Wednesday, December 28, 2011

Market Overview 29th Dec 2011

 Thursday, 29th Dec. The FBM KLCI continues to edge higher yesterday amid "window dressing" activities that could continue till this end of year. Other news to follow.

"-U.S. stocks suffered significant losses Wednesday, with the S&P 500 retreating to the loss column for 2011, on concern about Italy’s next auction of government debt. The Dow Jones Industrial Average DJIA -1.14%  fell 139.94 points, or 1.1%, to 12,151.41 with all of its 30 components ending in the red. Back in negative terrain for 2011, the S&P 500 Index SPX -1.25%  shed 15.79 points, or 1.3%, to 1,249.64, with natural-resource and energy shares hardest hit among its 10 major industry groups. The Nasdaq Composite COMP -1.34% declined 35.22 points, or 1.3%, to 2,589.98, leaving the index in the red by 2.4% for the year."

 '-Most Asian markets fell on Wednesday, with Australian and Hong Kong shares declining, as investors returned after a holiday-extended weekend, while mainland Chinese stocks rebounded from 33-month lows in choppy trading. Hong Kong’s Hang Seng Index HK:HSI -0.59% declined 0.6% to 18,518.67 and Australia’s S&P/ASX 200 index AU:XJO -1.25%  fell 1.3% to 4,088.80 as both markets traded for the first time this week. Japan’s Nikkei Stock Average JP:NIK -0.20%  slipped 0.2% to 8,423.62, South Korea’s Kospi KR:0100 -0.92%  fell 0.9% to 1,825.12 and Taiwan’s Taiex shed 0.4% to 7,056.67. But China’s Shanghai Composite CN:000001 +0.18% , among the region’s worst performing indexes so far this year, rose 0.2% to 2,170.01 after two days of losses."

"-Crude-oil futures closed lower Wednesday to break a six-session climb, pressured by a sharply stronger U.S. dollar as traders kept a wary eye on Iran and its threat to disrupt oil shipments through a key shipping channel. After the close of the regular session, prices continued to decline in electronic trading immediately following a report from the American Petroleum Institute that showed a hefty, unexpected increase in last week’s crude inventories. Crude for February delivery CL2G +0.17% shed $1.98, or 2%, to settle at $99.36 a barrel on the New York Mercantile Exchange. Year to date, crude oil futures still trade about 9% higher."

"-US soy futures end lower Wednesday, retreating from sharp recent gains amid profit-taking and farmer selling. The market rallied at mid-day on spillover support from corn but later pulled back. While hot, dry weather is a concern for South American crops generally, it is not yet as much an issue for soybeans, traders say. Traders also question whether demand can stay strong above $12. CBOT Jan. soybeans end down 1 1/2c to $11.98 1/4 a bushel. March CBOT soyoil ends down $0.07 to $52.16. March soymeal joins corn and wheat, ending up $2.40 to $314.10 per short ton."

 FKLI- Window Dressing All The Way Till The End Of 2011.

Stock index and index futures continue to gain higher towards the end of the year as most regional index ended mixed yesterday. While the stock market headlines remain with the concern over the unsolved European debt crisis, plus a new Bearish indication for the Asia equity market focusing on China's property demand slow down. Various China data have pointed out that China economy growth is likely cooling down next year along with their property market. Words out that China's property burst may trigger the next Asia financial crisis which also turn out to be worst case scenario. Fortunately, it is too early to tell whether China economy would turn out such way. Back to local market, the index futures for Jan contract has traded huge premium against cash composite yesterday, signifying Bullish sentiment over next month equity index outlook. At close, the Jan contract ended higher to 1,508.50, day high was 1,512. Further rallies that could result in break out above 1,520 level today are expected as volume and open interest were recorded higher along with yesterday rallies. For today. support is located around 1,502 while immediate resistance is pegged around 1,518~1,520 area.

Daily Pivot Point
R2= 1518
R1= 1513
S1= 1502
S2= 1496

 FCPO- Some Sign Of Retracement

Palm oil futures continues to record another gain yesterday amid promising recovery on its rival products, Soya oil. The 2012 benchmark Mar contract manage to rose RM26 to 3,185, just RM4 off from yesterday low. Palm oil futures have been rising for the fifth sessions consecutively since 21st Dec last week and some minor retracement would be nice. Traders seem to be less focus on slower export data recently. As a result,  palm oil price for Mar contract is poised to continue its Bullish momentum even though the market have risen for a week. Support trend line shown on hourly chart above will serve as a guide for the price to rebound if the palm oil futures does retrace today. With more and more support from the recovery on broader commodities prices, palm oil futures is likely tracking closely Soya oil price performance at the moment. For today, support is located around  3,166 while resistance is pegged at 3,214 area.

Daily Pivot Point
R2= 3214
R1= 3199
S1= 3175
S2= 3166
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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