As for FCPO, market again found good support in the afternoon to close higher today. Buying was tied to continuing bullish sentiment and ideas that short term fundamentals are positive. Weak ringgit, which lost more than 0.5 pct vs USD today, was also supportive. A rebound in China Dalian RBD olein futures to close higher added support. Market was lower in the morning following some weekend liquidation after CBT soyoil and crude mineral oil eroded. Prices were 1 to 24 lower in the morning and rose to 27 higher in the afternoon.
The Reuters and Bloomberg polls on MPOB May data to be released on 10 June was slightly positive, with lower stocks although within expectations. Market will be looking towards global weather developments and export numbers for further direction in the coming weeks. Excessive rain in the US and weak Indian monsoon are currently supportive for the market.
Technical view - prices consolidating on recent sharp rise in a 2250 - 2350 range. Indicators remain positive. Prices may move to 2400. Trend up ; RSI 70.48 ( slightly overbought ) ; support 2250 / 2225 / 2150 ; resistance 2350 / 2400 / 2450.
In other news...
🇺🇸 U.S. stocks closed narrowly mixed on Friday as investors eyed developments in Greece and weighed a bond yield rally on a strong jobs report, which supports the case for a rate hike this year.
🇺🇸 Non-farm payrolls increased 280,000 last month, the largest gain since December, above the 225,000 that economists polled by Reuters had expected. Also, unemployment slightly above forecasts at 5.5%.
€ European stocks were down at a 4-week low on Greek bankruptcy concerns after Greece deferred a 300 million euro debt payment due to the IMF on Friday until the end of the month. Also pressuring stocks was the strong U.S. jobs report.
📝 Greece's ASE Stock Index tumbled -4.55% and the 10-year Greek bond yield rose 40 bp to a three-session high of 11.32% on the news.
🇩🇪 German Apr factory orders rose +1.4% m/m and +0.4% y/y, stronger than expectations of +0.5% m/m and -0.6% y/y.
🇨🇳 China's Shanghai Composite Index climbed +1.54% to a 7-1/3 year high amid speculation the government will boost stimulus measures to bolster the economy along with cross-borders sales of mutual funds that may widen access to financial markets and increase equity inflows.
⛽ Oil prices jumped on Friday after Baker Hughes reported the number of rigs drilling for oil in the United States fell for the 26th consecutive week.
👑 Gold hit an 11-week low on Friday, heading for a third straight weekly slide, as the dollar extended its gains after better-than-expected U.S. employment data bolstered prospects for an interest rate increase this year. Now, $1,172.60.
🌴 FCPO (RM2,341) continue found support in the afternoon and close higher. The Bloomberg and Reuter polls on MBOP data to be release on 10 June was slightly positive, with lower stocks although within expectation. Market will be looking toward global weather developments and exports number for further directions.
🌺 Ringgit has fallen near the six-year low as the concerns of the sovereign investment company 1MDB remain escalated. Technically, the USD/MYR pair has strong resistance near 3.75 area which it failed to break through in March 2015 and in 2009 (3.7550). If breaking that level, Ringgit will push to its lowest level since early 2006.
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