Thursday, August 16, 2012

Market Overview 17th Aug 2012

Friday, 17th Aug 2012. The FBM KLCI gave up some previous gains despite positive quarter two earning from local blue chips company. Other news to follow.

"-U.S. stocks posted their best day in two weeks Thursday as gains in the tech sector and reassuring comments from German Chancellor Angela Merkel countered disappointing regional manufacturing data. Shares of Cisco Systems Inc. CSCO +9.63% led the Dow Jones Industrial AverageDJIA +0.65% higher. The index rose 85.33 points, or 0.7%, to 13,250.11 in recent activity, after touching an intraday high of 13,269.35. The tech-heavy Nasdaq Composite IndexCOMP +1.04% was up 31.46 points, or 1%, to close at 3,062.39. The S&P 500 SPX +0.71% rose 9.98 points, or 0.7%, to 1,415.51, with the tech sector closing up 1.5%. At current levels, both the Dow and the S&P 500 are on track to post six consecutive weeks of gains, and the Nasdaq is looking at five weeks of gains in a row.

"-Japanese stocks ended sharply higher to lead Asian markets on Thursday, catching a tailwind from the yen’s weakness as doubts about U.S. monetary stimulus lifted the dollar.

Hong Kong shares did a U-turn in afternoon trading to finish lower on weaker-than-expected earnings from heavyweight China Mobile Ltd., while Chinese stocks ended lower as a contraction in July foreign direct investment shifted focus to the country’s economy health. Japan’s Nikkei Stock Average JP:100000018 +1.88%  jumped 1.9% to end at 9,092.76, its first close above the 9,000-point level since July 6. Australia’s S&P/ASX 200 indexAU:XJO +1.14%  rose 1.1%, Taiwan’s Taiex XX:Y9999 +0.30%  added 0.3% and South Korea’s Kospi KR:SEU +0.05%  rose 0.1%. Going the other way, the Shanghai Composite Index CN:000001 -0.32% lost 0.3% after data showing foreign direct investment contracted 8.7% in July from a year earlier."

"-November Soybeans finished down 9 1/4 at 1625 1/4, 18 off the high and 5 3/4 up from the low. January Soybeans closed down 10 3/4 at 1614 3/4. This was 3 3/4 up from the low and 18 1/4 off the high. December Soymeal closed down 4.2 at 489.6. This was 1.3 up from the low and 8.8 off the high. December Soybean Oil finished down 0.05 at 53.66, 0.37 off the high and 0.2 up from the low. November soybeans traded lower into the closing bell after storm systems brought better than expected rainfall to Iowa and Wisconsin overnight. Soybean meal and oil traded lower as well. Weather this week and into the end of August remains favorable for soybeans but 25-35% of Midwest will remain stressed. Export sales were supportive this morning but soybeans shook off the news and took profits following yesterday's gains. Total net weekly export sales came in at 1,021,800 tonnes. As of August 9, cumulative soybean sales stand at 54% of the USDA forecast for 2012/2013 vs. the 5 year average of 24%. Net soybean meal sales totaled 130,700 tonnes which was in line with market expectations. The USDA also announced that private exporters sold 123,900 tonnes of soybean cake and meal to the Philippines for 2012/13 delivery. Net oil sales totaled 1,500 tonnes. The Argentina Agriculture Ministry held it's soybean production forecast at 40.1 million tonnes for 2011/12. The US Dollar traded lower on the day but offered no support to soybean futures."
FKLI- Sustainable New High As Earning Results Will Support 

Equity index is like to edge up higher soon amid recent positive earning results from Malaysia major companies. Most of the main listed companies have made their second quarters earning results namely from Bumi Armada, Petronas Dagang, Maybank, MRCB, UMW, and Pos Malaysia Berhad. Good or expected earning results will likely propel new growth on stock market as it attract investors to accumulate based on the positive prospect. At close, the FBM KLCI losses about 3.69 points to 1,650.09 level while spot month contract was traded slightly higher to 1650.50 level. The index futures has breached above its previous High and there should less resistance for it to move higher judging on recent Bullish economy back drop. BNM reported that the Malaysia  for the second quarter ended June 30 rose by an unexpected 5.4% year-on-year, supported by an expansion in manufacturing and robust domestic demand. The current index movement that pause at the top is less likely signifies trend reversal yet but maybe some mild retracement due to overbought reading. For today, pivot support for spot month contract is located around 1,648 while resistance is pegged at 1,654.

Daily Pivot Point
R2= 1654
R1= 1652
S1= 1649
S2= 1648

FCPO- Survived From Sell-Off, For Temporary. 

CPO futures for Nov contract ended up about RM41 to 2,942 while Soy oil was traded higher to 53.11 cents per pound on 6.00PM +8GMT yesterday. The benchmark Nov went up higher suddenly after getting some boost from recent positive export figures that saw some increment about 8%~10% for the 1st-15th palm oil outward shipment. Unfortunately for today, market is expected to be choppy due to coming festive season next week. Bursa Derivative will be close for two sessions next week, starting from Monday 20th Aug to Tuesday 21st Aug. Most traders especially short term traders are advised to closed off their position prior to the session end today as market is likely gap when the session resume on 22nd Aug Wednesday. Even though the benchmark Nov manage to surged and breach above the resistance trend line, market is likely having some technical recovery when the new benchmark Nov manage to bounced off from the low (around 2,820 on 14th Aug) judging on previous Bearish price action. Long to medium term perspective remain negative as more Bullish price formation is needed to reverse it current role. For today, pivot support for Nov contract is located around 2,867 while resistance is pegged around 2,952.

P/S: Official Announcement. Bursa Malaysia would like to announce that all its offices will be closed on Monday, 20 August 2012 and Tuesday, 21 August 2012 in conjunction with the Hari Raya Aidil Fitri celebrations. The Exchange will resume its operations on Wednesday, 22 August 2012.

Daily Pivot Point
R2= 2952
R1= 2931
S1= 2867
S2=2826
 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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