Trader's Comment: CPO futures surrender some gains to finish off high on pre-weekend profit taking activities

Pre-weekend profit taking after last few session of good rebound saw CPO futures to surrender some gains to finish off high. Benchmark Nov08 prices rallied to hit intra-day high at 2753 boosted by short-covering and speculative buying following a hefty gains in overnight CBOT and strong crude oil prices in NYMEX. It ease off and tumbled to hit 2688 in last hour of trading. Later, it settled RM62 higher at 2715.

FCPO Weekly: rebound after steep fall

Market rebound with a long white candle and violated the resistance at 2728 after a steep fall to the year low at 2351. We now look for the immediate support at 2351-2314. While, resistance is at 2838-2897.

FKLI Weekly: 1045.5-1050.0 defended well

Market violated the 1st underline support at 1086.5-1083 and tested the next support at 1045.5-1050.0 in daily basis and it managed to defend well. However, immediate daily technical landscape remained in bearish zone as market still struggle below the downtrend line. We now look at the support at 1050.0-1045.5. For upside, resistance is at 1133.5-1146.5

KLSE Weekly: remained in bearish zone

KLSE weekly technical landscape remained in bearish atmosphere following prices broke the support at 1089-1090 and hit the year low at 1064.58. We now look for the resistance at 1141-1128. For downside, support is pegged at 1164.58-1149.88.

FCPO covered some of upside gap

FCPO rebound further to cover some of the upside gap at 2728-2767. For downside, support is at 2705-2653 (gap left over this morning).

FKLI end of consolidation phase

FKLI broke out from 1070 after few days stuck in range of 1046.5-1070.0. Market may want to challenge the resistance at 1090-1100. For downside, support is pegged at 1055-1056.

KLSE moving steady

KLSE is moving steady. We continue to look for immediate resistance and support at 1082-1083 and 1064.5-1065.5 level respectively.

Breaking News-RTRS-Indonesia will cut palm oil export taxes in September

JAKARTA, Aug 22 (Reuters) - Indonesia will cut palm oil export taxes in September to bring them in line with international prices, a senior trade official said on Friday.

The government will cut the palm oil export tax in September to 10 percent from 15 percent in August, while the base export price for crude palm oil will also be cut to $902 a tonne from $1,106 a tonne in August.

The new prices will be valid from Sept. 1 until the end of the month.

RTRS-Dollar falls broadly, financial sector jitters weigh

NEW YORK, Aug 21 (Reuters) - The dollar fell broadly on Thursday as worries of wider credit-related losses at some U.S. financial firms made investors abandon risky trades, igniting a rally in the yen and Swiss Franc.

The dollar fell as low as 108.14 yen .

Low yielding currencies such as the yen and Swiss franc tend to attract flows during periods of uncertainty as the low interest rates reflect the capital surplus of their respective countries.

Breaking News-RTRS-POLL-Malaysia inflation to climb, small chance of rate rise

KUALA LUMPUR, August 19 (Reuters) - Malaysia's annual inflation rate probably hit a 27-1/2-year high in July due to higher fuel and electricity tariffs, but analysts see only a small chance of an interest rate rise next week, a poll showed.

Consumer prices in July likely climbed 7.8 percent from a year earlier, the median forecast of the Reuters poll showed, the steepest rise since a gain of 8.2 percent in January 1981.

The median forecast of the poll of 13 economists placed the probability for a 25 basis point interest rate hike at 10 percent when the central bank meets on Aug. 25.

Five of the 13 polled ruled out a rate hike. Two said there was a 10 percent chance of an increase, six others placed the probability at 50 percent or more.

Trader's Highlight

DJI-NEW YORK, Aug 21 (Reuters) - The Dow and S&P 500 rose on Thursday as surging oil prices drove up energy shares, though fresh fears of more credit losses on Wall Street kept gains modest and pushed the Nasdaq into negative territory.

The Dow Jones industrial average <.DJI> was up 12.62 points, or 0.11 percent, at 11,430.05. The Standard & Poor's 500 Index <.SPX> was up 3.17 points, or 0.25 percent, at 1,277.71. The Nasdaq Composite Index <.IXIC> was down 8.70 points, or 0.36 percent, at 2,380.38.

NYMEX-NEW YORK, Aug 21 (Reuters) - U.S. crude oil futures ended more than $5 higher on Thursday, gaining for the fourth session in a row as a sliding dollar encouraged investors to buy
commodities.

On the New York Mercantile Exchange, October crude , the new front month, settled up $5.62, or 4.86 percent, at $121.18 per barrel, trading from $115.40 to $122.04.

CBOT-SOYBEANS - Up 47 to 57 cents per bushel, with September up 47-1/4 at $13.41 per bushel.Rallied to three-week high on climbing crude oil and gold as the dollar fell. Dry weather in U.S. Midwest also a concern. Argentine farm protests also supportive.

SOYOIL - Up 2.49 to the 2.50 cents per lb trading limit,with September up 2.49 at 55.56 cents per lb.Following soybeans, with market led by gains in crude oil as dollar falls.

FCPO-KUALA LUMPUR, Aug 21 (Reuters) - Malaysian crude palm oil futures jumped 3.1 percent on Thursday, hitting an eight-day high as crude oil gave a leg up to vegetable oil markets.

The benchmark November contract on the Bursa Malaysia Derivatives Exchange rose as much as 81 ringgit to 2,672 ringgit ($800) per tonne, a level unseen since August 12. The contract then settled up 62 ringgit at 2,653 ringgit.

REGIONAL EQUITIES-SINGAPORE, Aug 21 (Reuters) - Most Southeast Asian stocks edged lower on Thursday as U.S. financial sector woes weighed on banks and property plays.

Singapore <.FTSTI> fell 1.4 percent, while Thai stocks<.SETI> were 2 percent down. The Philippines <.PSI> also shed 0.9 percent, while Malaysia <.KLSE> was off 0.2 percent.

DJI in rangebound mode

DJI may extend its consolidation phase. We continue to look for the support at 11221-11210. For upside, resistance is at 11690-11700.