Monday, February 27, 2012

Market Overview 28th Feb 2012

 Tuesday, 28th Feb 2012. The FBM KLCI closed unchanged after hovering in a ranging market throughout yesterday session. Others news to follow.

"-U.S. stocks mostly edged higher Monday, with the Dow industrials falling short of a close above 13,000, as a rise in planned home purchases offset disappointment over the G-20’s potential support for Europe. The Standard & Poor’s 500 Index SPX +0.14%  advanced 1.85 points, or 0.1%, to close at 1,367.59, while the Nasdaq Composite Index COMP +0.08%  increased 2.41 points, or 0.1%, to close at 2,966.16. The Dow Jones Industrial Average DJI -0.01% , however, declined 1.44 points to close at 12,981.51 after a selloff in the final moments of trading. The index rose as high as 13,027.52, reversing a fall to 12,882.59 before the housing data."

"-Most Asian markets ended lower Monday on worries about the impact of high oil prices on global economic growth, with Japanese shares reversing early gains as the yen’s rebound after recent losses led investors to lock in profits. Mainland Chinese stocks extended its string of gains amid improved liquidity after Beijing’s monetary easing earlier this month, with automobile companies leading the charge. Hong Kong’s Hang Seng Index HK:HSI -0.88%  fell 0.9% to 21,217.86, South Korea’s Kospi KR:0100 -1.42%  lost 1.4% to 1,991.16, Australia’s S&P/ASX 200 index AU:XJO -0.92%  dropped 0.9% to 4,267.40 and Japan’s Nikkei Stock Average JP:NIK -0.14%  gave up 0.1% to 9,633.93. China’s Shanghai Composite CN:000001 +0.31% rose 0.3% to 2,447.06."

"-Crude futures on Monday retreated from eight-month highs as fears grew that higher oil prices could derail the global economic recovery and after a meeting of finance ministers disappointed.
Crude-oil futures for April CLJ2 -0.61%  delivery settled $1.21 lower, or 1.1%, at $108.56 a barrel on the New York Mercantile Exchange. That ended a seven-session advance for oil futures."

"-US soybean futures extend their recent rally, climbing to fresh five-month highs on strong export demand and declining South American crop forecasts. Soybeans grabbed the spotlight in the grain and oilseed complex, due in large part to an increase in export demand. Soybeans rallied to new near-term highs for the sixth consecutive day, as traders remain relentless buyers amid worries government forecasters are underestimating export demand. Smaller South American production forecasts continue to support soybeans, reflected by China, the world's leading importer of soybeans buying large amounts of beans from US last week, analysts say. CBOT May soybeans end up 15 3/4c at $13.02 1/2/bushel. Soy product futures rallied to multi-month highs in unison with soybeans. Ongoing worries about smaller South American crop potential and the positive impact that may have of US soy product demand attracted speculative buyers, analysts say. CBOT May soymeal ended up $7.40 to $343.50/short ton, May soyoil climbed 0.21c to 54.86 cent/pound."

 FKLI- Sign Of Trend Pausing

After gaping up more than seven points to 1,565.87 on opening bell, stock index was unable to sustain the gain and closed unchanged to 1,559.04 level yesterday. Market might be having some hurdles to overcome its previous high at the moment after rallying extensively since Oct last year. It was a strenuous recovery for the market to rise about two hundred fifty points in four months time when the market dipped down to 1,300 level when the European debt crisis erupt last year. But that crisis are clearing up now, steps and measures taken by the European finance officials and international bodies are working as confidence are somehow return to their equity market. Back to our equity futures, the Feb contract is showing first sign of pausing but not to worries as there is yet any indication of massive correction. The lower high candle formation in hourly chart is simply an indication (not a warning yet) of fatigue Buyers in the market that could not push the price higher and falter lower towards closing bell. As a result, the Feb contract ended down eight points lower to 1,554.50, closing at the low of the day. Overall, medium term uptrend still intact even though there is a lower high spotted yesterday, this retracement is likely turn out to be a healthy correction. For today, support is located around 1,549 while resistance is pegged at 1,665.     

Daily Pivot Point
R2= 1665
R1= 1559
S1= 1551
S2= 1549

FCPO- Testing New High

CPO futures ended higher yesterday as the market kept on testing new high amid stronger commodities prices world wide. Most commodities prices you can come across is likely trading at their year high, i.e: crude oil, Soya bean and Soya oil. It seems that the Bulls are still euphoric about general commodities prices that are rising currently. The benchmark May ended RM6 higher to 3,282, it hit 3,300 level to create the high for the day. Cargo surveyors reported that palm oil export for 1st-25th Feb vs Jan stood around 990 metric tons and most industries players are not expecting some surprising rise for export figures this month. Technically, palm oil futures is still hovering on uptrend as it is not showing any sign of retracement and no lower high is spotted yet. But that is not some reason for you to get sloppy, remember that this upside swing has reaped about two hundreds fifty points in less than three weeks time and there was no significant correction along this recovery. Coincidentally it temporarily pausing around 3,300 level currently and I believe the benchmark May is likely to overtake above this level eventually provide if there is no major correction on Soya oil prices. For today, support is located 3,265 while resistance is pegged around 3,316.  

Daily Pivot Point
R2= 3316
R1= 3199
S1= 3265
S2= 3248
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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