Wednesday, March 14, 2012

Market OVerview 15th March 2012

 Wednesday, 15th March 2012. The FBM KLCI ended higher yesterday after dipping for the past four sessions which may due to overnight surge on U.S market previous Tuesday. Other news to follow.

"-The Dow Jones Industrial Average extended its winning streak to a sixth-consecutive session on Wednesday, finding support from largely positive bank stress tests, but the S&P 500 Index failed to shake off weakness by the close. The Dow Jones Industrial Average DJIA +0.13% rose 16.42 points, or 0.1%, to close at 13,194.10. The Nasdaq Composite COMP +0.03% edged up by 0.85 point to 3,040.73. The S&P 500 SPX -0.12% lost 1.67 points, or 0.1%, to end at 1,394.28."

"-Mainland Chinese stocks suffered a sharp late session pullback to end with steep losses on Wednesday after Premier Wen Jiabao poured cold water on expectations Beijing may loosen policy toward the property sector. Most other Asian markets climbed to track an extended rally on Wall Street overnight, in the wake of upbeat retail sales data and the Federal Reserve’s monetary policy.
China’s Shanghai Composite CN:000001 -2.63% finished 2.6% lower at 2,391.23, way off the day’s high at 2,476.22, on a wave of selling in afternoon trading; the Shenzhen Composite Index skidded 4.1% to 969.12. The sell-off came after Premier Wen reiterated the government’s commitment to cool the nation’s housing market, warning of damage to the economy if controls were relaxed prematurely. The retreat also weighed on Hong Kong, where the Hang Seng Index HK:HSI -0.15%  ended down 0.2% at 21,307.89."

"-Crude-oil futures settled lower Wednesday as a stronger dollar countered a report showing a smaller-than-expected increase in crude supplies and steep declines in the stockpiles of gasoline and other products. Crude oil for April delivery CLJ2 +0.19%  dropped $1.28, or 1.2%, to end the session at $105.43 a barrel on the New York Mercantile Exchange. That was the lowest settlement for a front-month contract in a week."

"-US soybean futures end higher, boosted by concerns about tight supplies and by higher-than-expected crush data. The National Oilseed Processors Association estimated 136.4 million bushels of soybeans were crushed last month, above the average analyst estimate of 132.6 million. Traders also say a disappointing South American crop could cut into supplies and drive more purchase demand to the U.S., a factor that has driven prices up for two months. Support also comes from worries some U.S. farmers may plant corn instead of soybeans this year, leading to tight soy supplies later this year. CBOT May soybeans end up 1 1/2c at $13.50 1/4/bushel, while CBOT March contract expires, closing up 7 1/4c at $13.56 on low volume. May soymeal rises $1.10 to $367.20/short ton, and May soyoil ends down 0.07c to 54.80 cents/lb."


 FKLI- Recovery Back On Track

 Stock index recuperate for the first time after retracing for the past few sessions yesterday amid promising surge on U.S market on previous Tuesday. The FBM KLCI rose about 11.69 points or 0.75% to 1,575.71 while index futures for March contract surge about 11 points to 0.7% to 1,576.50  level. These will be the first sign further recovery and the probability to resume its positive momentum will be higher if it could continue to closed positive for another session. Technically, what we have witness from the pass few session retracemet are likely typical price adjustment in most uptrend. In other words, Bulls get tired and gradually retreated (but did not succumb) on profit taking but still gaining upper hand over the Bears. Watch out for leading  indicators in economy activity such as inventories sales, CPI and unemployment as it tell half of the tales how well our economy condition is shaping up. For today, support is located around 1,569 while resistance is pegged at 1,585.  

Daily Pivot Point      
R2= 1585
R1= 1580
S1= 1569
S2= 1562

16th March Pivot Points
R2=1588
R1=1585
S1=1578
S2=1575

FCPO- Bulls Still Control 

CPO futures ended higher about RM20 to 3,385, just off 10 points from its day high at 3,395. Most of the gained made yesterday was probably due to current uptrend that hovering across commodities prices world wide. Supported by promising recovery on Soya oil which rose up to 55.10 cents per pound overnight, palm oil futures manage open gap up about 19 points to 3,384 level. Sentiment on this edible oil is likely improve due to better than expect export shipment on announced on 10th March and market participants are likely expecting positive export figures today. Technically,  higher lows and another higher highs have formed when the market rose to at least 9 months high yesterday.  These formations are part of essential criteria for a reliable uptrend to sustain. Conclusively, Bulls are still in control and traders are cautioned if they wish to counter trend the market. For today, support is located around 3,363 while resistance is pegged at 3,416. 

Daily Pivot Point
R2=3416
R1=3400
S1=3363
S2=3342

16th March Pivot Points
R2=3427
R1=3412
S1=3378
S2=3359
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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