Thursday, October 9, 2008
Trader's Comment: Several European banks agreed to cut interest rate and expecting a lower Sept08 production sent CPO futures to end sharply higher
Several European banks agreed to cut interest rate and talks that Sept08 production expected to be lower had prompted late covering interest and sent CPO futures to end sharply higher across the board. Market was trading in positive territory throughout the day except some sell off in the early part of the afternoon session due to talks that 1-10 Oct export likely to be lower by 10% at same period of Sept08. This leads benchmark Dec08 dips to 1810 but bargain hunter managed to provide some support and sent prices rebounding to hover between 1840 to 1860. Aggressive covering activities emerge in late trading and push prices to settle at intra-day high at 1890, up RM115 from yesterday's closed.
FCPO Daily: reverse from losing streak
Market reversed from losing streak to end triple digit higher. Near term, market may due for correction after the recent sell down. As for now, we look for the support at 1755 followed by 1690-1670. Upside resistance is at 1897-1934 (gap left over from 6/10/2008.
FKLI Daily: Oops! market may have chance to rebound
Market recovered and rebounded to close at day high with printed a long white body candle. Looks may have chance to rebound. We now look for support at 948. For upside, resistance is at 1000-1005.
KLSE Daily: defend
KLSE try hard to defend. We currently look for the support at 959.49 followed by 930-925. For upside, resistance is pegged at 998-995.
Breaking News-Asian Stocks Snap Five-Day Plunge After Interest-Rate Cuts
Asian Stocks Snap Five-Day Plunge After Interest-Rate Cuts
By Kyung Bok Cho
Enlarge Image/Details
Oct. 9 (Bloomberg) -- Asian stocks rose, snapping a five-day plunge, on speculation global interest-rate cuts may stimulate economic growth.
Japan's Nikkei 225 Stock Average rose 0.8 percent to 9,275.27. Yesterday it tumbled 9.4 percent, the most since global markets crashed in October 1987. Indonesia's market is suspended from trading following yesterday's 10 percent plunge.
By Kyung Bok Cho
Enlarge Image/Details
Oct. 9 (Bloomberg) -- Asian stocks rose, snapping a five-day plunge, on speculation global interest-rate cuts may stimulate economic growth.
Japan's Nikkei 225 Stock Average rose 0.8 percent to 9,275.27. Yesterday it tumbled 9.4 percent, the most since global markets crashed in October 1987. Indonesia's market is suspended from trading following yesterday's 10 percent plunge.
Breaking News-Most Asian Stocks Decline, Led by Commonwealth; Toyota Gains
Most Asian Stocks Decline, Led by Commonwealth; Toyota Gains
By Kyung Bok Cho
Oct. 9 (Bloomberg) -- Most Asian stocks fell as coordinated interest-rate cuts by the Federal Reserve and five other central banks failed to ease concerns of more bank failures.
Commonwealth Bank of Australia slid 7.9 percent after it sold A$2 billion ($1.34 billion) of stock at a discount to raise funds for its purchase of HBOS Plc's Australian units. Toyota Motor Corp. and Canon Inc. rose at least 2.4 percent after the yen weakened against the dollar for the first day in a week, stemming concern a stronger currency will cut the value of Japanese companies' overseas earnings.
The MSCI Asia Pacific Index dropped 0.2 percent to 91.20 as of 9:41 a.m. in Tokyo. The measure has lost 42 percent this year. It fell yesterday by the most since April 2, 1990.
Japan's Nikkei 225 Stock Average lost 0.2 percent to 9,160.27. Yesterday it tumbled 9.4 percent, the most since global markets crashed in October 1987. Stocks declined in Australia and South Korea.
By Kyung Bok Cho
Oct. 9 (Bloomberg) -- Most Asian stocks fell as coordinated interest-rate cuts by the Federal Reserve and five other central banks failed to ease concerns of more bank failures.
Commonwealth Bank of Australia slid 7.9 percent after it sold A$2 billion ($1.34 billion) of stock at a discount to raise funds for its purchase of HBOS Plc's Australian units. Toyota Motor Corp. and Canon Inc. rose at least 2.4 percent after the yen weakened against the dollar for the first day in a week, stemming concern a stronger currency will cut the value of Japanese companies' overseas earnings.
The MSCI Asia Pacific Index dropped 0.2 percent to 91.20 as of 9:41 a.m. in Tokyo. The measure has lost 42 percent this year. It fell yesterday by the most since April 2, 1990.
Japan's Nikkei 225 Stock Average lost 0.2 percent to 9,160.27. Yesterday it tumbled 9.4 percent, the most since global markets crashed in October 1987. Stocks declined in Australia and South Korea.
Breaking News-RTRS-OPEC floats oil supply cut, weighs early meeting
LAGOS/DUBAI, Oct 8 (Reuters) - OPEC may need to cut oil output to bolster prices, oil ministers said Wednesday as the exporter group discussed holding an emergency meeting to discuss the impact of the financial crisis.
The group plans to meet on Nov. 18 in Vienna, Algerian state news agency APS reported, quoting an unnamed source.
The group plans to meet on Nov. 18 in Vienna, Algerian state news agency APS reported, quoting an unnamed source.
Breaking News-RTRS-Brazil's 08/09 soy crops seen at 60.10-61.27 mln T-govt
SAO PAULO, Oct 8 (Reuters) - Brazil's 2008/09 (Oct/Sept) soybean crop was estimated at a record 60.10-61.27 million tonnes, up from last season's 60.02 million tonnes, the Agriculture Ministry said Wednesday.
In its first estimate for the country's grains production, the government's National Crop Supply Agency (Conab) said the corn crop would fall to 55.03-55.98 million tonnes from 58.6 million last season.
In its first estimate for the country's grains production, the government's National Crop Supply Agency (Conab) said the corn crop would fall to 55.03-55.98 million tonnes from 58.6 million last season.
Breaking News-RTRS-Indonesia's 2009 palm biodiesel use seen at 1-1.2 mT
JAKARTA, Oct 8 (Reuters) - Indonesia may consume 1 million to 1.2 million tonnes of biodiesel using palm oil as feed stock in 2009, following the introduction of a mandatory biofuel policy, a government official said on Wednesday.
Breaking News-RTRS-Malaysia to replace PM in March amid challenges
KUALA LUMPUR, Sept 25 (Reuters) - Malaysia is to get a new prime minister in March as the government seeks to hold onto its 51-year grip on power at a time when economic growth is slowing sharply and the opposition is pressing hard.
Prime Minister Abdullah Ahmad Badawi, who led the government to its worst ever election result and will become the shortest lived Malaysian leader, said he would not stand in a party election next year, effectively ceding power to his deputy.
Prime Minister Abdullah Ahmad Badawi, who led the government to its worst ever election result and will become the shortest lived Malaysian leader, said he would not stand in a party election next year, effectively ceding power to his deputy.
Trader's Highlight
DJI-NEW YORK, Oct 8 (Reuters) -U.S. stocks fell for a sixth straight session on Wednesday, as a coordinated worldwide cut in interest rates failed to alleviate fears about a global recession.
For the Dow and the S&P 500, Wednesday capped their biggest six-day point loss ever. It was a session of wild swings, with no clear direction determined until the final minutes. Wall Street's favorite measure of investor fear, the Chicago Board Options Exchange Volatility Index <.VIX>, hit a record intraday high and closed at yet another record.
During the session, the Dow swung 433.29 points from its session low at 9,194.78 to its intraday peak at 9,628.07 in extremely volatile trading. The Nasdaq's arc from its session low at 1,706.86 to the day's high covered 100.03 points, while the S&P 500 ran 50.09 points from its session low at 970.97 to intraday high above 1,000 in a day of whiplash moves.
NYMEX-NEW YORK, Oct 8 (Reuters) - U.S. crude oil futures ended with pared losses on Wednesday, helped by a rebound on Wall Street where investors scoured the market for bargains.
The day's losses were also curbed by news that OPEC may need to cut oil output to bolster prices and that OPEC oil ministers were talking of an emergency meeting in November to discuss the impact of the financial crisis.
On the New York Mercantile Exchange, November crude settled down $1.11, or 1.23 percent, at $88.95 a barrel,trading from $86.05 to $90.99. The day's low was the lowest since $85.82 was struck on Dec. 6, 2007.
CBOT-SOYBEANS - November up 38 cents at $9.64 per bushel,January up 38-1/4 at $9.79-1/4.
Rallied after spot month fell to a near 13-month low; firm cash markets noted as falling prices and Midwest rains stall harvest selling. Talk of short-covering as traders exit long Dalian/short CBOT soy spreads adds support.
Prospects for USDA early Friday to release a bullish U.S. soy production and stocks number and Argentine farmer strike lending support to soy.
Brazil 2008/09 soybean crop seen at record 60.10 million to 61.27 million tonnes, versus 60.02 million tonnes in 2007/08- government.
SOYOIL - October down 0.01 cent at 39.40 cents per lb, December down 0.05 cent at 39.77 cents.Pressured by lower crude oil.
FCPO-KUALA LUMPUR, Oct 8 (Reuters) - Malaysian crude palm oil futures dived 5.1 percent to notch fresh 22-month lows on Wednesday as investors dumped commodity assets across the board in the biggest financial crisis since the Great Depression.
Palm oil tumbled along with vegetable oils in Asia after mineral oil, a main input cost that also faces competition from grains and oilseed in energy use, dropped as much $4 to about $86 per barrel.
The benchmark December contract on the Bursa Malaysia Derivatives Exchange fell as much as 95 ringgit to 1,755 ringgit ($502) per tonne, a level unseen since Nov 17. 2006 before settling down 75 ringgit at 1,775 ringgit a tonne.
REGIONAL EQUITY-SINGAPORE, Oct 8 (Reuters) - Southeast Asian stock markets slid to new multi-year lows on Wednesday as investors sold on fears the world could be facing its worst economic and financial crisis since the Great Depression.
Indonesian shares <.JKSE> fell by 10.4 percent in early trade to hit its lowest level in two years before the stock exchange halted trading for an indefinite period. Singapore <.FTSTI> dived 6.6 percent to its lowest in three and a half years to close at 2,033 points.
The Philippine index <.PSI> slid 4.8 percent, Vietnam <.VNI> dropped 4.8 percent and Malaysia <.KLSE> outperformed the region closing down 2.7 percent.
For the Dow and the S&P 500, Wednesday capped their biggest six-day point loss ever. It was a session of wild swings, with no clear direction determined until the final minutes. Wall Street's favorite measure of investor fear, the Chicago Board Options Exchange Volatility Index <.VIX>, hit a record intraday high and closed at yet another record.
During the session, the Dow swung 433.29 points from its session low at 9,194.78 to its intraday peak at 9,628.07 in extremely volatile trading. The Nasdaq's arc from its session low at 1,706.86 to the day's high covered 100.03 points, while the S&P 500 ran 50.09 points from its session low at 970.97 to intraday high above 1,000 in a day of whiplash moves.
NYMEX-NEW YORK, Oct 8 (Reuters) - U.S. crude oil futures ended with pared losses on Wednesday, helped by a rebound on Wall Street where investors scoured the market for bargains.
The day's losses were also curbed by news that OPEC may need to cut oil output to bolster prices and that OPEC oil ministers were talking of an emergency meeting in November to discuss the impact of the financial crisis.
On the New York Mercantile Exchange, November crude
CBOT-SOYBEANS - November
Rallied after spot month fell to a near 13-month low; firm cash markets noted as falling prices and Midwest rains stall harvest selling. Talk of short-covering as traders exit long Dalian/short CBOT soy spreads adds support.
Prospects for USDA early Friday to release a bullish U.S. soy production and stocks number and Argentine farmer strike lending support to soy.
Brazil 2008/09 soybean crop seen at record 60.10 million to 61.27 million tonnes, versus 60.02 million tonnes in 2007/08- government.
SOYOIL - October
FCPO-KUALA LUMPUR, Oct 8 (Reuters) - Malaysian crude palm oil futures dived 5.1 percent to notch fresh 22-month lows on Wednesday as investors dumped commodity assets across the board in the biggest financial crisis since the Great Depression.
Palm oil tumbled along with vegetable oils in Asia after mineral oil, a main input cost that also faces competition from grains and oilseed in energy use, dropped as much $4 to about $86 per barrel.
The benchmark December contract
REGIONAL EQUITY-SINGAPORE, Oct 8 (Reuters) - Southeast Asian stock markets slid to new multi-year lows on Wednesday as investors sold on fears the world could be facing its worst economic and financial crisis since the Great Depression.
Indonesian shares <.JKSE> fell by 10.4 percent in early trade to hit its lowest level in two years before the stock exchange halted trading for an indefinite period. Singapore <.FTSTI> dived 6.6 percent to its lowest in three and a half years to close at 2,033 points.
The Philippine index <.PSI> slid 4.8 percent, Vietnam <.VNI> dropped 4.8 percent and Malaysia <.KLSE> outperformed the region closing down 2.7 percent.
DJI Daily: six straight days losses
DJI fell for six straight days and violated the support at 9390-9350. Bearish mode likely to continue in near term. We now look for the support at 8930-8680. While, upside resistance is at 10130.
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