Tuesday, September 23, 2008
Trader's Comment: Proft taking after recent strong rebound
Profit taking after recent strong rebound led CPO futures to end lower. Earlier benchmark Dec 08 prices rallied to hit intra-day high at 2404, again driven by another strong closing in NYMEx crude oil and CBOT soyoil. However, lack of follow through buying support provided the excuse for the bulls to profit take. This sent prices slump to 2277 in the afternoon session. Later, it hovering between 2285-2310 before it settled RM 39 lower at 2305. Market may want to take a little breather after recent strong rebound. Total daily volume stood at 17,746 contracts changed hands.
FCPO Daily: facing resistance at 2400 mark
Market facing resistance at 2400 mark after few attempts failed to stay firm above 2400 levels. Consolidation phase may extend in near term. We look for the immediate resistance at 2400-2414 followed by the 2427-2451 (gap left over on 9 Sept, 2008). For downside, support is at 2200 followed by 2151-2138.
FKLI Daily: range trading
Market weakened a little as prices failed to stay firm at higher end. Market likely to continue its consolidation phase in near term. For upside, resistance remained at 1036-1039. Downside support is at 1005-1000.
KLSE Daily: stuck in range 1000-1040
Market stuck in range bound mode, struggling around 1000-1040 levels. We continue to look for the resistance at 1039-1040 while downside support is pegged at 998-1001.
FCPO Hourly: 2400 mark Touch n GO
Market looks facing immediate resistance at 2400 mark after few attempts failed to stay firm above 2400 mark. We remained the upside resistance at 2427-2452 (gap left over on 9 Sept, 2008). Downside support is pegged at 2200.
KLSE Hourly: stuck in range bound mode
Market stuck in range trading. We now looking for upside resistance at 1040-1042 (remaining gap left over on 15 Sept, 2008). Downside support is pegged at 1009-1008.
Trader's Highlight
DJI-NEW YORK, Sept 22 (Reuters) - U.S. stocks tumbled on Monday as investors worried a $700 billion bailout for the financial sector may not resuscitate a slumping economy, while a record spike in oil prices renewed concern about consumer spending.
The Dow Jones industrial average <.DJI> dropped 372.75 points, or 3.27 percent, to 11,015.69. The Standard & Poor's 500 Index <.SPX> slid 47.99 points, or 3.82 percent, to 1,207.09. The Nasdaq Composite Index <.IXIC> fell 94.92 points, or 4.17 percent, to 2,178.98.
The Bush administration is pressing Congress to approve one of the costliest U.S. bailouts for financial companies since the Great Depression, but debate about the particulars of the plan continues on Capitol Hill. A top Congressional Democrat on Monday said Treasury had agreed to take an equity stake in the firms that unload assets under the rescue plan, though other details remain unclear.
NYMEX-NEW YORK, Sept 22 (Reuters) - U.S. crude oil futures surged to end nearly 16 percent higher on Monday as the weak dollar and a financial rescue plan seen as inflationary sent the expiring October crude contract surging to its biggest one-day gain on record in volatile trading.
Crude rocketed to $130 per barrel intraday, a jump of $25.45 or 24.3 percent."The move is in response to the dollar, with the rescue plan being seen as inflationary, making commodities a hedge against the dollar, at least in the short term," said Phil Flynn, analyst at Alaron Trading in Chicago.
On the New York Mercantile Exchange, expiring October crude rose $16.37, or 15.65 percent, to settle at $120.92 per barrel, trading from $103.35 to $130.NYMEX November crude rose only $6.62, or 6.44 percent, to settle at $109.37 a barrel, trading from $101.98 to $110.45.
CBOT-SOYBEANS - November up 61-1/2 cents at $12.05 per bushel, January up 62-3/4 at $12.22.
Sharply higher on dollar weakness and gains in gold, crude oil and soyoil after news the U.S. government plans to bail out the financial sector; plan seen as boosting inflation. Back months climb the 70-cent daily limit.
SOYOIL - October up 2.63 cents at 49.55 cents per lb.Following as crude oil futures soar. Higher global vegoil markets add support. Trading limits expanded to 3.5 cents per lb for Monday's session.
FCPO-JAKARTA, Sept 22 (Reuters) - Malaysian crude palm oil futures rose more than 3 percent on Monday as a crude oil rally helped allay fears of slowing demand.
The benchmark December contract finished up 85 ringgit, or 3.76 percent, at 2,344 ringgit ($744) a tonne.
REGIONAL EQUITY-Asian stock markets rose after more details about the U.S. government's $700 billion crisis solution encouraged bargain hunting, but questions lingered about long-term implications and the economic outlook.
Vietnam's Ho Chi Minh Stock Exchange index <.VNI> up 4.74% had its biggest daily gain since March 2008, following the government's comment that inflation in September would slow. Singapore's Straits Times index <.FTSTI> fell 0.6 percent. Thai shares <.SETI> lost 1.7 percent.
The Dow Jones industrial average <.DJI> dropped 372.75 points, or 3.27 percent, to 11,015.69. The Standard & Poor's 500 Index <.SPX> slid 47.99 points, or 3.82 percent, to 1,207.09. The Nasdaq Composite Index <.IXIC> fell 94.92 points, or 4.17 percent, to 2,178.98.
The Bush administration is pressing Congress to approve one of the costliest U.S. bailouts for financial companies since the Great Depression, but debate about the particulars of the plan continues on Capitol Hill. A top Congressional Democrat on Monday said Treasury had agreed to take an equity stake in the firms that unload assets under the rescue plan, though other details remain unclear.
NYMEX-NEW YORK, Sept 22 (Reuters) - U.S. crude oil futures surged to end nearly 16 percent higher on Monday as the weak dollar and a financial rescue plan seen as inflationary sent the expiring October crude contract surging to its biggest one-day gain on record in volatile trading.
Crude rocketed to $130 per barrel intraday, a jump of $25.45 or 24.3 percent."The move is in response to the dollar, with the rescue plan being seen as inflationary, making commodities a hedge against the dollar, at least in the short term," said Phil Flynn, analyst at Alaron Trading in Chicago.
On the New York Mercantile Exchange, expiring October crude
CBOT-SOYBEANS - November
Sharply higher on dollar weakness and gains in gold, crude oil and soyoil after news the U.S. government plans to bail out the financial sector; plan seen as boosting inflation. Back months climb the 70-cent daily limit.
SOYOIL - October
FCPO-JAKARTA, Sept 22 (Reuters) - Malaysian crude palm oil futures rose more than 3 percent on Monday as a crude oil rally helped allay fears of slowing demand.
The benchmark December contract
REGIONAL EQUITY-Asian stock markets rose after more details about the U.S. government's $700 billion crisis solution encouraged bargain hunting, but questions lingered about long-term implications and the economic outlook.
Vietnam's Ho Chi Minh Stock Exchange index <.VNI> up 4.74% had its biggest daily gain since March 2008, following the government's comment that inflation in September would slow. Singapore's Straits Times index <.FTSTI> fell 0.6 percent. Thai shares <.SETI> lost 1.7 percent.
DJI Daily: gave up some of the gains after two days rebound
Market gave up some of its gains after two days rebound. Looks may enter to a consolidation phase in near term market. We currently is looking for the upside resistance at 11570-11590. While, immediate downside support is at 10827-10742.
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