Market Overview 30th Nov 2011

Wednesday 30th Nov. The FBM KLCI rose amid renewing expectation on year end Christmas rallies. Other news to follow.

"-U.S. stocks mostly climbed Tuesday as Wall Street looked to a gathering of European finance ministers for signs of progress in stemming the region’s debt crisis. The Dow Jones Industrial Average DJIA +0.28%  ended up 32.62 points, or 0.3%, at 11,555.63. It had traded higher and posted yearly gains for most of the session, but the close brought year-to-date losses to 0.2%. The Standard & Poor’s 500 Index SPX +0.22%  rose 2.64 points , or 0.2%, to 1,195.19, with energy the best performing of its 10 industry groups and financials the biggest weight. The Nasdaq Composite Index COMP -0.47%  fell 11.83 points, or 0.5%, to 2,515.51."

"-Asian shares jumped Tuesday amid optimism that meetings set for later in the global trading day will bring some details of possible solutions to Europe’s debt crisis. Hong Kong’s Hang Seng Index HK:HSI +1.21%  and the Shanghai Composite Index CN:000001 +1.23% each gained 1.2%, while Japan’s Nikkei Stock Average JP:NIK +2.30% climbed 2.3%. South Korea’s Kospi KR:0100 +2.27%  rose 2.3%, and Australia’s S&P/ASX 200 index AU:XJO +1.08% added 1.1%."

"-Crude-oil futures topped $100 a barrel on Tuesday after consumer confidence in the U.S. shot up and investors were relieved to see Italy complete a bond auction, although the euro-zone country paid dearly for it. Ultimately, however, oil failed to settle above $100 a barrel, continuing a pattern of reaching that psychologically important mark during the trading but failing to carry it to the close.

Light, sweet crude for January delivery CL2F -0.28%  advanced $1.58, or 1.6%, to $99.79 a barrel on the New York Mercantile Exchange. The contract traded as high as $100.15 a barrel, according to FactSet Research, as gains accelerated in the last hour of trading."

"-US soybean futures end higher, continuing to recover from prior losses on technical buying and supportive external market influences. Fresh soybean-related fundamental news was lacking, keeping traders focused on external financial markets for leadership. Weakness in the US dollar, crude oil spiking to $100/bbl and hopes for progress in EU debt crisis enabled futures to push higher, analysts say. Futures were seen as oversold following last week's tumble, but with investors taking short positions in the market and export demand uncertain, advances were limited, analysts add. CBOT Jan soy ended up 4c at $11.25/bushel. Soy product futures end mixed, with soyoil climbing on the supportive influence of higher soybeans and crude oil futures, analysts say. Soymeal drifted lower, unable to hold initial gains, as traders bought soyoil and sold meal on spreads. CBOT Jan soyoil ended up 0.28c at 49.43c/lb, and Jan soymeal dropped $1.20 to $288.00/short ton."

FKLI- Recovery In Progress.

Stock index manage to recover after resume trading for the final week of November which will end today. The FBM KLCI rose 13.17 points to 1,444.72 level with Financial sectors were supporting most of yesterday gains. Market is expected to recover after it has been selling off last two weeks when it fell in conjunction with weaker regional performance at the same time. On the other part, index futures for both Nov and Dec are traded premium against the cash composite throughout the trading session yesterday, signalling a healthy indication for further rallies for the near term. The Dec contract rose 26.50 points or 1.87% to 1,446 yesterday, the high of the day was 1,460.50. Market choose to close where it open on morning session yesterday as profit taking are noticeably high on closing bell. Overall, index futures is poised to rally further based on U.S stock market sentiment due to higher than expected Thanksgiving and Christmas sales data.   

Daily Pivot Point
R2= 1467
R1= 1456
S1=1436
S2= 1428

 FCPO- Recovering In Slower Pace

CPO futures closed slightly unchanged yesterday as market is likely succumb to profit taking activities after it rose in the morning and afternoon session. Investors are still cautious about the mixed fundamental data about palm oil export and stock / production figures for the Nov month. More uncertainties will unravel towards Dec as MPOB will release its final month palm oil fundamental data. Plam oil planters said November CPO output has declined 14% so far this month as trees enter a lean production period at a time when monsoon on the east coast of peninsular Malaysia is slowing harvesting and disrupting transportation of the cooking oil from refineries to ports. But investors are putting CPO’s supportive supply fundamentals on the back burner for now as an ongoing discord among European leaders on a plan to fix its debt problems takes center stage. Worries about slowing global economic growth led to a 5.5% tumble in CPO prices in the week to Nov. 25. The benchmark Feb closed slightly lower about RM4 to 3,061, it went to the high at 3,102 level. There was no solid upside signal for the market to recover further when the market retrace swiftly to continue its correction phase. For today, support level is located around 3,024 while resistance is pegged at 3,120.

 
Daily Pivot Point
R2= 3120
R1= 3090
S1=3042
S2= 3024
Disclaimer: Information and opinions contained in this report are for educational purposes only. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness.