FKLI Commentary on 18/11/08

FKLI November contract rise 6.5 points higher compare to previous trading session at 891 with a total of 7392 lot traded in the market.

FKLI was traded higher during the 2nd trading session due to most of the regional recovered from overnight Dow Jones weak closing. Technically, FKLI manage to close at 891 higher than previous high at 890.5 while seems break up from a descending triangle in the 15 minutes price chart. We expect this spurt was intended to complete wave 5 around 940 regions. Traders were advice to hold long position in the coming trading session while being cautious around the support levels at 880 and 860 regions.

Breaking News-RTRS-UPDATE 1-Malaysia mulls new rule on palm oil millers

KUALA LUMPUR, Nov 17 (Reuters) - Malaysia may introduce a regulation to force palm oil millers to buy from oil palm smallholders, Commodities Minister Peter Chin said on Monday. Inventories of the vegetable oil rose to a record 2.09 million tonnes in October, resulting in millers running at near full capacity and making them reluctant to buy palm fruits from smallholders, which account for 40 percent of the country's total annual production. "The trouble is we have a peak fruiting season, most of the mills are running at full capacity. My sympathies are with the smallholders," Peter Chin told an industry seminar. "I am looking at regulations to compel millers to buy these fruits." Chin later told reporters he had directed industry regulator the Malaysian Palm Oil Board to investigate millers who refused to buy palm fruits.

Oil Is Steady Near $55 as Global Slowdown Reduces Fuel Demand

Nov. 18 (Bloomberg) -- Crude oil was steady near $55 a barrel after Japan entered its first recession since 2001 and China's largest oil producer said demand dropped ``sharply.''
Oil closed at a 21-month low yesterday after the economy in Japan, the world's third-biggest oil-consuming country, contracted 0.4 percent in the third quarter. China National Petroleum Corp. said demand has fallen since September because of credit-market turmoil.

Gold Falls in N.Y. as Dollar Climbs; Platinum, Silver Decline

Nov. 17 (Bloomberg) -- Gold fell in New York as the dollar climbed, reducing the appeal of the precious metal as an alternative investment. Platinum and silver also declined.
The dollar gained against a weighted basket of six major currencies, extending a two-week rally. Precious meals often move in the opposite direction of the greenback. Gold fell 18 percent last month as the dollar rallied 7.8 percent.