Monday, July 27, 2009

Trader's Highlight

DJI-NEW YORK, July 24 (Reuters) - The Nasdaq fell on Friday, halting a 12-day run-up, following Microsoft Corp's disappointing quarterly results, but gains in pharmaceutical and energy shares lifted the Dow and the S&P 500 to fresh
8-month closing highs.

The Dow Jones industrial average <.DJI> rose 23.95 points, or 0.26 percent, to 9,093.24. The Standard & Poor's 500 Index <.SPX> advanced 2.97 points, or 0.30 percent, to 979.26. But the Nasdaq Composite Index <.IXIC> shed 7.64 points, or 0.39
percent, to 1,965.96.

NYMEX-NEW YORK, July 24 (Reuters) - U.S. crude oil futures ended higher on Friday, settling above $68 a barrel after seesawing as optimism about economic recovery, supportive refined products futures and a weaker dollar lifted crude oil.

On the New York Mercantile Exchange, September crude rose 89 cents, or 1.33 percent, to settle at at $68.05 a barrel, trading from $66.46 to $68.18. The settlement was the highest since crude futures closed at $69.31 on July 1.

CBOT-SOYBEANS
- August down 2-1/2 cents at $10.21 a bushel. Tight stocks of soy support spot August contract but deferred months months down on talk USDA, in its August crop report, may trim its estimate for U.S. 2009 corn acres but increase its forecast for soy seedings. Profit taking also pressures market.

Trade expecting USDA to release a steady crop rating for soybeans late on Monday.

CBOT-SOYOIL
- August down 0.78 cent at 33.89 cents per lb. Following soybeans lower.

FCPO-KUALA LUMPUR, July 24 (Reuters) - Malaysian crude palm oil rose 1.1 percent on Friday as investors took long positions ahead of better export data next week, signalling that festival demand is gaining momentum.

Open interest rose to 81,000 lots from 73,000 lots at the start of the week as traders re-entered the market on expectations that July 1-25 Malaysian palm oil exports could hit 1.2 million tonnes, up 22 percent from the same period a month ago.

The benchmark October contract on Bursa Malaysia's Derivatives Exchange settled up 22 ringgit to 2,122 ringgit ($601) per tonne. Overall volume stood at 11,905 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, July 24 (Reuters) - Most Southeast Asian stock markets ended the week on a high note, with Indonesia scaling a one-year high and Singapore climbing to its highest in 10 months thanks to buying of resource and banking shares.

Singapore's index <.FTSTI> rose nearly 2 percent on Friday to its highest since Sept. 22, led by Singapore Exchange , which jumped 4.5 percent to a 14-month high, and commodity-related Noble Group , which surged 7.9 percent.

Malaysia's index <.KLSE> edged up 0.3 percent, building on a two-session gain of 1.53 percent, with lender Malayan Banking and Genting each rising 1.6 percent.

Bucking the trend, IOI Corp fell 2.4 percent after the country's second-largest palm oil producer said it was planning a rights issue to raise up to 1.22 billion ringgit ($339 million).

Trader's Comment: Late short-covering activities led CPO futures to end higher.

Late short-covering activities led CPO futures to end higher. Market was under selling pressure through out most of the session which tracking weaker eCBOT and Dalian palm & soy oil futures. Benchmark Oct09 prices slid to hit 2063 in the afternoon session and hovering between 2070-2080 level. Bargain hunting buying coupled with pre-weekend covering activities emerged in late trading sent prices in recovery mood and rebounding to 2134 before it settled RM22 higher at 2122. Talks that 1-25July export at 1.12-1.15 million tones which is higher compare to 1.01 million tones (ITS) & 983k tones (SGS) 1-25 June08. This also provided some support.

DJI Weekly: build up base


Immediate technical outlook strengthened further following a significant breakout from 9000 mark. However, market need to build up a base in order for a sustainable upward move. Thus, market may move in sideways bias to upside potential in near term. As for now, we are looking for the upside resistance at 9600-9800. While, downside support is pegged at 8100-8000.

KLSE Weekly: Bull run likely to continue


Market tested the resistance at 1160 and likely to continue rally in near term as overall technical landscape remains bullish. Immediate upside resistance is looking at 1165 followed by 1190-1200. Downside support is pegged at 1100-1095.

FKLI Weekly: May want to challenge 1200.


Up-trend remains intact and looks bull may want to challenge the upside resistance at 1200 mark. While, downside support is pegged at 1090.

FCPO Weekly: Market momentum remains weak


Market momentum remains weak despite prices rebounded from the weekly low to close at 2100 mark. Thus, technical correction may extend in near term. As for now, we are now looking for the immediate downside support at 2063 followed by 1964. To the upside, immediate resistance is at 2200 followed by 2295-2300.