BMD CPO Dips; Slowing Exports, Supply Cues Weigh

01 Oct 2012

BMD CPO futures fall to a two-year low in early Asian trade, reflecting rising supplies of vegetable oils following higher USDA soy supply figures.  Also weighing on the palm oil market is "continued speculative selling combined with seasonal [CPO] production pressure," a vegoil exporter in Pasir Gudang says, tipping the palm oil contract to fall to MYR2,400/ton this week, weighed by ample supplies and a 0.7% drop in September exports to 1.44 million tons by cargo surveyor Intertek.  The benchmark December CPO is down 2.2% at MYR2,490/ton, after falling 2.7% to MYR2,478/ton, a level not seen since August 2010; CBOT October soyoil dips 1.7% to 51.74 cents/lb in screen trade.

BURSA MALAYSIA TRADE STATISTICS 28 September 2012

BURSA MALAYSIA TRADE STATISTICS
28 September 2012 (Source Bursa Malaysia)
                            Participation  Bought              Sold               Net
                            (%)               (RMm)             (RMm)           (RMm)
Local Institutions   45.6              777.0               866.1             -89.1
Local Retail          18.8              337.0                337.9              -0.9
Foreign                 35.6             686.4                596.4               90.0
                          100.0            1800.4              1800.4                0.0

Monday, 1 Oct 2012 TM – Stock Pick TM

Monday, 1 Oct 2012 TM – Stock Pick

TM ( 4863 : 6.18 ) : Take profit

Description

Resistance : 6.26
Support : 6.00

RSI of 67
RSI is on the rise

STOCHASTIC
It is overbought

Comment
On the buy of 25/9/2012 at 5.86, we are recommending to take profit as it approaches overbought

Trading Strategy
Take profit

Disclaimer
This report is provided for information purposes only. It is not a complete analysis of every material fact respecting any company, industry, security or investment. Opinions expressed are subject to change without
notice.

Monday, 1 Oct 2012 AFG – Stock Pick

Monday, 1 Oct 2012 AFG – Stock Pick



AFG ( 2488 : 4.09 ) : Targeting 4.35/Stop loss 4.00
Description

Resistance : 4.35
Support : 4.00

RSI of 48
RSI is on the rise

STOCHASTIC
It is oversold

Comment
The current technical rebound is heading for 4.35

Trading Strategy
Buy. Stop loss is at 4.00

Disclaimer
This report is provided for information purposes only. It is not a complete analysis of every material fact respecting any company, industry, security or investment. Opinions expressed are subject to change without
notice.

What Mitt Romney's Tax Returns Say About His Investments In Chinese Companies

Benjamin Carlson, GlobalPost

 Sep. 28, 2012

AP Benghazi attacks 'deliberate, organized terrorist' act, US intelligence director says A Friday in Munich: Phelan takes over @GlobalPost Fox car chase ends in suicide on live television

HONG KONG — Shortly after the release of Mitt Romney’s tax returns, critics pointed out an apparent contradiction between his tough-on-China rhetoric and several of his investments.

This summer, Romney’s blind trust sold its positions in Chinese oil company Cnooc, banking behemoth ICBC, and 300 shares of Youku — a knock-off of YouTube, which is banned in China. He made over $11,000 on the Cnooc trade alone.

Of course, the Romney campaign has argued that holding these stocks in a blind trust means he didn't invest in them himself, immunizing him from any apparent hypocrisy. But the trust where Romney has parked his $250 million fortune is arguably not all that blind: It's in the hands of his personal lawyer and longtime associate, as ABC News reports.

And Romney himself has dismissed the opacity of blind trusts, calling them "an age old ruse." When he was running against Ted Kennedy in 1994, he told the Boston Globe: "You give a blind trust rules. You can say to a blind trust, don't invest in properties which would be in conflict of interest or where the seller might think they're going to get an advantage from me."  

What are these companies? What’s their relationship to the Communist leadership in Beijing? And would holding these businesses really conflict with the role of being the American president?

CNOOC

The China National Offshore Oil Corporation has been no stranger to controversy. As a state-owned enterprise, its repeated attempts to acquire energy companies in North America has raised hackles and fears in Washington. 

In 2005, the company's $18.5 billion offer to take over Unocal — known for its iconic orange “76” logo at gas stations across California — was tanked when Congress made clear it would block the deal over national-security concerns.

CNOOC further alienated US lawmakers when it struck a $16 billion deal with Iran in 2006.

Now, CNOOC may once again become an issue, as its proposed $15.1 billion acquisition of Canadian oil-sands company Nexen will also be reviewed by the US. (Nexen owns resources in the Gulf of Mexico.)

Why all the fuss about CNOOC? After all, state-owned oil companies are hardly unusual — think Norway’s Statoil, Russia’s Rosneft.  

The difference here is perhaps best captured in a quote from Wang Yilin, CNOOC’s Chairman, from last May: “Large-scale deep-water rigs are our mobile national territory and a strategic weapon,” he told an audience in Beijing.

His remark was no idle threat. In the disputed waters of the South China Sea, where China has conflicting claims with just about every littoral state, CNOOC drilled three wells this year.

What the statement brings to light is how, when it comes to state-owned enterprises — particularly ones in energy and finance, which Beijing has deemed strategically important — the line between business and politics is very murky.

“The statement appears to reflect the mercantilist thinking of China’s ruling elite," writes Martin N. Murphy of the Atlantic Council. “Consequently, when it comes to China’s great commercial corporations such as CNOOC they should not be regarded as being like modern Western companies but as arms of a competitive state in which profit-maximization sits uncomfortably alongside the need to further Chinese state policy, whatever that might happen to be at the time.”

Of course, the truth is, many Americans may unwittingly hold investments in CNOOC. Have Fidelity’s Emerging Market’s Fund in your 401(k)? Then you’re also an indirect shareholder in this strategically sensitive company.

ICBC

The Industrial and Commercial Bank of China, with 18,000 bank branches and over $2.7 trillion in assets, is the king of superlatives: biggest bank in the world by market capitalization (over $200 billion); most profitable bank in the world ($19.6 billion so far this year); world’s largest IPO as of 2006 ($21.9 billion, a record then broken by another Chinese bank).

While its shares trade on the Hong Kong and Shanghai stock exchanges, a majority of the company is owned by the Chinese government (over 70 percent, according to the Congressional Research Service).

Still, ICBC is theoretically quite independent. Previously, it was one of China’s four major, wholly state-owned banks. But in 2005, the government decided to make them go partially public, to make them into more efficient, commercial banks along Western lines.

“One of the stated goals of China’s banking reforms has been to transform the banks into relatively autonomous, profit-driven financial institutions, modeled to a certain extent after commercial banks in the United States and Western Europe,” writes Michael F. Martin, Asia specialist for the Congressional Research Bureau in a 2012 report on China’s banks.

Even so, he writes, virtually all of them “balance their commercial interests with the changing and sometimes conflicting directives and priorities issued by different arms of the central and local government.”

This dual nature can be seen in what analysts say is a mandate for Chinese banks to give preferential treatment to other state-owned businesses: cheaper loans, easy credit, even debt forgiveness. The downside of that policy is it means taking on riskier assets than a normal bank would.

So why does ICBC comply, if it means getting involved in some unprofitable, even hazardous lending? Because, analysts say, Communist Party leaders in Beijing could be potential future colleagues.

As Mingyi Hung of the University of Southern California writes in a recent report on state-owned enterprises, “There's a very strong link between the corporate sector and the political sector in China. It's pretty often that after you serve as a CEO of a big corporation, you become a top government official. You get promoted politically.”

That is perhaps one reason why ICBC's chairman Jiang Jianqing makes “only” $308,000 in salary, as opposed to the $23 million collected by JP Morgan CEO Jamie Dimon in 2011.

“That is not counting the 'grey income'" Jiang makes, observed Zijing Wu, a reporter for Bloomberg, on Twitter.

Nevertheless, ICBC has clearly done well on its mission to become profitable, though it was a bum investment for Romney — he lost money on the trade.

YouKu, Assorted Other Chinese Stocks

Buzzfeed reports that Romney’s blind trust also sold an indirect position in Youku, a web video service modeled on YouTube, in which Bain Capital was an early investor. 

At first, Youku was a well-known piracy hub, where American movies and TV shows could be seen easily in defiance of international copyright laws. Today, however, Youku has cleaned up, and is viewed as a respectful steward of copyright.

Bill Bishop, an investor and editor of Sinocism.com, previously pointed out an inconsistency in Romney’s Youku stake, pointing out than in a Wall Street Journal op-ed, Romney wrote that “we must directly counter abusive Chinese practices in the areas of trade, intellectual property, and currency valuation.”

Youku, like all Chinese Internet companies, has to obey China’s laws and regulations, which include censoring content and limiting free speech. In the op-ed Romney also emphasizes “the character of the Chinese government — one that marries aspects of the free market with suppression of political and personal freedom.”  So tell us Mr. Romney, did you profit from Bain Capital’s investment in Youku?

Now, the answer appears to be "yes." 

This year, Romney's blind trust also unloaded several hundred shares of Tencent, an Internet company that owns (among other things) China's largest instant-messaging service, as well as a position in New Oriental, an education company. 

This may not be the end of Romney’s China investments — or his headache about them — as he and Obama continue to use China as a hammer to bash one another in the presidential campaign.

STOCKS FALL: Here's What You Need To Know

Sam Ro

Sep. 28, 2012

Flickr/Schittke

Markets got hit by some disappointing economic data today.

First the scoreboard:

Dow: 13,437, -48.8, -0.3%

S&P 500: 1,440, -6.4, -0.4%

NASDAQ: 3,116, -20.3, -0.6%

And now the top stories:

• Overall, U.S. economic data was uninspiring today.

• Personal income climbed by just 0.1 percent in August, which was weaker than the 0.2 percent expected by economists.  Spending, however, jumped by 0.5 percent.  In other words, consumers are saving less than expected.

• Chicago's Purchasing Managers Index (PMI) unexpected fell to 49.7 from 53.0 in August.  Economists were expecting the measure to slip to just 52.8.  A reading below 50 signals contraction and this was the first sub-50 reading since September 2009.

• The University of Michigan's Consumer Confidence index came in at 78.3, which was slightly below the 79.0 expected. 

• The big news of the day was certainly the Spanish bank stress test.  According to consulting firm Oliver Wyman, which conducted the test, the capital shortfall came in at 60 billion euros.  This was right in line with expectations.

• The fact that the stress test results weren't worse may have helped the euro jump and send stocks off of their lows of the day.

• Today also may have been a major turning point for China. Two big headlines crossed from this morning: 1) China announced a schedule for its leadership transition and 2) the Communist Party of China booted disgraced former leader Bo Xilai. "Simply put, the dust finally settled on new leadership," wrote Bank of America's Ting Lu. "These decisions will significantly reduce the political and economic risks perceived by both onshore and offshore investors. Note rumors about political infighting have significantly disturbed markets so far this year."

傳邱繼炳“重出江湖”‧馬聯工業（MUIIND) 獲追捧

 

 2012-09-28 

丹斯里邱繼炳旗下馬聯工業（MUIIND，3891，主板貿服組）週四獲市場追捧，市場主要臆測他可能會“重出江湖＂，並捎來企業活動。

最近有報導指，邱繼炳及其他華商受邀與首相納吉共進午餐。市場人士表示，邱繼炳的業務在前首相敦馬哈迪執政時代顯得“黯淡無光＂，並解讀這次與納吉共餐，是嘗試與目前的執政者靠攏。

交投熾熱
股價無波動

這項利好消息激勵該股交投熾熱，全日共有418萬4千600股易手，為全場40大熱門股之一，惟股價卻完全沒有波動，全日均停留在22仙平盤價。

邱繼炳出身銀行界，曾經叱吒大馬企業界，隨後創業並開始展開一系列企業併購活動，進而成為國內企業併購高手之一，但近年來行事作風變得非常低調。

最新的企業消息是，馬聯工業於今年5月正式完成以1億8千零22萬8千令吉，脫售旗下普險業務予日本東京海事保險公司（Tokio Marine Insurance），並表示考慮透過股息或資本回退方式回饋股東，惟至今未作進一步宣佈。

根據《福布斯》今年初公佈的富豪榜，邱繼炳成功捲土重來，擠身成為國內第40大富豪。除了馬聯工業，他還持有國內另4家掛牌公司，旗下公司涉足酒店、產業發展、食品生產、證券及零售業領域等。

大馬交易所資料顯示，邱繼炳旗下Noble Faith基金本月以來不斷累極馬聯工業的股票，至今共持有2億5千401萬9千700股，或約11.5%股權。

c

上訴駁回‧TCUBES公司（TCUBES) 10月1日除牌

2012-09-28 

受政府委托負責執行一個馬來西亞電郵計劃的TCUBES公司（TCUBES，0062，創業板科技組），由於針對重組計劃被拒提出的上訴不被大馬交易所接受，該公司被勒令從10月1日起除牌。

TCUBES公司透過大馬交易所網站發出的文告中指出，該公司是在8月2日針對早前提呈的重組計劃被拒而提出上訴，而大馬交易所在周詳考慮所有事實和情況後，在誌期9月26日的信函中否決了該公司的上訴，同時根據上市條例勒令該公司除牌。

因此，該股將在自9月26日起的兩個交易日後（即10月1日）除牌。

受委執行一馬電郵計劃

TCUBES公司是在去年4月獲政府頒發“一個大馬電郵計劃＂，以推行經濟轉型計劃下的通訊、內容及基建（電子-政府）的計劃，開發包括一個馬來西亞電郵在內的入口網站計劃。

由於當時該公司已被列為GN3陷困公司，必須展開債務重組才能脫困，卻獲頒這份“大禮＂，引起了市場嘩然。

股價一度翻10倍

在此利好支撐下，該公司股價一飛衝天，一度翻了10倍至寫下45仙高峰，創下6年新高。

TCUBES過後於去年10月提呈重組計劃以讓業務轉虧為盈。

不過，在今年7月初，TCUBES公司宣佈重組計劃遭大馬交易所駁回，並接獲停牌令。

交易所是基於其重組計劃無法展現未來支撐營業額和盈利並翻轉頹勢的能力，而作出否決，除非該公司在8月2日前上訴，否則需自7月11日暫停交易，並在8月7日面臨下市宿命。

在這不利消息打擊下，該股於7月4日暴跌7仙或70%，至3仙，並在此價位停牌至今。

c

10 Things You Need To Know Before The Opening Bell

Mamta Badkar

 Sep. 28, 2012

Jason Merritt/Getty Images

Good morning. Here's what you need to know.

• Asian markets were mostly higher in overnight trading with the Shanghai Composite up 1.45 percent on expectations of stimulus measures. Europe is mixed and U.S. futures are modestly lower.

• Research In Motion beat expectations when it announced adjusted EPS of -$0.27 on revenue of $2.9 billion. Wall Street estimates were for -$0.47 on revenue of $2.47 billion. The stock is up nearly 19 percent in pre-market trading.

• China has finally announced that it will hold the 18th Party Congress on November 8 when it will appoint new leaders. The Congress will elect leaders of the Central Committee of the Chinese Communist Party. Meanwhile, Bo Xilai has been expelled from the party and is set to "face justice". 

• Japanese industrial production declined 1.3 percent in August from the previous month. This is expected to impact the country GDP this quarter and increase pressure on the Bank of Japan to ease, according to Bloomberg.

• The French cabinet has approved its 2013 budget. The budget imposed about €20 billion in new taxes on large corporates and the wealthy.

• Personal income and outlays for August will be released at 8:30 a.m. ET, followed by Chicago PMI for September at 9:45 a.m. Economists polled by Bloomberg expect personal income to rise 0.4 percent month-over-month (MoM) and consumer spending to rise 0.5 percent MoM. The business barometer index is expected to stay flat at 53. 

• Sony is spending $640 million to acquire an 11 percent stake in Olympus. Sony is trying to expand its business into the medical equipment business and gain access to Olympus' endoscopes.

• Fitch ratings cut its Chinese GDP forecast to 7.8 percent in 2012, down from 8 percent. It also lowered its Indian GDP forecast to 6 percent, down from 6.5 percent. 

• South Korean industrial production fell 0.7 percent in August. The decline was attributed to the slowdown in Europe and China.

• Consumer sentiment for September will be released at 9:55 a.m. ET. Consensus is for the sentiment index level to ease to 79.

28 Sep 2012 Kuala Lumpur Closing Stock Prices

28 Sep 2012       Kuala Lumpur Closing Stock Prices

Close Prior Change % Change AMMB 6.36 6.41 -0.05 -0.78 BAT 60.40 60.44 -0.04 -0.07 C&C 2.86 2.86 unch unch Genting 8.71 8.59 +0.12 +1.40 GenM 3.50 3.37 +0.13 +3.86 IGB 2.32 2.21 +0.11 +4.98 L&G 0.40 0.40 unch unch MayBank 9.01 9.02 -0.01 -0.11 MAS 1.01 1.00 +0.01 +1.00 PetGas 19.00 18.92 +0.08 +0.42 PbBank 14.38 14.36 +0.02 +0.14 RHBCap 7.21 7.20 +0.01 +0.14 Sime 9.80 9.80 unch unch Telekom 6.19 6.09 +0.10 +1.64 Tenaga 6.82 6.82 unch unch TopGlove 5.10 5.13 -0.03 -0.58 UMW 10.00 9.99 +0.01 +0.10 YTL 1.72 1.75 -0.03 -1.71

28 Sep 2012 Kuala Lumpur Most Actives

28 Sep 2012          Kuala Lumpur Most Actives

Volume Close Change % Change Scomi 84,509,900 0.390 +0.020 +5.41 AirAsia 30,847,400 3.020 +0.070 +2.37 Axiata 20,678,800 6.500 +0.110 +1.72 JCY 16,315,300 0.780 +0.005 +0.65 GOcean 15,848,400 0.265 +0.035 +15.22 ASuprem 15,600,400 0.265 -0.015 -5.36 KeyWest 13,849,000 0.015 unch unch Muiind 13,150,200 0.230 +0.010 +4.55 Compugt 12,701,900 0.090 unch unch Hubline 12,303,200 0.065 unch unch CIMB 12,279,300 7.500 +0.180 +2.46 Maxis 11,695,300 6.920 +0.060 +0.87 MayBank 11,682,400 9.010 -0.010 -0.11 Telekom 10,856,000 6.190 +0.100 +1.64 Dialog 10,652,300 2.390 +0.090 +3.91 Nicorp 10,052,200 0.235 -0.010 -4.08 DiGi 9,711,600 5.280 -0.010 -0.19 YTL 9,589,100 1.720 -0.030 -1.71 IHH 8,941,800 3.200 unch unch Olympia 8,383,000 0.190 +0.005 +2.70 Genm 8,296,800 3.500 +0.130 +3.86 UEMLand 7,667,800 1.680 unch unch IJM 7,248,200 4.720 -0.020 -0.42 SkPetro 7,221,600 2.320 +0.010 +0.43 Genting 6,314,100 8.710 +0.120 +1.40 AMedia 6,146,500 1.090 -0.050 -4.39 Sime 6,112,200 9.800 unch unch Ingens 5,994,900 0.095 -0.005 -5.00 HWGB 5,921,500 0.310 -0.005 -1.59 KSK 5,665,800 0.655 -0.025 -3.68 CSL 5,616,500 1.040 -0.030 -2.80 IOI 5,592,200 4.980 -0.010 -0.20 DSCSol 5,581,500 0.135 +0.005 +3.85 GPRO 5,336,400 0.100 +0.010 +11.11 Bonia 5,254,700 2.380 +0.070 +3.03 CME 5,130,200 0.060 unch unch IGB 5,094,700 2.320 +0.110 +4.98 TIMECom 4,774,700 3.100 -0.120 -3.73 Supermx 4,634,200 2.060 +0.050 +2.49 Tenaga 4,566,200 6.820 unch unch Itronic 4,484,600 0.645 +0.005 +0.78 SYF 4,347,000 0.715 -0.035 -4.67 Parkson 4,200,200 4.820 +0.110 +2.34 DRBHICOM 4,198,000 2.330 -0.040 -1.69 PbBankF 4,073,400 14.380 +0.020 +0.14 AMMB 4,035,400 6.360 -0.050 -0.78 Gamuda 3,866,600 3.440 +0.040 +1.18 AsiaBio 3,716,500 0.075 unch unch Bright 3,702,000 1.510 unch unch Utopia 3,684,900 0.080 unch unch

BURSA MALAYSIA TRADE STATISTICS 27 September 2012

BURSA MALAYSIA TRADE STATISTICS
27 September 2012 (Source Bursa Malaysia)
                            Participation  Bought              Sold              Net
                           (%)               (RMm)             (RMm)          (RMm)
Local Institutions  53.0              746.8               720.9              25.9
Local Retail         19.7               253.9               290.7            -36.8
Foreign               27.3               384.2                373.3             10.9
                         100.0             1384.9             1384.9               0.0

Friday, 28 Sep 2012 HARTA – Stock Pick

Friday, 28 Sep 2012 HARTA – Stock Pick



HARTA ( 5168 : 4.35 ) : Targeting 4.70/Stop loss 4.20
Description

Resistance : 4.70 4.92
Support : 4.26

RSI of 47
RSI is on the rise

STOCHASTIC
It is oversold

Comment
The current recovery is heading for 4.70

Trading Strategy
Buy. Stop loss is at 4.20

Disclaimer
This report is provided for information purposes only. It is not a complete analysis of every material fact respecting any company, industry, security or investment. Opinions expressed are subject to change without
notice.

Friday, 28 Sep 2012 IJM– Stock Pick

Friday, 28 Sep 2012   IJM– Stock Pick



IJM ( 3335 : 4.73 ) : Targeting 5.00/Stop loss 4.62
Description

Resistance : 5.00
Support : 4.62

RSI of 33
RSI is on the rise

STOCHASTIC
It is oversold

Comment
Following the recent sharp sell down to 4.51, it is in for a technical rebound to test 5.00 resistance

Trading Strategy
Buy. Stop loss is at 4.62

Disclaimer
This report is provided for information purposes only. It is not a complete analysis of every material fact respecting any company, industry, security or investment. Opinions expressed are subject to change without
notice.

Malaysia Shares May Rise; Test Of 1635 Eyed

28 Sep 2012

Malaysia shares may rise, tracking gains on Wall Street, following news of Spain's plan to cut its budget deficit; HwangDBS says local equities may ride on the back of possible quarter-end window dressing activity and Budget 2013 expectations.  "On the chart, the benchmark KLCI--following a three-day cumulative gain of 15.5 points--may challenge the immediate resistance line of 1635," the house adds.  The KLCI ended Thursday up 0.5% at 1627.84. Among stocks in focus, potential beneficiaries of Budget 2013 includes REITs if withholding taxes are lowered, while possible losers may be property developers if real property gains tax are raised and the gaming sector if there's a hike in gaming tax.

STOCKS RALLY AND TECH SURGES AFTER BAD ECONOMIC DATA: Here's What You Need To Know

Sam Ro

 Sep. 27, 2012

Wikimedia Commons

Markets rallied after a slew of data sent mixed signals about the economy.

First the scoreboard:

Dow: 13,485, +72.4, +0.5%

S&P 500: 1,447, +13.8, +0.9%

NASDAQ: 3,136, +42.9, +1.3%

And now the top stories:

• Durable goods orders unexpectedly plunged by 13.0 percent in August.  This was much worse than the 5.0 percent decline expected by economists.  Excluding transportation, the orders fell 1.7 percent, which was worse than the 0.2 percent gain expected. This report is known to be volatile, but today's number seemed a bit extreme. "It looks nearly certain at this point that manufacturing is in a recession," said New Deal democrat of The Bonddad Blog.

• Q2 GDP growth was unexpectedly slashed to 1.3 percent from a previous reading of 1.7 percent. "The "third" estimate of the second-quarter percent change in real GDP is 0.4 percentage point, or $16.0 billion, less than the "second" estimate issued last month, primarily reflecting downward revisions to private inventory investment, to personal consumption expenditures, and to exports," wrote the Bureau of Economic Analysis.  Personal consumption growth was revised down to 1.5 percent from 1.7 percent.

• "As we recently noted, you'll need to watch the rear-view mirror to see the recession come into focus," wrote ECRI's Lakshman Achuthan in an email to Business Insider.  Achuthan has been calling for a U.S. recession for around a year.

• The jobs data today was good.  Initial jobless claims fell to 359K from 385K last week.  Economists were expecting 375K.  The Bureau of Labor Statistics also released its annual benchmark revision which boosted payrolls by 386K. 

• BlackBerry maker Research In Motion announces earnings after the closing bell. We'll be covering it

10 Things You Need To Know Before The Opening Bell

Matthew Boesler

 Sep. 27, 2012

Watchwithkristin via Flickr

Good morning. Here's what you need to know.

• Asian markets were higher in overnight trading with the Nikkei up 0.48 percent and the Hang Seng up 1.14 percent. Europe is up around 0.5-0.8 percent across the board, but Spain is lagging, with shares mostly flat. S&P 500 futures in the U.S. are up around 0.5 percent as well.

• All eyes are on Spanish prime minister Mariano Rajoy today, who is set to unveil Spain's 2013 budget this morning at 8:00 AM ET. Spending cuts are meant to appease troika lenders, but angry protesters in the streets and a burgeoning separatist movement in Spain's most crucial economic region reflect little appetite for austerity among the electorate. 

• The United States reported Q2 GDP of 1.3 percent versus expectations of 1.7 percent. Durable goods orders fell 13.2 percent versus expectations of a 5 percent drop. Initial jobless claims fell to 359K this week versus expectations of 375K. 

• UK Q2 GDP came in slightly better than expected at -0.4 percent versus forecasts of -0.5 percent. Business investment surprised to the upside, but the current account deficit was wider than expected.

• The People's Bank of China injected record amounts of liquidity into the financial system this week via 365 billion yuan ($57.9 billion) of reverse repos. This is the biggest liquidity injection by the Chinese central bank on record. 

• Spanish bank deposits fell to their lowest level since April of 2008 in August according to data released this morning. This further ups the pressure on prime minister Mariano Rajoy to deliver on economic reforms and get the situation in Spain under control.

• Italy conducted a smooth bond auction this morning in spite of worries over Spain, with five-year yields falling to their lowest since May 2011 and 10-year yields falling to 5.24 percent versus 5.82 percent at the last auction about a month ago.

• Euro area economic confidence fell unexpectedly in September to 85 from 86.1. Economists had expected a flat reading. The numbers come amid deterioration in several economic indicators in Europe, signaling a deepening recession.

• Chinese industrial profit declines accelerated in August, falling 6.2 percent versus last month's decline of 5.4 percent. The numbers highlight the fundamental weakness in the Chinese economy. 

• Referees have finally reached a deal with the NFL, ending the strike. The referees are expected to return for Thursday night's game between the Cleveland Browns and Baltimore Ravens.

27 Sep 2012 Kuala Lumpur Closing Stock Prices

27 Sep 2012         Kuala Lumpur Closing Stock Prices

Close Prior Change % Change AMMB 6.41 6.34 +0.07 +1.10 BAT 60.44 61.20 -0.76 -1.24 C&C 2.86 2.90 -0.04 -1.38 Genting 8.59 8.61 -0.02 -0.23 GenM 3.37 3.38 -0.01 -0.30 IGB 2.21 2.24 -0.03 -1.34 L&G 0.40 0.40 -0.01 -1.25 MayBank 9.02 8.95 +0.07 +0.78 MAS 1.00 1.00 +0.01 +0.50 PetGas 18.92 18.80 +0.12 +0.64 PbBank 14.36 14.28 +0.08 +0.56 RHBCap 7.20 7.15 +0.05 +0.70 Sime 9.80 9.79 +0.01 +0.10 Telekom 6.09 6.03 +0.06 +1.00 Tenaga 6.82 6.74 +0.08 +1.19 TopGlove 5.13 5.13 unch unch UMW 9.99 9.90 +0.09 +0.91 YTL 1.75 1.74 +0.01 +0.57

27 Sep 2012 Kuala Lumpur Most Actives

Volume Close Change % Change Compugt 37,133,100 0.090 +0.010 +12.50 AirAsia 29,408,800 2.950 +0.100 +3.51 KeyWest 27,108,100 0.015 -0.030 -66.67 ASuprem 19,116,400 0.280 -0.005 -1.75 DiGi 16,866,000 5.290 +0.170 +3.32 YTL 16,390,000 1.750 +0.010 +0.57 IJM 16,163,400 4.740 +0.210 +4.64 Harvest 13,478,500 0.385 +0.010 +2.67 Ingens 12,010,800 0.100 unch unch MayBank 11,914,200 9.020 +0.070 +0.78 Telekom 11,267,600 6.090 +0.060 +1.00 JCY 10,277,800 0.775 -0.020 -2.52 SKPetro 10,139,300 2.310 -0.020 -0.86 Scomi 9,554,100 0.370 -0.005 -1.33 AMedia 8,716,700 1.140 +0.070 +6.54 Axiata 8,640,300 6.390 +0.050 +0.79 Focus 8,424,200 0.090 unch unch CSL 7,690,800 1.070 +0.020 +1.90 CIMB 7,556,100 7.320 -0.060 -0.81 Maxis 7,208,200 6.860 +0.060 +0.88 NICORP 6,061,200 0.245 +0.005 +2.08 Hubline 5,980,200 0.065 +0.005 +8.33 Olympia 5,752,200 0.185 +0.010 +5.71 INIX 5,738,000 0.145 -0.010 -6.45 IHH 5,675,400 3.200 +0.020 +0.63 GenM 5,496,400 3.370 -0.010 -0.30 UEMLand 5,355,500 1.680 unch unch THHeavy 4,903,500 0.505 unch unch Itronic 4,849,900 0.640 unch unch PbBankF 4,756,400 14.360 +0.060 +0.42 Permaju 4,666,100 0.450 +0.010 +2.27 Tenaga 4,524,500 6.820 +0.080 +1.19 IGB 4,350,500 2.210 -0.030 -1.34 Dialog 4,201,500 2.300 -0.010 -0.43 MUI 4,184,600 0.220 unch unch Muhibbah 3,844,500 0.940 +0.030 +3.30 Sime 3,711,600 9.800 +0.010 +0.10 HWGB 3,652,800 0.315 -0.015 -4.55 MRCB 3,586,500 1.590 +0.050 +3.25 Utopia 3,417,100 0.080 unch unch WinSun 3,326,400 0.105 -0.005 -4.55 Genting 3,201,100 8.590 -0.020 -0.23 IOI 3,106,700 4.990 -0.010 -0.20 SYF 3,097,500 0.750 -0.015 -1.96 PMCap 3,080,700 0.085 +0.010 +13.33 Bright 3,028,300 1.510 unch unch DSCSol 2,951,100 0.135 +0.005 +3.85 MahSing 2,899,600 2.000 -0.030 -1.48 Perdana 2,806,800 0.870 +0.015 +1.75 KLCCP 2,764,700 5.830 +0.140 +2.46

iPhone 5 Does Not Support TD-SCDMA - Macquarie

27 Sep 2012

Macquarie says there has been some news on various blogs/weibo/Chinese news websites that the iPhone 5 supports China Mobile's (0941.HK) 3G TD-SCDMA.  "However, after a close look at iPhone 5 specs released by technical sources we believe iPhone 5 cannot support TD-SCDMA at the hardware level in its current configuration."  The house says although iPhone 5 does not offer TD-SCDMA support in its current specification, China Mobile is still able to support users on its 2G and wifi network, and it expects smuggled phone users to be the main users on China Mobile's network (so China Mobile does not need to subsidize the handset).  Macquarie expects China Unicom (0762.HK) and China Telecom (0728.HK) to both offer the phone officially in China, with Unicom likely to launch slightly before Telecom. It keeps China Mobile at Neutral with a HK$76.00 target. CM is up 0.5% at HK$85.75.

Zeti: Expect Huge Potential for Yuan Settlement in Malaysia Trade

27 Sep 2012
Malaysia Central Bank Governor: Yuan Growth to Contribute to Global Financial Stability
KUALA LUMPUR--The yuan's growing acceptance as an alternative reserve currency to the U.S. dollar will contribute to stability in the global financial system, Bank Negara Malaysia Gov. Zeti Akhtar Aziz said Thursday. "It's an important development in a multipolar world," Ms. Zeti said at a conference on trade and investment settlement in the Chinese currency, which is also known as the renminbi. China is Malaysia's largest trading partner accounting for 14% of total trade, but only 1% of that is settled in yuan. Ms. Zeti said there is huge growth potential for settlement in yuan as the two countries have a 180 billion yuan ($28.56 billion) cross currency swap agreement.

Asian Shares Mixed, China Stocks Recover; Spain Weighs

27 Sep 2012

--Asian markets are mixed with mainland stocks recovering from earlier falls. --The Shanghai Composite rebounds from multi-year lows. --The Nikkei is flat, the Hang Seng Index adds 0.6%, and the S&P/ASX 200 is flat. (Adds information, updates/adds market levels) By Daniel Inman Asian markets were mixed on Thursday as weak regional sentiment, due to the reemergence of European concerns, was partly alleviated by a rebound in Chinese stocks. The Shanghai Composite Index was up 0.5%, pulling itself from the fresh multi-year low it hit on Wednesday, on expectations that the government could launch fresh measures to support the domestic stock market. In addition, concerns about excessive supply of stock were tempered following a report from the state-run China Securities Journal that majority shareholders in 32 companies listed on the growth enterprise board, the ChiNext, would not sell after the expiry of the forthcoming expiry of a three-year lock up period. In Hong Kong, the Hang Seng Index added 0.6%, with strong performance in Chinese energy stocks and some Chinese banks. Cnooc added 1.3% while Bank of China gained 1.0%. Spanish 10-year government bond yields crept above 6% overnight, reviving concerns over the European debt crisis, and ensuring that the risk-off sentiment seen in recent sessions remained firmly in place. Uncertainty over the health of the Spanish economy is mounting, adding pressure to the country to make a formal request for assistance from the European Central Bank. "Investors are getting nervous that the process has stalled. But things haven't fundamentally changed because at the back of all this you still have (Angela Merkel) and (Mario Draghi) pushing for the ECB to step in," said Joe Bracken, head of macro strategies at BT Investment Management in Sydney, which has 44.3 billion Australian dollars of assets under management. The euro stabilized in Asia on Thursday to $1.2878 after falling 0.2% Wednesday overnight. The dollar weakened against the yen, to Y77.67 compared to Y77.74 late Wednesday in New York, putting pressure on Japan's Nikkei Stock Average, which was flat. Toyota Motor was flat after earlier losses amid the ongoing territorial dispute between China and Japan; while social gaming companies Gree and DeNA dropped 11% and 10% respectively following a Nikkei report that NTT DoCoMo planned to launch social games on smartphones. NTT DoCoMo gained 0.6%. Aozora Bank sank 8.2% in Tokyo after a regulatory filing showed that major shareholder, Cerberus, is planning to sell a chunk of its holdings once the bank's recapitalization plan is given the go ahead. Australia's S&P/ASX 200 was flat, as miners were sold off: BHP Billiton lost 0.5%, and Fortescue Metals Group was 0.7% lower. South Korea's Kospi Composite was 0.2% higher. Oil recovered slightly on Thursday, to $90.35 a barrel, after

BURSA MALAYSIA TRADE STATISTICS 26 September 2012

BURSA MALAYSIA TRADE STATISTICS
26 September 2012 (Source Bursa Malaysia)
                            Participation  Bought              Sold               Net
                            (%)               (RMm)             (RMm)           (RMm)
Local Institutions  59.5               851.5                873.5            -22.0
Local Retail         19.4               267.0                295.2            -28.2
Foreign               21.1                330.0                280.1             50.2
                        100.0              1448.8              1448.8               0.0

Thursday, 27 Sep 2012 DIGI – Stock Pick

Thursday, 27 Sep 2012 DIGI – Stock Pick



DIGI ( 6947 : 5.07 ) : Targeting 5.32/Stop loss 4.98
Description

Resistance : 5.12 5.32
Support : 4.98

RSI of 68
RSI is on the rise

STOCHASTIC
It is neutral

Comment
The current uptrend is heading for 5.32

Trading Strategy
Buy. Stop loss is at 4.98

Disclaimer
This report is provided for information purposes only. It is not a complete analysis of every material fact respecting any company, industry, security or investment. Opinions expressed are subject to change without
notice.

Thursday, 27 Sep 2012 SUPERMX – Stock Pick

Thursday, 27 Sep 2012 SUPERMX – Stock Pick



SUPERMX ( 7106 : 2.01 ) : Targeting 2.46/Stop loss 1.92
Description

Resistance : 2.18 2.46
Support : 1.92

RSI of 45
RSI is on a buy divergence

STOCHASTIC
It is oversold

Comment
Following the recent pullback to 1.93, it is due for a technical rebound

Trading Strategy
Buy. Stop loss is at 1.92

Disclaimer
This report is provided for information purposes only. It is not a complete analysis of every material fact respecting any company, industry, security or investment. Opinions expressed are subject to change without
notice.

前景亮眼估值低 源宗集團（GCB) 具23%揚升空間

券商：馬銀行投銀
目標價：2.46令吉

源宗集團（GCB，5102，主要板消費）目前估值誘人，看好股價具有23%揚升空間，同時憑單目前于溢價2%水平交易，是一個很低的買入門檻。

　市場估計，該公司2012財年將錄得1億3500萬令吉創紀錄的收益，以連續第5年獲利增長。

　與同行相比，目前該公司估值誘人，交易于2012財年本益比7.2倍及2013財年本益比6.5倍，相比同樣是中小型消費股的12倍。

　源宗集團2012財年首半年賺幅較高，料可拉近與新加坡掛牌的Petra Food的估值距離。

　我們認為，該公司估值應可改善至2013財年本益比8倍，相等于2.46令吉的目標價，即具有23%的揚升空間。

　至于源宗集團-WA（GCB-WA，5102WA，主要板憑單）交易于溢價2%水平，提供一個很低的買入門檻。

　長期而言，該公司是一個高效率的可可研磨商，不但回酬比同行佳，賺幅也較高，主要是其經營模式，可輕易取得原料與到達消費市場。

　亞洲及新興市場對可可粉的需求與日俱增，巧克力生產商的外包活動增加，亦帶動可可成份需求，使源宗集團業務長期前景看俏。

　閉市時，源宗集團報1.99令吉，跌1仙，成交量9萬8300股

p

爭釣島恐引爆貿易戰‧大馬投資或受惠‧區域經濟料受衝擊

2012-09-26 

• 
  市場擔心中日貿易戰可能一觸即發，本地分析員認為，中日貿易戰一旦引爆，可能短暫打擊本區域貿易和影響產品供應鏈，同時若日資轉移投資地點，大馬將可能從中受惠。（圖：法新社）

隨著中日兩國對釣魚島主權紛爭僵持不下，市場擔心中日貿易戰可能一觸即發，本地分析員認為，中日貿易戰一旦引爆，可能短暫打擊本區域貿易和影響產品供應鏈，同時若日資轉移投資地點，大馬將可能從中受惠。

中國和日本近期對釣魚島主權引發的衝突，已導致中國各地爆發群眾示威活動，局勢若惡化，將可能掀起貿易戰。

日分散海外投資
馬可望受惠

豐隆研究指出，如果釣魚島爭端持激化成為貿易戰，將令本區域貿易暫時受打擊。

“無論如何，之前的日本海嘯和泰國水災事件顯示，供應鏈中斷的情況可在兩/三個月後恢復正常。＂

豐隆研究認為，日本一直以來都是大馬製造領域首要的外國投資者，由於大馬和日本的投資關係良好，大馬有望從日本份散海外投資中受惠。

在現階段，此僵局預料不會升級為軍事行動，惟預料可能會演變成為貿易戰，到時將對貿易、投資和旅遊領域帶來衝擊。

中日兩國的貿易和投資關係緊密，中國是日本的第一大貿易伙伴，佔2011年總貿易額約20%，至於日本則是中國的第二大貿易伙伴，排名僅次於美國，佔總貿易額約10%比重。

日本出口至中國的產品主要是資本財（佔48%）和交通設備，因此日本的重型設備和交通運輸公司將潛在成為貿易戰的大輸家。

日本則主要從中國進口消費品（如食品和飲料），佔進口的33%比重。

日本投資者基於中日關係緊張，也可能轉移投資。對日本而言，流向中國的投資在2011年達126億美元（佔總額11%），是第三大投資地點，僅低於美國和英國。從中國的角度而言，日本是第4大外來直接投資來源。

旅遊業首當其衝

一旦中日衝突升級，旅遊業將蒙受重創，最新數據顯示，中日兩國的旅遊互訪頻繁。

豐隆研究指出，即使中日雙國未失和，該行已預期全球經濟在未來6個月成長呆滯，因為主要經濟體（中國除外）缺乏財政能力以振興經濟。雖然中國有能力展開龐大財政擴張計劃，但大部份計劃中的項目為基建工程，對全球需求產生的外溢效用十分有限。反之，若是刺激消費者開銷，則有助提振全球需求。

豐隆研究維持大馬2012年經濟成長5.0%的預測，因國內建築活動蓬勃和消費者開銷穩健，將可緩和製造業疲軟所帶來的衝擊。

同時，預期國家銀行保持隔夜政策利率在3.0%水平，直至需求推動的通膨壓力重新抬頭，國行才可能升息。

Everybody Out Of Tech Stocks!

Joe Weisenthal

 Sep. 26, 2012

As the quarter comes to an end, that's the big theme lately.

Tech has been a major underperform, and that even includes Apple, which is down over 1% today, fell over 2% yesterday, and fell over 1% the day before, far outpacing the declines of the overall market, and even the NASDAQ.

Other big losers lately in the tech world:

• Facebook has had a rough week, falling from around $23 on Friday to around $20 today.
• Hewlett Packard has been bleeding, losing over 2% today.
• Chip maker AMD is one of the worst stocks in the S&P this quarter, and is down about 10% this week.
• Cisco has fallen all week, ans is off about 1% today.
• Microsoft is off about 3% this week.

Big exception: Google, which hit a new high this week.

Sam Ro

 Sep. 26, 2012

AP Images

The modest move in today's U.S. trading session belies the beating that the European markets took.

First the scoreboard:

Dow: 13,413, -44.0, -0.3 percent

S&P 500: 1,433, -8.2, -0.5 percent

NASDAQ: 3,093, -24.0, -0.7 percent

And now the top stories:

• Investors in European stocks where happy to see markets those markets close today.  While markets closed off of their lows, they still got crushed.  Italy sank 3.3 percent. Spain tanked 3.9 percent and its borrowing costs surged.  Spain is waiting for its leaders to unveil the country's new budget.  But everyone expects it to come with harsh spending cuts.  Spaniards took to the streets in protest again today.  Greece's two largest labor unions also went on strike today, and things got violent. 

• The German stock market also took it on the chin today, falling 2 percent.  The largest economy in Europe went into the debt markets to sell 5 billion euros worth of bonds, but they were only able to sell 3.19 billion euros worth.  Furthermore, their borrowing costs jumped to 1.52 percent from a 1.42 percent at a prior auction for similar debt. 

• Today's new home sales report was mixed.  Sales unexpectedly fell 0.3 percent to 373k.  However, the median price was at a 5-year high.

• The U.S. trading session was uneven with the Dow selling off modestly and tech stocks taking it on the chin. The biggest loser in the S&P 500 was Jabil Circuit, which missed earnings and issued weak guidance.

• Despite the sell-off in the tech sector, U.S. stocks continue to be remarkably resilient.  BMO Capital's Brian Belski told Bloomberg's Tom Keene this morning that at least some of this resilience has to do with under-invested fund managers trying to play "catch-up" as the third quarter comes to a close.  This type of behavior is sometimes referred to aswindow-dressing.