20110307 1808 FCPO EOD Daily Chart Study.

FCPO closed : 3695, changed : +35 points, volume : lower.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : recovering, seller closing position.
Support : 3650, 3620, 3550, 3500 level.
Resistance : 3700, 3720, 3750 level.
Comment :
First day of Palm Oil Conference FCPO closed recorded gains for the 5th day in a row with quiet volume participation as crude oil price continue to trade firmer while soy oil trading little lower.
Daily chart formed a small up bar candle positioned little above middle Bolligner band resistance level after market opened unchanged and lifting higher to closed near the high of the day.
Chart reading still suggesting a correction range bound downside biased market development testing support and resistant level with MACD indicator about to cross up.
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.

20110307 1728 FKLI EOD Daily Chart Study.

FKLI closed : 1520 changed : unchanged,  volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : rising, buyer taking small exposure.
Support : 1515, 1500, 1485 level.
Resistance : 1530, 1540, 1550, 1580 level.
Comment :
FKLI closed recorded small loss with slow volume transacted doing 4 points premium compare to cash market while regional market ended mixed ans last Friday US market closed lower.
Daily chart formed an up doji bar candle with long lower shadow after market opened gap down, tested lower followed by last half and hour buyer push to recovered all earlier loss to closed unchanged positioned in between middle and upper Bollinger band level with the bandwidth turning inwards.
Daily chart reading still suggesting a side way range bound market development testing support and resistance 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.

20110307 1020 Palm Oil Conference 2011 Breaking News.

POC : MPOB Chairman :
2011 Palm Oil prices to average @ RM3,600/t vs 2010 average @ RM2,700/t.
2011 Palm Oil Output Forecast of 17.6 mln tonnes on strong rainfall, higher maturing acreage.
2011 Feb ~ Apr Palm Oil ending stocks to range between 1.3 mln ~ 1.4 mln tonnes.

20110307 0930 Global Economic Related News.

Economic: Malaysia's growth target remains despite Mideast turmoil. The Government is firm in achieving its 6% annual growth target this year despite the civil unrest in some Middle Eastern countries. The target was attainable by ensuring investments committed to Malaysia were implemented efficiently. (Source: The Star)   

U.S. Factory orders climbed in January by the most in more than four years as demand for commercial aircraft rebounded after slumping the previous month. Bookings for manufacturers' goods increased 3.1%, the most since September 2006, after a revised 1.4% gain in December that was larger than previously estimated, figures from the Commerce Department showed in Washington. Orders excluding transportation equipment also advanced, propelled by a jump in demand for non-durable goods that may reflect higher commodity prices. (Source: Bloomberg)

U.K: House prices fell in February, erasing a gain the previous month, according to Halifax, which said the economic outlook may damp property demand this year. Prices fell 0.9% from January, when they rose 0.8%, the mortgage unit of Lloyds Banking Group Plc said in a statement in London. The average value of a home last month was GBP162,657 (USD264,431) and the lender sees prices falling 2% this year. (Source: Bloomberg)

Spain: Industrial production rose in January by the most in almost a year as the recovery from an almost two-year recession accelerated. Output at factories, refineries and mines rose 3.8% from a year earlier, adjusting for the number of working days, after falling 0.1% in December, the National Statistics Institute in Madrid said in an emailed statement. That was the most since March 2010. (Source: Bloomberg)

Indonesia: Bank Indonesia left borrowing costs unchanged, refraining from a second increase in a row while signaling the pause may be temporary as inflationary pressure remains elevated. The central bank kept its benchmark reference rate at 6.75%, it said in a statement in Jakarta. (Source: Bloomberg)

Philippines: Inflation accelerated in February to the fastest pace in nine months as food prices climbed, reducing the central bank's scope to keep the benchmark interest rate at a record low. Consumer prices increased 4.3% from a year earlier, after a revised 3.6% gain in January, the National Statistics Office said in Manila. (Source: Bloomberg)

Vietnam: London-based HSBC cut its estimate for Vietnam's GDP growth to 7% in 2011 from 7.5% before, and reduced the 2012 prediction to 7.4% from 7.8%. Last year, the Southeast Asian nation's economy expanded 6.8%, the fastest since 2007. (Source: Bloomberg)

Australia: Construction contracted in February for a ninth straight month as higher borrowing costs weighed on housing construction, a private survey showed. The construction performance index was 44.6 last month from
40.2 in January, according to a survey by the Australian industry Group and the Housing Industry Association released in Sydney. A reading below 50 indicates the industry is shrinking. (Source: Bloomberg)   

China: Key aim is taming prices as Wen eyes social stability
China will target inflation as the top economic priority this year and narrow the gap between rich and poor as the government seeks to maintain social stability, Premier Wen Jiabao told lawmakers in Beijing. “We cannot allow price rises to affect the normal lives of low-income people,” Wen said in his state-of-the-nation report to the annual meeting of the National People’s Congress yesterday. (Bloomberg)

China: Plans RMB900bn budget deficit in 2011
China plans to run a budget deficit of RMB900bn (USD137bn) in 2011, the Ministry of Finance said. Fiscal spending is targeted to rise 11.9% to RMB10trn and revenue will grow 8% to RMB8.97trn, the ministry said in a budget report presented to the National People’s Congress. (Bloomberg)

Australia: Construction contracted for ninth month in February
Australia’s building industry contracted in February for a ninth straight month as higher borrowing costs weighed on housing construction, a private survey showed. The construction performance index was 44.6 last month from 40.2 in January, according to a survey by the Australian Industry Group and the Housing Industry Association released. A reading below 50 indicates the industry is shrinking. (Bloomberg)

US: Jobless rate decreased to 8.9%, lowest since April 2009
Joblessness in the US unexpectedly fell to 8.9% in February, the lowest level in almost two years, and employers boosted payrolls amid growing confidence in the expansion. The rate dropped for a third straight month and employment climbed by 192,000, according to Labor Department figures released. The median estimate in a survey of economists projected unemployment would climb to 9.1%. (Bloomberg)

US: Retail sales probably climbed in February
US retail sales probably climbed in February by the most in four months, spurred by job growth and more seasonable temperatures, economists said before a report this week. The projected 1% gain would follow a 0.3% January increase, according to the median forecast of 63 economists surveyed ahead of Commerce Department figures on 11 March. (Bloomberg)

20110307 0929 Malaysia Corporate Related News.

AirAsia: Indonesia IPO to raise USD200m, Sarawak offers land to AirAsia for LCCT. AirAsia Indonesia, a unit of AirAsia Bhd, aims to raise USD150m to USD200m via an initial public offering (IPO) in 4Q11. Separately, the Sarawak government has offered a piece of land next to the Kuching International Airport to AirAsia Bhd to build a dedicated low-cost carrier terminal (LCCT). (Source: The Star)

TRC Synergy: Expects new contracts. TRC Synergy Bhd (TRC) is expected to increase its order book this year with more contract wins, mainly from road projects in East Malaysia and also potential involvement in MRT (mass rapid transit) project. (Source: Malaysian Reserve)

Banking: Further tightening by Bank Negara in mortgage lending sector. Bank Negara would be taking pre-emptive measures in the mortgage lending sector to reduce risks. Banks will have to hold more capital for mortgage loans. Mortgages with loan-to-value (LTV) ratio of more than 90% will have to carry weightage of 100%, compared with 75% previously. The risk weightage for LTVs that are less than 80% remains 35% and for those between 80% and 90% remains at 50%. (Source: The Edge Financial Weekly)

Manufacturing: Investments hit RM4.6b. The manufacturing sector saw approved investments totalling RM4.6b in 67 projects in January. The largest domestic investment came from the oil and gas sector, led by Malaysia Marine and Heavy Engineering Bhd with a total investment of RM2.3b. Foreign investments approved totalled RM600m with Singapore, France, Japan, United Kingdom and India accounting for the major source of investments. (Source: The Star)

RM7.5bn project for DRB-HICOM
DRB-Hicom Bhd is poised to receive a letter of award to supply 257 units of armoured personnel carriers (APCs) worth up to RM7.5bn from the overnment, this week, people with knowledge of the project financing said. Business Times understands that a group of banks are preparing to provide partial financing for the project. A group of banks led by Maybank, RHB Bank and AmBank are helping to arrange the syndicated loan and other financing, which could be worth as much as RM3.5bn. Under the terms of the contract, DRB-HICOM will deliver the armoured-wheeled vehicles to the Government by 2016. The group will come out with the first vehicle sometime early next year. DRB-HICOM's defence unit, DRB-HICOM Defence Technologies SB (DEFTECH), will be undertaking the project. DEFTECH is to build 12 variants of the APC from the base vehicle, including personnel carrier, anti-tank weapon carrier, command and control and anti-aircraft weapon vehicles. "The contract is for a seven-year period," said a finance executive familiar with the massive project. (BT)

Germany-based TMW to sell 3 malls in Malaysia
MW Asia Property Fund, which is based in Germany, is selling three of its shopping complexes in Malaysia which it purchased in 2005 for an estimated RM500m. The shopping complexes are Ipoh Parade in Perak, Klang Parade in Selangor and Seremban Parade in Negri Sembilan. International property consultant Rahim & Co, which has been appointed as the exclusive agent to handle the deal, declined to comment when contacted. The fund is managed by Pramerica, the real estate investment management business of Prudential Financial Inc from the US. It is understood that the closing date for the tender is tomorrow. It is unclear how many bids have been submitted, but sources said that the tender had attracted interests from abroad. The fund bought the three properties - under the operating companies Lion Klang Parade Sdn Bhd, Lion Seremban Parade SB and Lion Ipoh Parade Sdn Bhd - for RM340m in 2005 from the Lion group. (BT)

Maxis in ‘final stages’ to wrap up deal with Baraka Telecom
Maxis Bhd, the largest mobile phone network company in Malaysia, is close to securing a three-year deal to provide telecommunication services to Kuwait’s Baraka Telecom SB in Malaysia. The Malaysian Reserve has learnt that negotiations between the two parties are now in the ‘final stages’ and a formal agreement would be signed ‘soon’ that would mark Baraka’s return to the so-called mobile virtual network operator (MVNO) business here in Malaysia. It is understood that Baraka Telecom, a unit of Kuwait-based Reach Telecom Holding KSCC, seeks to provide Shariah-compliant telecommunication services to the public although exact details of the plan are still sketchy. (MalaysianReserve)

Sunway secures RM258m Legoland contract
Sunway Holdings wholly-owned subsidiary, Sunway Construction SB, has secured a RM257.97m contract from IDR Assets SB to build package four of the Legoland Malaysia Theme Park development in Johor. The company announced on Bursa Malaysia last Friday that the project is scheduled to be completed in 2 June 2012. IDR Resorts SB, a member company of Iskandar Investment, in responsible for the development of Legoland Malaysia, in partnership with Merlin Entertainments. (MalaysianReserve)

Fajarbaru bags two contracts worth RM150m
Fajarbaru Builder Group Bhs, a construction and engineering company, has secured two contracts worth RM150.05m as the subcontractor to work on the light rail transit (LRT) extension. Both contracts would last 21 months and would contribute to earnings and net asset from financial year ending 30 June 2012 o 2013. The first contract, worth more than RM87m, would see Fajarbaru working on the Kelana Jaya Line of the LRT involving construction and commissioning of three stations as well as all other related works. Meanwhile, the second contract is valued at RM62.67m involving two stations and other associated project along the extended Ampang Line. (MalaysianReserve)

20110307 0847 Global Market Related News.

Gold near record, silver at 31-year peak on Libya
SINGAPORE, March 7 (Reuters) - Gold rose to near a record high and silver jumped to its highest in more than three decades on inflation worries triggered by rising oil prices as widening clashes in Libya deepened fears the country was on the brink of a civil war.
"If we do see tension escalating further, then we could witness a new high in gold. Besides Libya, I think investors will also be looking at other countries within the Middle East. The example will be Saudi Arabia," said Ong Yi

Oil hits 2-1/2 yr highs as Libya turmoil deepens
HONG KONG, March 7 (Reuters) - Crude oil prices rose to 2-1/2 year highs on heightened worries about supply disruption due to deepening unrest in Libya, while Asian stocks slipped as concerns about the Middle East and higher energy prices weighed on equities.
Asian markets have see-sawed following volatile oil prices in recent weeks, but the MSCI ex-Japan index is barely a percent away from a 2-1/2 year peak tested in January, indicating markets have been largely resilient to the Libyan crisis. 

India commodity exchange trade to jump
MUMBAI, March 3 (Reuters) - Volumes on India's commodity exchanges could jump 20 percent in the year to March 2012, as banks and foreign institutions start trading and mini-contracts attract farmers to take part, the market regulator said.
Legislation to allow banks and foreign players onto India's markets should be cleared in July 2011, B.C. Khatua, head of the Forward Markets Commission (FMC), told Reuters in an interview late on Wednesday.

US data point to strengthening growth, jobs market
WASHINGTON, March 3 (Reuters) - The number of Americans filing new claims for jobless aid hit the lowest level in more than 2-1/2 years last week and service sector hiring picked up in February, signs the labor market recovery was quickening.
Another report on Thursday confirmed business productivity picked up a bit in the fourth quarter, but it also underscored a slowing trend that suggested employers may have to step up hiring even further.

Global PMI at 5-year high but upturn comes at a cost
LONDON, March 3 (Reuters) - Global businesses grew at their fastest pace in almost five years last month but also witnessed increasing price pressures, a purchasing managers' survey showed on Thursday.
The JP Morgan Global All-Industry Output Index, which combines manufacturing and services data, rose to 59.4 from January's 58.3, its highest reading since April 2006.

Emerging markets dash hits commodity funds -Lipper
LONDON, March 3 (Reuters) - Newly-launched commodity funds attracted over 1.8 billion euros ($2.50 billion) in Europe in 2010 but the sector as a whole suffered due to an investor dash for emerging markets products, Lipper FMI said on Thursday.
Total commodity funds had estimated net sales of 6.89 billion euros in Europe in 2010, mutual fund market research company Lipper FMI said in its annual review of the European funds industry.

CIC official: not heard of plans to buy Glencore stake
BEIJING, March 4 (Reuters) - A senior official at China's $300 billion sovereign wealth fund said on Friday that he had not heard of any plans for the fund to buy a stake in Glencore International AG, the world's largest commodities trader, which is aiming for a potential stock market listing.
Glencore's possible initial public offering could value it at about $60 billion and the deal could be a fee bonanza for investment bankers.

PRECIOUS-Gold rises towards $1,420/oz ahead of U.S. payrolls
LONDON, March 4 (Reuters) - Gold firmed in Europe on Friday, recovering some of the previous session's hefty losses as unrest in North Africa supported demand for the metal as a haven from risk, though moves were muted ahead of key U.S. payrolls data.
Spot gold  was bid at $1,418.55 an ounce at 1046 GMT, against $1,415.59 late in New York on Thursday. U.S. gold futures for April delivery  rose $2.50 to $1,418.90. Gold fixed at $1,418.00 an ounce at 1030 GMT.

FOREX-Euro pushes up on ECB view, payrolls awaited
LONDON, March 4 (Reuters) - The euro hit a four-month high against the dollar on Friday on expectations euro zone interest rates may rise next month, while investors waited to see if an expected improvement in U.S. jobs data would offer respite to the U.S. currency.
The euro edged up to $1.3977 on electronic trading platform EBS a day after European Central Bank President Jean-Claude Trichet stunned investors by saying a rate rise in April was a possibility in its drive to fight inflation risks.

Jobs, oil and rates vie for investor focus
LONDON, March 4 (Reuters) - Hopes of an improved U.S. employment picture lifted shares on Friday, but the prospect of higher interest rates in Europe and a rising oil price kept other world markets on edge.
"Any shortfall in the U.S. non-farm payrolls, or any flare-ups on the geopolitical front could see the risk appetite ebbing away once again," said Chris Weston, institutional trader at IG Markets.

20110307 0846 Soy Oil & Palm Oil Related News.

Soy product futures finished mixed, with soymeal stumbling with corn. Soymeal was pressured by weakness in feed grain corn, as meal has been encumbered by increased competition from distillers dried grain, a byproduct of ethanol production, analysts said. Soyoil futures settled at their highest level in three-weeks, supported strength in crude oil futures and strong demand for world vegoils, analysts said. CBOT May soyoil ended 0.71 cents or 1.2% higher at 59.48 cents per pound, and May soymeal traded $2.80 or 0.8% lower at $369.70 a short ton. (Source: CME)

Malaysia Palm Oil Conference Issues: Uncertain Demand, Rising Supply (Source: CME)
Rising food prices, concerns about demand aggravated by tensions in the Middle East, and improving global supplies of vegetable oils are some of the issues that will be in focus when Bursa Malaysia's Palm Oil Conference and Price Outlook opens. The three-day conference will bring producers, industry analysts, investors and consumers to assess the palm oil market, where prices have fallen 6% so far this year. Crude palm oil production in Malaysia and Indonesia, which account for four-fifths of global palm oil output, is improving after persistently bad weather in 2010--beginning with an El Nino-related drought and ending with a La Nina-related excess of rain--induced tree stress, sapping yields and cutting output. Output in Malaysia, which has declined for two consecutive years, may show a modest increase of around 4% this year to 17.6 million tons, Commodities Minister Bernard Dompok said. Output reached 17 million tons in 2010.
Improving crop prospects in both countries comes as South America is gearing up for a bigger soybean crop, as weather conditions improve and Brazil's soybean cultivation area expands. Brazil could harvest a record crop of 70 million tons of soybeans in 2011, according to Hamburg-based OilWorld, up from 68.6 million tons in 2010. "The major influence on (international vegetable oil) prices this year continues to be the supply factor...there may be a very large bean crop (from Brazil)," said Emily French, managing director at agri-business consulting firm ConsiliAgra in the U.S. Consumption of palm oil in China--one of the world's largest vegetable oil buyers--fell 12% in 2010 to 5.7 million tons as surging palm oil prices caused the tropical oil to lose market share to its rival, soyoil. China's palm oil demand may improve in 2011, as its government, concerned with rising food prices, may cut import tariffs on a range of products to stimulate imports, Vice-Minister of Commerce Zhong Shan said recently.

Argentine grains exchange holds soy harvest outlook
BUENOS AIRES, March 3 (Reuters) - Argentina's 2010/11 soy harvest is seen stable at 48.8 million tonnes, with crops in good shape despite drier weather over the last week, the Buenos Aires Grains Exchange said on Thursday.
Argentina, the world's third-biggest soy supplier, was affected by dry weather earlier this season, but heavy rains from mid-January onward have brightened the outlook for the harvest of the oilseed.

Palm oil prices rise to 1-wk high, tracks crude higher
JAKARTA, March 4 (Reuters) - Malaysian palm oil futures climbed to a one-week high with sentiment driven by rising crude prices as the crisis in Libya and parts of the Middle East showed little sign of resolution.  "Palm oil is marginally higher," said one trader. "It is supported by steady crude oil. The revival of biodiesel is coming into play."

Malaysia's Feb palm oil stocks fall to 19-month lows
KUALA LUMPUR, March 4 (Reuters) - Malaysia's February palm oil stocks probably dropped to 19-month lows as overall demand outpaced almost flat production, a Reuters survey showed on Friday.
Stocks in the world's No. 2 producer probably fell 2.4 percent to 1.38 million tonnes, the lowest level since July 2009, but the pace of the decline has slowed, the median survey of six plantation houses showed.

Brazil on brink of new soy boom, easing food panic
SAO PAULO, March 4 (Reuters) - When soy futures hit record highs in 2008, Brazilian farmers were in no position to capitalize on the boom. Crippling debts, wild currency swings and high fertilizer and fuel costs rendered them unwilling or unable to sow more acres.
Today, although prices are almost 20 percent lower, conditions have rarely been better. Farmers, now flush with cash, are preparing the first sustained expansion of the country's soy crop after a half decade of stagnation.