20110304 1745 FKLI EOD Daily Chart Study.

FKLI closed : 1520 changed : 12 points,  volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : rising, buyer testing market.
Support : 1515, 1500, 1485 level.
Resistance : 1530, 1540, 1550, 1580 level.
Comment :
Rallied FKLI closed recorded gain with increasing volume changed hand doing about 2.5 points discount to cash market while regional and US overnight market closed higher after US official announced a better than expected unemployment data.
Daily chart formed an up doji bar candle with long upper shadow after market opened gap up, surge higher triggered some short covering testing upper Bollinger band level, following by profit taking activities press price lower surrendered some earlier gains to close near the low of the day ahead of the weekend.  
Chart wise, the reading turned to suggesting a side way range bound market development testing support and resistance level with MACD Histrogram positive divergence still valid and confirmation of positive MACD cross up.
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.

20110304 1520 Breaking News on Palm Oil

Reuters Survey :
Malaysia Feb 2011 Palm Oil Export Down 9.9% at 1.09 million tonnes from a month ago.
Malaysia Feb 2011 Palm Oil Output almost flat at 1.06 million tonnes from a month ago.
Malaysia Feb 2011 Palm Oil Stocks Down 2.4% at 1.38 million tonnes from a month ago (19 month lows).

20110304 0945 Global Economic Related News.

China: Manufacturing PMI fell to 44.1 in February
China’s non-manufacturing industries contracted in February for the first time in a year because of a weeklong Lunar New Year holiday. The Non-Manufacturing Purchasing Managers’ Index dropped to 44.1 from 56.4 in January, the China Federation of Logistics and Purchasing said, falling below the 50 level that divides expansion and contraction. (Bloomberg)

India: Food inflation slows to near 3-month low on harvest
India’s food inflation slowed to near a three-month low after supplies of fruits and vegetables increased from the winter harvest. An index measuring wholesale prices of agricultural products including lentils, rice and vegetables rose 10.39% in the week ended Feb 19 from a year earlier, the commerce ministry said. The gain is the least since Nov 27 and compares with an 11.49% increase the previous week. (Bloomberg)

Australia: Trade surplus narrows as floods disrupt mining
Australia’s trade surplus narrowed in January as floods inundated the nation’s northeast, disrupting exports of coal and other commodities. The excess of exports over imports totaled AUD 1.88bn (USD 1.91bn), down from a revised AUD 2bn surplus in December, the Bureau of Statistics said. The surplus exceeded the median estimate in a Bloomberg News survey of 24 economists for a surplus of AUD1.6 bn. (Bloomberg)

EU: Investment falls most in a year, export growth slows
European companies cut investment by the most in a year in the fourth quarter and export growth weakened, curbing economic growth even as consumers stepped up spending. Euro-region investment including construction spending dropped 0.6% from the third quarter, when it fell 0.1%, the European Union’s statistics said. Export growth slowed to 1.8% from 2.2% and consumer-spending growth accelerated to 0.4% from 0.1%. Gross domestic product rose 0.3% in line with Feb 15 estimate. (Bloomberg)

US: Productivity rises 2.6% in fourth quarter, costs fall 0.6%
The productivity of US workers increased in the fourth quarter at a faster pace as companies sought to pare costs to preserve profits. The measure of employee output per hour rose at an unrevised 2.6% annual rate after a third-quarter gain of 2.3%, figures from the Labor Department showed. Labor expenses fell for a second straight year. (Bloomberg)

US:Claims fall to 368,000, lowest since 2008
Initial jobless claims unexpectedly declined last week to the lowest level since May 2008, pointing to a strengthening labor market. Applications for unemployment benefits decreased by 20,000 to 368,000 in the week ended Feb 26, Labor Department figures showed. Economists forecast claims would climb to 395,000, according to the median estimate in a Bloomberg News survey. The total number of people receiving unemployment insurance fell to the lowest level since Oct 2008. (Bloomberg)

20110304 0944 Malaysia Corporate Related News.

Lion to fire up RM3bn mega blast furnace project in Banting
Tan Sri William Cheng’s Lion Diversified Holding will jointly invest in a RM3.23bn blast furnace project spanning several steel ironmaking facilities with his two other listed vehicles. Lion Diversifies will own a 51% stake in the joint venture under Lion Blast Furnace SB while Lion Industries Group and Lion Forest Industries will hold 29% and 20% respectively of the project located in Banting, Selangor. (Malaysian Reserve)

New multibillion ringgit investment for O&G project in Teluk Ramunia
Johor will receive a new multibillion-ringgit investment for an oil and gas (O&G) project in Teluk Ramunia soon. The state has earmarked a 800ha plot on the southeast coast of Johor, said Johor Menteri Besar Datuk Abdul Ghani Othman. The project will be led by a "local company that has been all over the world and is now coming back to Malaysia". The government will help fund the development of infrastructure for the project. Ghani refused to elaborate. (BT)

KNM Group secures RM693m new orders to-date
KNM Group has secured new order amounting to RM693m so far this year, underpinned by the improved sentiments in the global oil & gas industry, the oil & gas process equipment manufacturer said in a statement to Bursa Malaysia yesterday. It said its current order book stood at RM6.4bn with a backlog of RM6.4bn. (Financial Daily)

EPF can’t own more than 45% of RHB Cap
Bank Negara has not allowed the Employees Provident Fund (EPF) board to hold more than 45% of the paid-up share capital of RHB Capital. In a note to Bursa yesterday, RHB Cap said that RHB Investment Bank and CIMB Investment Bank, on its (RHB Cap’s) behalf, said that Bank Negara was not able to consider the EPF’s application via a letter dated Feb 25. “Accordingly, EPF’s irrevocable undertaking to subscribe under the rights issue shall be for a minimum of 45% of the total rights shares,” it said. (StarBiz)

Prasarana to get part of RRIM land for development
Syarikat Prasarana Negara will be allocated a parcel of land in the proposed Sungai Buloh Rubber Research Institute Malaysia (RRIM) development project for commercial development as part of the “rail plus property” model being used to offset the cost of building the mass rapid transit (MRT), sources said. “Negotiations are ongoing between Prasarana and the Employees Provident Fund (EPF),” said one source. “The parcel of land (to be allocated) will be used to build the MRT's main depot but it will also include commercial development above and possibly around the depot, in the form of retail and office space,” another source explained. (StarBiz)

Kenmark directors fined RM2.5m
Bursa Malaysia has fined three directors of financially troubled Kenmark Industrial Co (M) some RM2.5mi collectively for breaking listing rules. The three Taiwanese, who have not appeared in public since the furniture company's troubles began last year, are being punished for Kenmark's unclear and late statements, among others. Legal action would be taken against them, namely Hwang Ding Kuo @ James Hwang, Chang Chin- Chuan and Chen Wen-Ling, if they fail to pay the fines before 10 March 2011. (StarBiz)

20110304 0912 Global Market Related News.

Crude holds near $102 ahead of U.S. payroll data
SINGAPORE, March 4 (Reuters) - U.S. crude futures held steady near $102 a barrel ahead of payrolls data from the United States, a leading economic indicator, while skepticism remained on whether a proposal from Venezuela to resolve the Libya crisis would be carried out.
Libyan rebels pushed west on Thursday while Venezuela said Muammar Gaddafi had agreed to its proposal for an international commission to negotiate an end to the turmoil in the world's 12th largest oil exporting nation.

US corn/soybeans held back by dollar, wheat up
SYDNEY, March 4 (Reuters) - U.S. corn and soybeans futures were flat in early Asian trading, as traders assessed the currency impact of a weaker U.S. dollar against the euro, while the greenback made modest gains against other currencies such as the yen.
The U.S. Department of Agriculture (USDA) said weekly sales of U.S. corn surpassed 1 million tonnes for a fifth week, matching the longest such streak since late 2007 as importers scrambled for supplies amid tightening stocks.

Gold steady Above $1,415/oz after fall, US job data eyed
SINGAPORE, March 4 (Reuters) - Spot gold held steady, consolidating after falling more than 1 percent in the previous session, as investors await a key U.S. job market report to assess the health of the world's top economy.
"If the payrolls data surprises on the downside, gold prices will continue to be supported," said a Tokyo-based trader. "If it is better than expected, it may put some pressure on prices."

Asia stocks set for biggest weekly rise in 3 mths
HONG KONG, March 4 (Reuters) - Asian stocks were poised for their best weekly gains in three months as market players hunted for bargains while the euro perked up after the European Central Bank signalled a rate hike as early as next month.
"Substantial gains are expected in morning trade on hopes for good jobs data in the U.S., but the market may trim gains towards the close because investors remain cautious until they actually see the figures," said Shinichiro Matsushita, a market analyst at Daiwa Securities.

Oil : Crude holds near $102 ahead of U.S. payroll data
SINGAPORE, March 4 (Reuters) - U.S. crude futures held steady near $102 a barrel on Friday ahead of payrolls data from the United States, a leading economic indicator, while skepticism remained on whether a proposal from Venezuela to resolve the Libya crisis would be carried out.
Libyan output has fallen to 700,000-750,000 barrels per day from normal levels of 1.6 million bpd as most foreign oil workers had taken flight, according to Shokri Ghanem, the head of Libya's state-owned oil company.

COMMODITIES: Oil, gold fall on Libya plan, doubts limit decline
NEW YORK, March 3 (Reuters) - Oil and gold ended lower on Thursday, as investors took some profits off recent highs, following news that Libyan leader Muammar Gaddafi accepted a plan to end uprising in the OPEC nation, but scepticism about the deal's success kept prices firmly underpinned.
"I am highly skeptical the market is coming off on assumptions that Chavez will successfully mediate in Libya," said Stephen Schork, editor of The Schork Report in Villanova, Pennsylvania. "I think the market was overbought."

GLOBAL MARKETS: Asian stocks rise on oil retreats, euro gains
HONG KONG, March 4 (Reuters) - Asian shares rose on Friday,  helped by retreating oil prices and a firmer Wall Street close while the euro perked up after the central bank signalled a rate rise as early as next month.
"Substantial gains are expected in morning trade on hopes for good jobs data in the U.S., but the market may trim gains towards the close because investors remain cautious until they actually see the figures," said Shinichiro Matsushita, a market analyst at Daiwa Securities.

Libya Tamoil unit could see UN sanctions impact
LONDON, March 3 (Reuters) - The Swiss branch of Libyan oil company Tamoil said on Thursday United Nations sanctions could affect the group's ability to source crude and that high oil prices had forced it to cut refinery runs.
Tamoil also said it was already running its 72,000 barrel-per-day Swiss Collombey refinery at reduced rates and on reserve stocks, making it the first refiner in Europe to confirm run cuts.

China 2011 Agriculture Spending To Top CNY858 Bln -State TV
The Chinese government plans to invest more than CNY857.97 billion this year in its agricultural sector, state television reported. The spending plan would represent an increase of about 5% over the spending in 2010.

FAO Says Rising Oil Could Herald Food Crisis (Source: CME)
Rising oil prices could tip the world into a food crisis next season, a senior executive at the United Nations' food organization said as its food price index hit a new record in February. The Food and Agriculture Organization index rose 2.2% in February--the eighth consecutive monthly rise--to an average 236 points, the highest in real and nominal terms since FAO started monitoring prices in 1990. Global cereal supplies are also expected to tighten sharply this year due low stock levels, the FAO said. The body raised its estimate for 2010 world cereal production by 8 million metric tons to 2.2 billion tons, but said it expects that to be outpaced by an 18 million-ton increase in consumption.
While the world isn't yet facing a food crisis, the secretary of the FAO's Intergovernmental Group on Grains Abdolreza Abbassian said the recent rise in oil prices could create the same potent mix of factors that pushed grain prices to record highs in 2008. "The oil factor, which has so far not been a driving factor this season, could become an element like it was in 2008," he said. "It's very unlikely we will see a food crisis in 2010-11 but we can't exclude such a situation in 2011-12." International export prices of major grains are already more than 70% higher than this time last year after a succession of weather problems in key producers slashed hopes for the world harvest. The FAO's cereal price index, which includes prices of food staples wheat, rice and corn, rose 3.7% in February to 254 points, its highest level since July 2008.
Abbassian said the increase in oil prices has now made planting crops such as corn more attractive as they can be converted into fuel substitute ethanol. "With oil prices rising it could encourage a bigger corn crop at the expense of other crops," he said. However, this removes crucial acreage from crops like wheat. The FAO predicts wheat production will rise about 3% in 2011, but Abbassian said a minimum increase of 3.5% is needed. The FAO oils and fats price index rose marginally to 279 points in February, a level just below the June 2008 peak. Of all the commodities groups monitored by the FAO only sugar dipped last month, to 418 points, slightly below the previous month but still 16% higher than February 2010.

U.S. private-sector jobs pick up pace in February
NEW YORK, March 2 (Reuters) - U.S. private sector employers added more jobs than expected last month, raising hopes that Friday's closely watched government jobs report could show more growth than anticipated.
Economists said the private-sector data released on Wednesday bodes well for the labor market, though they noted the month-to-month changes in the ADP Employer Services report are not always good predictors of the U.S. Labor Department's larger nonfarm payrolls data.

China Q1 inflation seen above 5 pct - govt economist
NINGBO, China, March 3 (Reuters) - China's annual inflation is likely to top 5 percent in the first quarter of 2011, a senior government economist said on Thursday.
The full-year inflation rate would probably be about 4 percent, said Fan Jianping, head of economic forecasting at the State Information Center, a government think tank.

GLOBAL ECONOMY-European business surges, price pressure builds
LONDON, March 3 (Reuters) - Europe's private sector surged ahead at its fastest pace in almost five years in February in an upturn that included debt-ravaged euro zone economies like Ireland and Spain, business surveys showed on Thursday.
While suggesting a strong start to 2011 for most of the world's major economies, the latest batch of purchasing managers' indexes (PMI) again pointed to fast-building inflationary pressures.

Glencore bullish on 2011 outlook for commodities
LONDON, March 3 (Reuters) - The world's biggest commodities trader, Glencore International, is bullish on the outlook for the asset class, expecting last year's buoyant trends based on growth in emerging nations such as China to persist this year.
Glencore, preparing for a possible stock listing, posted a 40 percent jump in 2010 net profit on Thursday, driven by strong commodity prices, especially metals such as copper.

PRECIOUS-Gold dips as Libya peace plan saps safe-haven bid
LONDON, March 3 (Reuters) - Gold slipped on Thursday after the Arab League said a Venezuelan proposal to end the Libyan conflict was under consideration, but uncertainty over the future of the region kept prices in sight of record highs.
Arab League Secretary General Amr Moussa told Reuters on Thursday that the a plan to bring peace to proposed by Venezuelan leader Hugo Chavez was "under consideration."

FOREX-Euro near key resistance; ECB's Trichet in focus
LONDON, March 3 (Reuters) - The euro hovered near a four-month high and a key resistance area against the dollar on Thursday, supported by expectations that the European Central Bank is set to pave the way for rate rises later in the year.
Investors have pushed the euro up about 3 percent from a low hit on Feb. 14 on the view that ECB chief Jean-Claude Trichet, who speaks at 1330 after the bank ends a policy-setting meeting, will sharpen his anti-inflation rhetoric as oil prices continue to soar.

U.S. corn steady after selloff, soybeans edge higher
SINGAPORE, March 3 (Reuters) - U.S. corn futures were nearly flat in cautious trade after steep losses in the previous session which were triggered by long liquidation resulting from social unrest in the Middle East.  "The market is eyeing the political unrest in north Africa and the Middle East which is having a mixed impact on the agricultural complex," said Luke Matthews, an agricultural commodities strategist at Commonwealth Bank of Australia.

Indonesia sees agriculture data as key to food security -officials
JAKARTA, March 3 (Reuters) - Indonesia's agriculture ministry and statistics agency have signed an agreement aimed at releasing more agriculture data, to help food security planning in the world's fourth-most populous nation.
Like many emerging markets, Indonesia is battling booming global food prices, and has been forced to import various foods as it grapples with inflation.

Oil dips briefly on Libya peace talk; ECB in view
LONDON, March 3 (Reuters) - A proposal by Venezuela President Hugo Chavez to try to broker a peace deal in Libya briefly pushed oil lower while recently risk-averse stock markets put in some gains.
"If it's coming out of Chavez, it might not have a great degree of substance," said Tim Riddell, head of technical analysis at ANZ in Singapore.

Big US corn export sales set to slow
CHICAGO, March 3 (Reuters) - U.S. corn export sales may have topped 1 million tonnes for a fifth straight week, equaling the most torrid pace since the frenzied days of late 2007, but shipments will now have to slow soon.
The latest flurry of corn sales -- fueled by fears of shrinking stockpiles and rising prices -- has simply offset a sluggish first half of the marketing year and put sales back on pace to reach the U.S. Agriculture Department's most recent export target, but not exceed it, analysts said.

China seen planting more corn, cotton as prices rise
BEIJING, March 2 (Reuters) - China's farmers are likely to devote more acreage to corn than any other crop this spring to benefit from historic high prices, the government is expected to show in a plantings report later this month.
Bellwether U.S. cotton futures  surged to an all-time high last month, driven largely by an insatiable appetite from China, the world's biggest importer of the fibre.

20110304 0909 Soy Oil & Palm Oil Related News.

Soy product futures end mixed, as soymeal rises with soybeans on optimistic outlooks for demand amid tight projected soybean supplies. However, ample nearby supplies limited advances to only a moderate recovery, analysts say. Soyoil stumbles on profit taking from recent gains and spillover weakness from lower crude oil futures. Crude oil influences soyoil due to its use in making renewable fuels. CBOT May soyoil ends 0.03 cents or 0.05% lower at 58.77 cents per pound, and May soymeal trades $8.10 or 2.2% higher at $372.50 a short ton. (Source: CME)

Argentina Grain Port Strike Continues; Deal Seen Near (Source: CME)
Argentine port workers Thursday continued to picket two important grain ports at a key shipping center north of the city of Rosario, as a dispute over service fees entered its second day. About three-quarters of Argentina's agriculture exports are shipped from river ports clustered around Rosario and nearby San Lorenzo. Argentina leads the world in soymeal and soyoil exports and is the third-largest soybean exporter. The cooperative that employs the picketing workers is demanding that grain exporters pay more for the port services it provides. "We're not too far apart" in the negotiations, Monica Games, administrative secretary for the cooperative, said in an interview.
So far, the effect of the strike has been limited, as only two of the 12 ports lining the banks of the Parana River near San Lorenzo have been shut down, Games said. In addition, port activity is at its lowest point of the year right now, as grain supplies from last season's harvest dwindles. However, the corn harvest has already started and the soy harvest will kick off in earnest toward the end of this month.  China 2011 Agriculture Spending To Top CNY858 Bln -State TV The Chinese government plans to invest more than CNY857.97 billion this year in its agricultural sector, state television reported. The spending plan would represent an increase of about 5% over the spending in 2010.

Palm oil up 1.4 pct on crude oil, China import tax move
KUALA LUMPUR, March 3 (Reuters) - Malaysia's crude palm oil futures climbed 1.4 percent as traders bet that higher oil prices and news China plans unspecified import tax cuts on imported goods will boost demand for vegetable oils.  "China has been getting aggressive again about importing agriculture goods after the Lunar New year holiday," said a Malaysian trader.

Higher local supply to cut India edible oil imports
NEW DELHI, March 3 (Reuters) - India's edible oil imports may fall by around 500,000 tonnes as domestic supply is expected to rise 15 percent to 7.5 million tonnes in 2010/11 on higher oilseeds output, a leading trader said on Thursday.
Higher local supply in the world's No. 1 edible oil buyer and lower imports could put a downward pressure on global prices.

Palm oil smallholders can more than double output-green group
JAKARTA, March 3 (Reuters) - Independent smallholder palm oil plantations in Indonesia could more than double production if given access to better farming techniques, and help combat deforestation, an environmental group said on Thursday.
Palm oil output in the world's top producer Indonesia hit about 22 million tonnes last year, and is seen below 22 million  this year because of heavy rains.

20110303 1833 FCPO EOD Daily Chart Study.

FCPO closed : 3600, changed : +10 points, volume : lower.
Bollinger band reading : correction range bound downside biased.
MACD Histrogram : recovering, seller taking profit.
Support : 3550, 3500, 3470, 3450 level.
Resistance : 3620, 3650, 3700 level.
Comment :
FCPO closed edge up slightly with lower volume participation while soy oil and crude oil price traded wild swing after unconfirmed news of Libya condition easing.
Daily chart formed a down doji bar candle moving toward middle Bollinger band level after market opened gap up, tested higher resistance followed by news of Libya easing condition in the afternoon session triggered panic selling plunge down lower and recovered upward.
The reading remained suggesting a correction range bound downside biased market development testing support 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.

20110303 1753 FKLI EOD Daily Chart Study.

FKLI closed : 1508 changed : 15.5 points,  volume : higher.
Bollinger band reading : correction range bound little downside biased.
MACD Histrogram : rising, seller leaving.
Support : 1500, 1485, 1480 level.
Resistance : 1515, 1530, 1550 level.
Comment :
FKLI closed recorded gain recovered at yesterday loss with higher volume traded doing about 1.5 point premium to cash market after while regional market closed mostly higher.
Daily chart formed an up doji bar candle with longer upper shadow after market opened gap up and surge higher tested resistance level and eased lower slightly to close off the high closing little above middle Bollinger band while the bandwidth started to turn inwards.
Technical reading  suggesting a correction range bound little downside biased market development with MACD Histrogram positive divergence forming plus an almost positive MACD cross up.
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.

20110303 1017 Global Economic Related News.

South Korea: Inflation rises to two-year high, breaching target
South Korean inflation rose to a two-year high in February, breaching the central bank’s 4% ceiling for a second month and bolstering the case for an interest rate increase as early as next week. The consumer-price index rose 4.5% from a year earlier, after gaining 4.1% in January, Statistics Korea said. That compares with the median estimate of 4.3% in a Bloomberg News survey of 11 economists. Prices rose 0.8% from the previous month. (Bloomberg)

Australia: Economy expanded by 0.7% last quarter before floods
Australia’s economic growth accelerated in the final three months of last year, the eighth straight quarterly expansion, before floods and cyclones this year ravaged the nation’s northeast. Gross domestic product advanced 0.7% from the third quarter, when it rose a revised 0.1%, the Bureau of Statistics said. That matched the median forecast in a Bloomberg News survey of 25 economists. The report validates Reserve Bank of Australia Governor Glenn Stevens’s view that natural disasters in the state of Queensland this quarter will be only a temporary drag on growth. (Bloomberg)

EU: Spanish registered unemployment rises, deepening EU divide
Spain’s registered unemployment advanced for a second month in February, deepening the divide between peripheral economies struggling to recover from the financial crisis and Germany’s booming labor market. The number of people registering for jobless benefits in Spain rose by 68,260, or 1.6%, from January to 4.3 million, the Labor Ministry in Madrid said. Spain’s unemployment rate remains at more than 20%, while the number of Germans out of work dropped to the least since 1992 last month. Spain’s economy emerged from an almost two-year recession in 2010 before contracting again in the third quarter as austerity measures undermined the recovery. (Bloomberg)

EU: Europe producer-price inflation quickens more than forecast
European producer-price inflation accelerated more than economists forecast in January, as soaring energy costs added to the European Central Bank’s concerns that inflationary pressures are building. Factory-gate prices in the euro region jumped 6.1% from a year earlier, after increasing 5.3% in December, the European Union’s statistics office said. That’s the fastest since September 2008 and above the 5.7% gain forecast by economists, according to the median of 16 estimates in a Bloomberg survey. January prices rose 1.5% from December. (Bloomberg)

US: Fed says labor market strengthened on manufacturing, retail
The Federal Reserve said the labor market improved throughout the country early this year, driven by increasing retail sales and “solid growth” in manufacturing. “Labor market conditions continued to strengthen modestly, with all Districts reporting some degree of improvement,” the Fed said. Its last survey, released 12 Jan, said the job market was “firming somewhat.” Overall, the economy “continued to expand at a modest to moderate pace,” the central bank said. (Bloomberg)

US:Manufacturing expands by most since 2004
Manufacturing in the US grew in February at the fastest pace in almost seven years, driven by gains in orders, employment and exports that signal factories will continue to propel the expansion. The Institute for Supply Management’s factory index increased to 61.4, exceeding the median forecast of economists surveyed by Bloomberg News and the highest level since May 2004. Readings greater than 50 signal growth. Compared with similar measures released in Europe and Asia, the data put the US at the forefront of the global manufacturing rebound. (Bloomberg)

U.S: ADP estimates companies' added 217,000 jobs in February after a revised 189,000 gain in January. The median estimate in the Bloomberg News survey called for a 180,000 gain last month. (Source: Bloomberg)

U.S: Bernanke signaled he's in no rush to tighten credit after the Fed finishes an expansion of record monetary stimulus, seeing little inflation risk and still-slow job growth. A surge in the prices of oil and other commodities probably won't generate a lasting rise in inflation, Bernanke told lawmakers in semiannual testimony on monetary policy. A "sustained period of stronger job creation" is needed to ensure a solid recovery, and the Fed's benchmark rate will stay low for an "extended period," he said. (Source: Bloomberg)

E.U: The debt ratings of Portugal and Greece remain at risk of being cut due to concern about how a European Union rescue fund may affect holders of the two nations' sovereign bonds, Standard & Poor's said. The ratings company kept Portugal's A-long-term, A2 short-term and Greece's BB+ long-term ratings on credit watch negative, according to statements released. It cited Portugal's "high external financing need and limited funding sources". (Source: Bloomberg)

S. Korea: Factory output rises 13.7% YoY in January from a revised 10.6% YoY expansion in December. Production gained 4.6% MoM from December. (Source: Bloomberg)

Crude Oil: Mideast unrest could push prices over USD 140/bbl, Roubini says. Nouriel Roubini, an economist who predicted the credit-market collapse, said an expansion of troubles in the Mideast could push oil prices as high as USD 140/bbl to USD 150/bbl, triggering a double-dip recession in parts of Europe. "If troubles spread to other countries such as Bahrain and Saudi Arabia, this could push oil which in turn could trigger a double-dip recession in the periphery of Europe and the U.K.," Roubini said at a conference in Paris. (Source: Bloomberg)  

20110303 1015 Malaysia Corporate Related News.

Celcom: Investing RM1b to upgrade network. Celcom Axiata Bhd will invest about RM1b this year in capex to upgrade its network to be long-term evolution (LTE) ready. 60% of the RM1b would be used to enhance its data network while 40% would be used to maintain its current network. (Source: The Star)

Sime Darby: No deal signed on Cameroon. Sime Darby Berhad clarified that it has not entered into any agreement to invest in oil palm plantation in Cameroon. However, Sime Darby does explore investment opportunities relating to its core businesses as part of the continuous expansion plan of the Group. (Source: Bursa Malaysia)

MMC, Gamuda: In shareholders deal. MMC Corp Bhd and Gamuda Bhd have entered into a shareholders' agreement to regulate their rights and liabilities as shareholders of a company that will act as the project delivery partner for the Klang Valley Mass Rapid Transit (MRT) project. The company that would undertake the MRT project would be equally owned by MMC and Gamuda. (Source: Bursa Malaysia)

O&G: Petronas to invest RM250b in next 5 yrs. Petroliam Nasional Bhd plans to invest RM250b in the next five years in exploration and asset replacement to maintain the exploration levels. The capital expenditure would be internally funded. (Source: The Edge Financial Daily)

Aviation: IATA cuts airline industry 2011 earnings outlook. Global airline earnings will halve this year as rising costs, especially oil prices, offset increasing demand, according to industry body International Air Transport Association (IATA). IATA, whose 230 members include Malaysia Airlines and Singapore Airlines lowered its earnings forecast for 2011 to USD8.6b this year from USD9.1b forecasted in December. The new forecast represents a 46% decline in net profit from 2010 net profit of USD16b. (Source: The Star) 

Petronas capex may hit RM275bn
Petroliam Nasional (Petronas) expects to spend up to a whopping RM275bn as its capital expenditure (capex) for the next five years, its chief says. The average capex of RM50bn to RM55bn a year is higher than what Petronas traditionally spent, which was around RM30bn to RM40bn a year. Petronas, which announced its thirdquarter results in Kuala Lumpur yesterday, said it expects net profit for the year ending March 2011 to breach RM90bn. The higher capex is essential to cope with rising costs, upgrade asset integrity, enhance yield of existing or legacy assets, drive growth and venture into more challenging and green field plays such as enhanced oil recovery, deep-water and unconventional hydrocarbons. (BT)

Transmile appeals against delisting
Transmile Group has submitted an application to Bursa Malaysia to appeal against the latter's decision to delist the company, and to seek an extension of time to submit its regularisation plan. Transmile was supposed to submit the plan to the Securities Commission or Bursa Malaysia for approval by 22 Feb. On 23 Feb, the company told Bursa that it had until 2 March to submit an appeal to the latter. Meanwhile, the trading of Transmile shares will be suspended effective from March 2011 but the removal of the securities from the official list of Bursa Securities on 7 March will be deferred, pending the decision on the appeal. (StarBiz)

Carmaker may export Malaysia-assembled Mazda3
Mazda Motor Corp, which is upbeat on sales growth in Malaysia, is considering exporting locally-assembled Mazda3 to the region in the future. Managing executive officer and general manager (overseas sales division) Yuji Nakamine said the sales and production expansion in Malaysia and other Asean markets is part of Mazda's mid-term initiatives to achieve 1.7m unit sales in five years' time. He said currently, the assembly of Mazda3 CKD (completely knocked down) units in Malaysia is for the local market. "But, in the future, if we have good operations here, increase in localisation, reduction in cost and improvement in quality, we may have an opportunity to export from Malaysia (BT)

RM105m for Naza-Peugeot Asean project
Naza Group, together with French partner automotive giant Peugeot, will soon commit more than RM100m to their programme in Asean. Code-named the "Asean Project", it aims to introduce at least one new Peugeot model a year until 2015. It is learnt that Naza, through its Peugeot franchise holder Nasim SB and Naza Automotive Manufacturing SB (NAM), will spearhead the project. A source close to the project revealed that the programme will involve the manufacture and assembly of several new models that may include a sports utility vehicle for the Asean market to complete the Peugeot vehicle line-up from 2013 onwards. "The move is in line with Naza's five-year continuity plan with Peugeot and is estimated to involve about RM105m of investment over the period. "This new direction will see at least 60,000 units of cars, including the C-segment T73 sedan, being rolled out of NAM's plant in Gurun, Kedah, for the next five years beginning next year," the source told Business Times. (BT)

SP Setia buys Cyberjaya land for RM420m
Property developer SP Setia Bhd has bought 108.5ha of prime freehold land in Cyberjaya's flagship zone for RM420.4m from Setia Haruman SB. The land will be developed as Setia Eco Glades project by Setia Eco Villa, a joint-venture company between SP Setia which holds 70%, and Setia Haruman, 30%. SP Setia president and chief executive officer Tan Sri Liew Kee Sin said the project would be a mixed residential and commercial development. “It is expected to have a gross development value of RM3bn,” he told a press conference after a signing ceremony between SP Setia and Setia Haruman. (BT)

Uzma secures RM200m Petronas contract
Uzma’s subsidiary, Uzma Engineering SB, has been awarded a contract estimated at RM200m with Petronas. Its unit now has secured a long term service agreement to provide a low pressure system (LPS) for Petronas’ domestic upstream operations. (Financial Daily)

20110303 1011 Renewables Energy Related News.

UK SOLAR INCENTIVE CAP TO HARM GROWTH-SHARP
LONDON, March 1 (Reuters) - A UK government review of incentives for installations generating over 50 kilowatts of renewable energy could harm the economy and stunt a fledgling market, Sharp Corp's  UK solar divison told Reuters.
The government announced a review last month of the so-called Feed in Tariff (FIT) scheme, which pays per unit of electricity produced from small-scale, low-carbon energy.

ITALY ENVIRONMENT MINISTER SAYS RENEWABLE ENERGY INCENTIVES WILL BE RENEWED BY GOVT
ROME, March 1 (Reuters) - Italian government incentives for renewable energy production are set to be renewed by the government at a meeting on Thursday, Italy's environment minister Stefania Prestigiacomo said on Tuesday.
"The incentives can only be confirmed," environment minister Stefania Prestigiacomo said at a news conference.

JA SOLAR TO SUPPLY PRODUCT TO GERMANY'S SOLAR FABRIK
March 1 (Reuters) - Chinese solar cells and power products maker JA Solar Holdings Co Ltd  said it will supply Germany-based Solar-Fabrik AG  with more than 110 megawatts (MW) of photovoltaic products this year.
JA Solar supplied over 70 MW of products to Solar-Fabrik in 2010, it said in a statement.

S.AFRICA TO PASS NEW ENERGY PLAN INTO LAW BY APRIL
JOHANNESBURG, March 1 (Reuters) - South Africa's new energy resource plan, which will determine the country's electricity mix over the next 20 years, will be passed into law by the start of April, a government official said on Tuesday.
The draft Integrated Resource Plan (IRP 2) has called for nuclear and renewable energy to play a bigger role in plugging South Africa's power deficit as it seeks to halve its reliance on coal, which supplies some 95 percent of the country's power.

TRADING EMISSIONS UNIT TO BUY TWO SOLAR PLANTS FROM BP SOLAR
LONDON, Feb 28 (Reuters) - TEP Solar, a unit of  British clean-energy projects developer Trading Emissions Plc , said it would buy two solar photovoltaic plants developed by BP Solar  in Italy.
The deal comes after Trading Emissions, which is trying to sell itself, said earlier on Monday it had received an "encouraging" level of interest from buyers. [

RENEWABLES STILL SUFFER FROM ECONOMIC CRISIS-REPORT
LONDON, Feb 28 (Reuters) - The global renewable energy market is still suffering from the effects of the financial crisis which started in 2008, according to a report published by Ernst & Young on Monday.
"The toxic legacy of the global financial crisis continues to cast a shadow over the global renewable energy market," the report, which ranks 30 countries according to their attractiveness for renewables investment, says.

GERMAN POWER CAPACITY TO RISE 2.2 PCT IN WEEK
FRANKFURT, Feb 25 (Reuters) - German power plant availability reported by producers and transmission firms to energy exchange EEX is set to rise 2.2 percent to 64,346 megawatts (MW) in the seven days to March 4, data from the bourse showed on Friday.
The EEX on its website issues transparency data from German generators, grid operators and small plants below 100 MW, as well as live production forecasts on an aggregated basis.

MITSUBISHI CORP TO INVEST IN ACCIONA THERMAL UNIT
TOKYO, Feb 25 (Reuters) - Mitsubishi Corp , Japan's largest trading company, said on Friday it would spend 45.8 million euros ($62.8 million) on a 15 percent stake in a solar thermal energy plant owned by Spain's Acciona SA .
Acciona, a leading global renewable energy firm, has begun commercial operations at three concentrated solar power (CSP) generation plants, with the fourth due to start operating later this year.

MAJOR SUNPOWER PLANT GETS LOCAL APPROVAL
LOS ANGELES, Feb 24 (Reuters) - A SunPower Corp  project slated for Central California received county-level approval on Tuesday, overcoming a key hurdle on the road to building what could one day be one of the world's largest power plants that create energy from the sun's light.
The Planning Commission of San Luis Obispo county approved the project after a string of hearings during which the five-member commission weighed the project's economic and environmental benefits against its impact on native species, local residents and the region's rural landscape.

ONTARIO APPROVES 40 NEW CLEAN POWER PROJECTS
OTTAWA, Feb 24 (Reuters) - The Canadian province of Ontario, fast becoming a clean energy powerhouse, said on Thursday it has approved 40 new large-scale renewable power projects that will create 7,000 jobs and attract C$3 billion ($3.06 billion) in private sector investment.
This second round of projects will generate 872 megawatts of electricity from the sun, wind and water, enough power for more than 200,000 homes. It follows the April announcement of 180 projects that will generate 2,400 MW of clean energy.

ITALY TO INSTALL 5,000 MW SOLAR CAPACITY IN 2011-GIFI
MILAN, Feb 24 (Reuters) - Italy, one of the most rapidly growing solar markets in the world, is expected to install 5,000 megawatts of photovoltaic capacity in 2011, industry body GIFI said on Thursday.
Italy's total installed photovoltaic capacity, which turns sunlight into power, is seen rising to 15,000 MW by 2015 from about 3,000 MW at the end of 2010, GIFI said in a statement.

CHUBU ELECTRIC: TO LAUNCH NEW NUCLEAR PLANT BY 2030
TOKYO, Feb 24 (Reuters) - Chubu Electric Power Co  plans to build and run a nuclear power plant with a 3,000 to 4,000 megawatt total capacity by 2030, as it looks comply with government guidelines.
Japan, the world's fifth-biggest greenhouse gas emitter, has drawn a roadmap for a low-carbon economy, including a goal to boost the ratio of zero-emissions power from nuclear and renewable sources to 70 percent of output by 2030 from 34 percent now.

DENMARK'S DONG SAYS TO BUILD 320 MW GERMAN WIND FARM
COPENHAGEN, Feb 24 (Reuters) - Denmark's DONG Energy will build a 320-megawatt offshore wind farm in the German part of the North Sea at a cost of about 1.25 billion euros ($1.72 billion), the company said on Thursday.
The Borkum Riffgrund 1 wind development will consist of up to 89 turbines with capacity of 3.6 MW from Siemens , state-owned DONG Energy said in a statement.

20110303 1010 Biofuels Related News.

BRAZIL ETHANOL PIPELINE TO CUT TRANSPORT COSTS 20 PCT
RIO DE JANEIRO, March 1 (Reuters) - A Brazilian ethanol pipeline system will lower transport costs by 20 percent for producers when it begins operations in 2012, the firm leading the project said on Tuesday.
The newly formed logistics company, Logum, expects the 1,300 kilometer (808 mile) pipeline system to bring savings by reducing higher-cost transport by truck which is now the predominant form of delivering fuel to consumers from production centers.

BRAZIL'S PETROBRAS 2010 FUEL IMPORTS JUMP 97 PCT
RIO DE JANEIRO, March 1 (Reuters) - Brazilian state oil company Petrobras  said on Tuesday its imports of refined petroleum products jumped 97 percent in 2010 from the year before, a sign the South American nation may become increasingly reliant on global fuel markets.
Fuel imports rose to 299,000 barrels per day (bpd) in 2010 from 152,000 bpd in 2009, the company said during an earnings presentation, while crude imports dropped 20 percent to 316,000 bpd during the same period.

GERMAN MOTORISTS WARY OF HIGHER BIOFUEL BLEND
HAMBURG, Feb 28 (Reuters) - German motorists are avoiding filling up their cars with gasoline with a higher biofuel blend due to concerns it could cause engine damage, German oil industry association MWV said.
The German government has from Jan. 1, 2011, permitted a rise in the maximum level of bioethanol allowed in blended gasoline to 10 percent from 5 percent previously as part of German's programme to protect the environment.

BRAZIL BUYS U.S. ETHANOL TO BOOST SUPPLIES-TRADERS
SAO PAULO, Feb 25 (Reuters) - Strong domestic ethanol prices have attracted some cargoes of U.S. anhydrous ethanol into Brazil's northeast, traders and analysts said on Friday, adding that purchases could grow in the coming months to ease tight local supplies.
The difference between U.S. ethanol prices and prices in Brazil, which was surpassed by the United States as the world's largest producer of the fuel a few years ago, made the deals feasible, despite specification differences between the two products, they said.

WORRIES ASIDE, US HAS "FOOT ON THE GAS" ON ETHANOL
WASHINGTON, Feb 24 (Reuters) - The United States "can do it all" -- turn more corn into ethanol without running short of food, Agriculture Secretary Tom Vilsack said on Thursday, as oil prices soared and the government raised its forecast of food price increases this year.
"There is no reason for us to take the foot off the gas," said Vilsack, referring to biofuels at a two-day Agriculture Department conference on the outlook for this year's crops. "We can do it all."