled from the previous period as overseas demand for conducting transactions in the currency surged. Total trade settled using the Chinese currency was RMB126.5bn (USD18.9bn) in the July-to-September period, the People’s Bank of China said in a statement. That compares with RMB48.7bn in the previous three months, according to Bloomberg data. (Bloomberg)

Australia: Raises interest rate to 4.75%, ending 5-month pause
The Reserve Bank of Australia unexpectedly increased its benchmark interest rate on concern stronger growth will cause inflation to accelerate, driving the nation’s currency to parity with the US dollar. Governor Glenn Stevens raised the overnight cash rate target a quarter point to 4.75% in Sydney, saying the economy has “relatively modest amounts of spare capacity” and citing risk of “inflation rising again over the medium term.” (Bloomberg)

EU: Output growth quickens more than estimated
Europe’s manufacturing industries expanded at a faster pace in October than initially estimated as export demand strengthened. A gauge of manufacturing in the 16-nation euro region rose to 54.6 from 53.7 in the previous month, London-based Markit Economics said. It had previously reported an increase to 54.1 in October. A reading above 50 indicates expansion. (Bloomberg)

US: Manufacturing expands to five-month high
Manufacturing in the United States expanded in October at the fastest pace in five months as measures of production and orders placed with factories increased. The Institute for Supply Management’s (ISM) factory index increased to 56.9 from 54.4, the group said. (StarBiz)

US: Homeownership at decade low as foreclosures rise
The US homeownership rate was unchanged at a 10-year low in the third quarter as banks stepped up property seizures from borrowers who defaulted on mortgages. The homeownership rate was 66.9%, matching the second-quarter level that was the lowest since 1999, the US Census Bureau said. The homeowner vacancy rate, or the share of properties vacant and for sale, was unchanged at 2.5%, according to the report. (Bloomberg)

20101103 1051 Malaysia Corporate News.

Boustead to raise RM1bn
Boustead Holdings plans to raise up to RM1bn from borrowings to fund its purchase of Pharmaniaga, buy more land in the Klang Valley, and refinance existing debt. The group, controlled by Lembaga Tabung Angkatan Tentera, is selling seven-year medium-term notes that carry an indicative long-term rating of AAA, the highest for credit quality, from Malaysian Rating Corp. Boustead hopes to seal the land deal by the end of this year. Although Lodin did not reveal the location of the land, speculation is that it may be on the verge of buying a piece of prime land on Jalan Cochrane, Kuala Lumpur. The group is bullish on the property market. (BT)

Proton to price first hybrid below RM100,000
Proton Holdings is looking to offer its first hybrid car at a competitive price of below RM100,000, adviser Tun Dr Mahathir Mohamad said yesterday. The national carmaker is said to be developing hybrid as well as electric engines with British company Frazer-Nash Research, South Korea's LG and Proton subsidiary Lotus. Dr Mahathir said the development of hybrid cars, expected to be commercially launched next year, was part of Proton's initiative to move into green technology. (Bernama)

Mulpha rises on news Down Under
Mulpha International’s associate company FKP Property Group is touted as a possible takeover target once again. And this time, the acquiree could be Stockland, a substantial holder of FKP. Down Under, speculation is rife that Stockland, a leading Australian property developer, may seek to acquire FKP after the former sold out of rival GPT Group recently. The divestment would enable Stockland to have capital to scout for acquisition opportunities that fit well its existing business. (Financial Daily)

Uzma subsidiary bags another O&G contract
Uzma’s subsidiary has secured a RM15m contract from an oil and gas company for addition and extension of the Low Pressure System. The contract would include the supply of equipment, manpower and consultancy. The contract extension is for two existing LPS units and to supply an additional new LPS unit. The period for the LPS units under the contract was increased from three to five months, effective from November 2010 to March 2011. (Financial Daily)

Tenaga agrees to purchase electricity from KUB-Berjaya
Tenaga Nasional has agreed to purchase electricity from KUB-Berjaya Energy for a period of 21 years at an estimated cost of RM1.84m annually. Both parties yesterday signed a renewable energy power purchase agreement whereby TNB would purchase the electricity generated by a small renewable energy power project developed by KUB-Berjaya Energy, under the very small renewable energy power programme. The programme was launched by the Government in May 2001 to promote the utilisation of renewable energy in power generation and to reduce emission of greenhouse gases. (Bernama)

PCG may invest US$1bn in facility
Petronas Chemicals Group (PCG) may invest up to US$1bn in a greenfield ammonia and urea production facility in Sabah to enhance its profile as a key ammonia and urea producer in South-East Asia, said its top executive. PCG chairman Datuk Wan Zulkiflee Wan Ariffin said the project was currently at a pre-feasibility study phase and PCG would make a final investment decision in financial year 2012. (StarBiz) 

20101103 0855 Global Market News.

Nov. 3 (Bloomberg) -

- Asian stocks rose for a third day after Westpac Banking Corp.’s earnings surged, commodity prices rose and Deutsche Bank AG raised its estimate for South Korea’s Kospi index. Westpac, Australia’s second-largest bank, advanced 1 percent after second-half profit almost tripled. BHP Billiton Ltd., the world’s biggest mining company, added 0.8 percent as oil and metal prices climbed in New York yesterday. Korea Zinc Co. gained 0.8 percent in Seoul.

OIL: Oil jumps to fresh 6-mth high; U.S. inventories tumble
SINGAPORE, Nov 3 (Reuters) - Oil rose to a six-month high above $84 for a second straight session after an industry report showed declines in U.S. inventories across fuel categories, a sign chronic oversupply is subsiding at the world's top user.
U.S. crude inventories fell by 4.1 million barrels in the week to Oct. 29, the American Petroleum Institute (API) reported on Tuesday. That compared with expectations for a 1.2 million barrel increase.

COMMODITY MARKETS: Dollar slide sparks rally as Fed outcome nears
NEW YORK, Nov 2 (Reuters) - Commodities rose on Tuesday, extending this week's runup with oil, copper and sugar rallying sharply and cotton hitting record peaks as the dollar fell on the eve of a Federal Reserve decision on U.S. monetary easing.
Crude oil rose to six-month highs, copper neared a two-year peak and sugar raced toward 30-year highs, sending the 19-commodity Reuters-Jefferies CRB index up more than 1 percent to levels not seen since October 2008.

GLOBAL MARKETS: Stocks and oil rally; dollar falls as Fed meets
NEW YORK, Nov 2 (Reuters) - World stocks neared a two-year high on Tuesday on stronger-than-expected economic data while the dollar fell as investors anticipated the U.S. central bank will open the money spigot to spur the flagging U.S. economy.
"I think it is people trying to get in front of what they think will be the election results," said Rick Meckler, president of investment firm LibertyView Capital Management in New York, in reference to expectations of Republicans' gains.

U.S. corn, wheat rise on dollar, crop concerns
SINGAPORE, Nov 2 (Reuters) - U.S. corn futures rose half a percent on Tuesday to trade near 26-month highs, while wheat ticked higher as a weaker dollar supported commodities but investors were cautious ahead of a Federal Reserve meeting and U.S. elections.
"The key drivers will be developments out of the United States which will be critical for setting direction for agriculture and risk assets more broadly," said Luke Mathews, commodity strategist at Commonwealth Bank of Australia.

Asian shares edge up, dlr steady before Fed
SINGAPORE, Nov 2 (Reuters) - Asian stocks edged up after an early fall while the dollar kept a tenuous grip on overnight gains in Asia on Tuesday ahead of U.S. elections and a Federal Reserve meeting that is expected to ease monetary policy.
"The market is of course cautious until it sees the outcome of the Fed meeting and the U.S. election, but Japanese stocks are being pressured more by selling from real money investors," said Hiroaki Kuramochi, chief equity marketing officer at Tokai Tokyo Securities.

PRECIOUS-Gold rises towards $1,360/oz ahead of Fed
LONDON, Nov 2 (Reuters) - Gold firmed in Europe on Tuesday, climbing back towards the previous session's near two-week high, as the dollar retreated ahead of a hotly anticipated policy meeting of the U.S. Federal Reserve starting later in the day.
At the two-day meet in Washington, the Fed will consider the prospect of further quantitative easing. Markets are pricing in a commitment to buy at least $500 billion in Treasury debt over the coming months to spur a flagging economy.

FOREX-Aussie hits highest since 1983 vs dollar post-RBA
LONDON, Nov 2 (Reuters) - The Australian dollar hit its highest against the dollar since 1983 on Tuesday after a surprise Australian interest rate hike, while the U.S. currency stayed weak on expectations of fresh monetary easing.
The Reserve Bank of Australia raised its cash rate by 25 basis points to 4.75 percent as a pre-emptive strike against inflation, sending the Aussie above parity to $1.0013, its highest since the currency was floated in 1983.

20101103 0851 Soy Oil & Palm Oil Related News.

Soy product futures inched lower in choppy trade, as prices consolidated in unison with price action in soybeans. The absence of fresh demand news allowed futures to retreat from initial gains in step with beans. December soyoil settled 0.12 cents or 0.2% lower at 49.63 cents a pound. December soymeal ended $0.10 or 0.03% lower at $337.70 a short ton. (Source: CME)

FAO Food Index Hits 27-Month High On Cereals, Soybeans (Source: CME)
The United Nations Food and Agriculture Organization Tuesday revised up its monthly food price index to a 27-month high due to increases in global cereals, sugar and soybean prices. The index now stands at 197.13, up 4.4% from September and the highest since July 2008. Dry weather in the U.S., lower-than-expected corn yields, China's voracious demand for soybeans and tight sugar inventories have helped to push up prices of agricultural commodities across the board, and they are unlikely to ease this month. The FAO index is a monthly measure of changes in international prices of a basket of commodities and is closely tracked by analysts and investors as a global benchmark for food price trends.
The FAO food price index is inching towards the record high of 213.5, reached in June 2008. Adverse weather, either too dry or too wet, has affected major producers and exporters around the world, from Russia and Ukraine to Canada and the U.S., Germany, Australia, Pakistan and Southeast Asia. The Cereals Price Index rose to a 25-month high of 219, up 5.1% from August, and the Sugar Price Index was up 8.4% to a record 344.6. The Oils and Fats prices index rose 10% to 217.5. The chances of the Food Price Index declining in November aren't very good due to concerns over the dry weather in the U.S. and planting patterns in Russia, said Abdolreza Abbassian, secretary of the FAO's Intergovernmental Group for Grains.
Private forecasters are indicating that U.S. corn production estimate for 2010-11 may be revised lower again as actual yields could be below current projections, he said. In October, the U.S. Department of Agriculture revised the country's corn output estimates down sharply to 321.7 million tons from 334 million tons. The next monthly report is due next week. The U.S. is the world's largest exporter of corn. Another cause of worry is that the farmers in Russia may switch over to planting oilseeds due to government restrictions on exports of grains, Abbassian said. There is strong domestic demand for wheat, but if a switch towards planting oilseeds happens, global wheat prices could go up further, he said.

Palm oil above 3,100 rgt on weather, crude oil
KUALA LUMPUR, Nov 2 (Reuters) - Malaysian palm oil futures hit a new 27-month high on Tuesday and breached a key 3,100 ringgit level on concerns a strong monsoon season will hit yields and on support from higher crude oil.
"Palm oil is continuing its upward trend on market talk that the monsoon season for October to December may be worse than expected because of La Nina," said a trader with a foreign commodities brokerage.

China MofCom ups Oct soy imports to 4.5 mln T
BEIJING, Nov 2 (Reuters) - - China's commerce ministry has revised upwards its estimate for October soy imports to 4.5 million tonnes, from earlier estimate of 4.15 million tonnes.
The ministry said on Tuesday it expects the world's largest soy importer to bring in 4.6 million tonnes of the oilseed in November.

FC Stone lowers estimates of U.S. corn, soy crops
CHICAGO, Nov 1 (Reuters) - Commodity brokerage firm FC Stone said on Monday it cut its estimate of the U.S. 2010 corn crop to 12.523 billion bushels, with an average yield of 154.1 bushels per acre.
The figures were down from Stone's October corn production estimate of 12.891 billion, with a yield of 159.2 bpa.

Brazil planted soy area jumps to 29 pct - Celeres
SAO PAULO, Nov 1 (Reuters) - Planting of Brazil's 2010/11 (Sept/Aug) soybean crop climbed to 29 percent of the expected area by Oct. 29, down from the 35 percent planted a year ago but ahead of historical planting rates for this time of year, grain analysts Celeres said on Monday.
Growers in the world's No.2 soybean producer after the United States have struggled with late rains in the early planting center-west. Overall, the country managed to make a 12 percentage point jump from the 17 percent planted the prior week.

Malaysia's Kulim 2010 profit to grow on palm
KUALA LUMPUR, Nov 2 (Reuters) - Malaysian planter Kulim  expects profits for FY 2010 to be "much higher" than last year's 146 million ringgit ($47.17 million), driven by its expansion into Papua New Guinea (PNG) and a rally in palm oil prices.
Profits ending Dec. 31 would also benefit from the sale of an oleochemical plant to Singapore's Wilmar  for $140 million, Kulim's Chief Operating Officer Zulkifli Ibrahim told Reuters in an interview on Tuesday.