Monday, February 13, 2012

Market Overview 13th Feb 2012

 Tuesday, 14th Feb 2012. Stock index ended slightly unchanged on the high ground yesterday despite some positive development over the European debt crisis. Other news to follow.

"-U.S. stocks closed broadly higher Monday after Greece approved austerity measures to ensure funds needed to avoid default. The Dow Jones Industrial Average DJIA +0.57%  rose 72.81 points, or 0.6%, to 12,874.04Coming back after its first weekly decline this year, the S&P 500 Index SPX +0.68%  added 9.13 points, or 0.7%, to 1,351.77, with industrials gaining the most and utilities the only laggard among its 10 industry groups. The Nasdaq Composite Index COMP +0.95%  climbed 27.51 points, or 1%, to 2,931.39, a new 52-week high."

 "-Asian markets gained Monday after Greek lawmakers voted in favor of austerity measures required to secure bailout funds and avert a likely default. Japan’s Nikkei Stock Average JP:100000018 +0.58% and South Korea’s Kospi KR:0100 +0.60%  each closed 0.6% higher, while Australia’s S&P/ASX 200 index AU:XJO +0.94%  advanced 0.9%. Hong Kong’s Hang Seng Index HK:HSI +0.50%  rose 0.5%, while the Shanghai Composite Index CN:000001 -0.0054%  lagged the advance to finish flat as property stocks sold down. Broad gains for Asia on Monday followed news that Greek lawmakers approved a package of austerity measures which international backers had demanded before signing off on 130 billion euros ($176.6 billion) worth of fresh aid."

"-Crude-oil futures rose Monday to their highest in nearly five weeks after the Greek government passed an austerity program and on concerns about oil supplies amid tensions in the Middle East.
The supply fears were stoked after an attack connected to the Israeli embassy in New Delhi and a foiled attempt in Tbilisi, Georgia, that the Israeli government blamed on Iran. Crude for March delivery CL2H -0.26%   gained $2.24, or 2.3%, to $100.91 a barrel on the New York Mercantile Exchange, gathering more steam as the trading day progressed. That was oil’s highest settlement since Jan. 10."

"-US soybean futures end at their highest point in nearly four months, as lower dollar sparked buying across commodities from crude oil to grains. Buyers also encouraged by threat of stressful weather returning to southern Brazil, analysts say, which may threaten crops and spur US export demand. Technical buying accelerated the advances down the stretch, with bullish traders excited by March soybeans ability to push above chart resistance at the $12.50 level, analysts add. New crop contracts rallied against corn, as traders push prices in an attempt encourage farmers to plant soybeans. CBOT March soy ended up 23c or 1.9% at $12.52/bushel. US soy product futures rallied with soybean futures. Soymeal futures led the advances, as the threat of stressful weather returning to southern Brazil, raise hopes for US export demand, analysts say. Soyoil ended higher, lost value to soymeal in the crush spread on slower exports. CBOT March soymeal ended up $10.50 or 3.3% to $330.50/short ton, and March soyoil finished up 0.52c to 53.05c/lb."

FKLI- Upside May Pause Before Surging Again.

After rising for few session since last week, the FBM KLCI ended tad higher yesterday along with index futures that trail closely behind. Most regional market ended higher and European equity market start off their session by opening higher amid positive progress on avoiding Greece from defaulting. Greece officials agreed on debt austerity bill worth over 100 billion on yesterday afternoon, putting the confidence back to the market. Technically, we are likely looking at a sustainable uptrend market for our local equity index. With series of higher lows and higher highs not only formed on daily chart but monthly chart as well, the Bears have to work harder if they would want to end the Bulls domination currently. For the market to correct swiftly, an external negative shocks are required and we are not expecting any of that for this month. Nonetheless, some mild retracement is expected to occur along the way before the market could breach its all time high at 1,600 level. With healthy investment background we are having currently, breaching 1,600 level is not a fantasy anymore. For today, support is located around 1554 while resistance is pegged at 1,566.50.

Daily Pivot Point
R2= 1566.5
R1= 1562.5
S1= 1554
S2= 1549

FCPO- Gained On Soya Oil Steady Recovery
 
 CPO futures regain its ground after retracing to 3,118 on Friday from previous rallies. On close, the benchmark Apr gained about RM37 to 3,168 along with constant recovery on Soya oil that gained about 0.340 cents to 52.87 cents per pound.  Initial assessment suggest that this is likely to be a Bullish trend turnover as the Buyers have successfully dock over 3,170 level, signifying substantial Buying activities occur yesterday.  Technically, palm oil prices are likely trade higher this week judging from previous resistance trend line break out on previous Wednesday plus higher lows and higher high formation formed on hourly chart shown above. Even though technical indicators are showing positive sign of further recovering, traders are warned to thread carefully due to palm oil futures is susceptible to fundamental shocks as recent sluggish demand does not help much on reducing its stocks level (which still stood over 2 millions tons). For today, support is located around 3,144 while resistance is pegged around 3,182.
Daily Pivot Point
R2= 3182
R1= 3175
S1= 3156
S2= 3144
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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