20101108 1839 FCPO EOD Daily Chart Study.

FCPO closed : 3273, changed : +82 points, volume : lower.
Bollinger band reading : upside biased with possible correction.
MACD Histrogram : rising higher, buyer still rule.
Support : 3270, 3200, 3150 level.
Resistant : 3300, 3350, 3420 level.
Comment :
FCPO rallied for the second day recorded huge gain in slightly lower volume traded after market opened gap up and tested higher ground followed by buyer decision to sealed in profit pressed price to closed off the high of the day. Daily chart formed a shooting star doji bar candle positioned way above upper Bollinger band level as the band width continue to expand outwards hinted a potential pullback correction within an upside biased market reading. Meanwhile, soy oil and crude oil futures price are currently trading lower as US Dollar rebounding higher.
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.

20101108 1823 FKLI EOD Daily Chart Study.

FKLI closed : 1520.5, changed : +5 points,  volume : higher.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer in control.
Support : 1500, 1485, 1470 level.
Resistant : 1530, 1550, 1580 level.
Comment :
Traded within 6 points range market FKLI closed recorded gain with improving but relatively low volume transacted catching up with regional market that traded higher last Friday after resume trading from last Friday holiday. Daily chart formed a doji bar candle closed positioned little above upper Bollinger upper band level indicates that there could be a correction taking place soon but the underlying market reading still remained 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.

20101108 1332 Breaking News : Malaysia Crude Palm Oil Data.

Reuters Poll on Malaysia Crude Palm Oil Data :
Oct 2010 Export Down 8% from Sep 2010
Oct 2010 Output Up 9.9% from Sep 2010
Oct 2010 Stocks Up 14.2% from Sep 2010 to 1.92 million tonnes at 9 month high.

20101108 1109 Local & Global Economics News.

External reserves: Higher in the second half of October 2010. External reserves increased slightly in the second half of October 2010 to RM324.9b (USD105.3b) as at 29 October 2010 from RM322.7b (USD104.6b) on 15 October 2010. The latest reserve amount is equivalent to 8.8 months of retained imports and 4.5 times short-term external debt. (Source: Bank Negara)

U.S: Consumer credit rose USD 2.1b in September led by a surge in non-revolving credit such as college loans and auto financing. (Source: Bloomberg)

U.S: Productivity rises, labor costs drop in 3Q10 as employers squeezed more productivity from workers. Employee output per hour rose at a 1.9% annual rate, more than forecast, after falling 1.8% in the previous three months. Worker costs fell for the fifth time in the past seven quarters. (Source: Bloomberg)

Ireland: Government deepens 'last chance' budget cuts . Ireland is accelerating efforts to cut its budget deficit as European Central Bank President Jean- Claude Trichet swings behind the country's drive to avert a European Union-led bailout. The finance ministry announced savings and tax increases for next year worth EUR 6b (USD 8.5b), or 3.6% of gross domestic product. A further EUR 9b will be cut in the following three years. (Source: Bloomberg)

China: Says Fed stimulus risks hurting global recovery if the U.S. Federal Reserve does not explain last week's decision to purchase bonds to pump money into the world's biggest economy. "Many countries are worried about the impact of the policy on their economies," Vice Foreign Minister Cui Tiankai said at a press briefing in Beijing. "It would be appropriate for someone to step forward and give us an explanation, otherwise international confidence in the recovery and growth of the global economy might be hurt." (Source: Bloomberg)

Vietnam: Raises interest rates for first time this year after inflation accelerated to a 19-month high last month. The so-called base rate increases to 9%. The refinancing rate will rise to 9% from 8%, while the discount rate rises the same amount, to 7%. (Source: Bloomberg) 

Indonesia: Economic growth unexpectedly slows to 5.8%
Indonesia’s economic growth unexpectedly slowed last quarter, cooling an expansion that has spurred capital inflows, pushed stocks to a record and lifted the Rupiah to a three-year high. Gross domestic product increased 5.8% in the three months to 30 September from a year earlier, after growing a revised 6.19% in the previous quarter, according to the Central Bureau of Statistics. (Bloomberg)

Taiwan: Consumer prices climb a second straight month
Taiwan’s consumer prices rose for a second straight month after a typhoon destroyed crops, pushing up food and transportation costs. The consumer price index advanced 0.56% in October from a year earlier, the statistics bureau said. (Bloomberg)

US: October payroll increase bodes well for US consumer spending
Employment in the US rose in October for the first time in five months, a sign the world’s largest economy may strengthen in the final quarter of the year. Payrolls climbed by 151,000 workers, exceeding all estimates in a Bloomberg News survey of economists, after a revised 41,000 drop in September that was smaller than initially estimated, Labor Department data showed in Washington. (Bloomberg)

US: Trade gap probably narrowed in September
The trade deficit probably narrowed in September as a weaker dollar boosted US exports, economists said before a report due this week. The gap shrank to USD45bn from USD46.3bn the prior month, according to the median of 57 estimates in a Bloomberg News survey ahead of Commerce Department figures on 10 Nov. (Bloomberg)

20101108 1108 Malaysia Corporate News.

Maybank: Fixes new shares under dividend reinvestment at RM7.70. Malayan Banking Bhd has fixed the issue price of new Maybank shares to be issued under the dividend reinvestment plan at RM7.70 per share. On behalf of the Board, Maybank IB, announced the Book Closure Date pursuant to the Final Dividend and Dividend Reinvestment Plan has been fixed for 18 November 2010. The new Maybank Shares arising from the Dividend Reinvestment Plan will be listed on the Main Market of Bursa Malaysia Securities Berhad on 21 December 2010. (Source: Bursa Malaysia)

LBS Bina: China Project expected to start next year. LBS Bina Group Bhd's China project in the southern city of Zhuhai with an estimated gross development value of (GDV) of RM5b is expected to start in the third or fourth quarter of next year. Last month, LBS Bina announced that it will sell a 10% equity stake in its Chinese joint ventures (JV) to its JV partner, Zhuhai Special Economic Zone Long Yi Enterprises Co for RMB200m (RM9.25m). Each party will own 50% of the JVs post transaction. The agreement would pave way to kick-start the property project which was deadlocked in the past. (Source: The Edge Financial Daily)

Mulpha: Goldman Sachs increases Mulpha stake to 5.74%. Mulpha International Bhd, which saw active trading recently on news that its associate FKP property was a takeover target, saw The Goldman Sachs Group Inc accumulate more shares in Mulpha. Goldman Sachs increased its shareholding to 135.2m shares or 5.74% equity interest. It was reported that FKP was a possible takeover target by Stockland, a leading Australian property developer. (Source: The Edge Financial Weekly)

Sapura Resources: Disposes of stakes in APIIT, UCTI. Sapura Resources Bhd (SRB) has proposed to dispose of 51% equity interest each in APIIT Sdn Bhd and Asia Pacific UCTI Sdn Bhd (UCTI) to Ontime Sdn Bhd for RM102m. SRB said net proceeds from the proposed disposal may be channelled towards the acquisition of new businesses, expansion of existing business and to pare down borrowings. The proposed disposal is expected to result in a one-off net gain of RM68.9m and upon completion of the exercise. (Source: The Star)

MCA buys 42% stake in Star for RM1.28bn
MCA last Friday announced it has bought a 42.4% stake in Star Publications (M) Bhd for RM1.28bn, or RM4.09 a share, from its wholly-owned subsidiary Huaren Holdings SB and is in the process of maintaining its beneficial interest in Star. “The transfer is effected for the purpose of reorganising MCA’s investments, whereby Huaren Holdings will divest its passive investment in Star and increase focus on its investments in unquoted shares and other assets, in order to achieve greater management efficiency and provide maximum return to stakeholders,” said MCA in a statement. “MCA’s investments in Star will continue to be passive and long-term in nature” it said. (StarBiz)

Axiata signs 5-year pact with Ericsson Axiata Group Bhd will, for the next five years, streamline its procurement of products and services with Ericsson to realize business efficiencies and competitive advantage though cash flow improvement. Earlier last week, they signed an agreement to facilitate regular exchange of information on technical and technological areas relating to products, works and services purchased by Axiata group of companies.(StarBiz)

UEM Land bid gets 40% votes
UEM Land Holdings Bhd’s proposed takeover of Sunrise Bhd for RM1.39bn, or RM2.80 per share, has received an acceptance level of 40.3% from three major shareholders of Sunrise. UEM Land managing director/chief executive officer Datuk Wan Abdullah Wan Ibrahim said the group had received irrevocable undertakings to accept its offer from Datuk Tong Kooi Ong, Tan Sri Tan Chee Sing and Datuk Lim Kim Huat. According to filings with Bursa Malaysia, Casa Unggul SB (a company controlled by Tong) owns 24.41% stake in Sunrise. Other shareholders include Phoenixflex SB (8.46%), Lim (7.24%), Tong (0.22%) and Tan (0.01%). (StarBiz)

Ramunia OGW signs MoU with Dongnam Marine Crane
Ramunia Holdings Bhd announced that its wholly-owned subsidiary, O&G Works SB (OGW) signed a memorandum of understanding with Dongnam Marine Crane Co Ltd (DMC) from South Korea. The MoU will provide a preliminary framework for a potential collaboration between OGW and DMC to undertake tendering. Bidding and manufacturing of any contract involving engineering, design, procurement and fabrication of offshore pedestal cranes; marine cranes. And any other make of cranes for the oil and gas industry and any other industries which require such supplies. (Malaysian Reserve)

Sarawak Cable inks contract worth RM98.6m
Sarawak Cable Bhd’s subsidiary Universal Cable (Sarawak) SB (UCS) and JV partner Sinohydro Corporation (M) SB (Sinohydro) have received an RM98.6m contract from Sarawak Energy Bhd for the design, supply, delivery, construction and commissioning of 275KV Murum-Murum Junction Transmission Line. (Malaysian Reserve)

20101108 0948 Global Market News.

OIL: Crude rises above $87/bbl to near 2-yr high
TOKYO, Nov 8 (Reuters) - U.S. crude futures extended gains for a sixth day to near a two-year high above $87 a barrel on Monday, getting support from a stronger-than-expected U.S. jobs report that restored confidence in the world's top oil consumer.
Oil was trading near $87.43 hit on Friday, the highest intraday price since $89.82 struck on Oct. 9, 2008. Prices rose $5.42, or 6.6 percent, last week, the biggest percentage gain since the week to Feb. 19.

COMMODITY MARKETS: Gold hits record high on inflation outlook
NEW YORK/LONDON Nov 5 (Reuters) - Gold hit a record peak on Friday and industrial metals and oil pushed higher as investors took a surprisingly robust U.S. jobs report as a hint that the economy was in better shape than previously thought.
"We will see the dollar in a protracted secular bear market and see commodities rise across the board," said Michael Pento, senior economist with Euro Pacific Capital in New York.

GLOBAL MARKETS: Dollar jumps, stocks hold gains on US jobs data
NEW YORK, Nov 5 (Reuters) - The dollar soared and stocks posted modest gains on Friday after better-than-expected U.S. jobs data fueled hopes of faster economic recovery.
"It's both better than people had been looking for, and it's another nail in the coffin of a double dip," said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts, referring to fears the economy would slide back into recession.

China belittles U.S. initiatives ahead of G20
BEIJING/BERLIN, Japan, Nov 5 (Reuters) - China rebuffed on Friday a U.S. plan to set target limits for trade imbalances and Germany dubbed the Fed's money-printing policy "clueless", setting the stage for what could be a fractious G20 summit next week.
Washington believes an undervalued yuan is a major cause of economic imbalances and has pressed Beijing, largely in vain, to let the currency rise more swiftly to reflect the strength of what is now the world's second-largest economy.

BOJ holds fire after Fed, gets asset buying plan going
TOKYO, Nov 5 (Reuters) - The Bank of Japan refrained from  further monetary easing on Friday, resisting for now any temptation to boost its asset buying scheme to keep pace with the Federal Reserve's new economic stimulus.
The BOJ is the third major central bank to hold fire after the Fed's Nov. 3 move to pump $600 billion more into the struggling U.S. economy by buying government bonds.

Singapore vies for London's shipping crown
LONDON/SINGAPORE, Nov 4 (Reuters) - London's position as the world's top shipping hub is being challenged by emerging contenders such as Singapore and possibly Shanghai as rising Asian economic powerhouses China and India suck in goods.
Chinese commodity demand is an increasingly pivotal factor driving freight market activity eastwards, while Asia dominates shipbuilding. Indian appetite for raw materials is also set to grow in the coming years, all enabling Singapore to set out its stall as a centre for the ship industry.

PRECIOUS-Gold dips as economic sentiment improves post-Fed
LONDON, Nov 5 (Reuters) - Gold hit a fresh record around $1,394 an ounce on Friday, before turning lower as the dollar firmed and the U.S. Federal Reserve's decision to buy more government bonds earlier this week improved risk sentiment.
Spot gold  traded at $1,383.30 an ounce at 1036 GMT, against $1,392.25 late in New York on Thursday. U.S. gold futures for December delivery  traded at $1,383.2.

FOREX-Dlr near lows, jobs data unlikely to offer succour
LONDON, Nov 5 (Reuters) - The dollar was mired near 11-month lows against a basket of currencies on Friday, while the Australian dollar hit 28-year highs as the Federal Reserve's stimulus package spurred investors appetite for risk.
Investor focus now turns to U.S. monthly jobs data and traders said any upside surprise from the numbers is likely to offer only a fleeting respite to the dollar. A weaker number could see the dollar-selling trend gather pace.

Bulls rule as stocks, commodities climb
HONG KONG, Nov 5 (Reuters) - Asian stocks rose for a fifth day, with commodity-related shares helping regional markets outperform other parts of the world this week after U.S. Federal Reserve action revived a move into riskier assets.
"What QE2 has done is that it added confidence to our view," said Shane Oliver, director of investment strategy and chief economist for AMP Capital in Sydney.

20101108 0942 Soy Oil & Palm Oil Related News.

KUALA LUMPUR, Nov 7 (Reuters) - Malaysian crude palm oil futures may hit 3,300 ringgit ($1,071) per tonne in the next few weeks as weather concerns plague global oilseed output, a top analyst said on Sunday. The estimate by Godrej International's Dorab Mistry assumes a 3.4 percent rise from current prices at a time of rising economic growth in top buyers China and India.
The weaker U.S. dollar has also triggered an inflow of funds into commodities as an inflation hedge and makes palm oil priced in the greenback much cheaper for overseas buyers. "However, I am afraid that (new) level will not be sufficient to ration demand," Mistry said in a speech due to be delivered at an oilseed conference in the southern China city of Guangzhou.
"The period of greatest tightness will be between February and May 2011 and we may require even higher prices in December and January to prepare the world for that tightness."  Benchmark Malaysian prices this year have support from an output shortfall in Malaysia and, to some extent, in top producer Indonesia as El Nino's hotter weather dried up yields.
London-based Mistry said the subsequent back-to-back transition from El Nino to La Nina in the middle of 2010 has caused severe imbalances in the global climate and may further hurt overall oilseed production. La Nina can bring more rains to palm oil producing Southeast Asia that aids in oil palm pollination but the weather condition potentially triggers hotter weather in soyoil-exporting South America that can affect soybean crop yields.
"Even with current estimates of 67 million tonnes of beans for Brazil and 52 million for Argentina, the world's supply and demand fundamentals are very tight. Any loss due to La Nina will make it tighter," Mistry said. Mistry, head of vegetable oil trade in Godrej International, said cash Argentine soyoil may rise as much as 10 percent to $1,250 per tonne in the short term as consumers shift to soyoil after chasing tight rapeseed oil and sunseed oil supplies.

BEIJING, Nov 5 (Reuters) - Most Dalian corn contracts <0#DCC:> hit a record while soy <0#DSA:>, soyoil <0#DBY:> and palmoil <0#DCP:> futures touched their daily trading limits on Friday to track gains on the Chicago Board of Trade (CBOT).  "All these rises are 'imported' rises because of a weaker U.S. dollar. We believe oilseeds will be stronger, following bullish crude oil prices," said Wang Ping, an analyst with Dongwu Futures Co Ltd based in Shanghai.
Dalian corn, which used to move in opposite direction from prices in Chicago because of government stocks, has recently been tracking rises on the Chicago Board of Trade <0#C:> as China may turn to more imports next year due to tight domestic supply, said Wang. The May corn contract was traded at an intraday high of 2,265 yuan ($340.1) per tonne.
Soyoil for May delivery rose to 9,898 yuan per tonne, the highest level since August 2008, while palmoil for the same month hit 9,000 yuan per tonne. The most-active soy contract rose as high as 4,657 yuan per tonne, also the strongest level since August 2008.

US soy product futures finish mixed, with soyoil climbing on spillover support from Asian markets. Crude palm oil futures on Malaysia's derivatives exchange hit fresh 27-month high and led soyoil higher, according to Global Commodity Analytics and Consulting, a US brokerage. Soymeal lost ground, as market participants bought soyoil and sold soymeal in spread traders, trader says. CBOT Dec soyoil ends up 0.97 cent at 52.22 cents per pound. CBOT Dec soymeal slips 20c to $348 per hundredweight.  (Source: CME)

New Planting Rule Improves Palm Industry Image - Unilever (Source: CME)
A proposed new planting rule by the Roundtable on Sustainable Palm oil, that requires oil palm growers to get approvals from local communities, will improve the industry's image, a company executive at Unilever NV said. The industry has previously faced criticism by environmental groups that it cleared forest lands to cultivate oil palms. The new planting procedure--proposed by environmental groups and set to be adopted at the upcoming Roundtable conference in Jakarta next week--requires oil palm growers to prepare correct regulatory permits, documents that identify areas that fall under primary forest, or peat soils, and for new oil palm plantings from Jan. 1, 2010. Many growers say they are burdened with too many RSPO requirements and the new planting procedure would slow oil palm expansion particularly in Indonesia, leading to higher prices in the longer term as global demand increases.
"The planting rule is the only way to make sure planters adhere to RSPO principles and requirements," the Netherlands-based Jan Kees Vis, global director for sustainable sourcing development at Unilever, said. Jan Kees, also president at RSPO, said the planting rule would also put to rest deforestation charges made by environmental groups. The planting rule, if implemented, would also require growers to address all grievances with local communities before they commence operations on new areas. The RSPO, an industry consortium, was formed by the World Wildlife Fund and Unilever in 2004, which is adopting stringent and sustainable practices for palm-oil cultivation after palm oil producers in Malaysia and Indonesia were charged by environmental groups with cutting down forest trees and draining peat lands for oil palm cultivation.
The allegations led to blacklisting of some plantation firms by major food producers as they rushed to protect global brands by jumping on the sustainable bandwagon, demanding environ mentally friendly palm oil. Most palm oil producers have made that pledge to be fully certified by the RSPO in the next few years, but Jan Kees warned against a tendency to delay certification plans until demand picks up.

U.S. soy hits 25-month top on dollar, Fed push
SINGAPORE, Nov 5 (Reuters) - U.S. second-month soybean futures climbed to a 25-month high and wheat extended gains as funds flowed into commodities after the U.S. Federal Reserve's new stimulus plan boosted appetite for risk assets.
"There's a broad allocation for commodities at the moment," said Adam Davis, senior commodity analyst at Merricks Capital in Melbourne.

USDA confirms China rejected US corn shipment
WASHINGTON, Nov 4 (Reuters) - The U.S. Agriculture Department on Thursday confirmed that China has rejected a shipments of U.S. corn after it detected a genetically modified variety not yet approved in China.
"We understand that industry representatives are working directly with the Chinese on this matter. We continue to monitor the situation," a USDA spokeswoman said.

Argentina corn sowings seen higher-exchange
BUENOS AIRES, Nov 4 (Reuters) - Argentina's 2010/11 commercial-use corn area is seen rising to 3.15 million hectares from the previous forecast of 3.0 million hectares, the Buenos Aires Grains Exchange said on Thursday.
The exchange held its estimate for 2010/11 wheat production at a minimum of 12.1 million tonnes, and kept its forecast for 2010/11 soy area at 18.7 million hectares.

US corn supply seen falling to 15-year low
CHICAGO, Nov 4 (Reuters) - U.S. corn ending stocks will fall next year to their lowest level in 15 years, along with the stocks-to-use ratio, amid a shrinking crop and robust demand, a Reuters Poll of analysts showed.
A wet July and dry August has already lead the U.S. Agriculture Department to trim its corn yield estimate by 4 percent last month, and the analysts polled are expecting the USDA to trim its yield again on Tuesday at 8:30 a.m. EST (1330 GMT), when it releases its November crop production and supply/demand reports.