Futures Stock Daily Commentary

[adie]

Futures FKLI Index 30/12/14

Technical Outlook
Major rebound in the spot month contract has seen prices maintain above the shorter term hourly moving averages 10, 20 and 40 on bullish technical signs developed from the past few daily patterns. Market action has seen RSI momentum studies continue to climb on stronger buying strength though Stochastic remains below the 50.0 indicative levels. Market seemingly looking to reach the daily 40 MA of 1,783.5 as window dressing on blue chip stocks continues towards the end of the year. However caution is warranted on new decline in oil prices failing to sustain above the USD55 per barrel as in past trading days. Oil and Gas sector has been badly hit this month on plunge in oil prices.
Support is seen at Christmas Eve day high 1,759.5 and next at 1,755.5 while resistance should peg at 1,770.5 and next at 1,776.5

Local Markets
Local stocks closed slightly higher as oil price continue to stabile above USD 55 per barrel while stocks linked to AirAsia Bhd came under pressure on news of an aircraft operated by its affiliate in Indonesia went missing on Sunday morning. Knee jerk reaction on the third aviation case in the region saw the benchmark index opened 6.79 points lower before rebounding. Continuing weaker Ringgit though caps any strong gains. The benchmark FBM KLCI index settled 3.97 points higher or 0.23% at 1,768.41. Decliners pip gainers 376 to 343 while 286 counters remained unchanged.
Index futures contract track the underlying index rebounding from lower opening to close on par. The December contract settlement which expires this Wednesday and January 2015 contract both closed higher at 1,768.0 climbing 4.5 and 2.5 points respectively. Total volume traded recorded at 13,093 lots with about 2,154 lots traded on December 2014 and January 2015 spread contract. Open interest stood at 29,404 contracts
Asian Region
Japan stocks ended lower for the day reversing gains in the morning session after reports emerge on a man being tested for Ebola in Tokyo. According to health ministry a man is being tested for the virus after having fever more than 38 degrees and recently returning from Sierra Leone. The Nikkei 225 index dropped 0.5% to close at 17,729.84 while TOPIX index slid 0.2% to settle at 1,424.67
Hong Kong stocks closed higher on its return from Christmas holiday gaining the most in a month spur on by insurer stocks. The stronger market also came after mainland stocks surged in the last two days on stimulus speculation. The Hang Seng index gain 1.8% to close at 23,773.18
China stocks closed higher extending its gain to five year high with continuing speculation of government might take steps to spur lending to bolster economic growth. Official Xinhua news agency reported that the People’s Bank of China will include savings held by lenders for non-deposit-taking financial institution into bank deposits from 2015. Developers jumped the most as the Shanghai Composite Index gain 0.3% to close at 3,168.02. The city benchmark has surged 6.2% during the Christmas holiday period in the past two days.
US Market
Wall Street closed rather mix but saw the S&P 500 extending another record closing approaching a third straight year to year gain. Equity benchmark climbed past milestones last week boosted by faster than expected GDP expansion. Equities near the end of the year at record levels even with continuing declines in oil prices.
The S&P 500 index rose 0.1% to close at 2,090.57 while the Dow Jones industrial Average snap a 7-days winning streak closing 15.48 points lower at 18,038.23

 

[adie]

Gold Market Daily Commentary 30/12/14

Overnight Market
•The dollar remained supported after final data last week showed that U.S. gross domestic product rose 5.0% in the third quarter, exceeding expectations for a growth rate of 4.3% and up from 3.9% in the three months to June.
•The strong data fuelled further optimism over the strength of the U.S. economic recovery and added to expectations for the Federal Reserve to raise interest rates next year.
•Markets shrugged off industry data released on Monday showing that U.S. existing home sales dropped by 6.1% in November to 4.93 million units from a revised total of 5.25 million the previous month.
•Trading volumes were expected to remain light this week with many investors away for the Christmas holiday and ahead of the New Year's holiday.

BURSA Gold 5 minute Chart

Gold futures contracts on Bursa Malaysia Derivatives closed firmer yesterday, tracking overnight gains on the US Commodity Exchange’s (Comex) gold futures. At the close, spot month December 2014 and January 2015 were unchanged at RM133.50 a gramme and RM134.65 a gramme. February 2015 rose 20 ticks to RM134.95 a gramme, while both March 2015 and April 2015 gained 40 ticks each to RM135.35 a gramme and RM135.75 a gramme, respectively. Open interests stands at 3770 contracts while turnover is at 48 lots.
Technically, December price gapped up forst before closed nearly flat at 134.05. Price managed to traded above 5SMA at 133.25 while the Stochastic is in over sold level. Taking cues of an overnight losses in the Comex, December price may test the support at 131.95-130.35. Resistance located around 134.45-135.60.

COMEX Gold Daily Chart

Gold prices pulled away from a three-week low on Tuesday, but still remained below the $1,200 threshold as the strong U.S. dollar continued to weigh on the precious metal. Gold for February delivery, the most actively traded contract, dropped $13.40 or about 1.1 percent to settle at $1,181.90 an ounce on the Comex division of the New York Mercantile Exchange on Monday.
Technically, the Dark Cloud Cover formed on the daily candle could suggests bearish candlestick reversal pattern bearish candle on Day 2 closes below the middle of Day 1's candle. Price may test the support at 1175.2-1170.7 while resistance located around 1199.1-1203.6.

 

[adie]

Futures Crude Palm Oil 30/12/14

Technical Outlook
CPO March futures opened higher reaching day high at RM 2,308 and the day low at RM 2,283 before closing with a total gained of 36 points at RM 2,286. Total volume of 39,627 lots was traded with open interest at 173,159 contracts held.
The market was up in tandem with the stockpile concern as Malaysia is experiencing a heavy rain as well as flood on certain areas. It was reported that the yield on palm oil for the next few months is likely to be affected due to the weather changes. An increase in palm oil prices also pushed up the vegetable oil prices.
However, the market formed a “inverted hammer” candle stick formation, giving clues that there’s a strong selling force at the RM 2,300 level. The bull factor is likely to be strong enough to break through the resistance and to test its resistance at RM 2,311 further up to RM 2,345 and the market support is placed at RM 2,252 further down to RM 2,220.

Palm Oil
Palm oil and rubber advanced as flooding in Malaysia and Thailand disrupted supplies from Southeast Asia, and forecasters said that further heavy rain over the next few days will probably exacerbate the situation. Palm oil for Match delivery jumped 1.6% to 2,286 Ringgit per metric ton on Bursa Malaysia Derivatives, the highest closing price for a most active contract since November 4th. The benchmark price for the edible oil rose for an eighth day, the longest rally since 2010.
Soybean Oil
A selloff brought soybean futures market from higher to lower about midway through Monday trading session. That's in spite of earlier news that soybean export sales and shipments for the week before last were bullish. Export inspections for last week were also good. Despite Monday's lower close, the trend is higher on weekly charts, on the other hand, recent gains could prompt cash soybean sales bfore the year is out putting pressure on the market.
Soybean oil for March delivery closed at $32.93 a pound a 1.04% gained while soybean for March delivery slipped 0.5% to close at $10.4875 a bushel.

 

[adie]

Malaysia Daily 30/12/14

MARKET STRATEGY
MY Strategy: Neutral
Flood disaster: Assessing the impact
•Floods in eastern Peninsular states have hit critical level.
•Restoration to be costly, PLCs not materially affected.
•No change in our stock, sector or market views/calls.

Other Local News
Sunway: Unit bags MYR169.9m Iskandar job. Sunway's unit, Sunway Construction Sdn Bhd has secured a MYR169.86m contract from Iskandar Investment to build the Coastal Highway Southern link in Johor. The proposed project is expected to commence on January 7 with a contract period of 24 months. (Source: The New Straits Times)

Parkson Holdings: Parkson Retail buys Qingdao Shopping Mall for MYR800m. Parkson Holdings' 52.1% owned subsidiary, Parkson Retail Group Ltd (PRGL) is acquiring the Qingdao Shopping Mall in China from Shanghai Industrial Qingdao Development Co Ltd for MYR800m cash. The acquisition will be funded via internal funds and the shopping mall's construction is expected to be completed by July 31 next year. (Source: The Edge Financial Daily)

Oriental Holdings: Sees 3rd generation taking over. The retirement of chairman and executive director Datuk Seri Loh Cheng Yean effective on Dec 31 will see her being replaced by her nephew, Datuk Loh Kian Chong who is currently the deputy chairman. Cheng Yean's daughter, Tan Kheng Hwee was appointed executive director together with Datuk Seri Tan Hui Jing. (Source: The Edge Financial Daily)

Tanjung Offshore: Bourbon SA RTO deal called off. Tanjung Offshore and Bourbon Far East Pte Ltd have aborted the proposed asset injection that would have resulted in a reverse takeover (RTO) of Tanjung Offshore by Paris-based oil and gas giant Bourbon SA. (Source: The Edge Financial Daily)

Outside Malaysia
Russia: Banks warm to shariah as crisis looms. Russian lenders are stepping up efforts to tap Islamic finance as international sanctions and a slump in oil prices push the world’s biggest energy exporter to the brink of a recession. Vnesheconombank, Russia's state development bank, is seeking advice from lenders in the Middle East on how to sell its first Islamic bonds, the RIA Novosti state-news service reported. Banks and companies are seeking Shariah financing after the nation's currency weakened to an all-time low almost two weeks ago, according to the Russian Business Council in Dubai. (Source: Bloomberg)

China: Tackles first-world quandary as USD 800b lending freed. Central bank is joining the balancing act of developed-world counterparts as it extended its toolkit to free up at least USD 800b in funds for lenders, seeking to support growth without inflaming financial risk. The world's largest emerging economy will broaden the definition of a deposit in 2015, boosting the lending capacity of Chinese banks that have to cap loans at 75% of funds held. (Source: Bloomberg)

 

[adie]

Futures FKLI Index 31/12/14

Technical Outlook
Prices fell snapping 7 consecutive daily of higher high as we approaches the end of 2014. Expiring December 2013 contract enters into the final trading day 6 points discount to the underlying as window dressing seemingly done for the year. RSI momentum has turn neutral at 50.4 levels while Stochastic reading remains a selling momentum at present moment. Hourly chart has spotted weakness with prices creeping below the 20 hourly moving averages with MA crossover between 10 moving below the 20 line. With the daily chart short-term upside correction seemingly stalled, caution is warranted for Long position holders as market has already covered the gap from 16th October low requiring more catalyst to break the resistance 1,771.5 which is the Monday 29th December day high.
A downside to sideway market is expected for today with volatile movement as market takes cue from weaker Wall Street performance. Resistance looks cap at 1,767.0 and 1,770.5 while support should peg at hourly MA 40 at 1,754.0 and 22nd December day high of 1,749.5.

Local Markets
Local shares closed lower with selling in small cap stocks dampening sentiment. The benchmark index also took cues from marginally weaker regional markets with all paring recent gains. Global markets were also shaky with renewed concerns in Europe hurting investors risk appetite in the region. The benchmark FBM KLCI index declined 1.58 points to close at 1.766.83. Losers outpaced gainers 402 to 382 while 304 counters remained unchanged.
Index futures contract closed lower with the spot month contract settling 7 point discount to the cash market as it enters expiry. The December contract enters its final settlement day tomorrow giving up recent gains from window dressing mode. The spot month contract failed to sustain mid-day rebound to close below the 1,760.0 level at 1,759.0 losing 9 points from previous closing. January 2014 contract meanwhile settled 10.5 points lower at 1,757.5. Total volume recorded at 8,993 lots while open interest stood at 27,718 contracts.
Asian Region
Japan stocks closed lower with the benchmark index paring its yearly gains on thin volume of trade approaching the end of the year 2014. Among the stocks, Honda Motor Co. lost 2.1% after a report on the carmaker missing its annual sales target. Petrochemical company Tosoh Corp sank as oil prices extended declines overnight. The TOPIX slid 1.2% to close at 1,407.51 giving up some of its gains for the year which now stands at 19%. Nikkei 225 index sank 1.6% to 17,450.77 registering a 7.1% annual gain. Japan market will be close for New Year holidays.
Stocks in China closed marginally lower paring the benchmark index’s biggest monthly advance since April 2007. Technology shares slumped while utilities dropped falling from a five year high. The market enters its second last trading day of the year having rallied 18% this month’s beating its global peers. The Shanghai Composite Index closed off its five-year high losing 0.1% to settle at 3,165.81
Drop in crude oil prices dragged down Hong Kong shares with energy counters like Cnooc and PetrolChina both falling 3.4% and 2.9% respectively. The benchmark index had its biggest drop since December 16 on a thin average volume after rising the most in a month the previous trading day. The Hang Seng Index lost 1.1% to settle at 23,501.10.
US Market
Wall Street closed lower to pare monthly gains as S&P 500 index fall off its record levels after extending it on Monday for the 53rd time this year. Technology and utility stocks sank the most in 18 months leading the declines. Profit taking looks to be the order of the day as the S&P 500 has climbed 0.6% in December alone after a better than expected economic expansion.
The S&P 500 dropped 0.5% to settle at 2,080.35 while Dow Jones Industrial Average declined 0.3% or 55.16 points to close at 17,983.07

 

[adie]

Gold Market Daily Commentary 31/12/14

Overnight Market
•Gold price Rebound to Highest in Week on Weaker Dollar
•Greece Failed to Elect a President and Expected to hold early election – triggering more uncertainties
•Global Equities Pullback from Recent Santa Rally adds support to Gold prices
•Japan Currency Yen appreciate the most among 31 major peers on Bank of Japan (BOJ) move to increase length of maturity in Government Bonds
•Bullion Heading for Quarterly Loss with the U.S. Dollar Reaching a five-year high this month
•Gold Year-end Rally Surprises Funds Lowering Bets
•China's Gold Imports Seen by Wing Fung Stabliizing Next Year

BURSA Gold 5 minute Chart

Local Gold futures traded at Bursa Malaysia Derivatives settled lower tracking overnight losses in Chicago Gold futures. The spot December contract which expires on Wednesday decline 25 cents to close at RM 133.25 per gram while January 2015 contract also decline 25 cents to settle at RM 134.40 per gram.
Market manages to move above the 5 days MA (133.90) as the U.S. Gold recovers during Asia trading hour and is now tracking the 10 days MA (134.45) Taking cues from stronger benchmark Gold closing overnight, we expect market to open higher targeting resistance of 20 days MA (135.00). Resistance seen at 135.15 and 135.70 while support should peg at 133.90 and 133.70

COMEX Gold 5 minute Chart

COMEX gold futures surges to its highest level in more than a week as demand for bullion as alternative assets were boosted with decline in world equities and a weakening greenback. The U.S. Dollar decline first in three sessions also came as Europe plunges into another uncertainty with Greece set to enter fresh early election on January 25th.
Market action overnight saw prices moved above the USD 1,200 per troy ounce once again after the plunge on 22nd December 2014 though was unable to sustain at day high. The most active February contract closed 1.57% higher at USD 1,200.40 per troy ounce. It reached a day high of 1,210.9 before falling off towards closing forming a long upper shadow which could mean unsustainable buying strength. Stochastic reading maintains though a weakening selling momentum while RSI very much at neutral level. Daily MACD has yet to indicate a buying crossover while the converging daily MA10 to MA 40 might trigger a selling crossover. Caution thus is warranted for Long position holder with support placed at key 1,200 level. Resistance is seen at MA 20 at 1,200.40 and 1,210.80 while support should peg at 1,200.0 and at MA 40 line 1,190.50

 

[adie]

Malaysia Daily 31/12/14

MARKET STRATEGY
MY Strategy: Neutral
December fund flows
•MYR2.8b foreign net sell in December, MYR6.8b YTD.
•We continue to advocate a defensive strategy for equities.
•No change in our market, sector and stock views/calls.

COMPANY UPDATE
AirAsia Bhd: Buy (Under Review)
Rest in peace, flight QZ8501
•Debris and human bodies are spotted off the Straits of Karimata and is confirmed to be that of flight QZ8501.
•Efforts to retrieve all victims and search for the final resting place of the aircraft is still on-going, should be fairly soon.
•Our earnings forecasts for AirAsia, BUY call and target price remain under review.

Other Local News
Telekom Malaysia (TM): Gets submarine cable contract. TM has won The Sistem Kabel Rakyat 1 Malaysia (SKR1M) contract to build a submarine cable system spanning 3,500km with an initial capacity of four terabit per second. The project will be established through a public-private partnership between the Malaysian Communications and Multimedia Commission (MCMC) with SKR1M expected to start carrying commercial traffic by mid-2017. (Source: The New Straits Times)

UEM Sunrise: In tie-up with edotco. UEM Sunrise through its wholly-owned subsidiary, UEM Land has signed a collaboration agreement with edotco, an integrated telecommunications infrastructure services company. The collaboration includes the joint identification by the two companies of potential sites in Nusajaya for communication towers and structures for mobile network operators (MNOs), wireless service providers, radio and television broadcast companies. (Source: The New Straits Times) In a separate filing, UEM Sunrise's proposed development of Motorsports City in Nusajaya will now cover a land area of 300 acres (121ha) instead of the 270 acres that were originally proposed in 2012. (Source: The Edge Financial Daily)

Hap Seng Consolidated: To buy 51% of Singapore-listed Hafary for SGD52.5m. Hap Seng Consolidated through its wholly-owned subsidiary, Hap Seng Investment Holdings Pte Ltd has a made a voluntary partial cash offer to acquire 51% of Singapore-based Hafary Holdings Ltd at 24 cents (63 sen) per share or SGD52.5m (MYR139.07m). (Source: The Edge Financial Daily)

Outside Malaysia
U.S: Consumer confidence rose in December as Americans embraced more employment opportunities and persistent declines in prices at the gas pump. The Conference Board's index increased to 92.6 from a revised 91 in November that was stronger than initially estimated. A measure of current conditions advanced to the highest in almost seven years. (Source: Bloomberg)

U.S: Home prices in 20 American cities rose at a slower pace in the year ended in October, putting the market on better footing heading into 2015. The S&P/Case-Shiller index of property values increased 4.5% from October 2013, the smallest gain in two years, after rising 4.8% in the year ended in September, a report from the group showed. Nationally, prices rose 4.6% after a 4.8% gain in the year ended in September. (Source: Bloomberg)

U.K: House-price growth slowed to its weakest in more than a year in December, adding to evidence that the market for residential property is cooling. The annual gain in value dropped to 7.2% from 8.5% in November, the lowest rate since November 2013 and the fourth consecutive slowdown, Nationwide Building Society said. Prices rose 0.2% on the month for a third straight increase. (Source: Bloomberg)

Japan: Will cut the tax rate on corporate income by 3.29 percentage points over two years to encourage companies to raise wages and boost investment, at a cost of about JPY 400b (USD 3.3b) in revenue over the period. Company income tax will drop by 2.51 percentage points in the fiscal year starting April and a further 0.78 percentage points the next year, according to the ruling coalition's tax plan, released in Tokyo. The government also plans tax-free investment accounts for children and an expansion of tax-free donations to relatives. (Source: Bloomberg)

 

[adie]

Futures Crude Palm Oil 31/12/14

Technical Outlook
CPO March futures opened high at RM 2,300 touched the day high at RM 2,305 and the day low at RM 2,283 before closing with a total slipped of 2 points at RM 2,283. Total volume of 39,969 lots was traded with open interest at 166,539 contracts held.
Although stockpile concern could possibly push the market further up, however, ahead of the holiday, investors are likely to unwind their position which subsequently caused the market to fail to sustain above at RM 2,300 and fell to the day low at RM 2,283 on the last hour of the trading hour. We could possibly see that the strong resistance of RM 2,300 is still intact in the market, however on the concern of the flood in Malaysia, it is likely to break above of RM 2,300 in a matter of time.
Palm oil has gained for consecutively for 8 days, and the small fell of yesterday could signal that the market is likely to take a breather to retrace a little before going up further again. The market is still well supported at the 20 SMA placed at RM 2,201 at this moment. The first market support is currently placed at RM 2,252 further down to RM 2,238 and the market resistance is placed at RM 2,300 further up to RM 2,345.

Palm Oil
(Bloomberg) -- Palm oil output in Malaysia will decline this month and next as severe flooding disrupts harvesting in the largest exporter after Indonesia, exacerbating a seasonal drop in production. The price rally pared an annual loss spurred by the collapse in global energy prices, which hurt biofuel demand.
FCPO for March 2015 delivery lost RM2 or 0.09%, ended little changed at 2,284 ringgit a ton on Bursa Malaysia Derivatives. Palm last traded above that price in July.Production in the first 20 days of December fell 21 percent, with supply from Peninsula Malaysia declining in about 27 percent.
Soybean Oil
The Brazilian and global soybean production in the 2014/15 season might be a record. Besides the area increase, estimates indicate, at least for a while, that Brazil might register the second highest yield in history. Argentina might also have a record crop in 2015 and the United States had, in 2014, the highest crop ever. Therefore, world soybean stocks might increase, even with the consumption also increasing. Therefore, quotes in 2015, at least in dollar, might operate below those observed in 2014.
Soybean oil for March15 delivery earned 0.14 cents or 0.43% to settle at 33.07.

 

[mie_amour]

sy newbies..nk blaja ttg cpo..updatelah lagi..

 

[kenanga_pg]

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