Monday, January 9, 2012

Market Overview 10th Jan 2012

 Tuesday, 10th Jan 2012. The FBM KLCI closed firmer yesterday amid strong big cap stocks support yesterday that rose mostly based on better economy data from the United State. Other news to follow.

'-U.S. stocks crept higher in moderate trading Monday, as investors bet the corporate earnings season, kicked off after the close of trade by Alcoa Inc., would bolster recent data pointing to an improving U.S. economy. The Dow Jones Industrial Average DJIA +0.27%  rose 32.77 points, or 0.3%, to 12,392.69, gaining some ground in the last hour after bouncing around the flat line for much of the session. The S&P 500 index SPX +0.23%  edged up 2.89 points, or 0.2%, to 1,280.70. Industrials, energy and financial sectors were the best performers. The Nasdaq Composite COMP +0.09%  rose 2.34 points, or 0.1%, to 2,676.56."

"-Chinese and Hong Kong stocks surged on Monday as hopes that Beijing may soon relax its monetary policies to support economic growth spurred strong buying across sectors. Many regional markets suffered modest losses, however, as doubts about the euro-zone’s efforts to contain the debt crisis prompted investor caution despite upbeat U.S. employment data on Friday. China’s Shanghai Composite Index CN:000001 +2.89% jumped 2.9% to 2,225.89 for its biggest percentage increase since Oct. 12, while Hong Kong’s Hang Seng Index HK:HSI +1.47%  climbed 1.5% to 18,865.72. Elsewhere, South Korea’s Kospi KR:0100 -0.90%  declined 0.9% to 1,826.49, Australia’s S&P/ASX 200 Index AU:XJO -0.08%  slipped 0.1% to 4,105.40 and Taiwan’s Taiex gave up 0.4% to 7,093.04. Japanese markets were closed for a holiday."

"-Crude-oil futures closed lower Monday for a third-straight session with traders showing caution at the start of the first full week of the year, playing down last week’s reaction to Iran’s threats to disrupt oil shipping. Crude for February delivery CL2G +0.19%  declined 25 cents, or 0.3%, to settle at $101.31 a barrel on the New York Mercantile Exchange."

"-US soybean futures rallied Monday, settling at a two-month high, as traders rebuilt risk premium into prices amid threats to South American crops. Heat and dryness stress is perceived to be lowering the crops yield potential there. The uncertainty of Argentina and Brazil crop potential coupled with traders covering short positions ahead of Thursday's government crop reports helped futures recoup losses from the previous week, analysts say. CBOT March soybeans ended up 36 1/2c or 3.1% to $12.33/bushel. Soy product futures spiked in unison with rallying soybeans. Soymeal futures prices jumped to more than two-month highs, while soyoil retraced a portion of last week's declines. Threats to South America crops served as the fundamental driver attracting buyers to soy markets, analysts say CBOT March soymeal ended up $11.10 (or 3.6%) to $323.50/short ton; March soyoil climbed 1.21c (2.4%) to 52.33c/lb."

 FKLI- Stuck In Range, Momentarily. 

Stock index regain its positive momentum yesterday by rising about 7.60 points to 1,521.73 on closing bell while other Asia major benchmark ended in mixed tone. The index futures is poised to climb higher if the stock index continues to provide support. Other wise, it is going to trap within the trading range shown on the hourly chart above. For my initial assessment, the index futures is expected to retrace when it approach the previous high around 1,532 while recover when it approach around previous daily support level around 1,503. Most traders would called it a sideways range but if the index futures keep on moving within these range for more than two sessions I believe that if either one of these range violated, the move should be followed by extended momentum. On weekly basis, overall positive momentum remain intact as there is no Bearish reversal signal sighted yet. For today, support is located around 1,512 while resistance is pegged at 1,532.

Daily Pivot Point
R2= 1532
R1= 1528
S1= 1518

FCPO- Rose On Supply Side Concern

CPO futures extended gains for the second time yesterday as the benchmark Mar rose marginally to 3,215 level while Soya oil manage to recover about 1.42% to 51.83 cents lbs after it retrace swiftly to 51.09 cent lbs on previous Friday. Palm oil market is likely rising on weather concern that might curb early year production thus making the stocks lesser. Fundamentally speaking, the results from this condition should derive lower supply expectation among trading participants and speculation on the Long side will be higher. Technically, the benchmark Mar is likely sustain its upside momentum as there are another higher lows formed yesterday the price managed to closed just 3 points off the high of the day. Downside is limited around the benchmark Mar previous low around 3,178 level. For today, support is located around 3,174~3,178 while resistance is pegged at 3,238.  

Daily Pivot Point
R2= 3238
R1= 3226
S1= 3194

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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