20101116 1831 FCPO EOD Daily Chart Study.

FCPO closed : 3265, changed : -110 points, volume : higher.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : weakening, buyer taking profit and reducing exposure.
Support : 3200, 3150, 3100 level.
Resistant : 3270, 3300, 3350 level.
Comment :
China unveiled plans to impose food price controls to partly crack down on speculation in agricultural commodities triggered soy oil, crude oil and FCPO to selldown recorded severe losses with higher volume changed hand. Daily chart formed a down bar doji bar candle correcting downward and seems heading towards the middle Bollinger band support level with the reading still call for a correction range bound upside biased market development testing support and resistant level.
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.

20101116 1739 FKLI EOD Daily Chart Study.

FKLI closed : 1489, changed : -9.5 points,  volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : getting lower, buyer cashing out.
Support : 1485, 1470, 1458 level.
Resistant : 1500, 1530, 1550 level.
Comment :
Buyer continue to cash out their position lead FKLI to closed recorded loss in slightly better volume changed hand doing 14 points discount compare to cash market in tandem with a negative major regional market development especially China Shanghai exchange recorded substantial 3.98% drop. Daily chart formed a doji down bar candle with the low tested support level near lower Bollinger band level as market reading turned into a side way range bound development testing support and resistant level.
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.

20101116 1637 Breaking News: China Impose Food Price Control.

KUALA LUMPUR, Nov 16 (Reuters) - Malaysian crude palm oil  futures fell as much as 2.1 percent on Tuesday after China  unveiled plans to impose food price controls, traders said. 
Benchmark Feb 2011 palm oil futures on the Bursa  Malaysia Derivatives Exchange dropped 75 ringgit to 3,305  ringgit ($1,054) per tonne by 0717 GMT.
Traders say China's plan, which also involves cracking  down on speculation in agricultural commodities, may slow  demand from the world's No.2 buyer of vegetable oils.

20101116 0937 Global Economics News.

China: Four biggest state banks will not issue any new loans to property developers  for the remainder of the year, the state-run China Real Estate Business reported, citing unidentified executives at the banks. Industrial & Commercial Bank of China Ltd., China Construction Bank Corp, Bank of China Ltd. and Agricultural Bank of China Ltd., had met their allotted loan targets for the year, according to a copy of a report email to Bloomberg News by the newspaper. Approvals of new loans had ceased since the end of October, the newspaper said. (Source: Bloomberg)

Singapore: Retail sales excluding vehicles ease
Singapore’s retail sales excluding motor vehicles rose at a slower pace in September after the economy contracted last quarter. The index measuring purchases excluding automobiles climbed 5.3% y-o-y after gaining a revised 6.4% in August. Including vehicles, which are sold subject to government caps, total retail sales rose 0.3%, less than the median forecast for a 1.5% increase. Adjusted for seasonal factors, overall retail sales fell 2.4% m-o-m. (Bloomberg)

Japan: Economy grew 3.9% in third quarter
Japan’s economy grew more than forecast in the third quarter as consumer spending increased, shielding the expansion from a stronger yen and export slowdown likely to have a greater impact this quarter. GDP beat estimates of a 2.5% increase by rising an annualized 3.9% in the quarter ended 30 Sept, following a revised 1.8% expansion in the previous quarter. In nominal terms, the economy grew 2.9%. Consumption, accounting for about 60% of GDP, led the gain as households stepped up purchases of fuel-efficient cars ahead of the expiration of a subsidy program and as smokers stocked up before an 1 Oct tobacco-tax rise. (Bloomberg)

India: Inflation slowed to nine-month low in October
India’s inflation slowed in October to the lowest level in nine months, reducing pressure on the central bank to extend Asia’s fastest round of interest-rate increases this year. The benchmark wholesale-price index rose 8.58% y-o-y after an 8.62% increase in September. Median forecast was for a 8.5% gain. The central bank, who raised rates on Nov 2 for the sixth time this year, said they may refrain from boosting them for three months, partly to ward off the risk of inflation-stoking capital inflows from overseas. India’s central bank is aiming to cool inflation to 6% by 31 March. (Bloomberg)

EU: Greece’s budget deficit largest in EU
Greece had the euro region’s largest budget deficit and public debt last year after a revision by European Union authorities who said their concerns about the country’s economic statistics were now resolved. Greece’s budget shortfall last year was revised to 15.4% of GDP from 13.6%, surpassing Ireland’s 14.4% shortfall. The debt was revised to 126.8% of GDP, overtaking Italy at 116%. The Greek Finance Ministry said that after the revisions the budget deficit would be 9.4% of GDP this year and debt will reach 144% of GDP. (Bloomberg)

E.U: Exports increased for second month in September . Exports from the economy of the 16 nations that use the euro rose a seasonally adjusted 0.6% MoM from August. Imports fell 2.5% MoM and there was a trade surplus of EUR 2.4b (USD 3.3b) after a trade gap of EUR 1.7b the previous month. (Source: Bloomberg)

U.S: Manufacturing growth in New York region contracts in November . The Federal Reserve Bank of New York's general economic index fell to minus 11.1 from 15.7 in October. Readings less than zero signal contractions in the so-called Empire State Index, which covers New York, northern New Jersey and southern Connecticut. (Source: Bloomberg)

US: Retail sales increased 1.2% in October
Sales at US retailers climbed in October by the most in seven months, brightening the outlook for holiday shopping even as unemployment holds near 10%. Purchases rose 1.2%, exceeding the highest forecast among economists. Sales excluding automobiles advanced 0.4%. Excluding autos, gasoline and building materials, sales improved 0.2% after a 0.4% gain the prior month. Meanwhile, another report showed manufacturing in the New York region unexpectedly shrank in November as orders dropped. (Bloomberg)

US: Inventories increase 0.9% in September
Inventories in the US rose more than forecast in September as companies stocked shelves ahead of the holiday season. The 0.9% increase matched the rise in August that was larger than previously estimated. Sales rose 0.5%, led by retailers. Companies had enough goods on hand to supply 1.27 month’s worth of sales at September’s pace, the same as in August. Retailers’ inventories increased 0.8%, factory inventories rose 0.7% and wholesale stockpiles increased 1.5%. (Bloomberg)

20101116 0936 Malaysia Corporate News.

Time dotCom lines up RM339m acquisitions
Time dotCom plans to buy three companies in the telecommunications (telco) industry for RM339m in a bid to become a regional player. The three are Global Transit Communications (GTC) for RM106m, Global Transit Ltd (GTL) for RM105m and AIMS Group for RM128m. The acquisitions, for which it will pay RM90.9m in cash and the rest in new shares, are expected to be completed in six months, chief executive officer Afzal Abdul Rahim said at a briefing late yesterday. GTC is the region's leading wholesale Internet service and backhaul provider, while GTL owns 10% in the much-coveted trans-Pacific submarine cable, Unity North Cable System. AIMS Group, meanwhile, owns one of the region's leading network-neutral data centres. All three are profitable and are expected to enhance TdC's earnings immediately upon purchase. Meanwhile, TdC clarified that it isn't interested in applying for 4G spectrum. (BT)

MAS expects lucrative returns from Eastern hub
Malaysia Airlines expects its newly launched Eastern hub in Kota Kinabalu to contribute between RM60m and RM100m to net profit by June 2011. The hub will be developed over three stages from 15 Nov 2010 to 3 June 2011. A total of six aircraft, two new B737-800 and four B737-400 as well as 150 pilots and 250 cabin crew will be based in Kota Kinabalu by June 2011. Musa also announced the start of three weekly flights to Perth effective 15 Jan 2011. Yesterday also marked the new B737-800's inaugural flight to Haneda airport in Tokyo out of Kota Kinabalu. By June 2011, Kota Kinabalu will have daily flights to Taipei and Hong Kong, four weekly to Kaohsiung in Taiwan and Seoul, three weekly to Haneda and Perth and twice weekly services to Osaka. Kuching will also enjoy 25 weekly flights, up from 14 weekly, to Kota Kinabalu which facilitates access to these international destinations, making Sarawak more accessible to tourists and supporting Sarawak's economic growth programmes. (StarBiz)

Foreign interest continues to circle P&O
Pacific & Orient’s insurance business is believed to still be on the radar of other foreign parties despite Prudential Holdings dropping out of the acquisition talks for the local general insurer because both parties could not agree on the pricing. Sources say that one of the interested parties eyeing the insurance business is from the North Asian region. (Financial Daily)

Kencana clinches RM275m jobs
Kencana Petroleum’s wholly owned subsidiary Kencana HL has secured contracts worth RM275m from Sarawak Shell for the fabrication of compression modules and tie-in modifications. The contracts were one-off construction contracts and expected to be delivered within the first quarter of 2012, it told Bursa Malaysia yesterday. (StarBiz)

France’s Casino buying Carrefour Thai stores for US$1.2bn
France’s Casino is buying the Thai stores of rival Carrefour for 868m euros (US$1.2bn), including debt, to step up the challenge to Britain’s Tesco in the fast-growing South-Aast Asian country. Casino said yesterday the deal for 42 stores would help Big C Supercenter, in which it owns a 63% stake, to become co-market leader in Thailand, with an estimated turnover for 2010 of about 2.4bn euros. Bernstein analyst Chris Hogbin said the price, at about 1.2 times net sales, appeared a little high, although that would depend on the value of the real estate assets being acquired. He also said it suggested Tesco’s international businesses were not being valued highly enough by analysts. A source with knowledge of the matter said a deal to sell Carrefour’s assets in Malaysia and Singapore would take another two or three weeks. Bidders for these assets included Singapore’s Dairy Farm, which is backed by Jardine Mathseon Holdings Ltd, Tesco, Japan’s Aeon and Malaysian private equity fund Navis Capital, sources close to the matter had said. (Reuters)

CEO: TMC could turn around next year
TMC Life Sciences newly elected chief says the company could return to the black faster than previously anticipated, that is by next year, helped largely by higher contributions from foreign patients and new operations. When chief executive officer Lim Poon Thoo took over as head honcho of the medical group in September from Datuk Dr Colin Lee Soon Soo, he had said that TMC, which owns two hospitals and a few branch clinics nationwide, would return to the black by 2012. (StarBiz)

CIMB: CIMB Niaga to raise RM527m.  PT Bank CIMB Niaga expects to raise 1.5t rupiah (about RM527m) via a rights issue of 1.4b shares at 1,065 rupiah (37.4 sen) per share next month. (Source: The Star)

Media Prima, YTL Comms: Hybrid TV gets content boost.  YTL Communications Sdn Bhd (YTL Comms) will host RTM and Media Prima group channels on its hybrid television slated for launch in November 2011. The hybrid TV would cost RM1b to RM2b to roll out. (Source: The Star)

IPO: China firm Sozo Global to list on Bursa.  Another China based company, Sozo Global Ltd, is expected to make a debut on the Main Market of Bursa Malaysia. Agro Treasures which is an outsourced fund initiated by Khazanah Nasional Bhd is the company's anchor investor, holding 10.4% equity stake in the food maker from northeast China's Shandong province. Sozo entered into an underwriting agreement with AmInvestment Bank Bhd and JF Apex Securities Bhd in conjunction for its IPO offer. (Source: The Edge Financial Daily)

20101116 0858 Global Market News.

Oil falls below $85 on stronger U.S. dollar
SINGAPORE, Nov 16 (Reuters) - Oil prices eased below $85 weighed down by a stronger dollar and an expected rise in U.S. crude stockpiles.
"Oil had a strong rally recently and the market was really set up for a correction, with the value of the dollar having quite a lot to do with this," said Victor Shum, an analyst with energy consultancy Purvin & Gertz.

China rare earth dominance seen remaining -Van Eck
LONDON, Nov 15 (Reuters) - Countries outside of China are scrambling to invest in domestic supplies of rare earth metals, but new mines could take 10 years to come on stream, asset manager Van Eck Global said on Monday.
China accounts for 97 percent of world total production of rare earth, which was around 120,000 tonnes in 2008, mining experts say.

US corn underpinned by supply tightness
SYDNEY, Nov 16 (Reuters) - U.S. corn and wheat futures posted modest losses as the dollar firmed, but tightening global stocks after production setbacks in key grain regions continue to underpin the market.
"The broader factor around grains is the very tight supply situation going forward," said Wayne Gordon, a grains analyst at Rabobank in Sydney.

Argentina approves 5 mln T in corn exports-source
BUENOS AIRES, Nov 15 (Reuters) - Argentina's government has approved the shipment of 5 million tonnes of 2010/11 corn, its first approval of new corn season exports, a senior government source told Reuters on Monday.
Argentina is the world's No. 2 corn supplier and the country's farmers are currently sowing the 2010/11 crop, which is expected to reach a record 26 million tonnes, meaning more will be available for export.

OIL: Crude falls as firmer dollar weighs
TOKYO, Nov 16 (Reuters) - U.S. crude futures fell on Tuesday as the dollar extended recent gains, while the market awaited a weekly industry report on U.S. inventories due later in the day.
Crude is extending a 3-percent slide last week, when its recent rally to a 25-month high of $88.63 was reversed as a fall in Chinese stocks on rate hike worries on Friday sparked concerns about oil demand.

COMMODITY MARKETS: Corn leads rebound; dollar still weighs on oil
NEW YORK, Nov 15 (Reuters) - Corn prices rose 4 percent on Monday as most commodities rallied on stronger fundamentals and U.S. economic data, though gains in the dollar continued to weigh on oil.
"A weaker dollar does lead to higher commodity prices for a while, but the consequences of such a relationship are seldom highlighted, namely, that high commodity prices eventually lead to higher inflation and/or demand destruction, and thus sow the seeds of their own fall," said Edward Meir, energy and base metals analyst at MF Global in New York.

GLOBAL MARKETS: Dollar surges on euro debt woes; bonds down
NEW YORK, Nov 15 (Reuters) - The U.S. dollar climbed to a six-week high against major currencies on Monday as worries about Ireland's debt crisis persisted, hurting the euro, while rising U.S. bond yields increased the greenback's appeal.
"The euro fell below $1.36 and is set to remain under pressure in the near term as investors focused on fiscal troubles in Ireland and Portugal and await meetings of European finance ministers on Tuesday and Wednesday," said Greg Farinella, managing director and head of Treasury and trading at Espirito Santo Investment S.A. in New York.

IEA's Tanaka: oil market 'very well supplied'
TOKYO, Nov 15 (Reuters) - The oil market will have plenty of supply until at least the end of 2011 if OPEC keeps producing at current levels, International Energy Agency Executive Director Nobuo Tanaka said on Monday.
There have been concerns about supply after recent sharp falls in crude and other oil products in floating storage due to robust demand.

High metal prices prompt talk of stockpiling
LONDON, Nov 12 (Reuters) - Excess money market liquidity and worries about scarce resources are propelling commodity prices to record highs and prompting talk of stockpiling.
But any such moves by big industrial consumers may aggravate high prices and increase risks for companies, which should seek other ways to secure raw materials such as copper, iron ore and rare earths by moving up the supply chain.

China should shift monetary policy -c.bank researcher
BEIJING, Nov 15 (Reuters) - China should move to a more prudent monetary policy and guard against risks from loose money conditions used to counter the global financial crisis, a central bank researcher said in remarks published on Monday.
"China should return to a stable and healthy monetary policy as soon as possible in response to the actual situation," Zhang Jianhua, head of the research bureau of the People's Bank of China, told the official Financial News.

Japan says China vows action on rare earth exports
YOKOHAMA, Japan, Nov 13 (Reuters) - China expects the problem of slow rare earth exports to Japan to be resolved soon, Japan's Trade Minister Akihiro Ohata quoted a senior Chinese official as saying on Saturday.
Ohata said Zhang Ping, the head of China's National Development and Reform Commission, had told him he instructed officials to speed up customs inspections of rare earths.

PRECIOUS-Gold steady; European debt, inflation worry support
SINGAPORE, Nov 15 (Reuters) - Gold prices were steady on Monday, after the sharpest fall in four months in the previous session, as inflation concerns and sovereign debt issues in Europe offered support.
Spot gold  was little changed at $1,365.75 an ounce by 0702 GMT, after falling three percent on Friday as talks of an imminent interest rates hike in China triggered a broad sell-off across financial markets.

FOREX-Dollar boosted by higher Treasury yields
LONDON, Nov 15 (Reuters) - The dollar index hit a six-week high on Monday, boosted by higher U.S. Treasury yields, while the euro was stung as Ireland's deepening debt problems  shook confidence in the euro zone.
The 10-year Treasury yield hit a two-month high as the Wall Street Journal reported that a group of Republican-leaning economists is launching a campaign calling for the Federal Reserve to drop its plan to buy $600 billion of Treasuries.

Stocks fall, dollar rises on Irish debt woes
SYDNEY, Nov 15 (Reuters) - Stocks in Asia and Europe fell  on fears that Ireland may be forced to seek a financial rescue package, while a jump in U.S. Treasury yields helped drive the dollar higher.
"That looks to be the initial catalyst that sparked the selloff (in Treasuries), and then it ran into quite a few stops and became momentum and flow driven," said Sue Trinh, currency strategist at RBC in Hong Kong.

20101116 0856 Soy Oil & Palm Oil Related News.

Soy product futures ended mixed Monday. Soymeal futures climbed, recouping some of Friday's declines on spillover support from soybeans and underlying demand. Soyoil futures inched lower, after trading on ether side of unchanged levels. The market was pressured by meal/oil spreading and concerns about slower export demand, while finding support from firmer world vegoil prices and a fresh sales announcement from the USDA, analysts said. CBOT Dec soyoil ended 0.06c, or 0.1%, lower at 52.47 cents a pound, while Dec soymeal traded $8.40, or 2.5%, higher at $348.10 a short ton.(Source: CME)

China Delegation In Argentina To Discuss Farm Goods (Source: CME)
Argentine Agriculture Minister Julian Dominguez met with a trade mission led by his Chinese counterpart on Friday to strengthen ties between one of the world's biggest commodity importers and Argentina, a major exporter of farm goods. After meeting in Buenos Aires earlier in the day, Chinese Agriculture Minister Han Changfu and Dominguez announced the creation of a bilateral farm trade commission to avoid a repeat of a dispute over soyoil earlier this year and to work toward opening the Chinese market to Argentine beef, corn and barley exports. Han addressed about 200 local businessmen Friday night at the country's main grain exchange in the city of Rosario, highlighting a productive visit to Beijing of Argentine president Cristina Fernandez in July. "It was a big success and set a very good foundation for the development of bilateral agricultural relations," Han said.
China is Argentina's No. 2 trading partner, behind only Brazil, but Argentina runs a steep trade deficit with the Asian country despite hefty exports of soybeans and soyoil each year. China is the No. 1 market for Argentina's grain exports and Argentina is China's third largest source of agricultural products behind the U.S. and Brazil. Agriculture shipments to China have surged this year, rising 57% on the year to $5.1 billion during the first nine months of 2010. Farm shipments to China are led by soyoil, sunflower seed oil, soybeans, chicken, frozen fruit, juice and tobacco, Argentina's agriculture minister said in a press release. Ninety percent of Argentina's leading export, soybeans, goes to China, which is expected to buy 10 million tons from Argentina this year, according to the release. Despite being the leading buyer of Argentina's beans, the Chinese buy the bulk of imports from the big multinational grain trading firms who have operations in both South America and Asia.
However, Hong Kong-based Noble Group Ltd set up shop in Argentina about four years ago and has been increasing its operations dramatically, said Cristian Amuchastegui, president of the Rosario Grain Exchange. Noble Group now buys about 5% of the soybeans shipped to China each year, he said. China has also been investing heavily in building modern soybean crushing facilities in recent years and are pushing to just buy raw beans from Argentina and crush them into oil and meal in China, Amuchastegui told reporters. And trade relations between Argentina and China haven't been without the occasional spat. China, the world's biggest buyer of soyoil, resumed purchasing soyoil after lifting a six-month ban on imports last month. China said the ban was due to sanitary concerns, but it was widely seen as retaliation for barriers imposed on Chinese manufactured goods by Argentina.
Chinese soyoil purchases during 2010 will likely be similar to last year's levels, Argentine Deputy Agriculture Minister Lorenzo Basso said in a recent interview. However, exporters had to sell soyoil at a steep discount to attract new buyers such as India during the first half of the year. "The damage is done," Amuchastegui said. But agriculture minister Dominguez was diplomatic and thankful that China had followed through on it's commitment to resume soyoil buying. "You're a man of your word," Dominguez said to Han. With that soyoil dispute apparently resolved, Argentina is looking to open new markets for its farm products as well as attract Chinese investment in biofuels and food processing. Argentine officials say that they are close to inking a deal to resume beef sales to China, which have been closed since a 2006 outbreak of foot-and-mouth disease in Argentina.
However, prospects for beef trade are limited as Chinese diners prefer to sink their chopsticks into pork, chicken and other meats rather than  steak. Argentine beef sales will likely focus on innards and high-grade beef cuts for hotels and restaurants, according to the release. Argentina's agriculture ministry said it is also in talks to open corn and barley exports to China. So far, Argentina and China have failed to come to an agreement on sanitary standards which would allow corn exports to China, but the two countries are working on that now, said, Martin Fraguio, head of the Maizar corn growers' association. China has traditionally been a big corn exporter, but drought problems last season and soaring demand saw China import for the first time this year.
Some analysts expect China to continue to be a corn importer in the coming years, opening up big market potential for Argentine sales to China, as well as major corn importers Japan and Korea, which have traditionally relied on China to satisfy their needs, Fraguio said.

Corn up 2 pct on talk of Chinese buying, soy steady
SINGAPORE, Nov 15 (Reuters) - U.S. corn futures rose more than 2 percent  as bargain hunters stepped into the market following Friday's slump amid talk that China bought cargoes of Argentine corn.
"The rebound is partly due to talk that China is buying corn and some South American trade going on in that market," said Garry Booth, a traderwith MF Global Australia. "We also had the Iraqi wheat tender on Friday where Australia and U.S. secured more business."

China traders see no imminent Argentina corn imports
BEIJING, Nov 15 (Reuters) - China, the world's second-largest corn consumer, will not import Argentine corn soon as it will take more than two years to lay the groundwork, grain traders and analysts said on Monday.
Argentina's Agriculture Minister Julian Dominguez said on Friday that the world's second-largest corn supplier was in talks to export corn to China.

Argentina negotiates with China over corn exports
BUENOS AIRES, Nov 12 (Reuters) - Argentina's farm minister said on Friday it is in talks with China over exporting corn to the Asian country, which does not currently buy Argentine corn due to curbs on genetically modified varieties.
Argentina is the world's second-biggest corn supplier after the United States. Rumors swirled earlier this year that China had bought Argentine corn, but no shipments were confirmed.

Palm oil up on strong overseas demand
KUALA LUMPUR, Nov 15 (Reuters) - Malaysian crude palm oil futures rebounded , as strong exports data outweighed concerns over China raising interest rates that kept the market on edge.
"The market rose on fundamental factors in Malaysia including strong exports and weak production," said a trader with a foreign brokerage in Kuala Lumpur.

Experts find lost genes in wild soybean
SINGAPORE, Nov 15 (Reuters) - Researchers have found genes in wild varieties of soybean that make them resistant to certain diseases and hope to use them in cultivated species of soy to make them more hardy.
They may also have found genes that make wild varieties resistant to drought and saline soil -- traits that cultivated soybean will need because the amount of arable land is shrinking around the world.

India's 2010/11 oilseeds output seen up 12.4 pct-trade
NEW DELHI, Nov 13 (Reuters) - India's summer-sown oilseed output rose 12.4 percent to 15.4 million tonnes in the current crop year that began in July, a leading trade body said on Saturday.
India, the world's top cooking oil importer, grows nine oilseeds with soybean being the main summer-sown crop.