Forex: GBPUSD, EURUSD, AUDUSD Down due to FOMC statement; USDJPY Up

GBP/USD
Tuesday seemed to be ruled by volatility throughout the course of the day. The pair might have broken down,however 1.50 level below comes out to be supportive,hence our eagerness to start selling. The main game changer for the current period will be the impending FOMC Statement as it has the ability to change the market direction instantaneously. We are currently playing safe and wait for the market to make up its mind. The best thing to do at the moment is to simply wait. Get 3 Days Free Trial Signals
EUR/USD
The EUR/USD pair made a bearish candle in the 1.10 zone on Tuesday. The FOMC statement will be playing its part in this pair too, as it is the only way to get an idea what the Federal Reserve is planning to do next. Its best to calmly wait for the Fed decision and then decide what to do. Until the decision is released ,we expect high Volatility in the market.
AUD/USD
The AUD/USD pair finds support at 0.7150 level and we have hopes of a pull back from this level. Tuesday saw the pair drop as we continued with our search for opportunities. A prolong drop might see the pair touch the 0.70 level, but the possibility is stronger in case the lows of of the session are breached.Overall, the markets are going to be very volatile.
USD/JPY
The USD/JPY climbed up on Tuesday, due to the presence of buyers below. We are positive of touching the 124 level and with the FOMC statement on its way,the volatility might give us some additional thrust. Considering the 120 level as the “floor”, we might exploit the any pullback as a buying opportunity. A hawkish statement might even get us passed the 125 level and our confidence refrains us from taking any short positions.

KLCI Downs at last moments as Europe opens strong

The FTSE Bursa Malaysia (FBM) KLCI plummeted during the final minutes of trading after remaining flat for most of the day. 3 Days Free Trial Signals
The benchmark index closed down 7.12 points to an intraday low of 1,622.84 points as at 5pm, which also represents a new two-month low for the KLCI. 

Turnover for the day was 1.43 billion shares worth RM1.6bil. The broader market was mixed with 387 gainers, 386 losers and 389 stocks unchanged.
The declines were attributed to several component stocks of the KLCI which hit intraday lows upon market close, including Tenaga Nasional Bhd and British American Tobacco.

Key Asian markets were mostly positive at market close, while European bourses opened strongly on Tuesday as investors await what will probably be the first interest rate hike by the US Federal Reserve in a decade this week.

The Federal Open Market Committee (FOMC) will meet in Washington on Dec 16 to vote on whether to raise interest rates after a decade of close to zero borrowing costs.
Among the biggest gainers in Europe were the Stoxx Europe 600 Index which gained 1.2% in early morning trading. Similarly, Germany’s DAX advanced 1.6%.
Bloomberg reported that despite the advances, markets remain jittery due to the Fed meeting, plummeting crude oil prices as well as recent losses in high-yield credit markets.

Market forecast for KLCI:

Yesterday the KLCI index had given a closing near to the support level and if the index will cross the level of 1620 then we are expecting it to give a negative movement in near term, however the movement of the index in broadly influenced by the upcoming result of FED meeting on interest rate decision.

The ringgit was recovered slightly and was last traded at RM4.3025 as at 5pm against the dollar, compared to RM4.3265 earlier this morning.

Brent crude recovered slightly to US$37.98 per barrel, while US crude rose to US$36.37.
Crude palm oil for third month delivery fell by RM69 to RM2,406 per tonne, having hit RM2,500 on Dec 11.
Westports led the decliners in the KLCI after falling 14 sen to close at RM3.85.Astro fell 9 sen to RM2.53.
Among the plantation counters in the KLCI, PPB Group rose 2 sen to close at RM15.38. Sime Darby fell 10 sen to RM7.29 while Kuala Lumpur Kepong closed flat at RM22.14.
Petronas Chemicals led the gainers after rising 15 sen to close at RM6.80. Petronas Gas fell 4 sen to RM22.10 while SapuraKencana Petroleum fell one sen to RM1.86.
  Among the banks, Hong Leong Bank closed up 12 sen to RM13.40. Maybank fell 7 sen to RM8.18 while CIMB was flat at RM4.40.
AmBank fell 5 sen to RM4.31 while Public Bank was down 2 sen to RM18.24.
As for telcos, Maxis fell 3 sen to RM6.51 while DiGi closed flat at RM5.03. Axiata rose two sen to RM6 while TM fell two sen to RM6.43.
Glovemakers were among the top gainers in the broader market. Top Glove Corp closed at a new all-time high of RM11.86 after gaining 86 sen today on the back of strong quarterly earnings. Meanwhile, Supermax rose 15 sen to close at RM2.91.
Among the key regional markets:

 Japan’s Nikkei 225 fell 1.68% to 18,565.90;
Hong Kong’s Hang Seng Index fell 0.17% to 21,274.37;
The Shanghai Composite Index fell 0.29% to 3,510.35;
CSI 300 fell 0.46% to 3,694.39;
Taiwan’s Taiex rose 0.41% to 8,073.35;
South Korea’s Kospi rose 0.27% to 1,932.27 and
Singapore’s Straits Times Index gained 0.19% to 2,820.34.
Spot gold fell US$3.02 to US$1,062.89 per troy ounce.

FBM KLCI Technical Analysis & Market Forecast 15 Dec

Market Review for KLCI: The FBM KLCI index lost 10.18 points or 0.62% on Monday. The Finance Index fell 0.46% to 13951.92 points, the Properties Index dropped 1.15% to 1162.27 points and the Plantation Index down 0.40% to 7322.99 points. The market traded within a range of 10.16 points within a high of 1635.28 and a low of 1625.12 during the session.

The KLCI closed 10.18 points lower to 1629.96 points amid losses in Wall Street on last Friday as oil prices continued to slide and investors remained cautious over the potential interest rate hike by Federal Reserve.

Market forecast for KLCI:

The KLCI index is expected to trade with bearish sentiments in coming trading session on the back of the cautious investors sentiment over the upcoming FED meeting on interest rate decision. On technical ground the KLCI index test the level of 1600 in near term.

KLCI COUNTER SPECIFIC NEWS:

• Petronas Dagangan Bhd is divesting its liquefied petroleum gas (LPG) businesses in Vietnam as part of its portfolio rationalisation strategy.
• Taliworks Corp Bhd, which has a tie-up with the Employees Provident Fund (EPF) to acquire and operate concession-based asset, has set it sights on a few more targets locally and abroad.
• Dagang NeXchange Bhd (DNeX) expects to double its full-year revenue in 2016, backed by its oil and gas ventures. By 2020, energy is expected to be a dominant driver for the company, whose mainstay now remains trade facilitation and e-commerce.
• Berjaya Food Bhd, the country’s largest-listed food and beverage (F&B) company by market capitalisation, will tread cautiously when it comes to acquisitions.
• GD Express Carrier Bhd (GDex), riding on the e-commerce wave, will pursue inorganic growth via acquisitions and seek partnerships with other courier companies to expand into new markets in the Asean region, as it aims to achieve 24% to 25% net profit growth this financial year ending June 30, 2016.
• AirAsia Group has won the 'World's Leading Low-Cost Airline' title for the third consecutive year at this year's World Travel Awards Grand Final 2015 held in Morocco.

GLOBAL FACTORS AND WORLD INDICES:

• Asian stocks fell on Monday and China's yuan hit fresh 4-1/2 year lows as plunging oil prices added to investors' nervousness about riskier assets ahead of an expected US rate rise by the Federal Reserve later in the week.
• Shanghai stocks jumped more than 2 per cent on Monday in their best session in a month, as stronger-than-expected November factory activity lifted sentiment without dashing hopes of fresh stimulus.
• Tokyo stocks tumbled on Monday, extending a global equities sell-off ahead of this week's hotly anticipated Federal Reserve policy meeting.The benchmark Nikkei 225 index at the Tokyo Stock Exchange fell 1.80 per cent, or 347.06 points, to 18,883.42 by the close, after losing more than three percent in earlier trading.
• Australian shares came within a whisker of their 2015 trough on Monday, in line with a rout in the region, as falling oil prices and worries that U.S. interest rates will be hiked this week unsettled the market.The S&P/ASX 200 index shed 2.01 per cent, or 100.85 points, to finish at 4,928.60.
• Hong Kong's benchmark stock index fell for the eighth straight session to a more than 2-month low on Monday.The Hang Seng index fell 0.7 per cent, to 21,309.85, the lowest close since Sept 30. But the China Enterprises Index , which tracks Chinese companies listed in Hong Kong, gained 0.1 per cent, to 9,315.91 points.
• European shares opened higher on Monday as a sell-off triggered by China concerns and tumbling oil prices ran out of steam, with wind turbine makers Vestas Wind and Nordex among the leading gainers following a landmark climate deal.The pan-European FTSE Eurofirst index was up 0.7 per cent by 0825 GMT, after falling more than 2 per cent on Friday.
• China's yuan hit a fresh 4-1/2-year low to the dollar on Monday, after the central bank said it had begun publishing a yuan exchange rate weighted against a basket of currencies, a move that will eventually loosen the currency's link to the greenback.
• Energy-linked firms took another battering in Asia on Monday morning, leading losses on regional markets as oil prices sank to fresh seven-year lows, with warnings of further falls to come for the commodity.However, while companies that rely on fossil fuels to drive profits were taking a hit, he weekend climate deal was unlikely to have had a major impact on their shares for now.
• Gold ticked up on Monday, but was under pressure from a Federal Reserve policy meeting this week when the US central bank is expected to raise interest rates for the first time in nearly a decade.In its last policy meeting of the year on Dec. 15-16, the Fed is seen raising rates by a quarter of a per centage point.

Bursa Malaysia; Market Review for KLCI- 11 Dec

The FBM KLCI index lost 10.71 points or 0.65% on Thursday. The Finance Index fell 0.25% to 14107.75 points, the Properties Index dropped 0.45% to 1180.61 points and the Plantation Index down 1.22% to 7358.69 points. The market traded within a range of 12.54 points between an intra-day high of 1661.19 and a low of 1648.65 during the session.

The KLCI extended its losing streak for the third day after closing lower at 1648.65 points amid overnight losses in US market. Market sentiment was muted as oil prices continued to slide.

Market forecast for KLCI:

The KLCI index is expected to end the week with bearish sentiments on the back of the week global economical outlook, technically the index had crossed the level of 1660-1657 and it can drop further in near term. 

3 Days Free Trial Signals 

KLCI COUNTER SPECIFIC NEWS :

• Malaysia palm oil futures closed lower on Wednesday as traders squared positions ahead of key supply and demand data fr U.S and Malaysia.
• Country Heights Holdings Bhd (CHHB) has inked a joint venture agreement with Galaxus Corp Sdn Bhd (Galaxus) and Tan Sri Lee Kim Tiong.
• EG Industries Bhd is disposing of six parcels of unexpired leases of industrial land, measuring 6.28ha in Bandar Kuala Ketil in Kedah, for RM9 million to calcium-based chemical product manufacturer and trader Schaefer Kalk (Malaysia) Sdn Bhd.
• SP Setia Bhd,the country's biggest listed property developer by sales, is confident it can achieve its RM4 billion sales target for this year, underpinned by RM9.5 billion of unbilled sales.
• Kumpulan Perangsang Selangor Bhd’s (KPS) independent director Rosely @ Mohamed Ross Mohd Din told shareholders that the Selangor state-owned investment holding company will find a new business to invest in, after the disposal of its 90.83% stake in Titisan Modal (M) Sdn Bhd, which wholly owns the water treatment operator Konsortium ABASS Sdn Bhd.
• PUC Founder (MSC) Bhd (PUCF) has obtained the approval from Bursa Securities and the Securities Commission Malaysia (SC) for its proposed renounceable rights issue of irredeemable convertible unsecured loan stock (ICULS), with warrants to raise up to RM83.9 million.
• SCGM Bhd posted a net profit of RM4.79 million for the financial second quarter ended Oct 31,2015 (2QFY16), a 57.6% increase from RM3.04 million a year ago, helped by favourable product mix, lower fuel cost and strengthening of US dollar against the ringgit.
• Berjaya Food Bhd net profit plummeted 96% to RM6.2 million or 1.65 sen per share in its second financial quarter ended Oct 31, 2015 (2QFY16), from RM163.60 million a year ago, due to the remeasurement gain of RM158.60 million last year and foreign exchange loss.
• Sanichi Technology Bhd shares surged 18.75% in early trade today after Sanichi yesterday signed a memorandum of understanding (MoU) with German firm Protev International GmbH to form a joint venture in providing a one-stop product and service centre to all its customers worldwide in the manufacturing of plastic injection moulds and tools.
• Kimlun Corporation Bhd rose 2.08% this morning after AllianceDBS Research said renewed buying interest had emerged in Kimlun and that Kimlun had on Dec 9 traded higher to RM1.45 before closing near the day’s high at RM1.44 (up 6 sen or 4.34%).
• Transocean Holdings Bhd executive director Tan Swee Hock has voluntary resigned from his post effective yesterday after being charged by the Securities Commission Malaysia (SC) for insider trading.

GLOBAL FACTORS AND WORLD INDICES:

• A sense of unease spread across Asian stock exchanges Thursday with investors spooked by the sharp sell-off in oil sending most regional markets lower.With crude sitting around seven-year lows energy firms came under further pressure, following more losses on Wall Street.
• China shares ended lower on Thursday, giving up modest gains even after regulators reassured investors that reforms to company listings would not open a floodgate of new offerings.The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 0.4 per cent.
• Hong Kong shares weakened on Thursday, pulled lower by resource shares, as investors remained wary of falling commodity prices and ahead of a likely US interest rate rise next week.The Hang Seng index fell 0.5 per cent, to 21,704.61.
• Tokyo's benchmark stock index fell for a third straight session on Thursday as a strong yen dented exporters, and after Wall Street dropped on oil prices sinking to fresh seven-year lows.The Nikkei 225 at the Tokyo Stock Exchange sank 1.32 per cent, or 254.52 points, to 19,046.55 by the close.
• Australian shares fell 0.84 per cent on Thursday led by financials as stronger-than-expected jobs data further diminished the chances of a Reserve Bank rate cut.The S&P/ASX 200 index slipped 42.75 points to 5037.7 at the close of trade.
• Singapore GDP growth will remain lacklustre, reflecting a weaker outlook for China and Asean, as well as lower trend growth with domestic restructuring.The bank expects government measures in the property, transport and telecommunication sectors to be closely watched.
• Vehicle sales in China rose 20 per cent in November from a year earlier to 2.5 million vehicles, an industry association said on Thursday.The increase was the largest since October 2013 and compares with an 11.8 per cent rise in October and a 2.1 per cent increase in September.
• Oil prices edged up in Asia on Thursday following signs of a slight improvement in US demand but concerns that an oversupply will persist past next year kept the the commodity struggling at multi-year lows.
• The dollar eased against most rivals in Asian trade on Thursday, with commodity-linked units enjoying support from a slight uptick in oil prices, while its Australian counterpart surged on the back of a strong jobs report.
• Gold failed to log gains despite a 1.1 percent drop in the dollar index on Wednesday to its lowest in a month.

KLCI Technical Analysis Review & Market Forecast

Market Review for KLCI: The FTSE Bursa Malaysia Kuala Lumpur Composite index lost 4.10 points or 0.25% on Tuesday. The Finance Index fell 0.45% to 14189.02 points, the Properties Index up 0.24% to 1158.54 points and the Plantation Index down 0.15% to 6994.46 points. The market traded within a range of 13.17 points.

The KLCI closed down at 1635.37 points more than one-week low as Southeast Asian stock markets mostly fell. Market sentiment remained bearish after ringgit continues to slide and as crude oil prices dropped.

Market forecast for KLCI: The FBM KLCI index is expected to trade sideways as the investors sentiments can remain cautious after the FED officials comment on the interest rate hike, however if market finds fresh leads in coming session then it may give a positive movement.

KLCI COUNTER SPECIFIC NEWS :

• External pressures and not public debt are one of the issues that may cause rating agencies to rethink their ratings on Malaysia at present, said Fitch Ratings managing director and global head of sovereign and supranational group.
• The ringgit opened lower against a rejuvenated US dollar today.
• Oil markets have seesawed since the beginning of the week, torn between data that points towards a bottoming out of prices following an over 50 percent fall over the last year.
• Alliance Financial Group Bhd (AFG) is planning to raise RM4 billion from a bond issue for general banking and working capital requirements as well as to finance existing debt redemption.
• Berjaya Land Bhd saw its net profit for the first quarter ended July 31, 2015 drop 74% to RM9.91 million, from RM37.66 million a year ago, mainly due to higher prize payout coupled with the absorption of Goods and Services Tax (GST) expense, lower revenue from hotels and resorts business and higher finance costs.
• Affin Hwang has downgraded FGV to Sell form Hold after the recent surge in the company's share price.

GLOBAL FACTORS AND WORLD INDICES:

• Shares in Hong Kong rose Tuesday following gains in New York after top Federal Reserve officials moved to reassure dealers about the US economy after being spooked by last week's decision to hold interest rates. The Hang Seng Index climbed 0.18 per cent, or 39.65 points, to close at 21,796.58.
• China stocks rebounded for the second day on Tuesday, in a further sign of improving investor sentiment that may help the market gradually stabilise after the rout since mid-June.
• Asian shares rose on Tuesday and the dollar held steady as US markets bounced back and the European Central Bank said it was prepared to ease monetary policy further.
• Taiwan stocks rose on Tuesday mostly following overseas markets and some bargain hunting after the previous day's losses, but further gains were capped due to uncertainties ahead of the central bank's policy meeting.
• The introduction of a new accounting standard for financial instruments will be challenging for the banking industry, especially when it comes to modeling for expected losses, the European Central Bank's supervisory chief said on Tuesday.
• The dollar advanced against the euro and other leading currencies Monday on comments from US central bankers who continue to eye a 2015 interest rate increase.
• US home resales fell more than expected in August, a cautionary sign for the US housing market which has recently looked on stronger footing. The National Association of Realtors said on Monday existing home sales dropped 4.8 per cent to an annual rate of 5.31 million units.
• Gold steadied below a near three-week high on Tuesday, retaining overnight losses as Asian equities and the dollar edged higher and as investors worried over the possibility of a US interest rate hike later this year.
• Oil prices rebounded on Monday , looked like a technical correction from heavy losses last week as the basic global oversupply picture remained intact.

KLCI Weekly Technical Analysis Outlook

The week started with bullish movement and ended the week on a positive note on Friday. On weekly basis KLCI moved within the range of 1600.70 to 1691.93 and ended the week in a range bound phase, closed 65.85 points positive. On Friday KLCI extended its midday losses by ending lower at 1669.45 points as investors were taking profit after the index’s rally in the past three days. The performance of our local bourse was bogged down by selling in heavy weight counters such as Sime Darby, CIMB and YTL Corp.

The FBM KLCI index lost 12.09 points or 0.72% on Friday. The Finance Index increased 0.00% to 14556.72 points, the Properties Index up 0.07% to 1160.27 points and the Plantation Index down 1.04% to 7108.62 points. The market traded within a range of 22.84 points between an intra-day high of 1684.40 and a low of 1661.56 during the session.

Market Forecast for week ahead:

We are expecting that market will continue its positive movement in coming week supported by the positive measures taken by the local government and the decision to hold on the interest rates hike by the US central bank. The market can take support at the level of 1660 and starts the positive movement from there.
Technical indicators:

RSI for this week is 44.406 with CCI at -54.943. Besides, difference line of MACD -46.884 below its signal line at -40.222.

Global factors and world Indices

• The Federal Reserve held its key interest rate locked at zero Thursday, citing worries about how the slowdown in China will hit the US economy.
• Malaysia's inflation in August likely cooled to 3.0 per cent on lower fuel prices and after the Muslim Eid al-Fitr celebrations, a Reuters poll showed on Friday.
• Ringgit was set to snap the longest run of weekly declines in more than four decades after the US refrained from raising interest rates and a rally in the price of Brent crude improved prospects for the net oil exporter.
• Malaysia's trade with China, already past the USD100 billion level, can be expanded further by looking at new products and industries, Minister of International Trade and Industry II Datuk Seri Ong Ka Chuan said.
• Malaysia construction sector is going to be hit hard if the government does not extend the status of migrant workers under the 6P programme, which will expire end of the year
• Hong Kong equities traced most Asian markets higher Friday as traders welcomed the Federal Reserve's decision to keep interest rates at record lows, while Shanghai ended another volatile week on a positive note. Hang Seng Index added 0.30 per cent, or 66.20 points, to close at 21,920.83
• China stocks ended a volatile week slightly higher on Friday, after the US Federal Reserve held off from raising interest rates citing concerns about a weak world economy. Index of the largest listed companies in Shanghai and Shenzhen rose 0.4 per cent, to 3,251.27, but was down 2.9 per cent for the week.
• The Nikkei 225 index at the Tokyo Stock Exchange dropped 1.96 per cent, or 362.06 points, to close at 18,070.21, while the broader Topic index of all first-section shares was down 1.98 per cent, or 29.53 points, at 1,462.38.
• US central bank's decision to hold off hiking interest rates sent emerging market currencies and most Asian markets advancing on Friday, as concerns eased over an outflow of cash as the global economy suffers a painful slowdown.
• Australian shares ended higher on Friday, shaking off a negative lead from Wall Street after the head of the central bank made reassuring comments about the economy.
• Bank of Japan policy makers agreed that emerging economies had suffered from weak growth but were likely to improve from a longer-term perspective, minutes of the central bank's August policy meeting.
• Gold dropped from a two-week high on Friday, giving back some of the sharp gains from the last two days, as the Federal Reserve's decision to hold US interest rates steady this week added to uncertainty over the timing of an eventual rate hike.
• Oil markets were weak on Friday as fresh signs Opec will continue to value market share over prices outweighed expectations of a lift when the United States kept interest rates at historic lows.

Malaysian Palm Oil Price Down on Stronger Ringgit

KUALA LUMPUR: Malaysian palm oil futures dropped on Thursday due to market corrections and a strengthening ringgit.

The benchmark December palm oil contract on the Bursa Malaysia Derivatives Exchange closed 2.9 percent lower on Thursday at 2,128 ringgit ($500.71) a tonne, after seeing consecutive rises in the last two weeks.

Traded volume stood at 66,318 lots of 25 tonnes each, well above the average 35,000 lots usually traded in a day.

The ringgit gaining against the dollar is the main factor for the downtrend, said a trader based in Kuala Lumpur, but traders are also taking profit after the market went up in the last ten days.

"It was a bit of an expected correction as the market run up was too fast," he said. "Prices should find support again at 2,100 ringgit."

The ringgit strengthened against the dollar on Thursday by 0.7 percent, reaching 4.2500 per dollar on Thursday. It is emerging Asia's worst performing currency, having lost about 18 percent so far this year. A weaker ringgit usually lends some support to palm prices.

Palm oil may drop to 2,068 ringgit per tonne as it has broken a support at 2,132 ringgit, said Reuters market analyst Wang Tao.

In other vegetable oil markets, the most active January soybean oil contract on the Dalian Commodity Exchange was down 0.15 percent, while the U.S. December soyoil contract lost 0.9 percent.

Oil prices fell below $50 a barrel on Thursday on weak Japanese data, drawing concerns on global growth prospects and outweighing the impact of declining U.S. crude oil stocks.

Palm oil often takes price direction from crude oil, as vegetable oils are increasingly used in making renewable fuels.

Palm, soy and crude oil prices at 1016 GMT
                                                                    
  Contract        Month     Last   Change     Low    High  Volume
  MY PALM OIL      OCT5    2055   -52.00    2050    2095     385
  MY PALM OIL      NOV5    2095   -53.00    2091    2135   16040
  MY PALM OIL      DEC5    2128   -64.00    2125    2178   32158
  CHINA PALM OLEIN JAN6    4276    -8.00    4270    4328 1018844
  CHINA SOYOIL     JAN6    5384    -8.00    5382    5430  527706
  CBOT SOY OIL     DEC5   26.64    +0.00   26.60   26.91    5658
  INDIA PALM OIL   SEP5    0.00    +0.00    0.00    0.00       0
  INDIA SOYOIL     OCT5    0.00    +0.00    0.00    0.00       0
  NYMEX CRUDE      OCT5   46.51    -0.64   46.33   47.57   32931
                                                                    
  Palm oil prices in Malaysian ringgit per tonne
  CBOT soy oil in U.S. cents per pound
  Dalian soy oil and RBD palm olein in Chinese yuan per tonne
  India soy oil in Indian rupee per 10 kg
  Crude in U.S. dollars per barrel

($1 = 4.2500 ringgit)
($1 = 66.1500 Indian rupees)
($1 = 6.3645 Chinese yuan)
- Reuters

Source : The Star
- See more at: http://www.mpoc.org.my/Malaysian_palm_oil_price_down_on_stronger_ringgit.aspx#sthash.dhVUdc8B.dpuf

KUALA LUMPUR: Malaysian palm oil futures dropped on Thursday due to market corrections and a strengthening ringgit.

The benchmark December palm oil contract on the Bursa Malaysia Derivatives Exchange closed 2.9 percent lower on Thursday at 2,128 ringgit ($500.71) a tonne, after seeing consecutive rises in the last two weeks. 

Traded volume stood at 66,318 lots of 25 tonnes each, well above the average 35,000 lots usually traded in a day.

The ringgit gaining against the dollar is the main factor for the downtrend, said a trader based in Kuala Lumpur, but traders are also taking profit after the market went up in the last ten days.

"It was a bit of an expected correction as the market run up was too fast," he said. "Prices should find support again at 2,100 ringgit."

The ringgit strengthened against the dollar on Thursday by 0.7 percent, reaching 4.2500 per dollar on Thursday. It is emerging Asia's worst performing currency, having lost about 18 percent so far this year. A weaker ringgit usually lends some support to palm prices.

Palm oil may drop to 2,068 ringgit per tonne as it has broken a support at 2,132 ringgit, said Reuters market analyst Wang Tao.

In other vegetable oil markets, the most active January soybean oil contract on the Dalian Commodity Exchange was down 0.15 percent, while the U.S. December soyoil contract lost 0.9 percent.

Oil prices fell below $50 a barrel on Thursday on weak Japanese data, drawing concerns on global growth prospects and outweighing the impact of declining U.S. crude oil stocks.

Palm oil often takes price direction from crude oil, as vegetable oils are increasingly used in making renewable fuels.

Palm, soy and crude oil prices at 1016 GMT
                                                                     
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      OCT5    2055   -52.00    2050    2095     385
  MY PALM OIL      NOV5    2095   -53.00    2091    2135   16040
  MY PALM OIL      DEC5    2128   -64.00    2125    2178   32158
  CHINA PALM OLEIN JAN6    4276    -8.00    4270    4328 1018844
  CHINA SOYOIL     JAN6    5384    -8.00    5382    5430  527706
  CBOT SOY OIL     DEC5   26.64    +0.00   26.60   26.91    5658
  INDIA PALM OIL   SEP5    0.00    +0.00    0.00    0.00       0
  INDIA SOYOIL     OCT5    0.00    +0.00    0.00    0.00       0
  NYMEX CRUDE      OCT5   46.51    -0.64   46.33   47.57   32931
                                                                     
  Palm oil prices in Malaysian ringgit per tonne
  CBOT soy oil in U.S. cents per pound
  Dalian soy oil and RBD palm olein in Chinese yuan per tonne
  India soy oil in Indian rupee per 10 kg
  Crude in U.S. dollars per barrel

($1 = 4.2500 ringgit)
($1 = 66.1500 Indian rupees)
($1 = 6.3645 Chinese yuan)
- Reuters
Source : The Star
- See more at: http://www.mpoc.org.my/Malaysian_palm_oil_price_down_on_stronger_ringgit.aspx#sthash.dhVUdc8B.dpuf

KUALA LUMPUR: Malaysian palm oil futures dropped on Thursday due to market corrections and a strengthening ringgit.

The benchmark December palm oil contract on the Bursa Malaysia Derivatives Exchange closed 2.9 percent lower on Thursday at 2,128 ringgit ($500.71) a tonne, after seeing consecutive rises in the last two weeks. 

Traded volume stood at 66,318 lots of 25 tonnes each, well above the average 35,000 lots usually traded in a day.

The ringgit gaining against the dollar is the main factor for the downtrend, said a trader based in Kuala Lumpur, but traders are also taking profit after the market went up in the last ten days.

"It was a bit of an expected correction as the market run up was too fast," he said. "Prices should find support again at 2,100 ringgit."

The ringgit strengthened against the dollar on Thursday by 0.7 percent, reaching 4.2500 per dollar on Thursday. It is emerging Asia's worst performing currency, having lost about 18 percent so far this year. A weaker ringgit usually lends some support to palm prices.

Palm oil may drop to 2,068 ringgit per tonne as it has broken a support at 2,132 ringgit, said Reuters market analyst Wang Tao.

In other vegetable oil markets, the most active January soybean oil contract on the Dalian Commodity Exchange was down 0.15 percent, while the U.S. December soyoil contract lost 0.9 percent.

Oil prices fell below $50 a barrel on Thursday on weak Japanese data, drawing concerns on global growth prospects and outweighing the impact of declining U.S. crude oil stocks.

Palm oil often takes price direction from crude oil, as vegetable oils are increasingly used in making renewable fuels.

Palm, soy and crude oil prices at 1016 GMT
                                                                     
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      OCT5    2055   -52.00    2050    2095     385
  MY PALM OIL      NOV5    2095   -53.00    2091    2135   16040
  MY PALM OIL      DEC5    2128   -64.00    2125    2178   32158
  CHINA PALM OLEIN JAN6    4276    -8.00    4270    4328 1018844
  CHINA SOYOIL     JAN6    5384    -8.00    5382    5430  527706
  CBOT SOY OIL     DEC5   26.64    +0.00   26.60   26.91    5658
  INDIA PALM OIL   SEP5    0.00    +0.00    0.00    0.00       0
  INDIA SOYOIL     OCT5    0.00    +0.00    0.00    0.00       0
  NYMEX CRUDE      OCT5   46.51    -0.64   46.33   47.57   32931
                                                                     
  Palm oil prices in Malaysian ringgit per tonne
  CBOT soy oil in U.S. cents per pound
  Dalian soy oil and RBD palm olein in Chinese yuan per tonne
  India soy oil in Indian rupee per 10 kg
  Crude in U.S. dollars per barrel

($1 = 4.2500 ringgit)
($1 = 66.1500 Indian rupees)
($1 = 6.3645 Chinese yuan)
- Reuters
Source : The Star
- See more at: http://www.mpoc.org.my/Malaysian_palm_oil_price_down_on_stronger_ringgit.aspx#sthash.dhVUdc8B.dpuf

KUALA LUMPUR: Malaysian palm oil futures dropped on Thursday due to market corrections and a strengthening ringgit.

The benchmark December palm oil contract on the Bursa Malaysia Derivatives Exchange closed 2.9 percent lower on Thursday at 2,128 ringgit ($500.71) a tonne, after seeing consecutive rises in the last two weeks. 

Traded volume stood at 66,318 lots of 25 tonnes each, well above the average 35,000 lots usually traded in a day.

The ringgit gaining against the dollar is the main factor for the downtrend, said a trader based in Kuala Lumpur, but traders are also taking profit after the market went up in the last ten days.

"It was a bit of an expected correction as the market run up was too fast," he said. "Prices should find support again at 2,100 ringgit."

The ringgit strengthened against the dollar on Thursday by 0.7 percent, reaching 4.2500 per dollar on Thursday. It is emerging Asia's worst performing currency, having lost about 18 percent so far this year. A weaker ringgit usually lends some support to palm prices.

Palm oil may drop to 2,068 ringgit per tonne as it has broken a support at 2,132 ringgit, said Reuters market analyst Wang Tao.

In other vegetable oil markets, the most active January soybean oil contract on the Dalian Commodity Exchange was down 0.15 percent, while the U.S. December soyoil contract lost 0.9 percent.

Oil prices fell below $50 a barrel on Thursday on weak Japanese data, drawing concerns on global growth prospects and outweighing the impact of declining U.S. crude oil stocks.

Palm oil often takes price direction from crude oil, as vegetable oils are increasingly used in making renewable fuels.

Palm, soy and crude oil prices at 1016 GMT
                                                                     
  Contract        Month    Last   Change     Low    High  Volume
  MY PALM OIL      OCT5    2055   -52.00    2050    2095     385
  MY PALM OIL      NOV5    2095   -53.00    2091    2135   16040
  MY PALM OIL      DEC5    2128   -64.00    2125    2178   32158
  CHINA PALM OLEIN JAN6    4276    -8.00    4270    4328 1018844
  CHINA SOYOIL     JAN6    5384    -8.00    5382    5430  527706
  CBOT SOY OIL     DEC5   26.64    +0.00   26.60   26.91    5658
  INDIA PALM OIL   SEP5    0.00    +0.00    0.00    0.00       0
  INDIA SOYOIL     OCT5    0.00    +0.00    0.00    0.00       0
  NYMEX CRUDE      OCT5   46.51    -0.64   46.33   47.57   32931
                                                                     
  Palm oil prices in Malaysian ringgit per tonne
  CBOT soy oil in U.S. cents per pound
  Dalian soy oil and RBD palm olein in Chinese yuan per tonne
  India soy oil in Indian rupee per 10 kg
  Crude in U.S. dollars per barrel

($1 = 4.2500 ringgit)
($1 = 66.1500 Indian rupees)
($1 = 6.3645 Chinese yuan)
- Reuters
Source : The Star
- See more at: http://www.mpoc.org.my/Malaysian_palm_oil_price_down_on_stronger_ringgit.aspx#sthash.dhVUdc8B.dpuf

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Happy Malaysia Day - 16 Sept 2015

 Malaysia Day is celebrated on September 16 as the Malaysian federation is established on September 16 of 1963. When East Malaysian states of Sabah & Sarawak and the former British territory of Singapore united the Federation of Malaya, they created the Malaysian Federation. The Singapore only remained in the federation for two years, which had leaved on August 9 1965.

The date august 9 was decided for June 1 1963, but it was delayed; as the date August 31 had coincided with an older national day and also delayed again to allow referendums to take place in certain regions.

Malaysia Day has considered as a National holiday since 2010. On this day, there are several activities are involved that encourages the spirit of Malaysia. The activities are celebrated with formal events such as a parade to celebrate the historical moment. In addition, the day reminds them about their struggle period to achieve independence.

Malaysia day is all about celebrating the moment of independence. The day encourages the people to celebrate the event with complete freedom.
Wishing You a Pleasant Malaysia Day

Weekly Technical View on KLCI - Bursa Malaysia

The week started bearish with heavy loss with dropping 46.26 points on Tuesday and traded sideways with mixed sentiments throughout the week and made a weekly loss of 23.58 points. On weekly basis KLCI moved within the range of 1660.22 to 1583.63 and ended the week on a negative note, closed lower at 1589.16 points as investors await non-farm report to provide the last major clue on U.S.’s economy before the Federal Reserve next meets. The performance of our local bourse was in tandem with most of our regional peers.

The FBM KLCI index lost 13.59 points or 0.85% on Friday. The Finance Index fell 1.19% to 13924.63 points, the Properties Index up 0.09% to 1107.93 points and the Plantation Index down 0.38% to 6813.29 points. The market traded within a range of 14.71 points between an intra-day high of 1602.32 and a low of 1587.61 during the session.

FBMKLCI Week's Performance
Open	1655.47
High	1660.22
Low	1583.63
Close	1589.16
Change (Points)	-23.58
% Change	-1.46%

Market Forecast for week ahead:

The KLCI index can trade sideways in coming week as the investors sentiments are still cautious which can bound the market to give some good movement, technically if the market breaks the level of 1580 then it can go further down.

Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
1580	1500	1430	1660	1720	1773

Technical indicators:

RSI for this week is 28.764 with CCI at -133.072. Besides, difference line of MACD -50.702 below its signal line at -35.236.

Global factors and world Indices

• Malaysia saw exports in July increase 3.5 per cent from a year earlier as demand for electrical and electronic goods surged, government data showed on Friday.
• Hong Kong shares ended 0.45 per cent lower on Friday, bringing an end to another painful week for the Hang Seng Index, owing to ongoing concerns about the Chinese economy.
• AUTHORITIES in Singapore, Malaysia and Thailand have published a handbook to guide companies that hope to offer securities across borders through a streamlined review framework.
• UOL Group, Yangzijiang Shipbuilding and SATS will replace Jardine Matheson, Jardine Strategic and Olam International as constituents of the Straits Times Index (STI). This comes after the conclusion of the semi-annual review.
• Japanese stocks slipped to seven-month lows, with the Nikkei posting its biggest weekly fall in almost a year and a half with speculators dumping futures while investors stayed risk-averse ahead of the release of a key U.S. jobs report later in the day.
• Swiss consumer prices fell in August by the most in 56 years, the strongest indication yet of the pricing pressure from Switzerland's strong currency and low oil prices.
• Andy Hall, one of the best-known oil traders who's bullish on prices, said the decline in the oil market isn't a repeat of 1998 or 2008. The absence of "extreme contango," which occurs when commodities prices close to delivery are cheaper than those to be delivered at later dates, suggests that "the world, whilst moderately oversupplied, is not awash in oil.
• Gold held declines from a two-day losing streak on Friday, ahead of a crucial US jobs report as traders waited for clues about the timing of a Federal Reserve rate hike.
• Oil prices eased in Asian trade on Friday as investors turned cautious ahead of US jobs data later in the day that is expected to play into the Federal Reserve's decision on the timing of any US rate hike.

SECTOR ALLOCATION

SECTOR	CHANGE	%CHANGE	HIGH	LOW
FINANCE	-167.03	-1.19	14,072.54	13,922.36
TRAD/SERV	-1.28	-0.61	211.08	208.99
INDUSTRIAL	-13.51	-0.44	3,095.28	3,062.33
PLANTATION	-25.96	-0.38	6,823.54	6,790.83
IND-PROD	-0.34	-0.26	132.4	131.53
CONSUMER	-1.21	-0.22	560.24	557.51
PROPERTIES	1.02	0.09	1,111.84	1,103.19
TECHNOLOGY	0.03	0.15	20.13	19.86
CONSTRUCTN	0.87	0.34	254.26	253.15
MINING	12.16	2.56	486.34	474.18