FBM KLCI >>> Pullback takes key index below 1,250

SHARE prices on Bursa Malaysia shifted into post-Budget consolidation mode in tandem with the weak performances on Wall Street and regional stock markets this week. The FTSE Bursa Malaysia Composite Index (FBM KLCI) slipped below its critical support of 1,250 points when it closed at 1,243.23 yesterday.

On the foreign front, the New York Stock Exchange's benchmark indicator
The Dow industrials suffered its worst slide since July on Friday on concerns that the economic recovery won't be robust enough to sustain the seven-month stock rally, while financials sank on renewed worries about Citigroup's balance sheet.

The DJIA slid 249.85 points, or 2.51 percent, to end at 9,712.73. The Standard & Poor's 500 Index .SPX tumbled 29.92 points, or 2.81 percent, to 1,036.19. The Nasdaq Composite Index dropped 52.44 points, or 2.50 percent, to close at 2,045.11.

For the week, the Dow fell 2.6 percent, the S&P 500 lost 4 percent and the Nasdaq declined 5.1 percent.

On Bursa Malaysia, the FBM KLCI posted a week-on-week loss of 23.87 points, or 1.88 per cent.
Among the other indices, the FTSE Bursa Malaysia Small Cap Index lost 245.34 points, or 2.38 per cent, to 10,073.71 while the FTSE Bursa Malaysia ACE Index eased 36.18 points, or 0.83 per cent, to 4,305.69.

The following are the readings of some of the FBM KLCI's technical indicators:

Moving Averages: The FBM KLCI continued to stay above its 30-, 50-, 100- and 200-day moving averages. It stayed below the support of its 10- and 20-day moving averages.
Momentum Index: Its short-term momentum index stayed below the support of its neutral reference line.
On Balance Volume: Its short-term OBV trend stayed below the support of its 10-day exponential moving averages.
Relative Strength Index: Its 14-day RSI stood at the 54.41 per cent level yesterday.

Technical Outlook
The FBM KLCI shifted into a consolidation window immediately after the unveiling of the 2010 Budget on October 23.
A pre-Budget rally had taken the FBM KLCI to its intra-day high of 1,270.44 on October 21 before the index fell back to an intra-week low of 1,236.20 on Thursday, giving a technical pullback of 34.24 points, or 2.70 per cent.

The FBM KLCI's weekly chart momentarily breached the support of its intermediate-term uptrend (see FBM KLCI's weekly chart A3:A4) at the market close yesterday. It continued to stay above the neckline (A1:A2) of its head-and-shoulders pattern formation.

Chartwise, the FBM KLCI's daily trend continued to stay below the lower support (see FBM KLCI's daily chart B3:B4) of its intermediate-term uptrend channel (B3:B4 and B5:B6) yesterday. Also, the FBM KLCI continued to stay above the neckline (B1:B2) of its head-and-shoulders pattern formation.

The benchmark index's weekly and monthly fast Moving Average Convergence Divergence indicators (MACDs) stayed above their respective slow MACDs yesterday. Its daily fast MACD continued to stay below its slow MACD.

The FBM KLCI's 14-day RSI stayed at the 54.41 per cent level yesterday. Its 14-week and 14-month RSI stayed at the 70.41 and 62.22 per cent levels respectively.

In line with market expectations, the FBM KLCI has since moved into the post-Budget consolidation window. With that, the FBM KLCI will continue to consolidate further next week.
Heavyweight index-linked counters are likely to play pivotal roles in cushioning the market's technical pullback.

Next week, the FBM KLCI's envisaged resistance zone hovers at the 1,247 to 1,281 levels while its immediate downside support is at the 1,206 to 1,240 levels.

TECHNICAL ANALYSIS >>> 综合指数 2009年 10月 30日 / Composite Index 30/10/2009

综合指数 2009年 10月 30日

富时综合指数一度上探1248点的费氏线阻力水平，惟综指再度精确的在1248点遇阻（参考箭头A），综指随后在1248点以下的水平闭市，所以1248点继续成为综指当前的主要阻力水平，综指接下来的支持水平是1243点及1220点的费氏线。

如图所示，布林频带（Bollinger Bands）打开的幅度减少至6%，这表示综指出现的跌势有缓和下来的迹象，接下来若布林频带继续收窄，那综指将有望进入巩固的格局，这将使到综指避开进一步下跌的格局。

如图中箭头B所示，马股成交量稍微增加7.1%，这显示成交量仍然处于一个活跃的状态，这对综指转强有着正面的作用。

如图中箭头C所示，随机指标（Stochastic）回弹，接下来若随机指标能上扬突破30%的水平，那综指的短期走势将有望摆脱下跌的困境。不过若随机指标继续维持在30%以下的水平，那综指的短期走势将处于偏弱的格局。

总的来说，综指再次受到外围市场上扬的影响，出现回弹，惟综指在1248点的水平遇阻，由于1248点是综指自创下1524.69点高峰的61.8%费氏回归线，在技术上这是综指主要阻力水平，所以在羊群心理的影响下，综指并未如区域股市的大举上扬；再加上马股仍然处于“后预算案跌潮”中，所以综指表现平平。无论如何，接下来若综指能上扬突破布林中频带及1248点的费氏线，综指的后市将有望继续转强，反之若布林频带进一步打开，而综指始终低于布林中频带，那综指将再度出现下跌的趋势。

Composite Index 30/10/2009
The FBM KLCI tested the 1248 Fibonacci Retracement, but still resisted by the 1248 FR, study arrow A. Therefore, the 1248 is still the resistance for the KLCI while the supports are at 1243 and 1220 Fibonacci Retracement.

As shown on the chart above, the Bollinger Bands expansion rate reduced to only 6%, this implies that the downside movement might be slowing down, or if the Bollinger Bands should contract, the KLCI is likely to consolidate.

As indicated by B, total market volume increased 7.1%. This suggests that the overall market participation is still active and the market sentiment as a whole is still on the positive side.

As indicated by C, the Stochastic rebounded, but still below 30% level, which suggests that the short term movement of the KLCI is still bearish biased. If the Stochastic should break above 30% level, there is a chance for the KLCI to regain some strength.

In conclusion, the KLCI rebounded as the markets across the globe rebounded, but still, it is resisted by the 1248 FR. Since the 1248 Fibonacci Retracement is the 61.8% retracement between the highest 1524.69 and the lowest 801 points, it is an important resistance / support level. Therefore, the KLCI is still testing this resistance level. Coupled with the post-budget correction, the KLCI ended mostly flat. Nonetheless, if the KLCI should break above the 1248 FR as well as the Bollinger Middle Band, there is a good chance for the KLCI to resume its uptrend. But on the other hand, if the KLCI should continue to stay below the Bollinger Middle Band, the outlook for the KLCI shall remain bearish biased.

BURSA MALAYSIA >>> FBM KLCI and Crude Palm Oil Futures Market Overview 29 Oct 2009

FKLI Down On Weaker Cash Market
The FBM KLCI futures closed lower in line with the easier cash market, dealers said.
Spot month October 2009 declined seven points to 1,238.5, November 2009 lost six points to 1,239, December 2009 dropped 4.5 points to 1,240.5 and March 2010 went down 5.5 points to 1,240.5.

Turnover was lower at 13,397 lots compared with 14,439 lots on Wednesday while open interests rose to 22,664 contracts from 17,602 contracts previously.

CPO Ends Up On Likely Recovery In Exports, Crude Oil

Crude palm oil futures on Malaysia's derivatives exchange rebounded Thursday, led by gains in commodities markets and due to projections of a marginal rise in export numbers, said trade participants.
The benchmark January contract on the Bursa Malaysia Derivatives ended MYR37 or 1.7% higher at MYR2,189 a metric ton after moving in a MYR2,130-MYR2,195/ton range.
Traders and shipping executives said Malaysia's palm oil exports for October may rise 10%-14% on month.

Cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd. put September's exports at 1.23 million and 1.27 million tons, respectively.

Prices tumbled at the start of trading on overnight losses in crude and soyoil, but talk of a likely rise in exports trickled in, leading to a recovery in palm oil futures in the afternoon session. Many investors also covered their shorts toward the end of trade on the BMD, taking their lead from a rise in commodity markets.

Light, sweet crude for December delivery on the New York Mercantile Exchange remained in positive territory in the afternoon, trading 32 cents higher at $77.78 a barrel at 1007 GMT.
December soyoil on the Chicago Board of Trade was 30 points higher at 37.16 cents a pound by the end of trading on the BMD.

The vessel line-up at East Malaysian ports has been fairly strong over the past few days, said a Kuala Lumpur-based shipping executive with operations in East Malaysia, indicating importers may have stepped up purchases when palm oil prices declined.
Cargo surveyors are expected to issue end-October export data Monday.
But even as exports may rise in October, gains on the BMD were capped by a likely rise in palm oil stocks, said traders.

"Even though market rumors of a rise in exports to 1.4 million tons are encouraging, the market is still fixated on ballooning stocks as (palm oil) production rises," said a senior executive from a Kuala Lumpur-based commodities brokerage.

Cash palm olein for January/February/March traded at $665/ton and $670/ton, free on board Malaysian ports, said a Singapore-based trading executive.
He added that the bid-offer gap was about $7.50 apart.
Cash CPO for prompt shipment was offered MYR20 higher at MYR2,180/ton.
A total of 14,429 lots of CPO were traded on the BMD versus 18,074 lots Wednesday.
Open interest stood at 84,210 lots Thursday, up from 82,330 lots. One lot is equivalent to 25 tons.

A Simple Trading Plan, Not Quite

Question:
I have read lots of books on technical analysis and trader psychology, yet my trading is NOT getting any better!!!! I need to formulate a simple business plan, but have no idea how to do it! I'm a silent reader of your blog and realise you are a helpful person. I would appreciate your feedback. Thanks

From ..... leonard

Answer:

Hi leonard,

Reading books is important and helpful, but it does not guarantee you will succeed. Med students read books and study, but it takes years of practical experience to become a doctor. This is the key >>> practical experience. As well, the information in books is just that >>> informations. You have to be able to apply it successfully, which seems to be your problem.

My sense about you is that you are impatient ........

ZL feel this because you tell me you are not successful at trading, yet you now want to develop a plan. How is it that you are (in the first place) trading at all without a plan, simple or otherwise? Patience my friend, patience!!! Read, learn, plan, practice, and apply. These are the steps.

As to your “simple” plan, start with the following. Define your characteristics as a trader.

# Are you patient, calm, careful, knowledgeable, and realistic?

# Assess your capital. Is your capital adequate to make many small trades to gain experience?

# Study your markets. Do you thoroughly understand the markets you are trading?

# Define your profit loss targets based on your capital. Do you have an entry/exit strategy?

# Assess your information/research capabilities. Do you understand the big picture, the context surrounding your markets?

# Establish your trading parameters (time commitment, goals, approach, and bookkeeping ).

# Do you treat your trading like a business?

Once you make your assessments, identify your weaknesses and correct them.

This may take some time, but it is necessary.

As you can see, you need more than a simple plan to succeed. You need a wide understanding of trading as an holistic enterprise, something you commit to doing, something that is more than playing a hunch, trading on tips, or hoping for the best. Trading is work, and you need to begin with the basics and work your way into success.

You will find much you can add to this outline I have given you, but that is your work. Get to it and make some money!

Trade in the day; invest in your life …..........

Regards,
ZL

BURSA MALAYSIA >>> Midday Business Results in Images

Please click on images to ENLARGE TQVM

HAPPY TRADING

TECHNICAL ANALYSIS >>> 综合指数 2009年 10月 27日 / Composite Index 27/10/2009

综合指数 2009年 10月 27日
在道指下挫的影响下，亚太区域股市纷纷下跌，富时综合指数也不例外，综指一度下跌13.54点，无论如何如图中箭头A所示，综指精确的在1248点的费氏线获得扶持而回弹，这印证了1248点的费氏线将成为综指重要支持水平的建议。无论如何，这也表示若综指跌破1248点的话，综指下一道的支持水平将落在1220点的费氏线。
如图所示，布林频带（Bollinger Bands）收窄16%，所以综指继续的调整巩固，无论如何，综指跟随区域股市下滑，并且一度布林中频带（Bollinger Middle Band）的动态支持线，不过虽然综指一度出现偏软的趋势，当在综指成功上扬突破布林中频带后，综指仍然是处于上扬的格局。

如图中箭头B所示，虽然综指盘中下跌，不过马股成交量却上扬增加，并且突破40天成交量移动平均线（VMA），这表示综指受到一定的卖压。无论如何，随着综指在1248点的费氏线获得扶持后，综指收窄跌幅，形成一个长下影线的锤子阴阳烛，这是投资者趁低吸购的迹象。

随机指标（Stochastic）跌至70%的水平，这表示综指短期涨势并未结束，换句话说，综指短期走势仍然属于上扬的趋势。一般上，综指将继续维持目前的走势，直到随机指标跌破70%为止。

虽然综指一度受外围的影响的下滑，并且跌至1248点的费氏线回弹，由于1248点费氏线与L1上升趋势线重叠，所以扶持力量倍增，这使到投资者在此支撑水平趁低吸纳优质股项，使到综指回弹。总的来说，综指仍然处于一个上扬的格局，除非综指跌破布林中频带、1248点的费氏线及L1上升趋势线等扶持水平。

Composite Index 27/10/2009
As the over night loss of the Dow Jones Industrial Average, most major indices in Asian were lower, including the FBM KLCI. The KLCI had its intraday losing of 13.54 points, but as indicated by A, the KLCI rebounded precisely at 1248 Fibonacci Retracement, which suggests that the 1248 Fibonacci Retracement is still an important support for the KLCI. Nevertheless, if the KLCI should beak below the 1248 Fibonacci Retracement, then the next support for the KLCI is at 1220 FR.

As shown on the chart above, the Bollinger Bands contracted 16%, suggesting that the KLCI is still consolidating. As lead by the regional markets, the KLCI breaks below the Bollinger Middle Band, while still consolidating, but managed to close above at the Bollinger Middle Band . Nevertheless, with the KLCI still above the Bollinger Middle Band, the uptrend is still intact.

As indicated by B, total market volume increased, breaking above the 40-day VMA level, despite that the KLCI ended lower. This suggests that the market participation as a whole is still active, and provided that the volume could maintain above the 40-day VMA level, the bullish biased sentiment is likely to be sustainable. Meanwhile, the lower shadow candlestick of the KLCI suggested some bargain hunting activities.

With the Stochastic still above the 70% level, this suggests that the short term movement of the KLCI is still bullish biased. Provided that the Stochastic could hold up to above 70% level, the short term uptrend for the KLCI is expected to continue.

Due to external factors, the KLCI had its intra-day low touching the 1248 FR. Since the 1248 Fibonacci Retracement overlaps with the L1 uptrend line, it is generally a stronger support for the KLCI. In short, the KLCI is still in an uptrend, unless the KLCI should break below the Bollinger Middle Band or the 1248 Fibonacci Retracement or the L1 uptrend line.

BURSA MALAYSIA >>> FBMKLCI and CPO Futures Market Overview 27 Oct 2009

FBM KLCI Futures Close Lower

The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) futures closed lower Tuesday as investors took cue from the decline on Wall Street overnight, dealers said.

Spot month October 2009, Dec 2009 and March 2010 declined seven ticks each to 1,254, 1255 and 1,255 respectively and Nov 2009 slipped 6.5 points to 1,255.5.

Turnover surged to 13,428 lots from 3,158 lots Monday while open interest rose to 17,858 contracts from 17,207 contracts previously.The underlying FBM KLCI edged up 0.38 of a point to 1,260.3.

OIL PRICE DOWN; CPO FUTURES PRICES CLOSE LOWER
Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives closed lower today, tracking the downtrend of other commodities globally, dealers said. They also attributed the downtrend to market concerns over growing stockpiles during the month as stocks were expected to increase by 15 per cent from 1.5 million tonnes. The strengthening of the US dollar pulled down the crude oil price 1.71 per cent lower to US$78.68 per barrel on the New York Mercantile Exchange overnight.

At close, the November 2009 and December 2009 CPO contracts declined RM51 each to both settle at RM2,167 per tonne.

January 2010 fell RM48 to RM2,170 per tonne and February 2010 dropped RM42to RM2,172 per tonne.

Total turnover increased to 14,417 from 11,963 lots yesterday while open interest rose to 93,565 contracts from 92,438 contracts previously.

On the physical market, October South declined by RM30 to RM2,190 per tonne.

TECHNICAL ANALYSIS >>> Composite Index 26/10/2009 / 综合指数 2009年 10月 26日

Composite Index 26/10/2009

The Bollinger Bands contracted 9%, and the KLCI failed to break above the 1270 resistance, as indicated by A, which is a typical post-budget correction. Support for the KLCI remains at 1248 while the resistance is at 1270 level followed by the 1300 psychological level.

As shown on the chart above, the Bollinger Middle Band is the dynamic support for the KLCI as the KLCI is having its correction. Generally, if the KLCI should remain supported by the Bollinger Middle Band, the immediate outlook for the KLCI is still on the positive side, and the current correction is only technical.

As indicated by B, total market volume declined 11.2%, with the volume below the 40-day VMA level. Nevertheless, usually when the KLCI is having its correction or consolidation, volume tends to decrease. However, if the KLCI should resume its rally, volume above the 40-day VMA level is a must to confirm the bullishness of the KLCI.

As indicated by C, the Stochastic fell on Monday as the KLCI ended lower. If the Stochastic should break below 70% level, the short term movement of the KLCI might be turning weaker. In other words, it is crucial for the Stochastic to maintain above 70% level in order to sustain the bullish biased movement.

In short, the KLCI is having its post budget correction, and for immediate view, provided that the KLCI is still supported by 1248 or the Bollinger Middle Band, there is still a chance for the KLCI to resume its uptrend. But if the Bollinger Bands should continue to contract, the consolidation or the correction of the KLCI is expected to continue, and then, we shall need to wait until the re-expansion of the Bollinger Bands to determine the new movement of the KLCI.

综合指数 2009年 10月 26日

布林频带（Bollinger Bands）再度收窄9%，所以富时综合指数未能突破1270点的阻力水平（参考箭头A），形成了一个典型的“后预算案技术调整”，综指当前的支持水平落在1248点的费氏线，阻力水平则分别是1270点及1300点。

如图所示，由于综指出现技术调整，所以布林中频带（Bollinger Middle Band）成为了综指接下来的动态支持线，一般上，只要综指能在布林中频带上获得扶持，综指将不会出现下跌的趋势，综指的下调只能算是技术调整而已。

如图中箭头B所示，马股成交量减少了11.2%，这使到成交跌破了40天成交量移动平均线（VMA）的水平，无论如何，若综指出现技术调整或横摆的话，那成交量低于40天是正常的，惟若综指要再度形成有力的上扬趋势，成交量是必须增加至40天平均值或以上的水平。

如图中箭头C所示，随机指标（Stochastic）在综指下调的当儿也再度走低，接下来若随机指标跌破了70%的话，那综指的短期走势将有形成跌势的可能。换句话说，随机指标必须短期内回弹，综指才有望避开出现短期下跌的趋势。

总的来说，综指目前正处于一个典型的后预算案技术调整中，短期来看只要综指能在布林中频带或1248点的水平获得扶持，综指将有望开始回弹，再度上探更高的水平。无论如何，若布林频带继续收窄，那综指将会进入调整巩固的格局，届时必须等待布林频带再度打开，综指才会开始新的趋势。

Futures and Fair Value

Question:
On foreign financial television shows and Yahoo finance websites, I see quotes like Dow Futures up 17 points and Fair Value up 7 points. My question is:

What is "Fair Value," and how is it determined or calculated?

Thanks



From ..... Anon



Answer:



Hi Anon,


"Fair value" refers to the "proper" relationship between the futures and the cash. Through a complex formula using current short-term interest rates and the amount of time left until the futures contract expires, one can determine what the spread between the futures and the cash "should" be.



When the spread is at fair value, where it "should" be, there is no theoretical advantage to owning the futures instead of the cash, or vice versa. To professional investors and the big institutions, when the spread is at fair value, it makes no economic difference to them whether they own the futures or the actual stocks that make up the S&P 500. Their buy and sell decisions are driven by other factors.

But, when the spread drops below fair value, or moves above it by a large enough margin, then one of the choices (stocks or futures) will become more attractive than the other, and they will sell one and buy the other.

Trade in the day; invest in your life …



Regards,
ZL

Picturesque Overview BURSA MALAYSIA >>> Indices, Stocks, FKLI and FCPO closing 23 Oct 2009

Please click on images to ENLARGE .... Thank You!

HAPPY TRADING & GOODLUCK2ALL!!!

TECHNICAL ANALYSIS >>> 综合指数 2009年 10月 22日 / Composite Index 22/10/2009

综合指数 2009年 10月 22日

富时综合指数微跌0.04点，基本上算是横摆巩固，这是布林频带（Bollinger Bands）进一步收窄13%的结果，因为在布林频带收窄时，这是代表综指处于一个调整巩固的格局。目前综指的支持水平有着1248点的费氏线，动态支持线则是布林中频带，由于布林中频带目前与1248点重叠，所以支持力量有望倍增，因此综指在此水平获得扶持的机会高。

如图中箭头B所示，马股成交量再度下滑17.8%，这使到成交量跌至40天成交量移动平均线（VMA）的水平，这是综指在盘整时的典型状况，通常投资者在后市未明朗之前，都纷纷选择离场观望，无论如何，成交量低表示市场在综指下调时并未出现惊慌抛售的情形。

如图中箭头C所示，随机指标继续滑落（Stochastic），这是因为综指的短期走势趋软，若接下来随机指标跌破70%的话，综指的短期走势将被确认出现下跌的趋势，换句话说，随机指标必须避开跌破70%这关口，综指的短期走势才能有望避过出现跌势的格局。

平均乖离的振荡指标（MACD Histogram）则进一步下滑，这再度显示综指的短期走势有转弱的趋势，直到平均乖离形成一个圆底（Rounding Bottom）为止。

总的来说，综指继续处于技术调整的格局，而随机指标及振荡指标则暗示综指有进一步走低的风险，所幸的是在布林频带收窄时，一般上技术指标的都必须等待布林频带再度打开，才能确认任何新趋势的方向；换句话说，技术指标只是显示综指有开始趋软的迹象，惟必须等到布林频带打开的讯号，才能确认综指的涨势是否已经结束了。

Composite Index 22/10/2009

The FBM KLCI ended almost flat, losing only 0.04 points, as the Bollinger Bands contracted 14%. Generally, when the Bollinger Bands is contracting, the fluctuation of the index is usually lower, as it is the signal suggesting a consolidation. Support for the KLCI remains at 1248 Fibonacci Retracement and the Bollinger Middle Band is still the dynamic support. Since the Bollinger Bands is now situated at the 1248 level, this is likely to strengthen the support for the KLCI.

As indicated by B, total market volume declined another 17.8%, with volume at the 40-day VMA level. This, however, is quite normal for the KLCI is consolidating, as investors are staying on the sideline while waiting for more fresh leads. Nonetheless, the lower volume also suggest that there is no panic selling in the market.

As indicated by C, the Stochastic is still falling, as the KLCI short term movement is weakening. If the Stochastic should break below 70% level, it would be a signal suggesting an end to the short term bullish movement. In other words, it is crucial for the Stochastic to maintain above 70% level.

Meanwhile, the MACD histogram is still falling, suggesting that the KLCI short term movement is still weakening. Unless the MACD histogram should form a Rounding Bottom, the weakening movement of the KLCI is expected to continue.

In conclusion, the KLCI is still having its technical correction or a consolidation, with the Stochastic and MACD histogram showing signs of a weakening movement for the KLCI. But, with the KLCI still supported by the Bollinger Middle Band, the KLCI has not formed a downtrend yet. In other words, the Bollinger Bands Width must re-expand to confirm the new direction for the KLCI. In shorts, technical indicators, such as the Stochastic, are only showing early sign of weakening movement, it has to be confirmed by the Bollinger Band.

HAPPY TRADING!!!

KLCI closed lower after six straight days of gains

The winning streak on the Malaysia stock exchange stopped Wednesday as investors generally believed that the market needed to take a breather after the strong rally since last Tuesday.

The benchmark FBM KLCI lost 5.68 points or 0.45% to 1,260.06 points, being the day’s lowest level. The index opened 2.10 points higher 1,267.84 points and moved to as high as 1,270.44 points during the day.

Trading band was 9.38 points.Market breadth was negative with losers outnumbering gainers 519 to 214. Volume shrank to 926 million shares valued at RM1,279 million from 1,236 million worth RM1,545 million Tuesday.

Of the 30 components of KLCI, three closed in the positive territory, 23 ended lower while the remaining four settled unchanged. Volume for the component stock was 94 million shares worth RM605 million.

Weak Dollar Inspires Rally on Wall Street

Wall Street put the Dow 10000 mark back in its rearview mirror on Monday as the latest selloff for the crumbling greenback created another burst of buying in energy and basic materials stocks.

Today's Markets
The Dow Jones Industrial Average rose 96.28 points, or 0.96%, to 10092.19 the S&P 500 added 10.23 points, or 0.94%, to 1097.91 and the Nasdaq Composite picked up 19.52 points, or 0.91%, to 2176.32.

Monday's rally, which left all three major indexes at fresh 2009 highs, represents a significant bounce back for the markets after they suffered their steepest daily declines in two weeks on Friday.
“We knew that the selloff would be shallow… but I didn’t expect to see this type of move today. Honestly, I was a bit surprised,” said Peter Kenny, managing director at Knight Capital Markets. "The fact it’s happening at the beginning of earnings season may mean there’s more momentum to this than even the bulls imagined.”

Monday's action is just the latest example of the stock markets moving in the opposite direction of the greenback, which has been hammered in recent weeks as cash flows away from the relative safety of the currency and worries about U.S. debt remain high. The markets have benefited from the weaker dollar in the short-term as traders bet it will boost demand for commodities and make multinationals more competitive.

“We’re still relatively extended. I think it’s going to be very hard to make it through 1100 on the S&P. I think that it's going to be a very difficult bar for the market to hurdle over,” said Michael James, senior equities trader at Wedbush Morgan Securities. The broad S&P 500 flirted with that level late in the day before closing just below it.

At the same time, the dollar weakness pushed crude oil near the $80 threshold. Crude closed up $1.08 a barrel, or 1.38%, to $79.61 -- its highest settle since Oct. 13, 2008. Gold jumped $6.60 an ounce, or 0.63%, to $1057.30.

The gains for Wall Street come as the markets take an optimistic tack ahead of a very busy week of earnings. Even though earnings season officially started two weeks ago with Alcoa's better-than-expected results, it kicks into high gear this week with 140 S&P 500 companies, or 28%, slated to release their results.

The day ends with the Dow Jones Industrial Average (DJIA) near its best levels of the day. The closing gain of 96 points was only 26 points off the highs. The S&P 500 (SPX), Nasdaq Composite (COMP), and Russell 2000 (RUT) all finished with gains close to 1%.

BMD Crude Palm Oil and FBM KLCI Futures Markets 19 Oct 09

Crude Palm Oil Ends Up On Exports; Weak Crude Caps Gains

Crude palm oil futures on Malaysia derivatives exchange ended higher Monday on expectations of an increase in exports, but weak crude oil futures during the late afternoon trimmed earlier gains, said market participants.
The benchmark January contract on the Bursa Malaysia Derivatives ended MYR19 higher at MYR2,197 a metric ton, off an intraday day high of MYR2,217/ton.

Market participants expect Malaysia Oct. 1-20 palm oil exports to reach 850,000-869,000 tons, or 1.4%-3.7% higher than the estimated 797,929-837,656 tons shipped during the same period last month.
Cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd. are expected to issue separate estimates of Oct. 1-20 palm oil exports on Tuesday.
Although the export estimates are expected to be higher, participants said the increase won't be substantial enough to boost CPO prices significantly, especially after crude oil futures started to decline and moved into negative territory towards the end of the BMD trading day.

"(Palm oil) production over the last month is expected to increase by 10% so that negates any gains made by exports," a Singapore-based trader said.
New York Mercantile Exchange light, sweet crude oil futures were down $0.28 at $78.25 a barrel as of the end of trade on the BMD Monday.
Trade was thin in the cash market as India, a major buyer of vegetable oil, was closed for a national holiday.

The lack of activity in the cash market, coupled with moderately bullish expectations for the export data, resulted in rangebound trading on the BMD, with CPO prices unable to hold above MYR2,200/ton, a Kuala Lumpur-based trader said.

The level provides significant psychological resistance, which if broken convincingly would have triggered a technical uptrend in prices, the trader said.
In the cash market, cash palm olein for November/December shipment traded at $690/ton, free-on-board Malaysian ports, a Singapore-based trading executive said.
Cash CPO for prompt shipment was offered MYR20 higher at MYR2,200/ton.
A total of 16,357 lots of CPO were traded on the BMD versus 19,830 lots Friday.
Open interest stood at 91,814 lots, up from 85,898 lots. One lot is equivalent to 25 tons

FBM KLCI Futures Close Higher

The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) futures closed higher Monday in line with the uptrend on the cash market, dealers said.

At close, the spot month October 2009 contract rose 2.0 points to 1,265.0, November 2009 increased 3.0 points to 1,265.0, December 2009 advanced 5.0 points to 1,265.0 and March 2010 added 3.0 points to 1,264.5.

Turnover dropped to 4,086 lots from 4,324 lots last Friday while open interest rose to 16,944 contracts from 16,460 contracts previously. The underlying FBM KLCI was up 4.72 points or 0.376 per cent to close at 1,261.49, another new high for the year.