Bear took a breathe

Bear took a breathe as shown in KLSE daily technical chart with printed a long white candle. Market may want to cover the gap left over on 4th July, 2008 at 1138.03-1153.33. For downside, look at the support at 1119.97 (new low for the year 2008).

FKLI rebounded on technical short term oversold

FKLI reversed from yesterday's losses to end in positive territory. Market may extend its reversion due to short term technical oversold. Currently, look for the gap left over on 3rd Jul, 2008 at 1132-1137.5. Downside support is at 1083 (new low for year 2008).

Market view: hold short with buy stop at 1122.

FCPO rebounded after recent steep fall

A white candle portrait following market ended with double digit up had cushioned the recent steep fall. The weak daily technical landscape looks neutralised a little. Market may look for a range to consolidate in near term. Thus, we continue to look for the resistance at 3595-3614 (gap left over on 7th July, 2008). While, support is pegged at 3439.

FCPO short term technically oversold

Market broke down after a brief consolidation. Short term technically had grossly oversold and looking for a range to consolidate.

Market tone: weak

Breaking News-Indonesia aims to introduce mandatory 2.5 pct palm-biodiesel mix in September this year-Official

Midday Update

Regional equities-July 9 (Reuters) - The U.S. dollar fell and Asian stocks surrendered some gains on Wednesday, after a report that Iran tested a missile that could reach Israel, raising concerns this week's $9 dip in oil prices is only fleeting.

Breaking News-Reuters Poll-Malaysia's June palm stocks seen at new 25 yr high

Malaysia end-June palm oil stocks seen at new 25-year high, up 9.8 pct from May-Reuters Poll
Malaysia's June palm oil output seen up 4.9 pct from May-Poll
Malaysia's June palm oil exports seen down 3.4 pct from May-Poll

FKLI rebounded

FKLI gap up after the opening bell. It then consolidate with immediate resistance at 1121.5. While, immediate support at 1093-1099 (gap leftover this morning).

Market view: hold short with buy stop at 1122.

KLSE in consolidation mode

KLSE was in consolidation phase as shown in above hourly chart.

Market tone: weak

Breaking News-EU panel votes to lower controversial biofuel goal

STRASBOURG, July 8 (Reuters) - European Union lawmakers took a first step towards lowering EU biofuels targets when a European Parliament panel backed a proposal to draw just 4 percent of road transport fuels from renewable sources by 2015.

The EU plans to get 10 percent of road transport fuel from renewable sources such as biofuels by 2020, but the target has been attacked by environmentalists, who say it contributes to rising food prices and deforestation.

Breaking News-Palm/soy oil price spread cannot hold-Oil World

HAMBURG, July 8 (Reuters) - The surge in soy oil prices to 35-year highs in the past days has created a huge price difference against palm oil, which cannot be sustained, Hamburg-based oilseeds analysts Oil World said on Tuesday.

Palm oil has been quoted as much as $400 a tonne below soy oil in global markets in the past week against only $70 to $80 a tonne a year ago, it said.

"This price discrepancy is unsustainable as it will cause a massive shift of demand from soy to palm oil," it said.

"Still, soy oil will stay at a significant premium over palm oil owing to its much lower production growth."

Oil World said soy oil prices had been largely driven upward by speculative buying on U.S. futures markets and concern over whether U.S. old and new crop soybean supplies will be adequate.

"In contrast, palm oil prices were mostly influenced by the slowdown of Malaysian palm oil exports in June, which implies an accumulation of record stocks in Malaysian tanks," it said.

There were some bullish arguments for a rise in the U.S. soy oil prices "but the magnitude of the price rally was difficult to understand, to say the least," it said.

Soy oil price rises in recent days were probably overdone and a downward correction was likely, it added.

Trader's Highlight

DJI-NEW YORK, July 8 (Reuters) - U.S. stocks rose in another turbulent session on Tuesday as a pullback in oil prices eased worries about consumer and business spending, while financial shares gained after the Fed chairman said he may keep open a lifeline for banks.Financial shares climbed after Federal Reserve Chairman Ben Bernanke said in a speech that the U.S. central bank may extend emergency lending facilities for big Wall Street banks past year-end, showing the Fed is determined to stop the housing-inspired credit crisis from wreaking further havoc on the economy.

The Dow Jones industrial average <.DJI> jumped 152.25 points, or 1.36 percent, at 11,384.21, while the Standard & Poor's 500 Index <.SPX> gained 21.39 points, or 1.71 percent, to 1,273.70.
The Nasdaq Composite Index <.IXIC> rose 51.10 points, or 2.28 percent, at 2,294.42, snapping a 3-day losing streak.

NYMEX-NEW YORK, July 8 (Reuters) - U.S. crude oil futures fell for a second day in a row on Tuesday, ending nearly 4 percent lower on pressure from a stronger dollar and forecasts that eased worries about Hurricane Bertha.On the New York Mercantile Exchange, August crude settled $5.33 lower, or 3.77 percent, at $136.04 a barrel, trading from $135.14 to $142.44.

CBOT-CHICAGO, July 8 (Reuters) - Chicago Board of Trade grains and soy complex closing on Tuesday.

SOYBEANS - July down 28 cents at $15.61 per bushel, new-crop November down 31-1/2 at $15.29-1/2.Recovering some from early sell-off. Better weather in U.S. Midwest, improved crop conditions and drop in crude oil weigh.

Soybeans trading with expanded daily limit of $1.05.

Brazil's Agriculture Ministry left its 2007/08 soybean crop estimate at a record 59.8 million tonnes, unchanged from June.

SOYOIL -July down 1.51 cent at 63.38 cents per lb. Following soybeans and declining crude oil prices.

FCPO-KUALA LUMPUR, July 8 (Reuters) - Malaysian crude palm oil futures dropped 1.7 percent further on Tuesday as fears of a build-up in stocks and declining soy oil prices depressed the market.The benchmark September contract on the Bursa Malaysia Derivatives Exchange settled down 58 ringgit to 3,454 ringgit ($1,060) per tonne after diving more than 3 percent the previous day.

Regional Equities-Asian stocks tumbled after big declines in the shares of U.S. mortgage providers reminded investors that global credit markets are not out of the woods yet, with Hong Kong <.HSI> down 3 percent. Other losers included Indonesia <.JKSE>, which gave up 1.1 percent and Malaysia <.KLSE>, which shed half a percent, but Philippine shares <.PSI> bucked the trend to gain 1.5 percent, while Vietnam <.VNI> closed 0.2 percent up.

DJI rebounded after recent sharp drop

DJI rebounded yesterday after recent sharp drop. Nevertheless, overall technical landscape remains in bearish mode. Market may consolidate in near term.

Market tone: weak