20120419 1826 FCPO EOD Daily Chart Study.

FCPO closed : 3477, changed : -2 points, volume : higher.
Bollinger band reading : correction range bound little upside biased.
MACD Histogram : falling lower, buyer reducing exposure.
Support : 3470, 3450, 3420, 3380 level.
Resistance : 3500, 3550, 3620, 3650 level.
Comment :
FCPO closed slightly lower with ultra high volume distributed. Soy oil price currently surging higher up by 1% recovering back overnight falls while crude oil price currently trading higher.
Negative European debts development and concern over tomorrow export data may be slowing lead market to tested 3 weeks low and recovered upward to closed near opening price.
Daily chart technical reading revised to calling 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.

20120419 1751 FKLI EOD Daily Chart Study.

FKLI closed : 1593 changed : -1 points, volume : lower.
Bollinger band reading : correction range bound little upside biased.
MACD Histogram : falling lower, buyer seller battling.
Support : 1590, 1580, 1570, 1565 level.
Resistance : 1595, 1600, 1610, 1620 level.
Comment :
FKLI closed little lower with drying volume transaction doing 3.5 points discount compare to cash market that also closed down marginally. Overnight U.S. markets closed lower and today Asia markets ended mixed while European markets registering gain.
Markets sentiment stayed negative after U.S. Intel and IBM slower sales growth earnings report, Spain debts development and some speculation on China cutting bank reserve ratio.
Technical chart reading adjusted to suggesting a correction range bound little upside biased market development testing support level near middle Bollinger band level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.

20120419 1732 Regional Markets EOD Daily Chart Study.

 DJIA chart reading : correction range bound little downside biased.

Hang Seng chart reading : side way range bound.

KLCI chart reading :  correction range bound little upside biased.

20120419 1557 Global Market & Commodities Related News.

(Source: Reuters)Asian shares and the euro traded in tight ranges ahead of a Spanish bond sale seen as a key test of investors' risk appetite amid renewed concerns over the euro zone's debt crisis.U.S. stocks slipped on Wednesday, a day after Wall Street's best gains in a month, as uninspiring earnings from tech bellwethers IBM and gave investors a reason to take profits.

FOREX-Yen pressured by Japan importers; all eyes on Spain
TOKYO, April 19 (Reuters) - The yen inched lower after commodity currencies briefly shot up on hopes China will soon ease policy, and as flows from Japanese importers and 'toushin' investment trusts pressured it against the U.S. dollar, traders said.
The euro is set to come under fresh pressure and test its long-standing support at $1.30  later in the session as Spain tests investors' confidence in its debt-ridden economy when it tries to sell new two- and 10-year bonds.

(Source: Reuters)Iran starts feed grain imports as sanctions bite
Iran's state feed agency SLAL is tendering to buy corn and soybean meal, European traders said on Wednesday, needed to feed the country's large livestock herds as private importers struggle with trade financing due to Western sanctions.

(Source: Reuters)German farmers cut 2012 wheat crop forecast
The German Farm Cooperatives Association said on Wednesday it has cut its forecast for the 2012 wheat harvest to 21.5 million tonnes from 24.2 million tonnes estimated in March as damage from the cold winter and dryness is becoming more apparent.

(Source: Reuters)USDA approves more sugar imports for U.S.
The U.S. Agriculture Department said Wednesday it has approved an increase in raw sugar imports of 450,000 short tons (408,233 tonnes) to meet a supply crunch in the country.

(Source: Reuters)China rice at record high on tight supply; more imports seen
Lower rice output in parts of China and government stockpiling have propelled domestic prices to record highs, boosting the prospects for imports as the world's most populous nation struggles for self-sufficiency in grains.

(Source: Reuters)Chicago corn rose 1.3 percent and wheat gained 0.9 percent as the markets took a breather after sliding to three-month lows in the last session, but improved supply prospects on crop-friendly U.S. weather may keep a lid on prices.

(Source: Reuters)The yen inched lower after commodity currencies briefly shot up on hopes China will soon ease policy, and as flows from Japanese importers and 'toushin' investment trusts pressured it against the U.S. dollar, traders said.

(Source: Reuters)Brent crude futures held above $118 as investors remained cautious ahead of a key Spanish bond auction, with renewed fears of a euro zone debt crisis keeping a lid on oil demand.  

(Source: Reuters)Japan cuts April Iran oil purchases 77 pct - trade
Japan will slash its crude purchases from Iran by almost 80 percent in April compared to the first two months of the year as buyers comply with Western sanctions, trade sources said.

(Source: Reuters)Fortescue sees iron ore staying in $140.50-$149.5/T range
Australia's Fortescue Metals  said it expected iron ore prices to remain in the $140.50-$149.50 a tonne range for the next year or two as demand from China, the top consumer of the steelmaking raw material, stays strong.

(Source: Reuters)China steel output hits record high amid doubts
China's daily crude steel output surged to a record of above 2 million tonnes in early April, sustaining last month's rapid pace, although an industry group warned of a slow down in  momentum due to moderating demand.

China's daily crude steel output hit record in early Apr-CISA data
SHANGHAI, AprilFortescue sees iron ore staying in $140.50-$149.5/T range
SYDNEY, April 19 (Reuters) - Australia's Fortescue Metals  said on Thursday it expected iron ore prices to remain in the $140.50-$149.50 a tonne range for the next year or two as demand from China, the top consumer of the steelmaking raw material, stays strong.
"We don't see any major change to the iron ore price range for the next year or two," Nev Power, chief executive of Fortescue, Australia's third biggest iron ore producer, told reporters.

BHP to join China's iron ore trading platform- CISA
BEIJING, April 18 (Reuters) - BHP Billiton will join China's first iron ore physical trading platform, an industry group said on Wednesday, completing the participation of the world's top miners in Beijing's bid to gain more control over pricing of the raw material.
BHP  joins rivals Vale  and Rio Tinto   who have earlier signed up for the platform operated by the China Beijing International Mining Exchange which will start trading on May 8.

(Source: Reuters)London copper futures eased in cautious trade ahead of a key bond auction in Spain amid growing worries the euro zone debt crisis is resurfacing, dimming the outlook for global raw material demand.

(Source: Reuters)Gold held steady in a narrow range, as investors stood on sidelines and awaited a key Spanish debt auction later in the day amid worries that the euro zone debt crisis could flare up again

(Source: Reuters)Gold Fields increases investment in Peru project
South African miner Gold Fields , the world's No. 4 gold producer, increased the initial investment for its Peruvian Chucapaca project to $1.2 billion, the company's vice president for South America told Reuters on Wednesday.

METALS-Copper guarded ahead of Spanish bond auction
SHANGHAI, April 19 (Reuters) - London copper futures eased in cautious trade ahead of a key bond auction in Spain amid growing worries the euro zone debt crisis is resurfacing, dimming the outlook for global raw material demand.
Three-month copper on the London Metal Exchange  ticked down 0.2 percent to $8,033 a tonne by 0352 GMT, after ending flat on Wednesday.

PRECIOUS-Gold subdued ahead of Spain auction
SINGAPORE, April 19 (Reuters) - Gold held steady in a narrow range, as investors stood on sidelines and awaited a key Spanish debt auction later in the day amid worries that the euro zone debt crisis could flare up again.
Concerns about Spain's finances and banking sector pushed up safe-haven U.S. Treasuries and German Bunds, and caution prevailed in most markets.

20120419 1455 Global Market & Commodities Related News.

Asia Stocks Drop as Exporters Fall on Spain’s Surging Bad Loans
2012-04-19 01:02:11.525 GMT

By Kana Nishizawa and Yoshiaki Nohara
April 19 (Bloomberg) -- Asian stocks fell, with the regional benchmark index headed for its third day of declines in four, as exporters retreated after bad loans held by Spanish banks surged ahead of bond sales today.
Nikon Corp., a camera maker that gets more than a fifth of its sales from Europe, dropped 2.4 percent. Nippon Sheet Glass Co., a Japanese glassmaker, slumped 6.9 percent in Tokyo, headed for its lowest close since 1976 after its chief executive officer quit over disagreement with the board. OCI Co., a chemicals maker, fell 1.6 percent in Seoul after its first- quarter operating profit declined. Maanshan Iron & Steel Co. maybe active today in Hong Kong after swinging to a net loss in the three months ended March 31.
The MSCI Asia Pacific Index declined 0.3 percent to 124.67 as of 9:53 a.m. in Tokyo before the open of markets in Hong Kong and China. More than twice as many stocks fell for each that rose on the gauge. Spain’s non-performing loans as a proportion of total lending jumped to 8.16 percent in February, the highest level since 1994, from less than 1 percent in 2007, according to Bank of Spain data published yesterday.
“We are seeing the clear need by the authorities to address funding concerns for a number of sovereign issues,” said Tim Schroeders, who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “Today we will see prices consolidate.”
Japan’s Nikkei 225 Stock Average fell 0.7 percent even as exports rose more than expected in March. South Korea’s Kospi index was little changed. Australia’s S&P/ASX 200 Index increased 0.2 percent.


GLOBAL MARKETS-Euro zone debt fears pressure euro, shares
LONDON, April 18 (Reuters) - Fears of a resurgence in the euro zone debt crisis boosted  demand for safe-haven German bonds on Wednesday, while the Bank of England and a European Central Bank official signalled more monetary policy easing to support growth was unlikely.
"Investor demand for core paper remains firm, with the background threat of crisis tensions ratcheting yet higher, underpinning an overriding desire for capital preservation," said Rabobank strategist Richard McGuire.

COMMODITIES-Euro zone concerns sink markets
NEW YORK, April 18 (Reuters) - Commodity markets ended broadly lower o n W ednesday, reversing the previous session's gains under pressure from new concerns over euro zone debt that also sank U.S. stocks.  U.S. stock markets were sluggish with International Business Machines Corp  and Intel Corp  pulling the Dow Jones industrial average lower.

OIL- Brent stable at $118 as euro zone concerns ease
LONDON, April 18 (Reuters) - Brent crude futures held above $118 on Wednesday as optimism in Germany and a successful Spanish debt auction alleviated fears about the euro zone, but the prospect of further talks between Iran and the West continued to ease pressure on the market.
"The main increase in oil prices between January and April was explained by tension in Iran. Prices are now moving down the same way as talks about setting up a new meeting with Iran are having the opposite effect," Bak Jensen said.

US natgas futures end flat to down in seesaw session
NEW YORK, April 18 (Reuters) - Front-month U.S. natural gas futures ended unchanged on Wednesday in seesaw trade, with concerns about record supplies driving the nearby contract to a 10-year low before technical buying temporarily lifted the market.
"The (inventory) surplus is still building and is going to lead to a premature filling of storage during the injection season. For the short to medium term I doubt natgas is going to reverse the downtrend it has been in for an extended period of time," Energy Management Institute's Dominick Chirichella said.

Euro Coal-Down for fourth day
LONDON, April 18 (Reuters) - European physical coal prices slipped by around $1.00 for the fourth successive day on Wednesday, pressured by oversupply and despite the strengh of gas in Europe, utilities and traders said.  
"Utilities are all full already for this year, the problem is having too much coal," one utility source said.

US crude stocks rise for 4th week, products fall
April 18 (Reuters) - U.S. crude oil inventories rose for a fourth straight week, led by gains on the West Coast, while product stockpiles showed steep declines, data from the Energy Information Administration showed on Wednesday.
Domestic crude stocks rose 3.86 million barrels in the week to April 13, increasing the 4-week build to nearly 22.8 million barrels to mark its biggest since February 2009. The average forecast had been for a rise of 1.4 million barrels in a Reuters survey of analysts.

20120419 1003 Local & Global Economy Related News.

The International Monetary Fund (IMF) has revised upwards its growth outlook for Malaysia to 4.4% this year from 4% in Jan. It also projected Malaysia to grow by 4.7% in 2013. The consumer price index for Malaysia is expected to increase by an average annual growth of 2.7% and 2.5% for 2012 and 2013, respectively. (BT)

The Cambodia Securities Exchange (CSX), a joint venture with South Korea’s stock exchange, finally began trading shares nine months after it officially opened, when a water monopoly became the first firm to list. (AFP)

India: Consumer-price inflation accelerated to 9.47% in March

Indian consumer-price inflation accelerated in March as the cost of egg, vegetables, fish and meat products rose, the government said. The consumer-price index climbed 9.47% y-o-y, compared with an 8.83% advance in February, the central statistics office said in a statement yesterday. The Reserve Bank of India cut interest rates earlier this week for the first time since 2009 on slowing growth even as it said upside risks to inflation were limiting room for further easing. The country’s benchmark wholesale-price index rose 6.89% in March, slower than the 6.95% pace in February. (Bloomberg)

China: Home prices decline in more than half of cities
China’s home prices fell in a record 37 of 70 cities tracked by the government in March as officials pledged to keep restrictions on property purchases that have sapped buyer demand. The eastern city of Wenzhou led declines with a 9% slump in values from a year earlier, while Beijing and Shanghai recorded drops of 0.8%, according to data released by the statistics bureau yesterday. Yesterday’s release underscores forecasts for China’s economic growth to slow further this quarter after the rate reached the lowest level in almost three years in the three months through March. (Bloomberg)


Out of 70 major Chinese cities tracked by the government, 46 recorded falls in home prices in Mar from the previous month, the National Bureau of Statistics said - one more than Feb. (AFP)

Prices of newly built homes in 70 Chinese cities in Mar were down 0.4% yoy on average. By contrast, in Feb home prices were up 0.17%. (WSJ)

China's outbound investment in non-financial sectors increased by 94.5% yoy in the first quarter, rising to US$16.55bn. (China Daily)

China’s FDI in Mar dropped 6.1% yoy to US$11.76bn as companies curbed investments amid a sluggish global economy. (Global Times)

China will firmly support efforts to maintain the stability of the euro and the European economy, Premier Wen Jiabao told German Chancellor Angela Merkel, state media said. (AFP)


The Bank of Japan is ready to ease monetary policy further if necessary to help the economy recover and escape deflation, deputy governor Kiyohiko Nishimura said, pointing to Europe’s debt crisis as the bank’s prime concern. (Reuters)

The Bank of Japan is ready to implement additional monetary easing as necessary to help the economy recover and escape deflation, deputy governor Kiyohiko Nishimura said, giving the strongest signal for further stimulus since its surprise Feb action. (Reuters)

UK: Unemployment unexpectedly falls as growth resumes

UK jobless claims rose less than economists forecast in March and a broader measure of unemployment fell for the first time for almost a year, signs that the labour market is stabilizing as the economy recovers. Jobless-benefit claims rose by 3,600 from February to 1.61m, the Office for National Statistics said yesterday. Unemployment as measured by International Labour Organization methods fell to 8.3% in the quarter through February from a 16-year high of 8.4%. (Bloomberg)

The Eurozone current account plunged into a deficit of €1.3bn in Feb (a revised +€3.7bn in Jan), according to the ECB. Over the 12 months to Feb, the current account showed a surplus of €2.1bn, compared with a deficit of €18.1bn in the corresponding period a year earlier. (Dow Jones)

US: Factories cool for first time in four months
Production at US factories dropped in March for the first time in four months as the industry cooled following the strongest surge in three decades. Manufacturing, which makes up about 75% of industrial output, decreased 0.2% last month as appliance and furniture makers cut back, data from the Federal Reserve showed today in Washington. The decline followed a revised 3.4% gain from December through February that marked the biggest three-month jump since March 1984. (Bloomberg)

The US Treasury Department and Internal Revenue Service issued rules requiring US financial institutions to begin reporting to the government the interest payments they make to foreigners. (WSJ)

20120419 1003 Malaysia Corporate Related News.

Public Bank registers record net profit
Public Bank posted another record net profit for its 1Q ended Mar 2012, buoyed by strong loan growth, higher deposits and non-interest income, and the application of new accounting policies The banking group’s net profit grew 6.4% to RM940.8m for the quarter in review, from RM884.1m for the corresponding period a year earlier. (Financial Daily)

Century Software receives IRB awards
Century Software SB has accepted two letters of award from the Internal Revenue Board to carry out accounting system projects worth RM5.6m The first project will commence from 1 Jan for three years and the second will commence from the date of acceptance of the letter of award for a period of two years and three months. (Financial Daily)

Study on new Johor-Singapore rail, road links
The Malaysian and Singaporean governments will appoint a foreign consultant by early next month to undertake a detailed study on the proposed Rapid Transit System (RTS) linking Johor Baru and the island republic. It is understood that the study, which will take six to 12 months to complete, will determine the best options for the RTS development and project cost. People familiar with the matter said several options were being considered by both governments. They said the governments were mulling whether to build an elevated rail and road link or underground tunnels between the two cities. (BT)

DefTech, Tata seal defence cooperation
Defence Technologies SB (DefTech), a wholly-owned defence arm of DRB-Hicom, yesterday signed a cooperation agreement with India’s Tata Motors Ltd to develop, promote and market the latter’s military vehicles. The cooperation agreement will enable both DefTech and Tata to promote the high mobility 4x4 trucks with payloads ranging from 2.5 to five tonnes to the Malaysian government. (Malaysian Reserve)

Eversendai gets RM134m sub-contract for Qatar museum
Eversendai Corporation’s subsidiary has secured a RM134m sub-contract for the second package of the National Museum of Qatar. It said on Wednesday the subsidiary, Eversendai Engineering Qatar W.L.L, was awarded the contract by the main contractor Hyundai Engineering & Construction Co. Ltd. The scope of work includes design, fabrication and building of steel structures. (StarBiz)

First Solar plant shutdown sparks fears of bigger shakeup
US-based solar panel manufacturer First Solar Inc announced on Tuesday the shutdown of its manufacturing plant in Frankfurt, Germany. In addition, beginning May, the company plans to indefinitely shut down four more production lines at its plant in Kulim, Kedah. According to the company, this is to facilitate the restructuring of its operations due to deteriorating market conditions in Europe. The company also hopes to cut costs and explore new market opportunities. (Malaysian Reserve)

JCY likely to maintain strong earnings in Q2
JCY International’s second-quarter earnings could be as strong as its first-quarter figures. Southeast Asia's largest technology company is expected to release its second-quarter earnings by the middle of next month. "Our production output should be on target," said JCY finance director, James Wong, in an interview with Business Times recently. He added that the company has been doing well in the current quarter (second quarter), subject to external factors such as fluctuations in the currency markets. (BT)


DRB’s wholly-owned subsidiary DRB-HICOM Defence Technologies (DEFTECH) signed an agreement with Tata Motors (Tata) to develop, promote and market TATA military vehicles. The cooperation agreement would enable both DEFTECH and Tata Motors to promote the high mobility 4x4 trucks with payloads ranging from 2.5 tonnes to 5.0 tonnes to the Government of Malaysia. In the initial stage, DEFTECH will be working on two of TATA’s models, LPTA 715 and LPTA 1623. (BMSB)

Sales of Perusahaan Otomobil Kedua Sdn Bhd (Perodua) vehicles fell 11% in March to 16,000 vehicles versus 18,000 units in the previous corresponding period, mainly due to Bank Negara's responsible lending guidelines implemented this year. Sales eased 2.2% to 44,700 vehicles in the first quarter this year from 45,700 vehicles registered in the previous corresponding quarter. However, Perodua managing director Datuk Aminar Rashid Salleh said vehicle bookings were still healthy, with 20,000 units booked in March alone. Aminar said the current loan approval rate by financial institutions were much lower than usual due to the new guidelines, adding that loan approvals were also delayed. He added that the loan rejection and delay in approval process had resulted in high inventory levels at Perodua's stockyards, which in turn has increased cost for the independent dealers. (StarBiz)

The Malaysian and Singaporean governments will appoint a foreign consultant by early next month to undertake a detailed study on the proposed Rapid Transit System (RTS) linking JB and the island republic. It is understood that the study, which will take six to 12 months to complete, will determine the best options for the RTS development and project cost. People familiar with the matter said the governments were mulling whether to build an elevated rail and road link or underground tunnels between the two cities. When the RTS was first mooted, the plan was to connect Johor Baru and Singapore via a rail network. The source said the plan would have cost both governments not more than RM10bn. However, both governments said they were examining the prospect of expanding the scope of the RTS to include an underground road link between both countries. The project is targeted to be operational by 2018. (BT)

Food and beverage ingredients manufacturer Three-A Resources Bhd's factory in China will start producing hydrolysed vegetable protein and related products this month, said chairman Datuk Mohd Nor Abdul Wahid. The facility is a 50:50 joint venture between Wilmar International Ltd and Three-A Resources. However, Mohd Nor Abdul said the gestation period would be six to seven months. (StarBiz)

Tradewinds (M) Bhd has signed a sale and purchase agreement with Tradewinds Corp Bhd to acquire a 31-storey office building in Kuala Lumpur for RM510m. It was announced that the acquisition would be for the proposed redevelopment of the site comprising a 31-storey office tower, an 8-storey car park podium and a food court. (StarBiz)

KLCC Property Holdings Bhd (KLCCP) will undertake a major development comprising office and retail space and hotel of some 3.5m sq ft in the Kuala Lumpur City Centre (KLCC) precinct. Group CEO Hashim Wahir said the development, located between Suria KLCC and the Asy-Syakirin Mosque, will be launched soon. He did not disclose the gross development value of the project. "We will announce it when we launch the development. It will be a new development of some 3.5m sq ft and will be a joint venture project," Hashim said after the launch of Malaysia's Iconic Experience in Kuala Lumpur (MIEKL). MIEKL consists of 11 attractions within the KLCC precinct. They are Petronas Twin Towers, Suria KLCC, KLCC Park, Dewan Filharmonik Petronas, Petrosains, Galeri Petronas, Kuala Lumpur Convention Centre, Aquaria KLCC, Mandarin Oriental Kuala Lumpur, Traders Hotel Kuala Lumpur and Impiana KLCC Hotel. KLCC (Holdings) Sdn Bhd as the master developer of KLCC, together with the 11 attractions, have initiated and funded the development of MIEKL, which showcases KLCC as a "city within a city" that offers accommodation, shopping, food, leisure, entertainment, meetings, convention and business facilities. "With the launch of MIEKL, we expect an annual 5% growth from the 40 million visitors that throng the 11 attractions yearly," said Hashim. The initiative aims to develop the Petronas Twin Towers and KLCC as the primary icon of Kuala Lumpur under the National Key Economic Area – Greater Kuala Lumpur/Klang Valley Entry Point Project.(Sun)

The government tabled the Printing Presses and Publications (Amendment) 2012 Bill at Dewan Rakyat yesterday in its move to expand media freedom. Under the proposed law, newspapers and printed publications are required to apply only once for a license to print, unlike now, where the owners have to renew their licenses annually. Najib said the tabling of the bill was an important step to boost media freedom. “The government is committed to fostering a free and open media environment, capable of meeting the standards Malaysians demand and expect.” Among the changes to the law are to remove the reference to the minister’s “absolute discretion” in granting or refusing a printing press license. The bill also seeks to remove the power of the minister to specify in the license the period of validity of such a license. Other changes include allowing the license or permit to remain valid as long as it is not revoked. (NST)

The Boston Consulting Group has been hired by the International Trade and Industry Ministry to undertake an in-depth study on the current plight faced by players in the country’s RM40bn steel sector. The final result of the study is envisaged to assist the government in formulating an effective mechanism to settle the mounting issues, disputes and challenges in both the upstream and downstream steel sectors going forward. The study will focus on Malaysia’s existing steel policy plus the export and import duties given the influx of cheaper foreign steel goods coming into Malaysia. (Star Biz)

Petronas has introduced a whistle-blowing policy to complement its enhanced code of conduct and business ethics. The group said the revision in the business conduct is in line with the principle of its corporate enhancement programme embarked on two years ago. (Star)

The Malaysian Rating Corp Bhd (MARC) has affirmed Tenaga Nasional Bhd’s issuer rating of AAA and Islamic debt rating at AAA ID with a stable outlook. However MARC expects continued pressure on its credit metrics in the absence of further measures to deal with its exposure to volatile fuel prices. (Star Biz, MARC)

SapuraKencana Petroleum: Eyes O&G business in Kazakhstan
SapuraKencana Petroleum, the new entity formed post-merger of Kencana Petroleum and SapuraCrest Petroleum is keen to establish a footprint in Kazakhstan’s oil and gas (O&G) industry. Kencana Petroleum’s CEO Datuk Mokhzani Mahathir said the company is planning to send reconnaissance team to study what is needed to establish its business in that country. He said the company is looking at the rejuvenation of marginal fields and old fields as well as infrastructure for offshore support study.  He added that after the reconnaissance mission, the company will prepare a proposal and submit it to the relevant authorities in Malaysia and Kazakhstan. (StarBiz)

MAS: Launches full investigation into technical incident
MAS’s Group CEO Ahmad Jauhari Yahya said the airline has launched a full investigation into the technical incident that affected one of the engines of the B747-400 aircraft together with the engine manufacturer. On Apr 16, Malaysia Airlines flight MH002 from the KL International Airport (KLIA) to London experienced technical glitch which resulted in a turnback and subsequent delay in departure until the next day. In a statement, Ahmad Jauhari said its team, from the crew that operated the flight to the ground personnel and the other agencies at KLIA worked in clockwork precision to ensure the safety, emotional well-being and comfort of the passengers affected by the incident. (Bernama)

Encorp: To sell US$516m Islamic bonds
Two people with knowledge of the deal said Encorp is planning to sell as much as RM1.58bn(US$516m) of Islamic bonds to restructure its debt. The Selangor-based company will be issuing the sukuk, or debt that pays returns from assets to comply with Islam’s ban on interest, in several portions of as long as 16 years, said one of the people, who declined to be named as the information is private. It plans to sell the securities early next month via its Encorp Systembilt Sdn Bhd unit. The company has hired CIMB Investment Bank, Hong Leong Investment and Kenanga Investment  Bank  as lead arrangers for the planned offering, the person said. (Business Times)

Syarikat Takaful Malaysia: Expects to finalise STI revamp by June
Syarikat Takaful Malaysia expects the restructuring of its Indonesian unit, PT Syarikat Takaful Indonesia (STI), to be completed in Jun this year. Once completed, Takaful Malaysia will be represented through its two operating companies: PT Asuransi Takaful Keluarga in which Takaful Malaysia now holds a 42.73% stake and PT Asuransi Takaful Umum, which is a subsidiary of STI. The plan includes liquidating the holding company and Takaful Malaysia's shareholding transferred to the two operating companies. It is learnt that Takaful Malaysia's stake in Asuransi Takaful Keluarga would increase to more than 70% once the restructuring is done. Mohammad Hassan had previously said that some of the minority shareholders in STI intend to sell out and at the same time some interested parties were keen to buy a major stake in STI. (Business Times)

Syarikat Takaful Malaysia: To aggressively expand retail capability
Syarikat  Takaful Malaysia will aggressively expand its retail capability to capture a  bigger market share from 20% in 2011 to 30% this year. In terms of Takaful contribution, Group Managing Director Datuk Hassan Kamil said the target was a growth of between 25 and 30% from RM1.1bn last year. He said Takaful Malaysia would increase the number of agents by 15% from 20,000 currently and improve customer service and engagement. (Bernama)

LBS Bina: Expected to reap RM650m from disposal of Dragon Hill
LBS Bina Group is expected to reap RM650m (HK$1.65bn) from the proposed sale of its subsidiary, Dragon Hill Corp Ltd. LBS Bina said its wholly-owned unit, Intellplace Holdings Ltd which owns 100% of Dragon Hill signed a memorandum of understanding (MoU) with Jiuzhou Technology Co Ltd, a wholly-owned subsidiary of Jiuzhou Development Ltd. According  to LBS Bina’s MD Datuk Lim Hock San, the MoU provides for the parties to negotiate exclusively with each other and finalise the scope and terms of a sale and purchase agreement. LBS Bina also said the MoU was an expression of Jiuzhou Technology’s intention to acquire up to 100% but not less than 60% equity interest in Dragon Hill. (Financial Daily)

Ariantec: Raymond Chan surfaces as substantial shareholder
Datuk Raymond Chan Boon Siew, who made headlines after emerging in Harvest Court Industries, Naim Indah Corp and more recently Metronic Global, emerged on Wednesday as a substantial shareholder of Ariantec Global, a unit of Metronic Global. Ariantec, an ACE Market-listed information technology (IT) firm, was issued an unusual market activity (UMA) query by Bursa Malaysia Wednesday due to the sharp rise in its share price and trading volume. Ariantec said it was unaware of the cause of the UMA. (Financial Daily)

Bintai Kinden: Receives letter of acceptence from its unit
Bintai Kinden Corp has received a letter of acceptance, duly executed on Mar 2, from Bintai Kindenko Pte Ltd to perform sub-contract work awarded by Shimizu Corp of Japan. In a filing to Bursa Malaysia, Bintai Kinden, which holds 69.82% in Bintai Kindendo, said the contract was to perform sub-contract work for design, supply, delivery, installation, testing, commissioning and maintenance of air-conditioning and mechanical ventilation system. It said the sub-contract formed part of the main contract for the construction of the proposed construction of a 26-storey commercial building at Boon Lay Way, Singapore. It added that the sub-contract period shall be from Feb 24, 2012 to Sept 2, 2014. Bintai Kinden also said the sub-contract was not expected to have any material financial effect on the earnings, net assets and gearing of the company for FY2012. (Bernama)

Daya Materials: Signs pact with Axima for marine, O&G projects in Malaysia
Daya Materials’ wholly-owned subsidiary, Daya OCI Sdn Bhd (DOCI), has signed an MoU with France-based Axima Seith to participate in marine and oil and gas (O&G) projects in Malaysia. Daya Materials is principally involved in the provision of products and services in the O&G industry, specialty chemicals, advanced polymers as well as engineering and technical services, while Axima is a specialist in heating, ventilation and air-conditioning (HVAC) engineering. Their particular interest culminating into the signing of the MoU is the Defence Ministry contract for the supply of 6 patrol vessels awarded to Naval Shipyard Sdn Bhd, a wholly-owned subsidiary of Boustead Holdings Bhd, at the end of last year. The contract carries a ceiling of RM9bn to be implemented over 3 Malaysia plans (10th, 11th and 12th) with the delivery of the first ship in 2017. (Bernama)

20120419 1001 Global Market Related News.

Asian Equities Retreat as Spain’s Bad Loans Surge Ahead of Bond Auctions (Source: Bloomberg)
Asian stocks fell, with the regional benchmark index headed for its third day of declines in four, as exporters retreated after bad loans held by Spanish banks surged ahead of bond sales today. Nikon Corp., a camera maker that gets more than a fifth of its sales from Europe, dropped 2.4 percent. Nippon Sheet Glass Co. (5202), a Japanese glassmaker, slumped 6.9 percent in Tokyo, headed for its lowest close since 1976 after its chief executive officer quit over disagreement with the board. OCI Co., a chemicals maker, fell 1.6 percent in Seoul after its first- quarter operating profit declined. Maanshan Iron & Steel (323) Co. maybe active today in Hong Kong after swinging to a net loss in the three months ended March 31.
The MSCI Asia Pacific Index (MXAP) declined 0.3 percent to 124.67 as of 9:53 a.m. in Tokyo before the open of markets in Hong Kong and China. More than twice as many stocks fell for each that rose on the gauge. Spain’s non-performing loans as a proportion of total lending jumped to 8.16 percent in February, the highest level since 1994, from less than 1 percent in 2007, according to Bank of Spain data published yesterday. “We are seeing the clear need by the authorities to address funding concerns for a number of sovereign issues,” said Tim Schroeders, who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “Today we will see prices consolidate.”

Japan Stocks Fall on Surge in Bad Spanish Loans, U.S. Earnings (Source: Bloomberg)
Japanese shares fell, with the Nikkei 225 Stock Average (NKY) paring gains after rising the most in three weeks yesterday, after bad loans held by Spanish banks surged and earnings reports by Intel Corp. disappointed investors, cutting the earnings outlook for exporters. Sony Corp. (6758), a consumer electronics maker that gets about 40 percent of its revenue in Europe and the U.S., fell 1.5 percent. Honda Motor Co. (7267), Japan’s second-biggest carmaker, fell 0.6 percent. Nippon Sheet Glass Co. slid to its lowest since 1976 after saying its chief executive officer quit after clashing with the board over the company’s strategy.
The Nikkei 225 Stock Average dropped 0.8 percent to 9,593.50 as of 9:23 a.m. in Tokyo with more than five stocks declining for each that rose, paring yesterday’s 2.1 percent advance. The broader Topix Index declined 0.5 percent to 815.05 with all but two of its 33 industry groups falling. Shares fell even after Japan reported the fastest export growth in a year and a smaller-than-expected trade deficit. “We are seeing the clear need by the authorities to address funding concerns for a number of sovereign issues,” said Tim Schroeders, who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “Today we will see prices consolidate.”

U.S. Stocks Decline as Intel, IBM Tumble After Results (Source: Bloomberg)
U.S. stocks fell, after the biggest advance in more than a month for the Standard & Poor’s 500 Index, as Intel (INTC) Corp. and International Business Machines Corp. drove a slump in technology shares after reporting results. Intel and IBM (IBM) dropped at least 1.8 percent amid the slowest sales growth since 2009. Berkshire Hathaway Inc. (BRK/A) Class A shares slid 1.3 percent as Warren Buffett was diagnosed with stage 1 prostate cancer. Genworth Financial Inc. tumbled 24 percent after delaying plans for a public offering of its Australian unit backing home loans after “elevated” losses in the nation. Qualcomm Inc. (QCOM), the largest maker of mobile-phone chips, sank 3.5 percent at 5:03 p.m. New York time on disappointing forecasts.
The S&P 500 fell 0.4 percent to 1,385.14 at 4 p.m. New York time. The Dow Jones Industrial Average slid 82.79 points, or 0.6 percent, to 13,032.75. The Russell 2000 Index (RTY) dropped 0.9 percent to 803.32. About 5.9 billion shares changed hands on U.S. exchanges, or 12 percent below the three-month average. “Profits are lukewarm,” said Nick Sargen, chief investment officer at Fort Washington Investment Advisors in Cincinnati, which oversees about $40 billion. “You get disappointments from some bellwether technology companies at a time when the market has had such a good run. We’re not bearish, but if we’re going to add to positions, we need a pullback.”

European Stocks Decline; Repsol, Santander Retreat (Source: Bloomberg)
European stocks declined as Bank of England policy maker Adam Posen ended his support for more stimulus, falling house prices signaled slowing growth in China and bad loans surged in Spain. Banco Santander SA (SAN) led banks lower. Repsol YPF SA (REP) retreated after Argentina rejected a demand for $10.5 billion in compensation for its YPF SA unit. Iberdrola SA (IBE) dropped to an eight-year low after Actividades de Construccion & Servicios SA sold a stake in Spain’s biggest power company. Statoil Fuel & Retail ASA (SFR) soared 51 percent after Alimentation Couche-Tard Inc. (ATD/B) offered to buy the company. The Stoxx Europe 600 Index (SXXP) dropped 0.7 percent to 257.71 in London. The benchmark gauge has lost 2.1 percent so far in April on renewed concern that the region’s sovereign-debt crisis will worsen. The Stoxx 600 has still advanced 5.4 percent so far this year.
“The debt crisis is far from over still and I think Spain will be worse before it gets better,” Henrik Drusebjerg, a senior equity strategist at Nordea Bank AB in Copenhagen, said in a Bloomberg Television interview with Maryam Nemazee. “European leaders need to address the key issues to move Europe out of this crisis and that is how to create growth under this environment and that has been almost unaddressed so far during this crisis.”

Emerging-Market Stocks Rise on Global Growth Outlook (Source: Bloomberg)
Emerging-market stocks rallied for a second day after the International Monetary Fund raised its global growth forecast and on speculation China and Brazil will act to boost growth. The MSCI Emerging Markets Index gained 0.2 percent to 1,022.35 at 10:33 a.m. in New York. Samsung Electronics Co. (005930) climbed 3.5 percent in Seoul, as technology companies led gains. Steelmaker Usinas Siderurgicas de Minas Gerais headed for a two- week high and the Bovespa (IBOV) advanced for a second day. Turkish stocks fell the most in a week. The IMF raised its 2012 estimate for global economic growth to 3.5 percent from a January projection of 3.3 percent, the first increase in more than a year. China’s economy faces no risks of a hard landing this year, though the government should be vigilant against the chance of growth decelerating too quickly, an economic researcher said today. China’s home prices fell in a record 37 of 70 cities tracked by the government in March.
Brazil will cut its benchmark lending rate by 0.75 p ercentage point, according to economists surveyed by Bloomberg. “Speculation of easing measures in China and a positive outlook in the latest IMF report have boosted buying interest in equities, brushing aside the accelerated downside housing data in China,” Benoit Anne, chief emerging-markets strategist at Societe Generale SA in London, wrote in an e-mailed note to clients.

GLOBAL MARKETS-Euro zone debt fears ease, German bond sale eyed
LONDON, April 18 (Reuters) - European shares and the single currency held within narrow ranges on Wednesday as investors' fears over Spain eased and growth hopes rose, with the focus on a two-year German bond sale, which some fear could struggle, given ultra-low yields.
"Markets are undergoing a consolidation phase after a strong rally earlier in the year, and if Spain's bond auctions on Thursday pass without a problem, investors will likely become more committed to risk-taking," said Hirokazu Yuihama, a senior strategist at Daiwa Securities in Tokyo.

GLOBAL MARKET-Euro zone debt fears pressure euro, shares
LONDON, April 18 (Reuters) - European shares eased and the single currency softened   as the region's sovereign debt worries and its weaker economic outlook weighed on investors ahead of a German bond sale that will test demand for ultra-low yielding debt.
"There is a lot of uncertainty in the market," said Lutz Karpowitz, currency strategist at Commerzbank.

FOREX-Yen falls broadly as risk currencies stage bounce
TOKYO/SYDNEY, April 18 (Reuters) - The yen fell broadly on Wednesday, extending its slip from a seven-week high against the dollar earlier this week, as a revival in risk appetite saw Wall Street score its biggest gains in a month.
"Firmness in the U.S. economic data appears to be reducing the need for easing for now. So unless global shares fall sharply, the yen is likely to come under pressure for the time being," said a trader at a Japanese bank.

Euro Holds Losses on Spain Debt Concern; Yen Lower (Source: Bloomberg)
The euro held losses against the dollar as signs that Spain is struggling to keep its borrowing costs down heightened concerns that the European sovereign-debt crisis is worsening. Spain, Europe’s fourth-biggest economy, is scheduled to sell bonds today. The yen slid against most major counterparts after a report showed Japan had a trade deficit last month after an unexpected surplus in February. New Zealand’s dollar climbed against all of its 16 major counterparts. “I remain bearish on the euro,” said Marito Ueda, senior managing director in Tokyo at FX Prime Corp. (8711), a currency-margin company. “Spain’s debt auctions today are important, and a poor result would lead to euro sell-off.” The euro was at $1.3120 at 9:24 a.m. in Tokyo after dropping 0.1 percent in the past two days. The shared currency added 0.2 percent to 106.79 yen. The yen slid 0.2 percent to 81.41 after reaching 81.57 yesterday, the weakest level since April 10. New Zealand’s dollar added 0.2 percent to 81.72 U.S. cents.
Spain will issue as much as 2.5 billion euros ($3.3 billion) in two- and 10-year bonds today. The nation’s borrowing costs rose at a sale of one-year and 18-month bills for the first time since November on April 17. It sold 12-month bills at 2.623 percent, up from 1.418 percent at the last auction on March 20.

Korean Won Climbs, Bonds Fall on IMF Forecast, Spain (Source: Bloomberg)
South Korea’s won weakened as bad loans surged in Spain, re-igniting concerns the European debt crisis is deepening. Government bonds were little changed. Spain’s non-performing loans as a proportion of total lending jumped to 8.16 percent in February, the highest level since 1994, the central bank said yesterday. Bank of Korea Governor Kim Choong Soo said that while an improving global outlook may provide a boost to his nation’s export-driven economy in the second half, downside risks will probably persist due to volatile oil prices and problems in Europe, according to today’s statement. “Spain’s bad-loan issue and Italy cutting its growth forecast are renewing concerns over Europe’s periphery states,” said Byeon Ji Young, a Seoul-based currency analyst at Woori Futures Co. “Still, with events including Spain’s debt auction and U.S. data coming up today, investors will refrain from betting aggressively on a stronger dollar.”
The won slid 0.3 percent to 1,140.20 per dollar as of 9:27 a.m. in Seoul, according to data compiled by Bloomberg. One- month implied volatility for the won, a measure of exchange-rate swings used to price options, slid 20 basis points, or 0.20 percentage point, to 8.23 percent. Sales at major South Korean department stores rose 1.6 percent in March from a year earlier, after a 2.9 percent gain the previous month, government figures showed today. Spain will issue as much as 2.5 billion euros ($3.3 billion) in two- and 10-year bonds at today’s auction. Italy’s economy will shrink 1.2 percent this year compared with the previous forecast for a contraction of between 0.4 percent and 0.5 percent, the government said yesterday. U.S. releases its jobless claims and existing home sales data today.

Geithner Calls China’s Changes on Yuan Very Significant (Source: Bloomberg)
U.S. Treasury Secretary Timothy F. Geithner said China’s decision to widen the yuan’s trading band against the dollar reflects changes that are “very significant and very promising.” China is showing a commitment “to this broad change in growth strategy, towards a growth strategy less dependent on external demand,” Geithner said yesterday during an appearance at the Brookings Institution in Washington. “Obviously, they’ve got a long way to go in that process, including on the exchange rate.” China said April 14 it will increase the yuan’s band to 1 percent from 0.5 percent, the first widening since 2007. Regulators had raised the quotas for foreigners to buy stocks and bonds to $80 billion from $30 billion on April 3. The yuan declined 0.02 percent yesterday to close at 6.3028 per dollar in Shanghai, according to the China Foreign Exchange Trade System. It fell as much as 0.12 percent earlier. The yuan is almost unchanged since the People’s Bank of China widened the band.

Jobs Data Simultaneous Release Jeopardized Under Curbs (Source: Bloomberg)
The U.S. Department of Labor said it can’t promise journalists they will be able to transmit market-sensitive economic releases at exactly the same time under changes resulting from the first review of procedures in a decade. The agency ordered media organizations to remove computer software, hardware and communications lines they have installed at the department to transmit news on data such as the unemployment rate and consumer prices. Instead, reporters will have to use government equipment, software and Internet connections. “I’m not going to guarantee anything,” Carl A. Fillichio, the department’s senior adviser for communications and public affairs in Washington, said on a conference call when asked if every news organization will be assured a connection to the Internet “at exactly the same millisecond.”
Under the current system, credentialed journalists in so- called lockups are given data in advance of their release to the public, allowing time to prepare stories, headlines and tables. Communication by phone or computer is cut off for the half hour that reporters are typically given to write their stories. A Department of Labor employee then flips a switch that opens telephone and data lines, allowing journalists to transmit their stories using their own equipment.

China Home Prices Fall in More Than Half Cities Tracked (Source: Bloomberg)
China’s home prices fell in a record 37 of 70 cities tracked by the government in March as officials pledged to keep restrictions on property purchases that have sapped buyer demand. The eastern city of Wenzhou led declines with a 9 percent slump in values from a year earlier, while Beijing and Shanghai recorded drops of 0.8 percent, according to data released by the statistics bureau today. Today’s release underscores forecasts for China’s economic growth to slow further this quarter after the rate reached the lowest level in almost three years in the three months through March. Momentum in the real-estate industry is “too strong to reverse” for now, according to Li Daokui, a former adviser to the nation’s central bank.
“Alternative drivers of GDP growth will have to take some time to come in, to fill in the vacuum,” Li said today in an interview with Bloomberg Television from Sydney, citing water, rail and public-housing projects as future contributors to the expansion. Policy makers are aiming to balance reining in property speculation without hobbling growth, he said.

Japan’s Fastest Export Growth in a Year Boosts Outlook (Source: Bloomberg)
Japan reported the fastest export growth in a year and a smaller-than-expected trade deficit, boosting prospects that the recovery in the world’s third- biggest economy will be sustained. Outbound shipments rose 5.9 percent in March from a year earlier, exceeding the median estimate in a Bloomberg News survey for a gain of 0.2 percent. The deficit was 82.6 billion yen ($1 billion), less than the median forecast for a 223.2 billion yen shortfall. Comparisons are distorted by the earthquake in March, 2011. The International Monetary Fund estimated this week that Japan’s economy may expand as much as 2 percent this year, boosted by reconstruction spending. The yen’s decline against the dollar after the Bank of Japan boosted monetary stimulus in February aided exporters after the currency rose to a post World War II record last year.
“A weaker yen against the dollar and euro is helping trade competitiveness,” Matthew Circosta, an economist at Moody’s Analytics in Sydney, said before the report. “A synchronized upswing in reconstruction and exports should drive a better second half.”

Bank of Canada Sees Firmer Growth as Global Strains Ease (Source: Bloomberg)
The Bank of Canada said the economy will be stronger this year than it earlier forecast as companies become more confident in U.S. growth and as risks from Europe’s debt crisis diminish. The world’s 10th largest economy will expand 2.4 percent in 2012, up from a January projection of 2 percent, the central bank said today. It raised its outlook for the contribution from corporate investment to 0.9 percentage point from 0.6 percentage point, and boosted the consumption estimate to 1.3 points from 1.1 points. The brighter forecast underscores signs of optimism for the world economy after the International Monetary Fund raised its global growth outlook and as officials gather in Washington to consider boosting the IMF’s crisis-fighting war chest. The Bank of Canada yesterday decided to keep the benchmark lending rate at 1 percent for a 13th meeting, while adding that a policy-rate increase “may become appropriate.”
“Recent indicators suggest better growth in the U.S.,” said Charles St-Arnaud, an economist with Nomura Securities International Inc. in New York. “In Europe, we have avoided the worst, but we are still not out of the woods in terms of sovereign tensions.”

Spain Joins France to Seek $18 Billion in Bonds (Source: Bloomberg)
Spain and France plan to raise as much as 13.5 billion euros ($17.6 billion) in debt today as Prime Minister Mariano Rajoy’s struggles to meet deficit targets and the French presidential elections drive up yields. Spain is issuing as much as 2.5 billion euros in two- and 10-year bonds, while France has set a maximum target of 11 billion euros for securities including 2017 notes and 2018 inflation-linked debt. Scrutiny of both countries is increasing amid the fading effect of the European Central Bank’s longer-term refinancing operation, which injected about 1 trillion euros of liquidity into the region’s financial system. The yield on Spain’s benchmark 10-year bond has jumped about 1 percentage point since the beginning of March to above 6 percent, while the yield on the equivalent French security has gained about 10 basis points with Socialist Francois Hollande leading in election polls.
“It’s a difficult time for both countries to sell bonds,” said Marc Chandler, head of global currency strategy at Brown Brothers Harriman & Co. in New York. “The first quarter was really about the absorption of the LTROs. The second quarter is going to be more about politics.”

Spain’s Surging Bad Loans Cast New Doubts on Bank Cleanup (Source: Bloomberg)
Spain’s surging bad loans are spurring doubt on whether the government can persuade investors that it can clean up the country’s banks without further damaging public finances. Non-performing loans as a proportion of total lending jumped to 8.16 percent in February, the highest level since 1994, from less than 1 percent in 2007, according to Bank of Spain data published today. The ratio rose from 7.91 percent in January as 3.8 billion euros of loans soured in February, a 110 percent increase from the same month a year ago. That takes the total credit in the economy that the regulator lists as “doubtful” to 143.8 billion euros.
Defaults are rising and credit is shrinking at a record pace as 24 percent unemployment corrodes the quality of loans built up in the country’s credit boom and saps the appetite of banks to make new ones. Doubts about the extent of Spain’s non- performing loans problem is hurting bank stocks and driving up the government’s borrowing costs on investor concern that the expense of propping up ailing lenders may add to the debt burden. “One of our concerns in Spain is to what extent contingent liabilities could pass to the central government,” said Andrew Bosomworth, Pacific Investment Management Co.’s Munich-based head of portfolio management. Non-performing loans “will have to rise when you take into account the unemployment rate and what’s happening with the economy,” he said.

Posen Switches Vote as BOE Concerned on Inflation Risks (Source: Bloomberg)
Adam Posen ended his push for further Bank of England stimulus this month and David Miles described his view on the need for more as “finely balanced” as officials said inflation may turn out faster than forecast. The pound rose after minutes of the central bank’s April 4- 5 meeting showed that Posen joined the majority of the nine- member Monetary Policy Committee in seeking no change to the 325 billion-pound ($517 billion) asset-purchase target. U.K. jobless claims rose less than economists forecast and the official unemployment rate fell, a separate report showed. While Bank of England officials noted that the U.K. may face a recession in the first half of this year, they said inflation may turn out faster than forecast. They endorsed a final month of bond purchases to aid growth while setting the stage for a possible pause in May, when they will consider new quarterly forecasts and debate whether to halt the so-called quantitative-easing program.
“The probability of QE in May -- which already looked relatively low -- has diminished significantly,” said Ross Walker, an economist at Royal Bank of Scotland Group Plc in London. “It is too soon to rule out further QE in the second half of 2012, but the probability of this is diminishing in response to short-term inflation ‘stickiness’ and firmer underlying activity data.”

U.K. Unemployment Unexpectedly Falls as Growth Resumes (Source: Bloomberg)
U.K. jobless claims rose less than economists forecast in March and a broader measure of unemployment fell for the first time for almost a year, signs that the labor market is stabilizing as the economy recovers. Jobless-benefit claims rose by 3,600 from February to 1.61 million, the Office for National Statistics said today in London. The median forecast of 29 economists in a Bloomberg News survey was for a gain of 6,000. Unemployment as measured by International Labour Organization methods fell to 8.3 percent in the quarter through February from a 16-year high of 8.4 percent. No change was forecast. The figures provide a boost for Prime Minister David Cameron, who faces criticism from the opposition Labour Party that he is damaging the recovery by trying to cut the budget deficit too quickly. Employment rose in latest period, suggesting hiring by private companies is making up for the loss of tens of thousands of public-sector jobs.
“These figures look pretty good and are suggestive of some reasonable underlying momentum in growth,” said David Tinsley, chief U.K. economist at BNP Paribas SA in London and a former Bank of England official. “The fact that unemployment is stabilizing is very good news for the government.”

Sweden’s Riksbank Keeps Key Interest Rate at 1.5% (Source: Bloomberg)
Sweden’s Riksbank kept its main interest rate unchanged amid signs the largest Nordic economy will avoid a recession after policy makers across Europe stepped in to ease debt crisis concerns. The repo rate was kept at 1.5 percent, after two cuts since December, the Stockholm-based bank said today. The move was predicted by 14 of 18 economists surveyed by Bloomberg. Four forecast a quarter point cut. The central bank repeated its intention to keep rates unchanged over the next year. “Following the sharp slowdown in the Swedish economy towards the end of last year, it is now possible to discern some positive signs,” the bank said. “At the same time, inflation is low and expected to remain so over the coming year. Monetary policy needs to remain expansionary to support the recovery.”
A rebound in Swedish exports, rising retail sales and improving consumer confidence has brought the economy back from the “abyss,” Finance Minister Anders Borg said this week. The economy may avoid a recession as growth slows to 0.4 percent this year from 3.9 percent in 2011, sending the budget into a deficit, according to the finance minister.

20120419 1000 Global Commodities Related News.

India sees 2012 monsoon normal, no El Nino threat
NEW DELHI, April 17 (Reuters) - India's monsoon is likely to have average rainfall in 2012 despite fears the El Nino weather pattern may emerge in the second half of the season, the country's top weather official said, pointing to a third straight year without drought.
The June-September monsoon, vital for agricultural output and economic growth, irrigates around 60 percent of farms in India, the world's second-biggest producer of rice, wheat, sugar and cotton. Agriculture accounts for about 15 percent of India's nearly $2 trillion economy, Asia's third biggest.

GRAINS-Corn near 3-week low on U.S. weather, soy dips
SINGAPORE, April 18 (Reuters) - Chicago corn fell for a fourth consecutive session to its lowest in nearly three weeks, weighed down by near-perfect crop weather in the U.S. Midwest which has raised hopes of ample supplies.
"Corn sowing is 17 percent complete but we think that it is bit higher, more like 20 percent because of favourable weather as it has been a lot warmer than normal," said Andrew Woodhouse, an analyst at Advance Trading Australasia.

U.S. corn planting slows as rains hit -USDA
CHICAGO, April 17 (Reuters) - Rainy weather slowed planting of U.S. corn during the weekend but farmers were still well ahead of their typical schedule due to warm soil temperatures, U.S. Agriculture Department data released on Tuesday showed.
Farmers had seeded 17 percent of their corn acreage as of April 15, up from 7 percent a week ago and well ahead of the five-year average of 5 percent, according to the USDA's weekly crop progress and conditions report. A year ago, planting was 5 percent complete.

Spain sees '12 winter grain harvest down 24.6 pct
MADRID, April 17 (Reuters) - Spanish farmers may harvest 24.6 percent less winter grain this year than they did in 2011, the Agriculture Ministry said on Tuesday, which may substantially increase grain imports in the 2012/13 market year.
Even when Spain has a bumper crop, it needs to import at least 10 million tonnes of grains a year, making it a market for producers from Argentina to Kazakhstan.
 
UK wheat exports running behind last season
LONDON, April 17 (Reuters) - UK wheat exports slowed slightly during February and remain well behind last year's pace despite the shipment of a further cargo to the United States, customs data showed on Tuesday.
Shipments during February totalled 212,701 tonnes, down from 214,562 tonnes in January, the figures showed.
 
Rail car shortage cuts Kazakh grain export forecast
ASTANA, April 17 (Reuters) - Kazakhstan's grain exports will fall at least 20 percent short of its forecast this season due to a shortage of rail cars, even as Russian port capacity frees up to allow more Kazakh grain to leave the Black Sea, an Agriculture Ministry official said.
The Central Asian state will ship 11 million to 12 million tonnes of grain in the marketing year to June 30, below its previous forecast of 15 million tonnes, said Anna Buts, director of the ministry's land development department, on Tuesday.

Recap: Wheat Futures  (Source: CME)
Wheat futures favored a weaker tone throughout the day, although deferred contracts saw periods of firmer trade. Wheat futures closed slightly lower at all three exchanges. Strength in the U.S. dollar index led to widespread selling in the commodity sector. It's somewhat impressive that losses in the nearby wheat contracts were mostly in the range of 3 to 7 cents given double-digit declines in nearby corn and soybean futures.

Wheat Market Recap Report  (Source: CME)
July Wheat finished down 4 1/2 at 615 3/4, 7 1/2 off the high and 6 1/2 up from the low. December Wheat closed down 1 1/4 at 654 1/2. This was 7 1/4 up from the low and 7 1/4 off the high. July wheat closed 4 1/2 cents lower on the session but up 6 1/2 cents from the lows. Improving crop conditions, a fast start to the spring wheat plantings and a lack of threatening weather were factors to help pressure the market early in the session. However, a lack of new significant selling interest on the move to the lowest level since December 19th, talk that US wheat is competitive on the world market and talk of the cheap price of wheat relative to corn helped spark the rally to near unchanged on the day into the mid-session. Jordan bought 50,000 tonnes of wheat in a tender for 100,000. The weekly Winter Wheat Conditions report showed that 64% of the crop is rated good/excellent compared to 61% last week and 36% last year. The 10 year average for this time of year is 49%. The highest percent rated good/excellent was 78% in 1993. Ohio slipped 4% to 46% but Kansas jumped to 69% good to excellent from 65% last week and 26% last year. The weekly Spring Wheat Planting report showed that a whopping 37% of the crop is planted compared to 21% last week and 5% last year. The 10 year average for this time of year is 11%. The highest percent complete prior to this year was 27% in 1992. North Dakota is 27% complete from 0% last year and Minnesota is 56% complete from 0% last year. Traders see weekly export sales, for release before the opening, near 550,000 tonnes. July Oats closed down 3/4 at 322 3/4. This was 3/4 up from the low and 2 1/4 off the high.

Could Sept. corn prices fall another $1?
--Gavin Maguire is a Reuters market analyst. The views expressed are his own. To get his real-time views on the market, please join the Global Ags Forum--
CHICAGO, April 17 (Reuters) - Near-perfect field conditions coupled with the highest projected U.S. corn planted area total since the 1930s have helped pressure September-delivery corn futures prices steadily lower in recent weeks - from above $6 a bushel in mid-March to below $5.50 currently.
But it's clear from the recent steep build in put options open interest that many traders are expecting prices to head lower still - a lot lower. Indeed, more than 750 million bushels of potential selling interest resides at strike prices roughly $1 below current price levels, with an additional 240 million bushels of selling interest spread out between $4.50 and $5.00 to suggest a barrage of liquidation could well emerge in that contract if crop conditions remain friendly and prices continue to grind lower.

Recap: Corn Futures  (Source: CME)
May and July corn futures closed 15 and 13 1/4 cents lower, respectively. The September contract was 1 3/4 cents lower, while new-crop contracts ended a penny lower. Old-crop corn futures posted a low-range close, while new-crop contracts finished mid-range. Bull spread unwinding was again featured in the corn market today. After peaking at $1.12 3/4 on April 3, the May/December corn spread tightened to 73 cents on today's close.

Corn Market Recap for 4/18/2012 (Source: CME)
July Corn finished down 13 1/4 at 594, 15 1/4 off the high and 2 1/4 up from the low. December Corn closed down 1 at 528 3/4. This was 3 1/2 up from the low and 4 1/4 off the high. Corn closed sharply lower on the day for old crop and just slightly lower on the session for new crop and May corn pushed down to the lowest level since January 18th and matched the lows from this date. Funds were noted as active sellers on the session and the July/December spread pushed down to just 65 cent premium July from a premium of $1.07 1/2 on April 3rd. A negative tilt to outside market forces helped to spark the early weakness and then fund traders and spread traders were liquidating old crop corn longs and also old crop/new crop spreads which helped spark heavy selling in the May and July contracts. A bearish weather outlook for planting next week after a little more rain on the weekend kept the market on the defensive. A strong US dollar and weakness in energy and metal markets added to the negative tone. Ethanol production for the week ending April 13th averaged 884,000 barrels per day. This is down 1.3% vs. last week and up 3.3% vs. last year. Corn used in last week's production is estimated at 94.17 million bushels. Corn use needs to average 94.117 million bushels per week to meet this crop year's USDA estimate of 5 billion bushels. Stocks were 21.9 million barrels. This is up 0.9% vs. last week and up 9.3% vs. last year. South Korea bought 65,000 tonnes of optional origin corn. The weekly Corn Planting report showed that 17% of the crop is planted compared to 7% last week and 5% last year. The 10 year average for this time of year is 7%. The highest percent complete prior to this year was 14% in 2004. Illinois was 41% complete as compared with 6% as the 5-year average. Traders see weekly export sales, for release before the opening, near 825,000 tonnes as compared with 975,800 tonnes last week. July Rice finished down 0.08 at 15.74, 0.01 off the high and equal to the low.

U.S. corn planting slows as rains hit -USDA  (Source: CME)
Rainy weather slowed planting of U.S. corn during the weekend but farmers were still well ahead of their typical schedule due to warm soil temperatures, U.S. Agriculture Department data released on Tuesday showed.
Farmers had seeded 17 percent of their corn acreage as of April 15, up from 7 percent a week ago and well ahead of the five-year average of 5 percent, according to the USDA's weekly crop progress and conditions report. A year ago, planting was 5 percent complete.

Corn near 3-week low on U.S. weather  (Source: CME)
Chicago corn fell for a fourth consecutive session to its lowest in nearly three weeks, weighed down by near-perfect crop weather in the U.S. Midwest which has raised hopes of ample supplies. "Corn sowing is 17 percent complete but we think that it is bit higher, more like 20 percent because of favourable weather as it has been a lot warmer than normal," said Andrew Woodhouse, an analyst at Advance Trading Australasia.

SOFTS-Raw sugar rises early on signs of renewed demand
LONDON, April 18 (Reuters) - Raw sugar futures on ICE were higher early, boosted by signs of revived physical demand a day after hitting a four-month low.
Arabica coffee and cocoa futures on ICE also posted modest gains.

India 2011/12 cotton output seen at 34.7 mln bales-govt
MUMBAI, April 18 (Reuters) - India has marginally raised cotton production estimates to 34.7 million bales of 170 kg each for the current year to September from the earlier forecast of 34.5 million bales, a government statement said on Wednesday.
Exports of cotton from India, the world's second biggest producer, for the current year has also been raised to 11.5 million bales from 8.4 million bales estimated earlier.

India to consider more sugar exports-minister
NEW DELHI, April 18 (Reuters) - India is likely to consider more sugar exports soon due to increased availability in the domestic market, Food Minister K.V. Thomas said on Wednesday.
On Tuesday, a producers' body said the country had produced 24.63 million tonnes of sugar between Oct 1 and April 15, up 13.3 percent from the year ago period.

Indonesia sugar imports seen up slightly-US attache
April 17 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Indonesia:
"Indonesia is estimated to produce a total of 24 million tonnes of sugarcane in marketing year (MY) 2011/12. Despite a decline in sugarcane production, Post estimates that Indonesia will produce 1.83 million tonnes of plantation white sugar in MY 2011/12, an increase of 3.4 percent over MY 2010/11. Raw sugar imports are estimated to increase slightly to 2.86 million tonnes over previous MY 2010/11 of 2.835 million tonnes."

Recap: Cotton Futures  (Source: CME)
Cotton futures ended 148 to 250 points higher in the May through October contracts, with the rest of the market ending 63 to 85 points higher. Futures were higher despite negative outside markets and news that India -- the world's second-largest cotton grower -- would export a record amount of cotton this year. India's government said it has approved exports of an additional 1.9 million bales of cotton.

Oil Trades Near One-Week Low in New York on Rising U.S. Supplies (Source: Bloomberg)
Oil traded near the lowest close in more than a week in New York after a government report showed U.S. crude stockpiles rose more than twice as much as forecast. Futures were little changed after declining the most in two weeks yesterday. U.S. supplies gained 3.9 million barrels last week, Energy Department data showed. The median forecast in a Bloomberg News survey of analysts was for an increase of 1.8 million barrels. Prices also dropped after Iraq’s deputy prime minister for energy said the Strait of Hormuz is unlikely to close and there is no shortage of oil. Crude for May delivery was at $102.75 a barrel, up 8 cents, in electronic trading on the New York Mercantile Exchange at 9:39 a.m. Sydney time. The contract yesterday slid 1.5 percent to $102.67, the lowest close since April 10. Prices are 4 percent higher this year.
Brent oil for June settlement fell 81 cents, or 0.7 percent, to $117.97 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark contract’s front month premium to West Texas Intermediate closed at $14.85. Refineries operated at less than 85 percent of capacity for a second week, according to the Energy Department. Gasoline inventories decreased 3.7 million barrels last week, compared with a forecast for a decline of 1.1 million barrels.

Brent stable at $118 as euro zone concerns ease
SINGAPORE, April 18 (Reuters) - Brent crude futures held steady above $118 on Wednesday as concerns on the euro zone crisis eased after a successful Spanish debt auction and a better growth forecast from the International Monetary Fund.
"Traders' risk appetite improved after the successful debt auction, IMF increasing global growth forecast and good data from Germany," said Natalie Robertson, an analyst at ANZ.

Japan's Tohoku venture shuts 250-MW coal-fired unit
TOKYO, April 18 (Reuters) - Japanese utility Tohoku Electric Power Co  said on Wednesday its venture with Tokyo Electric Power , Joban Kyodo Electric Power, shut the 250-megawatt No.7 coal-fired unit at its sole Nakoso power plant at midnight (1500 GMT on Tuesday) after steam leaked from a boiler.
Tohoku said in a statement that it was not concerned about power shortages despite the shutdown.

Euro Coal-Prices dip 50c, June ARA trades at $96/T
LONDON, April 17 (Reuters) - European physical coal prices dipped by around 50 cents on Tuesday due to continued oversupply with only one fresh trade reported, utilities and traders said.  
Oil prices nudged up close to $119 a barrel but spot coal prices are much less aligned with the oil market than forward values for 2013 and 2014, they said.

China daily crude steel output at record in early April -CISA
SHANGHAI, April 18 (Reuters) - China's daily crude steel output hit a record 2.031 million tonnes in the first 10 days of April, up 7.4 percent compared with the last 11 days of March, data from the China Iron & Steel Association (CISA) showed on Wednesday.
The figure was higher than the previous record of 2.018 million tonnes per day in the last 10 days of June last year.

Iron Ore-Spot hovers near 6-mth top, China steel output at record high
SINGAPORE, April 18 (Reuters) - Benchmark spot iron ore held near six-month highs although buying appetite in top consumer China remained thin after a recent spike in prices and traders are eyeing a sale tender of Australian cargoes on Wednesday for market direction.
China's daily crude steel output rose to a record 2.03 million tonnes in early April, although an industry group said the high levels of production may not be sustained given the slow growth in demand.

Drops in iron ore output by majors help prop up price
SYDNEY, April 18 (Reuters) - Global miners BHP Billiton , Vale  and Rio Tinto  all posted sharp drops in quarterly iron ore production due to bad weather, a factor that has helped support iron ore prices at relatively high levels despite signs of a softening market.
The falls in output come as competition heats up in global bulk commodities markets due to demand from China for imported industrial raw materials finally showing signs of waning after years of double-digit growth.

China's steel companies lost 1 bln yuan in Q1-CISA
BEIJING, April 18 (Reuters) - China's steel companies lost about 1 billion yuan ($158.69 million) in the first quarter compared with a profit of 25.8 billion yuan a year ago, an official with the China Iron & Steel Association (CISA) said on Wednesday.
Chinese steelmakers, producing around half of the world's steel output, made a profit of around 2.08 billion yuan in March, CISA vice-chairman Zhang Changfu told reporters at a presser in Beijing.

BHP iron ore, coal mines hit by bad weather, strikes
SYDNEY, April 18 (Reuters) - BHP Billiton   on Wednesday posted sharp drops in iron ore and coal production - key revenue earners for the world's biggest mining house - for the first quarter of 2012 due to bad weather and labour unrest.
The declines come as competition heats up in global bulk commodities markets as demand from China for imported industrial raw materials finally shows signs of waning after years of double-digit growth.

Ukraine's Metinvest sees profit falling after 2011 jump
KIEV, April 17 (Reuters) - Ukrainian mining group and steel producer Metinvest said its net profit was likely to drop in 2012 after quadrupling to $1.85 billion in the prior period, hit this year by weaker iron ore prices.
Iron ore prices plummeted in September-October 2011 after rallying for the previous three quarters, helping boost the company's earnings.
"Given the current situation on the market, we think 2012 will be much closer to 2010 than 2011 (in terms of financial results)," Metinvest's Chief Financial Officer Sergiy Novikov told Reuters.

Baltic sea index rises on high panamax activity
April 17 (Reuters) - The Baltic Exchange's main sea freight index, used to track rates for ships carrying dry commodities, climbed to its highest level since January, due to high panamax activity.
The main index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, rose 14 points or 1.44 percent to 989 points.
"While we continue to expect dry bulk rate volatility, we continue to expect the oversupply of tonnage to keep rates in check through the majority of 2012," Wells Fargo senior analyst Michael Webber said in a note.

20120419 0959 Soy Oil & Palm Oil Related News.

Recap: Soybean Futures (Source: CME)
Soybean futures finished low-range with losses of 16 3/4 in the May through March 2013 contracts. Soyoil also finished low-range with moderate losses, while soymeal closed mid-range with slight to moderate losses. Funds sold an estimated 6,000 soybean contracts (30 million bu.) today. The soybean market had fresh demand news today -- China purchased 120,000 metric tons (MT) of new-crop U.S. beans -- but contrary to the recent trend, the market paid this sale little attention.

Soybean Complex Market Recap  (Source: CME)
July Soybeans finished down 18 at 1413 1/2, 26 1/2 off the high and 4 up from the low. November Soybeans closed down 17 3/4 at 1337 3/4. This was 5 3/4 up from the low and 24 3/4 off the high. July Soymeal closed down 3.4 at 393.9. This was 3.9 up from the low and 5.1 off the high. July Soybean Oil finished down 0.56 at 55.6, 0.88 off the high and 0.05 up from the low. May and July soybeans closed 18 cents lower on the session as fund traders were noted as active with lows of the day posted in early trade. The firm US dollar and weakness in energy and metal markets early today was enough to spark a long liquidation selling trend for soybeans. Continued talk that the market is overbought, record open interest and talk that China may soon slow their import buying helped to spark the selling. While traditional technical indicators such as RSI have corrected from overbought readings to nearly oversold readings and the market is down as much as 65 cents from the April 3rd peak, open interest has seen a steady uptrend to reach another new record high of 811,832 contracts from 551,998 contracts on March 1st. Private exporters reported a sale of 120,000 tonnes of US soybeans to China for the 2012/13 season. The early break pushed the market to the lowest level since March 30th. Traders see weekly export sales, for release before the opening, near 975,000 tonnes as compared with 636,400 tonnes last week.

VEGOILS-Palm oil edges down on export demand fears
SINGAPORE, April 18 (Reuters) - Malaysian palm oil futures slipped as investors feared that the euro zone debt crisis could hurt demand for the edible oil, although losses were curbed as a successful Spanish debt sale helped ease some worries.    
"Traders would have expected it because for the past few weeks we have seen that the export numbers have been quite impressive and we don't expect exports to continue on that trend. There are macroeconomic fears that weigh on exports," said Ker Chung Yang, commodities analyst at Phillip Futures in Singapore.

Disaster shaping up for some EU 2012 rapeseed crops -Oil World
HAMBURG, April 17 (Reuters) - The European Union's 2012 rapeseed crop is seen sliding to a five-year low of 18.48 million tonnes this year, with several countries hit by an especially cold winter, Hamburg-based oilseeds analysts Oil World said on Tuesday.
The disappointing crop means EU rapeseed supplies will again be tight in the forthcoming 2012/13 season and that EU rapeseed crushings are likely to decline, it said.

Oil World cuts Argentine, Brazil soy crop estimate
HAMBURG, April 17 (Reuters) - Hamburg-based oilseeds analyst Oil World said on Tuesday it had cut its forecast of Argentina's 2012 soybean crop by 1.0 million tonnes and that of Brazil by 0.5 million tonnes after drought damaged harvests.
Oil World now forecasts Argentina's 2012 soybean crop at 44.0 million tonnes, down from 49.2 million in 2011. Brazil's crop is forecast at 65.0 million tonnes from 75.3 million tonnes in 2011.

Indonesia soybean meal use seen up-attache
April 17 (Reuters) - Following are selected highlights from a report issued by a U.S. Department of Agriculture attache in Indonesia:
"Indonesian soybean meal consumption will increase from 3 million tonnes in MY 2010/2011 to 3.3 million tonnes in MY 2011/2012 due to higher animal feed production. Post predicts a further increase in SBM domestic consumption to 3.5 million tonnes in MY 2012/2013."