(TheEdgeMalaysia)KUALA LUMPUR: Crude palm oil (CPO) futures fell below the key RM2,000 level at midday on July 8, dragging plantation stocks lower, while investors’ sentiment was already bearish due to declines in key regional markets.
At 12.30pm, the KLCI fell 5.96 points to 1,060.4. Turnover was 314.19 million shares valued at RM528.52 million. Losers hammered gainers 356 to 85 while 167 counters were unchanged.
A firmer US dollar affected commodities, according to news reports. CPO futures fell RM79 to RM1,993, the lowest since March 31 while spot gold fell US$1.63 to US$923.05. Light crude oil fell 75 cents to US$62.18.
http://www.theedgemalaysia.com/business-news/18182-cpo-falls-below-rm2000.html
The commodity traders' sentiments are somewhat affected by this news:
CFTC Is Going After The Speculators
By Jay Yarow
July 07, 2009: 06:54 AM ET
(alleyinsider.com) -- The CFTC wants to change standard operating procedure to crack down on any excessive speculation in the oil market.
The plan is to set trading limits on oil, natural gas and other commodities of a "finite supply" the Wall Street Journal reports.
In the next two months the CFTC will hold a series of hearings to figure out the best way to use its authority to stop manipulation of the commodity markets.
The CFTC is likely nervous about the crazy volatility in energy prices. Last year's oil spike is still seen as a freaky occurence, with the blame laid at the feet of speculators. This year's doubling of oil prices, despite the fact that demand is low and supply is high, has many people worried that the market is being manipulated all over again.
http://money.cnn.com/news/newsfeeds/siliconalley/green-tech/cftc_is_going_after_the_speculators_2009_7.html
Not to mention we are going into summer -- light trading activities plus recent jobless data makes them nervous.
Dear readers - I say watch and not buy. One of the very common mistakes of retail investors is jumping into buying stocks the moment they see bad news thinking of taking a contrarian stance.
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