Monday, December 19, 2011

Market Overview 20th Dec 2011

 Tuesday, 20th Dec. The FBM KLCI ended higher after hovering sideways in the early session as news on  North Korean leader Kim Jong-il’s death does not impact to local stock market. Other news to follow.

"-U.S. stocks closed about 1% lower Monday, deepening losses as separate comments from the head of the European Central Bank and the region’s finance ministers lacked the heft or details deemed necessary to curtail the region’s debt crisis. The Dow Jones Industrial Average DJIA -0.84% ended down 100.13 points, or 0.8%, at 11,766.26. The S&P 500 SPX -1.17%  fell 14.31 points, or 1.2%, at 1,205.35. The Nasdaq Composite Index COMP -1.26%  dropped 32.19 points, or 1.3%, to 2,523.14."

 "-Most Asian stocks tumbled Monday, with reports of North Korean leader Kim Jong-il’s death helping to accelerate losses in many markets that were already weighed by concerns about the European debt crisis. South Korea’s Kospi KR:0100 -3.43%  finished 3.4% lower at 1,776.93, China’s Shanghai Composite CN:000001 -0.30%  declined 0.3% to 2,218.24 and Japan’s Nikkei Stock Average JP:NIK -1.21%  gave up 1.3% to 8,296.12. Hong Kong’s Hang Seng Index HK:HSI -1.18%  fell 1.2% to 18,070.21, Australia’s S&P/ASX 200 index AU:XJO -2.38%  dropped 2.4% to 4,060.40 and Taiwan’s Taiex shed 2.2% to 6,633.33."

"-Crude-oil futures closed higher Monday, marking their first gain in four sessions, as investors gauged demand on the back of any potential developments regarding North Korea leader Kim Jong-il’s death and as the chief of the European Central Bank played down its role in tackling the debt crisis. The January contract for light, sweet crude-oil futures CL2F +0.64%  climbed 35 cents, or 0.4%, to close at $93.88 a barrel on the New York Mercantile Exchange.   "

"-US soybean futures end higher, settling at a 1-month high. The market's gains were driven by traders covering short positions after recent price declines, with dryness concerns for South American crops attracting buying, analysts say. Traders added a risk premium due to the potential threats to the soybean crop there, as South America is the main competition for US exporters, and a smaller crop there would likely mean greater demand for US soybeans, analysts add. The absence of price weakness from external financial markets kept attention on Brazil and Argentina weather. CBOT March soy ended up 7 1/4c at $11.46 3/4/bushel. Soy-product futures end mixed, with traders unwinding long soyoil/short soymeal spreads ahead of Christmas. Spillover support from higher soybean futures helped buoy soymeal prices, while a lack of support from crude oil left soyoil subject to spreading activity, analysts say. CBOT March soymeal ended up $3 at $296.50/ton while March soyoil dropped 0.51c to 49.42c/pound."

 FKLI- Recovering On Higher Ground, North Korea Leader's Death Does No Impact.

Asia regional indexes were traded lower yesterday on growing concern over North Korea economy stability with the death of their leader yesterday. Although most of the regional index does not responded bad to the news, worries over the European countries to control and resolve their sovereign debt issues remain. Conclusively, EU debt worries might be an old news but it will act as a time bomb ready to explode if anyone trigger it. On the other side, we will have more announcement on U.S economy data this week and gauge how well Obama's administration have done so far to their economy. Back to index futures, the spot month contract closed about 4.50 positive, slightly off the high at 1,473.50 level. Market is poised to recover further today judging on higher low candles formed since last Friday and there is no overbought sign occur yet so far. The range for pivot point support is located around 1,462 while resistance area is situated at 1,481 followed by 1,489.

Pivot Point
R1= 1481
S1= 1462
S2= 1451

FCPO- Temporary Recovery Due To Soya Oil Rallies.

CPO futures ended higher along with Soya oil futures recovery yesterday. The new benchmark Mar contract happens to close at the high 3,020 with 1.21% or RM36 gained. Most commodities prices will likely be under pressure (Bearish) by higher than expected productions toward the end of the year. With least expectation on improving demand pending announcement by ITS and SGS, palm oil futures is likely taking another dive if the export figures fell more than expected today. Technically, the benchmark Mar is forming temporary support after hovering within 3,050~2,970 range since last week. For further recovery, the benchmark Mar need to overtake the 3,050 area but if there is no improvement over Soya oil price outlook, the Mar contract is expected to slip further if the market fell below 2,970 level. Conclusively, medium term trend still remain Bearish judging from lower high and lower low candles formation so far plus eroding demand is likely jeopardize chances for further recovery for the moment.

Pivot Point
R1= 3032
S1= 2996
S2= 2972
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.


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