GMG CHIONG tomoro

For those interested in reading on GMG:
www.sharesinv.com/articles/2010/12/10/gm...the-expansion-path/#

GMG may be the next to chiong after gallant.
Below is my TA analysis but as they say, the mkt is like a ball and the ball is round, can go any direction depending on mkt sentiments and any sudden bad news (if any):
All the ma trending up, bolllinger constricting, long consolidation, all the indicators like MFI, momentum, ROC, RSI, stoch, wiliams %R trending up, MACD crossover and turning up, but nothing is 100%, so buy at your own risk and set your stop-loss.

Rubber surge : Demand soars for major Asian grades
www.commodityonline.com/news/Rubber-surg...rades-34368-3-1.html

I hit bulleyes again, 1st gallant... now GMG turn to chiong arh...

Hope my next bulleyes to be Sound Global and YZJ....

Good news for commodities, eg rubber, oil, etc

From Bloomberg:

Stocks, Commodities Gain as China Refrains From Rate Increase

By Stephen Voss


Dec. 13 (Bloomberg) -- Stocks in Europe rallied for a sixth day while copper and rubber jumped to records after China refrained from raising interest rates. U.S. Treasuries dropped and stock futures were little changed.

The Stoxx Europe 600 Index advanced 0.4 percent at 10:03 a.m. in London for its longest stretch of gains since July. Futures on the Standard & Poor’s 500 Index rose less than 0.1 percent. Russia’s RTS Index gained 1.1 percent to the highest level on a closing basis since August 2008 while the yen fell against 15 of its 16 most-traded peers. The S&P GSCI index of 24 commodities climbed 0.9 percent, and oil added 0.8 percent after OPEC kept output targets unchanged at a weekend meeting.

China on Dec. 10 ordered banks to set aside larger reserves and didn’t announce an interest-rate increase, even as data released the following day showed the inflation rate reached 5.1 percent last month. As Federal Reserve policy makers meet tomorrow, a U.S. Commerce Department report is likely to show retail sales climbed for a fifth straight month in November.

“We are seeing a bit of a relief rally on the back of the fact that China decided not to raise interest rates over the weekend,” said Richard Hunter, London-based head of U.K. equities at Hargreaves Lansdown Plc. “Those interest rate rises are nonetheless expected at some point.”

The Stoxx 600 rose to the highest level since September, 2008 as more than four companies gained for every one that fell. The index has advanced 9.2 percent in 2010. Kazakhmys Plc and Fresnillo Plc paced a rally in mining shares, rising more than 2 percent.

Wellstream Jumps

Wellstream Holdings Plc jumped 5 percent as General Electric Co. agreed to buy the oilfield-services provider for about 800 million pounds ($1.3 billion). Rhodia SA jumped 4.2 percent after Credit Suisse Group AG recommended the chemicals company. The MSCI Asia Pacific Index climbed 0.5 percent to its highest level in more than a month.

U.S. futures were little changed after the S&P 500 rose for four straight days to its highest level since the week of Lehman Brothers Holdings Inc.’s bankruptcy in 2008. Fed policy makers, due to hold their final meeting of 2010 on Dec. 14, may reiterate the strategy to buy an additional $600 billion of Treasuries through June to try to trim joblessness and avert deflation, or an extended drop in prices.

China Index Rises

China’s Shanghai Composite Index advanced 2.9 percent, the biggest gain in eight weeks. The government is likely to set a target of at least 7 trillion yuan ($1.1 trillion) of new loans for 2011, said two people briefed on the matter. Economists at UBS AG and Bank of America Corp. had forecast a new-loan quota of 6.5 trillion yuan to 7 trillion yuan. The MSCI Emerging Markets Index advanced 0.4 percent, led by energy stocks including PetroChina Co. and Moscow-based OAO Gazprom.

Copper climbed as much as 1.7 percent to a record $9,145 a metric ton and rubber futures jumped as much as 3.8 percent to an all-time high of 396.4 yen ($4.70) a kilogram (2.2 pounds). Crude oil added 67 cents to $88.46 a barrel, and is up 11 percent this year. Silver gained 1.9 percent to $29.215 an ounce. The Organization of Petroleum Exporting Countries kept the production ceiling for 11 of its members at 24.845 million barrels a day.

The yen weakened 0.4 percent to 84.3 per dollar and 111.44 per euro. The Dollar Index climbed 0.2 percent to 80.199, gaining for a sixth-straight day, the longest streak of gains since June. The euro slid 0.1 percent to $1.3216.

U.S. 10-year Treasury yields jumped six basis points to 3.39 percent, the highest since June. The German bund yield was two basis points higher at 2.98 percent. Spanish 10-year bonds fell for a sixth straight day, pushing the yield up five basis points to 5.48 percent.

The Markit iTraxx Financial Index of credit-default swaps insuring the senior debt of 25 European banks and insurers rose 6 basis points to 172, the highest level in three months, according to JPMorgan Chase & Co.

To contact the reporter on this story: Stephen Voss in London at sev@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

Last Updated: December 13, 2010 05:23 EST

Dec 13:

Rubber Climbs to Record in Tokyo as Supply Shortage May Deepen on China

Rubber rose to a record as rain cut output, worsening a supply shortage as demand for the commodity used in tires expands, led by rising car sales in China and India. The cash price in Thailand also reached a record.

May-delivery rubber on the Tokyo Commodity Exchange climbed as much as 3.8 percent to an all-time-high of 396.4 yen per kilogram (4,712 a metric ton), exceeding the previous record of 388.9 yen reached on Feb. 13, 1980, before settling at 395.5 yen. The contract has gained 43 percent this year.

Futures advanced after China’s central bank refrained from increasing interest rates and government reports showed China’s economy is gaining momentum, boosting speculation that demand from the largest user will keep expanding. China’s industrial- output growth accelerated to 13.3 percent last month from a year earlier, surpassing economists’ median estimate of 13 percent.

“The figures from China showed economic growth accelerated, regardless of government measures to cool expansion,” Takaki Shigemoto, an analyst at research company JSC Corp. in Tokyo, said by phone today. “The data, together with a lack of a rate increase by China, created a bullish mood among investors, leading to a rally in equities and commodities markets.”

May-delivery rubber in Shanghai rose as much as 4.5 percent to close at a daily limit of 35,320 yuan ($5,302) a ton. The contract reached a record 38,920 yuan Nov. 11.

The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, gained as much as 2.9 percent to 2,923.77. China’s central bank ordered banks to set aside more reserves instead of increasing borrowing costs as had been speculated by investors over the weekend.

‘Positive News’

The central bank’s lack of action “is fairly positive news,” He Zhen, who helps manage $301 million as general manager at Shanghai Huili Asset Management. “The central bank will be very cautious about raising interest rates.”

China’s increase in reserve requirements for banks reduced the chances of an increase in interest rates before the end of this year to less than 50 percent, Credit Suisse Group AG said.

The brokerage reiterated its prediction that China will raise interest rates by more than 200 basis points by the end of 2011, according to the report by analyst Dong Tao.

Cash rubber in Thailand surged to a record 138.55 baht per kilogram, boosted by a supply shortage and the Tokyo rally, according to the Rubber Research Institute of Thailand.

The price will likely extend gains as latex output in the country starts a seasonal decline as early as next month, said Hisaaki Tasaka, an analyst at Tokyo-based broker ACE Koeki Co.

China, India

“Rain persists in southern Thailand, causing a lack of supply,” Varut Rungkhum, analyst at commodity broker Agro Wealth Ltd. said by phone from Bangkok.

The weaker yen was also supportive of rubber, Sureerat Kunthongjun, an analyst at Agrow Enterprise Ltd., said by phone from Bangkok. The dollar was at 84.19 yen from 83.95 yen Friday.

A natural-rubber shortage in India, the world’s biggest consumer after China, may deepen almost five times over the next decade as rising incomes boost demand for tires.

The deficit may widen to 840,000 tons in 2020 from 175,000 tons next year, according to Vinod Simon, president of the All India Rubber Industries Association. In 2015, the shortfall may be 687,000 tons, Simon said.

China’s sales of passenger cars including multipurpose and sport-utility vehicles increased 29.3 percent to 1.34 million last month, higher than the previous record of 1.32 million in January, according to the China Association of Automobile Manufacturers. The pace of growth was the fastest since April.

Source: Bloomberg