20091203 1815 FCPO EOD Daily Chart Study.

FCPO continue its correction market by ended today at 2478, 11 points lower with even lower volume traded. All indicators reading still signaling a side way range bound market that trade within the plotted horizontal support and resistant line. Waiting for price to break away from these 2 lines for new direction. Expecting a boring Friday market tomorrow. =(
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. 

20091203 1736 FKLI EOD Daily Chart Study.

A ping pong daily chart for FKLI that registered a lower closed at 1267.5 down 5.5 points after market closed higher yesterday. Today black candle penetrated the middle Bollinger with the band width turned even tighter = market continue to trade side way range bound. MACD Histrogram stayed nearly flat = no significant action by both buyer and seller. Overall market should still be trading within the upper and lower Bollinger band until the band width turned outward with price trading near either the upper or lower band for its future direction.
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.

20091203 1722 Dow EOD Daily Chart Study.

DJIA tested another high of the year at 10513.52 but failed to sustain and retreated by down -18.90 points to closed at 10452.68. Looking at the daily chart, although price closed near the upper Bollinger band but the Dow seems trapped inside the Bollinger band width that getting tighter and tigher = range trading with upside biased movement. MACD Histrogram reading just slightly lower compare to yesterday = both buyer and seller are operating cautionsly. A break up and closed stay above the 10503 resistant line would be ideal in order for market to reach further upside or else should Bollinger band continue to turn inward, side way ranging market to continue.  

20091203 1319 FKLI Mid Day Hourly Chart Study.

FKLI closed 4 points lower at 1269 after market gap up, hit the high at 1275.5 but failed to sustained the upward movement. Hourly chart wise, price dropped below the middle Bollinger band with the band width turned narrowing = side way market likely to continue. MACD Historgram getting lower below the zero line level = morning session volume dominated by seller activities. More downside movement could be seen should MACD Histrogram continue to drop lower with the Bollinger band width started to turn outward, else the side way range bound market is likely to continue.

20091203 1255 FCPO Mid Day Hourly Chart Study.

Side way ranging market continue to haunt FCPO that traded 1 day up 1 day down ended the first session today down 6 points to closed at 2483 with thin volume transacted. All indicators in the chart calling a different view illustrated the indecisive of both buyer and seller to press their button to go a head with their activities.

20091203 1234 Malaysia Corporate News.

It's a misconception that Petronas is granting large subsidies to IPPs. Energy, Green Technology and Water Minister Datuk Peter Chin said the government had stipulated that Petronas cannot sell gas beyond the market price to IPPs and Tenaga in order to ensure electricity tariffs in the country remained low. Chin said the government would not allow Tenaga to pass the entire cost of spiralling fuel prices to consumers as practised by neighbouring Singapore and Thailand.

• On PPA reviews, he said negotiations were on-going to formulate a supplementary agreement for existing PPAs, led by the Private-Public Cooperation Unit under the Economic Planning Unit.
• Chin also said there were no plans to increase the number of IPPs and by 2015, the energy reserves would reduce to 25%. (Bernama)
  

The minister’s statement on not allowing Tenaga to pass on the entire cost of spiralling fuel prices seemed to imply that the government is not keen on the implementation of a transparent fuel cost pass-through formula. While such a stance appears negative for Tenaga, we take some comfort in the government’s earlier commitment to review tariffs once in every six months to allow rates to move in tandem with international coal and gas prices.

WCT has received a LOA from Malaysia Airports to undertake the earthworks for the new low-cost carrier terminal. The RM363m project is scheduled to be completed in 12 months. WCT will undertake the entire scope of works which involves site preparation, earthworks and main drainage for the terminal building and apron. (BMSB)

The due diligence exercise on Selangor’s water assets has been completed and a fresh offer by Pengurusan Aset Air Bhd (PAAB) is expected to be made next week, its CEO Ahmad Faizal said. The offer was “just the first step” towards negotiations, he added. Without revealing details, he said the offer would be “somewhat similar” to what the Selangor government had previously offered for the assets. The Selangor government’s last offer had valued all the state’s water-related assets at about RM9.2bn. (Star)
The timing of PAAB's fresh offers is a positive surprise. Indications that the offers would be somewhat similar to Selangor government's proposals are consistent with our expectations and should be viewed positively by Konsortium Abass and Splash. This also means that the offers for Syabas and PNSB would include the O&M contract which is positive and would translate to better valuations.

Indonesia and Malaysia, the world's largest palm oil producers, may experience slower output growth next year due to resurgent El Nino weather conditions, said Dorab Mistry, head of vegetable oils trading with Godrej International. Drier weather from El Nino may hit yields, leading to tight palm oil supplies just as US and South American soyaoil from a record soya harvest enter markets from May, Mistry added. (Reuters, BT)

Proton's talks with a global original equipment manufacturer (OEM) for a strategic alliance are underway and the national car maker is confident of clinching a deal soon, MD Datuk Syed Zainal Abidin Syed Mohamed Tahir said. Syed Zainal Abidin said once the specific collaboration with the global OEM was announced, he was confident it would bring better future for Proton not only in the Malaysian market, but also other markets where Proton was already in or going to enter. He, however, declined to identify the OEM involved or whether German auto giant, Volkswagen, was the company Proton was talking to. (Bernama)

Proton will start mass production of a fuel-efficient hybrid car by early 2011 to beat rising costs and address environmental concerns. 

• MD Datuk Syed Zainal Abidin Syed Mohamed Tahir said Proton will collaborate with a few companies, including UK unit Lotus Cars, to produce the vehicles.
• Syed Zainal Abidin added that Proton was producing the Exora hybrid version in the UKfor testing and research. It will take delivery of the first car by month-end or early next year. "This is the first phase. The second phase will involve producing up to 60 units for the Malaysian government to use in Putrajaya. If that is successful, we will then enter the next phase for mass production," he said.
• Besides the Exora, the hybrid car will include its other models: Persona and Saga 1.3.
  

On the investment to produce a hybrid car, he said that cost would be manageable. (BT)

German car manufacturers are willing to cooperate and impart their knowledge, expertise, experience and skills they had acquired over the years, but it must also be worthwhile for the companies, says German Ambassador to Malaysia Dr Gunter Gruber. 

• Explaining why Proton should tie up with a German company, he said: "They must have a competent and aggressive partner to survive in the highly competitive and challenging automobile industry. I don't have precise information, but I see the automobile industry is currently at a crucial stage in the industry's history. The financial implication and latest prices are also not helping the car industry," he said.
• Proton is currently negotiating with a global Original Equipment Manufacturer (OEM) for a strategic alliance partnership and is confident of clinching a deal soon. (Bernama)

The partnership between DRB-HICOM and Suzuki Motor Corp of Japan remains strong, said DRB-HICOM's group director (Automotive) Datuk Nik Hamdan Nik Hassan. Commenting on a recent news report that the group is facing problems with Suzuki Motor, Nik Hamdan said their relationship has only grown stronger over the years since they established their alliance in 2005. "The group considers the article as baseless and untrue. The report is also damaging us because it is disturbing our principal partner," he said. The group is looking to renew another five years exclusive distributorship deal with Audi, Nik Hamdan said, adding that it will receive a letter of intent by end of this month. (Bernama)

Mah Sing Group plans to develop an upscale condominium worth RM280m at Pykett Avenue in George Town. The group is in the process of buying the 1.37ha prime freehold land from owner Khaw Bian Cheng Sdn Bhd for RM38.7m or RM262.19 psf. At present, there is a dilapidated unoccupied small bungalow on the site. The transaction is expected to be completed in FY10. (BT)

Mah Sing Group said it will partner Chinese counterpart Danlong Realty (Beijing) Co Ltd to develop a US$620m (RM2.1bn) mixed property development project in Wujin, China. This will be its maiden property venture in China. Mah Sing said the Wujin government has also given the 51:49 JV the opportunity to explore two additional plots of land. (BT)

The managers of 11 Malaysian REITs have teamed up to set up the Malaysian REIT Managers Association (M-REITMA), allowing players in the sector to work closer with the authorities to grow the industry. (BT)

AirAsia will increase its KL–Hong Kong flights to three flights daily, from two flights currently, from 21 Jan 10. Kathleen Tan, Regional Head of Commercial said: “The response has been extremely good for this route and we are running at an average of 75% load factor on the KL-HK flights since its launch on 15 May 08. Short after the first launch, we added the second daily flight in Aug 08. AirAsia also flies to HK from Penang (4 flights weekly) as well as the Thai cities of Bangkok (two flights daily) and Phuket (one flight daily). (AirAsia press release)

MAS Aerospace Engineering Sdn Bhd (MAE), a wholly owned subsidiary of Malaysia Airlines sealed 2 Memorandum of Understanding (MoUs), one with Pratt & Whitney (PW), and another with KRAUSS GmbH Aviation Technologies, in its pursuit to be at the forefront of new aircraft technology. The MoU with PW will see both parties exploring possibilities of setting up a JV company for nacelle and composite repair and overhaul. The MoU with KRAUSS is aimed at providing parts repair for engines, landing gears and airframe. Malaysia aims to capture 5% of the global aviation MRO market by 2015. (MAS press release)

Green Packet has secured a RM41.5m contract from the government to provide broadband to underserved areas in Malaysia. The universal service provision project tender from the Malaysian Communications and Multimedia Commission was to roll out broadband services using 4G WiMAX in Perak and Kedah. (Financial Daily)

Bernas plans to acquire a 75% stake in Bernas Logistics Sdn Bhd from MMC Corp’s Johor Port for RM11.76m. The proposed acquisition, which was part of its plan to expand and rationalise its operations in the logistics division, is expected to be completed by 1Q10. (Bernama)

Boustead Heavy Industries Corporation’s associate, Boustead Naval Shipyard Sdn Bhd, has secured a RM703.8m contract from the Ministry of Defence. The contract, for the service life extension programme of Kasturi Class Corvettes, has an implementation period of 53 months. (Bernama)

The 22-acre Legoland theme park under construction in Medini Iskandar here is expected to be ready by 2012, a year ahead of schedule, said Johor MB Datuk Abdul Ghani Othman. He said the theme park in Iskandar Malaysia would be the first in Asia, and the fifth in the world. (Bernama)

Jerneh Asia and Paramount Corp have received the central bank approval to start talks to sell their stake in Jerneh Insurance Bhd. Press reports highlighted last week that at least three foreign insurers - Italy's Assicurazioni Generali SpA, UK's HSBC group and South Korea's Samsung Fire and Marine Insurance - are believed to be making a bid for Jerneh Insurance. (BT)

20091202 1810 FCPO EOD Daily Chart Study.

FCPO traded weaker to closed 6 points lower at 2489 despite tested a higher high at 2510 and a higher low of 2480 compare to yesterday with lower volume changed hand. Bollinger band reading shows that the market remained biased to the upside movement. MACD Histrogram continue to slide lower = buyers demand remained weak at the current price. With price continue to trade within the 2428 ~ 2521 range, the side way range bound correction market is expected to continue. 
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.

20091202 1746 FKLI EOD Daily Chart Study.

FKLI closed 4.5 points higher at 1273 with lower volume traded.Today's doji bar candle managed to climbed and stayed above the middle Bollinger band = seems like market is still resilient and refused to step backward. Bollinger band width squeezing tighter = market to remained trading side way range bound. MACD Histrogram continue to recover mildly since yesterday = buyer outnumbers seller at a small margin. Expecting a ranging market ahead unless Bollinger band width start to turned expanding for any further upside.

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.

20091202 1639 DJIA EOD Daily Chart Study.

The Dow closed firmer up 126.74 at 10471.58 and managed to test another high of the year at 10501.30. Yesterday wide range up bar candle ended near the upper Bollinger band but with the band width still getting narrower = market upward movement could possibly face some resistant near this level unless the band width started to turn outward. MACD Histrogram reversed upward by a little = buyer confident towards the market restored. Seems like buyer has yet to get enough out of this uptrend movement.

20091202 1321 FKLI Mid Day Hourly Chart Study.

Regional market traded higher after confident restored due to the Dubai debts panic forced FKLI to opened gap up and traded mostly higher trough out the morning session ended 3.5 points higher to closed at 1272. Price hovering near the upper Bollinger band level with the band width expanding = Market  are likely to trade upward biased. However, the last MACD Histrogram recorded a lower reading = buying activities has yet to reach the optimum level. Broken up from the plotted downward channel with a new plotted upward trend line identified, the upward movement could sustain should more buying volume coming into the market or else market could still trade side way.

20091202 1301 FCPO Mid Day Hourly Chart Study.

FCPO traded 5 points lower to closed at 2490 after market opened lower, reaching the high at 2510 and retreated. Hourly chart, Bollinger band reading suggesting a side way range bound market. MACD Histrogram turned just slightly higher hints that only moderate buying activities participated in the market. Despite price broken up from the downward channel, market still trading within the plotted horizontal line range with immediate support at 2483 and resistant at 2521 level.

20091202 1041 Malaysia Corporate News.

Gamuda and Kumpulan Perangsang Selangor (KPS) announced that the Selangor state government has withdrawn its offer to buy the water assets of Splash and Konsortium Abass. The state government stated that it was unable to proceed with the offers due to disagreements on offer terms with Syabas and PNSB. (BT) 
This development ties in with recent newsflow indicating the Selangor state government’s unsuccessful attempt to take over and consolidate all water concessionaires in the state. The state government had given the Federal Government via PAAB the “greenlight” to proceed with their take over plans which started with the due diligence/asset verification that is expected to conclude soon. Though the lapsed offers by the state government to Abass and Splash is a slight disappointment and pours cold water on the excitement over the acquisition play in Selangor, we continue to believe that PAAB’s take over structure carries a greater chance of success as O&M agreements will be retained with the water operators. This would be a more attractive proposition to Puncak Niaga, who had rejected the state government’s previous two offers. New offers by PAAB are unlikely to be lower than the state government’s offers as they are likely to be rejected. Concession agreements (CA) gives legal grounds for concessionaires to realise the “full value” of their businesses in the event of an acquisition. PAAB’s could make its move earliest towards end-09 if not in 1Q2010.

The sale of cigarettes in packets of less than 20 sticks will be prohibited effective June 1 next year. Health Minister Datuk Seri Liow Tiong Lai said that in line with the decision, cigarette companies had been given seven months from now until May 31 next year to dispose off its stocks of cigarettes in packets of less than 20 sticks in the market. "The government will not entertain any appeal on this matter and the Health Ministry will enforce the ban fully on the manufacture and sale of cigarette packets containing less than 20 sticks beginning June 1, 2010," he said. He said the decision had been agreed upon by all the cigarette companies and the government was thankful for the support and cooperation rendered by these companies. Liow said that following the enforcement of the ban, anyone found guilty of violating the regulation was liable to a fine of not more than RM10,000 or imprisonment for a period of not more than two years. (Bernama)
The ban on the higher margin small packs is negative for tobacco players. But with a clear and definite June 1 timeline for the ban, tobacco players can now start making the necessary preparations. According to our preliminary estimates, the ban is likely to have a bigger impact on British American Tobacco (BAT) relative to JT International (JTI) given that BAT has a bigger exposure to small packs.

Speaking in an interview, Sheldon Adelson, chairman of Las Vegas Sands, said the company’s Singapore casino will open on schedule at end-1Q 2010, adding that “we’ll known better in about a month because we would have lifted all the components for the Sky Park”. On potential cannibalisation between Singapore and Macau, he said “We don’t believe in it. If there is, it will be so small, it won’t be a material consideration but you never know. It all depends on whether Genting Singapore does. We don’t want to steal business from Macau. We believe there’s plenty of business from that part of the world to get along without one person from Macau.” (Bloomberg, Financial Daily)

The Energy Commission (EC) will soon not only have a chairman but also a CEO, both of whom will be appointed by the Energy, Green Technology and Water Minister. The addition of a CEO’s post for the EC will come about once the bill is passed and amendments to the Energy Commission Act 2001 are enforced. The EC has yet to appoint a new chairman following the demise of Datuk Pian Sukro a month ago. According to sources, few names have been bandied but non has yet to be confirmed. (Starbiz)

One Taiwanese businessman, who had recently toured the states of Sarawak and Penang in a "private capacity", said "I believe Malaysia would be a good partner for Taiwan for cooperation in energy issues. The Malaysian Industrial Development Authority, which promotes investments to and from Malaysia, could look to foster closer cooperation with Taiwan whose energy-specialised companies are earmarking large sums for R&D to produce innovative technology for this sector. (Bernama)

Trading in Sarawak Energy's shares will be suspended on Dec 8 following the offeror’s acquisition of a 97.35% stake in the company as at yesterday. The offeror has no plans to maintain the listing status of the company. (Starbiz)

MMC Corp’s unit, Malakoff Corp is always looking for opportunities to expand and does not rule out potential M&As, said MD and CEO Ahmad Jauhari Yahya. But in considering its options, the key issue was ensuring operational competitiveness, he added. Jauhari strongly denied a recent news report that Malakoff was planning to buy a substantial stake in Jimah power plant. (Starbiz)

India’s armed forces will undertake a second round of vacation of 3G airwaves in Jun 10, the defence ministry has assured the Department of Telecom (DoT). In Oct 09, the armed forces had vacated 10 MHz, or two slots of 3G spectrum to be used for commercial telephony, and the defence ministry has now said an equivalent amount will be freed up in June-July 2010. The agreement by the defence forces implies that DoT will have additional 3G spectrum to conduct a second round auctions in late-2010, if the government decides to do so. Besides, DoT can also ensure that all that there will be four 3G operators in all the telecom circles. (Economic Times of India)

After more than doubling from 2,163 points in September to 4,661 points on 19 November, the Baltic Dry Index has been falling over the past two weeks with slower cargo activity and weaker sentiment taking their toll. The index closed at 3,836 points yesterday in an eighth straight session of falls. 

• Brokers said the weaker sentiment had been driven by less appetite to hire larger capesize vessels, which typically haul 150,000 tonne cargoes such as iron ore and coal, especially in Far Eastern markets.
• 'Given the strength in the steel markets, we expect the dry bulk market to avoid a drop all the way back to late summer levels, although it is evident that charterers have stepped back from the market for the near-term,' Dahlman Rose & Co said, referring to the capesize index. (Reuters)

AirAsia has paid Malaysia Airports (MAHB) RM111.6m in airport tax arrears up till September 2009. Deputy Transport Minister Datuk Abdul Rahim Bakri told Dewan Rakyat that AirAsia had owed MAHB RM132.1m but was given a RM25m discount for its effort in bringing tourists into the country. (Financial Daily)

From next week, travellers on Malaysia Airlines can book air tickets and check in using their mobile devices. Several global airlines, including AirAsia, Turkish Airlines, Finnair, Southwest Airlines and Ryanair, offer this service for the convenience of their travellers. The move to offer mobile booking and check-in is part of an ongoing effort by the airline to upgrade its passenger service system. It is investing RM480m over a 10-year period, beginning in 2006, for that and has engaged aviation IT specialist SITA for assistance.(Star)

Proton Holdings will export Exora to Australia and Middle East next year and launch its first model in India in 2011 as its aims for a 50% export of its total production within three years. Its MD, Datuk Syed Zainal Abidin Syed Mohamed Tahir, said Proton exported about 24%, or 26,000 cars, in financial year 2009/2010 and hoped to sell over 40,000 next year. On India, which he considered a strategic and important market, Syed Zainal said Proton was expected to announce its local partner early next year and the first car would roll out within a year. (Bernama)

Mah Sing Group has fixed the issue price of its proposed private placement at RM1.55/share, which represents a 10% discount to the VWAP of RM1.72. (Financial Daily) 

Salcon signed a cooperation agreement yesterday with the local government of Yizheng City in Jiangsu province, China on water and wastewater integration projects in the city and its neighbourhoods. Salcon said the water and wastewater works include planning, operation and maintenance, laying of pipe networks, management of wastewater and recycled water within the Yizheng City administrative area. Salcon said an agreement (JVA) had been signed by its wholly-owned Salcon Jiangsu (HK) Ltd and Yizheng City & Rural Water Co Ltd to incorporate a joint venture company know as Jiangsu Salcon Water Environment Development Co Ltd. (Financial Daily)

Kim Loong Resources plans to buy a 60% stake in Sarawak’s Tetangga Akrab Pelita (Pantu) Sdn Bhd for RM25m, to increase its land bank for oil palm plantation. The deal is expected to be completed by Jan-2010. (BT)