Thursday, May 21, 2009

Trader's Highlight

DJI - NEW YORK, May 20 - U.S. stocks fell on Wednesday, led by financials in a late-stage sell-off, after the Federal Reserve gave a more pessimistic view on the economy, tempering hopes for a quick recovery.

The Fed cut its 2009 forecast for gross domestic product and raised its outlook for unemployment, undercutting recent optimism that the economy might be turning the corner.

The Dow Jones industrial average fell 52.57 points, or 0.62 percent, at 8,422.28. The Standard & Poor's 500 Index lost 4.64 points, or 0.51 percent, at 903.49. The Nasdaq Composite Index was off 6.70 points, or 0.39 percent,
at 1,727.84.

NYMEX - NEW YORK, May 20 - U.S. crude futures surged to a six-month high above $62 a barrel on Wednesday, rallying after government inventory data showed larger-than-forecast drawdowns in crude and gasoline supplies last week.

The data from the Energy Information Administration validated the industry group American Petroleum Institute's report on Tuesday that crude and gasoline supplies fell sharply last week.

On the New York Mercantile Exchange, front-month July crude settled up $1.94, or 3.23 percent, at $62.04 a barrel, the highest settlement since Nov. 11's $62.41. It traded from $59.86 to $62.14, the highest since $62.28 was struck, also on Nov. 11. In post-settlement trading, the day's high rose to $62.26.

CBOT - SOYBEAN
- July up 7 cents at $11.69. Shrinking supplies of soybeans, low yields in South America and ongoing buying of soy by China lifting soybean futures to near an eight-month high.


CBOT - SOYOIL
- July up 0.20 cent per lb at 38.37. Following soybeans with firm crude oil also supportive.

FCPO - JAKARTA, May 20 - Malaysian palm futures dropped 1.0 percent on Wednesday as investors booked profits, with strong Malaysian palm product export figures meeting expectations, giving no fresh incentives to buy, traders said.

News about Indonesia's plan to impose a 3 percent tax on crude palm oil exports in June, after a seven-month freeze, also failed to support the market, as investors were in profit-taking mood, they said.

The benchmark August contract dropped 28 ringgit to 2,602 ringgit ($736.06) per tonne. Overall volume was more than double the usual at 24,927 lots of 25 tonnes each.

REGIONAL EQUITIES - BANGKOK, May 20 - Southeast Asian stock markets extended recent gains on Wednesday, shrugging off a drop on Wall Street thanks to strong foreign fund flows, while oil above $60 a barrel lifted Thai energy firm PTT and Malaysia's IOI Corp.

Singapore's Straits Times Index rose 0.4 percent, adding to a 3.8 percent gain a day earlier, Kuala Lumpur gained 1.9 percent, and Philippine stocks added 1 percent.
Thailand edged up 0.9 percent and Vietnam added 2.4 percent. Jakarta bucked the trend although it only lost 0.02 percent.

DJI Daily: Struggling


Market was struggling as prices remains in rangy mode. Thus, we maintain immediate downside support at 8000. To the upside, resistance is maintain at 8600-8700.

KLSE Daily: Malaysia Boleh


A double digit gain with a fresh new high for the year proved that 'Malaysia Boleh'. Market looks may continue to rally in near term. Thus, we now looking for the upside resistance at 1050. To the downside, support is pegged at 1017-1012 (gap left over on 19/5/2009).

FKLI Daily: Superb


A convincing breakout to close at fresh year high had helped to maintain the bullish tone. As for now, we look for the upside resistance at 1050. To the downside, we maintain the support at 1013.1006.5 (gap left over on 19/5/2009).

FCPO Daily: Under pressure


Market looks under pressure after prices tested the 2600 mark support in intra-day basis. We currently maintain our sideways view towards the near term market. As for now, we are now looking for the upside resistance at 2655-2665. To the downside, support is pegged at 2515-2500.