Market Overview 27th March 2012

Tuesday, 27th March 2012. The FBM KLCI slide down lower yesterday amid a lackluster trading session from regional performance and overnight U.S market. Other news to follow.

"-U.S. stocks erased a week’s worth of losses Monday, surging after Federal Reserve Chairman Ben Bernanke signaled the central bank is committed to a policy that’s helped stocks rally for three years. The Dow Jones Industrial Average DJIA +1.23%  rose 160.90 points, or 1.2%, to 13,241.63, gathering momentum throughout the day to more than recoup its 152-point loss, or 1.2%, last week — its worst week of the year. The S&P 500 Index SPX +1.39%  gained 19.40 points, or 1.4%, to 1,416.51. The Nasdaq Composite Index COMP +1.78%  added 54.65 points, or 1.8%, to 3,122.57, which is its highest close since mid-November 2000 and an extension of last week’s minor gains."

"-Major Asian markets were split between marginal gains and modest losses on Monday as an uncertain outlook after recent advances and before U.S. and European data this week turned investors cautious. After seesawing for much of the day, Hong Kong’s Hang Seng Index HK:HSI +0.0003% finished a fraction of a single point up at 20,668.86, China’s Shanghai Composite Index CN:000001 +0.05% rose 0.1% to 2,350.60 and Japan’s Nikkei Stock Average JP:100000018 +0.07% added 0.1% to 10,018.24. Australia’s S&P/ASX 200 index AU:XJO -0.18%  slipped 0.2% to 4,262.8 and South Korea’s Kospi KR:0100 -0.38%  slipped 0.4% to 2,019.19, while Taiwan’s Taiex XX:Y9999 -1.35% tumbled 1.4% to 7,967.62, coming under profit-taking pressure after a three-day advance."

"-Crude futures edged higher Monday, as a speech by Federal Reserve Chairman Ben Bernanke spurred hopes of more economic stimulus in the United States. Oil for May delivery CLK2 0.00%  advanced 16 cents, or 0.2%, to settle at $107.03 a barrel on the New York Mercantile Exchange."

"-May Soybeans finished up 13 3/4 at 1379 1/2, 9 off the high and 15 1/2 up from the low. July Soybeans closed up 12 1/2 at 1384 1/4. May Soymeal closed up 4.9 at 377.9. This was 5.5 up from the low and 1.0 off the high. May Soybean Oil finished up 0.55 at 55.43, 0.39 off the high and 0.77 up from the low. May soybeans closed off of the early highs but still sharply higher on the day. Weakness in the US dollar and a surge higher in equity and metal markets helped to drive the market to the highest level since September 16th early in the session. More talk of a smaller South America crop and the potential impact on US demand plus a positive tilt to outside market forces helped to support strong gains early in the session today. Another private forecast from Brazil for a crop of 66.7 million tonnes helped to support the market overnight as this estimate compares with the USDA March estimate of 68.5 million tonnes. Weekly export inspections came in at 24.9 million bushels which was in the range of estimates and compared with just 12.5 million necessary each week to reach the USDA forecast for the season.

 FKLI- Market Need Fresh News. 

Stock index retrace slightly yesterday as most of the regional finished unchanged. This was another day where market spend most of its time moving nowhere, or in other terms sideways. But moving nowhere does not mean it is going nowhere, it just hinting you market is pausing or taking some breather while awaiting some other elements such as news that will trigger fresh Buying / Selling craze. For the moment, most of the investors are growing caution about the uncertainties in the financial market where sign of economy slow down in China is getting prominent. At close, index futures for March contract dropped about 4 points to 1,584 level with most of the volume was contributed by roll over positions. Technically, upside momentum on the March contract has somehow paused but still intact at the moment.  For today, support is located around 1,580 while resistance is pegged at 1,591.

Daily Pivot Point
R2= 1591
R1= 1587
S1= 1582
S2= 1580

FCPO- Nostalgic 2008

  CPO futures resume its preceding uptrend yesterday when the market manage to create new high to 3,479 level. In most strong trending market, price would not barely retreat for you to Long in a uptrend market. Thus, forcing you to missed out probably the most favorable and profitable movement of all as major trend only occur barely two times in a year. Export figures might lend some support as cargo surveyors reported Malaysia palm oil export for 1-25th March vs Feb were about 1.065 million tons or 7.2% higher while the most active traded Soya oil were also hovering higher about 0.2950 cents to 55.17 cents per pound during 6.20PM, +8 GMT. The benchmark months have moved more like intimating the early 2011 CPO price surge due to dwindling supplies shock. But unfortunately, we cannot tell how similar this move will repeat itself as this particular positive trend does not have strong fundamental behind it such as lower than expected supplies in 2011 or global commodities prices surge due to extreme demand on early 2008 (before the sub-prime crisis). Technically, the benchmark June positive momentum has took off to a new high and there is no sign of major retracement yet. Furthermore, this price recover is expected to continue this week after the market survived previous correction last week.  For today, support is located around 3,433 while resistance is pegged at 3,505.

Daily Pivot Point
R2= 3505
R1= 3482
S1= 3433
S2= 3407

Disclaimer: Information and opinions contained in this report are for educational purposes only. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness.