KLSE Weekly: Try to hold ground

Market is trying to holding ground after filled up the downside gap at 901-897. We maintain our sideways to higher view in near term market. Currently, we continue to look for the upside resistance at 936. Downside support is pegged at 868-862.

FKLI Weekly: Remains sideways to higher posture

Market covered the downside gap at 903.5-901 and close weak. Nevertheless, market still stick to its sideways to higher posture. As for now, we are looking for the resistance at 942.5. Downside support is pegged at 865-860.

Trader's Comment: Market was still well defended as CPO futures managed to close above 1800 level

Market was still well defended as CPO futures managed to close above 1800 level despite being penetrated below 1800. Benchmark Apr09 hit intra day high of 1840 after opened RM29 higher at 1835 following overnight CBOT soy complex settled at positive territory despite the sharp drop in NYMEX crude oil. It then started to weaken as it moved down slowly until it hit the intra day low at 1790 in the early second session. Nevertheless, the emerged of pre-weekend short covering activities in late trading hour sent Benchmark Mar09 to bounce back again and it finally settled RM28 higher at 1833. Extended gains in eCBOT soy complex and some slight recovering of Asian time crude oil had provided supportive element in our local CPO market.

Breaking News-RTRS-China soy imports strong on high crushing margin-survey

BEIJING, Jan 16 (Reuters) - Chinese crushers have purchased as much as 1.5 million tonnes of soybeans in the first half of this month as crushers stepped up imports on rising domestic prices of soy products, according to an official survey
Crushing margins for soy plants have hit "the highest level" due to surging soymeal and soyoil prices ahead of the Lunar Chinese New Year, the China National Grain and Oils Information Centre (CNGOIC) said in a report.

Trader's Highlight

DJI-NEW YORK, Jan 15 (Reuters) - U.S. stocks rose on Thursday amid market optimism the government will act to prevent the year-long recession from deepening, offsetting news that Bank of America was seeking more government aid that had fueled worries about the health of the financial sector.

In response to indications that the recession is deepening, Democratic leaders in the U.S. House of Representatives unveiled an $825 billion tax cut and spending bill. After the closing bell, the U.S. Senate rejected an attempt to block the
release of the remaining $350 billion from the financial bailout fund.

The Dow Jones industrial average <.DJI> added 12.35 points, or 0.15 percent, to 8,212.49. The Standard & Poor's 500 Index <.SPX> rose 1.12 points, or 0.13 percent, to 843.74. The Nasdaq Composite Index <.IXIC> was up 22.20 points, or 1.49 percent,
at 1,511.84.

NYMEX-NEW YORK, Jan 15 (Reuters) - U.S. crude futures ended more than 5 percent lower on Thursday on a bleak OPEC global demand forecast, gloomy domestic economic mews and brimming domestic oil supplies. NYMEX February crude, which expires on Tuesday, sank to a new contract low, hitting the lowest level since prices hit the 2008 low of $32.40 on Dec. 19.

On the New York Mercantile Exchange, February crude settled down $1.88, or 5.04 percent, at $35.40 a barrel, trading from $33.20 and $37.99.

CBOT-SOYBEANS - March up 23 cents at $9.94-1/2 a bushel. Gained on Argentine crop worries as hot, dry weather forecast for next week. Strong Chinese demand for soybeans also supportive.

CBOT-SOYOIL - March up 0.35 cent at 34.40 cents per lb. Support from gains in soybeans. Drop in crude oil limited gains.

FCPO-KUALA LUMPUR, Jan 15 (Reuters) - Malaysian crude palm oil futures tumbled 4.1 percent on Thursday as investors cut some positions on slowing shipments and weak global soyoil markets.

The benchmark March contract on the Bursa Malaysia Derivatives Exchange settled down 78 ringgit at 1,806 Malaysian ringgit ($502.8) a tonne.

Other traded months fell between 45 and 83 ringgit <0#KPO:>. Overall trade stood at 10,935 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, Jan 15 (Reuters) - Stocks in Singapore, Indonesia and Thailand fell over 3 percent on Thursday, with others in the region also under selling pressure amid bleak global economic data and a deepening banking crisis in the United States.

In Singapore, the main stock index <.FTSTI> posted the largest fall in the Southeast region, ending 3.4 percent lower at its lowest in over a month.

In Kuala Lumpur, shares <.KLSE> ended down 1.8 percent after earlier falling 2.6 percent to a near two-week low, with telecoms leading decliners.Goldman Sachs has downgraded Telekom Malaysia and DiGi to 'sell'.

Trader's Comment: Palm oil futures surrendered its yesterday’s gain to end sharply lower on weak export.

Palm oil futures surrendered its yesterday’s gain to end sharply lower on weak export. Benchmark Mar09 opened RM61 lower at 1823 following the declined of overnight NYMEX crude oil and CBOT soy complex. It then hovered in a tight range of 1840-1810 level through out most of the sessions, fueled by a very low volume. The released of Jan1-15 export data by private cargo surveyors has further weaken the market sentiment after ITS and SGS posted a fall of 33% and 36% respectively. Benchmark Mar09 hit intra day high at 1844 in the second session but was immediately sold down again to intra day low of 1804 before it ended RM78 lower at 1806.

FCPO Daily: 1800 mark try hard to defend

Market again ended in negative territory yet 1800 mark was tried hard to defend. Chart wise market momentum turning weaker mode. Thus, market may move sideways to lower in near term. For now, we continue to look for downside support at 1800-1797 followed by 1738-1723. Upside resistance is at 1844-1856 (gap left over on 15/1/2009) followed by 1900.

DJI Daily: Ended 6 days losing streak

Market ended its six day losing streak with mild gain. Overall technical picture was still in bearish mode. Currently,immediate support is pegged at 8000-7880. Meanwhile, upside resistance maintain at 9000-8900.

KLSE Daily: Bear strike

Market gap down to end below 900 mark on bear strike. Immediate daily technical outlook weakened further and looks may move sideways to lower in near term market. Upside resistance is now at 907-910 (gap left over on 15/1/2009). While, downside support is pegged at 870-867.

FKLI Daily: 900 mark failed to hold

Market violated the physiological support at 900 mark had again dampened the immediate technical outlook. Bull looks failed to defend and market may move sideways to lower in near term. Thus, we are now looking for the downside support at 879.5-876 followed by 866-862.5. For upside, resistance is at 899.5-907 (gap left over on 15/1/2009).

Breaking News-RTRS-UPDATE 1-India's Dec qtr edible oil imports jump - trade

MUMBAI, Jan 14 (Reuters) - India's edible oil imports in the December quarter rose 80 percent from a year ago after a sharp drop in global prices and in anticipation of new import duties by the federal government, a leading trade body said on Wednesday.

Breaking News-RTRS-Brazil soy, corn crop forecasts pared back-AgraFNP

SAO PAULO, Jan 14 (Reuters) - Brazil's 2008/09 soybean crop forecast was pared back to 57.85 million tonnes from the 59.2 million tonnes estimated in December, due to drought in the southern grain belt, independent analyst AgraFNP said Wednesday.

Breaking News-RTRS-NOPA December soy crush estimated at 140.2 mln bu

CHICAGO, Jan 13 (Reuters)- National Oilseed Processors Association monthly crush data to be released Wednesday morning should show a December U.S. soybean crush near 140.2 million bushels, analysts said Tuesday.
Trade estimates ranged from 138.5 million to 142 million bushels and compare with NOPA's November soy crush figure of 139.4 million.
Analysts were mixed in their views whether NOPA would report a decline or increase in soyoil stocks. Estimates ranged from up 30 million lbs to down 60 million from its November stocks figure of 2.042 billion lbs.

Trader's Highlight

DJI-NEW YORK, Jan 14 (Reuters) - U.S. stocks fell to six-week lows on Wednesday on worries about steeper losses at banks worldwide and as U.S. retail sales data pointed to a deepening recession.

Highlighting the strain banks are under, The Wall Street Journal reported that the U.S. government is close to extending billions more aid to Bank of America Corp , sending the bank's stock lower after the bell.

Fears about the banking sector were exacerbated after Morgan Stanley analysts forecast HSBC , Europe's biggest bank, is likely to halve its dividend and may need to raise up to $30 billion of capital, while Germany's Deutsche Bank said it lost more than $6 billion last quarter.

The Dow Jones industrial average <.DJI> fell 248.42 points, or 2.94 percent, to 8,200.14. The Standard & Poor's 500 Index <.SPX> gave up 29.17 points, or 3.35 percent, at 842.62. The Nasdaq Composite Index <.IXIC> lost 56.82 points, or 3.67
percent, to 1,489.64.

NYMEX-NEW YORK, Jan 14 (Reuters) - U.S. crude oil futures ended lower on Wednesday, pressured by an unexpectedly large increase last week in distillate supplies which include heating oil and diesel fuel.

On the New York Mercantile Exchange, February crude settled at $37.28, down 50 cents, or 1.32 percent, after trading from $35.52 to $39.45. Options on the contract expired at the close.

CBOT-SOYBEANS - January expired 8-1/2 cents per bushel higher at $9.78, March unchanged at $9.71-1/2 a bushel.

Weak crude oil and tumbling stock market add pressure. Fears about heat and drought damaging the crop in Argentina, world's No. 3 soy exporter, lend support in volatile trade.

NOPA pegs U.S. December soy crush 134.787 million bushels, below average estimate for 140.2 million.

CBOT-SOYOIL - January expired down 0.60 cent per lb at 34.00 cents per lb, March down 0.78 cent at 34.05 cents a pound. Weakness in crude oil prices pressuring soyoil futures.

NOPA pegs U.S. December soyoil stocks 2.176 billion lbs versus November 2.042 billion.

FCPO-KUALA LUMPUR, Jan 14 (Reuters) - Malaysian crude palm oil futures gained nearly 3 percent on Wednesday after posting sharp losses the previous day, as some investors returned to global vegetable oil markets on weather-related fears.

The benchmark March contract on the Bursa Malaysia Derivatives Exchange traded up 54 ringgit at 1,884 ringgit ($528.2) a tonne after going as high as 1,894 ringgit.

Other traded months rose between 2 and 35 ringgit <0#KPO:>. Overall trade stood at 7,559 lots of 25 tonnes each, falling from the usual 10,000 lots.

REGIONAL EQUITIES-BANGKOK, Jan 14 (Reuters-major Southeast Asian stocks ended mixed, with Singapore shares <.FTSTI> inching up 0.16 percent, Malaysian shares <.KLSE> drifting down 0.03 percent and Philippines stocks <.PSI> closing 0.56 percent lower.

DJI Daily: 8300 mark failed to hold

Immediate daily technical landscape turn weak following market violated the immediate support at 8300 mark. We are now looking the immediate support at 8000-7880. Meanwhile, upside resistance maintain at 9000.

KLSE Daily: Losing ground

Market continue to lose ground with a weak close. Downside support maintain at 910-907 followed by 901-897 (gap left over on 5/1/2009). While, upside resistance is at 925.

FKLI Daily: 900 mark manage to defend?

Market violated the immediate support at 910 to close weak had again signaled that market momentum is getting weak. We now looking for the support at 903.5-901 (gap left over on 5/1/2009) followed by 879.5-876. For upside, resistance is at 937-942.

FCPO Daily: Market is slowing down its upside move

Market retreated after the recent rebound and looks bull looks may take a breather to slow down its upside move. For now, we continue to look for downside support at 1800-1797. Upside resistance is at 1913-1935 (gap left over on 13/1/2009).

Trader's Comment: CPO futures ended broadly higher after a range trading mood

CPO futures ended broadly higher after a range trading mood. Benchmark Mar09 gapped up RM35 to open at 1865 following overnight NYMEX crude oil and CBOT soy complex settled slightly higher. It hit the day high and day low level shortly after market opened at 1894 and 1856 respectively. Thereafter, it began to hover around that range through out the day. The fact that other commodities market continued their rally in Asian time trading where crude oil traded above $39 and eCBOT soy complex also inched higher had provided a steady support on the local CPO prices. Benchmark Mar09 finally settled RM54 higher at 1884. The fear of bad weather in South America had also helped lifted the sentiment in the global vege oil market.

Trader's Highlight

DJI-NEW YORK, Jan 13 - The Dow fell for the fifth straight day on Tuesday as investors fretted over what many expect will be a gloomy earnings season, overshadowing a boost in financials on bets U.S. authorities will take toxic assets off banks' balance sheets.

But the S&P 500 and Nasdaq ended higher as rising oil prices lifted energy shares and biotechnology companies gained as investors bet they will be among the few sectors with growing earnings.

The Dow Jones industrial average was down 25.41 points, or 0.30 percent, at 8,448.56. The Standard & Poor's 500 Index rose 1.53 points, or 0.18 percent, to 871.79. The Nasdaq Composite Index was up 7.67 points, or 0.50 percent, at 1,546.46.

NYMEX-NEW YORK, Jan 13 - U.S. crude oil futures staged a late rally on Tuesday, ending the session higher amid cold weather and news of output cuts buy Saudi Arabia.

Gains were limited, however, as traders turned their focus on weekly inventory data due on Wednesday, for which forecasts called for stock builds across the board.

"Products led the market higher but ... expectations for more inventory builds may be starting to weigh on the market," said Gene McGillian, an analyst at Tradition Energy in Stamford, Connecticut.

On the New York Mercantile Exchange, February crude settled up 19 cents, or 0.51 percent, at $37.78 a barrel, trading from $36.10 to $39.50.

CBOT-SOYBEANS - January up 15-1/2 cents at $9.69-1/2 per bushel, March up 5-1/2 cents at $9.71-1/2 a bushel.

Support from drought in Argentina, the world's third largest soy exporter, and continued Chinese buying of U.S. soybeans. Dropped from the day's lows in late trade on fund rebalancing.

CBOT-SOYOIL - January up 0.42 cent at 34.60 cents a pound, March up 0.42 cent at 34.83 cents a pound.
Drought in Argentina, the world's largest soyoil exporter, supported prices.

FCPO-KUALA LUMPUR, Jan 13 - Malaysian crude palm oil futures tumbled by as much as 9.6 percent to a week's low on Tuesday as investors kicked off a selling spree after overnight losses in soyoil and crude markets, ignoring a fall in domestic stocks.

Falling stocks have boosted prices of palm oil, used in a range of products from biscuits to biofuel, by 35 percent since an Oct 28. low of 1,331 ringgit, but fears of further weakening in global demand for vegetable oils and crude oil have spooked sentiment.

The benchmark March contract on the Bursa Malaysia Derivatives Exchange fell as much as 191 ringgit to stand at 1,797 ringgit ($502.7) per tonne, a level unseen since Jan. 5. The contract then closed down 158 ringgit at 1,830 ringgit.

REGIONAL EQUITIES-BANGKOK, Jan 13 (Reuters) - Thai stocks hit a 3-week low on Tuesday as shares in PTT group extended falls in response to downbeat earnings forecasts and weaker oil prices, while fears of corporate profitability pulled other markets lower.

Thailand's main SET index dropped 4.2 percent to its lowest since Dec. 23, with top energy firm PTT falling for a third day, down 7.1 percent to a more than 1-month low after warnings of larger-than-expected losses for the fourth quarter.

Singapore's stock index ended 0.81 percent lower at its lowest since Dec. 31, with financials leading decliners.

Malaysia lost 1.07 percent, with plantation IOI Corp down 5 percent on the back of falling crude prices. Indonesian stocks fell 0.48 percent with Telkom Indonesia 2.9 percent lower.