Thursday, March 1, 2012

Market Overview 2nd March 2012

 Friday, 2nd March 2012. The FBM KLCI continue to rose yesterday despite weaker performance on regional index. Other news to follow.

"-U.S. stocks closed higher Thursday, after scaling back late in the session on reports of a blast destroying pipelines in Saudi Arabia that sent oil futures above $110 a barrel. "Every dip is being bought," said Peter Boockvar, equity strategist at Miller Tabak. The price of oil rising "because of supply issues is a lot different than due to demand," said Boockvar. "The market doesn't care," he added. The Dow Jones Industrial Average DJIA +0.22% added 28.23 points, or 0.2%, to end at 12,980.30. The S&P 500 SPX +0.62% rose 8.41 points, or 0.6%, to 1,374.09. The Nasdaq Composite COMP +0.74% advanced 22.08 points, or 0.7%, to 2,988.97. "

"-Asian markets ended lower Thursday, with Japan losing early gains as the yen turned higher, while separate readings on China’s manufacturing sector pointed to a weakening in the world’s second-largest economy. Australia’s S&P/ASX 200 Index AU:XJO -1.00% dropped 1%, Hong Kong’s Hang Seng Index HK:HSI -1.35%  fell 1.5%, Japan’s Nikkei Stock Average JP:NIK -0.16%  shed 0.2%, and the Shanghai Composite CN:000001 -0.10%  slipped 0.1%. South Korea’s Kospi KR:0100 +1.33%  was closed for a holiday. "

"-Oil futures broke through $110 a barrel in electronic trading after the close of New York floor trading Thursday. Oil for April delivery CLJ2 +0.01% rose as high as $110.55 and recently traded up $1.11, or 0.9%, from its Thursday settlement of $108.84 a barrel."

"-US soybean futures ended higher, continuing to draw support from smaller South American crop forecasts. The smaller crop outlook fuels speculation of increased US demand that will lead to a tighter US soy balance sheet out through 2013, analysts say. The need to keep soybean prices competitive with corn to entice farmers to maintain adequate US soybean acres added support for prices as well, analysts say. CBOT May soybeans ended up 2 1/2c at $13.22 1/2/bushel. Soy-product futures end mixed as traders continue to take profits on long soyoil/short soymeal spreads. Soymeal rose to 5-month highs, buoyed by concerns that smaller South American soy production will generate fresh demand, but lower-than-expected weekly export sales limited gains, analysts note. CBOT May soymeal rose $2.60 to $355.50/short ton while May soyoil dropped 0.20c to 54.27c/pound."

FKLI- Bulls Is On The Right Track.

It has been eight months since the last major sell-off that took the equity index down to 1,300 level and right after that the market have been recovering steadily to over 1,570 level so far. Maybe the market was not ready to reach 1,600 level that quick last year and couple with early stage erupt of European debt crisis thus explain how previous swift sell-off occur. But now most of the European debt default news are treated as old news and no longer affect market sentiment. The next wave of market recovery is proceeding currently and we are likely to witness the next record high of equity index due to re-new economy activity plus increasing global demand. Technically, the March contract is moving on the right track to conquer previous year high and it is going to materialize soon if there is no major correction on regional or major indices in the west. Further more, current uptrend is likely stay strong due to multiple higher lows and higher highs formed during this recovery and there is yet any noteworthy sight for major correction. For today, support is likely located around 1,566 while resistance is pegged around 1,581.

Daily Pivot Point
R2= 1581
R1= 1578
S1= 1571
S2= 1566

 FCPO- Its Going Up Time !!!

CPO futures speed ahead to closed higher yesterday despite Soya oil weakness that went down for some retracement during Asia trading session. Soya oil was traded lower about 0.075 cents to 54.39 cents per pound on 10.00PM +8 GMT. It was a different story for FCPO as the benchmark May manage to bounce off from the 3,233 low and close at the day high to 3,285. Buyers were noticeably aggressive right before five minutes for the market close. Technically, Bears were in control during the morning session when the market open gap down, but Bulls quickly take over on late afternoon session. Conclusively, market open with Bears in play but it were the Bulls who staying at the end. Positive momentum is likely restore judging from yesterday price action when the price manage to bounce off from the support trend line. In another words, more speculative Buying activities is likely continue in the early session today but profit taking activities would take over in the afternoon session as most traders prefer to shed their holdings prior to weekend holidays. For today, support is located around 3,250 while resistance is pegged at 3,319.

Daily Pivot Point
R2= 3319
R1= 3302
S1= 3250
S2= 3215
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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