Market Overview 21th June 2012

Wednesday, 20th June 2012. The FBM KLCI continue to strive higher yesterday amid promising accumulation activities on local blue chip counters while regional index ended mostly lower. Other news to follow.

"-U.S. stocks ended mostly lower Wednesday after the Federal Reserve cut its growth forecasts and Chairman Ben Bernanke said the labor market had lost some steam. After a 92-point fall, the Dow Jones Industrial Average DJIA -0.10%  ended at 12,824.39, down 12.94 points, or 0.1%. Halting its winning streak at 4 sessions, its longest up run since late May, the S&P 500 SPX -0.17%  lost 2.29 points, or 0.2%, to 1,355.69, with utilities and natural-resource shares hardest hit and financials and technology faring best among its 10 industry groups. Extending its gains into a fifth session, the Nasdaq Composite COMP +0.02%  added 0.69 "

"-Asia markets rose Wednesday as hopes for a fresh round of stimulus to revitalize the U.S. economy buoyed sentiment, though trading volumes were light, suggesting caution in the markets.

Japan’s Nikkei Stock Average JP:100000018 +1.11%  outperformed with a gain of 1.3%, while South Korea’s Kospi KR:SEU +0.65%  and Hong Kong’s Hang Seng IndexHK:HSI +0.53%  each rose 0.4%, and Australia’s S&P/ASX 200 index AU:XJO +0.22%  added 0.2%. The Shanghai Composite CN:000001 -0.34%  bucked the trend, however, slipping 0.1%. Upbeat U.S. housing data and the prospect of more monetary easing by the Federal Reserve helped to drive Wall Street stocks to five-week highs Tuesday."

"- Crude-oil futures ended at an eight-month low on Wednesday, with investors worried about supply and demand and only mildly influenced by the U.S. Federal Reserve decision.

The Fed kept interest rates the same and said it will continue its “Operation Twist” program through year-end. It also cut growth and inflation forecasts and said unemployment above 8% will hold through 2012. Light, sweet crude-oil futures for July delivery CLN2 -3.53%  declined $2.23, or 2.7%, to end at $81.90 a barrel on the New York Mercantile Exchange, the lowest for a front-month contract since Oct. 5."

"-August Soybeans finished up 15 3/4 at 1437, equal to the high and 22 up from the low. November Soybeans closed up 11 at 1395 1/2. This was 25 up from the low and 1/4 off the high. August Soymeal closed up 1.6 at 424.3. This was 6.8 up from the low and 1.0 off the high. August Soybean Oil finished up 0.31 at 50.94, 0.33 off the high and 0.65 up from the low. Soybeans rallied for the fourth consecutive session today on a warm and dry forecast for the next 10 days. Soybeans traded 9-11 cents higher heading into the closing bell. Scattered showers are expected to move from eastern Nebraska to the northern plains in the short term forecast. The 11-15 day map continues to show dry conditions for the eastern Midwest and parts of the Delta but some models do not show heat. Overall, no drastic change has been made to the forecast for the next 2 weeks. December soybean oil rallied today and made new highs near 52.00 on rumors that China bought Argentinean soybean oil and could soon shift their demand to the US soybean market due to available supplies. The U.S. Dollar traded lower for most of the session, but rallied late in the afternoon as the Fed released statements on the status of the U.S. economy. Soybeans were able to shrug off the lower commodity trade, led by crude oil, and finish near the highs of the session. Exports sales are estimated at near 850,000 tonnes for tomorrow mornings export sales report."

FKLI- Higher High Formed With Break Out !!!, Some Retracement Expected Next  No Sign Of Retracement Yet.

FKLI 19th June 2012

FKLI 20th June 2012

Market continue to rally beyond expectation as there are serious accumulation on local main board market. Those counters which had the highest gained yesterday were YTL, PETDAG, MAS and DIGI. Market rose again with identical condition yesterday as almost all sectors are accounted in this rally. Thus, strengthen the overall outlook on Malaysia stock market and index futures.  What we expected for the index futures for the past few sessions were turn out shortcoming, market did not retrace (not even one bit) after it showed strong Bearish divergence on hourly chart but kept on rallying. The problem with indicators are they do not prompt you precise timing for the market to turn, it only indicate how strong or weak on a current trend is. Maybe the market was able to rally due to higher lows and higher high Bullish formation we saw so far. The index futures is likely testing the upcoming resistance around 1,605 level shown on hourly chart above and it is expected to breach above this level as market is still hovering on  recovery mode at the moment. Stock market performance is likely to improve with the upcoming ECB decision to maintain their interest rate low and some other measures to loosening their monetary policy in order to foster economy growth. For today.

Daily Pivot Point
R2= 1616
R1= 1612
S1= 1599
S2= 1591

FCPO- Immediate Resistance Breached, More Recovery Eyed. 

FCPO 19th June 2012

FCPO 20th June 2012

CPO futures ended higher yesterday amid strong recovery on Soy oil futures and other broader commodities  as well. At close, the benchmark Sept surge about RM93 or 3.15% to 3,041, while the most active traded Soy oil price went up about 0.55 cents to 50.99 cents per pound. Market is more susceptible for further recovery as the benchmark Sept manage to breached above yesterday resistance trend line and stayed above the new one week high yesterday. Investors might be temporary putting away their concern over Spain and Greece debt troubles that have spelled financial caution over all Europe and U.S and Asia. Put that concern aside, palm oil futures is set to recover further as we have saw two small gap up since previous Monday. Furthermore, sentiment is getting better as export is expected to improve on Muslim festival season that draw near on the next two months. Technically, on intraday or short term play we are looking steady upside momentum judging higher lows and higher highs candle formation appeared on 15 minutes chart. For today, support is located around 3,003 while resistance is pegged at 3,093.    

Daily Pivot Point
R2= 3093
R1= 3067
S1= 3003
S2= 2965
 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.