Crude palm oil futures traded mostly higher today after tested the a new high at 2518 followed by some late profit taking activities pushed the price down to closed up only 4 points at 2482. Today's doji bar candle ended near the upper Bollinger band with the band width continue to expand = further upward movement still insight. However, MACD Histrogram turned slightly lower = profit taking activities could take place anytime to close position ahead of a long weekend. Immediate resistant rest at the 2525 level and support at 2450 level.
When to buy : buy at support or weakness with quick cut loss and profit target or buy on break up with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
A tight 4 points range trading on FKLI ended the day up 1 point to closed at 1268.5 with high rollover volume changed hand. Today 7th correction candle still remained slightly above the middle Bollinger band with the band width continue to turned inwards = market still in side way range bound correction phase. MACD Histrogram dropped lower by a small fraction = no significant seller action in the market. Immediate support stands at the middle Bollinger band and follow by the 1262 level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with quick cut loss and profit target.
The Dow closed marginally lower at 10433.71 down 17.24 with lower volume traded. Daily chart wise, Bollinger band reading still suggesting an upside biased movement market but however MACD Histrogram taking an opposite call by turned lower telling us that selling mood remained strong. With these mixture signals and for the sake of risk management, it would be better to only do intraday trading with quick cut loss and profit target.
A narrow range trading rollover day for FKLI that closed the first session up 3 points at 1270.5 with high volume traded. At last looked market opened the second session higher above the middle Bollinger band with the band width stay nearly unchanged = market could possibly trade higher but with limited upside or stay side way. MACD Histrogram edged higher = buyers activities outnumber sellers. Immediate support at 1264.5 and resistant at 1274. Patience game ahead.
Crude palm oil traded firmer with high volume, up 15 points higher at 2493 in response to steady export figure released that up 1.2% to 1,131,258 tonnes by export cargo surveyor ITS. Hourly chart wise, price tested the physiological level of 2500 and continue to stayed above the middle Bollinger band with the band width narrowing = market upward movement could stay side way range bound for a small while. MACD Histrogram stayed flatted = buyer is still trying to take control of the market. Overall market still favour an upward movment with temporary side way consolidation with immediate support at the middle Bollinger band and resistant at 2520~2525 level.
The Federal Land Development Authority (Felda) is set to sell electricity to Tenaga Nasional (TNB) by end-2011 when Felda's biomass-powered energy plant at its land scheme in Jengka, Pahang, will be ready. Felda Holdings general manager and head of biomass division of corporate planning and biomass, Ahmad Nor Azman Jamin, said the plant's connectivity to the national power grid will be its first initiative to support the government's Small and Renewable Energy Programme (SREP). "The plant will generate 10 megawatts (MW) of power and we will sell it to TNB at 21 sen per kilowatt hour," he said. Ahmad said the biomass plant in Jengka will use 300,000 tonnes of empty fresh fruit bunches or oil palm waste (biomass) derived from its seven mills. It will also be modelled after the group's existing biomass plant in Sahabat. (BT)
The Sabah state’s electricity shortage has become even more acute, with power tripping unexpectedly at several stations. Sabah Electricity Sdn Bhd (SESB) said the tripping had forced power generation to drop by about 79MW. SESB’s corporate communications manager Chendramata Sinteh said load-shedding had to be implemented as they could not meet the peak demand of 730MW. (The Star)
Syarikat Prasarana Negara (SPNB) is evaluating 136 contractors, under a prequalification exercise, for the proposed extension of the Kelana Jaya and Ampang Light Rail Transit (LRT) lines which are estimated to cost RM7bn. "We have given them a month to fulfil the requirements. We have to pre-qualify them to determine if they can undertake the job," said its group managing director Datuk Idrose Mohamed. He said it was up to the contractors concerned to bid for the project via joint ventures or on their own. "Following the pre-qualification exercise, we will call for the actual tenders by early next year," he said.
- "There are lots of processes involved in the extension of the LRT lines. We have to do a final design and submit for approval to the local authorities. "Once everything is completed, we will start the actual construction which is targeted for early next year," he said. He also disclosed that the project will be completed in three years.
- Meanwhile, Idrose said Prasarana will be introducing a longer, four-car train for the Kelana Jaya LRT line, a key metro system in KL. He said the first batch of the four-car train, which is currently undergoing testing, will be operational by year-end, and a total of 35 trains will be delivered in one and a half years, with four being delivered quarterly. (Bernama)
The Islamic Financial Services Board (IFSB), in collaboration with the Islamic Development Bank (IDB), hopes to put in place a liquidity management framework by next year, Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz said. As part of global efforts to enhance the efficiency of Islamic financial institutions in managing liquidity at the national level as well as across borders, a management task force has been set up to look into the matter, she said. (BT)
Melewar Industrial Group (MIG) hopes to secure as much as 20% of the estimated RM20bn water pipe replacement contracts on offer nationwide. Executive chairman Tunku Datuk Ya'acob Tunku Abdullah said the pipe replacement contracts are likely to be offered next year by the newly established Pengurusan Aset Air (PAAB). "With the formation of PAAB, I believe there is a strong possibility that the company will actually start renewing (the country's) water pipes next year," he said.
- Tunku Ya'acob also said that MIG's associate Mycron, which produces high quality cold rolled coil (CRC) for national carmaker Proton Holdings, is also in talks to supply the high quality CRC to Perusahaan Otomobil Kedua Sdn Bhd. CRC in the automotive sector contributes about 5% to Mycron's bottomline," said Tunku Ya'acob. (BT)
Perodua says its new multi-purpose vehicle, known as the Alza, could help triple sales of the overall MPVs in Malaysia. Perodua outgoing MD Datuk Syed Abdull Hafiz Syed Abu Bakar said MPVs now account for about 10% of the total industry volume (TIV). A consumer study done by Perodua prior to the Alza introduction indicated that there was potential for the MPV segment to make up 30% of the TIV, Syed Abdull Hafiz said. This indirectly means that the Alza will soon control about two thirds of the segment now dominated by Proton Exora, Toyota Avanza and Nissan Grand Livina. Syed Abdull Hafiz expects the Alza to rake in monthly sales of 4,000 units next year. Since bookings were opened on November 13, Perodua received orders for about 3,500 units of the 1.5-litre MPV. (BT)
Edaran Otomobil Nasional's (EON) subsidiary Euromobil, the distributor of Audi vehicles in Malaysia, has awarded RM5.1m worth of construction works to Comtrac Builders, a 70% unit of DRB-HICOM. The construction works are for the Audi hangar at Glenmarie, Shah Alam, and three other branches located in Kuala Lumpur, Juru in Penang and Johor Baru. Construction work for the Kuala Lumpur branch is expected to be completed by next month, while the Audi hangar, Juru and Johor Baru branches have been completed. (BT)
AirAsia X has started flying five times a week from Kuala Lumpur to Abu Dhabi, expanding its network into the Middle East. Abu Dhabi has the potential to become a hub for the carrier to expand its network into the Middle East. "I take it (Abu Dhabi ) as a priority market. We are now focusing on adding more capacity and working on the service's efficency. We will focus on Abu Dhabi first, before expanding our network further into this region," CEO Azran Osman-Rani said. (BT)
Tune Talk is in talks with two of its three Singaporean counterparts for a potential international roaming partnership. The talks, if they go well, will allow Tune Talk to offer customers significantly lower international direct dialling rates. "Roaming is a big business. Things that were discussed include technical issues as well as call flows," said CEO Jason Lo. The company, which launched its service in mid-Aug, currently has more than 200,000 subscribers. By year-end, it is confident to hit the 300,000 mark. (BT)
Kurnia Asia, the country's largest general insurer, said its overseas operations in Indonesia and Thailand will contribute 20-25% to the group's top line in the next three to five years. "We expect the overseas units to grow at strong double digits in the medium term," Kurnia Asia director of corporate planning and investor relations, James Tee said. To meet its goals, plans include expanding the group's distribution channels via bank tieups as well as beefing up its agency force.
- Overseas business now contributes 10%, or RM85m, to the group's gross premium income of RM1.05bn for FY6/09.
- Kurnia Asia acquired PT Kurnia Insurance Indonesia in 2007 and a 25% stake in Kurnia Insuran-ce (Thailand) Co Ltd in Dec 08. The group has invested about RM43m in both the foreign units (RM17m in Thailand and RM26m in Indonesia). Looi said there is no immediate plan to raise capital for both units. (BT)
The Federation of Malaysian Manufacturers (FMM) Johor branch is opposing a proposed port consolidation plan involving MMC Corp’s wholly-owned Johor Port and 70%-owned Port of Tanjung Pelepas (PTP). The plan would see Johor Port being dedicated to handling on bulk cargo while PTP would serve as a dedicated container port from 1 Jan 2010. FFM Johor said it had expressed “grave reservations” on the proposed move as it would cause serious repercussions and disruptions in the operations of manufacturers in the industrial estates (Financial Daily)
MMC Corp said that some foundation works for its multi-billion dollar JV project, Jazan Economic City, in Saudi Arabia has been completed. MMC believes that the tenders for the proposed refinery, aluminium smelter, water desalination and sewage treatment plants will be awarded over the next few months pending some adjustments involving possible equity involvement of Saudi companies or interests in some of the projects. (Malaysian Reserve)
British American Tobacco (Malaysia) plans to dispose of a parcel of industrial land in Sabah, which has been unoccupied since early this year, for RM1.9m to an individual. The disposal of the 0.806ha-acre land includes a single-storey leaf store with an attached double-storey office, one single-storey tobacco store and one single agriculture inputs (fertiliser) store. Proceeds from the disposal will be used for working capital. (BT)
AKN Technology, a provider of manufacturing and advanced technology products and services to the semiconductor industry, hopes its financial position will strengthen by 2HFY6/10. CEO Zakaria Merican said the group would now focus on its recovery plan. Zakaria also said the group had proposed to be involved in the manufacturing and trading of gloves and rubber products via the proposed acquisition of Nobel Gloves Sdn Bhd but the application was rejected by the Securities Commission, which among others, required the group to address the Regularisation Plan. (Bernama)
Rail would be a good option to help Malaysia increase public transport usage among its population from less than 16% to 25% by 2012, says Scomi Engineering SVP Mike Dickinson. Aware that rail investments need massive capital outlay, he said the government can ease such financial burden and associated risks by teaming up with companies under the public-private partnership or 3P. (BT)
QL Resources says it may be ready to build the first commercial scale biomass power plant on new technology it developed in the next FYE3/11. "We are going to build at least one plant. This will be the first of its kind. Nobody has done it on a commercial scale before," MD Chia Song Kun said. (BT)
New mobile operator XOX Com Sdn Bhd (XOX Com) is confident of reaching 1m subscribers by end-2010 from the 100,000 currently, said president, Ng Kok Heng. He also said that the introduction of postpaid and mobile internet services in two months will further support XOX Com's efforts to achieve the subscriber target. Ng said XOX Com is also planning to increase its dealer network to 10,000 nationwide by mid-2010 from the 7,500 currently to support the growing subscriber base. (Bernama)
FCPO closed marginally lower at 2478 down 8 points forming a doji bar candle despite weaker soy oil futures price after tested the low at 2430. Daily chart wise still biased to a bullish uptrend market for FCPO in both Bollinger band and MACD indicators reading. Immediate upside target rest at 2525 and support stands at 2401.
When to buy : buy at support or weakness with quick cut loss and profit target or buy on break up with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
FKLI traded in a 8 points range market today to closed down 5 points at 1268 with higher volume traded. Once tested the middle Bollinger band support but managed to pulled itself to closed above it = possible support coming in to hold the market. Bollinger band width continue to move inwards = market still trading side way range bound. MACD Histrogram continue to head south = seller activities dominated the market today. Immediate support stands at the middle Bollinger band followed by the plotted upward trend line.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with quick cut loss and profit target.
The Dow closed higher yesterday up 132.79 points at 10450.95 and tested another new high at 10495.6 following spillover from major regional market that closed firmer. The wide range bar candle stood higher above the middle Bollinger band = market uptrend remained intact. Bollinger band width continue to narrowing = the uptrend correction phase might not yet ended. MACD Histrogram has stopped falling and stay unchanged = buyer returned to the market only for a short term intraday gain. A mixtured of signals suggested that the market could still trade side way range bound.
Down 2.5 points to closed at 1270.5, FKLI continue its side way range bound market as suggested by the chart's indicators. Hourly chart wise, the 1266.5 horizontal line will serve as the immediate support with the plotted downward line as the immediate resistant.
FCPO traded weaker after yesterday price surged to closed down 31 points at 2455 with moderate volume. Chart wise, price still holding up nicely above the middle Bollinger band with the band width stay unchanged = market remain bullish in the middle of a consolidation. MACD Histrogram sliding lower to near zero line level = profit taking activities took place. The plotted uptrend channel will likely to serve as the immediate support and resistant level.
Sources of The Australian say that Astro has taken a significant stake in Fetch TV, an IPTV start-up that is slated to launch its services in Australia next year. This is to seize the opportunity created by the Australian government's proposed national broadband network (NBN), which opens the door for new players to challenge traditional media players for a share of the country's TV viewers. Astro neither confirmed nor denied the news. (Financial Daily)
This news is a surprise and should be positive for Astro in the long run as it attempts to expand its media reach regionally. However, there could be start-up risks involved going by the "greenfield" nature of the venture and stiff competition. Astro may adopt its Malaysian pay TV model there, which would leverage on Australia's high population base.
The government is working on a plan that allows households to sell excess solar power to the national grid to spur usage of renewable energy, said Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui. This will form part of the new Renewable Energy Act that is expected to be tabled in Parliament by next June, the minister said. A feed-in tariff mechanism modelled after Germany's system will be introduced under the new law. (BT)
Tenaga has signed a Renewable Energy Power Purchase Agreement (REPPA) with Achi Jaya Plantations Sdn Bhd for 21 years to purchase electricity from the company for RM2.3m/year. The plant has an export capacity of 1.25 MW. Todate, the total capacity under the REPPA is 75.8 MW. (BMSB)
CPO rose to its highest price in more than three months on the back of bullish sentiments on commodities and strong trading interest. The contract for February delivery rose 2.8% to RM2,486 per tonne, the highest since mid-August. Jim Teh, a palm oil trader at Interband group, said CPO was mainly boosted by speculative interest as volume was low. Societe Generale de Surveillance said Malaysia's palm oil exports rose 16% in the first 20 days of November. Another surveyor, Intertek said palm oil exports increased 15% for the same period. (Financialdaily)
Perodua expects to capture 33.3% share of the local car market next year, citing better sales for its models, an improving market and better purchasing power of consumers as factors. For the first 10 months this year, its market share was 31.1%, said group MD, Datuk Syed Abdul Hafiz Syed Abu Bakar.
- Besides the Myvi and Viva models, the local car manufacturer was also banking on its newly launched MPV, ALZA, model to rake in more sales.
- ALZA, for which booking was opened 10 days ago, has received 3,500 bookings up to 2pm yesterday. (Bernama)
Despite the current market outlook, Proton expects sales in the domestic and overseas market to improve with the gradual introduction of the Saga and Exora in the global markets, beginning with the Asean region. Meanwhile, MD Syed Zainal Abidin said the carmaker hopes to announce a strategic partner ‘very soon’, without naming names. “It will be a partner that is good for the country and the eco-system. It will be a much bigger collaboration,” he added. (Malaysian Reserve)
Domestic rebar prices in Malaysia have remained flat in the past two weeks on weak demand, sources said. Malaysian mills and traders said rebar prices were at RM1,950-2,100/tonne, unchanged from a fortnight ago. But many mills or traders are undercutting prices to encourage sales, according to traders and mill officials.
- November and December are traditionally off-peak months due to the upcoming festive season, a Malaysian mill official said. "Mills often give RM25-50 discount to close deals,” he said. The low demand has also been due to rains that have slowed construction projects, a Singapore-based trader with operations in Malaysia said.
- Demand in Malaysia is not expected to increase until January, when post-seasonal demand returns, market participants said. But no further price cuts are expected as international prices are showing an upward trend recently, sources said. "We are just trying to maintain the current level," the mill official said. (Metal Bulletin)
MMC Corp's Port of Tanjung Pelepas (PTP) and Johor Port are awaiting the green light from the Government to consolidate and rationalise their operations. Under the proposal, Johor Port’s container operations in Pasir Gudang will be moved to PTP in Gelang Patah, turning Johor Port into a non-containerised port, while PTP will focus on its forte of handling containerised cargo. “The Government is still deliberating on the proposal but is expected to make a decision probably before the end of the year or early next year,” industry sources said.
- They said the Government was likely to approve the proposal, citing the move was of national interest and that the Transport Ministry and the Malaysian Industrial Development Authority (Mida) had been tasked to oversee its implementation. Senior officials from MMC Corp Bhd, Johor Port and PTP had on Oct 5 briefed the Transport Ministry on the proposal. A closed-door briefing was held recently between senior officials from Mida, MMC, Johor Port and PTP with the companies in Pasir Gudang to discuss the proposal. However, no agreement was reached between the parties concerned.
- Another meeting will be held next month as shippers had raised concerns earlier of the higher haulage costs likely to be incurred if they were to use PTP instead of Johor Port. “However, they (shippers) must look at the positive side – the increase (in cost) will be offset by the time saved through direct sailings out of PTP,” the sources said, adding that unlike PTP, Johor Port could only cater to smaller vessels. (BT)
Unicorn Investment Bank BSC may make three purchases, including buying a stake in Bank Islam Malaysia from Dubai Group LLC, as the financial crisis lowers corporate valuations. "We understand Dubai Group is accessing its own options with regard to that investment," managing director of Unicorn's strategic mergers and acquisitions, Fred Stonehouse said.
- "We feel we know the Malaysian market well and it's a well developed Islamic market so any opportunities that becomes available for a major stake, will be taken". Unicorn plans to use its strategic acquisitions fund and money from co-investors and shareholders to finance purchases, which may include a minority stake in a Bahrain-based Islamic institution and controlling sake in Gulf based asset management firm, Stonehouse said. (Bloomberg)
DNP Holdings, will launch its most expensive residential project dubbed "Le Nouvel", worth an estimated RM1bn, in Kuala Lumpur by end-2010 or early 2011, says GM Lee Kong Beng. Le Nouvel comprises two residential towers with 43 and 49 floors respectively, offering a total of 197 condominium units ranging from 1,800-4,700sf.
- The towers will be built near Avenue K on Jalan Ampang. "We have the approvals to do the project, but the current market conditions are unfavourable to a launch. A better timing would be a year from now," says Lee.
- DNP may sell the buildings enbloc if it receives good offers. DNP's immediate focus is to launch 25 units of luxury condominiums in a five-storey block along Jalan U-Thant, Kuala Lumpur, for some RM200m, in 3-6 months from now. DNP will also launch Block B and D of Verticas Residences in Bukit Ceylon, Kuala Lumpur, pending sales of Block A. (BT)
Faber Group has won an AED154m (RM142m) contract to maintain and upgrade facilities and projects at Madinat Zayed – Zone-1 in the Emirate of Abu Dhabi. The work was awarded by the Department of Municipal Affairs for the Western Region Municipality, Faber said. The annual contract, which can be extended for another three years, comes with certain conditions like a bank guarantee and the submission of insurance documents. (BT)
The four-year court battle between KSL Holdings and Danaharta Hartanah Sdn Bhd over parcels of land measuring 1,516 acres that are currently under companies owned by Tan Sri Syed Mokhtar Albukhary ended yesterday with the Federal Court shutting the final door on the Johor-based property developer. The Federal Court also disallowed the company from appealing in the matter. (Financial Daily)
TA Global is looking at more than just hospitality projects in Canada and Australia. “If we decide to do something, future projects in those countries would most likely take the form of JVs,” TA Enterprise’s MD and CEO Datin Alicia Tiah said. (Financial Daily)
KPJ Healthcare expects revenue to hit a record RM2bn in 2012 with more hospital openings. Its chairman Tan Sri Muhammad Ali Hashim said the group is confident of achieving the target based on the favourable performance of the Johor Corp Group and other business strategies including the opening of more hospitals.
- "We now have 19 hospitals nationwide and are in the process of identifying locations for new hospitals," he said. Under the expansion plan, KPJ Healthcare is looking at either acquiring existing private hospitals or building new hospitals. (BT)
Supportive International Holdings has signed a strategic cooperation agreement with Digital China Advanced Systems Services Ltd. The deal entails commissioning Digital China to provide technical advisory service in relation to the Value Added Operations Project in Hunan province Chang De municipal in China. Supportive International Holdings will pay 2m yuan to Digital China for its technical advisory services. (BT)
