Monday, April 25, 2011

20110425 1806 FCPO EOD Daily Chart Study.

FCPO closed : 3360, changed : -10 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : rising, buyer taking small position.
Support : 3350, 3300, 3270, 3250 level.
Resistance : 3420, 3450, 3470, 3500 level.
Comment :
FCPO closed recorded marginal loss with slower volume transacted after export data released showing decline but improved demand while soy oil and crude oil currently trading higher.
Daily chart formed a down doji bar candle closed above middle Bollinger band level after market opened and traded little higher before headed south tested below support level and recovered partial of intraday loss to closed off the low of the day.  
Side way range bound market ahead 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.

20110425 1725 FKLI EOD Daily Chart Study.

FKLI closed : 1524 changed : +1.5 point, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : turned upwards, seller still holding on.
Support : 1515, 1500, 1485, 1470 level.
Resistance : 1530, 1540, 1550, 1565 level.
Comment :
Boring FKLI closed recorded small gain with little higher but relatively low volume changed hand doing almost par to cash market that closed recorded marginal gain while regional markets traded mixed due to lack of fresh catalyst and some market closed for Easter holiday.
Daily chart formed a doji bar candle closed position below middle Bollinger band level after market opened little higher, tested higher resistance level and slide downwards before recovered slightly to closed near opening price.
Chart reading still call for 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.

20110425 1403 Global Economic Related News.

Portugal: 2010 Budget deficit was revised to 9.1% of GDP from 8.6% after the government added three highways onto its accounts, the National Statistics Agency said in an emailed statement. The government in March reported an 8.6% deficit for 2010, missing its target of 7.3%. Accounting changes ordered by Eurostat, the European Unions statistics agency, forced the state to add more than EUR2b (USD2.9b) to the 2010 deficit for impairment costs stemming from the 2008 seizure of Banco Portugues de Negocios SA and also for charges linked to the public-transportation system. (Source: Bloomberg)

China: Yuan forwards traded at the biggest premium to the spot rate in more than five months, reflecting speculation the central bank will allow faster currency gains to help tame inflation. More rapid appreciation may be a tool for curbing prices, Wang Yong, a professor at the People's Bank of China's training center, wrote in a commentary published in Securities Times newspaper. The central bank set the yuan's reference rate 0.11% stronger at 6.5156 per USD, the highest level since a dollar peg was scrapped in July 2005. (Source: Bloomberg)

Taiwan: Unemployment rate declined to a 29-month low in March as economic expansion encouraged companies including Chang Hwa Commercial Bank to hire. The seasonally adjusted rate fell to 4.42% from 4.59% in February, data released by the statistics bureau in Taipei showed. That's the lowest level since October 2008. (Source: Bloomberg)

Vietnam: Inflation accelerated to the fastest pace since 2008, putting pressure on the government to tighten policy further after almost doubling a key interest rate in less than six months. Consumer prices climbed 17.51% in April from a year earlier, according to figures released by the General Statistics Office in Hanoi. The rate is the highest since December 2008 and compares with the 13.89% pace last month. Prices rose 3.32% in April from March. (Source: Bloomberg)     

20110425 1402 Malaysia Corporate Related News.

KLCI chart reading : side way range bound.

KLK: Sells remaining stake in Callebaut. KLKs wholly-owned subsidiary, KL-Kepong Industrial Holdings Sdn Bhd, has disposed of its remaining 40% interest consisting of 14m ordinary shares of RM1 each in Barry Callebaut Malaysia Sdn Bhd to Luijckx BV for RM117m cash. (Source: Bursa Malaysia)

O&G: MMHE keen on Sime Darbys O&G assets? Malaysia Marine and Heavy Engineering Bhd (MMHE) is believed to be looking at taking over either some or all of the assets of Sime Darbys oil and gas unit. (Source: The Edge Financial Weekly)

RHB: Nod unlikely for private firm. Bank Negara is believed not likely to approve the entry of a private equity firm into RHB Capital Bhd, following the troubled history of Hong-Kong based Primus Pacific Partners at EON Bank. (Source: The Star)

Ramunia: Looking at UMWs rigs? Ramunia Holdings Bhd could be eyeing some UMW Holdings Bhds O&G assets which is driven by Lembaga Tabung Haji, Ramunias main shareholder. (Source: The Edge Financial Weekly)

Sarawak Plantation: Salcra may become largest shareholder. The Sarawak Land Consolidation and Rehabilitation Authority (Salcra) could be eyeing a 30.3% stake in Sarawak Plantation Bhd now held by private company Cermat Ceria Sdn Bhd. (Source: The Edge Financial Weekly)

Pos Malaysia: Khazanah sells stake to DRB-HICOM. Khazanah Nasional Bhd will divest its strategic stake of 32.2% in Pos Malaysia Bhd to DRB-Hicom Bhd at RM3.60 per share or RM622.8m. (Source: The Star)

Jerneh Asia: To push for special dividend? Jerneh Asia Bhd, which essentially announced a proposed reverse-takeover (RTO) exercise as part of its regularisation scheme last Thursday, can now seek to reward existing shareholders with a special dividend payout from the sale of its general insurance unit last year. (Source: The Star)   

20110425 1056 CPO Export Data.

ITS CPO export down 7.68% to 865,593 tonnes for the period of 1~25 Apr 2011.

SGS CPO export down 0.7% to 947,470 tonnes for the period of 1~25 Apr 2011.

20110425 0954 Global Commodities Related News.

Soy Oil chart reading : side way range bound.

Immediate-Delivery Gold Advances to Record $1,520 Per Ounce; Silver Climbs (Source: Bloomberg)
Gold for immediate delivery climbed to a record, advancing as much as 0.9 percent to $1,520 per ounce before trading at $1,513.57 per ounce at 7:46 a.m. in Singapore. Silver gained as much as 1 percent to $47.7400 per ounce.

Oil in New York Rises to Two-Week High as Middle East Violence Escalates (Source: Bloomberg)
Crude oil rose to the highest in two weeks in New York as renewed violence in the Middle East and Africa threatens to prolong supply disruptions. Futures gained as much as 0.4 percent after Syrian security forces detained at least 200 people following the killing of anti-government protesters and U.S. Senator John McCain said rebels in Libya need more assistance in the fight against Muammar Qaddafi’s forces. Saudi Arabia, holder of the world’s largest crude reserves, has no plans to raise production capacity, an oil official said.

Saudi Arabia to Keep Oil Production Capacity at 12.5 Million Barrels a Day (Source: Bloomberg)
Saudi Arabia, holder of the world’s largest crude oil reserves, has no plans to raise production capacity beyond 12.5 million barrels a day, a Saudi Arabian oil official said. Reports that the country may boost its output capacity to 15 million barrels a day aren’t true, the official said by telephone today, declining to be identified by name because he isn’t authorized to speak publicly.

Corn, Soybeans May Rise as Cold, Weather Slows U.S. Seeding, Survey Shows (Source: Bloomberg)
Corn and soybeans may rise this week as wet, cold weather in the U.S. Midwest threatens to delay planting of the nation’s two biggest crops, eroding yield prospects. Twenty-four of 31 traders and analysts surveyed from Tokyo to Chicago on April 21 said corn will rise, and 25 respondents forecast a gain for soybeans. Last week on the Chicago Board of Trade, corn futures for July delivery dropped 0.7 percent to $7.445 a bushel, and soybean futures for July delivery rose 3.5 percent to $13.8975 a bushel.

20110425 0951 Global Market Related News.

DJIA chart reading : upside biased.



Hang Seng chart reading : correction range bound little upside biased.

U.S. Growth Probably Slowed as Fuel Costs Rose (Source: Bloomberg)
The U.S. economy probably grew at a slower pace in the first quarter as a jump in gasoline prices caused consumers to cut back, economists said a report this week will show.

Coburn Says Medicare, Medicaid Must Be Part of Budget Talks (Source: Bloomberg)
Medicare and Medicaid programs must be part of the U.S. effort to reduce the budget deficit, Senator Tom Coburn said. “You can’t have Medicare out of the equation,” Coburn, an Oklahoma Republican and member of the Senate Budget Committee, said on NBC’s “Meet the Press” program broadcast today. “You can’t have Medicaid out of the equation. To lead on this issue and create a false predicate that says we can solve our problems without addressing our entitlements hurts the country.”

Profits Top Forecasts as Companies Wring Out More Savings (Source: Bloomberg)
First-quarter earnings have beaten forecasts so far, as companies from Apple Inc. to Novartis AG and LG Chem Ltd. wring more profit from operations worldwide and an economic pickup buoys sales.

Treasuries Advance Before Fed Meets on Bets Budget Efforts to Hurt Economy (Source: Bloomberg)
Treasuries rose for a second week as investors speculated that efforts to cut the Federal budget deficit may damp economic growth and awaited a policy statement next week from the Federal Reserve. Ten-year note yields fell to the lowest level in a month even as Standard & Poor’s put the U.S. government on notice that it risks losing its AAA credit rating. Gains were tempered by advances in stocks. The U.S. will sell $99 billion in notes in the coming week, and the Federal Open Market Committee opens its two-day meeting on April 26.

Treasuries Fail to Extend Two-Week Advance as U.S. Prepares Note Auctions (Source: Bloomberg)
Treasuries failed to extend a two- week gain as the U.S. prepared to auction $99 billion of notes over the next three days, starting with $35 billion of two-year debt tomorrow.

China Should Use Currency to Curb Inflation, Government Researchers Say (Source: Bloomberg)
Two prominent Chinese state researchers added to calls for the government to use the yuan to help curb inflation that accelerated to a 32-month high in March. “A moderate acceleration in the yuan’s appreciation would help China effectively deal with imported inflation”, Ba Shusong, a researcher at the State Council’s Development Research Center, said in Shanghai today. Wang Yong, a professor at the central bank’s training center, said policy makers should let the currency rise faster and widen its daily trading band by an “appropriate margin” in the second half of the year.

Japan Stocks Rise on Toyota Post-Quake Production Plan (Source: Bloomberg)
Japan’s Topix index rose for a fourth day led by Mitsubishi UFJ Financial Group Inc. after Credit Suisse Group AG raised the lender’s share price estimate. Tokyo Electric Power Co. rose on a report other utilities may be asked to share the cost of the Fukushima nuclear accident.

ECB’s Stark Says Debt Restructuring Risks Starting Crisis Exceeding Lehman (Source: Bloomberg)
European Central Bank Chief Economist Juergen Stark said a debt restructuring by a euro country risked triggering a banking crisis that could “worst case” exceed the effects of the failure of Lehman Brothers Holdings Inc., according to the transcript of an interview posted by German television station ZDF on its website. There is “no painless way” for countries that sought aid to reduce debt, while a restructuring may cut off the respective country from the financial markets for an unforeseeable time, Stark was quoted as saying.

U.K. GDP May Have Risen 0.5% in First Quarter as Economy Lacked Momentum (Source: Bloomberg)
Britain’s economy probably resumed growth in the first quarter with less momentum than needed to restore the pace of the recovery, economists say. Gross domestic product rose 0.5 percent after contracting the same amount in the fourth quarter, according to the median forecast of 27 economists in a Bloomberg News survey. The Office for National Statistics in London will publish the data at 9:30 a.m. on April 27.

Draghi Said to Be Seen by Sarkozy as Next European Central Bank President (Source: Bloomberg)
French President Nicolas Sarkozy considers Bank of Italy Governor Mario Draghi the leading candidate to succeed Jean-Claude Trichet at the helm of the European Central Bank, a person familiar with the matter said.

Portugal 2010 Deficit Revised Wider to 9.1% of GDP After Highways Included (Source: Bloomberg)
Portugal’s 2010 budget deficit was revised to 9.1 percent of gross domestic product from 8.6 percent after the government added three highways onto its accounts, the National Statistics Agency said today in an e- mailed statement. The government in March reported an 8.6 percent deficit for 2010, missing its target of 7.3 percent. Accounting changes ordered by Eurostat, the European Union’s statistics agency, forced the state to add more than 2 billion euros ($2.9 billion) to the 2010 deficit for impairment costs stemming from the 2008 seizure of Banco Portugues de Negocios SA and also for charges linked to the public-transportation system.

Australian Dollar Rises to Record on Prospects for Global Economic Growth (Source: Bloomberg)
The Australian dollar rose to a record high on prospects the global economy is improving. The currency climbed to $1.0776 as of 9:46 a.m. in Sydney from $1.0738 last week in New York.
Australia Needs to Make ‘Difficult’ Budget Decisions, Swan Says (Source: Bloomberg)
Australia needs to curb spending and make “difficult budget decisions” because tax revenue won’t grow as quickly as it did between 2004 and 2007 during the mining industry’s previous boom, Treasurer Wayne Swan said.

Vietnam Inflation Rate Rises to Highest Since 2008, Adding Rate Pressure (Source: Bloomberg)
Vietnam’s inflation accelerated to the fastest pace since 2008, putting pressure on the government to tighten policy further after almost doubling a key interest rate in less than six months. Consumer prices climbed 17.51 percent in April from a year earlier, according to figures released by the General Statistics Office in Hanoi today. The rate is the highest since December 2008 and compares with the 13.89 percent pace last month. Prices rose 3.32 percent in April from March.

Yen, Dollar Fall on Prospects Interest Rates Remain Near Zero (Source: Bloomberg)
The yen and dollar fell versus most of their major peers on speculation the central banks in Japan and the U.S. will this week keep interest rates near zero, while policy is being tightened elsewhere. The euro rose toward a 16-month high versus the dollar on prospects European Central Bank officials will signal that further rate increases will be necessary to contain inflation. Australia’s dollar climbed to a record as rising gold prices boosted the outlook for the nation’s resource exports, spurring demand for higher-yielding assets.