Announcement: BURSA close on 27th Oct, 2008 (Monday)

Please be informed that BMD will be closed on 27th October, 2008 (Monday) in conjunction with Deepavali.

BMD will resume trading on 28th October, 2008 (Tuesday).

Wishing You A Happy Deepavali

& Happy Holiday

FCPO Daily: another fresh low at 1475

Market hits another fresh low at 1475 in intra-day basis after immediate support at 1510-1500 violated completely. We currently look for the support at 1400-1380. Resistance is at 1635-1639 (gap left over yesterday).

Trader's Comment: Malaysia CPO futures ended in a negative territory after a volatile trading day.

Malaysia CPO futures ended in a negative territory after a volatile trading day. Benchmark Jan09 open RM76 lower at 1489, as overnight crude oil futures hit a fresh 16-month low at $66.75, after government data showed higher than expected domestic stocks level, and also the limit down in CBOT soy oil. The price then bounced back and hit the morning high of 1539, but failed in its attempt to cover yesterday’s left over gap. Prices were immediately hammered down to intra day low at 1475, following Dalian soy oil hitting its 5% limit down again for the second consecutive day. But after lunch break, players began to speculate that oil producer countries would decide to cut their oil output during tomorrow’s meeting, hence pushed up the price to hit intra day high at 1586. Nevertheless, the “bull” is not yet strong enough to change the sentiment of fear and uncertainty in the market. Benchmark Jan09 retreated from the high caused by some long liquidation activities and settled at 1550. Daily volume increased slightly, with 15,785 contracts changed hands.

KLSE: Fresh New Low at 880

KLSE has been sliding down to hit a fresh low at 880 with the recent low has been broken at 888 level and also the support at 883 level. For now, the support is pegged at 858-860 and the resistance is looking at 900 levels.

FKLI: Fresh New Low at 871.5

FKLI hit a fresh low at 871.5 after violated the recent low at 888. Market looks to survive at above 870 marks. Penetration of 870 levels may see next support at 841.5-845 level. For upside, immediate resistance is at 900 followed by 924.5-925.5.

Breaking News-RTRS-Indonesia cuts November palm oil export tax to 2.5 pct

JAKARTA, Oct 23 (Reuters) - Indonesia has cut its palm oil export tax for November to 2.5 percent from 7.5 percent in October, the country's trade ministry said on Thursday.

Breaking News-RTRS-India considering tax on veg oil imports -minister

NEW DELHI, Oct 22 (Reuters) - India is considering to tax vegetable oil imports to protect the domestic industry from a slump in prices and lift a ban on exports, the farm minister said on Wednesday.
The Solvent Extractors' Association of India (SEA), an apex body of vegetable oil traders, has asked the government to impose a 30 percent import duty on crude palm oil, 37.5 percent on RBD palmolein and 20 percent on crude soybean oil.
Pawar said the government would consider reimposing import tax on vegetable oils, allow exports and scrap export tax on basmati rice after Diwali, or the festival of lights, Oct. 28.

Trader's Highlight

DJI-NEW YORK, Oct 22 (Reuters) - The crisis that has stalked U.S. and European financial markets for a year slammed the developing world on Wednesday, knocking stock and commodity prices to multi-year lows and igniting greater fears of a global recession.

The Dow Jones industrial average <.DJI> closed down 514.45 points, or 5.69 percent, at 8,519.21. The Standard & Poor's 500 Index <.SPX> fell 58.27 points, or 6.10 percent, at 896.78. The Nasdaq Composite Index <.IXIC> slid 80.93 points, or 4.77 percent, at 1,615.75.

CBOT-SOYBEANS - November down 49 cents at $8.59 a bushel. Tumbled on mounting signs of global recession as stock markets and crude decline and dollar soars to two-year top.

U.S. Census to release September crush data Thursday.

CBOT-SOYOIL - December down 2.5 at 33.30 cents. Fall daily 2.5-cent limit as crude oil dives.

FCPO-KUALA LUMPUR/JAKARTA, Oct 22 (Reuters) - Malaysian crude palm oil futures prices fell over 5 percent on Wednesday to their lowest level since October 2006 amid a general selloff in commodities, spooked by the prospect of a global recession.

The benchmark January crude palm oil futures contract traded on Bursa Malaysia closed down 5.27 percent at 1,568 ringgit ($442.3) per tonne, having traded as low as 1,542 ringgit.

REGIONAL EQUITIES-SINGAPORE, Oct 22 (Reuters) - Southeast Asian stock markets slid further on Wednesday as investors fretted over poor earnings outlooks.

Singapore <.FTSTI> led the region's losses to fall 5.2 percent to its lowest close since August 2004, while Indonesian shares <.JKSE> slid 4.2 percent on banks to hit a 27-month low.

Thai stocks <.SETI> dropped 2.8 percent lower while Malaysia <.KLSE> shed 1.5 percent. The Philippine index <.PSI> gave up 1.1 percent and Vietnamese shares <.VNI> lost 1.3 percent.

DJI Daily: another wave of selling down

Support at 8718 was penetrated completed following another wave of selling down. We currently look for the support and resistance at 8197 and 9280-9300 level respectively.