Market Overview 27th April 2012

Thursday, 27th April 2012. The FBM KLCI ended unchanged despite regional index closed mostly higher yesterday. Other news to follow.

"-U.S. stocks extended gains into a third day Thursday as better-than-expected data on housing and an upbeat forecast from Citrix Systems Inc. helped lift the S&P 500 Index above 1,400 for the first time in three weeks. The Dow Jones Industrial Average DJIA +0.87%  added 113.90 points, or 0.9%, to 13,204.62, with the blue-chip index up 1.4% so far for the week. Ahead 1.6% from last Friday’s close, the S&P 500 Index SPX +0.67%  gained 9.29 points, or 0.7%, to 1,399.98 and rising as high as 1,402.09 intraday. It was the index’s first time above 1,400 since April 5. The Nasdaq Composite Index COMP +0.69%  rose 20.98 points, or 0.7%, to 3,050.61, up 1.7% so far for the week."


"-  Most Asia markets finished higher but off session highs on Thursday, as investors digested a mixed bag of earnings reports.

Japan’s Nikkei Stock Average JP:100000018 +0.26%  finished only fractionally higher. Hong Kong’s Hang Seng Index HK:HSI +0.79%  rose 0.8%. However, mainland Chinese stocks were under pressure, with the Shanghai Composite Index CN:000001 -0.09%  losing 0.1%. South Korea’s Kospi KR:SEU +0.92%  rose 0.1%. Australia’s S&P/ASX 200 indexAU:XJO +0.22%  added 0.3% as trading resumed in Sydney after a one-day break."

"-Old-crop soybean futures posted a late-session recovery to end 4 1/4 to 7 3/4 cents higher, with the rest of the market down 5 1/4 to 12 1/2 cents. Meal ended mixed amid bull spreading, with soyoil weaker. Soybean futures were weaker most of the day, but in the end, old-crop futures rallied on strong demand and ongoing concerns about the South American crop. "

FKLI- Going No Where At The Moment

More and more local investors are pessimistic about how significant earning results on major U.S companies can support the stock index recovery recently. It seems that our equity index market does not track nor close the correlate with the U.S market performance at the moment. My assessment for further upside would have to come locally, such as local companies accordingly, but that alone may not be a solid reason for the market to surge, at least not that soon. Based on technical perspective, our equity index are currently hovering on correction mode. With long to medium term trend indicators are pointing to negative direction, it is a challenge for the market to turn around and resume its preceding uptrend. But for short term,  market should be able to recover slightly as the market might stabilize after it corrected for three sessions. Unfortunately, upside is limited around 1,582 level based on horizontal resistance trend line (previously was support area) shown on hourly chart above while support level for today is located around 1,568.

Daily Pivot Point
R2= 1582
R1= 1579
S1= 1572
S2= 1568

FCPO- Trapped In A Cage

Palm oil futures recovered but yet to a safe ground to confirmed its preceding uptrend. The benchmark July ended lower about RM11 to 3,500, it was open gap down due to overnight Soy oil weakness. The most actively traded Soy oil was traded lower than 56 cents per pound, forcing palm oil prices to be traded lower in early session. Market begin to trade on negative territory without making a new low and likely going to hover within sideways today.  Technically, recent price action have form a trading range, sort of a cage and July contract is likely going to trapped within these range until either one of it is breach. Upper range of the cage is located around 3,525 while lower range of the cage is situated at 3,440. These range will also serve as market immediate resistance and support as well.

Daily Pivot Point
R2= 3551
R1= 3531
S1= 3472
S2= 3433
 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.