Rin Nam Yoong emerges in Perstima: Son of co-founder buys half of company that owns 32.8% of Perstima.
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SILK Holdings Bhd’s PN17 status is expected to be lifted after the listing of its new shares arising from the conversion of the redeemable convertible unsecured loan stocks-A (RCULSA) and from the acquisition of the entire equity interest of AQL Aman Sdn Bhd, as well as the issuance of redeemable convertible unsecured loan stocks-B to the vendors of AQL.
Both the listing of new shares and issuance of loan stocks were expected to be implemented tomorrow.
Silk raised close to RM5mil from its RCULSA at the close of acceptance and payment on Oct 1, which would be used as working capital and to defray expenses related to its proposed regularisation scheme.
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Crude Palm Oil Futures End Up 3% On Commodities, Exports
Posted: 12 Oct 2009 03:57 AM PDT
Crude palm oil futures ended higher Monday amid a commodities rally and price-supportive export figures, market participants said.
The benchmark December contract on Bursa Malaysia Derivatives ended up MYR62, or 3%, at MYR2,147 a metric ton, the highest since Sept. 28, after trading in a narrow MYR2,118-MYR2,152/ton range.
Prices moved higher in the early session after cargo surveyor Intertek Agri Services Saturday put Oct. 1-10 exports at 339,195 tons, up 8.3% from a month ago.
Another cargo surveyor SGS (Malaysia) Bhd. put exports at 345,393 tons. Trade participants were expecting a rise in exports to 339,000 tons.
CPO prices were unaffected by the rise in Malaysia's domestic palm oil reserves, which had risen to a seven-month high, as the figure was already factored in last week, traders said.
According to data released by the Malaysian Palm Oil Board, palm oil stocks rose 11.5% to 1.58 million tons at the end of September, the highest level since February.
The MPOB has also estimated September CPO output rose 4.1% to 1.56 million tons.
"Even though palm oil stocks are slightly higher, it is not a major concern as Malaysia has palm oil storage capacity of around 3 million tons. At current CPO prices, demand may still increase as prices are still attractive," said a Kuala Lumpur-based trading executive.
Prices may continue to move higher in the near term, with prices likely to test resistance at MYR2,170, then MYR2,200, said an analyst in Singapore.
Traders and producers polled last week had expected palm oil stocks to rise to 1.52 million-1.57 million tons.
CPO prices were also backed by strong buying interest in the cash market and higher soyoil prices, with traders fearing averse weather conditions in the U.S. may affect soybean crops.
December soyoil on the Chicago Board of Trade settled 53 points higher at 35.20 cents a pound and was trading up 32 points at 35.52 cents a pound by the end of trade on the BMD.
At 1035 GMT, November light, sweet crude on the New York Mercantile Exchange was trading $1.10 higher at $72.87 a barrel.
In the cash market, cash palm olein for November/December traded $670/ton and $682.50/ton, January/February/March $670/ton and $675/ton, April/May/June traded at $677.50/ton, free on board Malaysian ports, a Singapore-based trading executive said.
Cash CPO for prompt shipment was offered MYR50 higher at MYR2,180/ton.
A total of 20,456 lots of CPO were traded on the BMD versus 13,149 lots Friday.
The open interest stood at 88,935 lots, down from 91,115 lots. One lot is equivalent to 25 tons.
Closing BMD Crude Palm Oil (CPO) futures prices in MYR/ton at 1030 GMT:
Month Close Previous Change High Low
Oct 09 2,193 2,129 Up 64 2,193 2,140
Nov 09 2,164 2,100 Up 64 2,170 2,125
Dec 09 2,147 2,085 Up 62 2,152 2,118
Jan 10 2,144 2,082 Up 62 2,150 2,118
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OBSERVATIONS: Lifted by a combination of short-covering and fresh buying interest, the Kuala Lumpur CPO futures benchmark December 2009 contract closed last Friday at RM2,085 a tonne, up RM49 or 2.41 per cent over the week.
The price rise, however, was really nothing to shout about.
Because of market players’ prevarication and the uncertainly over direction, trading for much of the week was done within a narrow RM2,100-RM2,013 a tonne band. This market only managed to do a decent price run-up last Friday.
Still, there was genuine and fresh buying interest, as evidenced by signs of accumulation in the volume complex indicators. And short-covering liquidation of short positions was evidenced by the contraction of the total open interest position by 1,696 open contracts to 93,504 open contracts
The real catalyst behind the market’s rise in price, though, was weakness in the US dollar, which gave world commodity markets overall a strong lift last week. Gold surged to a record high above US$1,050 (US$1 = RM3.39) an ounce and US grain markets were buoyant.
Although palm oil benefited from the knock-on effect of strength in foreign edible oil markets the local market’s relative small price gain could best be described as an uptick, which could be ascribed to caution on the part of market players ahead of the Malaysian Palm Oil Board’s unveiling of its report on September trade data and end-September 2009 stocks, which should be public knowledge today.
However, this market’s – as well as that of world commodity markets overall – immediate price direction will likely continue to hinge the fate of the US dollar, that is, whether the US greenback will see further weakness – or strength – in the near-term future.
Conclusion: Though this market is likely see an extension of last week’s price rise in early trade this week, it needs to stage a decisive breakout above the RM2,130 a tonne short-term overhead resistance level in order to engender investor confidence that what we are seeing are the stirrings of – or the start to – a new bull phase
