Australia: Consumer prices rose 0.6% QoQ in the 2Q10 from the previous three months, the Bureau of Statistics said in. Prices increased 3.1% YoY. (Source: Bloomberg)
Malaysia: Miti taking proactive measures to attract FDIs
The drop in foreign investments into Malaysia is not as bad as revealed by the Unctad World Investment Report (WIR) 2010 and changes are under way to ensure the country competes to attract high value-added investments. International Trade and Industry Minister Datuk Seri Mustapa Mohamed said net investments in the first quarter rebounded to USD1.41bn and exceeded that of the whole of last year and he had told the Cabinet that the ministry would be taking proactive measures to encourage mo re foreign and domestic investment. (StarBiz)
Malaysia: Consumer confidence turns more optimistic
Consumer confidence in Malaysia inched up to 99 index points in the second quarter from 98 points in the first quarter of this year, according to the latest Nielsen Global Consumer Confidence Survey. In a statement, Nielsen said the latest consumer confidence index gain in Malaysia also represented an 18-point surge from an all-time low in the first quarter last year. Consumer Confidence Index levels above and below a baseline of 100 indicate degrees of optimism and pessimism respectively. (StarBiz)
New Zealand: Raises benchmark rate for second month. "Further removal of monetary policy stimulus is appropriate," central bank Governor Alan Bollard said in a statement released in Wellington after boosting the official cash rate by a quarter percentage point to 3%. (Source: Bloomberg)
Japan: Slower production may build case for stimulus extension
Japanese industrial production probably grew at the slowest pace in more than a year last quarter, adding pressure on the government to extend consumer incentives as export growth cools. Factory output rose 0.2% in June from May, according to the median estimate of 26 economists surveyed by Bloomberg News ahead of a Trade Ministry report to be released in Tokyo. That would cap the smallest quarterly gain since production fell in the first three months of 2009. (Bloomberg)
Japan: Refining hits 10-week high at oil plants
Oil refining in Japan, the world’s third-largest consumer of crude, rose to a 10-week high as producers resume operations after maintenance shutdowns. The nation’s refiners were using more than 75% of capacity in the week ended 17 July, the highest rate since 8 May, according to data from the Petroleum Association of Japan. That compares with this year’s low of less than 62% in the week ended 19 June. (Bloomberg)
EU: ECB says banks tightened credit standards further
European banks continued to tighten credit standards for companies and households in the second quarter as the sovereign debt crisis impaired their access to funding, the European Central Bank said. “The downward trend in the net tightening of credit standards on loans to enterprises, which came to a halt in the first quarter of 2010, was reversed in the second quarter, increasing from 3% to 11%,” the Frankfurt-based central bank said in its quarterly Bank Lending Survey. (Bloomberg)
S. Korea: Current-account surplus widened to a one-year high in June as the global recovery supported demand for the country's cars and semiconductors. The windfall was USD 5.04b, from a revised USD 3.82b in May, the Bank of Korea said. The surplus was the biggest since June 2009. (Source: Bloomberg)
UK: King forecasts no early return to ‘normal’ rate level
Bank of England Governor Mervyn King said there may be a “considerable” way to go before UK interest rates return to “normal” as policy makers debate when to start withdrawing emergency stimulus from the economy. “There will come a point when we will certainly need to ease off the accelerator and return Bank Rate to more normal levels,” King told lawmakers in London. “I look forward to that time because it will probably be a signal that there is a smoother drive ahead, with the economic outlook improving in a durable way. But I fear there is some considerable distance to travel before we can begin to use the word ‘normal’.” (Bloomberg)
US: Durables show investment picking up
Business investment in the US picked up in the second quarter, helping sustain the economic recovery, June data on durable goods showed. Orders for non-military capital equipment excluding aircraft climbed 0.6% last month after jumping 4.6% in May, more than previously reported, figures from the Commerce Department showed in Washington. Sales of such gear, used in calculating gross domestic product, also rose. (Bloomberg)
U.S: Fed's Beige Book says economic recovery slowed in some areas over the past two months, dragged down by commercial real estate and the expiration of a tax credit for homebuyers. "Economic activity has continued to increase, on balance, since the previous survey," the central bank said in its Beige Book business survey, while noting that two of the Fed's 12 districts reported the economy "held steady" and two said the pace of expansion slowed. (Source: Bloomberg)
Thursday, July 29, 2010
20100729 1233 Malaysia Corporate News.
RM4.20 per share for MEASAT
In an unusual twist of events, shares of two companies controlled by Malaysian billionaire T Ananda Krishnan - regional satellite network operator MEASAT and conglomerate Tanjong plc - were suspended from trading on Bursa Malaysia Securities yesterday, fuelling rumours of major corporate exercises. The reclusive tycoon holds a 59.56% stake in MEASAT and 30.92% in Tanjong Plc. Ending long time speculation, MEASAT Global Network Systems SB announced yesterday evening a privatization offer for MEASAT Global at RM4.20 cash per share. The offer is conditional upon acceptance from 90% of the nominal value of the shares (excluding those already held by MEASAT Global) and relevant approvals.(Financial Daily)
Khazanah to raise SGD2.65bn for Parkway takeover
Fresh from winning the battle for Singapore’s healthcare group, Parkway Holdings Ltd, state-owned investment arm Khazanah Nasional is looking to raise around SGD2.65bn (RM6.19bn) in bonds and bank loans to help finance its SGD3.5bn takeover of the largest private hospital operator in Asia. Around SGD800m in sukuk will be arranged by OCBC Banking Corp, DBS Group Holdings and CIMB Group Holdings. The sukuk road show is scheduled to be undertaken in Singapore on Monday, with book building to start on Tuesday. (Financial Daily)
George Kent secures RM130m water job
George Kent has secured another water infrastructure project with the award of a RM129.8m contract to construct and complete a 160m milliliters per day water treatmentplant in Kuantan, Pahang. The contract was awarded by the East Coast Economic Region Development Council in an open tender, the company said. The project was scheduled for completion by 12 Aug 2013, which would be 157 weeks from the site possession date of 10 Aug 2010. (Malaysian Reserve)
WCT proposes to issue RM600m bonds with warrants
WCT has proposed an issuance of RM600m nominal value serial fixed rate bonds of up to five years with up to 181m detachable warrants on a “bought deal” basis to primary subscribers. WCT also proposed an offer for sale of the provisional rights to the allotment of up to 181m WCT warrants by primary subscribers at an offer price to be determined to shareholders and entitled senior management of the WCT group of companies. The company said the proceeds from the proposed bonds with warrants would enable it to refinance its existing borrowings, resulting in interest savings for the company. “The proposed exercises will allow the company to lock in financing at a lower effective funding cost, thereby allowing the WCT group to better plan its cash flow requirements,” it said. It said upon exercise of the WCT warrants, the company would obtain additional proceeds to redeem the bonds, finance the working capital requirements of the group in the future and repay borrowings, in addition to strengthening WCT’s capital base. (StarBiz)
PepsiCo renews Permanis’ bottling rights
PepsiCo has extended the rights of C.I. Holdings’s (CIH) wholly-owned subsidiary Permanis to manufacture and sell its beverage brands in Malaysia for 10 years. PepsiCo and C.I. Holdings said in a joint statement that the two parties had signed an exclusive bottling agreement to renew the franchise bottling rights of Permanis. PepsiCo general manager for its South-East Asia business unit, Manu Anand, said the renewal and extension of the agreement showed PepsiCo’s confidence in Permanis as a long-term strategic growth partner for its Malaysian beverage business. (StarBiz)
CIH: Secures 10-year extension to PepsiCo bottling deal. CI Holdings Bhd's (CIH) subsidiary Permanis Sdn Bhd has secured a 10-year extension (until June 30, 2020) of its franchise bottling rights with PepsiCo for the manufacture and sale of the latter?s beverage brands in Malaysia. (Source: The Edge Financial Daily)
GAB: Profits from World Cup. The month-long World Cup was a profitable time for the drinks industry which saw an increase of between 30% and 40% sales for pubs and clubs. GAB invested RM10m to promote its activities during the World Cup and it paid off handsomely. (Source: The Sun)
Markets: SC revokes SJ Asset Management licence. The Securities Commission (SC) has revoked SJ Asset Management Sdn Bhd's (SJAM) licence effective immediately, after investigations found the company had broken rules. SJAM failed to safeguard clients' assets and engaged in deceitful and improper business practices, the SC said. The company was also found to have given the SC false and misleading information. (Source: Business Times)
MAS: Eyes 5% annual revenue growth from charter services. Malaysian Airline System Bhd (MAS) expects a 5% annual growth in the revenue from charter services due to high demand and the availability of resources. The charter services are especially for places that are difficult to get to and which other airlines refuse to service. (Source: The Edge Financial Daily)
MRCB: To raise RM400m for KL Sentral Park. MRCB Sentral Properties Sdn Bhd, a unit of Malaysian Resources Corp Bhd (MRCB), will raise RM400m of debt to finance the development of its latest project called KL Sentral Park. The commercial paper/medium term notes (CP/MTN) programme is arranged by Affin Investment Bank Bhd. The financing, which is being guaranteed by Danajamin Nasional Bhd, is for a period of 7 years. (Source: Business Times)
Steel: Acerinox plans additional EUD251m investment here. Acerinox SA, the world's biggest stainless steel maker, is investing an extra EUD251m (RM1b) for the second phase of its stainless steel production plant in Malaysia. Acerinox?s investment in Tanjung Langsat near Pasir Gudang is the single largest foreign investment in Johor so far, with a commitment to pump in as much as USD1.5b (RM4.8b) into the Johor economy. (Source: Business Times)
In an unusual twist of events, shares of two companies controlled by Malaysian billionaire T Ananda Krishnan - regional satellite network operator MEASAT and conglomerate Tanjong plc - were suspended from trading on Bursa Malaysia Securities yesterday, fuelling rumours of major corporate exercises. The reclusive tycoon holds a 59.56% stake in MEASAT and 30.92% in Tanjong Plc. Ending long time speculation, MEASAT Global Network Systems SB announced yesterday evening a privatization offer for MEASAT Global at RM4.20 cash per share. The offer is conditional upon acceptance from 90% of the nominal value of the shares (excluding those already held by MEASAT Global) and relevant approvals.(Financial Daily)
Khazanah to raise SGD2.65bn for Parkway takeover
Fresh from winning the battle for Singapore’s healthcare group, Parkway Holdings Ltd, state-owned investment arm Khazanah Nasional is looking to raise around SGD2.65bn (RM6.19bn) in bonds and bank loans to help finance its SGD3.5bn takeover of the largest private hospital operator in Asia. Around SGD800m in sukuk will be arranged by OCBC Banking Corp, DBS Group Holdings and CIMB Group Holdings. The sukuk road show is scheduled to be undertaken in Singapore on Monday, with book building to start on Tuesday. (Financial Daily)
George Kent secures RM130m water job
George Kent has secured another water infrastructure project with the award of a RM129.8m contract to construct and complete a 160m milliliters per day water treatmentplant in Kuantan, Pahang. The contract was awarded by the East Coast Economic Region Development Council in an open tender, the company said. The project was scheduled for completion by 12 Aug 2013, which would be 157 weeks from the site possession date of 10 Aug 2010. (Malaysian Reserve)
WCT proposes to issue RM600m bonds with warrants
WCT has proposed an issuance of RM600m nominal value serial fixed rate bonds of up to five years with up to 181m detachable warrants on a “bought deal” basis to primary subscribers. WCT also proposed an offer for sale of the provisional rights to the allotment of up to 181m WCT warrants by primary subscribers at an offer price to be determined to shareholders and entitled senior management of the WCT group of companies. The company said the proceeds from the proposed bonds with warrants would enable it to refinance its existing borrowings, resulting in interest savings for the company. “The proposed exercises will allow the company to lock in financing at a lower effective funding cost, thereby allowing the WCT group to better plan its cash flow requirements,” it said. It said upon exercise of the WCT warrants, the company would obtain additional proceeds to redeem the bonds, finance the working capital requirements of the group in the future and repay borrowings, in addition to strengthening WCT’s capital base. (StarBiz)
PepsiCo renews Permanis’ bottling rights
PepsiCo has extended the rights of C.I. Holdings’s (CIH) wholly-owned subsidiary Permanis to manufacture and sell its beverage brands in Malaysia for 10 years. PepsiCo and C.I. Holdings said in a joint statement that the two parties had signed an exclusive bottling agreement to renew the franchise bottling rights of Permanis. PepsiCo general manager for its South-East Asia business unit, Manu Anand, said the renewal and extension of the agreement showed PepsiCo’s confidence in Permanis as a long-term strategic growth partner for its Malaysian beverage business. (StarBiz)
CIH: Secures 10-year extension to PepsiCo bottling deal. CI Holdings Bhd's (CIH) subsidiary Permanis Sdn Bhd has secured a 10-year extension (until June 30, 2020) of its franchise bottling rights with PepsiCo for the manufacture and sale of the latter?s beverage brands in Malaysia. (Source: The Edge Financial Daily)
GAB: Profits from World Cup. The month-long World Cup was a profitable time for the drinks industry which saw an increase of between 30% and 40% sales for pubs and clubs. GAB invested RM10m to promote its activities during the World Cup and it paid off handsomely. (Source: The Sun)
Markets: SC revokes SJ Asset Management licence. The Securities Commission (SC) has revoked SJ Asset Management Sdn Bhd's (SJAM) licence effective immediately, after investigations found the company had broken rules. SJAM failed to safeguard clients' assets and engaged in deceitful and improper business practices, the SC said. The company was also found to have given the SC false and misleading information. (Source: Business Times)
MAS: Eyes 5% annual revenue growth from charter services. Malaysian Airline System Bhd (MAS) expects a 5% annual growth in the revenue from charter services due to high demand and the availability of resources. The charter services are especially for places that are difficult to get to and which other airlines refuse to service. (Source: The Edge Financial Daily)
MRCB: To raise RM400m for KL Sentral Park. MRCB Sentral Properties Sdn Bhd, a unit of Malaysian Resources Corp Bhd (MRCB), will raise RM400m of debt to finance the development of its latest project called KL Sentral Park. The commercial paper/medium term notes (CP/MTN) programme is arranged by Affin Investment Bank Bhd. The financing, which is being guaranteed by Danajamin Nasional Bhd, is for a period of 7 years. (Source: Business Times)
Steel: Acerinox plans additional EUD251m investment here. Acerinox SA, the world's biggest stainless steel maker, is investing an extra EUD251m (RM1b) for the second phase of its stainless steel production plant in Malaysia. Acerinox?s investment in Tanjung Langsat near Pasir Gudang is the single largest foreign investment in Johor so far, with a commitment to pump in as much as USD1.5b (RM4.8b) into the Johor economy. (Source: Business Times)
20100729 1211 Global Market News.
Asia shares retreat from highs, dollar dips
TOKYO, July 29 (Reuters) - Asian stocks edged down from a three-month high and the dollar eased towards three-month lows , hit by soft U.S. data that underlined the patchy nature of the U.S. economic recovery.
"Profit-taking is coming to the fore because coupled with worries about the uncertain outlook for the U.S. and European economies, U.S. stocks seem to be peaking," said Yutaka Miura, a senior technical analyst at Mizuho Securities in Tokyo.
NEW YORK, July 28 (Reuters) - World stocks fell, snapping a four-day rally on Wednesday, as weak orders for U.S. durable goods in June and the Federal Reserve's downbeat take on the economy dampened the outlook and drove the dollar lower.
"Earnings have been good, but the overall economy is still sluggish at best and is not coming back as much as we would have hoped," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati.
Earnings boost stocks, euro rises
LONDON, July 28 (Reuters) - World stocks rose for the fifth day running as solid corporate earnings combined with easing fears about financial stability to boost investors appetite for riskier assets.
"Earnings are coming through better than expected," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin. "Banks are better ... having underperformed for some time."
TOKYO, July 29 (Reuters) - Asian stocks edged down from a three-month high and the dollar eased towards three-month lows , hit by soft U.S. data that underlined the patchy nature of the U.S. economic recovery.
"Profit-taking is coming to the fore because coupled with worries about the uncertain outlook for the U.S. and European economies, U.S. stocks seem to be peaking," said Yutaka Miura, a senior technical analyst at Mizuho Securities in Tokyo.
NEW YORK, July 28 (Reuters) - World stocks fell, snapping a four-day rally on Wednesday, as weak orders for U.S. durable goods in June and the Federal Reserve's downbeat take on the economy dampened the outlook and drove the dollar lower.
"Earnings have been good, but the overall economy is still sluggish at best and is not coming back as much as we would have hoped," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati.
Earnings boost stocks, euro rises
LONDON, July 28 (Reuters) - World stocks rose for the fifth day running as solid corporate earnings combined with easing fears about financial stability to boost investors appetite for riskier assets.
"Earnings are coming through better than expected," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin. "Banks are better ... having underperformed for some time."
20100729 1209 Soy Oil & Palm Oil Related News.
Soyoil ended higher, following the lead of soybeans, but advances were limited by meal/oil spreading and weakness from crude oil futures. Crude-oil influences soyoil due to its use in making renewable fuels. December soyoil settled 0.28 cents or 0.7% higher at 39.57 cents per pound.(Source:CME)
China Ministry: July Soybean Imports Likely 5.6 Million Tons(Source: CME)
China's soybean imports in July are likely to reach 5.6 million metric tons, the Ministry of Commerce said Wednesday.
The new estimate is 3.6% lower than a commerce ministry estimate earlier this month.
However, it would still be the second-highest monthly import volume so far this year, after last month's record 6.2 million ton intake.
If realized, it would be a 27% increase from the same period last year, based on customs data.
The estimate, published on the ministry's website, is based on reports from importers during the June 16-June 30 period, and the regular forecast is usually lower than the actual import figure, as it doesn't include all cargoes.
The ministry issues the estimates twice a month.
India Soyoil Imports May Slow Down In Next 4 Months - Executive(Source:CME)
India's soyoil imports, after rising sharply in the past few months, are likely to slow in the next four months due to a rise in the premium over palm oil and higher supplies of local crops, a senior industry executive said Wednesday.
"We expect 300,000-500,000 tons of soyoil may come in July-October period," said Srinivaas Sirigeri, managing director of Shakti Enterprises, a Mumbai-based importer.
India's soyoil imports in the first eight months of the marketing year that began Nov. 1 jumped nearly 40% from a year earlier to 914,676 tons, according to data from the Solvent Extractors' Association.
The premium of soyoil over palm oil has risen to $90 per ton from about $40/ton about two months ago, Sirigeri said.
"If the soyoil prices stay at these levels, then imports will gradually decrease," he added.
Indian companies increased their soyoil imports over the past few months after a decline in the premium over palm oil. Soyoil normally commands a premium over palm oil due to its better quality.
The South Asian nation is the world's second-largest edible oil consumer after China and meets more than half of its annual requirement through imports. It imports palm oil mainly from Indonesia and Malaysia and soyoil mostly from Brazil and Argentina.
The country may import a total of 1.3 million to 1.5 million tons of soyoil in 2009-10, Sirigeri said. India imported 989,613 tons of soyoil in 2008-09.
Soybean arrivals in the local market have also increased as farmers are offloading more stocks to raise money required for the new crop sowing, he added.
Soybean sowing in India starts in June and continues through July.
Palm oil steady on output concern, FX weigh
JAKARTA, July 28 (Reuters) - Malaysian crude palm oil was little changed as concerns that rains would slow palm oil output providing support countered expectations of a stronger ringgit and ample supply of other oilseeds weighing on the market.
"The bullish factors are market concern about palm oil output and good demand, at least for the Ramadan offtake," said a trader with a domestic commodities brokerage.
US soymeal demand to slip again in 2010-Oil World
AMSTERDAM July 27 (Reuters) - Soymeal consumption in the United States is set to decline for a third year in the 2009/10 season, while demand is rising in Brazil and Russia, oilseeds analysts Oil World said on Tuesday.
U.S. consumption of soymeal is expected to amount to about 27.6 million tonnes in October/September 2009/10, down from 27.9 million tonnes in the previous season, the Hamburg-based oilseeds analysts said.
Canola oil would qualify for biodiesel mandate-EPA
WINNIPEG, Manitoba, July 27 (Reuters) - Biodiesel made from canola oil would emit 50 percent less greenhouse gas than petroleum diesel fuel, which would make it eligible for the U.S. mandate to increase renewable fuel production, according to the U.S. Environmental Protection Agency (EPA).
EPA data that compares greenhouse gas emissions between biodiesel and conventional diesel, released on Monday, shows canola oil would meet a key eligibility requirement for the U.S. Renewable Fuel Standard program.
China Ministry: July Soybean Imports Likely 5.6 Million Tons(Source: CME)
China's soybean imports in July are likely to reach 5.6 million metric tons, the Ministry of Commerce said Wednesday.
The new estimate is 3.6% lower than a commerce ministry estimate earlier this month.
However, it would still be the second-highest monthly import volume so far this year, after last month's record 6.2 million ton intake.
If realized, it would be a 27% increase from the same period last year, based on customs data.
The estimate, published on the ministry's website, is based on reports from importers during the June 16-June 30 period, and the regular forecast is usually lower than the actual import figure, as it doesn't include all cargoes.
The ministry issues the estimates twice a month.
India Soyoil Imports May Slow Down In Next 4 Months - Executive(Source:CME)
India's soyoil imports, after rising sharply in the past few months, are likely to slow in the next four months due to a rise in the premium over palm oil and higher supplies of local crops, a senior industry executive said Wednesday.
"We expect 300,000-500,000 tons of soyoil may come in July-October period," said Srinivaas Sirigeri, managing director of Shakti Enterprises, a Mumbai-based importer.
India's soyoil imports in the first eight months of the marketing year that began Nov. 1 jumped nearly 40% from a year earlier to 914,676 tons, according to data from the Solvent Extractors' Association.
The premium of soyoil over palm oil has risen to $90 per ton from about $40/ton about two months ago, Sirigeri said.
"If the soyoil prices stay at these levels, then imports will gradually decrease," he added.
Indian companies increased their soyoil imports over the past few months after a decline in the premium over palm oil. Soyoil normally commands a premium over palm oil due to its better quality.
The South Asian nation is the world's second-largest edible oil consumer after China and meets more than half of its annual requirement through imports. It imports palm oil mainly from Indonesia and Malaysia and soyoil mostly from Brazil and Argentina.
The country may import a total of 1.3 million to 1.5 million tons of soyoil in 2009-10, Sirigeri said. India imported 989,613 tons of soyoil in 2008-09.
Soybean arrivals in the local market have also increased as farmers are offloading more stocks to raise money required for the new crop sowing, he added.
Soybean sowing in India starts in June and continues through July.
Palm oil steady on output concern, FX weigh
JAKARTA, July 28 (Reuters) - Malaysian crude palm oil was little changed as concerns that rains would slow palm oil output providing support countered expectations of a stronger ringgit and ample supply of other oilseeds weighing on the market.
"The bullish factors are market concern about palm oil output and good demand, at least for the Ramadan offtake," said a trader with a domestic commodities brokerage.
US soymeal demand to slip again in 2010-Oil World
AMSTERDAM July 27 (Reuters) - Soymeal consumption in the United States is set to decline for a third year in the 2009/10 season, while demand is rising in Brazil and Russia, oilseeds analysts Oil World said on Tuesday.
U.S. consumption of soymeal is expected to amount to about 27.6 million tonnes in October/September 2009/10, down from 27.9 million tonnes in the previous season, the Hamburg-based oilseeds analysts said.
Canola oil would qualify for biodiesel mandate-EPA
WINNIPEG, Manitoba, July 27 (Reuters) - Biodiesel made from canola oil would emit 50 percent less greenhouse gas than petroleum diesel fuel, which would make it eligible for the U.S. mandate to increase renewable fuel production, according to the U.S. Environmental Protection Agency (EPA).
EPA data that compares greenhouse gas emissions between biodiesel and conventional diesel, released on Monday, shows canola oil would meet a key eligibility requirement for the U.S. Renewable Fuel Standard program.
Wednesday, July 28, 2010
20100728 1821 FCPO EOD Daily Chart Study.
Bollinger band reading : correction upside biased.
MACD Histrogram : weakening, buyer defending position.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2520, 2550 level.
Comment :
Lesser volume participation FCPO closed little higher after tested above resistant level but lack of supportive volume resulted price to closed just 5 points below it. Daily chart wise, market opened lower and closed near the high formed a up bar candle but still lack of supportive volume. Outlook retained a correction range bound upside biased market with potential resumption of upward movement should better volume returned to market.
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.
20100728 1718 FKLI EOD Daily Chart Study.
Bollinger band reading : range bound, upside biased.
MACD Histrogram : weakening, buyer defending position.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385 level.
Comment :
Mostly rollover activities FKLI ended the day 1 tick higher with slightly lower volume changed hand. Today daily chart formed another doji bar candle as market traded side way range bound testing support and resistant level without designate direction. Outlook remained unchanged with a side way range bound upside biased market.
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.
20100728 1302 FKLI Mid Day Hourly Chart Study.
Bollinger band reading : upside biased.
MACD Histrogram : recovering, buyer still defending.
Support : 1350, 1345, 1337 level.
Resistant : 1360, 1375, 1385 level.
Comment :
High volume transaction FKLI closed for lunch at higher ground as market continue to move range bound testing support and resistant level. Hourly chart wise, market still suggesting a upside biased potential market development for the near term.
20100728 1301 FCPO Mid Day Hourly Chart Study.
Bollinger band reading : side way range bound.
MACD Histrogram : recovering, buyer seems testing market.
Support : 2470, 2450, 2400 level.
Resistant : 2500, 2520, 2550 level.
Comment :
Poor trading volume FCPO manage to record small gain for the morning session after market opened lower and traded side way within a tight 22 points range. Hourly chart wise, market tested and closed above middle Bollinger band resistant level with the outlook suggesting a side way range bound reading.
20100728 1023 Global Economic News.
U.S: Confidence slips to five-month low in July. The Conference Board's sentiment index fell to 50.4, below the median forecast of economists surveyed by Bloomberg News and to the lowest level since February this year. (Source: Bloomberg)
U.S: Home prices in 20 cities rose more than forecast in May. The S&P/Case-Shiller index of property values increased 4.6% YoY from May 2009, the biggest year-over-year gain since August 2006. (Source: Bloomberg)
India: Central bank increased a key interest rate as it battles to contain a surge in inflation that's triggered labor strikes and opposition-party organized public protests. The Reserve Bank of India raised the reverse repurchase rate to 4.5% from 4.0% and the repurchase rate to 5.75% from 5.5%, according to a statement from the central bank in Mumbai. (Source: Bloomberg)
S. Korea: Consumer sentiment held at five-month high in July as the nation's economy strengthened and the region weathered global risks. The sentiment index was 112, unchanged from June. (Source: Bloomberg)
Korea - Bank of Korea wants to signal rate rise at June meet
A majority of Bank of Korea board members wanted to flag an imminent rise in interest rates at their June meeting, before increasing borrowing costs this month for the first time since the global crisis. Three out of five members urged Governor Kim Choong Soo to send a stronger signal that rates may start to rise as early as July, according to minutes of the 10 June meeting released by the central bank. (Bloomberg)
Hong Kong: Exports climb more-than-estimated 26.7% YoY in June. Shipments rose to HKD 267.6b (USD 34.4b) after gaining 24.4% YoY in May. (Source: Bloomberg)
South Africa - Sheds jobs, denting economic recovery
South Africa’s unemployment rate, the highest of 62 countries tracked by Bloomberg, was little changed in the second quarter as the economy failed to create jobs, undermining the strength of the recovery. The jobless rate increased to 25.3% from 25.2% in the first quarter, statistics showed. The number of people with work fell by 61,000 to 12.7m. (Bloomberg)
U.S: Home prices in 20 cities rose more than forecast in May. The S&P/Case-Shiller index of property values increased 4.6% YoY from May 2009, the biggest year-over-year gain since August 2006. (Source: Bloomberg)
India: Central bank increased a key interest rate as it battles to contain a surge in inflation that's triggered labor strikes and opposition-party organized public protests. The Reserve Bank of India raised the reverse repurchase rate to 4.5% from 4.0% and the repurchase rate to 5.75% from 5.5%, according to a statement from the central bank in Mumbai. (Source: Bloomberg)
S. Korea: Consumer sentiment held at five-month high in July as the nation's economy strengthened and the region weathered global risks. The sentiment index was 112, unchanged from June. (Source: Bloomberg)
Korea - Bank of Korea wants to signal rate rise at June meet
A majority of Bank of Korea board members wanted to flag an imminent rise in interest rates at their June meeting, before increasing borrowing costs this month for the first time since the global crisis. Three out of five members urged Governor Kim Choong Soo to send a stronger signal that rates may start to rise as early as July, according to minutes of the 10 June meeting released by the central bank. (Bloomberg)
Hong Kong: Exports climb more-than-estimated 26.7% YoY in June. Shipments rose to HKD 267.6b (USD 34.4b) after gaining 24.4% YoY in May. (Source: Bloomberg)
South Africa - Sheds jobs, denting economic recovery
South Africa’s unemployment rate, the highest of 62 countries tracked by Bloomberg, was little changed in the second quarter as the economy failed to create jobs, undermining the strength of the recovery. The jobless rate increased to 25.3% from 25.2% in the first quarter, statistics showed. The number of people with work fell by 61,000 to 12.7m. (Bloomberg)
20100728 1007 Malaysia Corporate News.
HeiTech Padu: Secures RM282m RTD project. Heitech Padu Bhd has secured a RM282m contract from the government to undertake an integrated solutions project for the Road Transport Department. The company said on Tuesday, July 27 the project will take 24 months to develop and will have a warranty period of 24 months after completion. (Source: Business Times)
IJM: The Light to contain world-class appeal. A performing arts centre to rival Australia's Sydney Opera House, waterfront retail promenade and an international standard marina are among the attractions property developer IJM Land Bhd will unveil when it launches the second phase of its flagship waterfront "The Light" development in Penang at the end of the year. The proposed iconic arts centre, known as "The Pearl" is expected to boast a seating capacity of 2,000 and is set to be sprawled over 0.8ha. (Source: Business Times)
IPO: Complaint derails Focus Point listing. Malaysia's largest professional eyecare chain, Focus Point Holdings Bhd, had to delay its listing at the eleventh hour after an anonymous complaint about its business. The board of directors believes that the allegations are adequately refuted and that the allegations were made with malicious intent to derail the company's listing plans and damage the group's business operations. (Source: Business Times)
Maybank Investment: Plans to enter Singapore, Indonesia. Maybank Investment Bank Bhd planned to expand its operations to Singapore and Indonesia by June next year, said Maybank CEO Tengku Datuk Zafrul Tengku Abdul Aziz. Maybank Investment hoped to offer services such as corporate finance, Islamic advisory, structured and treasury products in these markets. (Source: The Star)
O&G: Steady crude oil prices spur deepwater projects. Petronas Carigali Sdn Bhd's head of deepwater development Rosli Hamzah said that Transocean Ltd's drillship Deepwater Expedition would arrive in Malaysian waters in September, while the 2nd ship Frontier Phoenix was scheduled to be in by November. Rosli said that Malaysia needed 3 drillships between 2010 and 2015 as deepwater areas will make up for as much as 40% of the country?s oil output in 10 years. (Source: The Star)
PetDag: Expand retail segment, plans RM500m capex. Petronas Dagangan Bhd (PetDag), the domestic marketing arm of Petronas is planning to invest about RM500m in capex for FY ending March 31, 2011 towards expanding its retail segment. The retail and commercial segments contribute around 46% to 47% each to the group's revenue, with 5% coming from the liquefied petroleum gas (LPG). (Source: The Edge Financial Daily)
Kong to PKA: Pay up
Transport Minister Datuk Seri Kong Cho Ha yesterday directed the Port Klang Authority’s (PKA) board to release payment due to the bondholders of the Port Klang Free Zone (PKFZ) project setting aside the port authority’s earlier decision to hold back payment. “ We will pay according to what’s been decided much earlier, according to the schedule that’s been set,” he said after was asked to comment on report that PKA’s board has decided to withhold the final payment of RM222.58m to Free Zone Capital (FZCB) one of the four SPVs established by PKFZ turnkey contractor, Kuala Dimensi SB, for the project . (Financial Daily)
EON Cap to hold EGM on HLB takeover
The board of EON Capital, owner of Malaysia’s seventh largest bank, will ask shareholders to vote on Hong Leong Bank’s RM5.06bn (US$1.6bn) takeover offer on 19 Aug, according to a statement sent to Bursa Malaysia yesterday. The move defies EON Cap’s biggest investor which has threatened to seek RM1.11bn in damages if the deal goes through at the current price. Shareholders are divided over whether to accept an all-cash offer of RM7.30 a share from billionaire Tan Sri Quek Leng Chan’s Hong Leong Bank (HLB). (StarBiz)
M3nergy offer receives over 85% acceptance
Despite differing views on the takeover offer of M3nergy, an overwhelming majority, or over 85% of its shareholders, have accepted Adamus Avenue Sdn Bhd’s offer price of RM1.85 per share. A source close to the deal told Bernama that the offer price must have been deemed to be attractive, fair and reasonable, to compel these shareholders to make the acceptances. And it will be more than a week to go before the 3 Aug deadline for acceptances, he said. The source said this in response to a recent filing by M3nergy to Bursa Malaysia, which said that its board had viewed the offer to be unfair, unreasonable and uncompelling. (StarBiz)
BP head quits over Gulf disaster
BP's vilified chief executive Tony Hayward resigned yesterday as the energy giant announced that the devastating Gulf of Mexico oil disaster will cost USD32.2bn and caused a record quarterly loss. Hayward, whose PR gaffes handling the oil spill made him a target of US fury, will be succeeded by American executive Bob Dudley, who is currently in charge of Gulf clean-up operations. BP said it had made a record USD16.9bn loss in the second quarter and that it will sell USD30bn of assets over the next 18 months as it seeks to streamline operations and return to profitability. (BT)
IJM: The Light to contain world-class appeal. A performing arts centre to rival Australia's Sydney Opera House, waterfront retail promenade and an international standard marina are among the attractions property developer IJM Land Bhd will unveil when it launches the second phase of its flagship waterfront "The Light" development in Penang at the end of the year. The proposed iconic arts centre, known as "The Pearl" is expected to boast a seating capacity of 2,000 and is set to be sprawled over 0.8ha. (Source: Business Times)
IPO: Complaint derails Focus Point listing. Malaysia's largest professional eyecare chain, Focus Point Holdings Bhd, had to delay its listing at the eleventh hour after an anonymous complaint about its business. The board of directors believes that the allegations are adequately refuted and that the allegations were made with malicious intent to derail the company's listing plans and damage the group's business operations. (Source: Business Times)
Maybank Investment: Plans to enter Singapore, Indonesia. Maybank Investment Bank Bhd planned to expand its operations to Singapore and Indonesia by June next year, said Maybank CEO Tengku Datuk Zafrul Tengku Abdul Aziz. Maybank Investment hoped to offer services such as corporate finance, Islamic advisory, structured and treasury products in these markets. (Source: The Star)
O&G: Steady crude oil prices spur deepwater projects. Petronas Carigali Sdn Bhd's head of deepwater development Rosli Hamzah said that Transocean Ltd's drillship Deepwater Expedition would arrive in Malaysian waters in September, while the 2nd ship Frontier Phoenix was scheduled to be in by November. Rosli said that Malaysia needed 3 drillships between 2010 and 2015 as deepwater areas will make up for as much as 40% of the country?s oil output in 10 years. (Source: The Star)
PetDag: Expand retail segment, plans RM500m capex. Petronas Dagangan Bhd (PetDag), the domestic marketing arm of Petronas is planning to invest about RM500m in capex for FY ending March 31, 2011 towards expanding its retail segment. The retail and commercial segments contribute around 46% to 47% each to the group's revenue, with 5% coming from the liquefied petroleum gas (LPG). (Source: The Edge Financial Daily)
Kong to PKA: Pay up
Transport Minister Datuk Seri Kong Cho Ha yesterday directed the Port Klang Authority’s (PKA) board to release payment due to the bondholders of the Port Klang Free Zone (PKFZ) project setting aside the port authority’s earlier decision to hold back payment. “ We will pay according to what’s been decided much earlier, according to the schedule that’s been set,” he said after was asked to comment on report that PKA’s board has decided to withhold the final payment of RM222.58m to Free Zone Capital (FZCB) one of the four SPVs established by PKFZ turnkey contractor, Kuala Dimensi SB, for the project . (Financial Daily)
EON Cap to hold EGM on HLB takeover
The board of EON Capital, owner of Malaysia’s seventh largest bank, will ask shareholders to vote on Hong Leong Bank’s RM5.06bn (US$1.6bn) takeover offer on 19 Aug, according to a statement sent to Bursa Malaysia yesterday. The move defies EON Cap’s biggest investor which has threatened to seek RM1.11bn in damages if the deal goes through at the current price. Shareholders are divided over whether to accept an all-cash offer of RM7.30 a share from billionaire Tan Sri Quek Leng Chan’s Hong Leong Bank (HLB). (StarBiz)
M3nergy offer receives over 85% acceptance
Despite differing views on the takeover offer of M3nergy, an overwhelming majority, or over 85% of its shareholders, have accepted Adamus Avenue Sdn Bhd’s offer price of RM1.85 per share. A source close to the deal told Bernama that the offer price must have been deemed to be attractive, fair and reasonable, to compel these shareholders to make the acceptances. And it will be more than a week to go before the 3 Aug deadline for acceptances, he said. The source said this in response to a recent filing by M3nergy to Bursa Malaysia, which said that its board had viewed the offer to be unfair, unreasonable and uncompelling. (StarBiz)
BP head quits over Gulf disaster
BP's vilified chief executive Tony Hayward resigned yesterday as the energy giant announced that the devastating Gulf of Mexico oil disaster will cost USD32.2bn and caused a record quarterly loss. Hayward, whose PR gaffes handling the oil spill made him a target of US fury, will be succeeded by American executive Bob Dudley, who is currently in charge of Gulf clean-up operations. BP said it had made a record USD16.9bn loss in the second quarter and that it will sell USD30bn of assets over the next 18 months as it seeks to streamline operations and return to profitability. (BT)
20100728 0957 Global Market News.
Asian stocks, euro ease on profit-takingSINGAPORE, July 28 (Reuters) - The euro slipped from 11-week highs and Asian stocks marked time as a recent rally lost steam after a drop in U.S. consumer confidence, while the Australian dollar fell on a sharp slowdown in inflation.
"There will be a few bumps along the way, but the market still has upward momentum. Risk appetite is improving and the optimism is palpable," said Suh Dong-pil, a market analyst at Hana Daetoo Securities.
World stocks hit 2-1/2 mth peak; euro near high
LONDON, July 27 (Reuters) - World stocks hit a 2-1/2 month high while the euro held near a two-month peak versus the dollar as upbeat results from Swiss bank UBS added to a recent run of strong corporate earnings.
"Expectations are rising for earnings. Companies are guiding full-year forecasts up in spite of concerns about a loss of recovery momentum ... and that is helping to keep these markets reasonably firm," said Mike Lenhoff, chief strategist at Brewin Dolphin.
"There will be a few bumps along the way, but the market still has upward momentum. Risk appetite is improving and the optimism is palpable," said Suh Dong-pil, a market analyst at Hana Daetoo Securities.
World stocks hit 2-1/2 mth peak; euro near high
LONDON, July 27 (Reuters) - World stocks hit a 2-1/2 month high while the euro held near a two-month peak versus the dollar as upbeat results from Swiss bank UBS added to a recent run of strong corporate earnings.
"Expectations are rising for earnings. Companies are guiding full-year forecasts up in spite of concerns about a loss of recovery momentum ... and that is helping to keep these markets reasonably firm," said Mike Lenhoff, chief strategist at Brewin Dolphin.
20100728 0927 Soy Oil & Palm Oil Related News.
Soyoil futures ended lower, succumbing to pressure from adjustments in the meal/oil spread relationship and spillover weakness from crude oil futures. Crude oil influences soyoil due to its use in making renewable fuels. December soyoil settled 0.27 cents or 0.7% lower at 39.29 cents per pound. (Source: CME)
Brazil Soy Sales At 78% Of '09-10 Crop As Of July 23 - Celeres(Source: CME)
Brazilian farmers have sold 78% of the 2009-10 soybean crop as of July 23, local agricultural consultancy Celeres said in a weekly report.
Celeres said in the report issued Monday that Brazil, which is the world's No. 2 soy producer after the U.S., has shown a rise in soybean sales from 76% the week before. Sales are down from 83% at the same time a year ago.
Brazil is expected to have produced a record 68.5 million metric tons of soybeans for the 2009-10 crop season, compared with 57 million tons the previous crop year.
Many producers sold cautiously during the year and recently made new sales during periods of high volatility of the Chicago Board of Trade, Celeres said.
This also coincided with a period in which farmers plan to raise working capital for the upcoming 2010-11 crop season, the report said.
Brazil finished harvesting the 2009-10 soy crop in May.
Farmers in Mato Grosso, Brazil's No. 1 soy-producing state, have sold 94% of their soy as of Friday compared to 93% the week before and steady with 94% a year ago, Celeres said.
Mato Grosso's farmers were the first to start their harvest and took the opportunity to sell earlier than other states.
Parana, the No. 2 soy-producing state, sold 66% of its beans as of Friday compared to 64% the week before and 79% a year earlier, Celeres said.
Rio Grande do Sul, the country's No. 3 soy-producing state, sold 49% of its soy as of July 23 versus 46% the prior week and 57% a year earlier, Celeres said. Rio Grande do Sul is typically one of the last states to harvest and sell its beans.
Palm oil at 1-week low on markets, ringgit
KUALA LUMPUR, July 27 (Reuters) - Malaysian crude palm oil hit a one-week low on Tuesday as investors booked profits on last week's rally, and as soyoil weakened.
"The market is settling into a technical correction after last week's rally and weaker markets generally," said a trader with a foreign commodities brokerage. "The ringgit is also keeping refiners away for the moment."
Analyst cuts Ukraine 2010 rapeseed crop forecast
KIEV, July 27 (Reuters) - UkrAgroConsult agriculture consultancy on Tuesday revised down Ukraine's 2010 rapeseed crop forecast to 1.5 million tonnes from the previous estimate of 1.6 million due to a fall in harvesting area.
Severe frosts followed by a record summer heat have killed about 40 percent of rape crops sown to the 2010 harvest.
Brazil 09/10 soy sales reach 78 pct crop - Celeres
SAO PAULO, July 26 (Reuters) - Brazilian soybean producers have sold 78 percent of the record 68.5-million-tonne 2009/10 crop by July 23, up from 76 percent the week prior, analysts Celeres said on Monday.
Sales of the new crop were still behind the 83 percent sold of the previous crop last year at this time, Celeres said.
Soyoil widens premium to palm as buyers chase cargoes
KUALA LUMPUR, July 27 (Reuters) - Soyoil's premium over Asian palm oil is expected to rise in the second half of 2010 as food and fuel demand run down supplies and fears grow that a prolonged spell of hot weather may hurt the U.S. soy crop.
Strong buying from Asian giants China and India for the festival season starting in August, and aggressive domestic biofuel mandates in the Americas, are swallowing up bumper soy crops in Argentina and Brazil faster than usual.
Brazil Soy Sales At 78% Of '09-10 Crop As Of July 23 - Celeres(Source: CME)
Brazilian farmers have sold 78% of the 2009-10 soybean crop as of July 23, local agricultural consultancy Celeres said in a weekly report.
Celeres said in the report issued Monday that Brazil, which is the world's No. 2 soy producer after the U.S., has shown a rise in soybean sales from 76% the week before. Sales are down from 83% at the same time a year ago.
Brazil is expected to have produced a record 68.5 million metric tons of soybeans for the 2009-10 crop season, compared with 57 million tons the previous crop year.
Many producers sold cautiously during the year and recently made new sales during periods of high volatility of the Chicago Board of Trade, Celeres said.
This also coincided with a period in which farmers plan to raise working capital for the upcoming 2010-11 crop season, the report said.
Brazil finished harvesting the 2009-10 soy crop in May.
Farmers in Mato Grosso, Brazil's No. 1 soy-producing state, have sold 94% of their soy as of Friday compared to 93% the week before and steady with 94% a year ago, Celeres said.
Mato Grosso's farmers were the first to start their harvest and took the opportunity to sell earlier than other states.
Parana, the No. 2 soy-producing state, sold 66% of its beans as of Friday compared to 64% the week before and 79% a year earlier, Celeres said.
Rio Grande do Sul, the country's No. 3 soy-producing state, sold 49% of its soy as of July 23 versus 46% the prior week and 57% a year earlier, Celeres said. Rio Grande do Sul is typically one of the last states to harvest and sell its beans.
Palm oil at 1-week low on markets, ringgit
KUALA LUMPUR, July 27 (Reuters) - Malaysian crude palm oil hit a one-week low on Tuesday as investors booked profits on last week's rally, and as soyoil weakened.
"The market is settling into a technical correction after last week's rally and weaker markets generally," said a trader with a foreign commodities brokerage. "The ringgit is also keeping refiners away for the moment."
Analyst cuts Ukraine 2010 rapeseed crop forecast
KIEV, July 27 (Reuters) - UkrAgroConsult agriculture consultancy on Tuesday revised down Ukraine's 2010 rapeseed crop forecast to 1.5 million tonnes from the previous estimate of 1.6 million due to a fall in harvesting area.
Severe frosts followed by a record summer heat have killed about 40 percent of rape crops sown to the 2010 harvest.
Brazil 09/10 soy sales reach 78 pct crop - Celeres
SAO PAULO, July 26 (Reuters) - Brazilian soybean producers have sold 78 percent of the record 68.5-million-tonne 2009/10 crop by July 23, up from 76 percent the week prior, analysts Celeres said on Monday.
Sales of the new crop were still behind the 83 percent sold of the previous crop last year at this time, Celeres said.
Soyoil widens premium to palm as buyers chase cargoes
KUALA LUMPUR, July 27 (Reuters) - Soyoil's premium over Asian palm oil is expected to rise in the second half of 2010 as food and fuel demand run down supplies and fears grow that a prolonged spell of hot weather may hurt the U.S. soy crop.
Strong buying from Asian giants China and India for the festival season starting in August, and aggressive domestic biofuel mandates in the Americas, are swallowing up bumper soy crops in Argentina and Brazil faster than usual.
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