Market Overview 5th Jan 2012

Thursday, 5th Jan 2012. The FBM KLCI shed lower after rising for the past few sessions while Asia benchmark indexes ended in mix tone yesterday. Other news to follow. 

"-U.S. stocks mostly rose Wednesday as evidence of strong post-holiday shopping and healthy car sales in December helped assuage concern about Europe’s debt troubles. After a 60-point drop early in the session, the Dow Jones Industrial Average DJIA +0.17%  ended up 21.04 points, or 0.2%, to 12,418.42, its highest close since July 26. he S&P 500 SPX +0.02%   rose 0.24 point, or 0.02%, to 1,277.30, with the consumer-discretionary sector faring best among its 10 major groups. The Nasdaq Composite COMP -0.01%  ended down 0.4 point, or 0.01%, at 2,648.36. "

 "-Japanese stocks began their journey in 2012 on a positive note Wednesday as investors got their first chance to react to an upbeat start to global equity markets, while Chinese shares lost a struggle to advance amid lingering concerns about tight liquidity. Japan’s Nikkei Stock Average JP:NIK +1.24%  finished 1.2% higher at 8,560.11, Australia’s S&P/ASX 200 AU:XJO +2.11% jumped 2.1% to 4,187.80 and Taiwan’s Taiex added 0.4% to 7,082.97. China’s Shanghai Composite Index CN:000001 -1.37% declined 1.4% at 2,169.39, after a higher opening. Hong Kong’s Hang Seng Index HK:HSI -0.80% fell 0.8% to 18,727.31, while South Korea’s Kospi KR:0100 -0.49%  fell 0.5% to 1,866.22. "

"-Crude-oil futures ended a seesawing Wednesday at their best since May, extending the previous session’s run-up amid thin volumes and ahead of weekly inventories reports. Crude for February delivery CL2G +0.06%  rose 26 cents, or 0.3%, to $103.22 a barrel on the New York Mercantile Exchange. Oil advanced 4.4% on its two-day winning streak."

'-US soybean futures end higher, fueled by traders maintaining risk premium in the market amid the uncertainties surrounding South American crop potential. Traders are cautious of crop threats from hot, dry weather, particularly with South American soy crops still ahead of their key stage of development, analysts say. Soy prices also buoyed by end-user buying, such as processors eyeing price breaks as buying opportunities, fearful of prices escalating further on a South American crop scare, analysts add. CBOT March soy end up 2 1/2c at $12.30/bushel. Soy-product futures end mixed, with soymeal rising with soybeans on South American crop uncertainty. Soymeal was also buoyed optimistic outlooks for improved domestic demand, with higher broiler prices and a possible reduction in DDG supplies following the expiration of the ethanol blenders tax credit leaving traders hopeful, analysts say. Soyoil backpedaled as traders took profits on long soyoil/short soymeal spreads. March soymeal ended up $1.40 at $320.60/short ton while March soyoil dropped 0.08c to 53.03c/pound.

 FKLI- First Correction

Stock index retrace swiftly as it might paving more way for another correction soon due to less follow through Buying when the market open high on yesterday morning session. Most Asian equity index were ended in mix tone. Investors are still skeptic about the continuous room for economy growth regionally as Asia biggest economy China and Japan, are showing sign of slowing down, spooking most Long holders to cover their positions yesterday. Technically, the positive momentum on index futures are still intact even though the Jan contract dip about 19.50 points or 1.28% to 1,505 , just 2.50 points off from the low yesterday. But for this near term, we are expecting further temporary correction but not something serious on the downside as market is still trending upwards. For today, support is located around 1,483 level while resistance is pegged at 1,524.   

Daily Pivot Point
R2= 1543
R1= 1524
S1= 1494
S2= 1483

FCPO- Some Hurdles On The Top 

CPO futures ended unchanged yesterday after gaining more than two session consecutively from last Friday. There are just too many factors and causes that could move the market, not just the rival product itself. Most traders are still cautious about Buying into strength or new high at the moment as palm oil market may need more than a recovering prices on Soya oil to sustain its rally. What we can summarize yesterday was a sideways market movement (with no clear winner for the Bulls or Bears) which may appear too early  to conclude this recovery may come to a pause. As mentioned on previous post, price climb towards previous weekly high around 3,270 will be challenging. Technically, the benchmark Mar need to overcome its immediate resistance or previous high above 3,245 level for more promising recovery. The path for further recovery remain intact as there is yet any Bearish reversal indication detected yet. For today, support is located around 3,201 while resistance is pegged at 3,245.

Daily Pivot Point
R2= 3265
R1= 3245
S1= 3201
S2= 3177
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.