Futures Stock Daily Commentary

[adie]

Malaysia Daily 15/12/14

COMPANY UPDATE
AirAsia Bhd: Upgrade to Buy
Oily relief
•Upgrade to BUY (from HOLD), with a raised target price of MYR3.25 (from MYR2.60) on positive earnings revision.
•Fuel price and USD/MYR assumptions revised; positive for earnings. Lower fuel price will help mitigate the soft yield market, provides flexibility to management's growth plans.
•AirAsia will also be the new bellwether in the Malaysia airlines sector, replacing MAS which delists today.

AirAsia X Bhd: Maintain Sell
Oil relieve not enough
•Fuel price and USDMYR assumptions revised; positive for earnings.
•AAX will now breakeven in 4Q14, turnaround in 2015, but capital raising risk still looms, in our view.
•Maintain SELL, despite a higher target price of MYR0.60 (from MYR0.57) after our positive earnings revision.

Alliance Financial Group: Maintain Buy
Finally appoints a CEO
•Finally appoints a CEO, clears one uncertainty.
•Likely a good fit with extensive consumer banking experience.
•Buy maintained, TP MYR5.50 (CY15 P/BV of 1.8x).

REGIONAL SECTOR UPDATE
The Cockpit View (Issue #2): Maintain Overwight
IATA 2015 economic report
•IATA estimates 2015 industry profit to break 2010's record.
•Passenger demand growth is highest since 2010, and cargo is on a cyclical upturn.
•In short, all things good and more reason to trade and invest in airline stocks. Maintain OVERWEIGHT.

Technicals
Very strong equity downturn ahead of 2015
The FBM KLCI fell 16.38 points WoW to close at 1,732.99, as heavy selling activities persisted. Volume fell from 1.46b to 1.21b shares. The index fall was synonymous with a weaker Ringgit and global markets. We advise clients to sell at the resistance areas of 1,732 to 1,800. The support levels of 1,660 and 1,730 will witness very weak nibbling activities.
Trading idea is a Take profit call on DRBHCOM with downside target areas at MYR1.39 & MYR1.22.

Other Local News
Construction: KL 118 Tower, Six in the running. Six groups have been short-listed by Permodalan Nasional Bhd (PNB) to submit their bids for the KL118 Tower (Warisan Merdeka) engineering, procurement and construction (EPC) contract valued at MYR3b. The tenders for the EPC will close on January 28. UEM Group has teamed up with South Korea's Samsung, IJM Corp with Northwest Holdings Sdn Bhd and Japan Shimizu Corp with another four consortiums lead by Malaysian Resources Corporation Bhd (MRCB), WCT Holdings, TSR Capital and Seacera Group. (Source: The New Straits Times)

Only World Group Holdings: Plans post-IPO expansion. The group, which is slated for a debut on the Main Market of Bursa Malaysia on Thursday plans to widen its network of food service outlets (FSOs) in the Genting Highlands and upgrade the three Wet Word water theme parks in Selangor, Johor and Negri Sembilan. It plans to add 10 more FSOs from its existing 27 with an average capacity of 120 seats per outlet in the first half of 2015 using 20% of the MYR50m it hopes to raise from the initial public offering (IPO). Another MYR3m from the IPO proceeds will be set aside for developing new facilities at the Shah Alam water theme park over the next two years while another MYR30m to be used for the refurbishment of the Komtar Tower project. (Source: The Edge Financial Daily)

Ivory Properties Group: PWC reclamation works to be awarded early next year. The joint-venture company of Ivory Properties Group and Tropicana Corp will be awarding the tender to reclaim 14.2ha of land as part of its estimated MYR10b Penang World City (PWC) mixed development in Bayan Mutiara next year. Five local and foreign companies have been shortlisted according to Ivory Properties CEO, Datuk Low Eng Hock. The award will be finalized in the first quarter of next year, with the reclamation works expected to take about three years to complete. (Source: The Edge Financial Daily)

Bursa Malaysia: Wooing Gen Y to the market. The Association of Stockbroking Companies of Malaysia (ASCM) would be looking to amend the board lot system and allow potential retail investors to buy single shares in a bid to encourage the Gen Y to boost trading volume. The ASCM has also proposed the creation of a new board for the listing of all inactive counters so that steps could be taken to encourage these stocks into action. (Source: The New Straits Times)

Outside Malaysia
U.S: Senate passed a USD 1.1t bill to fund most of the government through September and avert a shutdown after defeating an effort by Ted Cruz that previewed a potential 2015 Republican fight over immigration. The 56-40 vote during an uncommon Saturday session follows House passage of the spending bill on Dec. 11 and sends the measure to President Barack Obama for his signature. Cruz of Texas, like a number of House Republicans, had sought to use the measure, H.R. 83, to block funding of Obama's actions allowing millions of undocumented immigrants to stay in the U.S. (Source: Bloomberg)

Japan: Abe scores commanding majority in lower house election win. Prime Minister Shinzo Abe's ruling coalition was on track for a sweeping election win with the premier claiming a mandate to continue with his economic policies. The coalition of Abe's Liberal Democratic Party and junior partner Komeito won a two-thirds majority in the lower house, according to NHK projections based on actual votes cast. The bloc won 325 of 475 seats with two still undeclared, matching the number before the election. Turnout fell to a record low on a combination of voter apathy and heavy snow in parts of the country. (Source: Bloomberg)

 

[adie]

Futures Crude Palm Oil 15/12/14

Technical Outlook
CPO February futures opened higher to reach day high at RM 2,216 and later declined throughout the day to touch day low at RM 2,165 to settle – 24 points at RM 2,171. Total volume of 46,023 lots was traded with open interest at 181,940 contracts held.
Price covered the previous gap at RM 2,204 to come under intense pre-weekend liquidation and profit taking pressures. Fear of further slump in crude oil prices is offset by lower domestic December production expectations and slightly better demand as market eyes 1-15 days export numbers today.

Chart shows a slightly “engulfing bearish” candlestick pattern with prices trading within a 100 points range of 2,120 to 2,220. MACD is flat and in negative territory with price hugged between the 10 and 20 days moving averages at RM 2,160 and RM 2,191 respectively. For the present, rallies are expected to be short-lived but bargain hunting support on very sharp dip may be ready for intraday gains. Resistance is pegged at RM 2,190 and support placed at RM 2,140.

Market view: Prices could trade within the resistance and support range.

 

[aiman27]

perkongsian yg baik. di saat psrn saham kurg baik. Futures lah alternatif nya.

 

[adie]

Futures FKLI Index 16/12/14

Technical Outlook
Market sentiment continues to be bearish with prices breaking a new low for the year and could pose more downside risk with the plunging oil prices. Market action yesterday saw spot month contract price traded below the 1,700.0 level but manages to recover towards the closing. Momentum studies continue to be negative though the Stochastic reading is at overdone reading level. With prices continue to go below the major moving averages 10, 20 and 40 indicating more downside risk to the market. With oil prices continue to dominate market sentiment; any rebound would deem technical correction buy on caution is advised.
Resistance seen at hourly 10 MA 1,710.0 and at 9th December day low 1,721.0 while support should peg at 1,692.5 and 1,680.0

Local Markets
Declining crude oil prices further smack local stocks the benchmark index shredding another two-digit loss to close below the 1,700.0 mark. Kuala Lumpur Kepong Bhd and Petronas Dagangan both led losses as confidence remain shaky after oil prices sank further to $56.25 per barrel. The FBMKLCI index declined 35.68 points or 2.06% to settle at 1,697.31 Losers battered gainers 1,010 to 66 while 858 counters were unchanged
Index futures contract extend selling pressure as sentiments remain bearish tracking the poor performance of the underlying index. The spot December contract lost as much as 32.5 points but manages to crawl back above 1,700.0 levels towards closing. The contract settled 20.5 points lower at 1,704.5 down 1.19%. Total volume traded was recorded at 8,973 lots while open interest declined to 27,081 from 28,403 contracts.
Asian Region
Victory for Shinzo Abe over the weekend election failed to prevent a slump in the stock market. U.S. market plunged on Friday to its worst week in months as concern over impact of lower oil prices hit sentiment. The TOPIX index closed at its lowest in a month slipping 1.5% to settle at 1,379.29 while the Nikkei 225 index closed 1.6% lower at 17,099.40
Stocks in China rose for a second day bucking regional trend and erasing a 1.6% drop during the day. Construction and railway companies gain on speculation of government to take more steps in supporting the economic growth. The Shanghai Composite index closed 0.5% higher at 2,953.42
Hong Kong stocks closed lower with sentiments dragged on by losses in Wall Street on Friday night. Airline share Cathay Pacific Airways fell 0.58% while finance stock HSBC lost 1.40%. The Hang Seng index lost 221.35 points to close the day at 23,027.85
US Market
Wall Street falls further with the S&P 500 recording a fifth straight drop after oil continues to plunge and hitting sentiments despite a surge in industrial production and corporate deals. Oil prices extending its rout after Organization of Petroleum Exporting Countries (OPEC) cut its forecast on demand in 2015.
S&P 500 closed 0.6% lower at 1,989.63 with the gauge falling below its 100-day moving average. Dow Jones Industrial Average lost 100 points or 0.6% to settle at 17,180.84

 

[adie]

Malaysia Daily 16/12/14

SECTOR UPDATE
Malaysia Telcos: Maintain Neutral
Incorporating GST
•GST would allow wireless operators a chance to pass on the 6% service tax they currently absorb in the prepaid segment.
•In reality, the benefits are likely less pronounced given elasticity and competition; we assume operators enjoy the equivalent of a 3% pass-through in service taxes for now.
•Our sector picks are Axiata (maintain BUY, TP: MYR7.80) and Maxis (upgrade to BUY, TP: MYR7.40)

COMPANY UPDATE
Telekom Malaysia: Maintain Hold
Wireless’ near-term drag Shariah-compliant
•The convergence between wireless and fixed remains an attractive long-term proposition for TM.
•However, the near-term drag to P&L and cashflows would begin to manifest in 2015.
•Earnings and dividends lowered; maintain HOLD, as we raise TP to MYR7.20 (+10%) on higher LT-growth assumption.

Technicals
Sell all hollow price rebounds
The FBMKLCI tumbled 35.68 points to 1,697.31 yesterday, while the FBMEMAS and FBM100 also closed lower by 286.73 points and 260.23 points, respectively. We recommend a “Sell on Rallies” stance for the index.
Trading idea is a Take profit call on AEONCR with downside target areas at MYR10.05 & MYR9.08.

Other Local News
Federal Land Development Authority (Felda): Arm buys London hotel to diversify assets. Felda through its subsidiary, Felda Investment Corp (FIC) has bought the four-star Grand Plaza Kensington Hotel in London for GBP60m (MYR329.54m) in a bid to diversify its investment assets. The hotel is Felda's 12 and the first by FIC. (Source: The New Straits Times)

AirAsia X: Places biggest A330neo order. AirAsia X has placed a firm order for 55 A330neo aircraft from Airbus for USD15.2b (MYR53.2b) making it the largest single order for the A330 family and reaffirmed AirAsia X's position as the biggest A330 airline customer worldwide with a total of 91 aircrafts ordered. Deliveries of the newly ordered aircraft would begin in 2018. (Source: The New Straits Times)

Red Sena: Plans MYR400m listing. Red Sena, the first food and beverage (F&B) special purpose acquisition company (SPAC) is looking to raise MYR400m from its initial public offering (IPO) in which it will offer 800m new shares at 50 sen each. The company will also issue 800m free detachable warrants with exercise price of 50 sen each on the basis of one warrant for every one new share. (Source: The New Straits Times)

Supermax Corp: Share price plunges 16.5%. Supermax's share price plunge 16.5% or 32 sen to its two-year low of MYR1.62 yesterday after news that the Securities Commission (SC) has charged three individuals, including Supermax Corp CEO Datuk Seri Stanley Thai in relation to insider trading offences in the glovemaker's former associate company, APL Industries (APLI). Thai's spouse Tan Bee Geok, who was then APLI group executive director was also charged for disclosing non-public information to her sister, Tan Bee Hong. (Source: The Edge Financial Daily)

Malaysian Airline: Jentayu plans new premium economy airline. Jentayu Danaraksa Sdn Bhd (JDSB) has tweaked its USD2.5b (MYR8.75b) revamp plan to set up a new airline, Fly JD to buy-out the loss-making Penerbangan Malaysia Bhd (PMB). Fly JD will provide shuttle services for passengers to and from destinations not covered by Malaysian Airline. Jentayu has dropped its original plan of taking over MAS assets, MAS Engineering Sdn Bhd and Firefly Sdn Bhd. It is also proposing to form an entity called JD Leasing to fully acquire PMB while providing strategic shares to Khazanah at no cost. (Source: The Edge Financial Daily)

Outside Malaysia
U.S: Factories charge ahead to propel into 2015. Industrial production jumped 1.3% MoM after a 0.1% MoM increase in October, figures from the Federal Reserve showed. Output of consumer goods, including autos, electronics and energy, surged by the most in 16 years. A firming job market and drop in fuel costs are giving households the means to boost spending, shielding American factories from cooling demand in Europe and a rising currency that makes goods more expensive to foreign customers. Another report showed homebuilder confidence hovered in December near a nine-year high, indicating the U.S. expansion is broad-based as Federal Reserve policy makers meet to consider how and when to wean the economy away from ultra-low interest rates. (Source: Bloomberg)

Russia: Raises key rate to 17% amid devaluation, inflation risks. Russia's central bank raised its benchmark interest rate the most since the nation's 1998 default, making the announcement in the middle of the night in Moscow as policy makers seek to douse investor panic and stem a ruble rout. The central bank increased the key rate to 17% from 10.5% effective, it said in a statement on its website. Policy makers gathered for an unscheduled meeting after a one-point increase on Dec. 11. (Source: Bloomberg)

China: Treasury holdings fall to lowest since February 2013. China held USD 1.25tr in U.S. debt as of October, a USD 13.6b drop from September, the Treasury Department said in a monthly report. The nation remains the largest foreign holder, ahead of Japan, whose stockpile increased USD 0.6b to USD 1.22tr, reducing the gap between the two countries to the narrowest since September 2012. (Source: Bloomberg)

Japan: Confidence of large manufacturers declined in the fourth quarter as a recession offset a boost from a weaker yen, underlining the economic challenges facing Prime Minister Shinzo Abe after his election win. The Tankan's big manufacturer index slipped to 12 in December from 13 in September, the Bank of Japan said. (Source: Bloomberg)

Australia: Budget gap widens more than forecast on iron ore. Australia's government forecast a wider budget gap this year as plunging iron ore prices erode tax revenue and spending cuts are blocked by opposition lawmakers. The underlying cash deficit will deteriorate to AUD 40.4b (USD 33.2b) in the fiscal year ending June 30, 2015 from a May estimate of AUD 29.8b, Treasurer Joe Hockey said in the mid-year economic and fiscal outlook. The government forecast unemployment will climb to 6.5% by mid-2015, higher than its May projection of 6.25%. (Source: Bloomberg)

 

[adie]

Futures Crude Palm Oil 16/12/14

Technical Outlook
CPO February futures opened higher to reach day high at RM 2,188 then declined to day’s low at RM 2,154, recovered in early afternoon then dipped again to settle - 3 points at RM 2,168. Spot month contract expired at RM 2,154. Total volume of 41,447 lots was traded with open interest at 183,813 contracts held.
The market traded choppily in an intraday “see-saw” pattern within the support and resistance points with strong overhead bears capping prices. Support was aided by slightly better first 15 day exports data but succumbed to selling on rally.
Most charts signals are flat to potentially weak and another sharp fall in overnight crude oil prices and a subdued soybean oil market could see new benchmark 3rd month March futures affected by the softer sentiments. Resistance is pegged at RM 2,175 and intraday selling interests may target nearest support level at RM 2,130 and may retest RM 2,119, the low point seen 5 days ago.
Market view: Selling may be active on intraday rallies with potential downside.

Palm Oil
Palm oil futures for Fenruary delivery closed 0.4% lower at 2,163 Ringgit per metric ton on Bursa Malaysia Derivatives. Palm oil prices have been surpressed by its correlated products and is seen YTD a fall of 19%. Demand for palm oil usually slow down during winter as tropical oil clouds in cooler temperature.
Refined palm oil for May closes with a gained of 0.4% at 5,028 Yuan per metric ton on Dalian Commodity Exchage.
Soybean Oil
Soybean prices eased, underperforming grain futures, after industry data showed the U.S crush last month falling well short of expectations, failing to set a record as investors had expected. Soybean for January stood 0.6% lower at $10.41 a bushel while soybean oil for January stood 0.34% lower at $32.46 a pound.
As at 10.00 A.M, soybean oil is trading at $32.19 a pound with a dipped of 0.25% and soybean is trading at $10.38 a bushel a dipped of 0.14% from previous closing price.

 

[adie]

Futures FKLI Index 17/12/14

Technical Outlook
Market sentiment continue to be bearish with prices breaking a new low for the year and could pose further downside as the crude oil prices fail to sustain at a higher price. Spot month futures contract broke to a new low at 1,666.50 on the last hour of trading and touched the high at 1,694.50, with open position increased to 23,548. Most of the technical indicators are showing that the market has overdone on the sell side, however, the downside could still sustain as the bearish fundamental catalyst could move the market further down. Any rebound on the market would deem as a temporary correction as the crude oil price is the key factor to affect the market sentiment.

Market resistance is currently placed at 1,688 and the market support is currently placed at 1650.

Local Markets
A combination of factors including a sharp sell-down in US markets, siege in Sydney and the persistent downtrend in crude oil price hammered investor sentiment across Asia, with most key markets finishing in the red.
Bursa Malaysia’s key index - the FBM Kuala Lumpur Composite Index (FBM KLCI) which has been one of the region’s worst performers this year extended its decline, ending 35.68 points or 2% lower to 1,697.31.
Asian Region
Stocks in Japan fall with the TOPIX index declining to its lowest level in six weeks as currency Yen rebounded on safe haven demand against fall in crude oil prices. Energy stocks like Inpex Corp and export reliant Toyota Motor Corp both slipped. TOPIX index ended the day 1.9% lower at 1,353.37 while Nikkei 225 settled 2% lower at 16,755.32
Stocks in mainland China rallied continuing to outperform regional peers as speculation continued on government’s possible further monetary stimulus move after contraction in latest manufacturing data. The preliminary Purchasing Managers’ Index from HSBC recorded a 49.5 reading against estimate of 49.8 and down from 50.0 in November. The Shanghai Composite index rose 2.3% to close at 3,021.52
Stocks in Hong Kong closed lower as the benchmark index enters into correction territory extending a decline to 10% from September 3rd high. Kunlun, Cnooc and PetroChina led declines as oil prices continue to plunge. The Hang Seng index fell 1.6% to close at 22,670.50
US Market
US stocks fell to a seven week low in whirlwind day that saw two rallies vanish as Russia's biggest interest rate increase since 1998 failed to arrest the ruble's slide amid the plunge in oil. The yen held gains after Treasuries advanced
The S&P's 500 Index slipped 0.9% to 1,972.74, its lowest close since October 27, erasing gains of 1.4% as the Nasdaq 100 Index slid.

 

[adie]

Futures Crude Palm Oil 17/12/14

Technical Outlook
New benchmark 3rd month March CPO futures gapped down touched high at RM 2,151 and drifted lower to reach day low at RM 2,114 to settle – 47 points at RM 2,121. Total volume of 52,441 lots was traded with open interest at 183,030 contracts held.
The market continued a sentiment-driven path due to sharp weakness in crude oil and marginal softness in soybean oil markets. Apparently, traders are wary and concern about the drastic impact of overall commodities price declines which could be translated as general downtrend. Other bullish fundamentals if any, has taken a back seat for the moment.
Charts pattern and signals show a weak candle with indicators displaying downtrend continuation as price trades below the 10 and 20 days moving averages, MACD and Stochastics oscillator hooked-down. Resistance is pegged at RM 2,140 and price may revisit the previous low support at RM 2,083 established on 1st December going forward.
Market view: Selling may be active on intraday rallies with potential downside.

Palm Oil
Palm oil futures for February delivery decline 2.3% to 2,119 Ringgit per metric ton on Bursa Malaysia Derivatives, lowest level at close since December 1st. Palm oil futures has fall for 3 days straight and on YTD it has fallen 20%. Aside from the volatility of oil prices movement, demand for palm oil slows down during winter season, as tropical oil clouds in cooler temperatures.
Refined palm oil for May delivery ends with a dipped of 1.5% to close at 4,952 Yuan per metric ton.
Soybean Oil
Chinese buyers signed nine contracts for a total of more than 1 million tonnes of U.S soybeans at a ceremony in Chicago on Tuesday. The purchases are for delivery to China, the world’s top soy importer, in calendar year 2015, said a U.S trader at the ceremony.
The deals had little impact on soybean futures prices at the Chicago Board of Trade, which languished near the session lows they hit before the ceremony.
As at 10.00 A.M, soybean oil is trading at $31.79 a pound a 0.06% gain from previous closing price while soybean is trading at $10.2350 a bushel unchange from previous closing price.

 

[adie]

Malaysia Daily 17/12/14

RESULTS REVIEW
Gamuda: Maintain Buy
1QFY15: On track Shariah-compliant
•Results were in line, net profit up 12% YoY.
•Revising FY15/16 EPS by -5%/-11% to reflect KVMRT 2 project timing and slower property sales.
•Main beneficiary of infrastructure projects. Maintain BUY.

SP Setia: Maintain Buy
Beat our expectation Shariah-compliant
•FY10/14 core net profit of MYR376m (-10% YoY) beat our expectation by 8% but was below consensus estimates.
•Huge unbilled sales of MYR11b should mitigate uncertainties over the departure of senior management.
•Fine-tuned earnings by -1% to -6%. Maintain BUY with a higher MYR4.07 TP (+9sen; on unchanged 0.73x P/RNAV).

Top Glove: Maintain Hold
In line but lacks solid growth Shariah-compliant
•Positive 1QFY8/15 results within expectations.
•Looming price competition could cap growth.
•Maintain HOLD; TP is reduced to MYR4.60 (14x 2016 PER).

Technicals
Loss of market confidence. Target 1,630
The FBMKLCI tumbled 23.37 points to 1,673.94 yesterday, while the FBMEMAS and FBM100 also closed lower by 129.53 points and 128.94 points, respectively. We recommend a “Sell on Rallies” stance for the index.
Trading idea is a Take Profit call on TDM with downside target areas at MYR0.65 & MYR0.30.

Other Local News
Utilities: 1Malaysia Development (1MDB), Gets 7% discount. 1MDB will purchase a 310-acre (125ha) vacant lease-hold land in Pulau Indah, Klang for MYR294.37m from Tadmax Resources, which is at a MYR23m or 7% discount to the original MYR317.34m that was agreed upon in a share sale agreement (SSA) on Feb 20 this year. The supplementary agreement on Monday also stipulated that the land will be sold on an 'as is where is basis' in place of Tadmax being obliged to undertake a conversion of the use of the land from building to industry. The completion of the deal shall be on or before June 30 next year. (Source: The Edge Financial Daily)

Malaysian Airline System: Jentayu fails to meet Khazanah. Jentayu Danaraksa Sdn Bhd has failed in its bid to meet with Khazanah Nasional yesterday to discuss the proposed MYR8.75b plan to revive the ailing Malaysian Airlines (MAS) after the meeting was canceled at Khazanah's request with no explanation given. (Source: The New Straits Times) In a separate note, Malaysian Aerospace Engineering Sdn Bhd (MAE), a wholly-owned subsidiary of MAS has disposed of its 44.61% stake in MAS GMR Aerospace Engineering Co Ltd to India GMR Infrastructure Ltd. (Source: The Edge Financial Daily)

Petronas Gas: Becomes controlling shareholder of Dialog's PLNG-2 unit. Petronas Gas (PetGas) is now the controlling shareholder in Pengerang LNG (Two) Sdn Bhd (PLNG-2), a special vehicle previously wholly-owned by Dialog LNG Sdn Bhd, which in turn is a wholly-owned unit of Dialog Group. PetGas has subscribed for a 72.22% stake in PLNG-2 for MYR780k cash. (Source: The Edge Financial Daily)

LFE Corp: Bags MYR350m Shapadu City Village job. LFE Corp has won a MYR350m provisional contract from Shapadu Corp Sdn Bhd to build the proposed MYR600m Shapadu City Village development in Putrajaya. The three-year project involves the engineering, procurement and construction of Shapadu City Village. (Source: The Edge Financial Daily)

Outside Malaysia
U.S: Real estate recovery uneven as housing starts fall. Housing starts declined 1.6% MoM, the first drop since August, to a 1.03 million annualized rate from a revised 1.05 million pace in October that was stronger than previously estimated, figures from the Commerce Department showed. The decrease was led by a plunge in the South as other areas registered gains. (Source: Bloomberg)

E.U: Manufacturing and services in the 18-nation euro area barely expanded in December as sluggish growth in Germany and France kept business activity subdued. Markit Economics said a composite index for manufacturing
and services rose to 51.7 from 51.1 in November, just above the 51.5 level forecast by economists in a Bloomberg survey. A factory gauge increased to 50.8 from 50.1, while a measure for services rose to 51.9 from 51.1. (Source: Bloomberg)

Germany: Private-sector growth slowed to the weakest in 18 months in December, increasing the risk that a soft phase will turn into a more pronounced economic downturn. Markit Economics said a Purchasing Managers Index for manufacturing and services fell to 51.4 this month from 51.7 in November. A factory gauge rose to 51.2 from 49.5, crossing the 50 mark that divides expansion from contraction, while a measure for services fell to 51.4 from 52.1. (Source: Bloomberg)

U.K: Inflation slows to least since 2002 on oil prices. The rate of consumer-price growth dropped to 1% YoY, the least since 2002, from 1.3% YoY in October, the Office for National Statistics said in London. (Source: Bloomberg)

Russia: Ruble sinks to record low defying surprise rate increase. The ruble plummeted into a freefall, losing as much as 19% as panic swept across Russian financial markets after a surprise interest-rate increase failed to stem the run on the currency. The ruble sank beyond 80 per dollar, a record low, before rebounding after Economy Minister Alexei Ulyukayev denied speculation that the government would turn to foreign-exchange restrictions to stop Russians from converting money into dollars. (Source: Bloomberg)

China: Factory gauge fell to a seven- month low in December even after efforts by the central bank to ease monetary conditions, suggesting more stimulus will be needed to halt the slowdown. The preliminary Purchasing Managers' Index from HSBC Holdings Plc and Markit Economics fell to 49.5, missing the median estimate of 49.8 in a Bloomberg survey and lower than last month's 50.0. Numbers below 50 indicate contraction. (Source: Bloomberg)

 

[adie]

Futures FKLI Index 19/12/14

Technical Outlook
Lead by the surge in the US markets, FKLI started twenty points higher in an early note. Prices continued to trade higher driven by strong buying interest in cash market and traded in positive note throughout the session. The Futures widen its premium over cash market at 7.50 points. Asian shares rose on Thursday in Japan and Australia on signals from the Federal Reserve that it is not in a hurry to raise interest rates, encouraging investor risk appetite.
Technically, the “Long White Candle” formed on the daily candle could suggest buying pressure. The price touched the day low at 1696.0 and continued to close above 1700 physiological level. Price is now supported by the 5SMA at 1697 and Stochastic is in oversold level while the MACD histogram showing the selling momentum started to diminish. Immediate upside resistance at 1712.5 next at 1721 while key supports at 1696.0 follow by 1683.0.

Local Markets
The FBM KLCI rose 18.05 points or 1.1% in line with Asian markets. World equities rose, following strong overnight finish in US markets.
Reuters reported Asian share markets rallied on Thursday, after U.S. stocks enjoyed their strongest session this year, when the Federal Reserve sounded upbeat on the economy and promised to be patient in removing policy stimulus. Malaysia's KLCI settled at 1,699.95 points at 5pm. The KLCI had extended gains from yesterday's 7.96 point or 0.48% rise.
Asian Region
Asian shares rose on Thursday in Japan and Australia on signals from the Federal Reserve that it is not in a hurry to raise interest rates, encouraging investor risk appetite. The Nikkei 225e surged 2.3% while the S&P / ASX gained 1.5%, after U.S. stocks rallied to the Fed's pledge to keep interest rates low for a "considerable time." Elsewhere, Korea's Kospi was up 0.4% and Singapore's Strait Times was up 0.3%. Taiwan's Taiex was 0.8% higher.
US Market
U.S. stocks carried Wednesday's gains into a strong rally on Thursday as investors continued to applaud the Federal Reserve's commitment to be patient when deciding when to hike interest rates. At the close of U.S. trading, the Dow 30 rose 2.43%, the S&P 500 index rose 2.40%, while the Nasdaq Composite index rose 2.24%.