Tuesday, 7th May 2013. The election uncertainties fear is finally over as current ruling coalition, BN stayed as the highest management for Malaysia for another five years term. Other news to follow.
"-U.S. stocks mostly advanced on Monday, continuing the S&P 500 index’s record run above 1,600 after the April jobs report exceeded expectations. Financials and technology fared best and utilities and consumer staples led the declines on the S&P 500 index SPX +0.19%, which added 3.08 points to 1,617.50, surpassing Friday’s record close. The Dow Jones Industrial Average DJIA -0.03% fell 5.07 points to 14,968.89, with 16 of its 30 components declining."
"-Asian stock markets rose Monday, taking cues from U.S. equities’ strong performance at the end of last week, along with accompanying gains for commodities. The Shanghai Composite Index CN:000001 +1.16% rose 1.2%, Hong Kong’s Hang Seng Index HK:HSI +0.99% climbed 1%, and Australia’s S&P/ASX 200 AU:XJO -0.09% rose 0.5% to help lead regional gains. Malaysia’s FTSE Kuala Lumpur Composite Index was also an outperformer, gaining 3.3% in afternoon trading. The advance came after a decisive result to the nation’s elections, extending the ruling coalition’s lock on power."
FKLI- There Are Fund Flowing Back To The Capital Market
Stock index and index futures rose to record high above 1,800 level for the first time since its establishment, marking the influential effect behind the results on Malaysia polling yesterday. Major political event that involve large mobilization of fund. Local fund and foreign fund have to go somewhere and judging from a new found economy and political stability, there is no better place to invest here in Malaysia. Traders would be surprise how significant yesterday movement in the market, but this is the information digested by the market. Most political changes or major intervention by government into the economy will make the market move exponentially. Take the major sub-prime mortgage crisis in America, Obama administration had spend trillions of Dollars to provide liquidity and salvage key company from it to collapse. And the results, most U.S stock index rose swiftly on late 2008. Yesterday frantic rally was no exception of how the market has moved based on major political event. There was very minimal technical analysis to mention here as even before the market went up yesterday, medium term perspective on stock index and index futures remain Bullish. Yesterday movement was part of the sign that the Bulls is still controlling the tempo up until now. This week, pivot support for May contract is located around 1,710 while resistance is pegged at 1,825.
Daily Pivot Point
R2= 1887
R1= 1825
S1= 1710
S2= 1658
FCPO- Testing Major Support
Palm oil futures is losing gradually and heading to six months major support located around 2,220 level. All signs so far are still pointing to South with more and more lower highs and lower lows formed virtually on every time frame. No soul would knows whether the benchmark July rebound swiftly after approaching that major support level but we are expecting some recovery, at least from some bargain hunter when the price dropped to six months lows. Record high stockpiles over two millions tons and sluggish palm oil demand that could not keep up with active production were the culprit to blame when the price outlook become Bearish for the past two and a half months ago. Technically, Bears are still the boss in the market as there is no sign of higher high nor higher low form on hourly chart to signify market recovery at the moment. Apart from major support anticipation, the MPOB is going to release palm oil market data coming this 10th May with slightly weaker improvement on export and stock piles. For today, pivot support for July contract is located around 2,231 followed by 2,220 major support while resistance is pegged at 2,267 followed by 2,284.
Daily Pivot Point
R2= 2284
R1= 2267
S1= 2231
S2= 2212
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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