KLSE Weekly: remained in bearish zone

KLSE weekly technical landscape remained in bearish atmosphere following prices broke the support at 1089-1090 and hit the year low at 1064.58. We now look for the resistance at 1141-1128. For downside, support is pegged at 1164.58-1149.88.

FCPO covered some of upside gap

FCPO rebound further to cover some of the upside gap at 2728-2767. For downside, support is at 2705-2653 (gap left over this morning).

FKLI end of consolidation phase

FKLI broke out from 1070 after few days stuck in range of 1046.5-1070.0. Market may want to challenge the resistance at 1090-1100. For downside, support is pegged at 1055-1056.

KLSE moving steady

KLSE is moving steady. We continue to look for immediate resistance and support at 1082-1083 and 1064.5-1065.5 level respectively.

Breaking News-RTRS-Indonesia will cut palm oil export taxes in September

JAKARTA, Aug 22 (Reuters) - Indonesia will cut palm oil export taxes in September to bring them in line with international prices, a senior trade official said on Friday.

The government will cut the palm oil export tax in September to 10 percent from 15 percent in August, while the base export price for crude palm oil will also be cut to $902 a tonne from $1,106 a tonne in August.

The new prices will be valid from Sept. 1 until the end of the month.

RTRS-Dollar falls broadly, financial sector jitters weigh

NEW YORK, Aug 21 (Reuters) - The dollar fell broadly on Thursday as worries of wider credit-related losses at some U.S. financial firms made investors abandon risky trades, igniting a rally in the yen and Swiss Franc.

The dollar fell as low as 108.14 yen .

Low yielding currencies such as the yen and Swiss franc tend to attract flows during periods of uncertainty as the low interest rates reflect the capital surplus of their respective countries.

Breaking News-RTRS-POLL-Malaysia inflation to climb, small chance of rate rise

KUALA LUMPUR, August 19 (Reuters) - Malaysia's annual inflation rate probably hit a 27-1/2-year high in July due to higher fuel and electricity tariffs, but analysts see only a small chance of an interest rate rise next week, a poll showed.

Consumer prices in July likely climbed 7.8 percent from a year earlier, the median forecast of the Reuters poll showed, the steepest rise since a gain of 8.2 percent in January 1981.

The median forecast of the poll of 13 economists placed the probability for a 25 basis point interest rate hike at 10 percent when the central bank meets on Aug. 25.

Five of the 13 polled ruled out a rate hike. Two said there was a 10 percent chance of an increase, six others placed the probability at 50 percent or more.

Trader's Highlight

DJI-NEW YORK, Aug 21 (Reuters) - The Dow and S&P 500 rose on Thursday as surging oil prices drove up energy shares, though fresh fears of more credit losses on Wall Street kept gains modest and pushed the Nasdaq into negative territory.

The Dow Jones industrial average <.DJI> was up 12.62 points, or 0.11 percent, at 11,430.05. The Standard & Poor's 500 Index <.SPX> was up 3.17 points, or 0.25 percent, at 1,277.71. The Nasdaq Composite Index <.IXIC> was down 8.70 points, or 0.36 percent, at 2,380.38.

NYMEX-NEW YORK, Aug 21 (Reuters) - U.S. crude oil futures ended more than $5 higher on Thursday, gaining for the fourth session in a row as a sliding dollar encouraged investors to buy
commodities.

On the New York Mercantile Exchange, October crude , the new front month, settled up $5.62, or 4.86 percent, at $121.18 per barrel, trading from $115.40 to $122.04.

CBOT-SOYBEANS - Up 47 to 57 cents per bushel, with September up 47-1/4 at $13.41 per bushel.Rallied to three-week high on climbing crude oil and gold as the dollar fell. Dry weather in U.S. Midwest also a concern. Argentine farm protests also supportive.

SOYOIL - Up 2.49 to the 2.50 cents per lb trading limit,with September up 2.49 at 55.56 cents per lb.Following soybeans, with market led by gains in crude oil as dollar falls.

FCPO-KUALA LUMPUR, Aug 21 (Reuters) - Malaysian crude palm oil futures jumped 3.1 percent on Thursday, hitting an eight-day high as crude oil gave a leg up to vegetable oil markets.

The benchmark November contract on the Bursa Malaysia Derivatives Exchange rose as much as 81 ringgit to 2,672 ringgit ($800) per tonne, a level unseen since August 12. The contract then settled up 62 ringgit at 2,653 ringgit.

REGIONAL EQUITIES-SINGAPORE, Aug 21 (Reuters) - Most Southeast Asian stocks edged lower on Thursday as U.S. financial sector woes weighed on banks and property plays.

Singapore <.FTSTI> fell 1.4 percent, while Thai stocks<.SETI> were 2 percent down. The Philippines <.PSI> also shed 0.9 percent, while Malaysia <.KLSE> was off 0.2 percent.

DJI in rangebound mode

DJI may extend its consolidation phase. We continue to look for the support at 11221-11210. For upside, resistance is at 11690-11700.

Trader's Comment:Strong external factors led CPO futures to climb higher

Strong external factors led CPO futures to climb higher and trade above 2600 level. Positive rival soyoil prices trading in e-CBOT and steady crude oil as well as strong finish in Dalian provided the friendly sentiment at closed. Benchmark Nov08 settled RM62 higher at 2653 after trading between 2606 to 2672.

Rebound continue in FCPO

FCPO rebound further to stay above 2600 mark. Looks market may want to challenge the upside resistance at 2728-2767 (gap left over on 8-11th Aug, 2008). For downside, support is pegged at 2606-2594 (gap left over today).

FKLI trade in tight range

Market looks may extend its range bound trading between 1045.5-1070.

KLSE remained sideways move

Nothing much changes on the immediate daily technical outlook as prices remained in sideways move. Underlined support at 1050 defended well so far. For upside, resistance maintained at 1108-1111.

FCPO rebound further

FCPO rebound further to stay above 2600 mark. Market looks may want to challenge 2700 barrier. For downside, immediate support is at 2606-2594 (gap left over this morning).

FKLI stuck in range trading

FKLI stuck in the range between 1070-1046.5.

KLSE in consolidation mode

KLSE in range bound trading. We continue to look for immediate resistance and support at 1082-1083 and 1064.5-1065.5 level respectively.

Breaking news-RTRS-Pakistan Palm Oil Cash Mkt Defaults Likely Low -Exec

KUALA LUMPUR (Dow Jones)--Pakistan's defaults and washed out palm oil purchase contracts in the past two weeks were unlikely to have involved large volumes, according to a senior industry executive.

The total would "have been a maximum of 40,000 tons," Nasir Ibrahim, director of Sadiq Vegetable Ghee Mills, a Lahore-based firm, said late Tuesday.

Last week, exporters in Malaysia and Indonesia estimated Pakistan buyers renegotiated or washed out contracts totaling nearly 100,000 tons for shipment mostly between August and December.

Trader's Highlight

DJI-NEW YORK, Aug 20 (Reuters) - U.S. stocks rose on Wednesday as bank and energy shares rebounded even as investors dumped Fannie Mae and Freddie Mac on fears of an imminent government bailout of the housing finance companies.The Dow Jones industrial average <.DJI> was up 68.88 points, or 0.61 percent, at 11,417.43. The Standard & Poor's 500 Index <.SPX> was up 7.85 points, or 0.62 percent, at 1,274.54. The Nasdaq Composite Index <.IXIC> was up 4.72 points, or 0.20 percent, at 2,389.08.

NYMEX-NEW YORK, Aug 20 (Reuters) - U.S. crude oil futures ended higher on Wednesday on geopolitical worries following news of Russia's potential response to a the U.S.-Poland missile shield deal and news of a big drawdown in gasoline stocks.On the New York Mercantile Exchange, September crude expired and settled up 45 cents, or 0.39 percent, at $114.98 a barrel, after trading from $112.61 to $117.03.

CBOT-SOYBEANS - September up 26-3/4 cents at $12.93-3/4 per bushel, new-crop November up 24 at $13.00.Rallying on drier-than-desired crop weather in the Midwest
as the U.S. soybean crop continues its key pod-setting growth phase. Higher Asian vegoil markets and Argentine farm protests lend additional support.

SOYOIL - September up 0.69 at 53.07 cents per lb.Support from gains in soy.

FCPO-KUALA LUMPUR, Aug 20 (Reuters) - Malaysian crude palm oil futures jumped 6.5 percent on Wednesday to a one-week high but the outlook remained uncertain due to an upswing in production and talk of more defaults.The benchmark November contract on the Bursa Malaysia Derivatives Exchange rose as much as 158 ringgit to 2,594 ringgit ($779) per tonne, a level unseen since Aug. 14. The contract then settled up 2,591 ringgit.

REGIONAL EQUITIES-SINGAPORE, Aug 20 (Reuters) - Most Southeast Asian markets edged higher on Wednesday, rebounding from year-lows as gains in Chinese shares outweighed credit fears, but Thailand was weighed down by banks.

Chinese <.SSEC> shares surged on hopes Beijing would introduce a stimulus package, dragging Hong Kong <.HSI> higher and boosting equities around the region.

The Singapore index <.FTSTI> rose 0.9 percent, while Jakarta <.JKSE> added 1.3 percent, boosted by resource stocks. Malaysia<.KLSE> edged 0.4 percent up but Thai stocks <.SETI> dipped 0.2 percent.

DJI may continue to trade sideways to lower

DJI may continue to trade sideways to lower. We continue to look for the support at 11221-11210. For upside, resistance is at 11690-11700.

Trader's comment:CPO futures prices reversed from yesterday losses to end triple digit higher

CPO futures prices reversed from yesterday losses to end triple digit higher. Gains in overnight NYMEX crude oil coupled with retreat in USD/MYR had helped to underpin the market sentiment. Support also stemmed from stronger China’s Dalian commodities market and e-CBOT in Asian trading zone. Benchmark Nov 08 hit the intra-day low at 2467 after the opening bell at 2495, up RM 59. It then recovered to trigger 2526 before midday closing in positive territory at 2520. 1-20^th August export data released by private cargo surveyors were within market expectation. ITS pegged at 904,645 mt, up 8.5% whereas SGS put at 856,806 mt, up 7.8% compare the same period of last month. Short covering interest saw Nov 08 inching up higher in afternoon session following comments from Thomas Mielke editor-in-chief of Oil World, a Hamburg-based vegetable oils publication. He comments CPO prices are undervalued and not in line with fundamentals, and should recover in medium term. Nov 08 then rose to the high at 2594 before settling at 2591, up RM 155 with total volume stood at 13,040 contracts changed hands.