Tuesday, October 14, 2008
Trader's Comment: CPO futures prices gave up some of its earlier gains to end firm
CPO futures prices gave up some of its earlier gains to end firm. Global effort to stabilise financial market had spillover to commodities market. Benchmark Dec 08 initially opened RM 35 higher at 1870 following rebound in overnight CBOT soyoil and steadier NYMEX crude oil. Short covering activities sent Dec 08 surged to the intra-day high at 1902 before closing RM 45 higher at 1880 by midday break. However, lack of follow through buying interest in afternoon session saw prices eased off to the low at 1825 before late push-up to settle at 1850, up RM 15. Total daily volume stood at 14,569 contracts changed hands.
FCPO Daily: ended firm
Market ended firm at above 1800 mark after testing the intra-day high at 1902. Market looks may enter to a consolidation phase in near term. We now look for the upside resistance at 1902-1934 (gap left over since 6th Oct, 2008). For downside, support remained at 1725
FKLI Daily: Tounch n Go at 984.5
Market eased off after touched the high at 984.5. Looks market may due for correction in near term. We continue to look for the support at 928.5. For upside, resistance remained at 980-985.
KLSE Daily: in correction mood
Market tested the upside gap leftover on 10 Oct,2008 at 952-976 intra-day basis but not closing. Near term, market may due for correction. We looks for the upside resistance at 976. While, downside support is pegged at 963-949 (gap left over today).
Breaking News-RTRS-Malaysia banks can weatherglobal turmoil
KUALA LUMPUR, Oct 14 (Reuters) - The Malaysian financial sector is strong enough to weather the global turmoil, and its banking and insurance industries have adequate capital and liquidity, the central bank said on Tuesday.
Bank Negara Malaysia also said in a statement that it was ready to provide liquidity to financial institutions, where necessary.
Bank Negara Malaysia also said in a statement that it was ready to provide liquidity to financial institutions, where necessary.
Breaking News-RTRS-Ben Bernanke says US plan to help restore markets
SINGAPORE, Oct 14 (Reuters) - Federal Reserve Chairman Ben Bernanke said new U.S. measures to shore up the financial system would help restore normality to markets.
Bernanke, writing an editorial in the Wall Street Journal, did not give details of the plan, due to be announced later on Tuesday.
"These steps will allow us to restore more normal market functioning, and encourage private capital to further support the reinvigoration of financial markets," Bernanke wrote in the editorial published on the Wall Street Journal's web site.
People familiar with the plan said on Monday the United States plans to inject $250 billion in U.S. banks in a new bid to calm rattled markets, with about half going to the country's top nine institutions.
Bernanke, writing an editorial in the Wall Street Journal, did not give details of the plan, due to be announced later on Tuesday.
"These steps will allow us to restore more normal market functioning, and encourage private capital to further support the reinvigoration of financial markets," Bernanke wrote in the editorial published on the Wall Street Journal's web site.
People familiar with the plan said on Monday the United States plans to inject $250 billion in U.S. banks in a new bid to calm rattled markets, with about half going to the country's top nine institutions.
Breaking News-RTRS-NOPA Sept soy crush estimated at 122 mln bu
CHICAGO, Oct 13 (Reuters) - National Oilseed Processors Association monthly crush data to be released on Tuesday morning should show a September U.S. soybean crush near 122 million bushels, analysts said on Monday.
Estimates ranged from 121 million to 123.5 million bushels and compare to NOPA's August soy crush figure of 121.7 million.
Analysts' expected NOPA soyoil stocks to be down 195 million to 225 million lbs from its August stocks figure of 2.152 billion lbs.
Estimates ranged from 121 million to 123.5 million bushels and compare to NOPA's August soy crush figure of 121.7 million.
Analysts' expected NOPA soyoil stocks to be down 195 million to 225 million lbs from its August stocks figure of 2.152 billion lbs.
Trader's Highlight
DJI-NEW YORK, Oct 13 (Reuters) - Wall Street roared back from its worst week ever with one of its best single days ever on Monday, as governments pledged to pour cash into struggling banks to restore confidence in a rocky global financial system.
The U.S. Federal Reserve, the European Central Bank, the Bank of England and the Swiss National Bank also said they would lend commercial banks as much U.S. dollar liquidity as they needed to ease clogged interbank lending rates. The S&P financial index <.GSPF> shot up 10.23 percent.
The Dow Jones industrial average <.DJI> rose 936.42 points, or 11.08 percent, to 9,387.61, its biggest one-day point gain ever and its biggest percentage gain since March 15, 1933.
The Standard & Poor's 500 Index <.SPX> also notched its best single-day point gain, up 104.13 points, or 11.58 percent, to 1,003.35. The Nasdaq Composite Index <.IXIC> was up 194.74 points, or 11.81 percent, at 1,844.25, its biggest one-day point gain since January 2001.
NYMEX-NEW YORK, Oct 13 (Reuters) - U.S. crude futures rose on Monday, bouncing with global stock markets revived by concerted government actions to stabilize the banking sector.
A stronger euro versus the dollar and a report of less crude going to Europe from Saudi Arabia also provided lift,after demand fears and the global stock market slide last week helped push oil futures to 13-month lows.
On the New York Mercantile Exchange, November crude settled up $3.49, or 4.49 percent, at $81.19 a barrel,trading from $79.45 to $82.52.
CBOT-SOYBEANS - November up 18 cents at $9.28 per bushel,January up 18 at $9.43-1/2.
Short-covering bounce as global government efforts to pump money into the clogged banking system cool recession fears.Market also rebounding from oversold conditions after 13-month lows and Friday's limit-down close.
NOPA to release September crush data on Tuesday; average trade estimate around 122 million bushels.
CBOT-SOYOIL - October up 2.40 cents at 38.90 cents per lb, December up 1.92 at 39.21 cents.
Following soybeans and crude oil higher after a limit-down close on Friday.
FCPO-JAKARTA, Oct 13 (Reuters) - Malaysian palm oil futures closed 3.5 percent higher on Monday on a rebound, after hitting a 23-month low on Friday, supported by crude oil price rise, some traders said.
A Malaysian government move to raise the annual export quota for crude palm oil by 50 percent, in an attempt to ease surging inventory that has hurt prices, lent some support to the market, dealers said.
The benchmark December contract on the Bursa Malaysia Derivatives Exchange rose 62 ringgit to 1,835 ringgit ($524) a tonne.
REGIONAL EQUITIES-SINGAPORE, Oct 13 (Reuters) - Singapore and Thai stock markets marked record gains Monday on government efforts worldwide to ease the credit crunch and stave off a global recession.
Singapore <.FTSTI> jumped 6.57 percent, its biggest single-day percentage gain ever.
While Thai stocks <.SETI> rose 5.39 percent, its best performance since December 2006.
Malaysian shares <.KLSE>gained 1.8 percent and the Philippine index <.PSI> rose 1 percent but Vietnam <.VNI> slid for a seventh consecutive day, losing 2
percent.
Analysts said the region's markets will continue to track U.S and other Asian shares and much depends on whether tightness in credit markets ease, but recovery might be more tricky for those markets plagued by domestic political uncertainty, such as
Thailand and Malaysia.
The U.S. Federal Reserve, the European Central Bank, the Bank of England and the Swiss National Bank also said they would lend commercial banks as much U.S. dollar liquidity as they needed to ease clogged interbank lending rates. The S&P financial index <.GSPF> shot up 10.23 percent.
The Dow Jones industrial average <.DJI> rose 936.42 points, or 11.08 percent, to 9,387.61, its biggest one-day point gain ever and its biggest percentage gain since March 15, 1933.
The Standard & Poor's 500 Index <.SPX> also notched its best single-day point gain, up 104.13 points, or 11.58 percent, to 1,003.35. The Nasdaq Composite Index <.IXIC> was up 194.74 points, or 11.81 percent, at 1,844.25, its biggest one-day point gain since January 2001.
NYMEX-NEW YORK, Oct 13 (Reuters) - U.S. crude futures rose on Monday, bouncing with global stock markets revived by concerted government actions to stabilize the banking sector.
A stronger euro versus the dollar and a report of less crude going to Europe from Saudi Arabia also provided lift,after demand fears and the global stock market slide last week helped push oil futures to 13-month lows.
On the New York Mercantile Exchange, November crude
CBOT-SOYBEANS - November
Short-covering bounce as global government efforts to pump money into the clogged banking system cool recession fears.Market also rebounding from oversold conditions after 13-month lows and Friday's limit-down close.
NOPA to release September crush data on Tuesday; average trade estimate around 122 million bushels.
CBOT-SOYOIL - October
Following soybeans and crude oil higher after a limit-down close on Friday.
FCPO-JAKARTA, Oct 13 (Reuters) - Malaysian palm oil futures closed 3.5 percent higher on Monday on a rebound, after hitting a 23-month low on Friday, supported by crude oil price rise, some traders said.
A Malaysian government move to raise the annual export quota for crude palm oil by 50 percent, in an attempt to ease surging inventory that has hurt prices, lent some support to the market, dealers said.
The benchmark December contract
REGIONAL EQUITIES-SINGAPORE, Oct 13 (Reuters) - Singapore and Thai stock markets marked record gains Monday on government efforts worldwide to ease the credit crunch and stave off a global recession.
Singapore <.FTSTI> jumped 6.57 percent, its biggest single-day percentage gain ever.
While Thai stocks <.SETI> rose 5.39 percent, its best performance since December 2006.
Malaysian shares <.KLSE>gained 1.8 percent and the Philippine index <.PSI> rose 1 percent but Vietnam <.VNI> slid for a seventh consecutive day, losing 2
percent.
Analysts said the region's markets will continue to track U.S and other Asian shares and much depends on whether tightness in credit markets ease, but recovery might be more tricky for those markets plagued by domestic political uncertainty, such as
Thailand and Malaysia.
FCPO Daily: Bear took a breathe
Bear took a breathe after the recent strong sell down. Market managed to defend well and close firm at above 1800 level. Market looks may want to challenge again the upside gap left over since 6 Oct, 2008 at 1897-1934. while, support is pegged at 1725.
DJI Daily: biggest single day point gains
A super long white candle following prices rebounded and restored confidence from its worst week. Looks technical rebound may extend in near term with support and resistance is at 7882 and 9628 level respectively.
KLSE Daily: eyeing upside gap at 952-976
A long lower shadow candle printed had helped to cushion the market downside momentum. Looks may want to rebound and eyeing the upside gap left over on 10 Oct, 2008 at 952-976. While, downside support is pegged at 926.
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