Sunday 1 May 2011

April 29, 2011 Midday Financial Report

All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.

SILVER HOVERS NEAR RECORD US$50 CCTV News

Aluminium smelter US$1.6 billion in Sarawak.

Chinalco, GIIG to build aluminium smelter near Bintulu

Read more: Chinalco, GIIG to build aluminium smelter near Bintulu http://www.btimes.com.my/Current_News/BTIMES/articles/slaju/Article/#ixzz1L4qmoIHE

GULF International Investment Group Holdings Sdn Bhd (GIIG) has entered into a joint venture agreement with Aluminium Corporation of China (Chinalco) to build a US$1.6 billion (US$1 = RM2.97) aluminium smelting plant in Sarawak.

GIIG is headed jointly by Malaysian tycoon, Tan Sri Syed Mokhtar Al Bukhary and UAE-based businessman Mohamed Alabbar.

The signing in Kuala Lumpur was witnessed by visiting Chinese Prime Minister Wen Jiabao and Prime Minister Datuk Seri Najib Razak.

The joint-venture, called Smelter Asia Sdn Bhd, will develop, own and operate the private aluminium smelting plant with an annual capacity of 370,000 tonnes.

The smelter will be located in Samalaju Industrial Park, about 60km from Bintulu and some 180km from the Bakun hydroelectric dam.

Samalaju Industrial Park is earmarked by the Sarawak state government for heavy industries under the Sarawak Corridor of Renewable Energy (SCORE) master plan.

Smelter Asia has also signed the principal terms of the power purchase agreement (PPA) with Syarikat SESCO Berhad, the wholly owned subsidiary of Sarawak Energy Berhad, for over 600MW of power supply to the proposed aluminium smelting plant.

"The worldwide demand for aluminium is projected to grow by an average of four per cent over the next five years, with Asia driving the demand," Syed Mokhtar said in a press statement.

The modern aluminium plant is expetcted to contribute to Sarawak's the socio-economic growth, by creating new jobs and supporting industries.

"Smelter Asia is a powerful example of global collaborations to create a dynamic socio-economic growth engine for Malaysia.

"The plant will not only benefit the country but also support the Asean region's development thrust by providing aluminium, which is critical in driving the massive infrastructure projects that are being planned," Mohamed Alabbar said added.

Zhang Chengzhong, Chinalco's depty general manager said the Chinese group has been working closely with GIIG for the development of Smelter Asia Project over the past years.

Read more: Chinalco, GIIG to build aluminium smelter near Bintulu http://www.btimes.com.my/Current_News/BTIMES/articles/slaju/Article/#ixzz1L4qgBWmX

All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.

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iPad 2 across Asia

Thousands queue for iPad 2 across Asia

HONG KONG: The iPad 2 went on sale in many countries across Asia and beyond on Friday as Apple’s updated gadget enters a market that is becoming ever more crowded with tablet computers.

Apple’s original iPad defined the tablet computer market and was swiftly followed by offerings from the tech industry’s main players, from Samsung and Dell to BlackBerry maker RIM and Toshiba.

A late arrival to the tablet party was Sony, who only this week announced its own tablets a full year after the original iPad went on sale.

Now Apple is already fighting round two with a lighter, thinner version of their original gadget.

First in line in a queue of around 400 rain-soaked people outside an Apple store in Hong Kong was 16-year-old mainland Chinese student Dandy Weng, who travelled to the city from neighbouring Guangdong province for a device.

“I have waited for over 12 hours and haven’t slept in 48 hours — I’m very tired but excited,” he told AFP.

“I will be the first in China to have the iPad 2”, he said, waving a ticket to back up his claim of being first in line.

“I’m speechless, it’s so exciting,” he said after purchasing two tablets.

"I can’t say how happy I am right now.”

A long queue snaked around the Apple shop in a major downtown shopping centre with several groups of shoppers loading as many as a dozen iPads onto trolleys.

Shopping mall staff handed out raincoats to soaked Apple fans who had forgotten to bring an umbrella.

“The weather is really terrible, but it’s well worth it,” Nigel Law, a 19-year-old student, told AFP. “It has been a long time coming — a little rain is nothing.”

Those trying to buy an iPad 2 online via Apple’s Hong Kong site will have to wait a little longer — all versions of the gadget were already out of stock before midday.

And at an Apple authorised retail shop in Singapore, only 100 devices were available for sale.

“I like the iPad 2 because it is slimmer and nicer,” Dennis Seow, who queued up from 7:00 am, told AFP.

The new iPad also hit stores Friday in India, Israel, Macau, Malaysia, the Philippines, Singapore, South Africa, Turkey and the United Arab Emirates.

In South Korea, 100 invited customers lined up from midnight at the central Seoul branch of KT, a local partner for iPhones and iPads.

First in line was student Kim Jung-Yun, 22, who waited more than nine hours to get his hands on one.

Kim slowly unwrapped the box then held his white device at arm’s length to take a careful and admiring look.

“I didn’t know I would be the first one but it’s marvellous and I would like to keep it as a valuable memory,” Kim told AFP.

The iPad 2 was launched in Japan on Thursday after a month’s delay caused by the devastating quake and tsunami. A Wi-Fi only version of the iPad 2 will be available in China on May 6. It was first released in the United States on March 11.

The California gadget-maker sold 15 million iPads last year following the original device’s launch in April, generating $10 billion in revenue.- AFP

Read more: Thousands queue for iPad 2 across Asia http://www.btimes.com.my/Current_News/BTIMES/articles/20110430000054/Article/#ixzz1L4m8BuLp

All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.

Nasdaq, ICE - bid for NYSE

Saturday April 30, 2011

Nasdaq, ICE may go hostile in bid for NYSE

NEW YORK: Nasdaq OMX and IntercontinentalExchange (ICE) are poised to go hostile in their bid for NYSE Euronext after shareholders ratcheted up pressure on the Big Board parent to get a better deal.

Nasdaq OMX Group Inc and ICE were expected to soon take their US$11.1bil bid directly to NYSE's shareholders through a tender offer, two sources familiar with the situation said.

The move is seen as the next logical step for Nasdaq and ICE after being rebuffed twice by NYSE, which has refused to open talks on their offer. NYSE favours its existing US$10.1bil deal with Germany's Deutsche Boerse AG.

Nasdaq OMX Group’s offices in New York — EPA

A direct appeal to shareholders through a tender offer would ramp up the pressure that NYSE is already under, although they also have defences to keep Nasdaq and ICE at bay.

NYSE, for instance, can institute a poison pill, which would thwart the hostile bid by making it more difficult and expensive for the rivals to buy its shares.

In signs the Big Board is facing growing dissent over its strategy of just saying “no”, shareholders at its annual meeting on Thursday approved two proposals that the board had advised against, and directors who were up for election got fewer votes than before.

Investors at the packed meeting in New York urged NYSE management and board to start talks with Nasdaq and ICE, while also asking them to press Deutsche Boerse to sweeten its deal.

“This merger is grossly unfair to the shareholders,” said Kenneth Steiner, who owns about 1,000 NYSE Euronext shares. “I voted against the directors. I believe they should be removed and replaced with those who can get us the appropriate value for our shares.”

The NYSE board and managers who launched a charm offensive to woo shareholders stuck to their belief that the Deutsche Boerse deal was the better way to go.

Earlier on Thursday, NYSE CEO Duncan Niederauer said he would close the “perceived value gap” between the deals. The Nasdaq/ICE offer is about 10% higher than the Deutsche Boerse deal.

Niederauer, a fierce rival of Nasdaq's Robert Greifeld, promised that a combined NYSE-Deutsche Boerse would have much higher earnings, diverse revenues and would cut costs.

With shareholders pushing for a sweeter deal from the German exchange, Niederauer said, “We would hate to miss out on an accelerating opportunity because we just got a touch too greedy on the ratio.” - Reuters

METALS OUTLOOK - 29 April 2011

METALS OUTLOOK: Uptrend In Precious Metals Likely To Continue Next Week

29 April 2011, 02:49 p.m.
By Debbie Carlson
Of Kitco News
http://www.kitco.com/

(Kitco News) - The strong upward trend in gold and silver seen this week is likely to spill over into next week’s trade as the markets remain concerned about inflation.

Gold prices hit record highs and silver came close to reaching $50 an ounce in the nearby contract as a weaker dollar gave commodities across the board a boost.

June gold futures on the Comex division of the New York Mercantile Exchange settled at $1,556.40 an ounce, up 3.3% on the week, just under the week’s high of $1,560.40. July silver gained 5.2% on the week, settling at $48.599 an ounce. The high for the week was $49.845. Technical analysts said the markets posted strong weekly and monthly closes which bodes well for bulls.

“I’d say the precious metals, in the aftermath of the FOMC meeting and consequent Fed statement, will continue to worry about inflation in the U.S. There are questions if the U.S. central bank is behind the curve. That will likely put pressure on the dollar which will help out gold and silver,” said Bart Melek, vice president and director, head of commodity strategy, rates and foreign exchange research at TD Securities.

Earlier this week at the Federal Reserve’s monetary policy-setting meeting, interest rates were left unchanged and it was announced that the second round of quantitative easing will end in June. Following the meeting, Federal Reserve Chairman Ben Bernanke fielded questions from the press – the first time this has happened post-meeting. His answers did little to change the market’s view that the Fed is allowing inflation to rise. For his part, Bernanke said he believes the rise in food and energy costs are transitory.

That in turn, has put more pressure on the dollar. A weaker greenback makes commodities like precious metals cheaper to buy in other currencies. That said, there is little faith in non-dollar currencies as a whole, which has been a support for precious metals.

“There’s not much to stop (the precious metals rally). Really it’s about the dollar and it has been. When we see a rebound (in the dollar) is when we’ll see the metals correct as well. That doesn’t signal the end of the trend,” said Frank Lesh, broker and futures analyst with FuturePath Trading.

Of the precious metals, silver has been the leader in the rally, with gold following. Silver has been rising at breakneck speed and a sharp correction is bound occur, but when that happens is anyone’s guess. Silver prices nearly rose to $50 earlier this week before seeing a retreat, but continued to rise after the initial break.

Lesh said while the dollar continues to fall, he noted the rate of change is lessening, suggesting it is getting oversold. “It’s getting crowded on the short side,” he said.

The dollar is due for a bounce, but the downward trend won’t change. Likewise, metals are getting a bit rich. “We’re getting overbought in the metals, but that doesn’t mean you don’t want to buy the dips,” he said.

Lesh said near-term resistance for June gold is in the $1,560s. Support for gold is seen at $1,523, then $1,516 and $1,503, last week’s closing level. “We could fall back $20-$30 quickly on profit-taking, but I don’t see it going below $1,490s for the near-term. Of course there’s always the unforeseen,” he said.

Silver is harder to peg because of the extreme volatility. The $50 area remains an upside target, with $55 a second target. Support is seen at $45, then $40. Those are wide levels for the gray metal, but he said with how violent silver has traded, it’s very difficult to pinpoint chart areas. “A lot of the little accounts are getting chewed up in this trade….There’s nothing up here but air,” Lesh said.

Friday was first notice-day for May futures, he said so there’s been some selling of the May contract and buying of July and deferreds as traders roll long positions forward. That will likely continue into next week.

Next week brings the U.S. monthly unemployment report, which can impact the market’s direction. The April report is expected to show a rise of 216,000 jobs, with the unemployment rate holding at 8.8%, according to an analysis by MarketWatch.

Depending on how the data come out, it could affect metals if it gives the dollar boost. A strong figure would be a sign the economy is growing.

By Debbie Carlson of Kitco News dcarlson@kitco.com

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