20101215 1825 FCPO EOD Daily Chart Study.

FCPO closed : 3669, changed : -11 points, volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : weakening, buyer taking profit.
Support : 3650, 3620, 3550 level.
Resistance : 3700, 3720, 3750 level.
Comment :
Profit taking FCPO continue to retrace lower with slower volume changed hand after hitting 33 month high yesterday as today export data released continue to decline lower while soy oil and crude oil futures price also eased lower.
Daily chart formed a classic down doji bar candle after market tested resistance and support level and recovered to closed near opening price with a correction range bound upside biased market reading development.
When to buy : buy at support and weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20101215 1757 FKLI EOD Daily Chart Study.

FKLI closed : 1504.5, changed : -6 points,  volume : higher.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : weakening, buyer reducing position.
Support : 1500, 1485, 1470 level.
Resistance: 1530, 1550, 1580 level.
Comment :
FKLI continue to do downward correction closed recorded loss for the 4th day with improve volume transacted doing 4 points discount to cash market as most major Asia exchange closed negatively and lack of fresh lead triggered participant to lock in profit and stay sideline .
Daily chart formed a  down bar candle with lower shadow after market opened gap up and traded downward tested support level near middle Bollinger band support level and rebounded to closed off the low of the day with an unchanged reading of a correction range bound upside biased market development testing supports and resistant 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.

20101215 0933 Global Economics News.

India: Inflation rate cools to cools to lowest level in 2010
India’s inflation slowed to an 11- month low, giving the central bank scope this month to pause Asia’s fastest round of interest-rate increases. The wholesale-price index rose 7.48% in November y-o-y after an 8.58% jump in October. Price pressures may strengthen as industrial production grew at the fastest pace in three months in October, signaling consumer demand remains strong even after six rate increases in 2010. The Reserve Bank of India aims to slow inflation to between 4% and 4.5%. (Bloomberg)

UK: Inflation rate unexpectedly increases
UK inflation rate unexpectedly accelerated to a six-month high in November, adding to the case for policy makers to rein in cost pressures. Consumer prices rose 3.3% y-o-y after a 3.2% increase in October, the highest since May. Core inflation remained at 2.7%. Food prices jumped 1.6% m-o-m. M-o-m, consumer prices rose 0.4%, exceeding forecast of a 0.4% increase. Clothes prices jumped 2% m-o-m and furniture prices rose 1.6%. Inflation has been above the government’s 3% limit for nine months and a sales-tax increase in January may add to prices in 2011. (Bloomberg)

EU: Industrial production rises on capital goods
European industrial production increased in October led by orders for capital goods. Output in the euro region rose 0.7% m-o-m, when it fell a revised 0.7%. Production increased 6.9% y-o-y, after gaining 5.4% in September. Production of capital goods jumped 1.8% m-o-m, output of intermediate goods rose 0.2% and energy production increased 0.4%. Output of durable consumer goods slipped 0.1%. (Bloomberg)

EU: German investor confidence increases for second month
German investor confidence improved for a second month in December as the recovery in Europe’s largest economy showed signs of broadening. The index of investor and analyst expectations, which aims to predict developments six months ahead, increased to 4.3 from 1.8 in November, beating estimates of a gain to 3.9. Germany’s economy has fueled the euro region’s expansion this year as companies stepped up hiring and output to meet export demand, encouraging consumer spending. (Bloomberg) US: Inventories increase 0.7%, sales up 1.4% Inventories in the US rose less than forecast in October, restrained by the biggest drop in retail stockpiles in more than a year as merchants had trouble keeping up with surging demand. The 0.7% increase in inventories compared with a 1.4% jump in sales in October that was the biggest gain in seven months. Companies had enough goods on hand to supply 1.27 months’ worth of sales at October’s pace. (Bloomberg)

US: Producer prices increased 0.8% in November, small business optimism climbs
Wholesale costs in the US rose in November by the most in eight months, led by higher prices for gasoline, heating oil and fruit. The producer price index increased 0.8% m-o-m. Core prices rose 1.2% in November y-o-y The cost of food increased 1% and energy prices rose 2.1%. Prices of crude goods increased 0.6% while expenses for intermediate goods rose 1.1% m-o-m. (Bloomberg)

US: Federal Reserve retains USD600bn bond-purchase program
Federal Reserve officials kept their plan to expand record monetary stimulus, saying the economic expansion hasn’t been strong enough to reduce joblessness. The central bank commented that the USD600bn of Treasury purchases are aimed at boosting a recovery that has been “disappointingly slow” and repeated its pledge to leave the benchmark interest rate low for an “extended period.” Fed officials left their target for the federal funds rate in a range of zero to 0.25%, marking two years of the policy .(Bloomberg)

20101215 0932 Malaysia Corporate News.

KNM forms JV with Sabah state unit
Process equipment maker KNM Group has formed a strategic collaboration with a Sabah state-owned unit to offer support services to oil and gas majors operating here. The company had signed a joint venture (JV) agreement with Petrosab Logistick SB on 13 Dec to establish a JV company, KNM Petrosab SB. KNM and Petrosab Logistik will own 51% and 49% respectively in the new entity. The investments are generally aimed at tapping into various existing for oil, gas and petrochemical projects in Sabah, which is in line with KNM’s overall objective of expanding and growing the businesses of KNM and its group of companies throughout Malaysia. Under its deal with Petrosav Logistik, KNM would spearhead fund raising to finance future projects via issuance of new shares and bonds, apart from financial derivatives and convertible instruments. (FinancialDaily)

KLK to fork out RM210m for Yule Catto’s rights issue
Kuala Lumpur Kepong (KLK) and its wholly owned subsidiary, KL-Kepong International Ltd (KLKI), have proposed to subscribe to their rights issue entitlement in Yule Catto & Co Plc for £42.4m, or RM209.8m. KLK and KLKI currently hold a total of 27.41m shares in Yule Catto, or 18.82% of its issued share capital. KLK intends to assign to KLKI all of its rights entitlement arising from its existing Yule Catto shareholding, and KLKI will thus subscribe in full for both its and KLK’s entire rights entitlement arising from the rights issue. Upon subscription of the rights issue, the KLK Group will acquire 36.55m new Yule Catto ordinary shares representing approximately 18.82% of the new ordinary shares to be issued under the rights issue. (FinancialDaily))

Hiap Teck to raise funds for furnace
Hiap Teck Venture, a maker of steel pipes, plans to raise about RM800m to put up a blast furnace in Terengganu. "The blast furnace is estimated to cost around RM750m to RM850m. We'll need to raise the funds by mid-2011 and it'll be a combination of debt and equity," Hiap Teck executive director Low Choong Sing said. The fund-raising plan for a steel slab plant stems from Hiap Teck's 55% stake purchase in Eastern Steel SB, which owns 240ha of land in Teluk Kalung, Kemaman, Terengganu. (BT)

YTL denies given spectrum for LTE
Tan Sri Francis Yeoh says the YTL group had never received any spectrum from the Malaysian Communication and Multimedia Commission (MCMC) for Long Term Evolution (LTE), the latest standard in the mobile network technology. Yeoh described recent talk as baseless and said he was saddened and disappointed that many quarters had been twisting facts about his recently introduced YES 4G mobile and Internet services as well as the Sezmi Hybrid TV. "We have never received any spectrum from MCMC for LTE; what we have done is sent our proposal over to MCMC for it to consider our roll-out of the Sezmi Hybrid TV." he said. (BT)

YTL Power buys stake in Jordan oil shale project
YTL Power has acquired a 30% stake in Estonian state oil company Eesti Energia's oil shale project in Jordan, marking its foray into the upstream oil business, the power producer said yesterday. YTL Power is joining power and utility companies from India, South Korea and Japan in investing in overseas fuel assets to manage the escalating costs of fuel and gas. Under the agreement, Eesti Energia and its Jordanian partner Near East Investment, along with YTL Power, will develop an oil plant with an output of about 38,000 barrels per day (bpd) and a 900 megawatt oil-shale fired power plant. "We are going into Jordan on a holistic basis, which means we are going to be involved in every part of the project," YTL Power's director of financial analysis Lucius Chong said.(BT)

DRB-HICOM eyes firm deal with Russian truck maker
DRB-HICOM is seeking to strike a firm deal with one of Europe's largest truck makers to assemble and distribute its heavy-duty trucks in Malaysia. The group yesterday sealed a memorandum of understanding (MOU) with Russia's Kamaz INC for the purpose. If it materialises, DRB-HICOM will have the rights to also distribute Kamaz's right-hand-drive trucks to the Asean region. The MOU is the result of an earlier discussion between the two groups on the possibility of working together to produce and manufacture Kamaz trucks in Malaysia for the local market as well as in Asean," group managing director Datuk Seri Mohd Khamil Jamil told the media yesterday. The MOU, he added, will pave the way for a feasibility study as well as detail costing studies in respect of setting up the facilities in Malaysia. (BT)

Time dotCom wins RM139m DiGi deal
TIME dotCom has won a 10-year contract worth RM139m from DiGi.Com to provide high-speed backhaul capacity and maintain the links between its aggregation wireless towers and its mobile switching centres. This is the first peninsula-wide deployment of a full optical switched fibre network to support mobile backhaul traffic. (BT)

TM, Maxis ink 10-year deal
Telekom Malaysia (TM) and Maxis Broadband SB have signed a 10-year agreement for TM to provide high speed access connectivity, via its high speed broadband access (HSBB Access) service to Maxis. Both parties signed the agreement yesterday that would enable Maxis to offer bundled services, including Internet Protocol (IP) based offerings, to 700,000 homes at present and 1.3m households by the end of 2012. (Starbiz)

Sunway City, Sunway Holdings boards accept merger proposal
Sunway City and Sunway Holdings, two Malaysian property developers, said their respective boards accepted a merger proposal by Tan Sri Dr Jeffrey Cheah, chairman of both companies. (MalaysianReserve)

Maybank to issue 244.257m new shares under dividend plan
Malayan Banking (Maybank) is required to issue 244.257m new shares pursuant to the Dividend Reinvestment Plan applied to the final dividend of the bank for financial year ended 30 June 2010. The new shares represented approximately 88.59% of the 275,728,660m new Maybank shares had all the entitled shareholders elected to reinvest their respective electable portions in new Maybank shares. (MalaysianReserve) 

20101215 0904 Global Market News.

Oil prices ease after U.S. Fed dampens fast recovery hopes
SINGAPORE, Dec 15 (Reuters) - Oil prices eased after the U.S. Federal Reserve dampened rising  expectations for a faster economic recovery, seen as critical  to reigniting oil demand in the world's biggest energy user.
"Some of the U.S. macroeconomic data has been more  positive in the last month or two and some corners of the  market had been hoping the Fed would have been more upbeat,"  said Ben Westmore, a commodities analyst at National Australia  Bank. 

Oil platform fire to have little impact on Malaysia exports-sources
SINGAPORE, Dec 15 (Reuters) - A fire at an oil platform  operated by Petronas Carigali, a unit of Malaysia's state oil  firm Petronas , is expected to have little impact on  the country's exports of Tapis crude, trade sources said on  Wednesday.
The Bekok C platform, located 200 kilometres off the  eastern shore of peninsular Malaysia, is one of several fields  that produces the country's flagship Tapis crude, they said. 

Soybeans rise on Argentina crop outlook, wheat flat
SINGAPORE, Dec 15 (Reuters) - U.S. soybean futures rose as dry weather in major producer Argentina raised  concern about its crop, while wheat prices steadied after  sharp losses in the previous session.
"Higher exports out of the U.S. and some lingering concern  about the South American crop are enough to keep the soybean  market well supported," said Brett Cooper, senior manager for  markets at FCStone Australia.

Gold moves little ahead of holidays, dollar weighs
SINGAPORE, Dec 15 (Reuters) - Spot gold was little changed  as the market entered consolidation mode ahead of  the year-end, but a rebound in dollar put pressure on the  bullion.
"It's really nothing new. Gold recently hit a record high,  and has been under some profit-taking pressure. It would need  fresh impetus to go higher, but there isn't any around," said  Hou Xinqiang, an analyst at Jinrui Futures in China. 

GLOBAL MARKETS-Treasury yields climb, dollar benefits
SINGAPORE, Dec 15 (Reuters) - Yields on U.S. Treasuries  climbed to seven-month highs in Asia on Wednesday and the  dollar rebounded as upbeat retail sales data added to evidence  that America's economy is gathering steam.
"The U.S. Fed's statement strengthened the likelihood the  U.S. would continue its quantitative measure. Combined with a  good set of retail data, sentiment is still good," said Hong  Soon-pyo, a market analyst at Daishin Securities  

OIL: Oil slips after U.S. Fed says recovery still slow
PERTH, Dec 15 (Reuters) - Oil prices edged lower on  Wednesday on a stronger dollar and the U.S. Federal Reserve's  comments that recovery in the world's largest economy remained  slow.
The U.S. Federal Reserve on Tuesday offered only a cautious nod to the economy's improving prospects as it put a spotlight on lofty unemployment and reaffirmed its commitment to buy $600 billion in bonds.

COMMODITY MARKETS: Wheat slides, oil, gas lower as dollar firms
CHICAGO, Dec 14 (Reuters) - Wheat posted its biggest drop in a month on profit-taking while oil and gas edged lower in a choppy, low-volume day for most commodities as the dollar rallied on comments from the U.S. Federal Reserve.
"I think ultimately it's dollar positive given that there were some fears they could announced further expansion of quantitative easing," said Greg Salvaggio, vice president of trading at Tempus Consulting in Washington.
    
GLOBAL MARKETS: U.S. stocks, bond yields rise on recovery outlook
NEW YORK, Dec 14 (Reuters) - U.S. stocks eked out gains and U.S. Treasuries prices slumped on Tuesday after the U.S. Federal Reserve showed no signs of curtailing its economic stimulus measures and U.S. retail sales data signaled an accelerating economic recovery.
"The economic recovery is continuing, though at a rate that has been insufficient to bring down unemployment," the Fed said in a statement at the conclusion of a one-day meeting. 

FAO Ups World 2010 Cereals Estimate As Food Prices Near Highs (Source: CME)
World food prices are within reach of their June 2008 highs despite improving prospects for global cereal production this year, the United Nation's Food and Agriculture Organization said. Total cereal production is expected to hit 2.229 billion metric tons in 2010, the FAO said in its latest food security report, increasing its November estimate of 2.216 billion tons. Yet despite the improving outlook for grain production, food prices remain high. The FAO's Food Price Index averaged 205 in November, up seven points from October and only seven below its record high two years ago, when the rising cost of food caused widespread riots in developing countries. The rise in the index, which measures the monthly change in international prices of a basket of commodities, was driven largely by rising "sugar and oils" prices, the FAO said.
Global cereals markets are also expected to remain tight as consumption outpaces demand, eating into world inventories, the Rome-based FAO said. "World supply and demand balance for cereals could still tighten considerably with total utilization exceeding world production; thus necessitating a 6% decline in ending stocks," it said.

Corn, wheat ease; weather worry caps losses
SINGAPORE, Dec 14 (Reuters) - U.S. corn and wheat futures slipped on Tuesday as investors cashed in recent gains  although a bleak global weather outlook which may tighten supplies has capped losses.
"Weather is still a major concern. If those fundamentals  remain into the new year and, combined with fresh money  flowing into commodity markets, then clearly that'll be enough  to push this market higher."  

PRECIOUS-Dollar dip lifts gold; focus on Fed later
LONDON, Dec 14 (Reuters) - Gold rallied for a second day on Tuesday to reach one-week highs above $1,400 an ounce, taking advantage of a slide in the dollar ahead of a U.S. policy meeting.
The Federal Reserve gathers for a one-day rate-setting meeting on Tuesday at which policy makers are expected to assess the central bank's $600 billion bond-buying plan but are not forecast to signal any shift or change in the programme.

FOREX-Euro hits 3-week high vs dlr, Aussie at parity
LONDON, Dec 14 (Reuters) - The euro hit three-week highs versus the dollar and yen in thin trade on Tuesday, as investors took the view that a recent rise in front-end U.S. yields had gone too far, prompting a squeeze of euro shorts.
The Australian dollar jumped to a one-month high above parity with the U.S. dollar, helped by a rise in prices of gold and other commodities such as copper and by broad dollar weakness.

20101215 0903 Soy Oil & Palm Oil Related News.

ITS CPO export down 24% to 568,127 tonnes for the period of 1~15 Dec 2010.
SGS CPO export down 29.5% to 548,372 tonnes for the period of 1~15 Dec 2010.

Soy product futures ended lower in unison with soybeans. Soyoil and soymeal slipped on profit taking of earlier gains, but soyoil lost product value to soymeal, as traders unwound soyoil positions after the market rallied 13% since Nov 17, analysts said. Soymeal futures were up 2% in the same time frame. CBOT Jan soyoil ended 0.36c, or 0.6%, lower at 55.09 cents per pound, and Jan soymeal traded $0.60, or 0.2%, lower at $342.20 a short ton. (Source: CME)

Media Rebuts China Assurance On Edible Oil Supply (Source: CME)
Insistence by China's National Development and Reform Commission that the country has sufficient edible oil stocks drew an unusual rebuttal from a newspaper, aimed at defending a recent report the paper carried on production stoppages of cooking oil. The statement by China Business News was a rare, direct challenge to the official line of the country's top economic policy planning agency, which is sensitive to rising food prices that have driven inflation to three-year highs. The newspaper, owned by the Shanghai Media Group, in a statement on its website Tuesday saying that its article was "independently sourced with documents" after the NDRC said Monday that the newspaper and other local media outlets had misreported on production halts at some edible oil plants. The NDRC said Monday that supplies of edible oils are "absolutely guaranteed." The statement, issued by its editorial department, added there were recordings to back up critical elements of its report. "The contents of our paper's report had data, documents and recordings as proof," it said. "As a responsible paper, we have issues with what the commission is saying." China Business News was one among five media outlets named in the commission's statement about edible oil production stoppages. The others were China Times, Sina, Sohu.com and Chongqing Evening News. In its statement Monday, the NDRC had focused on a recent China Times report that there were signs that edible oil producers would suspend large-scale production due to price-cap-related losses.

Palm eases after hitting 33-mth highs
KUALA LUMPUR, Dec 14 (Reuters) - Malaysian palm oil futures hit more than two-and-a-half-year highs on Tuesday amid firmer soyoil in China and worries over weaker production in the monsoon season, before paring some gains to settle 1 percent lower. "The market is down purely on profit-taking in the  afternoon session after it rallied since early this month,"  said a trader in Kuala Lumpur.

Rains soak Brazil's southern soy belt - Somar
SAO PAULO, Dec 13 (Reuters) - A cold front dumped heavy rains on Brazil's southern soy producing states over the weekend, easing concerns of dry weather of late in No. 3 soy producer state Rio Grande do Sul, forecaster Somar said Monday. The La Nina weather anomaly tends to reduce rainfall over Brazil's grain belt. Spring showers were about two months late to arrive in the soy-rich center-west and Rio Grande do Sul suffered from dry weather in November.

China edible oil supply guaranteed ample - NDRC
BEIJING, Dec 13 (Reuters) - Domestic supplies of edible oils are guaranteed to be ample, said the country's top economic planner on Monday, refuting a media report of possible shortages during the Spring Festival.
"With a surge in soybean imports this year, state oilseed and oil stocks are ample, while enterprise stocks are plentiful and production levels are normal," said the National Development and Reform Commission in a statement published on its website. 

World stocks rise, dollar falls before Fed
LONDON, Dec 14 (Reuters) - The dollar fell to a three-week low against the euro and Treasuries steadied ahead of a Federal Reserve policy meeting on Tuesday, while stocks held near a two-year peak, supported by optimism over Chinese growth. "Markets have been breaking out into a higher range and now consolidating," Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin, said. "Investors are awaiting for the Fed for clues about the economy."

20101214 1822 FCPO EOD Daily Chart Study.

FCPO closed : 3680, changed : -42 points, volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : turned downward again, buyer taking profit.
Support : 3650, 3620, 3550 level.
Resistant : 3700, 3720, 3750 level.
Comment :
Hit 33 month high FCPO closed recorded losses with decreasing volume changed hand ahead of tomorrow export data release in tandem with soy oil futures prices that correcting downward after hitting new high.
Daily chart formed a down doji bar candle after market opened and tested new high triggered buyer to start their profit taking program pressed price down all the way to closed near the low of the day with the reading suggesting a correction range bound upside biased market development.
When to buy : buy at support and weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20101214 1741 FKLI EOD Daily Chart Study.

FKLI closed : 1510.5, changed : -1 point,  volume : lower.
Bollinger band reading : correction range bound upside biased.
MACD Histrogram : weakening, buyer taking profit.
Support : 1500, 1485, 1470 level.
Resistant : 1530, 1550, 1580 level.
Comment :
Quiet FKLI ended the day recorded 2 ticks lower with relatively low volume transacted on par with cash market index as regional market traded mixed but ended slightly positive.
Daily chart formed a small 6.5 points range body down bar candle still doing correction with the reading suggesting a correction range bound upside biased market development testing supports and resistant 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.

20101214 1013 Global Economics News.

China: May allow Yuan options trading to help banks and companies protect their earnings from swings in foreign exchange rates, according to four people with knowledge of the plan. The State Administration of Foreign Exchange, the nation's currency regulator, has asked for some banks' opinions on the issue, according to the people, who asked not to be identified because the plan hasn't been announced. Trading may start in two months, two of the people said. Options give the buyer the right, not the obligation, to buy or sell the currency at a specific price on a specific date. (Source: Bloomberg)

China: Reserve ratio hike extended for three months
A selective increase in required reserves for Chinese banks that was due to expire this week will be extended for another three months. The move affects six of the country’s biggest lenders. With the extension of the selective process, the required reserve ratio will stand at a record high of 19% for the country’s biggest banks. The decision to extend the selective reserve requirement increase will lock up about RMB180bn in deposits that the banks would otherwise have had available to lend. (StarBiz)

China: Pledges to tackle inflation, growth model
China’s leaders pledged to accelerate a shift in the nation’s growth model in 2011 and also focus on stabilizing prices after an annual meeting in Beijing to set economic policy guidelines. The state-run Xinhua News Agency reported on the outcome of the so-called Central Economic Work Conference, attended by President Hu Jintao and Premier Wen Jiabao. Its initial accounts didn’t give any specific targets for growth, inflation or lending. The government reiterated its intention to keep the currency stable. (Bloomberg)

China: Increases banks’ reserve ratios to cool prices
China ordered lenders to park more money with the central bank for the third time in five weeks to counter the threat from inflation. Reserve requirements will increase 50 basis points starting 20 Dec, the People’s Bank of China said. (Bloomberg)

US: Budget deficit widens as spending increases
The US government posted a wider budget deficit in November as spending swelled compared with the same time last year when a shift in the timing of payments for programs like Medicare and Social Security damped outlays. The deficit was USD150.4bn last month, exceeding the median estimate of economists surveyed, compared with USD120.3bn in November 2009, according to the Treasury Department’s budget statement released in Washington. (Bloomberg)

US: Confidence rises to a six-month high
Confidence among US consumers increased in December to a six-month high, coinciding with stronger holiday sales that show the economy is gathering speed. The Thomson Reuters/University of Michigan preliminary index of consumer sentiment rose to 74.2 from 71.6 at the end of November. A Commerce Department report showed the US trade deficit shrank more than the forecast in October to USD38.7bn as growing economies overseas propelled exports to a two-year high. (Bloomberg)

US: Retail sales probably climbed in November
Retail sales probably climbed in November for a fifth consecutive month as Americans began their holiday shopping, showing consumers are playing a bigger role in the US recovery, economists said before a report this week. The projected 0.6% gain would follow a 1.2% October increase in purchases, according to the median of 62 estimates in a survey ahead of Commerce Department figures on 14 Dec. (Bloomberg)

E.U: ECB steps up bond purchases to fight market tensions. The Frankfurt-based ECB said it completed EUR 2.667b (USD 3.56b) of purchases after settling EUR 1.965b the previous week. That's the most in 23 weeks. (Source: Bloomberg)

U.K: Retailers see Christmas at least as good as 2009, BRC says. Almost two-thirds of U.K retailers predict Christmas sales will be the same or better than last year as stores step up discounts, the British Retail Consortium said. Thirty-five percent of retailers surveyed said sales will be better than last year, and 29% predicted they will be the same, while 36% expected sales to decrease, the London-based group said in an emailed statement. (Source: Bloomberg)

20101214 1012 Malaysia Corporate News.

Naza brothers exit Kumpulan Jetson
The Naza brothers Sheikh Mohd Nasarudin SM Nasimuddin and Sheikh Mohd Faliq SM Nasimuddin have resigned as directors of Kumpulan Jetson. The group told Bursa Malaysia yesterday that the resignations of Nasarudin, 27, and Faliq, 25, came into effect the same day. The brothers were deemed interested by virtue of their interest in Superior Pavillion, which owns 13.12 million Jetson shares. Jetson also announced yesterday that the brothers had disposed of 4.37 million Jetson shares, or 7.22% stake, for RM1.05 each on 8 Dec. They were believed to initially have big plans for the company but lost interest after disagreements with other shareholders, stemming from unsettled financial issues within Jetson. (StarBiz)

Johor Corp confident of clearing debt by 2012
Johor Corp Bhd’s newly-appointed CEO Kamaruzzaman Abu Kassim says he is confident that the group’s debts will be cleared by 2012 based on its strengths, particularly its existing assets such as landed properties and bonds. JCorp is confident of restructuring its RM3.6bn debt by the first quarter of 2012. Kamaruzzaman Abu Kassim said the company has appointed Maybank Investment Bank Bhd and CIMB Investment Bank Bhd as advisers in a debt-restructuring scheme which started four months ago. (Malaysian Reserve)

TSM Global plans RM30mcapex for expansion
TSM Global plans to allocate RM30m in FY12 to acquire machinery and expand its capacity after securing contracts to supply auto-parts for the localized Toyota Camry that is slated for production in 2012. (FinancialDaily) 

Petronas denies report on RM8bn bid for UK firm
Petroliam Nasional Bhd (Petronas) said it has not put in a GBP1.71bn (RM8.49bn) cash bid to buy Heritage Oil Plc, an independent upstream exploration and production company listed on the London Stock Exchange (LSE). Petronas has never made a cash bid for Heritage Oil based in the United Kingdom, it said in a statement issued to StarBiz yesterday, following a foreign news report that Petronas would look into buying Heritage Oil. UK's Daily Mail reported on Thursday that Petronas would soon put in a cash bid of GBP1.71bn to buy Heritage Oil, which would give it exposure to relatively low-risk exploration fields in Iraqi Kurdistan and Malta in the near term. Any cash offer for Heritage would have to be agreed by chief executive Tony Buckingham, who sits on 29.7% of the (company's) equity, the report said. The Daily Mail said Buckingham had pocketed 84.5m in August after announcing a 1-a-share special dividend with the firm's 50% stake sale in a series of oil exploration assets in Uganda and would reap a further 51mil-plus should Petronas make a bid to buy Heritage Oil. (StarBiz)

Marine construction company Benalec set for early 2011 IPO
Benalec Holdings Bhd, the country’s second largest marine construction firm by market share, is set to list on the Main Market in the first quarter of next year. Having just received in the first week of December approval for the listing on the local bourse, the company expects to raise some RM100m from the IPO, said the group managing director Vincent Leaw Seng Hai. According to the MD, the proceeds raised are intended for the use of working capital. (Financial Daily)

PHB secures anchor tenants for Nu Sentral
Pelaburan Hartanah Bhd (PHB) has secured two anchor tenants, Golden Screen Cinema (GSC) and Parkson, for its seven-storey retail development called Nu Sentral in Kuala Lumpur Sentral. Nu Sentral is part of a bigger 2.4ha integrated commercial development called Lot G, being jointly developed by Malaysian Resources Corp Bhd and PHB. "Both Parkson and GSC take up about 25% of the 460,000 sq ft net lettable area in Nu Sentral," PHB managing director and chief executive officer Kamalul Arifin Othman told Business Times. The development will also have a 27-storey office building with a net lettable area of 450,000 sq ft. Lot G, with gross development value of RM1.4bn, is slotted for completion in 2012. It is set to be one of the developments PHB plans to inject into its recently-launched Amanah Hartanah Bumiputera unit trust scheme. (BT)

US firm to build RM1bn solar cell plant in Perak
US-based Twin Creeks Technologies Inc (TCTI) will invest about RM1bn to build a plant that will produce highpower solar cells and panels at Kanthan Industrial Area here. The plant will be run by Twin Creeks Malaysia SB, a joint venture between TCTI, Perak State Development Corp and a state government subsidiary, The Red Solar (M) SB. Phase one of the plant would begin with a production capacity of 100 MW in 2012, which would be raised to 500 MW in 2014, The Red Solar said in a statement yesterday. Twin Creeks Malaysia also plans to continue with the second phase construction of the plant in 2015 on a 15ha stretching to Perak Hi-Tech Park. (StarBiz)

Ramunia unit slapped with RM16m suit
Ramunia Holdings Bhd’s wholly owned unit, Ramunia Fabricators SB, has been slapped with a RM15.9m suit by Ulti Resources SB for unlawful possession of land, according to a filing to the exchange last Friday. The plaintiff is seeking the amount and claims that Ramunia Fabricator had unlawfully entered and took possession of the lands in Kota Tinggi, Johor, in July 2008. (Malaysian Reserve) 

O&G: M'sia and Brunei ink billion-ringgit oil and gas exploration pact. Malaysia has sealed a 40-year joint oil and gas exploration deal with Brunei which is expected to generate billions in revenue for both countries. The deal involves two deep water blocks - CA1 and CA2 - located within the two countries' commercial arrangement area along the Brunei-Sarawak maritime border near the Limbang division. Petronas will also be looking into possible joint ventures with Brunei National Petroleum Company Sdn Bhd (Petroleum Brunei) to explore oil and gas in a third country and development of downstream industries. (Source: The Star)

CIMB: Unit eyes USD100m in sales from Dublin funds. CIMB-Principal Islamic Asset Management Sdn Bhd(CPIAM) is targeting about USD100m in sales for its Dublin domiciled syariah funds by the end of next year. CIMB intends to launch three funds under the UCITS III structure, all of which can be freely marketed across Europe. (Source: The Star)

Proton: To spend GBP480m on Lotus. Proton Holdings announced that the total forecast capital expenditure for Group Lotus plc's business turnaround plan is about GBP480m (RM2.37b) over a five-year period. The funds will obtained from internally generated funds and externally secured funding during the turnaround period. (Source: The Edge Financial Daily)

WCT: Eyes more jobs in Qatar. WCT sees opportunities in Qatar as more infrastructure projects are expected to be implemented in preparation for 2022's FIFA World Cup. Bloomberg has reported that Qatar would spend USD57b (RM178.4b) on infrastructure developments related to the World Cup over the next decade. (Source: The Edge Financial Daily)

KPJ: Enhances medical business with takeover. KPJ Healthcare Bhd has acquired the 28-year-old Sabah Medical Centre (SMC). SMC would be KPJ's second venture in Sabah after the company took over the Damai Medical Centre five years ago. (Source: The Star)

KYM: Secures jobs from Vale. KYM Holdings Bhd has been awarded a contract valued at RM0.6m by Vale International SA for the provision of consultancy services relating to Vale's land acquisition in Teluk Rubiah, Perak. (Source: The Star)

Conglo: JCorp is not selling assets to repay RM3.6b debt. Johor Corp (JCorp) will not be selling any of its assets to repay its RM3.6b bonds due on July 31, 2012. JCorp is planning to refinance the debt instead. CIMB Bank and Maybank Investment Bhd have been appointed as the financial advisor. (Source: The Star)

Gaming: Olympia said to be keen on Pan Malaysian Pools. Olympia Industries Bhd has expressed an interest to acquire Pan Malaysian Pools Sdn Bhd from Tanjong plc. However, no formal offer has been made yet. (Source: The Star)     

20101214 0938 Global Market News.

OIL: Oil unchanged, market focus still on China
Oil prices fell on Tuesday in early Asian trade after moving higher in the previous session supported by data showing higher Chinese demand for oil in November. 
China's apparent oil demand hit a record 9.3 million barrels per day in November as refineries made more diesel than ever to help cover shortages on the domestic market,  Reuters calculations based on preliminary data showed. Crude oil processing hit a record 8.92 million bpd.

COMMODITY MARKETS: China stokes copper record, oil lags
NEW YORK, Dec 13 (Reuters) - Reports showing China's economy remains on the boil drove copper to record highs on Monday and triggered a run-up in many other commodities despite speculation that the giant raw materials consumer will raise interest rates soon, dampening demand.
"It's going to take an act of God to get the Fed to trim its bond buying," said Michael Woolfolk, an analyst at BNY Mellon. "That's what people are concerned about."
    
GLOBAL MARKETS: Global stocks rally falters, dollar slips
NEW YORK, Dec 13 (Reuters) - A stock rally fizzled on Wall Street on Monday as investors took profits and the dollar fell after Moody's warned it may change its U.S. outlook if a tax-cut deal is adopted.
"We've had a decent run-up over the last week or so and the market started out strong, but we saw a bit of profit-taking at the end," said Giri Cherukuri, head trader at Oakbrook Investments LLC in Lisle, Illinois.

SCENARIOS-China policy tightening and commodities
Dec 13 (Reuters) - Commodity investors may be switching  their stance on the risk of Chinese policy tightening away  from last month's fear to an optimistic outlook reflecting the  positive historical correlation between inflation and  commodity prices.
With data over the weekend showing inflation running at a  28-month high above 5 percent, most market watchers expect  Beijing to continue to tighten policy, including raising  interest rates.

China extends reserve requirements for top banks
HONG KONG/BEIJING, Dec 13 (Reuters) - China's central bank  told six of the country's biggest lenders that a special  increase in required reserves will be extended, the latest  step to try to quell inflation in a campaign that leaders this  weekend suggested would be intensified.
Three industry sources told Reuters that the special  increase in reserves that had been due to expire this week  will be extended for three months. That followed an official  reserve requirement increase for all banks -- the third in a  month -- that was announced on Friday.

PRECIOUS-Gold firms on physical demand, weaker dollar
LONDON, Dec 13 (Reuters) - Gold extended gains above $1,390 an ounce in Europe on Monday as the dollar surrendered early gains against the euro, and as last week's price dip of more than 2 percent brought physical buyers back to the market.
Concern over the outlook for the euro zone is also lending support to the precious metal, which is often seen as a safe store of value, analysts said.

FOREX-Euro bounces on sovereign buys; debt woes linger
LONDON, Dec 13 (Reuters) - The euro trimmed losses against the dollar on Monday, helped by East-European and Latin-American demand but hampered by uncertainty about how the euro zone would deal with its debt problems.
Trading volumes were reduced by the approach of the year-end, while few investors were willing to take on big positions before a Federal Reserve meeting this week and a European Union summit on Thursday and Friday.

U.S. wheat firm as weather worry outweighs USDA data
U.S. wheat and corn futures  crept higher on Monday in Asia, erasing early losses, as  persistent concerns about the impact of weather on global  supplies outweighed upbeat forecasts by the U.S. government.  "I think questions remain on the Australian crop and drier  conditions in the U.S. and China. These weather concerns are  probably overshadowing any announcements from the USDA," said  Garry Booth, a trader at MF Global Australia.

Treasury yields rise again, equities up
Selling pressure on 10-year U.S. Treasuries drove yields to fresh six-month highs on Monday as investors threatened to undo this year's bond rally on signs of global economic recovery and deeper U.S. deficits.  "If the market really thinks there will be a rate hike within a year, then the two-year yield could rise near 1 percent," said Tomoaki Shishido, a fixed-income analyst at Nomura Securities in Tokyo, adding that he did not believe there would be such a rate rise.

Oil steady to higher after OPEC output unchanged, eyeing China
PERTH, Dec 13 (Reuters) - Oil prices were steady to higher  after the Organization of Petroleum Exporting  Countries(OPEC) met over the weekend and agreed to keep crude  oil output levels flat.
"It looks like fundamentals are getting stronger heading into winter," said Tony Nunan, a risk manager with Tokyo-based Mitsubishi Corp.    

COMMODITY MARKETS: Investors try to defend profit in thin trade
NEW YORK, Dec 10 (Reuters) - Copper hit a near record high but most commodities fell in thin trade for a second straight day on Friday as investors tried to defend profits before the year-end, amid a resurgent dollar.
"Investors who have performed well this year may be looking to protect their gains rather at this stage," said Anne-Laure Tremblay, an analyst for gold and other precious metals at BNP Paribas in London. U.S. silver producer, Coeur d'Alene Mines Corp.
   
GLOBAL MARKETS: Asian stocks rise, dollar up on upbeat U.S. data
SYDNEY, Dec 13 (Reuters) - Asian stocks rose on Monday as  investors took in their stride China's latest attempt to cool  inflation and fresh vows to tackle price pressure, while  upbeat U.S. economic data helped   shore up the dollar.
"Investors are thinking about this issue more sensibly  than they may have done so in the past, realising the broad  growth in the Chinese economy is good and policy makers aren't  over-reacting in terms of trying to slow the economy down,"  said Craig James, chief economist at CommSec.

20101214 0937 Soy Oil & Palm Oil Related News.

Soy product futures settled higher, rallying in step with soybeans amid broad-based commodity buying. Soyoil was the upside leader of the products, garnering additional support from strong global vegoil demand and fears weather issues for Malaysian and Indonesian palm oil crops will trim world vegoil supplies, analysts said. Strong gains in crude oil aided the supportive tone. Crude oil influences grain and oilseeds due to their use in making renewable fuels. Soyoil, a byproduct of soybeans, is the primary feedstock for U.S. biodiesel production. CBOT January soyoil ended 1.29 cents, or 2.4%, higher at 55.45 cents per pound, and January soymeal traded $5.20, or 1.5%, higher at $342.80 a short ton. January oil shar was 44.67%, while the January soybean crush margin ended at 60 1/4 cents. (Source: CME)

India November Vegetable Oil Imports Fall 11% To 668,917 Tons (Source: CME)
India's vegetable oil imports in November fell 11% from a year earlier to 668,917 metric tons due to higher availability of domestic oilseed crop and rising global prices, the Solvent Extractors' Association of India said. Edible oil imports during the first month of the marketing year that began Nov. 1 totaled 652,262 tons, down from 712,677 tons, the trade body said. India is the world's second-largest vegetable oil importer after China and meets more than half of its requirements through imports.
Import price of crude palm oil rose about 55% to $1,088 per ton, while soyoil price increased more than 30% to $1,192/ton. "Local oilseeds crushing has also improved, compared with last year," said B.V. Mehta, executive director of the trade body. According to the Central Organization of Oil Industry and Trade, India's summer-sown oilseeds output in the crop year that began Oct. 1 is likely to rise 12.4% to 15.4 million tons from 13.7 million tons in the previous year. India's edible oil imports this marketing year are likely to remain unchanged from previous year's 8.8 million tons, Sushil Goenka, president of the Solvent Extractors' Association, said earlier this month.

Palm at 30-mth highs on weather concerns, China
Malaysian palm oil futures hit a 30-month high on Monday, bolstered by concerns over supply tightness during the monsoon season and a firmer  Chinese soyoil market. "Production is going to fall in December, as output has  been sizing down due to heavy rains that started two months  ago," said a trader with foreign brokerage in Kuala Lumpur.

China edible oil supply guaranteed ample - NDRC
BEIJING, Dec 13 (Reuters) - Domestic supplies of edible oils are guaranteed to be ample, said the country's top economic planner on Monday, refuting a media report of possible shortages during the Spring Festival.
"With a surge in soybean imports this year, state oilseed and oil stocks are ample, while enterprise stocks are plentiful and production levels are normal," said the National Development and Reform Commission in a statement published on its website.

India's Nov vegoil imports dip on higher local crush
NEW DELHI, Dec 13 (Reuters) - India's vegetable oil imports in November fell 11.3 percent from a year earlier on higher local soybean crushing compared with the previous month, a leading trade body said on Monday.
"Soybean crushing was good last month. It trimmed overseas requirement," said B.V. Mehta, executive director of the Solvent Extractors' Association of India.