The Dow closed marginally higher up 34.92 at 10344.84 with high volume traded. Daily chart wise, yesterday doji bar candle tested below but managed to closed above the middle Bollinger band with the band width squeeze tighter = market is like to trade side way range bound with seller trying to test the market buying interest. MACD Histrogram reaching a lower low = there are more seller participation compare to buyer. All indicators still suggesting a side way range bound market for the Dow. Support stands at the middle Bollinger band follwed by the 2 plotted lines.
FKLI closed down 3 point at 1264.5 after market opened gap down and took a wild swing to the high of 1270. The last candle bar still traded and resisted by the middle Bollinger band with the band width continue to turn narrower = market is likely to trade side way range bound downside biased. The last 2 MACD Histrogram bar show a some minor improvement = buyers are trying to gain control of the market. Overall market is likely to trade within the plotted downtrend channel on the chart.
FCPO traded 23 points lower to closed the first session of the day at 2449 with thin volume changed hand. Hourly chart wise, price ended below the middle Bollinger band with the band width expanding = market contine to do downward correction. MACD Histrogram also stay lower = no buying interest presented at the market. Looking at the chart, a possible symmetrical triangle break down has been identified. Immediate support stands at 2430 and followed by 2400 level.
UMW Holdings is looking to have full ownership of two jack-up drilling rigs, Naga 2 and Naga 3, for US$46.5m (RM157.6m). The purchase is to be funded via external borrowings. (Financial Daily) We see this proposed acquisition as a step towards the impending listing of its O&G division next year. The purchase cost of RM157.3m makes up only 3% of UMW’s share capital, and is not expected to have a material impact on the financials of the company. We gather that the acquisition will be financed by the funds raised through its recent issuance of Islamic debt securities.
The government will formulate a Bumiputera automotive plan and development fund to ensure the continued involvement and development of the Bumiputera Commercial and Industrial Community in that sector, International Trade and Industry Minister Datuk Mustapa Mohamed said. He said the source of funds would be tapped from the imposition of a RM10,000 charge for each Approved Permit (AP) issued to the open AP holder. "The amount for each AP will be increased progressively each year. This proposal will take effect January 1, 2010," he said. (Bernama)
The government is planning strategic joint ventures between Proton Holdings and original equipment manufacturer(OEM) in a move to increase the national car maker's long-term competitiveness, International Trade and Industry Minister Datuk Mustapa Mohamed said. On duty for cars imported from Asean countries, Mustapa said it would be abolished on January 1, 2010 under the Asean Free Trade Agreement. Import duties would also be reduced or abolished under the Free Trade Agreements which the government has negotiated or signed with several countries. (Bernama)
Proton Holdings expects to sell 65% more cars in Thailand next year, fuelled by the Exora MPV which it is launching at the Bangkok International Motor Expo today. It is also launching the Saga 1.3 in 3Q 2010, as it expects the Savvy to be phased out by then, said Lee Weng Yew, area manager for the company's export division. Thailand is expected to contribute 10-12% to Proton's total export market for FYE3/10, Lee said. (BT)
DRB-Hicom has denied a business weekly news report that it may lose the Suzuki franchise locally. “Neither the company nor its partner, Suzuki Motor Corp, is unaware of the basis and/or the source of the article,” it said. (BT)
Las Vegas Sands’ (LVS) Marina Bay Sands Singapore IR is set to open in March next year. (Reuters) It remains unclear if the timeline quoted in this press report is an official company statement given that a Mar-2010 opening seems to be slightly delayed from the group’s earlier indicative timeline for a Jan or Feb-2010 debut. If this Mar-2010 timeline is true, this would further confirm that Genting Singapore’s upcoming Resorts World Sentosa will debut as Singapore’s first IR given that it is on track for an early Jan-2010 opening.
Las Vegas Sands (LVS) is eyeing potential expansion in Japan, Thailand and India as it looks for growth opportunities in the vibrant Asian region as soon as next year, said CEO Sheldon Adelson.
- Mr Adelson also said there were no plans for LVS to inject its Singapore assets into Sands China and that the firm was not interested in acquisitions in Las Vegas.
- Meanwhile, shares in Sands China made a weak debut yesterday, signalling fading investor appetite for a casino company with high valuations and an uncertain outlook.(Reuters)
Wah Seong has secured a US$163m pipe coating contract for Chevron Australia’s Gorgon gas field project. The contract, which involves the coating of approximately 850km worth of pipes, is expected to commence in 2Q10 and complete by 2012. (BMSB)
The Dubai debt crisis is likely to be solved in the medium term, Bahrain-based investment bank Ithmaar Bank chairman Khalid Abdulla-Janahi said. He said the market can also expect some delays in the issuance of sukuk or Islamic bonds. Last week, Dubai's investment arm Dubai World said it wanted to delay payment of some US$60bn (RM203bn) debt.
- Qatar based Dyarco International Trading general manager U. Achu said Dubai's debt woes could be easily solved by its Abu Dhabi neighbour in a day if it wanted to, as it has US$1tr (RM3.4tr) of reserves. (BT)
Bursa Malaysia announced the inaugural foreign listing of US$500m (RM1.7bn) sukuk issued by GE Capital. The five-year Islamic bond is structured based on the globally accepted syariah principle of Sukuk Al Ijara. Bursa Malaysia registered its first sukuk listings by Petronas and Cagamas in Aug 09. (BT, Bernama)
Sime Darby plans to invest as much as RM2bn over the next five years to expand in China, CEO Ahmad Zubir Murshid said in Kuala Lumpur. This will cover automotives, property and plantations, added Ahmad Zubir. “Basically, we are looking at all of our core businesses there,” he said. “We are looking at between RM1 to 2bn. (Bloomberg)
Sime Darby Auto Connexion Sdn Bhd, the sole distributor of Ford vehicles in Malaysia, expects to sell some 200-300 units of the newly launched Mondeo next year. MD Mohd Hazem Abd Rahman said, “Although the price is slightly more than other sedans in the market, this model is very competitive and is worth the value. It is fully imported from Belgium.” (BT)
Malaysia’s palm oil exports rose 1.8% in November compared with the previous month, estimated Societe Generale de Surveillance, an independent cargo surveyor. (Bloomberg)
Rubber output in Indonesia, Malaysia and Thailand will drop more than 6% in 2009 after unusually heavy rains caused flooding, an industry group said yesterday, raising the prospect of a price rally to last year's peak. Tight supplies blamed on bad weather have pushed up cash prices by more than 10% in the past month, with benchmark Thai RSS3 grade now hovering around US$2.75 a kg - within sight of a 56-year high of US$3.25 struck last July. "Climate change has become an issue of serious concern on the supply potential of natural rubber. Unpredictability of climate limits the scope for developing and popularising region-specific new clones," said the Association of Natural Rubber Producing Countries. "Apart from a fall in yield, even the traditional rubber-growing regions in major producing countries are gradually being rendered unsuitable for growing rubber."
- Output in the three main producers, which account for 70% of global output, could slip to 6.45m tonnes in 2009, down from the October forecast of 6.62m and lower than the 6.91m estimated last year, according to the group.
- 'It's possible for the price to go up to US$3 sometime next year. Let's say by February, the market can have a chance to move higher because people will be looking at the wintering season,' said a dealer in Thailand's southern city of Hat Yai. (Reuters)
Telekom Malaysia is extending the expiration date of its invitation to tender for US$150m worth of bonds by to days to 4pm London time on 4 Dec 09. (Financial Daily)
Indian telco regulator Trai will submit recommendations on the crucial issues of overall spectrum management and review of licence terms in Dec. The recommendations will also throw light on whether there is a need to cap the number of service providers in a circle and whether 2G spectrum should be auctioned and if there is justification for delinking spectrum from licence. Currently under the bundling practice a pan-India licence can be acquired at Rs 1658 crore (US$356m). Airtel, Vodafone-Essar favour delinking while Reliance, Tata oppose it. (Economic Times of India)
About 15m cellular handsets, most of which are cheap imports from China, will go off air today after the Indian government ejected a demand by telecom service providers to extend the deadline for cutting-off services on phones that do not have a mobile equipment identity (IMEI) number. (Economic Times of India)
Property developers can look forward to a bumper year in 2010 with more purchasers and investors expected to enter the market as economic conditions improve. Real Estate and Housing Developers' Association deputy president Datuk Michael Yam said the local property sector may see up to 450,000 potential home buyers for next year.
- "Based on the average household formation and population growth, there is an average demand for 150,000 units (homes) per year. If people have delayed buying in 2008 and this year (because of the financial crisis), you should have around 450,000 people waiting to get into the housing market in 2010," he said. (Starbiz)
The trend of improving global air traffic numbers continued in October, according to the latest data from IATA.
- Passenger demand was up 0.5% compared to October 2008. Demand for international cargo rose to 0.5% below previous year levels. This is significantly better than the 5.4% decline recorded in September. Passenger demand is now 6% better than the low point reached in March 2009, but 5% below the peak recorded in early 2008. Compared to September, seasonally adjusted passenger volumes rose by 0.8%.
- Load factors for passenger and cargo continue at pre-recession levels of 78% and 54.1% respectively. The improvement in load factors to pre-recession levels is largely the result of careful capacity management. Compared to October 2008, overall passenger capacity was down 3.3%. Stripping out seasonal fluctuations, passenger capacity has been essentially flat throughout 2009. Responding to the precipitous fall in cargo demand, October cargo capacity was 7.4% below the previous year's levels.
- Yields remain under severe pressure. Although there has been a modest rise in air fares since mid-year, it remains around 20% less expensive to fly in real terms today than it was a year ago. (SBT)
Malaysia Airlines (MAS) said the first deliveries of its Airbus A380 super-jumbo planes have been delayed at the manufacturer's request. The planes were now slated to start arriving in August 2011 at the earliest, MAS said. The first of the airline's six A380s were supposed to arrive in January 2011, with additional planes being delivered at one-month intervals. (Bloomberg)
Shipping demand has recovered as the global economy has come through the worst of the downturn, said Wei Jiafu, president and chief executive of China Cosco. He described the ups and downs in the Baltic Exchange's main sea freight index, the Baltic Dry Index, as quite natural. The index, which tracks rates to ship dry commodities, had recovered to 3,974 by the end of last week from a 2009 low of 772, but remains well below last year's record high of 11,793.
- Asked if the index indicated that shipping demand was weak, Mr Wei said: 'There is big demand. It's normal in the short run to have challenges, up and down, up and down, but demand has recovered.' 'There is some overcapacity in containers, but relatively speaking, freight volumes are too low. We need the US and Europe to buy more Chinese goods,' he added. (Reuters)
Hong Leong Bank has launched a new unit-linked insurance plan -- " The Hong Leong Enhanced Oil Plan" -- which pays 3.18% guaranteed dividend for one annual premium at the end of the first year. The bank said it would pay 3.88% for two annual premiums at the end of the second year. (Bernama)
Hong Leong Investment Bank (HLIB) appointed Lee Jim Leng as MD and CEO from Nove-24. She brings with her 20 years worth of financial industry experience, specialising mainly in the field of investment banking. Lee was previously managing director with HwangDBS Investment Bank. (BT)
Alam Maritim Resources has, via wholly owned subsidiary Alam Maritim (L) Inc (AMLI), agreed to a 49:51 joint venture with Lembaga Tabung Haji to invest and jointly own six anchor handling tug supply vessels valued at US$1.25m. Alam Maritim said AMLI and Tabung Haji would incorporate TH-ALAM Holdings (L) Inc under the Labuan Offshore Companies Act, 1900 with an authorised and paid-up capital of US$39.3m. (Starbiz)
The closing date for Sarawak Energy’s VGO has been extended from 30 Nov to 14 Dec. The offeror does not intend to extend the offer beyond the revised 14 Dec. All other terms and conditions of the VGO remain unchanged. (BMSB)
Freight Management (FMHB) expects to continue recording positive growth in 2010 amid the global uncertainties. MD Chew Chong Keat said the optimistic outlook is backed by strategies to strengthen the group's foothold in regional markets and to be more prudent in spending. "We have fixed a solid single digit internal growth target for the current fiscal year. However, it could go higher if the economy continues to improve," he said. (BT)
Kumpulan Jetson announced several changes to its management yesterday with the entry of Naza Group’s S M Nasarudin as chairman and his brother, S M Faliq S M Nasimuddin Kamal as vice-chairman. Both are major shareholders of the company through their private vehicles. Former chairman Isnin Rahim was redesignated as ED while Chow Chee Kee was appointed as ED. (Financial Daily)
FCPO ended the November 2009 month with a wide range up bar candle marching through and closed above the middle Bollinger band = market sentiment has just started to turn positive at the very initial premature stage. Bollinger band width continue to narrowing = market could still possilbly trading side way range bound. MACD Histrogram reading improved = buying interest started to returned to the market. Still too early to confirm anything at this moment of time and the plotted upward trend line should be taken as a guide and also possible support line.
FCPO closed 10 points lower at 2472 with lower volume traded forming a doji bar candle. Price still closed above middle Bollinger band = market uptrend remained unchanged. Bollinger band width turned narrowing = the uptrend correction phase is likely to continue. MACD Histrogram getting lower = selling activities dominated today's market transaction. Correction likely to continue to immediate support stands at 2430 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.
FKLI monthly chart wise showing no sign of the bear yet with price continue to trade higher above the middle and near the upper Bollinger band. Bollinger band width continue to narrowing may suggest that market could possibly near a significant top or major resistant level unless the band width started to turn outwards. MACD Historgram continue to record higher reading telling us that buyer participantion in ther market still increasing. Overall the uptrend remained intact with possible correction taking place.
FKLI Nov 09 contract closed marginally higher up 1.5 point at 1267 with higher volume transacted. Chart wise, price still trading below the middle Bollinger band with the band width getting tighter = market is likely to trade side way range bound downwards biased. MACD Histrogram stayed slightly lower = buying and selling activities are near evenly distributed. Expecting a side way range bound market downward biased market.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with larger cut loss and profit target.
Hampered by poor offtake and excalating cost of subsidy, the Government’s highly promoted B5 mandate – the blending of 5% biodiesel with 95% diesel – now stands at the crossroads. Seen initially as one of the national strategic measures for better palm oil stock management with full implementation by January 2010, the B5 mandate is now being closely scrutinised by the Government for a possible reduction to B3 mandate soon.
- This latest decision however does not “blend” well with local palm oil biodiesel producers which have long suffered in silence over the snail phase progress of the B5 mandate. Despite making huge investments in their biodiesel plants here, many felt that their plight were overlooked. (Starbiz)
Last Thursday, the economic regulator of water and sewerage companies in England and Wales, Ofwat, published final determinations of water and sewerage charges for 2010-15. YTL Power’s Wessex Water has been granted a 1.2% average annual price increase limit, higher than the 0.5% weighted average for all the water and sewerage companies. (Ofwat’s Press Release)
CEO of YTL Power’s YTL Communications, Wing K Lee, is confident that a nationwide WiMAX connectivity is a very real possibility. He also said that the introduction of mobile 4G WiMAX was more than the upgrading of existing technology; it was an entire paradigm shift.
- YTL Communications expects to require 1,920 base stations to cover the whole of Peninsula Malaysia.
- Rolling out in 3Q 2010, YTL is promising a nationwide WiMAX network with greater speeds than existing 3G networks. (Financial Daily)
There is no denying that competition has gone up several notches of late in the broadband space. Industry players are scrambling for net adds. While Green Packet’s P1 added 36,000 subscribers in 3Q, Telekom Malaysia (TM) saw a further reduction of its broadband net addition subscribers to 28,000. TM, however, is not sitting idle. In an earlier interview, group CEO Datuk Zam Isa said the company would continue to put in a lot of effort to improve its Streamyx service on all fronts. (Starbiz)
Axiata Bangladesh, and Warid Telecom have signed an infrastructure sharing agreement which allows both the operators to share tower spaces for setting up microwave and GSM antennas. It also allows sharing land for setting up BTS rooms, electrical power and generator power sharing. (Telecompaper)
Emery Oleochemicals Group, 50% owned by Sime Darby, is geared for competition and profit growth after a year of internal restructuring and rebranding. Emery CEO and board member Dr Kongkrapan Intarajang said the group has been busy with internal restructuring and reorganising its operations in the US, Canada, Germany and Malaysia since PTT Chemical's entry. "Previously, the group operated regionally. Now, it has been reorganised to operate across regions and interact seamlessly as a global company headquartered here in Malaysia. "We have trimmed it into three main regions comprising Asia, Europe and the US," Kongkrapan added. (BT)
Sime Darby will build a new RM100m hospital at its residential development in Ara Damansara, Selangor, bringing the group's total number of hospitals in the country to four. The new hospital is expected to be completed by 2012. An industry source said the new hospital is part of Sime Darby's vision in becoming a formidable healthcare player in the country and the region. "The new hospital in Ara Damansara will be known as the Sime Darby Medical Centre Ara Damansara. Sime Darby is intensifying efforts to bolster its healthcare business division, where the segment is very competitive but recession-proof, enabling the group to earn an income even during economic hard times," the source added. (BT)
A new 300MW gas-fired power plant, owned by a 60:40 JV company between Petronas Gas and Yayasan Sabah’s business arm NRG Consortium, is set to give Sabah’s critical energy sector a boost by 2013. CM Datuk Musa Aman said the plant would resolve much of the power shortage problems on the west coast of the state although there was still a need for another plant on the east coast. (Starbiz)
MMC Corp’s unit, Malakoff Corp, is exploring the possibility of acquiring a substantial stake in 1,400MW Jimah power plant and the company undertaking its operations and maintenance works, say sources. “It is carrying out due diligence on Jimah O&M Sdn Bhd and Jimah Teknik Sdn Bhd and will decide if these are feasible investments,” says a source. “The due diligence is expected to be concluded next month,” adds the source. The coal-fired Jimah power plant is 80%-owned by Jimah Energy Ventures Sdn Bhd while Tenaga holds 20%. (The Edge Weekly)
Port of Tanjung Pelepas (PTP) and the Federation of Malaysian Manufacturers' (FMM) Johor branch have agreed to leave the final decision to consolidate PTP and the Johor Port to the Cabinet. PTP deputy CEO Azlan Shahrim said the consensus was reached after a two-hour meeting between the two parties. Azlan said the consolidation was proposed by MMC Corp as Johor Port was congested and operating at full capacity with no room for expansion. (BT)
The Penang government has allowed two local companies to build 1km monorail test tracks in Seberang Perai Selatan, Deputy CM II P. Ramasamy said. "Our aim is to showcase the monorail technology. The state government is not bound by any agreement involving project cost," he said. "We hope that the monorail tracks and coaches will be ready in one year. The two companies will be asked to dismantle the tracks and vacate the land if we feel that it is unsuitable," he added. (Bernama)
Malaysia Airlines’ (MAS) success in securing finances worth US$126m under the Japanese Operating Lease (JOL) for seven ATR72-500s aircraft was named “Aircraft Leasing Deal of the Year – Asia” by Jane Transport Finance. The success in securing the financing was especially significant in light of a very quiet Japanese equity market. JOL is a unique aircraft financing structure whereby the financier takes the form of a special purpose vehicle, which acquires title of the aircraft, and leases the same to MAS on operating lease terms. (BT)
Proton is set to launch its maiden MPV Exora in the Thai market at the Thailand International Motor Expo this week. Based on initial feedback from the media and industry experts, a good response was expected from Thai buyers. (Bernama)
TA Global is teaming up with Townline Gardens Inc, a Canadian home builder, on a 65:35 JV basis, to develop a C$130m (RM422.5m) mixed-development project over seven years. The residential and commercial units will be built on a 8.9ha land in the City of Richmond, British Columbia, in a project known as "The Gardens". (BT)
Last Friday panic regional equity market selldown due to Dubai dept incident spurts over during FKLI opening this morning followed by buyer bargain hunting activities and major Asia market recovery helped stabilise the market's. Hourly chart wise (Dec09 chart), price still closed below the middle Bollinger band with the band width expanding marginally = market could possibly move lower. However, MACD Histrogram continue to edge higher = buying power remained strong through out the morning session. Immediate resistant seen at the middle Bollinger band followed by 1267 level.
Crude palm oil futures continue to consolidate traded 19 points lower to closed at 2463. Hourly chart wise, price traded below the middle Bollinger band = market is in selling mood. Bollinger band width turning inwards mildly = side way range bound market likely. MACD Histrogram continue to fall lower = seller took charge of the market in the morning session. Should Bollinger band width reversed and turn outwards, further downside movement would be likely. Immediate support seen at the lower Bollinger band and followed by 2430 level.
A double bottom formation has been identified on the FCPO weekly chart basis that tested the neckline resistant. All the indicators in the chart are showing an upside biased market movement for the week ahead thats favour a double bottom break up. Should this is the case the immediate target/resistant will be at the 2800 level. And should the break up failed, expecting a sideway range bound market with the resistant still rest at the 2523~2525 level and immediate support stands at the 2285 and followed by the middle Bollinger band level.
