Thursday, February 9, 2012

Market Overview 10th Feb 2012

 Friday, 10th Feb 2012. FBM KLCI rose to at least two months high in the wake of new Buying interest across local shares recently amid the rumors of upcoming general election and recovering regional  equity market conditions. Other news to follow.

"- U.S. stocks closed higher for a third day Thursday, with technology shares up the most, after Greece said it had an austerity deal and jobless claims fell again last week. The Dow Jones Industrial Average DJIA +0.05%  rose 6.51 points, or 0.1%, to 12,890.46. The S&P 500 SPX +0.15%  added 1.99 points, or 0.2%, to 1,351.95, with technology the best performing and health care hardest hit among its 10 sectors."

"-Japanese and Australian shares fell while Hong Kong stocks ended flat after a choppy trading session Thursday, as an unexpected increase in Chinese inflation rate and uncertainty over Greek debt negotiations kept investor sentiment subdued. Japan’s Nikkei Stock Average JP:100000018 -0.15%  fell 0.2% to 9,002.24, Australia’s S&P/ASX 200 index AU:XJO -0.18%  finished 0.2% lower at 4,282.90 and Hong Kong’s Hang Seng Index HK:HSI -0.04% ended little changed at 21,010.01.
Elsewhere in Asia, South Korea’s Kospi KR:0100 +0.54%  rose 0.5% to 2,014.62 and Taiwan’s Taiex XX:Y9999 +0.52%  gained 0.5% to 7,910.78."

"-Crude-oil futures rose on Thursday, extending gains for a third session, as an austerity agreement in Greece and a decline in U.S. jobless claims fanned hopes of greater demand for oil.
Crude for March delivery CL2H -0.27%  rose $1.13, or 1.1%, to end at $99.84 a barrel on the New York Mercantile Exchange."

"-US soybean futures ended lower, backpedaling from a midday rally. Lack of any surprises in USDA world supply and demand estimates coupled with no immediate weather problems for South American crops, left futures without a reason to hold early advances, analysts say. USDA provided its interpretation of the crop issue in South America, and while the industry may feel they're overstating production, hard to prove USDA's assessments are wrong today, says analyst Dan Cekander with Newedge. USDA report highlighted ample supply and demand market characteristics, a feature that encouraged traders to take some profits off the table. CBOT March soybeans ended down 4c at $12.27. Soy product futures drift lower, mirroring price movements in soybean futures. USDA's smaller-than-expected cut in South American soybean production estimates and beneficial rains moving through the region took crop fears out of the market, analysts say. Absence of new crop threats produced some consolidative price action, with soymeal and soyoil ending near unchanged levels. CBOT March soymeal ended down $0.70 lower at $321.00/short ton, March soyoil finished 0.04c lower to 52.54c/lb. "

FKLI-  Full Speed Ahead

 Stock index continue to rise yesterday while other regional index were ended in mix tone with unexpected increase in China inflation rate and vague progress on European debt crisis. Local market remain positive by charting to a new monthly high with FBM KLCI rose about 12.14 points to 1,565.32 level closing exactly at the high while index futures for the Feb contract was trailing behind cash composite around 6.50 points. The Feb contract ended 10 points higher to 1,558.50 with slight decrease on the volume plus open interest as well. Even though lower volume and open interest were recorded yesterday, no Bearish reversal sign was detected yet. For those who prefer to Short at the high and hope for some mild retracement after that, this is not the time and place to do it, yet. Resistance level is futile and bound to be breach in an uptrend and so does marking your support on a vicious downtrend. Upside is likely continue today, first sigh of resistance is pegged around 1,570, while support is located around 1,548.

Daily Pivot Point
R2=1570
R1= 1564
S1= 1548
S2= 1538

 FCPO- Upside Temporary Paused Prior To Data Release

 CPO futures ended slightly lower yesterday as most investors prefer to stay on the sideline awaiting various important data release on the 10th Feb, including the USDA estimates tonight (9th Feb 2012). At closed, the benchmark Apr slide about RM7 to 3,148 off 13 points from the low, the high of the day was 3,162 while volume and open interest were recorded marginally lower compare to previous Wednesday. Technically, market is likely hovering on positive mode as there was no significant retracement occur at the moment and support from Soya Oil price (which manage to stay above 52 cents per pound). For medium term, more price action is required to identify whether this recovery could turn out to be a temporary rebound on current Bearish trend. This is due to there is yet any worth mention progress on palm oil demand and stocks level.
Separately, Malaysia has set its duty-free export quota for crude palm oil at 3.6 million metric tons for 2012 after a delay of several weeks. Issuance of the quotas could boost exports in February, as exporters rush to fulfil export contracts and slow stocks from building. Malaysia doesn’t impose duties on refined palm exports but does have a high duty of 23% for CPO shipments to protect its downstream palm oil processing industry. For today, support is located around 3,121 while resistance is pegged at 3,175. 

Daily Pivot Point
R2= 3175
R1= 3161
S1= 3134
S2= 3121

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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