KLSE recouped from year low

KLSE hit year low at 1111.62 in intra-day basis but not closing. Market may consolidate in near term.

Market tone: weak

FKLI close in positive territory

Short covering activities were evident after prices hit the intra-day low at 1098.5 and stayed firm despite KLSE hit fresh year low. Market may consolidate in near term before downtrend resume. For now, look for the immediate resistance at 1125-1130. For downside, immediate support is at 1096 followed by 1083.

Market view: cover short position

FCPO broke support level between 3430-3435 level

Prices broke its support level between 3430-3435 in afternoon session. This had painted bearish picture in already weaken chart. Immediate target looks heading to 3306.

Short covering on FKLI

FKLI looks firm despite KLSE drop to year low at 1111.62.

Market view: cover short position

FCPO losing ground

FCPO erased early gains to end lower in midday break. Market momentum weakened further. As for now, continue to look for the support at 3430-3435, while upside resistance at 3521-3535 (gap left over on 16th July, 2008).

Fresh year low for KLSE

KLSE hourly hit fresh year low at 1115.20

Market tone: weak

FKLI remains under pressure

FKLI hourly off high.

Market view: hold short with buy stop adjusted to 1120-1125

Breaking news-Crude palm oil prices to rise in 2008/09-analyst

LONDON, July 16 (Reuters) - Crude palm oil prices should rise during 2008/09 with consumption growing at a faster pace than production, Standard Chartered analyst Abah Ofon said in a report on Wednesday.Ofon said production increases in Indonesia and Malaysia however, that tight export supplies of other edible oils such as sunflower oil and soyoil and the wide price discount for CPO boosted exports during the first half of 2008.
"In the near term, high energy prices and freight costs will provide some support as will spillover gains from the soy complex on account of tight stocks in the US and crush delays in Argentina," he said. Ofon said biodiesel demand could now be the weakest part in the overall demand picture with the rising cost of edible oils slowing biodiesel output growth in a number of producers, including Europe.

Trader's Highlight

DJI-NEW YORK, July 16 (Reuters) - U.S. stocks jumped on Wednesday after strong results at Wells Fargo fueled a powerful rally in the battered banking sector and an unexpected leap in U.S. crude supplies led oil prices to fall sharply.The Dow Jones industrial average <.DJI> rose 276.74 points, or 2.52 percent, to 11,239.28. The Standard & Poor's 500 Index <.SPX> gained 30.43 points, or 2.50 percent, to 1,245.34. The Nasdaq Composite Index <.IXIC> added 69.14 points, or 3.12 percent, at 2,284.85.

Data showed U.S. consumer price inflation accelerated to an annual rate of 5 percent in June -- the biggest year-on-year rise since 1991 and well above economists' forecasts -- and U.S. government debt prices fell sharply.

NYMEX-NEW YORK, July 16 (Reuters) - U.S. crude oil futures ended lower for the second day in a row on Wednesday as government inventory data showed surprise increases in crude and gasoline stocks and a larger-than-expected build in distillates. August crude was down $4.14, or 2.98 percent, at $134.60 a barrel, trading between $132, which was the lowest price since June 25, and $139.30.

CBOT-SOYBEANS - August up 31 at $15.73 per bushel,new-crop November up 32 at $15.48.Turned higher on trade talk of forecasts indicating possible hotter and drier weather in the U.S. Midwest that may hamper growth and development of the 2008 soy crop. Support also from concern about Argentine farm protests tied to the government's soy export tax. Market oversold and due for a short-covering bounce.

SOYOIL - August up 1.06 cents per lb at 64.09 cents per lb. Following soybeans in volatile Midwest weather market.

FCPO-KUALA LUMPUR, July 16 (Reuters) - Malaysian crude palm oil futures lost 2.6 percent on Wednesday as investors fretted over the lack of momentum in export growth while crude oil fell overnight.

Regional equities-July 16 (Reuters) - Most Southeast Asian stock markets eased on Wednesday, dented by worsening global economic conditions and a sharp pullback in oil prices which weighed on energy shares such as Thailand's PTT PCL .Malaysia <.KLSE> edged 0.7 percent lower and the Philippine index <.PSI> fell 1.6 percent, but Singapore <.FTSTI> and Indonesia <.JKSE> performed better, inching 0.2 percent up.

Breaking news-DJ SEC's "Naked" Short Rule May Hurt All Short Sales

NEW YORK, July 16 (Dow Jones) --The Securities and Exchange Commission's efforts to close a loophole allowing "naked" short-selling of stock will create a headache for brokers and clients seeking to make legitimate bearish bets. Starting Monday, the SEC will require that traders have formal arrangements in place to borrow shares before shorting Fannie Mae (FNM), Freddie Mac (FRE) and 17 other financial institutions. The biggest effect may be to create an extra step for the broker-dealers that facilitate short sales by clients and thereby slow down the pace by making the market less efficient.

DJI posts biggest one-day advance since April 1

DJI rebound after day before close below 11,000 mark. However, immediate daily technical outlook remains bearish as prices stayed below downtrend line zone.