FKLI Related News

NEW YORK (Reuters) - The S&P 500 fell for a third day on Tuesday but pared losses late in the day after the parliament of Cyprus rejected a proposed tax on bank deposits. The proposed tax on savings in banks had been a condition of a European bailout. When the Cypriot parliament rejected the tax, the decision eased worries that savers will begin withdrawing funds. At the same time, it left efforts to rescue the country - the latest casualty of the euro-zone debt crisis - up in the air. "Regardless of the vote in Cyprus, we still have the problem. No one knows: 'What is the Cypriot financial restructuring going to look like?'" sad Nicholas Colas, chief market strategist at the ConvergEx Group, in New York.

Banks in Cyprus will remain closed until Thursday. The S&P 500's retreat followed a long streak of gains where the index came close to hitting its all-time closing high set in 2007. The S&P 500 is still on track to post its best quarter in a year. The benchmark S&P 500 is up 8.4 percent for the year, while the Dow is up 10.3 percent. Energy shares led the day's decline following a drop in oil prices and a slide in the shares of oil services companies. The Dow Jones industrial average (.DJI) edged up 3.76 points, or 0.03 percent, to close at 14,455.82. The Standard & Poor's 500 Index (.SPX) fell 3.76 points, or 0.24 percent, to finish at 1,548.34. The Nasdaq Composite Index (.IXIC) slipped 8.50 points, or 0.26 percent, to close at 3,229.10.

During the session, the S&P 500 traded as low as 1,538.57. The S&P's swing from its intraday high to that session low covered 18.68 points. Strategists expect the S&P 500 to still break above its record high reached in October 2007, but they expect the rally to slow from there. A Reuters poll of equity strategists surveyed over the past week put the S&P 500 at 1,600 by year end, above its October 9, 2007, all-time closing high of 1,565.15. The Dow initially surpassed its 2007 record levels on March 5 and then set nominal record closing highs on subsequent session through the close on March 14.

European bank shares extended Monday's decline, with the sector's index (.SX7P) down 2.1 percent on Tuesday. "Whether the deposit levy occurs or not, the fact that it was agreed to by the EU means that claims on private property are not out of bounds, which pretty much says that nothing is out of bounds," said Fred Copper, senior portfolio manager, international equity, at Boston-based Columbia Management, in reference to the banking crisis in Cyprus. U.S. economic data added to upbeat views on the housing sector. Housing starts data showed that groundbreaking to build new U.S. homes climbed in February and new permits for construction rose to their highest since 2008, in a sign the U.S. housing market's recovery was building momentum. The PHLX housing sector index (.HGX) rose 0.3 percent to end at 191.79, after earlier climbing to 194.41 - its highest level since late July 2007.          [Reuters]

The FBM KLCI erased losses to end the day in positive territory yesterday, as investors bargain-hunted for short term gains following a decline in the broader market, fund managers said. Investors are waiting for the Malaysian Prime Minister to announce the dissolution of Parliament. The 13^th general election must be held by end-April and many cautious and risk-averse investors have scaled down their holdings in the local market. FKLI spot month contract opened lower this morning at 1,620.50 as Eurozone uncertainty continues.

Today’s Support and Resistance for March contract is located around 1,608 and 1,626 respectively.

FCPO Related News ( Tues, Mar 19)

SINGAPORE, March 18 (Reuters) - Malaysian palm oil futures edged lower on Monday, as traders turned cautious after a radical bailout proposal for Cyprus rattled investors and triggered a broad-based decline in commodities and financial markets.

Euro zone finance ministers asked Cyprus savers to forfeit a portion of their deposits in return for a 10 billion euro ($13 billion) bailout for the island, sparking fears of fresh turmoil in the euro zone and worries about global demand. "It seems like Europe is back to the headlines for the wrong reasons," said Ker Chung Yang, investment analyst with Phillip Futures in Singapore. "We have probably seen the last of the rally last week, and this week could be the beginning of a downturn or corrections in the commodities market."

The benchmark June contract on the Bursa Malaysia Derivatives Exchange fell 1.4 percent to close at 2,383 ringgit ($761) per tonne, also its low for the day. Prices traded in a tight range between 2,383 to 2,415 ringgit. Total traded volume stood at 27,137 lots of 25 tonnes each, slightly higher than the usual 25,000 lots. Technical analysis indicates Malaysian palm oil is expected to revisit its March 14 low of 2,360 ringgit per tonne, as a rebound from this level has completed, said Reuters market analyst Wang Tao.

Palm oil futures also continued to come under pressure from a weak soy market, which is suffering from poor U.S. demand and higher South American supply, losing 1.4 percent last week. But seasonally lower output in Malaysia may help ease palm oil stocks and support prices, especially after cargo surveyor data on Friday showed firm export demand. Malaysian palm oil shipments for the first half of the month were slightly better compared to the same period last month, with cargo surveyors Intertek Testing Services and Societe Generale de Surveillance reporting a 0.2 and 4.6 percent increase respectively.

In other markets, crude oil dropped to below $109 a barrel on Monday as stock markets tumbled and the dollar strengthened on the bank bailout proposal for Cyprus. In other vegetable oil markets, U.S. soyoil for May delivery lost 0.8 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodities Exchange also dropped 0.4 percent.          [Reuters]

Today’s Support and Resistance for benchmark June contract is located around 2,380 and 2,435 respectively.

FKLI Related News

NEW YORK (Reuters) - Stocks fell on Monday after a plan to tax bank accounts in Cyprus to help pay for the country's bailout stoked worries that it could threaten the stability of financial institutions in the euro zone. The move pushed the S&P 500 farther from its 2007 record closing high of 1,565.15 after the index came within striking distance of the level last week. Financial stocks led the day's decline, with the S&P 500 financial index (.SPSY) down 1 percent, following a steep slide in European bank shares. JPMorgan Chase (JPM.N) fell 1 percent to $49.51.

Cypriot ministers were trying to revise a plan to seize money from bank deposits before a parliamentary vote on Tuesday that will secure the island's financial rescue or could lead to its default. European officials have said the measure is a one-off for a country that accounts for just 0.2 percent of European output. The fear is that savers in larger European countries will become nervous and start withdrawing funds, although there was no immediate sign of that on Monday. "Will authorities be able to convince markets that this proposal is only for this unique situation, for such a small country where the banking system is more of a tax shelter? If they can't, that might cause new concerns about Europe's banking system."

The Dow Jones industrial average (.DJI) slipped 62.05 points, or 0.43 percent, to 14,452.06 at the close. The Standard & Poor's 500 Index (.SPX) shed 8.60 points, or 0.55 percent, to 1,552.10. The Nasdaq Composite Index (.IXIC) dropped 11.48 points, or 0.35 percent, to close at 3,237.59. Earlier in the day, the Dow had lost more than 100 points to tumble to an intraday low of 14,404.21. The Dow, which broke through its 2007 record highs on March 5, is still up about 10.3 percent for the year.   [Reuters]      

SHARE prices on Bursa Malaysia finished mostly lower yesterday, in line with the broader weaknesses in regional markets, dealers said.  The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) however, bucked the  overall weak trend to finish 1.26 points higher at 1,685.89, lifted by gains in key heavyweights. Dealers said the cautious sentiment set in on concerns over the ongoing US fiscal problems and weak corporate earnings for the first quarter.

FKLI spot month contract opened slightly higher this morning at 1,618.50. Today’s Support and Resistance for March contract is located around 1,610 and 1,635 respectively.

FCPO Related News (Mon, Mar 18)

Crude palm oil futures on Malaysia’s derivatives exchange ended higher Friday, with investors covering short positions following recent declines, market participants said. The benchmark May CPO on Bursa Malaysia Derivatives ended 1.6% higher at 2,415 ringgits a ton. Palm oil prices fell to their lowest level in two months on Thursday, reflecting investor concern about the upcoming South American soybean crop which is expected to boost global oilseed and vegetable oil supplies.

Modest gains in palm oil export demand during the March 1-15 period lifted sentiment, a trading executive at a Kuala Lumpur-based brokerage said. "The bears were forced to cut losses and covered short positions after the market rose past MYR2,400/ton today," the executive said. Cargo surveyor Intertek Agri Services said March 1-15 shipments rose 0.2% from a month earlier to 675,210 tons, while another surveyor SGS (Malaysia) Bhd. said exports for the period rose 4.6% to 678,829 tons. "Seeing as there’s no clear direction this week, we expect players to remain on sidelines until there’s a significant breakout from the MYR2,200-MYR2,600/ton range," a technical analyst at a foreign brokerage said.

Open interest on the BMD was 162,374 lots versus 163,195 lots Thursday. One lot equals 25 tons. A total of 40,301 lots of CPO were traded versus 29,364 lots Thursday.           [Dow Jones Newswire]

Today’s Support and Resistance for benchmark June contract is located around 2,375 and 2,430 respectively.

FKLI Related News (Mon, Mar 18)

NEW YORK (Reuters) - Stocks slipped on Friday, ending the Dow Jones industrial average's longest winning streak since 1996 as investors paused just below the S&P 500's record high. A decline in JPMorgan Chase shares after the bank was hit by a one-two punch of bad news also weighed on the market. Equities have rallied since the start of the year on signs of improvement in the economy and supported by the Federal Reserve's efforts to bolster the recovery.

JPMorgan Chase & Co (JPM.N) was the biggest drag on the S&P 500 and one of the biggest weights on the Dow, falling 1.9 percent to $50.02. The Federal Reserve told JPMorgan and Goldman Sachs Group Inc (GS.N) that they must fix flaws in how they determine capital payouts to shareholders, though the central bank still approved their plans for share buybacks and dividends. A Senate report alleged that JPMorgan had ignored risks, misled investors, fought with regulators and tried to work around rules as it dealt with mushrooming losses in a derivatives portfolio.

A busy day of economic reports reinforced investors' view that the economic recovery has momentum to it. Manufacturing output bounced back in February, though the pace of manufacturing growth in New York state cooled slightly in March and consumer sentiment fell.The S&P 500 retail sector index (.SPXRT) lost 0.8 percent after the consumer sentiment data from Thomson Reuters/University of Michigan. Consumer prices registered their biggest increase in nearly four years as the cost of gasoline rose. But a smaller gain in the core U.S. Consumer Price Index, which excludes volatile food and energy prices, left the door open for the Federal Reserve to continue its bond-buying program, which has contributed to the stock market's rally.          [Reuters]

Stocks on Bursa Malaysia ended broadly lower last Friday with persistent selling in heavyweights, led by Maybank. FKLI spot month contract opened lower this morning at 1,618 as Dow retreats from 10-day rally. Today’s Support  and Resistance for March contract is located around 1600 and 1620 respectively.

FCPO Related News (Fri, Mar 15)

[Malaysia Mar 1-15 Palm Oil Exports, 675,210 Tons - ITS, up 0.2 %. Malaysia maintains April Crude Palm Oil Export Tax at 4.5% ]

SINGAPORE, March 14 (Reuters) - Malaysian palm oil futures fell to a two-month low on Thursday, dropping for a third straight session on persistent weakness in soy markets, while traders watch for upcoming export data to gauge demand. U.S. soybean prices have been pressured by poor exports and increased competition from South American supplies as traders said Brazilian beans were now being offered at competitive prices. Palm oil investors are still counting on a seasonal drop-off in production that could ease stocks and support prices. Palm oil tends to track soybean oil prices closely as they are substitutes for each other.

The benchmark May contract on the Bursa Malaysia Derivatives Exchange had slid 1.3 percent to 2,366 ringgit ($760) per tonne, just above its intraday low of 2,360 ringgit, the lowest level since Jan. 14. Technical analysis indicates palm oil is expected to fall to 2,333 ringgit per tonne, said Reuters market analyst Wang Tao.

Cargo surveyor Intertek Testing Services said Malaysia's export demand for the March 1-10 period was almost flat with a month ago, while another cargo surveyor, Societe Generale de Surveillance, reported a slight 2.2 percent increase for the same period. Palm oil prices may face further pressure as traders said significantly lower crude palm oil shipments and record high

stocks at destination ports may weigh on exports for the rest of the month.       

   

In other markets, Brent crude held steady below $109 a barrel on Thursday on concerns over demand growth from top two consumers China and the United States, while a firm dollar added pressure on prices. The most-active September soybean oil contract on the Dalian Commodities Exchange had lost 0.7 percent.          [Reuters]

The looming soybean harvest from Brazil–which is set to surpass the U.S. as the world’s biggest producer, at a time when export demand for U.S. soy is weak–weighed on CBOT soy prices. CBOT May soyoil was down 0.7% at 49.19 cents a pound by the end of trade on BMD. "Aside from the supply-side issues, investors are concerned about export demand from Malaysia. Many expect overall shipments to remain weak, as the tax rate came into effect earlier this month," a trading executive at a Kuala Lumpur-based brokerage said.

Three trading executives said separately that palm oil shipments during the March 1-15 period probably reached 665,000 tons, little changed from a month earlier. Both cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd. will issue shipment data for the period Friday. "Export demand is anemic, so stockpiles aren’t likely to retreat much at the end of March," a Singapore-based physical market broker said. Stockpiles in Malaysia, the world’s no. 2 producer, rose to a record 2.63 million tons in December, before reserves eased to 2.44 million tons at end-February, according to a March 11 report by the Malaysian Palm Oil Board, the industry regulator. Investors are also awaiting the April export tax rate, scheduled to be announced Friday.

Open interest on the BMD was 163,195 lots, versus 160,370 lots Wednesday. One lot is equivalent to 25 tons. A total of 29,364 lots of CPO were traded versus 31,784 lots Wednesday.      

[Dow Jones Newswire]

Today’s Support and Resistance for benchmark  May contract is located around 2,360 and 2,420 respectively.

FKLI Related News (Fri, Mar 15)

NEW YORK, March 14 (Reuters) - The Dow Jones industrial average extended its winning streak to 10 days on Thursday, a string of gains last seen in late 1996, and ended at another record high as investors were encouraged by data showing the labor market's recovery was improving. The 30-stock Dow Jones industrial average has been setting record highs since last week, when it rallied on March 5 to initially surpass its previous lifetime closing peak set in October 2007. 

U.S. equities have accelerated their run higher without a major consolidation since the start of the year, driven by improvement in the economy and the Federal Reserve's continuation of its easy monetary policy. "It's simply a natural progression for prices to move to new highs in order for the market to advance. I don't think it's scaring investors," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York. "Fund flows really have reversed direction, and money started moving out of money markets and some from fixed income to equities. This kind of trend doesn't change easily so we can expect a lot more to come in."

The Dow Jones industrial average gained 83.86 points, or 0.58 percent, to 14,539.14, a record closing high. The Standard & Poor's 500 Index rose 8.71 points, or 0.56 percent, to 1,563.23, about 2 points from its record closing high of 1,565.15, set on Oct. 9, 2007. The Nasdaq Composite Index advanced 13.81 points, or 0.43 percent, to end at 3,258.93. Three months into the year, the Dow has shot up nearly 11 percent while the S&P 500 has gained 9.6 percent. Earlier Thursday, the Dow set another lifetime intraday high at 14,539.29.

Data on Thursday offered fresh signs of strength in the U.S. labor market as the number of filings for new unemployment benefits fell for the third week in a row. The housing sector index rose 1.5 percent and the Dow Jones Transportation Average added 0.8 percent. Ten of the Dow's 30 stocks hit at least 52-week highs, including Walt Disney Co. International Business Machines shares climbed to a lifetime intraday high of $215.85, and closed at $215.80, up 1.8 percent. Energy shares led the Dow and the S&P 500 higher, with the S&P energy sector index gaining 1.3 percent. Chevron was among the Dow's biggest percentage gainers, rising 1.4 percent to $120, after earlier hitting a fresh 52-week intraday high of $120.26.

Stocks on Bursa Malaysia closed on a weaker note yesterday in moderate trading on profit-taking in most consumer stocks. On the regional front, the Asian bourses were traded mixed on concerns over China’s economic outlook. FKLI spot month contract opened unchanged this morning at 1,640.

Today’s Support and Resistance for March contract is located around 1,630 and 1,650 respectively.