Dull, Dull, Dull

Three little words as above will likely sum up the mood of the market today.

After a slightly better opening, it started slumping almost within the first half hour. CI went down 2 points and all counters started looking for the Antartic. By the end of the fist hour only tracked stocks, BJ Toto and RCE put on some gains. BJ Toto added 2 sen to RM4.82 and RCE added a sen to 89 sen. The rest were either overnight or experiencing marginal losses.

After the announcement of Goldman Sachs additional investment in SAAG, the stock added 35 sen. Deleum added 25 sen and Proton; upped 20 sen after news of a positive meeting with VW. Another follow-up meeting in Bangkok to look further into strategic alliance has been proposed.

The strange biggest loser continues to be AHB which went down further by another 42 sen. It lost over a ringgit yesterday. Wonder how it will impact RCE which has about 8% of the stock. IOI Corp dropped 10 sen and so did Bursa.

Market ended down 7.5 points to 1,353.03. As predicted most counters were at overnight levels or suffered marginal losses.

I expect the market to go a yoyo for the next few days. There will be intra-day highs and lows and a couple of random walk counters.

Generally, more money is leaving Malaysian shores as mutual funds destined for overseas market like those managed by ING, CIMB and PBB mopped up liquid fixed deposits that are moving out to take advantage of recently launched protected funds. Local mutuals will suffer and so will second-level blue chips. So our local Bursa will possibly be driven only by local gilt-edged blues. That will possibly see Genting and Resorts back in the lime-light after sometime.

Pray hard this privatisation trend will end soon as it is really making the market shallower and depriving it such darlings like MAXIS, Magnum 4D and the like. Otherwise Bursa can surely go down!

Heartsong