Sunday, February 19, 2012

Market Overview 20th Feb 2012

 Monday, 20th Feb 2012. The FBM KLCI made a quick come back and revive its preceding uptrend by recovering swiftly yesterday amid positive performance from regional index. Other news to follow. 

"-U.S. stocks on Friday closed higher for the week, with bullish sentiment curbed a bit ahead of a long weekend that’s expected to include resolution on another round of financial aid to Greece. Within reach of the 13,000 milestone last hit in mid-2008, the Dow Jones Industrial Average DJIA +0.35%  rose 45.79 points, or 0.4%, to 12,949.87, a 52-week high and its highest close since May 19, 2008. The blue chips finished with a weekly rise of 1.2%. Up 1.4% from the week-ago close, the S&P 500 Index SPX +0.23%  gained 3.19 points, or 0.2%, to 1,361.23, with the consumer discretionary rising the most among its 10 industry groups and health care taking the hardest hit.
The Nasdaq Composite COMP -0.27%  fell 8.07 points, or 0.3%, to 2,951.78, leaving it up 1.7% on the week."
"-Asian shares rose on Friday, bolstered by economic data and earnings, and with Japanese exporters getting a boost as the yen fell further. Hong Kong’s Hang Seng Index HK:HSI +1.01%  gained 1%, Japan’s Nikkei Stock Average JP:NIK +1.71%  advanced 1.6%, and South Korea’s Kospi KR:0100 +1.30%  climbed 1.3%, while Australia’s S&P/ASX 200 AU:XJO +0.34%  made a more modest 0.4% increase and the Shanghai Composite index CN:000001 +0.01%  rose fractionally. Asian markets got an early boost after U.S. shares ended at a level not seen in almost four years Thursday, as lower jobless figures outweighed lingering concern about a Greek default."

"-Crude-oil futures rose Friday to their highest in nine months as lingering geopolitical worries kept a fear premium in the markets and traders grew optimistic the Greek saga is closer to an end.
Crude for March delivery CLH2 +1.71%  rose 93 cents, or 0.9%, to end at $103.24 a barrel on the New York Mercantile Exchange. That was oil’s highest since May 10."

"-CBOT soy futures rally, extending recent gains on strong exports and worries about Brazil's crop. The USDA announced a huge export sale to China, which although already known given a Thursday signing ceremony, nonetheless added to optimism that the U.S. would continue to see increased business as South America production falters in hot, dry weather. The crop in Brazil is a particular concern. Traders say recent gains in soybeans versus corn could result in more soy acres than expected this spring. CBOT March soybeans end up 9 1/4c to $12.67 1/2 a bushel, up 3.1% for the week. CBOT March soybean oil up 0.35c to 53.40 cents/lb, while March soybean meal ends up $1.70 to $332.50 per short. "

 FKLI- Trending Up Continues.

 Stock index rose quickly due to positive market outlook world wide as U.S market continues to record gain steadily as well as regional market. We shall expect more positive re-action as the major negative news impact on European debt crisis is showing sign of resolution. More measures and steps are taken accordingly by the respective officials to gradually resolving their debt trouble and thus reducing fear of massive default. Europe is not excluded from defaulting or fail because they are too "BIG," just that they would do everything they could to avoid any massive default. They have to keep the European union intact as defaulting will resulted in substantial loss of confidence not only in their currencies but anything that regard to their country as well (no more English Premier League !!!). Back to our local equity index, market quickly bounced back to it's preceding direction when both stock index and index futures ended the week on higher ground. My initial assessment was expecting another mild retracement on previous Friday but both equity index does not went that way. Positive local and general equity market background have helped our equity index to closed stronger. As most equity market in the world are approaching their multi-years high currently, upside on equity index are likely to track these market closely. For today, support is located around 1,555 while resistance is pegged around 1,567.50.      

Daily Pivot Point
R2= 1567.50
R1= 1564
S1= 1555
S2= 1549.50

 FCPO- New Monthly High, Buyers In Control

 CPO futures ended higher yesterday buoyed by better than expected gains on commodities market last week. It was a quick come back for the market to resume its preceding uptrend with the substantial help from rising Soya oil which rose 0.36 cents to 53.41 cents per pound during Asia trading session on previous Friday, 6.05PM +8GMT. As a result, the benchmark May rose RM53 to 3,242, the high of the day was 3,255. Market happens to retrace after touching important resistance at 3,250 level and we are anticipating promising chances for the benchmark May to overcome this level again soon. History does repeated itself and in this case the market surge again after some mild retracement last week. Current price action suggest that medium term uptrending market remain intact and there is more upside room is expected if palm oil futures can reach above 3,270 level. Present price surge is likely related to the rising commodities prices that due to improving outlook on global economy activities and positive progress made on European debt crisis. For today, support is located around 3,212 while resistance is pegged around 3,284.

Daily Pivot Point
R2= 3284
R1= 3263
S1= 3212
S2= 3182
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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