Wednesday, October 8, 2008
Trader's Comment: CPO futures surrendered earlier gains to end broadly lower
CPO futures surrendered earlier gains to end broadly lower dragged down by regional weaken stock market and easier e-CBOT as well as lower NYMEX crude oil trading in Asian time zone. Market sentiment turn weak in the afternoon session as regional stock market tumble. This prompted speculative selling and intra-day long liquidation. Soyoil trading in e-CBOT from positive to negative also further pressure the market sentiment. Benchmark Dec08 price tumbled to 1755 before it recovered some ground to setlle RM75 lower at 1775. Potential of piling-up end month stocks remain concern by market players.
FCPO Daily: fresh low AGAIN !
Market tumbled with another fresh low again had weighed on already ugly technical landscape. As for now, we look for the support at 1690-1670. Upside resistance is at 1897-1934 (gap left over from 6/10/2008).
FKLI Daily: hit near two years LOW
Market dived to almost hit near two-years low. Thus, we look for the support at 930-935. Immediate upside resistance is at 1000-1005.
KLSE Daily: CRASH
KLSE violated the support at 963.29 and dipped to new low since Sept 2006 at 959.49. We currently look for the support at 930-925. For upside, resistance is pegged at 998-995.
Trader's Highlight
DJI-NEW YORK, Oct 7 (Reuters) - U.S. stocks tumbled for a fifth straight session on Tuesday, capping the Dow's biggest five-day point loss ever, as fears mounted that the rapidly spreading credit crisis would drag the economy into a deep recession.
Federal Reserve Chairman Ben Bernanke did little to reassure markets when he cautioned that downside risks to economic growth have worsened, though he did signal a readiness to lower interest rates. An earlier move by the Federal Reserve to unclog the commercial paper market, which companies use to fund their day-to-day operations, gave the stock market only a fleeting boost.
The Dow Jones industrial average <.DJI> fell 508.39 points, or 5.11 percent, to 9,447.11. The blue-chip Dow has lost more than 1,400 points over the past five sessions, or nearly 13 percent of its value, according to Reuters data.
The Standard & Poor's 500 Index <.SPX> dropped 60.66 points, or 5.74 percent, to 996.23 -- the first time the benchmark index has closed below the 1,000 level in more than five years. The drop was the S&P 500's biggest five-day percentage decline since the 1987 crash.
The Nasdaq Composite Index <.IXIC> slid 108.08 points, or 5.80 percent, to 1,754.88.
NYMEX-NEW YORK, Oct 7 (Reuters) - U.S. crude oil futures ended higher on Tuesday, rebounding after four losing sessions though well off early highs hit after Australia's central bank cut its benchmark interest rate, lifting some global markets.
On the New York Mercantile Exchange, November crude settled up $2.25, or 2.56 percent, at $90.06 a barrel, trading from $87.87 to $93.02. It fell to an eight-month low of $87.56 on Monday, lowest since $86.24 was struck on Feb. 7.
CBOT-SOYBEANS - November up 4 cents at $9.26 per bushel, January up 2-1/2 at $9.41.
Short-covering bounce after Monday's limit-down close sent the spot contract to a near one-year low, leaving prices oversold. Additional support from a farmer strike in Argentina.
Daily trading limits expanded to $1.05 per bushel for Tuesday's trading session.
SOYOIL - October up 0.11 cent at 39.41 cents per lb;December down 0.18 at 39.82 cents.
Technical bounce after sharp declines on Monday; strength in crude oil adds support.
Daily trading limits expanded to 3.5 cents per lb. for Tuesday's trading session.
FCPO-JAKARTA, Oct 7 (Reuters) - Malaysian palm oil futures closed up 1.65 percent on Tuesday on short-covering, but came off the day's high on a late sell-off as sentiment remained weak on demand concerns, some traders said.
The benchmark December contract on the Bursa Malaysia Derivatives exchange closed up 30 ringgit, at 1,850 ringgit a tonne, off a high of 1,893 ringgit, after slumping by 9 percent the previous day.
REGIONAL EQUITY-SINGAPORE, Oct 7 (Reuters) - Southeast Asian stock markets were mostly lower on Tuesday as the global credit crisis deepened, with Thai shares further burdened by domestic political strife.World stocks remained under pressure Tuesday after talk of government funding hit UK banks.
Thailand <.SETI> slid 4.2 percent as the resignation of the government's top negotiator with opposition protesters marked a new low. But Singapore shares <.FTSTI> gained as much as 2 percent on news of a 100-basis-point interest rate cut in Australia.
Malaysia <.KLSE> closed flat. Elsewhere, Indonesia <.JKSE> fell 1.8 percent, the
Philippines <.PSI> slid 3 percent, while Vietnam <.VNI> fell a 4.5 percent to its lowest since early July.
Federal Reserve Chairman Ben Bernanke did little to reassure markets when he cautioned that downside risks to economic growth have worsened, though he did signal a readiness to lower interest rates. An earlier move by the Federal Reserve to unclog the commercial paper market, which companies use to fund their day-to-day operations, gave the stock market only a fleeting boost.
The Dow Jones industrial average <.DJI> fell 508.39 points, or 5.11 percent, to 9,447.11. The blue-chip Dow has lost more than 1,400 points over the past five sessions, or nearly 13 percent of its value, according to Reuters data.
The Standard & Poor's 500 Index <.SPX> dropped 60.66 points, or 5.74 percent, to 996.23 -- the first time the benchmark index has closed below the 1,000 level in more than five years. The drop was the S&P 500's biggest five-day percentage decline since the 1987 crash.
The Nasdaq Composite Index <.IXIC> slid 108.08 points, or 5.80 percent, to 1,754.88.
NYMEX-NEW YORK, Oct 7 (Reuters) - U.S. crude oil futures ended higher on Tuesday, rebounding after four losing sessions though well off early highs hit after Australia's central bank cut its benchmark interest rate, lifting some global markets.
On the New York Mercantile Exchange, November crude
CBOT-SOYBEANS - November
Short-covering bounce after Monday's limit-down close sent the spot contract to a near one-year low, leaving prices oversold. Additional support from a farmer strike in Argentina.
Daily trading limits expanded to $1.05 per bushel for Tuesday's trading session.
SOYOIL - October
Technical bounce after sharp declines on Monday; strength in crude oil adds support.
Daily trading limits expanded to 3.5 cents per lb. for Tuesday's trading session.
FCPO-JAKARTA, Oct 7 (Reuters) - Malaysian palm oil futures closed up 1.65 percent on Tuesday on short-covering, but came off the day's high on a late sell-off as sentiment remained weak on demand concerns, some traders said.
The benchmark December contract
REGIONAL EQUITY-SINGAPORE, Oct 7 (Reuters) - Southeast Asian stock markets were mostly lower on Tuesday as the global credit crisis deepened, with Thai shares further burdened by domestic political strife.World stocks remained under pressure Tuesday after talk of government funding hit UK banks.
Thailand <.SETI> slid 4.2 percent as the resignation of the government's top negotiator with opposition protesters marked a new low. But Singapore shares <.FTSTI> gained as much as 2 percent on news of a 100-basis-point interest rate cut in Australia.
Malaysia <.KLSE> closed flat. Elsewhere, Indonesia <.JKSE> fell 1.8 percent, the
Philippines <.PSI> slid 3 percent, while Vietnam <.VNI> fell a 4.5 percent to its lowest since early July.
DJI Daily: sinking
DJI extended losses with printed another long black candle. Market likely to continue its downward move in near term. We continue to look for the support at 9390-9350. While, upside resistance is at 10320-10310.
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