Trader's Highlight

DJI - NEW YORK, Jan 22 (Reuters) - U.S. stocks slid on Thursday, after Microsoft's proposed job cuts and disappointing earnings shook investors, while economic data showed further deterioration in the labor and housing markets.

The Dow Jones industrial average fell 105.30 points, or 1.28 percent, to 8,122.80. The Standard & Poor's 500 Index dropped 12.74 points, or 1.52 percent, to 827.50. The Nasdaq Composite Index slumped 41.58 points, or 2.76 percent, to 1,465.49.

NYMEX - NEW YORK, Jan 22 - U.S. oil futures surged late to end higher on Thursday, as investors took heart after the Obama White House said it must move quickly on an economic stimulus package.

The energy market's bounce from the lows followed Wall Street, which pared losses after the White House announcement.

On the New York Mercantile Exchange, March crude settled up 12 cents. or 0.28 percent, at $43.67 a barrel, trading from $40.41 to $45.10.

CBOT-SOYBEANS - March down 8-1/2 cents at $10.12 a bushel.

Setting back after Wednesday's rally due to drought worries in Argentina, the world's third largest soy producer. Forecast for rains this weekend triggering profit taking.

CBOT-SOYOIL - March down 0.42 cent per lb at 33.53 cents.

Pressured by weakness in soybeans and crude oil.

FCPO - JAKARTA, Jan 22 - Malaysian crude palm oil futures rose 3.4 percent on Thursday to end at a one-week high, fuelled by rising crude oil prices and short-covering in late trade, traders said.

The market had been quiet for most of the day as a holiday mood settled in ahead of Chinese New Year holiday before the short-covering activities kicked in, they said.

The Bursa Malaysia Derivatives Exchange will be closed next Monday and Tuesday.

"We suddenly saw a lot of short-covering activities in the second half of the day due to the strength in crude oil and soyoil prices," a trader at a Kuala Lumpur-based brokerage said.

Another said active deals in the cash market during the day also lifted buying. "It is really unusual. I had expected a very slow day," the trader said.

The benchmark April contract on the Bursa Malaysia Derivatives Exchange rose 61 ringgit, or 3.4 percent, to 1,870 ringgit ($518) per tonne, the highest finising since Jan. 15.

REGIONAL EQUITIES - BANGKOK, Jan 22 - Singapore's stock market ended off the highs on Thursday after the annual budget failed to dispel concern about the economy, while Thailand's index hit its highest in a week as firm oil lifted energy stocks.

Singapore's Straits Times Index ended 0.25 percent higher after rising 1.9 percent earlier. Big caps ended mixed, with developer CapitaLand falling 4.2 percent and Oversea-Chinese Banking Corp down 0.6 percent.

Other Southeast Asian stock markets were helped by jumps in U.S. stocks on Wednesday, with Malaysia up 0.64 percent, Indonesia gaining 0.44 percent, the Philippines climbing 1.3 percent and Vietnam adding 0.36 percent.

Analysts said the regional stock market rally looked set to be short-lived as poor economic data would depress investors.

Trader's Comment: CPO futures reversed previous day losing streak to end generally higher.

CPO futures reversed previous day losing streak to end generally higher. Position squaring activities ahead of Chinese New Year holiday were evident in late trading session. Earlier trades were in dull mode stuck in the range of 1821-1838 with midday volume at 1,108 contracts which far below the average of 3000-4000. Surprise move came in late session boosted by position squaring activities. Benchmark Apr 09 pushed to the intra-day high at 1881 before settling RM 61 higher at 1870. Total daily volumes accelerated to 12,483 contracts changed hands. Another reason of position squaring may due to the higher initial margin charged for CPO futures which increase to RM 10,700 from RM 7,250 effective by today.

FCPO Daily: Cheer up a little

Market violated the support at 1860-1870 has cheer up a little the recent bored trading. Chart wise, consolidation phase may extended in near term. We continue to look for downside support at 1800-1790. Upside resistance is now looking at 1890-1900.

DJI Daily: in consolidation mode

Market extended its consolidation phase. Currently, we continue to look for the immediate support at 8000 follow by 7882-7449. For upside, resistance remains at 8300-8600.

KLSE Daily: remains sideway

Market covered the gap at 875-878 but failed to stay firm at 880 mark. Thus, we maintains sideways to lower view in near term market. Continue to look for downside support at 870-860. Upside resistance is at 888.

FKLI Daily: Limited upside

Upside looks limited as prices stuck in range trading and bias sideways potential. We continue to look for the support at 865-860 level. Upside resistance remains at 883.5-887 (gap left over on 20/1/2009) followed by 890.