Market Overview 29th Feb 2012

 Wednesday, 29th Feb 2012. The FBM KLCI retrace yesterday despite strong indices performance regionally. Other news to follow.

"-U.S. stocks rose Tuesday, sending the Dow Jones Industrial Average to its first close above 13,000 since May 2008, as consumer confidence hit a 12-month high and oil prices fell. The Dow Jones Industrial Average DJI +0.18%   added 23.61 points, or 0.2%, to 13,005.12. It had topped 13,000 in the past two sessions, only to give up the level by the close. The last time the blue-chip index finished above the round-number mark was May 19, 2008, or before the start of the most recent bull market. Up for a fourth day, the S&P 500 SPX +0.34%   climbed 4.59 points, or 0.3%, to 1,372.18, with technology up the most and utilities the leading decliner among its 10 major sectors. The S&P 500’s recent streak is its longest rise since one that ended Jan. 23. The Nasdaq Composite COMP +0.70%  rose 20.60 points, or 0.7%, to 2,986.76, also its fourth straight session of gains and bringing the tech-heavy gauge closer to 3,000 — a level it hasn’t reached since late 2000. "

"- Most Asian markets rose Tuesday against the backdrop of a retreat in crude-oil prices, with a weakened yen and strong retail sales lifting Japanese stocks despite a fall in technology shares after Elpida Memory Inc.’s bankruptcy filing. Hong Kong’s Hang Seng Index HK:HSI +1.65%  added 1.7% to 21,568.73, Japan’s Nikkei Stock Average JP:NIK +0.92%  gained 0.9% to 9,722.52, China’s Shanghai Composite CN:000001 +0.20%  advanced 0.2% to 2,451.86 and South Korea’s Kospi KR:0100 +0.63%  rose 0.6% to 2,003.69."

"-Crude-oil futures closed below $107 a barrel on Tuesday to log a second straight session of losses after data on durable-goods orders and home prices showed declines, dulling the prospects for oil demand. Prices had seen some support on the heels of a weaker dollar and a report showing consumers more upbeat about the U.S. economy. Crude for April delivery CLJ2 +0.05%  declined $2.01, or 1.9%, to settle at $106.55 a barrel on the New York Mercantile Exchange. Prices, which tapped a low of $106.30 a barrel late in Tuesday’s Nymex trading session, have tallied a two-session decline of 2.9%, or $3.22."

"-US soybean futures ended higher, continuing a trend of setting new near-term highs on declining South American crop forecasts and strong export demand. Soybeans rallied to fresh five-month highs, buoyed by trader's thoughts that a smaller Brazilian crop will spur additional export demand for US soybeans, analysts say. Backlog of supplies at Brazilian ports is encouraging importers, particularly China, to book US supplies for near-term needs. Additional support spurred by need to push soy prices in an effort to entice farmers to not plant more corn at the expense of soybeans, analysts add. CBOT May soybeans ended up 10c at $13.12 1/2/bushel. Soy product futures ended mixed, with soymeal rising to 5-month highs in unison with soybeans. Soymeal is following soy on the threat of smaller South American crops spurring fresh demand, analysts say. Soyoil stumbled, succumbing to weakness in crude oil and end-of-month profit-taking on oil/meal spreads. CBOT May soymeal ended up $5.70 to $349.30/short ton, while soyoil dropped 0.06c at 54.80 cents/pound."

FKLI- Hovering Within 10-points Range. 

 Stock index went down slightly yesterday as investors stay on the sideline and awaits better hints to accumulate their holding in stock market. It is not a sign of massive correction yet when the stock index and equity futures have retrace since last week after rising close to 1,570 level. Market is likely taking some rest after recovering extensively since four months ago. Technically, the equity futures is likely going into retracement mode judging from candles formations so far. It is more evident now for the market to take short term break from rising as lower high and lower low formation has formed on hourly chart but not an extend that would reverse the current positive trending market. The white support trend line shown above will be use to gauge how aggressive Sellers are taking over. Conventionally, with the expectation for an uptrend market to bounce up from long term support trend line, most Long holder in the market should place their stops few points below the support trend line just in case anything that goes wrong. For today, support is locate around 1,550 while resistance is pegged at 1,567 level.

Daily Pivot Point
R2= 1567
R1= 1561
S1= 1550
S2= 1544

 FCPO- Rose To At Least 8 Months High, Supported By Soya Oil.

Bulls went rampage again yesterday palm oil prices kept reaching for multi-months high with likely the help from Soya oil that rose over 55 cents per pound. Tracking closely with Soya oil gain, the benchmark May rose about RM12 to 3,295. Scale above the 3,300 level comfortably after resuming to trade on afternoon session, the benchmark May manage to hit 3,321 level but it retrace quickly due to overbought reading on the new high. Soya oil manage to trade at 0.185 cents higher to 55.04 cents per pound during Asia trading session yesterday, 6.25PM +8GMT. Technically, the long shadow candle formed on daily chart yesterday that usually represent strong Selling activities approaching the close of the day, it is likely turn out to be profit taking. In other words, the positive momentum on the market remain intact with the agreement on higher volume and open interest when the price is rising. No solid findings on major correction for palm oil futures as long as Soya oil manage to sustain it's gain. For today, support is located around 3,283 while resistance is pegged at 3,333 level.

Daily Pivot Point
R2= 3333
R1= 3314
S1= 3283
S2= 3271
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.