Daily Archives: March 23, 2016

23Mar
bursa-malaysia-360x270

China’s Jiangxi Copper plans output cuts after profit fall

SINGAPORE:

  • Jiangxi Copper Co Ltd, China’s biggest integrated copper producer, said it plans to cut refined copper output by 6.7% this year, in line with a proposal by the country’s big smelters to reduce output to support prices.
  • The move would cut production by 80,000 tonnes to 1.175 million tonnes, and follows a pledge last week by No. 2 producer Tongling Nonferrous Metals Group to reduce output by 110,000 tonnes.
  • Nine of China’s large copper smelters agreed last year to cut output by at least 350,000 tonnes in 2016, and said they could deepen the cuts if prices and profitability deteriorate.
  • Copper prices have come under pressure from high supply and reduced demand in China, the world’s top consumer, but have recovered around 7% this year, supported by output cuts from firms like Glencore and Freeport McMoRan.
  • Jiangxi Copper on Tuesday reported a fourth straight fall in annual earnings, with 2015 net profit tumbling 77% to 637.2 million yuan (US$98.2 million) due to lower metal prices, it said in a filing with the Shanghai stock exchange.
  • Economic conditions could restrict demand growth for nonferrous metals this year, the company said, but forecast a 6% rise in global copper mine production, adding pressure to prices.

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23Mar
BURSA1

Bursa Malaysia : O&G industry faces structural shift

KUALA LUMPUR :

  • The oil and gas (O&G) industry is adapting to a “fundamental structural shift”, with billions of ringgit worth of projects having been deferred or cancelled around the world, said Datuk Wan Zulkiflee Wan Ariffin, president and group chief executive officer of Petroliam Nasional Bhd (Petronas).
  • “This mindset and drive for excellence will be critical to adapt to the challenges at hand to ensure long-term robustness,” he said during his opening remarks at the Offshore Technology Conference (OTC) Asia 2016 yesterday.
  • He said globally, industry layoffs have exceeded a quarter of a million and close to US$50bil worth of projects have been cancelled or deferred.
  • “Potential divestments continue to make headlines. Over the first quarter of this year, major O&G players, in turn, have announced significant drops in revenue and profits for 2015 compared to 2014,” he said.

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23Mar
MYR2

Kuala Lumpur : Ringgit strengthens to 4.00 against US dollar

PETALING JAYA :

  • The ringgit has strengthened, as a fresh wave of foreign money flowing into the local bourse lifted the currency’s exchange rate to as high as RM3.98 to US$1.
  • This is the first time since August last year that the ringgit has traded below the pyschologically important four level.
  • The FTSE Bursa Malaysia KL Composite Index climbed 6.39 points to 1,724.75 points – its highest in more than seven months.
  • Alliance Bank chief economist Manokaran Mottain said while it was a “good sign” that the ringgit had briefly strengthened to below four, he expected it to continue to exhibit volatility for a while, in tandem with the volatility in crude oil prices.
  • “At the moment, temporary relief is being provided for it largely due to crude, which is trading higher at above US$40 per barrel, but we don’t think it (oil) has reached a steady level yet, ” Manokaran said.
  • Notably, although the benchmark Brent crude has risen more than 50% from 12-year lows recorded in January, lingering concerns on China’s economic slowdown and the glut in global oil supply continue to stoke concerns across markets.
  • The ringgit was last traded at 4.0097 against the US dollar yesterday, up 1.2% from 4.058 on Monday.

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23Mar
comex

Comex Trading Signals and Market News – 23 March 2016

INTERNATIONAL CURRENCY BUZZ :

  • Natural Gas futures plunged by more than 3 per cent in the domestic market on Monday as investors and speculators exited positions in the energy commodity tracking weakness in the fuel overseas as forecasts for late winter cold across the eastern parts of the US failed to live up to expectations dimming the demand for gas-fired heating at offices and homes.
  • Copper prices fell by 0.27 per cent on Tuesday as speculators cut down their bets after select base metals weakened in global markets.Market analysts said most base metals retreated at the London Metal Exchange (LME) as the prospect of acceleration in US rate hikes supported the dollar dampening demand for metals and other commodities put weighed on copper futures.
  • Gold prices rose by 0.16 per cent on Tuesday as markets weighed fresh comments from Fed policymakers on the track for rate hikes in 2016. Atlanta Fed President Dennis Lockhart said that despite risks to the downside that have arisen since the beginning of the year the US economy continues to grow about as he expected. Gold futures for April 2016 contract at MCX were trading at Rs. 28987 per 10 grams up by 0.16 per cent after opening at Rs. 28961 against the previous closing price of Rs. 28941.

ECONOMY NEWS :

  • China is studying a Tobin tax as a possible policy tool to curb capital outflows, an official at the country’s foreign exchange regulator said on Tuesday, even though he added that such flows have eased in recent months.Wang Yungui, head of the policy and regulation department at China’s State Administration of Foreign Exchange (SAFE), did not mention a time frame or other details about when such a tax might be rolled out in the world’s second largest economy.
  • Japan’s lower house of parliament gave its approval on Tuesday for academic and reflationist Makoto Sakurai to join the Bank of Japan’s divided policy board, a move seen as tipping the balance more in favor of Governor Haruhiko Kuroda’s push for radical stimulus.Sakurai, a think tank executive, would replace Sayuri Shirai, a former International Monetary Fund economist who voted against the BOJ’s decision in January to adopt negative interest rates. Shirai’s five-year term ends on March 31.
  • The growth outlook for ASEAN economies is likely to be mixed in the next two years, with domestically focused economies such as Indonesia and the Philippines on relatively better footing than their more trade-reliant neighbors, Moody’s Investor Service said on Tuesday.The cautious view from the ratings agency is a warning sign for global policymakers who are relying on emerging economies, particularly in Asia, to drive global growth in the coming years.

TRADING STRATEGY :

  • BUY GOLD ABOVE 1255 TARGET 1275 1305 SL 1225
  • SELL GOLD BELOW 1240 TARGET 1220 1190 SL 1270

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23Mar
forex-trading-tips

IForex Market Trading Signals and News – 23 March 2016

INTERNATIONAL CURRENCY BUZZ :

  • Forex – Yen hits day’s highs after Brussels explosions
  • Forex -Aussie gains ground after data, Stevens; kiwi holds steady
  • Forex-Dollar rises against rivals in risk-off trade

EUR/USD
EUR/USD has posted slight losses on Tuesday, as the pair trades at the 112 line in the European session. On the release front, German Ifo Business Climate improved to 106.7 points, beating expectations. German Manufacturing PMI remained steady at 50.4 points, short of the estimate. Eurozone Manufacturing PMI improved to 51.4 points, matching the forecast. In the US, there are no major releases on the schedule.The Eurozone released a host of indicators on Tuesday, including PMIs from the manufacturing and services sectors. German Services PMI improved to 55.5 points, pointing to strong expansion. However, Manufacturing PMI came in at 50.4 points, short of the forecast of 50.4 points. There was better news from German Ifo Business Climate, which improved to 106.7 points, ahead of the estimate of 106.1 and marking a 3-month high. Later in the day, we’ll get a look at Eurozone and German ZEW Economic Sentiment.

GBP/USD
The pound dropped against the U.S. dollar on Tuesday, after the release of disappointing U.K. inflation data and as a terrorist attack in Brussels dampened risk sentiment. GBP/USD hit 1.4254 during European morning trade, the pair’s lowest since March 17; the pair subsequently consolidated at 1.4283, declining 0.60%. Cable was likely to find support at 1.4219, the low of March 17 and resistance at 1.4480, Monday’s high.The U.K. Office for National Statistics said the rate of consumer price inflation rose by 0.3% last month, below forecasts for an increase of 0.4% and unchanged from 0.3% in January. Month-over-month, consumer prices edged up 0.2% in February, below forecasts for an advance of 0.4% and following a decline of 0.8% in the prior month.

RECOMMENDATION :

  • BUY GBP/USD ABOVE 1.4300TARGET 1.4320 1.4350 SL 1.4270
  • SELL GBP/USD BELOW 1.4240 TARGET 1.4220 1.4190 SL 1.4270

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23Mar
klse

Financial Klse Malaysia Stock Market Trading Picks And News – 23 March 2016

MARKET UPDATES :

  • The FBM KLCI index gained 6.39 points or 0.37% on Tuesday. The Finance Index increased 0.11% to 14697.96 points, the Properties Index up 1.10% to 1192.87 points and the Plantation Index rose 0.23% to 8060.25 points. The market traded within a range of 8.96 points between an intra-day high of 1724.75 and a low of 1715.79 during the session.
  • Actively traded stocks include SGB-PR, HUBLINE, HWGB-WD, EKA, AAX-WA, AIRASIA, KGROUP, PALETTE, SONA-WA and TENAGA. Trading volume increased to 2422.08 mil shares worth RM2876.26 mil as compared to Monday’s 2010.01 mil shares worth RM2052.67 mil.
  • Leading Movers were UMW (+42 sen to RM7.04), TENAGA (+52 sen to RM14.00), AS- TRO (+8 sen to RM3.00), CIMB (+8 sen to RM4.86) and SIME (+8 sen to RM8.00). Lagging Movers were SKPETRO (-5 sen to RM2.10), WPRTS (-8 sen to RM4.02), YTL (-3 sen to RM1.66), GENM (-8 sen to RM4.45) and RHBCAP (-9 sen to RM5.88). Market breadth was negative with 396 gainers as compared to 473 losers.
  • The KLCI extended its winning streak with last minute spike again and closed higher at 1724.75 points amid overnight slight gains in US market. The performance of our local bourse was lifted by buying interest in heavy weight counters such as Tenaga Nasional, CIMB Group Holdings and Sime Darby.

STOCK RECOMMENDATION :

  • BUY KIMLUN ABOVE 1.830 TARGET 1.860 1.910 SL 1.770

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