This in turn will affect our palm oil prices.
NEW YORK (AP) - The price of oil recorded itsbiggest weekly drop ever, and a gallon of gas finally pulled back from itsrecord high. So is it time to declare the energy bubble popped? Experts won't go that far just yet. "It's too early to say we've seen the worst of it," said Tom Kloza,publisher and chief oil analyst of the Oil Price Information Service in Wall,N.J. "We would be Pollyannish if we believe one week represents a trend." Still, with oil recording yet another drop on Friday, some industry expertswho just days ago thought there was more juice left in oil's meteoric run arereconsidering. "If this is not the bubble's implosion, than it's a reasonable facsimile,"analyst and trader Stephen Schork said in his daily market commentary. "Timewill tell. Nevertheless, for the time being we no longer care to hold a bullishview." Light, sweet crude for August delivery fell 41 cents Friday to settle at$128.88 on the New York Mercantile Exchange -- well below its trading record ofmore than $147 a week earlier. The average price of a gallon of regular gas fell about a penny for the day,to $4.105, according to auto club AAA, the Oil Price Information Service andWright Express. Diesel prices dipped three-tenths of a cent to $4.842 a gallon. Some analysts said a nationwide average of $4 or even lower could be in theoffing -- almost unthinkable in a summer when there has seemed to be no reliefat the pump -- although they cautioned that there is no guarantee prices willstay low. "We're going to see some relief from that relentless march higher," Klozasaid. Gas may be getting just a bit cheaper, but major changes in how Americanslive and drive are already in motion. Car buyers have been fleeing to more fuel-efficient models. U.S. sales ofpickups and sport utility vehicles are down nearly 18 percent this year throughJune, while sales of small cars are up more than 10 percent. While slashing production of more-profitable trucks and SUVs, automakershave been scurrying to build their most fuel-efficient models faster. Toyota Motor Corp., which hasn't been able to keep up with demand for its46-miles-per-gallon Prius hybrid, said last week it will start producing thePrius in the U.S. and suspend truck and SUV production to meet changing consumerdemands. Ford Motor Co. and General Motors Corp. also have announced plans toincrease small car production, and GM has said 18 of the 19 vehicles it islaunching between now and 2010 are cars or crossovers. Some brave traders used the week's pullback in oil prices as a chance to buybarrels that suddenly seemed to be on sale. But oil analysts were advisinginvestors to beware. "Buying here is an opportunity if you are a deep believer in $200 (abarrel), otherwise we think that caution would be better applied," analystOlivier Jakob of Petromatrix in Switzerland said in a research note. If oil buyers sense that the slide was overdone, you'll probably notice atthe pump quickly. "If (oil prices) rebound, you're going to see a quick reaction at the gasstation, because their profit margins are so stretched," AAA spokesman GeoffSundstrom said. "They may be very fast bringing prices back up." In other Nymex trade, heating oil futures fell 5.23 cents to settle at$3.6915 a gallon while gasoline futures edged up 0.73 cent to $3.1709 a gallon.Natural gas futures rose 3.3 cents to $10.57 per 1,000 cubic feet. In London, Brent crude futures for September delivery rose 88 cents tosettle at $130.19 on the ICE Futures Exchange. Copyright 2008 Associated Press. All rights reserved. This material may not be
Saturday, July 19, 2008
Friday, July 18, 2008
5:22 pm - FKLI has a wide range bar !
For the downtrend to persist ! FKLI need a follow thru & selldown on Mon.
12:33 pm - FKLI selldown and trying to build a double bottom at 1094/1095
Sell into strength and buy into weakness !
8:59 am - FKLI daily chart is either forming ???
The formation that FKLI is doing in coming days - is either a head and shoulder (bearish) or double bottom (bullish) with a breakout very soon !
Notice if FKLI break above the trading channel, FKLI can test back 1146.
Thursday, July 17, 2008
5:01 pm - FKLI is going a rangebound situation
Trading is ranging. So buy at support and sell at resistance is the strategy for tomorrow.
9:35 am - FKLI has no follow thru on the downtrend.
We had 3 consecutive down bar and FKLI will take a breathe first i.e. it may reverse.
Wednesday, July 16, 2008
5:23 pm - Another down bar for FKLI !
If DJIA recover tonite, we may have a gap up day for FKLI tomorrow. Sell higher and buy lower.
2:42 pm - Anwar factor is on again ! See malaysiakini.com for more news
The FKLI gap down due to the bad news !
10:49 am - Even US is preventing certain counters on short selling.
SEC to Limit Short Sales of Fannie, Freddie, Brokers (Update6)
By Jesse Westbrook and David Scheer
July 15 (Bloomberg) -- The U.S. Securities and Exchange Commission will limit the ability of traders to bet on a drop in shares of brokerage firms, Freddie Mac and Fannie Mae as part of a crackdown on stock manipulation, the agency's chairman said.
Christopher Cox told the Senate Banking Committee the agency will require traders to hold shares of the two mortgage buyers and the brokerages before they execute a short sale. The order, to be in effect for as long as 30 days, will bar the practice called naked short selling, in which traders avoid the financial cost of borrowing shares when betting they'll fall.
``Since it's impossible to police false rumors, the next best option for protecting fragile financial institutions is to halt short-selling for a time being,'' said David Trone, analyst at Fox-Pitt Kelton Cochran Caronia Waller. ``The SEC's action is at least a partial measure.''
The SEC is investigating whether trading abuses contributed to the collapse of Bear Stearns Cos. in March and the 80 percent drop in the market value of larger rival Lehman Brothers Holdings Inc. this year. Fannie Mae and Freddie Mac have each lost about 80 percent of their value amid speculation the mortgage-market crisis may push the firms into insolvency.
Hedge-fund manager William Ackman, who oversees $6 billion at Pershing Square Capital Management, is among those betting shares of Fannie Mae and Freddie Mac will fall. There's no indication he is engaging in naked short selling, in which traders never borrow shares from their broker or deliver the stock to buyers.
SEC Reluctance
The SEC had been reluctant to curb short sales ``because it would require a major retooling of the plumbing of Wall Street,'' said James Angel, a professor at Georgetown University studying short sales. ``It's only when the big Wall Street firms are threatened that the SEC does something about it.''
Cox said the SEC also will draft rules ``to address these same issues across the entire market.''
Short-sellers, who borrow shares betting that they'll decline, are spreading rumors about Lehman in an organized attempt to depress the stock, according to Richard Bove, bank analyst at Ladenburg Thalmann & Co. in Lutz, Florida.
``As with Bear Stearns, Lehman has been targeted by the fear- trade,'' Fox-Pitt's Trone in a report yesterday. Lehman should go private to avoid attacks by short-sellers, he said.
Freddie Mac, down as much as 34 percent today before Cox's comments, fell 26 percent to $5.26 in New York Stock Exchange composite trading. Fannie Mae tumbled 27 percent. Lehman rose 82 cents, or 6.6 percent, to $13.22, ending a four-day slide.
More Costly
The order, published today, requires anyone making a short sale to first ``borrow or arrange to borrow'' the securities and then deliver them by the settlement date. It applies to shares in 19 firms including Citigroup Inc., JPMorgan Chase & Co. and UBS AG.
The order takes effect on July 21 and expires at the end of July 29. It may be extended for a total of 30 calendar days.
The SEC's proposal will raise the cost of short-selling a stock, said Gregory DePetris, co-founder of Quadriserv Inc., a New York brokerage that specializes in securities lending. ``There will be greater demand for shares,'' he said. ``It will make the process a little less easy.''
In traditional short selling, traders borrow stock through a broker and hope to profit by selling shares at a higher price and later buying them back at lower prices to repay the loan.
Naked short selling isn't necessarily illegal, unless authorities can prove fraud, such as a scheme to manipulate stock prices.
`More Efficient'
``Short-sellers in general help price discovery and make the market more efficient,'' said Warren Chiang, a fund manager at Mellon Capital Management, which oversees about $200 billion. ``But naked shorting isn't fair.''
U.S. Senator Charles Schumer questioned whether the SEC should restore the so-called uptick rule, which barred traders from short-selling stocks when prices are falling. The rule, scrapped in June 2007, was implemented after the Great Depression to prevent raids on companies.
While the regulator is considering ``some other kind of price test'' to regulate short selling, it has no plans to reinstitute the uptick rule, Cox said. ``It was just very clear that that rule no longer mattered,'' he said.
To contact the reporters on this story: Jesse Westbrook in Washington at jwestbrook1@bloomberg.net; David Scheer in New York at dscheer@bloomberg.net.
By Jesse Westbrook and David Scheer
July 15 (Bloomberg) -- The U.S. Securities and Exchange Commission will limit the ability of traders to bet on a drop in shares of brokerage firms, Freddie Mac and Fannie Mae as part of a crackdown on stock manipulation, the agency's chairman said.
Christopher Cox told the Senate Banking Committee the agency will require traders to hold shares of the two mortgage buyers and the brokerages before they execute a short sale. The order, to be in effect for as long as 30 days, will bar the practice called naked short selling, in which traders avoid the financial cost of borrowing shares when betting they'll fall.
``Since it's impossible to police false rumors, the next best option for protecting fragile financial institutions is to halt short-selling for a time being,'' said David Trone, analyst at Fox-Pitt Kelton Cochran Caronia Waller. ``The SEC's action is at least a partial measure.''
The SEC is investigating whether trading abuses contributed to the collapse of Bear Stearns Cos. in March and the 80 percent drop in the market value of larger rival Lehman Brothers Holdings Inc. this year. Fannie Mae and Freddie Mac have each lost about 80 percent of their value amid speculation the mortgage-market crisis may push the firms into insolvency.
Hedge-fund manager William Ackman, who oversees $6 billion at Pershing Square Capital Management, is among those betting shares of Fannie Mae and Freddie Mac will fall. There's no indication he is engaging in naked short selling, in which traders never borrow shares from their broker or deliver the stock to buyers.
SEC Reluctance
The SEC had been reluctant to curb short sales ``because it would require a major retooling of the plumbing of Wall Street,'' said James Angel, a professor at Georgetown University studying short sales. ``It's only when the big Wall Street firms are threatened that the SEC does something about it.''
Cox said the SEC also will draft rules ``to address these same issues across the entire market.''
Short-sellers, who borrow shares betting that they'll decline, are spreading rumors about Lehman in an organized attempt to depress the stock, according to Richard Bove, bank analyst at Ladenburg Thalmann & Co. in Lutz, Florida.
``As with Bear Stearns, Lehman has been targeted by the fear- trade,'' Fox-Pitt's Trone in a report yesterday. Lehman should go private to avoid attacks by short-sellers, he said.
Freddie Mac, down as much as 34 percent today before Cox's comments, fell 26 percent to $5.26 in New York Stock Exchange composite trading. Fannie Mae tumbled 27 percent. Lehman rose 82 cents, or 6.6 percent, to $13.22, ending a four-day slide.
More Costly
The order, published today, requires anyone making a short sale to first ``borrow or arrange to borrow'' the securities and then deliver them by the settlement date. It applies to shares in 19 firms including Citigroup Inc., JPMorgan Chase & Co. and UBS AG.
The order takes effect on July 21 and expires at the end of July 29. It may be extended for a total of 30 calendar days.
The SEC's proposal will raise the cost of short-selling a stock, said Gregory DePetris, co-founder of Quadriserv Inc., a New York brokerage that specializes in securities lending. ``There will be greater demand for shares,'' he said. ``It will make the process a little less easy.''
In traditional short selling, traders borrow stock through a broker and hope to profit by selling shares at a higher price and later buying them back at lower prices to repay the loan.
Naked short selling isn't necessarily illegal, unless authorities can prove fraud, such as a scheme to manipulate stock prices.
`More Efficient'
``Short-sellers in general help price discovery and make the market more efficient,'' said Warren Chiang, a fund manager at Mellon Capital Management, which oversees about $200 billion. ``But naked shorting isn't fair.''
U.S. Senator Charles Schumer questioned whether the SEC should restore the so-called uptick rule, which barred traders from short-selling stocks when prices are falling. The rule, scrapped in June 2007, was implemented after the Great Depression to prevent raids on companies.
While the regulator is considering ``some other kind of price test'' to regulate short selling, it has no plans to reinstitute the uptick rule, Cox said. ``It was just very clear that that rule no longer mattered,'' he said.
To contact the reporters on this story: Jesse Westbrook in Washington at jwestbrook1@bloomberg.net; David Scheer in New York at dscheer@bloomberg.net.
8:45 am - DJIA break lower below 11,000
I think DJIA will reverse back on the strength on back on the volume last nite.
Tuesday, July 15, 2008
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