20091230 1816 FCPO EOD Daily Chart Study.

FCPO closed : 2595, changed : + 5 points, volume : Lower.
Bollinger band reading : Bullish but side way range bound likely.
MACD Histrogram : continue higher, buyer has yet to leave.
Support : 2555, middle Bollinger band level.
Resistant : 2630 level.
Comment :
Profit taking activities continue to take place today with lower volume changed hand. Chart still show that the uptrend market remained intact with some temporary side way range bound likely.
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.

20091230 1725 FKLI EOD Daily Chart Study.

FKLI closed(spot month) : 1270, changed : -8 points, volume : slightly lower.

Bollinger band reading : bullish but side way ranging likely.

MACD Histrogram : turned lower, long position profit taking.

Support : middle Bollinger band, 1256 level.

Resistant : 1279.5 level.

Comment :

Indeed a pullback effect due to overbought condition. Long position profit taking. Expecting market to trade side way ranging with possible further downside correction. 

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

20091230 1254 FKLI Mid Day Hourly Chart Study.

FKLI(Jan 2010) closed : 1273, changed : -3 points, volume : High.
Bollinger band reading : bearish with possible side ways.
MACD Histrogram : dropping slowly, seller in charge.
Support : 1270.5, 1266.5 level.
Resistant : 1276, 1279.5 level.
Comment :
Hourly chart, trend still up. Side way range bound likely to continue. Regional market traded mixed.

20091230 1238 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2590, changed : unchanged, volume : Lower.
Bollinger band reading : neutral, side way range bound.
MACD Histrogram : dropping slowly, both buyer and seller in holiday mood.
Support : 2570, 2555 level.
Resistant : 2630 level.
Comment :
Nor here nor there, low volume, hoilday mood market today. Hourly chart wise, market likely to stay side way range bound with some
downside biased. 

20091230 1028 Malaysia Corporate News.

Malaysia’s CPO prices are expected to stabilise at RM2,300-RM2,700/MT next year, supported by steady global demand, lower supply and new advances in oleochemicals research. MPOB chairman Datuk Sabri Ahmad said 2010 will be a good year for CPO prices as output is not expected to be as good as this year due to tree stress, pricey fertiliser as well as robust demand from the US. Palm oil production is expected to touch 17m-17.5m MT this year compared with 17m MT last year. (BT)

The board of EON Capital is expected to meet tomorrow to decide if it wants to be engaged in a takeover talk with Hong Leong Bank (HLB), sources said. EON Cap's seven-member board must now decide because it will also need the central bank's approval if it wants to talk to HLB, industry sources said. Primus, EON Cap’s major shareholder with a 20% stake, can potentially block the deal by voting against the decision to discuss with HLB. Yet, sources said the Hong Kong-based fund may have to let HLB present its offer and allow shareholders to decide. (BT)

Primus Pacific Partners Ltd, the major shareholder of EON Capital (EON Cap), is said to have made a last minute attempt to mount a counter bid to Hong Leong Bank’s proposed  takeover. However, sources indicated that Primus’ invitation to Temasek Holdings was not likely to materialise as Temasek had declined the offer for a joint bid. Temasek is widely known to be deliberate and not ad-hoc in its decisions. It already has a 29.3% stake in the Alliance Bank and may want to tread carefully if it wants to enlarge that footprint. (Starbiz)

CIMB Islamic Bank has listed a RM2bn Islamic bond programme on Bursa Malaysia to promote the growth of Islamic finance in the country. This makes it the first ringgit sukuk to be listed on the local bourse. "The listing of our Islamic sub-debt on Bursa further strengthens our commitment to the development of the Islamic finance industry, in this case, the Islamic debt capital market," CIMB Islamic CEO Badlisyah Abdul Ghani said. 

• Bursa registered its first sukuk listings by Petroliam Nasional and Cagamas MBS in Aug this year, followed by GE Capital's US$500m (RM1.7bn) sukuk listing in Nov. (BT)

DRB-Hicom and General Motors have mutually agreed to discontinue their two-year-old joint venture to import and distribute Chevrolet vehicles in Malaysia, effective 1 Jan next year. No reasons were given for ending the partnership. (BT)

Perodua is confident that its car sales will not be affected following the implementation of the Asean Free Trade Area (Afta) in Jan. Its MD Datuk Syed Hafiz Syed Abu Bakar said based on the present situation, orders for its latest model, the Alza, have reached 15,000 units this month. "More than 50% of Malaysians have an income of less than RM3,000 monthly. Even with the implementation of the Afta, I do not expect the price of a foreign car to fall, as its manufacturing cost is increasing. Apart from that, local cars are still able to fulfill local consumers' preference," he said. (Bernama)

Linear Corp has won a RM1.7bn project from Global Investment Group Inc of Seychelles to build a district cooling plant in Manjung, Perak for the King Dome project. Linear will start work on the project 24 months from the approval of the development plan by the Manjung District Council. (BT)

Green Packet has fixed the issue price of its proposed private placement of 59.75m shares at RM1.15 per share. The issue price represented a discount of 5.57% to the weighted average market price of RM1.2178 from 21 Dec to 28 Dec. (Financial Daily)

Parkson’s six department stores in Vietnam posted the fastest sales growth this year, jumping 30% compared with 10% in China and 15% in Malaysia, the Saigon Times Daily reported. Parkson plans to open three more department stores in Vietnam next year. (Bloomberg, Financial Daily)

Ta Ann Holdings’ unit, Multi Maximum, will buy plantation firm Europalm for RM20.5m. Europalm owns 1,500ha of plantation land at Jemoreng Land, Sarawak, and has been awarded another 1,113ha at Seredeng Land. (BT)

Handal Resources has bagged a RM17.5m contract from Petronas Lubricants International for the engineering, procurement, construction and commissioning of 22 new storage tanks for the Malacca lube blending plant capacity improvement project. Work will start in early Jan 10 for 14 months. (BT)

YNH Property plans to launch two luxury projects, Fraser Residence in Jalan Sultan Ismail and Kiara 163 in Mont'Kiara, which are worth a combined RM1.6bn, next year. Its head of corporate services, Daniel Chan, said the company was optimistic of good response, given the product offering and location. (BT)

Hiap Teck Venture has entered into a share sale agreement with Datuk Law Tien Seng, Lau Chin An and Lee Ching Kion for the proposed acquisition of a 55% stake in Eastern  Steel for RM110m. The purchase is to be funded via internally generated funds. The proposed acquisition will enable Hiap Teck to become an integrated player in both upstream and downstream operations in the local steel industry. (Bernama)

Technodex, a software developer, plans to move its shares to the Main Market next year to woo more investors. MD and CEO Nigel Lee Siew Tat said Technodex is in the midst of processing the application. "This would also enable us to attract bigger market players and help us raise more funds. It is a normal thing to do for such growing companies," he said. Technodex aims to register a 20% increase in revenue and profit for FYE6/10, largely to be driven by its online business community. (BT)

Majuperak Holdings has sold several parcels of industrial land and buildings in Penang to Alliance Contract Manufacturing for RM13m cash to pare debt and pay retrenchment benefits. (BT)

Seacera Tiles has proposed a private placement of up to 5.3m shares representing 10% of its existing paid-up capital. (Financial Daily)

Pan Malaysia Capital’s failed bid to convert its universal broker (UB) status to a standalone investment bank (IB) was due to the firm’s failure to comply with the prerequisite conditions outlined under the stockbroking consolidation plan introduced almost four years ago. A source said the only route now for stockbrokers to become an IB is to acquire an existing IB status player. (Starbiz)

Ho Hup Construction had instructed an independent firm to conduct a valuation of the parcels of land it planned to dispose. It said the market value for the first plot of land in Balakong was valued at RM30 psf while the parcel of land at Bukit Jalil was valued at RM50 psf. With the disposal of the lands, Ho Hup is expected to realise an estimated gain of RM9m. It was reported that there was a growing rift between the company’s management and a major shareholder over the valuation of the two plots of land. (Starbiz)

20091229 1819 FCPO EOD Daily Chart Study.

FCPO closed : 2590, changed : - 2 points, volume : Lower.
Bollinger band reading : Still bullish but not promising.
MACD Histrogram : continue higher, buyer has yet to leave.
Support : 2555, middle Bollinger band level.
Resistant : 2630 level.
Comment :
Profit taking activities push FCPO price lower after open gap up around the resistant level. Daily chart still look positive but profit taking may continue towards tomorrow and stay side way range bound. 
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.

20091229 1736 FKLI EOD Daily Chart Study.

FKLI closed : 1278, changed : +4 points, volume : Lower.
Bollinger band reading : Still bullish with a little overbought.
MACD Histrogram : Continue higher, buyer still in.
Support : 1270, middle Bollinger band.
Resistant : 1283 level.
Comment :
Spot month FKLI candle closed a little above the upper Bollinger band suggest that market could be in overbought condition with possible pullback effect happen anytime. Market could trade side way range bound from here for FKLI spot month. Looking at the volume transacted, trader might consider trading Jan 2010 contract that registering higher volume.
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.

20091229 1345 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1276, changed : +2 points, volume : low.
Bollinger band reading : still bullish.
MACD Histrogram : getting weaker, buyer locking in profit.
Support : 1271, middle Bollinger band level.
Resistant : 1280, 1286 level.
Comment :
Expecting market to trade side way range bound with profit taking activities to continue in the second half session.

20091229 1333 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2611, changed : +19 points, volume : low.
Bollinger band reading : bullish but could go side way range bound.
MACD Histrogram : getting lower slowly, mild profit taking.
Support : 2606, 2590, 2560 level.
Resistant : 2630, 2670 level.
Comment :
Higher overnight soy oil futures price lead crude palm oils futures price to gap up to the resistant level followed by profit taking activities. Chart wise, FCPO might need some rest by going side way range bound or even downward(continue profit taking) before gathering enough strength to climb up further.

20091229 1111 Malaysia Corporate News.

The Association of Banks in Malaysia (ABM) said that banks and other card issuers would collect the service tax from cardholders and pay the sum to the Director-General of Customs and Excise. The service tax becomes chargeable on the anniversary date of issue, or upon renewal of the card. The service tax will not be imposed on debit cards, petrol cards, closed-community charge cards, loyalty cards and E-money such as Touch 'n Go. Banks and other card issuers are allowed to enter into arrangements under which cardholders may apply for redemption/reward points or rebates towards payment of the service tax. (BT)

Gamuda is not ruling out the possibility of cost increases caused by delays related to land acquisitions for the electrified double-tracking project (EDTP) although it is not planning any cost revision at the moment. Group MD Datuk Lin Yun Ling, however, expressed optimism that such complications will be resolved soon with the remaining land in Penang scheduled to be handed over in the coming months. “With the extension of time, the new completion date has been pushed to 2014,” he said. (Financial Daily)

Malaysia is getting closer to reaching its 50% target of broadband penetration rate by 2010 in the domestic sector, having reached 31.4%, surpassing the 30% target set for this year. Minister of Information, Communications, Culture and Arts Datuk Seri Dr Rais Yatim said, “I am confident that the 50% target by end-10 will be an easy reach. Indeed, we might surpass the expectation.” (Bernama)

Celcom (Malaysia) has changed its name to "Celcom Axiata". The name change is in line with the Axiata Group’s branding strategy to fully leverage Celcom’s position as part of a regional telco. This is also in line with other Axiata subsidiaries. (BT)

Palm oil climbed for a second day after a gain in crude oil increased the appeal of the tropical commodity as an alternative fuel. The price “most probably will maintain its current level for this week,” Mona Surya, a director at PT Perkebunan Minanga Ogan, a palm oil producer, said. (Bloomberg, Financial Daily)

The acceptance rate from the total voting shares for the takeover of The News Straits Times Press (M) (NSTP) by Media Prima has passed 79% and the delisting of the former will proceed. "We want to encourage the swap of NSTP shares for Media Prima shares," Media Prima group MD Datuk Amrin Awaluddin. The delisting process would hopefully be completed by 1Q10, Amrin said. (StarBiz)

Astro’s subsidiary, Digital Five, has secured an RM8.9m contract for the supply and licensing of a content provider gateway software system to Saudi Bells Telecom Company LLC (SBC). It will build and develop the system within the Middle East and North of Africa territories. (Bernama)

Malaysia Airports Holdings, which operates the KL International Airport (KLIA), reported a 16.7% increase yoy in international and domestic passenger traffic in Oct for the country's main international airport. Data provided by MAHB showed 18.8% surge yoy to 1.76m international passengers for KLIA for Oct while the domestic passengers was up by 12.6% to 848,656. The company said there was a total 15.7% increase in passenger traffic to 4.48m for other airports operated in Malaysia and abroad for the month under review. It added that the total cargo movement for KLIA increased by 11.1% to 57.53m kg with international cargo increasing by 10.7% to 52.65m kg while domestic cargo rose 15.9% to 4.87m kg. (StarBiz)

AirAsia has incorporated a wholly-owned subsidiary know as Asia Air Ltd for the purpose of facilitating the airline's business transactions. The airline said it has also opened an office in London at 41, Chalton Street. (Starbiz)

The Health Ministry's move to impose a minimum price for cigarettes from 1 Jan is expected to lead to an increase in the smuggling of cheap cigarettes, which this year amounted to RM55.4m. Customs director-general Datuk Seri Ibrahim Jaapar said directors from all customs branches are discussing "strategic steps" to enforce the new decisions, which include monitoring of small retailers for illegal cigarettes. (The Sun)

No-smoking may be made a condition for youth and students to receive aid from the government. Youth and Sports Minister Datul Ahmad Shabery Cheek said the proposal was raised as many people, including youths and students, could still afford to buy cigarettes despite several price hikes. (Bernama, The Sun)

Malaysia Rating Corp (MARC) has revised WCT's bond ratings outlook to "developing" from "negative" as concerns regarding the latter's ability to weather the setback from a cancelled project decreased. 

• MARC said that WCT has written back all of its profits in relation to the terminated Nad-Al Sheba race-course project and has settled its performance security deposits of RM218.6m.
• The company has shown it could replenish its order book, which now stood at RM3.3bn.(Starbiz) 

General insurer Tahan Insurance Malaysia, currently under Bank Negara Malaysia's control, will call for bids through an open tender for its entire business in the first week of Jan 10. Phoon Soon Keong, a Bank Negara appointee now heading the insurer said, "We expect to take about four weeks (for the open tender process) and will then evaluate (the offers). Within another four weeks, we should be able to start negotiating with the selected parties." This sale exercise will be structured as an asset sale as opposed to a share sale, with Tahan eventually becoming a dormant company holding the proceeds from the sale of its general insurance business. Phoon expressed hopes that the exercise would be completed by Jun 10, adding that Bank Negara would decide on the final buyer. (BT)

Pertamina has lost its exclusive right to distribute subsidised oil products in 2010 after Petronas and a local firm PT Aneka Kimia Raya (AKR) won supply tenders. Petronas has won the right to distribute 128,547 barrels of subsidised low-octane petrol in Medan next year. AKR will also distribute 335,328 barrels of subsidised diesel oil in Lampung, Banjarmasin and Pontianak. (Reuters)

Octagon Consolidated has teamed up with Bahrain-based Tadhamon Capital BSC to construct and operate a 40MW waste-to-energy plant in Colombo, Sri Lanka. Under the agreement, Tadhamon and Octagon’s subsidiary, Green Energy and Technology, will hold 95% and 5% respectively of the new SPV with a paid-up capital of US$100. (Financial Daily)

Integrax’s subsidiary PT Indoexchange Tbk (INDX) plans to raise funds through the Indonesian capital market in the immediate future and has submitted a proposed quasireorganisation scheme to the relevant Indonesian authorities last week. To date, Integrax holds 70.3% of the issued and paid-up capital of INDX. (Bernama)

Crest Builder Holdings’s subsidiary, Crest Builder Sdn Bhd, has won a RM175.5m job to build two towers of 40-storey serviced apartments in Kuala Lumpur. The job is to be completed by 1 Jan 12. The subsidiary won the contract from Messrs Exceljade Sdn Bhd.(BT)

Pan Malaysia Capital, a member of MUI group controlled by tycoon Tan Sri Khoo Kay Peng, announced yesterday that the Ministry of Finance has “refused” to grant its subsidiary, PM Securities, a merchant banking licence or a restricted merchant banking licence. No reason for the rejection was disclosed. Obtaining an investment banking licence was said to be one of the major steps towards bringing back the glory days of the MUI group. (Financial Daily)

KPJ Healthcare’s shares will be suspended from 4 Jan 10 to facilitate the implementation of its 1-for-2 share split exercise. (Financial Daily)

20091228 1833 Malaysia Corporate News.

Sapura Crest unit gets RM1.5bn worth of PSC jobs
SapuraCrest Petroleum Bhd’s wholly-owned subsidiary, TLO Offshore Sdn Bhd, has received confirmation that it has been awarded a joint-contract for the provision of works and services to 11 Petronas production sharing contractors (PSCs) for the transportation and installation of offshore oil and gas facilities and structures from 2010 to 2012. “The price for the confirmed scope of works in 2010 is approximately RM1.5bn. Sapuracrest said the works for the PSCs were for a duration of three years, from 2010 to 2012, with options for two further extensions of one year each. (Starbiz)

Mah Sing to sell office building for RM226m
Mah Sing Group Bhd has proposed the en bloc sale of 278,182 sq ft of a 20-storey grade A commercial building, including 301 car park bays in the east wing of the Icon@Tun Razak, to T.S. Law Realty Sdn Bhd for RM226.5m cash. In a filing with Bursa Malaysia last Thursday, Mah Sing said the Icon@Tun Razak was a freehold purpose-built office building by owned its subsidiary, Star Residence Sdn Bhd. “The group pursued the proposed en bloc sale to ensure that it will be able to maintain its earnings, net assets and cashflow. “And Star Residence offers to take up the tenancy of the Icon@Tun Razak for a period of three years commencing from the actual vacant possession date, which shall correspond with the date of the sales and purchase agreement. “Star Residence intends to lease the sale property for rental income in order to offset rental payable to the purchaser,” it said. With the proposed en bloc sale, the Icon @ Tun Razak is fully sold. (Starbiz)

Petra Perdana exec director seeking to stop sale of balance stake in Petra Energy
Petra Perdana Bhd has received an interim ex-parte order by the High Court of Malaya fixing an inter-parte hearing on 11 Jan, 2010 on the application of Shamsul Saad to stop the sale of the remaining 29.59% stake in its associate, Petra Energy Bhd. In a statement to Bursa Malaysia last Thursday, Petra Perdana said the order had named the company, Tengku Datuk Ibrahim Petra Tengku Indra Petra, his wife Datin Che Nariza Hashim, two other board directors Wong Fook Heng and Tiong Young Kong and TA Securities Holdings Bhd as defendants. The order is to restrain Petra Perdana, Tengku Ibrahim, Nariza, Wong, Tiong and any agents appointed by Petra Perdana as placement agent, from divesting the remaining shares in Petra Energy until an EGM or the final disposal of the suit is held, whichever is earlier. Petra Perdana is now awaiting further details of the suit and is seeking legal advice pending further announcements. (Starbiz)

EPF may back Hong Leong’s EON bid
The Employees Provident Fund (EPF) may back a deal to merge the country’s sixth and seventh biggest banking groups if it thinks the price offered is attractive. The pension fund holds 10.7% of EON Capital Bhd (EONCap), which is being eyed for a takeover by Hong Leong Bank Bhd. “If the price is right we will consider selling” said a source close to the EPF. (BT)

Ho Hup major shareholder opposes sale
Ho Hup Construction Bhd’s second largest shareholder Lo Chee & Sons Sdn Bhd (LCS) is opposing the board’s proposed sale of two tracts of land. LCS which holds 24.7% equity stake, put up a notice to Ho Hup’s shareholders in two major newspapers urging shareholders not to support the sale, contending that the disposal price is “significantly undervalued”. The notice was published last Friday before the EGM slated to be held on Thursday during which shareholders will cast their votes on the resolution. (Financial Daily)

Hock Heng plans overseas factory
Hock Heng Stone Industries Bhd, a maker of dimension stones that is slated for a listing next year, plans to set up a factory abroad as it seeks to expand business. Low, who started the family business, could not divulge details because the company has yet to release its prospectus. It targets to complete its IPO and list shares on the Main Market by the end of March 2010.(BT)

CB Industrial refutes allegations, demands apology
CB Industrial Product Holding Bhd (CBIP) said it is at risk of losing hundreds of millions of ringgit in future jobs, due to a published report by a Chinese daily that suggests it was involved in some form of corruption. In a hastily arranged press conference in Shah Alam, CBIP managing director Lim Chai Beng said, "The truth must be told soonest possible. We need to stop the damage (to the company). "CBIP, via its subsidiary Modipalm Engineering Sdn Bhd (MESB), has demanded a retraction of the defamatory and highly damaging allegation in the said article and a full-page apology to be published by tomorrow.’’ He refuted allegations in the news reports that insinuate that its Modipalm mills are of inferior quality. According to a translation sheet provided by CBIP, the daily quoted 1Malaysia Graduates Club secretary Ezaruddin Abd Rahman as alleging there was corruption involved in Felda awarding jobs to MESB to build 11mills worth a combined RM160m. (BT)

20091228 1811 FCPO EOD Daily Chart Study.

FCPO closed : 2592, changed : +38points, volume : Higher.
Bollinger band reading : Sentiment turned slightly positive.
MACD Histrogram : recovering, buyer returned but at a small scale.
Support : 2555, middle Bollinger band level.
Resistant : upper Bollinger band, 2630 level.
Comment :
FCPO managed to trade higher despite relatively low volume transacted last Thursday and today. Daily chart wise, FCPO still trading in an uptrend market but a little doubt here about the upward momentum sustainability will be the low volume transacted. Hope that fresh buying interest will come in soon. On the other hand, both ITS and SGS cargo survey recorded a drop of 11.4% and 14.5% in crude palm oil export for the period of 1~25 Dec 2009 respectively.
When to buy : buy at support/weakness/break up with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.