20110110 1844 FCPO EOD Daily Chart Study.

FCPO closed : 3730, changed : -33 points, volume : lower.
Bollinger band reading : correction range bound little upside biased.
MACD Histrogram : falling, buyer continue to take profit and reducing exposure.
Support : 3720, 3700, 3650 level.
Resistance : 3750, 3770, 3800 level.
Comment :
FCPO continue to slip lower with lower volume participation after export data(1~10 Jan 2010) released continue to show a weaker demand on crude palm oil while soy oil traded little higher after last Friday closed lower due to higher crude oil surge higher after pipeline shutdown in Alaska.
Daily chart formed a down bar candle with upper shadow after market opened gap up tested higher resistance level and sell down due to profit taking activities press price to closed at the low of the day heading toward middle Bollinger band support level with the reading suggesting a correction range bound little 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.

20110110 1813 FKLI EOD Daily Chart Study.

FKLI closed : 1562.5 changed : - 9 points,  volume : higher.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : turned lower, buyer taking profit.
Support : 1560, 1550, 1540 level.
Resistance : 1570, 1580, 1590 level.
Comment :
FKLI ended lower having pullback correction for the first time since the new year rally started with higher volume transacted doing 1 point discount compare to cash market while regional market closed mostly lower as sentiment turned little negative after China announced a lower 2010 export plus possible imposing a property tax with China, Indonesia and India market recorded severe loss. Meanwhile last Friday U.S. payroll data released shown a mixed figure on the U.S. economy recovery pace.
Daily chart formed a wide range bar candle with an almost bearish engulfing candlestick pattern corrected downward from the upper Bollinger band level with the reading suggesting a pullback correction range bound upside biased market reading.
When to buy : buy at support or weakness with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110110 1005 Local & Global Economics Related News.

China: China's trade surplus narrowed in 2010 for the second straight year
China's trade surplus narrowed in 2010 for the second straight year, data showed on Monday, giving Beijing grounds to rebuff U.S. pressure for faster currency appreciation ahead of President Hu Jintao's visit to Washington next week.The Chinese government will point to the numbers and, especially, heady import growth as evidence of steady progress toward reform of its economy that is giving the world a lift.

Malaysia: Slower industrial output expected
With sluggish external demand, especially for products in the electrical and electronics sector, industrial output in Malaysia is expected to ease for November 2010. A poll conducted expects the Industrial Production Index (IPI), which measures changes in the manufacturing, electricity and mining indices, to post a 5.5% growth. The Statistics Department will release the data today. (BT)

Malaysia: Moderate growth in total trade
Malaysia's total trade, which bounced back last year from a lashing global economic crisis, is projected to grow at a moderate 5% in 2011, International Trade and Industry Minister Datuk Seri Mustapa Mohamad said. Uncertainties in the global economy, from the unstable recovery in the US and pounding debt issues in Europe, will impact the export performance of a small trading nation like Malaysia. Mustapa, however, said Malaysia's exports are well diversified and this will be a cushion against these global uncertainties. (BT)

China: Shanghai surpasses Singapore as world’s busiest port
Shanghai surpassed Singapore in container traffic last year, making China’s wealthiest city the world’s busiest port as the country churns out more export goods and boosts trade volumes. Traffic in 2010 rose to 29.05m, 20- foot equivalent units, or TEUs, the Shanghai municipal government said in a media release on its website. That’s about 500,000 TEUs more than Singapore, the release said. Shanghai’s cargo volume was about 650m metric tons last year, it said. (Bloomberg)

EU: Economy expands 0.3%, less than estimated
Europe’s economy expanded less than initially estimated in the third quarter as companies trimmed spending to weather the region’s worsening debt crisis. Gross domestic product in the Euro region rose 0.3% from the second quarter instead of 0.4% reported on 2 Dec 2010, the European Union’s statistics office in Luxembourg said. (Bloomberg)

US: Payrolls report confirms Fed view for slow US jobs recovery
Employers in the US added fewer jobs than forecast in December, confirming Federal Reserve Chairman Ben S. Bernanke’s view that it could take “four to five more years” for the labor market to completely mend. Payrolls increased 103,000, less than the median projection of 150,000 in a survey, Labor Department figures showed. The jobless rate fell to 9.4%, partly reflecting a shrinking workforce as discouraged Americans stopped looking for work. (Bloomberg)

US: Retail sales probably climbed in December
Retail sales probably climbed for a sixth month in December 2010, a sign consumers are contributing more to the US expansion even as the labor market struggles to accelerate, economists said before a report this week. The projected 0.8% gain in purchases would match the previous month’s increase, according to the median of 58 estimates in a survey ahead of Commerce Department figures on 14 Jan. (Bloomberg)

20110110 1004 Malaysia Corporate Related News.

Sg Buloh-Kajang MRT line to be finalised latest by May
The locations of the 35 stations of the first mass rapid transit (MRT) line from Sg Buloh to Kajang are expected to be finalised between April and May, says Land Public Transport Commission (SPAD) CEO, Mohd Nur Ismal Kamal. The line, with about 9.5km underground, will run through Sg Buloh, Kota Damansara, Kuala Lumpur, Cheras to Kajang. However, it was previously reported the alignment of the MRT may differ from what it was first proposed by MMC-Gamuda JV SB, the project delivery partner, as some highly busy hubs like Klang, Petaling Jaya and Shah Alam were not included in the initial MRT alignment. (Malaysian Reserve) Puncak receives formal water assets offer from Selangor Govt Puncak Niaga Holdings and its subsidiary Syarikat Bekalan Air Selangor SB have received formal offers from the Selangor state government for their water assets, the company said in a statement to the Malaysian stock exchange. Details of the offer will be announced following review by management, according to the statement. (Malaysian Reserve)

Hap Seng to raise funds via rights issue, placement
Plantation and property group Hap Seng Consolidated Bhd is proposing a renounceable rights issue, bonus issue and private placement to, among other things, raise funds for capital expenditure requirements, corporate purposes and additional working capital purposes. The company is proposing a rights issue of up to 448.31m shares together with up to 448.31m new free detachable warrants on the basis of one rights share together with one warrant for every five Hap Seng shares held. The bonus issue being proposed will involve up to 1.49bn new shares to be credited as fully paid-up on the basis of two bonus shares for every one existing Hap Seng share on an entitlement date to be determined and announced later. The company's proposed private placement will involve up to 124.53m new ordinary shares of RM1 each, representing up to 20% of the issued and paid-up share capital of the company. The proposed increase in the authorised share capital will boost the share capital to RM5bn from the present RM1bn. (StarBiz)

Guan Chong expects to raise RM120m
Guan Chong Bhd expects to raise up to RM120m from its corporate exercise of issuing 60m free warrants. “Based on the exercise price of the warrants of RM2 per new GCB share, the company stands to potentially raise up to RM120m during the tenure of the warrants upon full exercise of the warrants by the holders of the warrants. “Such proceeds will be utilised for the day-to-day working capital requirements of the GCB group,” it told Bursa Malaysia last Friday. The company said that it had fixed the exercise price for the warrants at RM2, which was 9.29% or 17 sen over the theoretical ex-price after the proposed bonus issue of RM1.83 per share, based on the five-day volume weighted average price of RM2.44. (StarBiz)

JCorp may sell land, property to pare down debts
Johor Corp is considering selling various assets including some landbank, properties and plantation assets to partly repay its current RM3.6bn debt which is due for repayment in July next year. The state investment arm first plans to bring down the debt level of RM3.6bn to a “sustainable level” of between RM1bn and RM1.5bn following a debt restructuring exercise, its newly appointed president and chief executive Kamaruzzaman Abu Kassim said. That would mean that it needs to raise at least RM2.1bn by 2012. “About 70% (source of funding) for the RM2.1bn needed has already been identified and this includes selling some of our assets,” he said at a meeting with the media last Friday. (StarBiz) 

20110110 0854 Global Market Related News.

China 2010 soybean imports record 54.8m T
BEIJING, Jan 10 (Reuters) - China's soybean imports in 2010 totalled a record 54.8 million tonnes, up 28.8 percent from the same period last year, the General Administration of Customs said on Monday.
In December alone, the country imported 5.43 million tonnes of the crop, down 0.9 percent on the month but up 14 percent on the year.

US corn futures rise ahead of USDA report
SYDNEY, Jan 10 (Reuters) - U.S. corn, wheat and soybean futures rose on Monday ahead of a monthly U.S. Department of Agriculture (USDA) report due on Wednesday, which is expected to show a downward revisions in U.S. stockpiles and lower global production estimates.
Chicago Board of Trade (CBOT) corn for March delivery led the market, rising 0.9 percent to $6.00-1/4 per bushel, sitting close to its highest price since mid-2008.Corn broke through $6 per bushel on Friday but ended down 7 cents at $5.95 per bushel after a disappointing U.S. jobs report.

US oil prices up 1.5 pct, above $89/bbl on Alaska pipeline leak
SINGAPORE, Jan 10 (Reuters) - Oil surged almost $2 on  Monday to within 2 cents of $90 a barrel after a leak shut an  Alaskan pipeline that carries 12 percent of U.S. crude output.
"The refineries in PADD 5 might be able to obtain supplies from overseas. The longer term implication of such leaks would be mounting public scrutiny on the regulation on maintenance of oil production and distribution infrastructure," said Chen Xin Yi, associate vice president at Barclays Capital in Singapore.

China December crude oil imports down 1.9 pct on yr
BEIJING, Jan 10 (Reuters) - China, the world's second-largest crude buyer, imported 1.9 percent less crude in December from a year earlier at 4.91 million barrels per day (bpd), data showed, as refiners trimmed production as the cost of crude climbed.
December imports brought China's 2010 total crude imports to a record 239.31 million tonnes or 4.79 million bpd, up 17.5 percent from 2009, data from China's General Administration of Customs showed.

Alaska pipeline closed, no restart date set
ANCHORAGE, Alaska, Jan 9 (Reuters) - The Trans Alaska  Pipeline was shut for a second day on Sunday because of a  leak, with no indication of when it would reopen, sending oil  prices higher on fears that a prolonged closure could restrict  U.S. supplies.
The leak was discovered at the start of the pipeline in Prudhoe Bay early Saturday, forcing oil companies to cut production to 5 percent of their average 630,000 barrels per day.

Gold edges up on euro zone concerns, physical demand
SINGAPORE, Jan 10 (Reuters) - Spot gold edged higher on Monday, after losing 3.5 percent in the first week of 2011, as fears over the euro zone debt crisis buoyed appetite for bullion, and bargain hunting in the physical market provided support. 
"For the immediate short term, gold is likely to be rangebound. Today's support is $1,360," said Ong Yi Ling, an  analyst at Phillip Futures.

Euro stuck at 4-month low vs dollar; stocks flat
HONG KONG, Jan 10 (Reuters) - Mounting fears over  sovereign debt in the euro zone kept the euro tethered to  four-month lows against the dollar on Monday, with investors  nervous ahead of a flurry of bond sales from the region's  weaker states.
"Clearly the sovereign debt issue is still there and the market is quite happy to just sell euros," a trader at a U.S. investment bank said.

OIL: Oil surges towards $90 on Alaska pipeline shutdown
SINGAPORE, Jan 10 (Reuters) - Oil surged towards $90 on  Monday after a leak shut an Alaskan pipeline that carries 12  percent of U.S. crude output.
The Trans Alaska Pipeline was shut down on Saturday with  no indication of when it would reopen after a leak discovered  at Prudhoe Bay, forcing oil companies to cut output to 5  percent of their daily average of 630,000 barrels.

COMMODITIES: 1st 2011 week down; oil, metals lose 4 pct
NEW YORK, Jan 7 (Reuters) - Oil and gold erased Friday's early gains and joined copper to end the week almost 4 percent lower after a strong dollar cut short the rally that gave commodities a late but sharp boost in 2010.
"It shows that the U.S. is still facing severe problems, and it will take a bit of time before it recovers to pre-crisis levels," said Daniel Briesemann, commodities analyst at Frankfurt-based Commerzbank.

GLOBAL MARKETS: US jobs report can't lift stocks; euro suffers
NEW YORK, Jan 7 (Reuters) - The euro fell to a nearly four-month low against the dollar on Friday after the United States reported a surprisingly strong decline in its unemployment rate, but disappointment over the number of jobs added drove Treasuries higher and weighed on stocks.
"You can't ignore the fact that, regardless of a disappointing payrolls outcome, U.S. growth is still looking better than Europe, and the euro sovereign stress is still  there," said Richard Franulovich, senior currency strategist at Westpac in New York.

OPEC may hike oil output if price hit $110-official
KUWAIT, Jan 9 (Reuters) - Speculation could push oil prices to rise to $110 per barrel within a few weeks, which may prompt OPEC to raise production, a member of Kuwait's Supreme Petroleum Council (SPC) said on Sunday.
"Demand will increase slightly, but this increase in price is usually technical, due to analysts' forecasts and speculations," Imad al-Atiqi, a member of the country's highest oil policy body, told Reuters in a telephone interview.

Alaska pipeline shut down after leak discovered
ANCHORAGE, Alaska, Jan 8 (Reuters) - The Trans Alaska Pipeline shut down on Saturday after a leak was discovered at the intake pump station at Prudhoe Bay, constricting supply in one of the United States' key oil arteries.
Alyeska Pipeline Service Co., the operator of the 800-mile (1,280 kilometre) line which runs from the Prudhoe Bay oilfield to the tanker port of Valdez, said the leak was discovered Saturday morning. Oil producers are in the process of cutting output to 5 percent of the normal rate of around 630,000 barrels per day.

Oil Rises After Alaskan Pipeline Shutdown Halts 95% of North Slope Output (Bloomberg)
Oil climbed for the first time in three days after an Alaskan crude pipeline was shut following a leak and a government report showed a decline in the jobless rate in the U.S., the world’s biggest oil user.

China's Reserves Set for $2.8 Trillion Mean Tightening (Bloomberg)
China’s foreign-exchange reserves probably rose 4 percent to $2.76 trillion in the fourth quarter, adding to pressure on the central bank to drain cash from the economy and allow the yuan to strengthen.

US jobless claims near 2 1/2 yr low for past month
WASHINGTON, Jan 6 (Reuters) - New U.S. claims for jobless benefits moved higher last week, but a decline in the four-week average to a nearly 2-1/2-year low suggested the trend toward a better labor market remains intact.
Initial claims for state unemployment benefits increased 18,000 to a seasonally adjusted 409,000, the Labor Department said on Thursday, above economists' expectations for 400,000.

PRECIOUS-Gold slips 1 pct as dollar rises ahead of U.S. data
LONDON, Jan 7 (Reuters) - Gold slid 1 percent to a near six-week low in Europe on Friday as the dollar hit a four-month high versus the euro, but moves in the metal were muted ahead of keenly anticipated U.S. payrolls data later in the day.
Spot gold  touched a low of $1,356.50 an ounce, its weakest since Nov. 29, and was bid at $1,359.05 an ounce at 1310 GMT against $1,371.15 late in New York on Thursday. The metal is on track for its worst weekly decline since May last year.

FOREX-Euro hits 4-mth low, dlr prices in strong US jobs
LONDON, Jan 7 (Reuters) - The dollar rose to a four-month high versus the euro and a one-month high against a basket of currencies on Friday ahead of U.S. jobs data, although dollar bulls risked disappointment if it falls short of expectations.
A sell-off in peripheral euro zone government bonds before a flurry of supply next week, an EU proposal that could force those who lend to banks to bear big losses should they fail and weaker-than-expected German retail sales numbers all combined to knock the single currency lower.   The dollar rose against a basket of major currencies to 81.076, its highest since early December. The index has gained over 2 percent this week, benefiting from a slew of upbeat U.S. data including a report that showed a record number of private sector jobs were created in December.

Firmer dollar weighs on US wheat, corn
MANILA, Jan 7 (Reuters) - U.S. corn and wheat futures retreated for a second traight session  as a stronger dollar blunted a rally at the start of the year, with corn on track to post its first weekly drop since November.
"The main influence we're looking at in terms of this morning's trade remains the currency market and the focus on the payrolls data," said Luke Mathews, commodity strategist at Commonwealth Bank of Australia.

Euro hits 4-mth low ahead of US jobs data
LONDON, Jan 7 (Reuters) - The euro fell to a four-month low against the dollar head of U.S. jobs data and next week's bond issues from euro zone peripheral countries, while world stocks and copper eased.
"The consensus estimates suggest that U.S. non-farm payroll figures will show a rise of about 175,000, but the whisper figure is far higher than that. I think you have some room for disappointment," said Koen De Leus, strategist at KBC Securities in Brussels.

Record high food prices stoke fears for economy
SINGAPORE/LONDON, Jan 6 (Reuters) - Record high food  prices are moving to the top of policymaker agendas, driven by  fears it could stoke inflation, protectionism and unrest and  dent consumer demand in key emerging economies.
The United Nations' food agency (FAO) said on Wednesday  that food prices hit a record high last month, above 2008  levels when riots broke out in countries as far afield as  Egypt, Cameroon and Haiti.

20110110 0852 Soy Oil & Palm Oil Related News.

ITS CPO export up 0.75% to 300,250 tonnes for the period of 1~10 Jan 2011.
SGS CPO export down 5.7% to 331,655 tonnes for the period of 1~10 Jan 2011.

MPOB Official Data for the month of Dec 2010 vs Nov 2010
Export down 14.6%
Stock down 1.28%
Output down 15.5%

Soy product futures stumbled in step with losses in soybeans, succumbing to traders taking profits on prior gains. Traders trimmed risk from the market, as improved crop conditions in Argentina, the world leader in soy product exports, and slowing demand took some edge off prices, analysts said. CBOT March soyoil ended 0.59c or 1% lower at 56.82 cents per pound, and March soymeal traded $6.40 or 1.7% lower at $362.70 a short ton. (Source: CME)

Argentina Soy Output Set To Plunge Due To Drought -Analyst (Source: CME)
An ongoing drought in Argentina is devastating the country's soybean crop and production from the world's third-largest soy exporter is going to drop precipitously this season, according to local agricultural consultants AgriPac. Early forecasts for Argentina's soy production had predicted up to 55 million metric tons this season, but now the crop isn't likely to top 40 million tons, AgriPac analyst Pablo Adreani said. Drought damage to Argentina's soy and corn crops stoked an international grain rally in December, with prices touching two-and-a-half year highs due to the prospects of failed crops in the region. "Only a miracle can stop the damages trend in the South American soybean crop," Adreani said. The miracle farmers are praying for is a major storm that soaks the region's parched fields.
But the odds are against it this season. Hot, dry weather is expected over the next two months due to the La Nina weather phenomenon. La Nina involves a cooling of ocean temperatures off the Pacific coast of South America and generally brings dry weather to the south and showers to the north of the continent. This season's La Nina is among the most intense in decades, according to the Buenos Aires Cereals Exchange. La Nina also threatens to dry up crops in Paraguay--a distant fourth in terms of world soybean exports--and in Uruguay, a small, but growing soybean producer. About 20% of Paraguay's crop is at risk, while almost a third of Uruguay's crop is suffering from the drought, Adreani said. Argentina's corn crop has already suffered heavy damage from the drought, although light showers over the past week have helped to stem the decline in the world's second-leading corn exporter.
Adreani said that Argentina's corn production is unlikely to top 17.5 million tons this season, down sharply from early expectations for about 25 million tons.

Palm eases, tracks soy complex; data eyed
KUALA LUMPUR, Jan 7 (Reuters) - Malaysia's crude palm oil futures hit one-week lows  as traders squared profits amid losses in the overseas soy complex, although worries over a supply shortage continued to weigh.
"The market is likely to be stable until early March due to an Indian festival later in this month and Chinese New Year in early February," said a trader in Kuala Lumpur.

India's Dec oilmeal exports rise for 6th straight month
NEW DELHI, Jan 7 (Reuters) - India's oilmeal export jumped 94 percent in December from a year earlier, its sixth straight monthly rise, on robust demand from traditional buyers in Japan, Vietnam and Indonesia, data from a leading trade body showed.
The oilmeal exports from India, Asia's leading supplier of the animal feed, were 55 percent higher month-on-month at 765,954 tonnes, the Solvent Extractors' Association of India (SEA) said in a statement on Friday.