Market Overview 30th March 2012

Friday, 30th March 2012. The FBM KLCI ended slightly positive but no luck on providing the next direction as market is still moving sideways most of the time. Other news to follow.

"-U.S. stocks finished mostly lower Thursday, though the Dow Jones Industrial Average staged a late-session turnaround to end higher. The S&P 500 index SPX -0.16% fell 2.26 points, or 0.2%, to close at 1,403.28. It has gained 0.4% so far this week and more than 11% this year.

The technology-heavy Nasdaq Composite Index COMP -0.31%  lost 9.60 points, or 0.3%, to 3,095.36, with the losses denting a weekly rise of 0.9%. Bucking the negative trend on Thursday, the Dow industrials DJIA +0.15%  closed up 19.61 points, or 0.2%, at 13,145.82 after turning higher in late trading. The Dow is currently up 0.5% for the week."

"- Asian shares dropped sharply Thursday, with commodity firms under pressure around the region, while Hong Kong investors also grappled with a slew of heavyweight earnings. Hong Kong’s Hang Seng Index HK:HSI -1.32%  fell 1.1%, and the Shanghai Composite index CN:000001 -1.43%  declined 0.6%. Japan’s Nikkei Stock Average JP:100000018 -0.67%  lost 0.7%, while the South Korean Kospi KR:0100 -0.85% retreated 1%. Australia’s S&P/ASX 200 index AU:XJO -0.13%  outperformed the region by dipping a mere 0.2% to hover around a four-month-plus high set in the previous session."

"- Crude-oil futures settled at a six-week low on Thursday, reeling from weak U.S. equities, comments by Saudi Arabia's oil minister that his country is capable of more supplies to counter high prices, and expectations the West and the U.S. may release emergency crude reserves to also battle higher energy prices. Crude for May delivery CLK2 +0.62% declined $2.63, or 2.5%, to end at $102.78 a barrel on the New York Mercantile Exchange. That was the lowest settlement for a most-active oil contract since mid February."

"- May Soybeans finished down 12 at 1355 1/2, 21 off the high and 4 1/2 up from the low. May Soybean Oil finished down 1.01 at 53.59, 1.24 off the high and 0.04 up from the low. May soybeans opened higher but closed sharply lower on the day and experienced the lowest close since March 22nd. Weakness in other commodity markets and a sharp break in equity, energy and metal markets helped to turn the market lower into the mid-session but soybeans continue to hold up well relative to the other grains. The Buenos Aires Grains Exchange pegged the soybean crop at just 45 million tonnes from 46.2 million as their previous estimate and compared with 46.5 million as the last USDA estimate. Weekly export sales for soybeans came in at 471,900 metric tonnes for the current marketing year and 120,400 for the next marketing year for a total of 592,300 which was about as expected. As of March 22, cumulative soybean sales stand at 90.2% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 91.0%. Sales of 145,000 metric tonnes are needed each week to reach the USDA forecast. Meal sales came in at 132,900 metric tonnes for the current marketing year and 12,500 for the next marketing year for a total of 145,400. Sales of 91,000 metric tonnes are needed each week to reach the USDA forecast. Oil sales came in at 3,500 metric tonnes. Sales of 7,000 metric tonnes are needed each week to reach the USDA forecast."

FKLI- 1600 Seems Too Strong To Breah At The Moment. 

Stock index inches up about 1.69 points to settle at 1,585.44 level while index futures for April contract closed lower to 1,582.50 as most of the regional index ended lower as well. The market have been moving at slower pace at the moment as investors are likely staying aside and wait for stable performance on regional market before acquiring more positions in the market. In other up, major trend is still up and we are looking at some congestion happening at the top at the moment. This congestion may due to strong resistance level at 1,600 level and we definitely need more positive news to gather back fresh Buying activities interest again. Technically, this sideline movement that is currently hovering within 1,595~1,570 may last longer than you though it could. For today, tight range trading session is expected to range between 1,578~1,585 is likely to occur again. 

Daily Pivot Point
R2= 1588
R1= 1585
S1= 1578
S2= 1574

 FCPO- Moving Flat From Post Rallies. 

CPO Futures retrace slightly yesterday amid recent corrections on broader based commodities including Soy products on CME. The benchmark June ended RM17 lower to 3,456, the low of the day was 3,445 level. The Bulls might be still resting at the moment as most of yesterday intraday recovery has been denied by Bears. It was evident that Bears does presence yesterday as most of the price recovery yesterday spark Selling pressure. Although there was a lower high spotted on hourly chart, major direction for the market to head to is still up. Intraday or short term traders may have the upper hand in this kind of market condition as they can quickly change and swing their positions from Long to Short with ease. The uptrend on CPO futures is still valid as there is yet any successive breach on the downside or major support level. Currently, market is likely to remain mixed and choppy ahead of an inventory and oilseed crop planting report by the U.S. Department of Agriculture due today. For today, support is located around 3,427 while resistance is pegged at 3,473.

Daily Pivot Point
R2= 3491
R1= 3473
S1= 3441
S2= 3427

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.