Thursday, June 10, 2010

20100610 1820 FCPO EOD Daily Chart Study.

FCPO closed : 2410, changed : -8 points, volume : lower.
Bollinger band reading : downside biased.
MACD Histrogram : continue lower, seller ruled.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
FCPO ended marginally lower in discouraging half volume transaction despite a positive export data released by 2 cargo surveyor. Daily chart shows that market tested below the crucial support level but failed to breached through the strong buyer defense line and the reading continue to suggest a downside biased market with possible pullback correction as lower shadow appeared on the last 2 daily candle bar.
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.

20100610 1800 FKLI EOD Daily Chart Study.

FKLI closed : 1294.5, changed : +8.5 points, volume : higher.
Bollinger band reading : side way downside biased.
MACD Histrogram : continue higher, buyer counter attack.
Support : 1290, 1280, 1274 level.
Resistant : 1300, 1310, 1318 level
Comment :
Break and stay above resistant level FKLI closed higher with improved volume changed hand after prime minister tabled the 10th Malaysia Plan today. Daily chart shows that today up bar candle managed to closed above the middle Bollinger band level and the reading suggesting a side way range bound market 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.

20100610 1548 Palm Oil News.

SGS : Export up 15.6 % @ 423,199 tonnes for the period 1~10 Jun 2010

Malaysia May palm stocks at 8-mth low, prices to rise
KUALA LUMPUR, June 10 (Reuters) - Malaysia's palm oil stocks dropped to an eighth-month low in May as foreign and local demand outpaced a recovery in production, data from an industry regulator showed on Thursday. The Malaysian Palm Oil Board said stocks in the world's No.2 palm oil producer fell 3.71 percent to 1.56 million tonnes, lower than market expectations for a 0.6 percent drop.

20100610 1442 China Economic News.

June 10 (Bloomberg) -
- China’s exports jumped the most in six years and property prices rose at a near-record pace, signs that the economy is withstanding the sovereign-debt crisis in Europe and remains at risk of overheating. The 48.5 percent gain in exports from a year earlier, announced by the customs bureau today, surpassed all 32 estimates in a Bloomberg News survey of economists. The trade surplus widened. Real-estate prices rose 12.4 percent across 70 cities, the statistics bureau said separately.

20100610 1251 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1296.5, changed : +10.5 points, volume : high.
Bollinger band reading : upside biased.
MACD Histrogram : rising higher, buyer returned for a battle.
Support : 1290, 1280, 1274 level.
Resistant : 1300, 1310, 1318 level
Comment :
Tabling of 10th Malaysia Plan plus positive China export news lift FKLI to higher ground with better volume transaction doing nearly 4 points premium compare to cash market. Hourly chart turned from side way range bound market into a upside bullish biased potential market reading with a little over extended that could possibly trigger a pullback correction.

20100610 1240 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2419, changed : +1 point, volume : low.
Bollinger band reading : downside biased.
MACD Histrogram : recovering, seller taking partial profit.
Support : 2400, 2370, 2350 level.
Resistant : 2450, 2470, 2500 level.
Comment :
Positive export data released by ITS (up 22.7% @ 435,148) didn't excite FCPO that closed only 1 tick higher in disappointing volume changed hand. However, hourly chart still suggesting a downside biased potential market development in the near term.

20100610 1155 Global Economic News.

Global : IMF says risks to economy have risen 'significantly' and policy makers have limited room to provide support to growth. Most advanced economies are experiencing a "subdued" recovery, IMF Deputy Managing Director Naoyuki Shinohara said. "A key concern is that the room for continued policy support has become much more limited and has, in some cases, been exhausted?. Policy makers are diverging on prescriptions for sustaining the global recovery, with U.S. Treasury Secretary Timothy F. Geithner calling on Japan and European countries with trade surpluses to boost domestic demand, while Europe?s representatives have said reining in budget deficits was the top priority. (Source: Bloomberg)

New Zealand: Raises rate for first time in three years
New Zealand’s central bank raised its benchmark interest rate for the first time in three years, signaling that faster inflation is a bigger threat to growth than further gains in the nation’s currency. “Underlying inflationary pressures are expected to increase,” Reserve Bank Governor Alan Bollard said in a statement released in Wellington after increasing the official cash rate to 2.75% from a record-low 2.5%. (Bloomberg)

China: May consumer prices rise 3.1%
China’s inflation rate, export growth and bank loans exceeded economists’ forecasts in May, Reuters reported, spurring an rally in stocks by showing no evidence Europe’s debt crisis is impairing the Chinese expansion. Consumer prices rose 3.1% from a year earlier, exports jumped about 50% and new loans totaled RMB630bn (USD92.3bn), Reuters reported. (Bloomberg)

South Korea: Plans steps to cut capital-flow volatility soon
South Korea will introduce measures to reduce volatility in capital flows and won’t raise interest rates without evidence of a sustainable economic recovery, Vice Finance Minister Yim Jong Yong said. The government will announce the steps “soon” to rein in currency-market volatility, while respecting the principles of an open capital market, Yim said in an interview at his office in Gwacheon. (Bloomberg)

Japan : Machinery orders climb more-than-estimated 4% MoM in April, signaling companies are preparing to spend again as the economy recovers and earnings rebound. Orders, an indicator of business investment in three to six months climbed for a second straight month. (Source: Bloomberg)

EU: Strauss-Kahn sees EU crisis contained, strong growth
The European debt crisis has been contained and the International Monetary Fund still expects global growth of about 4.2% this year, the institution’s managing director said. “We do believe the recovery is strong,” Dominique Strauss-Kahn said in an interview with Bloomberg HT television in Istanbul. While rising debt levels are a risk to growth, mainly in Europe, authorities in the region “are now really committed to solve it” and “the problem has been contained,” he said. (Bloomberg)

EU: Eurozone crisis could hit Asia, says IMF’s Shinohara
Europe’s debt crisis could disrupt global trade, hurting demand for Asian exports and sending “hot money” into the region if policymakers fail to act swiftly and appropriately, a top International Monetary Fund (IMF) official said. Although Asia has limited financial links to eurozone economies, its stronger growth prospects could attract more capital flows to the region and lead to asset bubbles, said IMF deputy managing director Naoyuki Shinohara. (Financial Daily)

U.K : Trade deficit fails to narrow in April as exports fall. The goods-trade gap was GBP 7.3b (USD 10.6b), the same as in March. Imports fell 0.4% MoM, while exports dropped 0.6% MoM. (Source: Bloomberg)

Brazil: Raises rate to 10.25% to slow fastest growth in 15 years
Brazilian policy makers raised their benchmark interest rate for a second straight meeting in a bid to bring inflation back to target amid forecasts the economy will expand this year at the fastest pace in decades. The eight-member board led by President Henrique Meirelles increased the Selic by 75 basis points to 10.25% from 9.50%, as expected by 50 of 52 analysts surveyed by Bloomberg. (Bloomberg)

US: Bernanke says Fed prepared to counter effects of EU Crisis
Fed Chairman Ben S. Bernanke said the US recovery, while being sustained by private demand, isn’t as strong as he prefers and faces risks from Europe’s debt crisis that may require further Fed action. US growth is “not as fast as we would like,” Bernanke told the House Budget Committee in testimony just hours before the Fed’s regional business survey said the economy expanded in all 12 Federal Reserve districts for the first time in more than two years, with a “modest” pace in many regions. (Bloomberg)

20100610 1154 Malaysia Corporate News.

Employees Provident Fund : EPF to publish top 30 stock investments online every quarter. Starting today, the EPF will publish its top 30 stock market investments every quarter on its website. The move is meant to improve corporate governance by enabling members to see in which companies their savings are being invested. (Source: Business Times)

Bursa, SC look into proposed Ascot buy
Both Bursa Malaysia and the Securities Commission will take appropriate action if there are elements of misrepresentation or other breaches of securities laws, the SC says. Bursa Malaysia will take the appropriate steps necessary to request Berjaya Corp to issue further clarification on its proposed acquisition of a 70% stake in Ascot Sports SB. In a statement yesterday, the Securities Commission (SC) said it was taking notes on comments raised in the media relating to the matter. Berjaya Corp had announced to Bursa Malaysia last month that Ascot Sports, a company controlled by tycoon Tan Sri Vincent Tan, had been granted a sports betting licence by the government. However, Prime Minister Datuk Seri Najib Razak said on Tuesday that the government had yet to do so. (BT)

Bursa : KL eyes entry into advanced segment of FTSE index series. Bursa Malaysia Bhd's chief  hopes Malaysia will be classified as an "advanced" emerging market in the FTSE Global Equity Index Series later this year. This would be an upgrade from its current status as a "secondary" emerging market, a segment which puts it together with 15 other emerging markets. (Source: Business Times)

Hovid to plant oil palms in Columbia
Pharmaceutical company Hovid, via subsidiary Agrovid SA, plans to invest RM3m over five years to plant oil palms in Columbia. "We ventured into Columbia to sell drugs - the legal ones," Hovid managing director David Ho told Business Times in a telephone. Over the years, three successive Colombian ambassadors to Malaysia have persistently presented investment opportunities in Colombia's agriculture to Hovid. Hovid bought two parcels of agriculture land measuring 3,299ha in Alto Manacacias, Puerto Gaitan, for RM3.6m from a local, named Cecilia Rosas De Bustos. (BT)

Genting New York in bid for racino project
Genting New York, LLC, which is believed to be linked to Genting group or its chairman and chief executive Tan Sri Lim Kok Thay and his family, has emerged as one of the six bidders for a project at the Aqueduct Racetrack in New York city. A racino is a combined racetrack and casino gaming operations with the Aqueduct Racetrack expected to hold 4,500 video slot machines. The existing 192-acre Aqueduct is the only racetrack within New York’s city limits. (Financial Daily)

AirAsia X may list in HK or US
AirAsia X (AAX) is considering the possibility of listing on the Hong Kong or New York stock exchange, which are options being proposed by a couple of foreign investment banks pitching to secure the mandate for the long haul budget carrier’s initial public offering (IPO). Even so, no decision has been made on the listing venue of the IPO, which is being targeted for the second half of next year. “All the shareholders will need to be consulted on this issue, which has yet to be raised at board level. But the current foreign shareholders in AAX may be more inclined towards an overseas listing,” said a source close to the exercise. (StarBiz)

Fortis poised for counter bid for Parkway
A twist in the battle for Singapore-listed Parkway Holdings has surfaced, with Fortis Healthcare having announced yesterday that it planned to raise INR27.5bn (USD585m) by issuing securities. India-based Fortis also said its board had approved a proposal to increase its borrowing limit to INR60bn (US$1.27bil). Bloomberg reported that this has put Fortis in a position to battle for Parkway. Khazanah Nasional had on 27 May made a partial general offer worth SGD1.18bn (USD835m) to double its stake and take control of Parkway. (StarBiz)

SP Setia : SP Setia taking new tack with KL project. The country's largest property developer by sales, is targeting to launch its KL Eco City, a RM6 b project in Kuala Lumpur, by December. KL Eco City is a green mixed development located opposite Mid Valley Megamall. It will be developed in three phases over some 10 years. The project is a joint venture with Kuala Lumpur City Hall (DBKL), which owns the 9.7ha leasehold land in Kampung Haji Abdullah Hukum with DBKL taking 20% of the project?s net profit. (Source: Business Times)

Toll Concessions : Panel to study toll hikes. Works Minister Datuk Shaziman Abu Mansor said a working committee will be set up to discuss the necessity of toll hikes. It will look into claims by some highway concessionaires that they are not making profits. Shaziman said the government would not prevent any highway concessionaire from raising toll rates if there were alternative routes to the destination. (Source: New Straits Times)

20100610 1109 Soy Oil & Palm Oil News.

Soyoil futures eked out modest gains, buoyed by fresh export sales to China, spillover strength from crude oil and optimistic outlooks for future demand amid soyoil's competitiveness with palm oil in international markets, analysts said. However, advances were limited by ample U.S. soyoil inventories. July soyoil settled 0.08 cent, or 0.2%, higher at 36.75 cents per pound.(Source: CME)  

Palm oil off 5-mth lows on strong China trade data
KUALA LUMPUR, June 9 (Reuters) - Malaysian crude palm oil futures ended off five-month lows on Wednesday after leaked China trade data showing exports surged last month suggested Asia's economic growth was on the path to recovery.   

China may cut soybean buying in June - Oil World
HAMBURG, June 8 (Reuters) - China may cut soybean purchasing in coming weeks because of growing stocks, a factor which could help weaken global soybean prices, Hamburg-based oilseeds analysts Oil World said on Tuesday. 
"There is a high probability that China will become a very reserved buyer of soybeans in the next few weeks;" it said. "There could even be increasing cancellations."   

China may buy Argentine soyoil soon - Oil World
HAMBURG, June 8 (Reuters) - China's huge need for edible oils may compel it to resume soyoil imports from Argentina as early as July, but Argentine soyoil exports are booming despite China's import stop, Hamburg-based oilseeds analysts Oil World said on Tuesday.
"We expect that China will resume large-scale purchases of (Argentine) soyoil and step up imports in the July/Sept 2010 quarter," Oil World said.   

Brazil soy harvest edges up to record 68.7 mln T
SAO PAULO, June 8 (Reuters) - Brazil's 2009/10 soy crop forecast rose to a record 68.71 million tonnes from the 67.86 million tonnes projected in May, crop supply agency Conab said Tuesday.
Brazil harvested 57.17 million tonnes of soybeans in the 2008/09 (Sept-Oct) crop.   

Poor weather to curb rapeseed crop in west Europe
PARIS, June 8 (Reuters) - This summer's rapeseed harvest in western Europe is set to bring lower yields after unfavourable conditions at several growth stages, curbing output after bumper crops last year in top producers Germany and France.
The region was still on course for a large crop, while yield results were hard to call ahead of the critical pod-filling phase, analysts and traders said.