Market Overview 12th April 2012

Wednesday, 12th April 2012. The FBM KLCI finished on higher ground prior to Tuesday Malaysia public holiday despite growing uncertainties over regional economy stability. Other news to follow.

"- U.S. stocks rose Wednesday, coming back after an extended slide after aluminum maker Alcoa Inc.AA +6.22% reported an unexpected profit in the first quarter. "April is generally a good month for the market; I'm a little more concerned with May," said Andrew Fitzpatrick, a market strategist at Hinsdale Associates. The Dow Jones Industrial Average climbed 89.54 points, or 0.7%, to 12,805.4. The S&P 500 SPX +0.74%added 10.14 points, or 0.8%, to 1,368.73. The Nasdaq Composite COMP +0.84% advanced 25.24 points, or 0.8%, to 3,016.46."

"- Most Asian markets fell Wednesday as heightened worries about rising Spanish and Italian bond yields weighed on investor sentiment, sending Japanese stocks lower for a seventh straight trading day. Hong Kong’s Hang Seng Index HK:HSI -1.06%  fell 1.1% to 20,140.67, Australia’s S&P/ASX 200 index AU:XJO -1.08%  dropped 1.1% to 4,246.10 and Japan’s Nikkei Stock AverageJP:100000018 -0.83% declined 0.8% to 9,458.74. The Nikkei, which ranked among the world’s best performing benchmarks in the first quarter with a gain of more than 19%, has shed 6.2% of its value so far this month. China’s Shanghai Composite CN:000001 +0.13%  edged 0.1% higher to 2,308.92 after changing direction a few times in choppy trading, while Taiwan’s Taiex XX:Y9999 +0.21% gained 0.2% to 7,656.67. South Korean markets were closed for national elections."


"-Crude-oil prices bounced off multi-week lows Wednesday, riding a wave of optimism as investors cheered Alcoa Inc.’s better-than-expected earnings and an inventories report was tame compared to previous ones. Crude for May delivery CLK2 -0.13%  rose $1.68, or 1.7%, to settle at $102.70 a barrel on the New York Mercantile Exchange."


"-May Soybeans finished down 4 at 1422, 9 1/4 off the high and 7 up from the low.  May Soybean Oil finished down 0.52 at 56.45, 0.5 off the high and 0.23 up from the low. May soybeans closed lower for the third session in a row as long liquidation selling emerged to pressure. A supportive tilt to outside market forces such as the weaker US dollar and an early surge in the US stock market helped support the higher opening but sellers were active early and the market was quickly showing moderate losses on the day. Talk of the extreme overbought technical condition of the market and follow-through technical selling from the weak technical action yesterday helped to spark long liquidation selling. The COT report from Friday showed a record high net long position from fund traders in meal and soybeans and the open interest for soybeans for preliminary data from the CBOT showed a new record high 787,472 contracts and this has traders nervous over the possibility of a corrective break. Traders see weekly export sales for release tomorrow morning near 800,000 tonnes as compared with 1.113 million tonnes last week."

FKLI- Weakness Likely Continue 

Stock index ended 5.89 points higher to 1,597.17 while index futures rose about 4.50 points to 1,590.50 level, low and high for the day was 1,585 and 1,593.50 respectively. Market was traded on higher note towards positive expectation on U.S major companies earning results that are announcing this week onwards. Sentiment on local market will be supported by these events for the moment. Technically, the formation on hourly chart for the index futures still spell troubles. There were more lower high and lower lows formed up till date, signifying Bulls dominance are weak at the moment. Market will continue staying on Bearish mode judging on the candles formation so far. Resuming for trading today, support is located around 1,585 level while resistance is pegged at around 1,598~1,600 Level.

Daily Pivot Point
R2= 1598
R1= 1594
S1= 1585
S2=1581

FCPO- Going Up On Positive Fundamental

Palm oil futures rose prior on Tuesday Malaysia public holiday amid supplies concern on Soy products and dwindling stock level that went down below 2 millions tons for the first time after a year ago. At close, the benchmark Jun ended RM46 higher to 3,621 level, low and high of the day was 3,562 and 3,628 respectively. Buyers were buoyed by the lower stocks news and re-acted positively, triggering the benchmark June to rose up to 13-months high at 3,628. For the mean time, positive market sentiment is supported by lower stocks level and Soy bean Bullish price outlook due to decrease supply. With stagnant supplies price for Soy bean need to rise in order to reduce demand. Technically, Bullish trend on palm oil is likely to continue amid new formation of higher lows and higher highs on previous Monday. This occasion can be seen when the market suddenly gap up on second session previous Monday signifying Buyers taking over and begin accumulating. For today, support is located around 3,579 while resistance is pegged at 3,669.

Daily Pivot Point
R2= 3669
R1= 3645
S1= 3579
S2=3537
 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.