Danger Diabolic

Some blue chips are edging skyward in the morning. That may explain the minuscule up-tick on the CI this morning. There is some buying of second board counters by retailers perhaps from the pull of the competitive PER of good second boarders.

To the layman,the market looks like it is fully valued. There are some retailers scrapping the barrel like dulang washers; re-looking at counters that may be re-rated because these have turned around like AMDB;are targets of takeovers like Equine or under potential new shareholders like Welli-Multi Corporation.

Trading will continue to be on a two-tiered format. Market will be good if retailers can come in now to broaden the market. With a positive economic outlook for the next 12 months, fund managers will buy more into Bursa for the long-haul. As long as there are no unforeseen turbulence in world markets particularly from Wall Street and the Chinese markets; the local market should amble along happily. The expected strengthening of the ringgit should bring in the foreign funds.

As the index goes higher,with overpriced blue chips, we will only be courting danger if we take position and do not have an exit strategy. Danger Diabolik... that is the Bursa for you... Getting your fingersburnt is easier with each new record set by Bursa!

Let us look at the stocks this morning.

CI went down 6 points to 1,371.16 on a turnover of 863 million shares. Losers thumped gainers 560 to 287. Losers include the big boys Bursa, DIGI, Equine and Transmil which dropped further by 44 sen to RM4.32. Poor chaps. No high fliers these, they are now doing the limbo rock---how low can you go? Broader market---boring!!

KPS is free-falling;dropping to RM1.73 for a three sen loss;JAKS lost its jacking power and went down 1.5 sen. Meanwhile, Metronic is better by 2 sen to 40.5 on a volume of 2.8 million shares. Elsewhere, Genting and BJ Toto are at its overnight level of RM8.05 and RM5.40 respectively. RCE dropped 3 sen to RM1.01 and Resorts lost 4 sen. AMDB was 2 sen down at 43 sen on a turnover of 16 million shares. Welli was 3 sen off to RM1.52.

By the looks of it, a no fun market. Hope things will turn for the better in the afternoon.

Heartsong