A Pyrrhic Victory for Bursa

Investors were muttering. Where did the market go?

Just when it was safe to enter the water, then a deluge of profit taking took place. Most who bought in the morning session felt really betrayed. They had bought o n the high side.Anyway that is how the cookie crumbles.

Market ended in victory, grabbing back 21.3 points to put the CI back to 1373.71. Bursa may be happy but not investors. It was a Pyrrhic victory to have Bursa back but there was no happiness for the soul. Volume was good at 2.12 billion shares traded with value of RM2.25 billion. There were 541 gainers and 394 losers. Top of the crop was RHBCap which bounced up by 65 sen followed by VADS also at 65 sen and finally by DIGI at a 50 sen gain. Losers were TSR Cap losing 27 sen, Kossan dropping 25 sen and Engtex which leaked off 15 sen.

And now to look at the portfolio.

Most of the stocks were traded a couple of shades down. Buying were mostly retail with a dollop or two of big blocks.

BJ Toto added 14 sen to top the portfolio counters. It ended at RM498 on a volume of 2 million shares. Mid size blocks of 300 lots were seen with an occasional 800 lots thrown in between small trading units. Very steadfast counter.

Resorts World proved resilient though it ended with a lower gain of 6 sen. Some 15.7 million shares exchanged hands. There were 2 blocks of 10000 lots and 2 lots between 8000-9000 lots. Should move up steadily when confidence returns.

RCE Capital added a sen to RM1.04 on a volume of 3.4 million shares.A few big blocks done. One block was for 4000 lots. It is firming up for a run soon.

Metronic-Global was like the ALAMO. It failed to protect the fort and so the price went down to 22.5 sen down half a sen. Volume was half a million and until interest returns, it will trade listlessly.

JAKS was the golden boy until profit takers put him back into the box in the afternoon session. It closed at one ringgit, losing 3 sen on a huge volume of 51 million shares. Most big blocks were done in the morning session with one large block in the afternoon session .Mostly retail trade until the close.

Welli-has turned into a frog princess falling 2 sen again to RM1.24. Some medium size blocks noted. Could portend something is amiss.

Let us see how Dow perform tonight so that we can have a more soulful trading day tomorrow.

Heartsong

Still Weak to Sprint

As expected, they all jumped in this morning when Dow went positive on 93 points. After the morning rush hour, the prices started dropping off.

The smart ones were those who went into the market during rush hour traffic last Friday morning and yesterday morning. They were the smarty birds which got the goody worms. Any technical rebound on counters which went down real low, has been achieved by 9.30 am. The only exceptions are situational counters. The overspill from yesterday's buying of water-related stocks pushed these counters way,way up. But it was unsustainable. By 12.30 they fell by the wayside, some below yesterday's prices.

Market rose 15 points to 1367.38. Gainers were ahead of losers 521 to 340. Digi lead the gainers with a 90 sen gain; followed by VADS with a 70 sen advance, IOIPROP and KKB. Losers lost marginal. Lion Diversified lost 15 sen, TSR Capital; 15 sen and LPF 12 sen.

Portfolio stocks. I have tracked their volume profile and these are my findings.

Welli-Multi Corporation-amidst the small buyers and sellers, the collectors are back, picking lots of 50 to 100 lot sizes. Largest transaction was 200 lots. The average size is 50-100 lots. I smell a rat and believe a big behemoth is about to arise. So watch out for this counter. At noon close, it lost 2 sen to RM1.26 on a volume of 374,200 shares.

BJ Toto-as expected it just swam easily back to RM5.00. In a short time it will be back to RM5.50 level. Just you watch. Volume was 1.3 million shares.

Metronic could not hold back the tide and so it went down by 0.05 sen to 22.5 sen. No panic selling or manic buying, though . Small volume of 516,000 shares done.

Resorts World-resilient; good support at RM4.18. Huge lot sizes ranging from 500-1000 lots. A couple of 3000 lots done as well. Volume traded is 5.7 million shares.

RCE Capital added a sen to RM1.04 on a volume of 3.4 million shares. Firm collection going on. Big lot sizes from 500 to 4,000 lots.

JAKS started well to RM1.13 but fell back on profit taking to close up only two sen to RM1.05. Good price level to stay put while consolidation continues. Third highest volume leader. Morning blocks were humongous,ranging from 500 to 5000 lots. Good to stay here for a while for weak holders to unload.

Heartsong

JAKS-Some more?

I thought I would post this excerpt from CIMB on JAKS.

The privatisation of Selangor’s water supply services in 2005 has raised the question of whether the HoA will eventually translate into the award of a formal contract. The bigger water boys like Gamuda and Taliworks (TALIWRK) could see some action given their past dealings with KPS. Jaks Resources (JAKS) is also expected to participate in Langat 2 through an expected 30% share of the construction works and possibly even a stake in the water treatment concession. – CIMB

Hope it is true because then JAKS will be hot-wired to move up today like the mother ship, KPS.

Heartsong

Bursa is Coming Back!

Like the Terminator series, "I am coming back" is also the catch words for Bursa as it readies itself for the return to greener days ahead. We all hope that the sub-prime will be better managed by the US klutzes! Shame on them!!

It was a better market all round today. Loses were minimal and gains on situational counter were humungous! Don't believe me, ask KPS. It romped home with a 60 sen gain.Ask Engtex, it romped home too with a 45 sen gain. Ask Puncak, it romped home with a 44 sen gain.

The mood was good today, there was more confidence in the air as buyers return to the market,swarming most of the water-play counters.The NCER launch has brought some smiles to punters and investors. CI only lost 2.97 points to 1352.41 and there were 563 gainers compared to 358 losers. Volume of shares traded was 1.9 billion valued at 2.8 billion ringgits. Strangely, with the launch of NCER,counters such as Sime Darby, Golen Hope, Gamuda and Muhibbah fell.

Portfolio watch:

JAKS was the star performer, gaining 20.5 sen to RM1.03 on a volume of 57 million shares traded, a historical volume if ever. It has more upside to go.

Metronic was protective of its turf from Friday, staving off sellers and absorbing them all day. Metronic added 0.5 sen to close at 23 sen. Looks like Metronic is supported at 22.5 sen. So buy it if it should go below that price for whatever reason the market fell in the future.

Resorts World showed complete control and strength. It closed unchanged at RM4.10. Volume was heavy at 203 million shares.Analysing its market behaviour since Friday, I must say Resorts will plough back all the gains up to RM4.60 in no time. Watch this counter go when the weather changes for the better.

RCE is one good counter to have in any portfolio of worth. Fundamentally strong, it is a shoo-in for for at least a 30% price rise. When it goes, it goes, especially if GE is contemplating buying into it. Anyway, there is always a possibility that Goldman Sachs is collecting on the quiet. It closed unchanged today at RM1.03 on a volume of 41 million shares.

BJ Sports Toto; a titan in its own right. The super dividend paying king of Bursa, expect it to slowly swim back to to the RM5.60 mark. It lost 2 sen to RM4.84 on a volume of 25 million shares.

Welli-Multi Corporation -enigma you are. I actually expect star performance from you today but you scooted off and lost a sen to RM1.28, on a volume of 11 million shares. Good volume though; and may be a signal that another juggernaut will move shortly.

Taliworks was buoyed by the waterplay. It added 25 sen pushing its price to RM2.40. Expect it to have a meaty package of Langat II.

So there you have it, folks.Until tomorrow, its tata!

Heartsong

JAKS ROMPS HOME

Just when you thought you would have to wait until the cows come home, what do you know-Jack jumps out from the box.

With the mother ship KPS chugging along like a juggernaut, JAKS wouldn't be far off. And so it came to pass. After moving in a tight band between 88 sen and 91 sen, and just before Quasimodo went into the belfry to ring the ending bell for trading to halt, the syndicates came in. They pushed JAKS up 20.5 sen to end at RM1.03.

JAKS is a stock with resilience. It will move on its own as it builds its strength. And that will take time as transformational change is organic. The PSWTP is just one good bonus and JAKS was there to play ball.

Now that it is quite clear that the Langat II project will be implemented simultaneously with the tunnel package, let us see how JAKS will perform tomorrow particularly when JAKS has a good working relationship with KDEB, the parent company of KPS.

Viva JAKS!

Heartsong

Landslides and Quicksand

Bursa is as elusive as the girl above. One day sunny and full of hope. The next blow me down typhoon Dow, landslides and quicksand. The stock market is definitely not for those with weak hearts and feeble minds. But then the world is not made up of only the brave and the stout-hearted. We have the clods and the gormless. It adds colour and we have sometimes to pick up the pieces because of their silly antics. I am talking of those idiots operating the sub-prime mortgages.

In spite of the sell-down in New York on Friday last, Bursa performed not too badly. By noon close, fears started dissipating and buyers gained confidence to come in to shore up prices. CI was down 5.2 points to 1350.22, still above the psychological level of 1350. Losers outnumbered gainers 550 to 282. Trading volume was good approaching the billion mark (975 million shares)with a value of 1.9 billion ringgits.

The giant gainer was KPS; still running on high octane overdrive excitement,even though its only the tunnel package that is out for international pre-tender. It should subside to a level for the next game (possibly in three month's time). So expect the share price is slide on attrition selling in a day or two unless there are super news to be announced. I expect it to lose at about 25 to 30 sen. Other gainers include Green Packet, Tanjong and Shell. Losers aplenty saw Bursa down 40 sen, MMCCorp and Gamuda.

Looking at our portfolio of shares and the trading trends, I see the following:

JAKS, one hottie of a stock, riding on the KPS wave. It added 6 sen to 88.5 sen on a volume of 18 million shares. JAKS touched an intra-day of 90 sen. Heavy buying with huge blocks changing hands before the 11 o' clock witching hour. Subsequent trading were mostly retail action. I expect it to solidify at this level with a good possibility of it going beyond 90 sen this afternoon or tomorrow morning. Get ready to sell it it passes the ringgit mark.

RCE Capital, second highest turnover stock of the morning trading session (201 million shares). Went down a sen to RM1.02. I have a strange gut feeling that it will be ramped up this afternoon or tomorrow.

Genting-trading around the RM7.90 to RM8.00 level. Good support all morning. 15 million shares raded. Possibly Treasury buy-ins for just such an occasion. Resorts World ended 2 sen down at RM4.08. Volume at 8.4 million shares. Support level price, I suppose. BJ Toto, down by 2 sen too to RM4.84. Good stock . Why me, worry? (Alfred Neuman).

These stocks are causing some concerns. Metronic-Global. Obvious support at 22.5 sen even though a few loose ones got bought in at 22 sen. Welli-the push did not materialised with the launch of the NCER. We still have got one more day to go. So, not to fret.

Let us look forward to better things in the afternoon session.

Heartsong

Hot Pursuit

Look at the market. It lost 10 points on opening bell and is now fast recovering. So NCER can make a difference. Yah?

Look at the water-play in action. KPS is like a juggernaut, cannot be stopped. Moved up another 29 sen. Wah.... like that one.

Many friends called up to say they sold too early when it went beyond RM2. My advice-be contented; let others make some money.

Meanwhile look at JAKS. The big block of shares done at 86-89 sen is one big fat indicator that JAKS is going places.

Pun some if you want.

Meanwhile, look at this beautiful picture of our sun up close. Like the stocks, have an exit strategy and don't get burn.

Heartsong

WELLI-MULTI CORPORATION-OPTIMUS PRIME

In April 2007, a group of politically connected corporate leaders took over a small second board company, Four Seasons. Their intention-to bring to fruition the vision of PM Abdullah that Malaysia will be the international Halal Hub for the OIC. A kind of national service to Malaysia.

So they hi-tailed Dr Rashid Tang Abdulah back from their Hadhari cattle operations in Inner Mongolia to helm Welli-Multi Coporation (WMC). The next corporate move-Hadhari Cattle Industry buys 19 % of WMC at RM1.50.

WMC then move into high gear.

First stop: to set up the biggest halal gelatin plant in the world in Malaysia. There is currently no significant 100% halal gelatin producer in the world.

And why gelatin?

Gelatine is used in pharmaceuticals, foods, photography and many industrial applications. For religious and hygiene reasons, the demand for halal gelatine is expected to be in high demand especially in Islamic countries (OIC). Venturing into this project is therefore in line with the Malaysian government's initiative to be the world's Halal Hub Centre. The world market for gelatine is estimated at 315,000MT valued at over USD 2 billion.

WMC then engaged, Imtech Drygenic, a Dutch firm to design a gelatine plant to produce 5,000 metric tonnes of gelatine per annum. The plant to be located in Kedah, will commence operations in mid-2008. Hadhari Cattle Industry Malaysia will supply the cattle bone for making the halal gelatine.

Next, it commissioned Erawat Engineering, an Indian company, to supply WMC with halal gelatin capsule making equipment at its present plant in Prai Industrial Estate. The equipment will be able to produce 5bil capsules a year.Production is scheduled to begin in early 2008.

Second Stop: A Foray into Inner Mongolia

On 8th July 2007, WMC signed an agreement with the Inner Mongolian Government on to cooperate in energy, mining,metals, roads and sundry developments. It is now negotiating to buy over at least 30 % of Chi Feng Dasi Basic Industry, currently traded on Shenzhen. Dasi's main involvement are in mining and metals (silver and gold) as well as in tolled road developments in Inner Mongolia. Its revenue is RM1 billion yearly.

My reading:

WMC and Hadhari Cattle Industry (HCI) are synonymous. In time, HDI will reverse take-over WMC. When CEO Rashid talks, he talks on behalf of both WMC and HCI.

Tomorrow, PM Abdullah will unveil the NCER masterplan. Most of the projects to be announced are already speculated and only the finer details matter. To those in the know, close to the heart of the Premier is his pet Halal Hub Project and in the pilot seat is WMC.

The Stock:

WMC is ready To Move Up. The weather outside ocassioned by typhoon Dow Jones is not conducive.

Like a yoyo, it went up and down from April to June. Prices went down on attrition buying in July. It stands currently at RM 1.29.

WMC prices were capped from going up chiefly because of SC’s sanction on the release of its quarterly report. Apparently they were worried at the huge amount of receivables.CEO Rashid however gave an assurance that this was manageable and will be collected by March 2008. Legal action will be taken as warranted.

Most investors bought at the RM1.45-RM1.70 level. Only weak holders have thrown their shares. The parties who bought huge chunks are keeping it under wraps. They are waiting for a price resurrection. That time is near.

My Take:

Crystal gazing, barring unforeseen market conditions, WMC stock prices should move up if and when:

• PM's unveiling of the NCER on 30 and 31 July 2007
• The Annual Report and quarterly reports are vetted and approved by SC-very soon I hope
• WMC buys the Dutch gelatin production technology and machinery
• WMC buys the halal capsule producing machines from India
• Confirmation of stake and price in Chi Feng Dadi Basic Industry Co. Ltd.
• Potential buy of WMC shares by by Siping Lishan Machinery Manufacturing Company of China at an agreed price higher than RM1.50 per share
• Potential buy of WMC shares by a GLC(possibly Synergy Drive)
• Potential buy by a Kedah State Investment agency
• Purchase of shares by a politically connected bumiputra entrepreneur (either from Penang or Kedah)
• Purchase of shares by an international investor form the Middle-east (possibly Kuwait Finance Corporation)
• Reverse take-over of WMC by Hadhari Livestock Corporation and friendly parties

Believe me, all the above, if it does materialises, will be event-managed.

So, if you are game, do some homework and take a position on WMC.

Heartsong

A NEW JAKS BECKONS

JAKS has been baptised by fire. It was betrayed by a well connected political Judas.

It was a deep wound, close to JAKs's heart. Now, it will no longer depend on political patronage alone to get projects in Selangor after the PUAS-SPLASH privatisation fiasco. The potential 30 years contract supplying pipes to water-works in Selangor was largely ignored by Puncak Niaga that JAKS had to bring a legal case against SYABAS, Punca Niaga and the Government of Selangor. The case is still pending in the courts.

That was the wake-up call. From that singular incident of bad faith, JAKS smartened up and started to rely on itself. The days of Dato'Jamian Mohammed who lent his J to the word JAKS is now gone when he resigned. The founder, Ang Ken Seng (AKS) though, is still represented in JAKS by his two children. With new Chairman Zulkipli Abdul at the helm, a new chapter has opened up for JAKS.

To avoid the vagaries of the steel industry and the thin trading margins, JAKS has moved on. On its own it has made forays into Malacca and Kedah. In Kedah, it has nailed down a joint venture with Bina Darulaman Berhad to secure pipes and fittings for various water-works in the state. If the joint-venture materialises,a consortium company will be set up to supply pipes and fittings to Kedah for 10 years and the state will have the option to secure supplies from the consortium for another 10 year.

As not to be reliant only on pipes for the water industry alone, JAKS bought over Empire Deluxe. With this deft move, it opened itself to supplying the world's oil and gas industry. Empire Deluxe has a manufacturing plant that produces carbon steel butt-welded pipe fittings used in construction engineering and in the oil and gas related industry. All the output are fully exported to North America and Canada.

The additional revenue from Empire Deluxe will impact positively on JAK's bottom line beginning April 2007.

JAKS's financial profile is getting better. The results for the last six months from November 2006 to April 2007 was impressive. From a loss of RM4 million for the same period in 2006, JAKS made a net profit of RM5.1 million. Turnover increased 17% from RM62 million to RM70.7 million attributed to better market sentiments. This portends well for JAKS for the next 6 months.

As most of the water projects will be tendered out during the remaining months of 2007, a majority of pipe manufacturers will stand a good chance to get some parcels of them. Pipe manufacturers like JAKS will also benefit from the new properties to be developed in most of the growth areas like IDR, NCER and the like.

As the market is currently very weak, it is the best time to accumulate JAK shares. Best to buy below 80 sen.

Heartsong

A Possible Way out...............

Dow has gone kaput. Lost 500 points in two days. Sub-prime mortgage rears its ugly head again. US interest rate is speculated to move upwards. Funds are moving into bonds. A swath of red ink has hit Asian markets. Investors are running for cover from Shenzhen to Seoul.

Question in our already confused and worried mind. Apa macam?

Analysts say that Monday's possible downside will be capped because of the good news emanating from NCER.

The best thing to do is to watch the market and the counters you are thinking of buying in. forget about those stocks that you have bought even though they have gone down to the seabed. Forget about the dollar averaging game. Buy because you want to come in some more. Because you have faith in that counter.

Let us look at the portfolio for possible buy ins.

Genting: Buy if if goes below RM7.50
Genting CD: Buy if it is 1 sen
Resorts World: Buy if it is RM3.50 and below
BJ Sports Toto: Buy if it is RM4.20 and below
JAKS: Buy if it is 0.71 sen and below
RCE Capital: Buy if it is 0.78 sen and below
Metronic Global: But if it is 18 sen and below
Taliworks: Buy if it is below RM1.75
Welli-Multi Corporation: buy if below RM1.00

Sell and take profit on all that you have bought if the market bounces back.

Heartsong

JAKS Should Follow Suit.........

Now that the mother-ship KPS has bounced up by 23 sen to RM2.09 on such a bad market day, what do you think will happen to JAKS, the lady-in-waiting?

Let us do a brief recap of JAKS. There was only three times that it touched or break the 90 sen level. On 24th April, it shot to an intra-day high of 91.5 sen. On 23rd April, it moved higher intra-day to 94.5 sen. Then on 26 July, with a poor market in tow, it turned in a solid performance to touch 90 sen again.

We all know JAKS in a favourite syndicate play counter. But we won't touch that, so says MC Hammer.

Let us revisit the strengths of JAKS.

• JAKS is the only pipe manufacturer in Malaysia that has the inbuilt capability to manufacture big diameter pipes. They have built 2 inch diameter pipe and technically, they do not have any problem tweaking the machine to produce 3 inch diameter pipes if there is demand for it. The Pahang-Selangor Water Transfer Project would require such big diameter pipes. One up for JAKS.

• JAKS's purchase of Empire Deluxe Sdn. Bhd would add to the range of products it can now offer. Through this company, JAKS will supply seamless steel pipe fittings to the oil and gas industry in USA and Canada.

• JAKS is also an experienced sub-contractor for water-works projects. The SPLASH reservoir in Selangor was constructed by JAKS and it supplied and laid all the pipes too. It has now put up similar proposals to be involved in managing water resources to the Melaka and Kedah water authorities. A response is awaited.

• All states have to do pipe replacement projects in the 9MP which allocated RM16 billion ringgit to this alone. JAKS is poised to get some of the parcels along with the other Malaysian pipe manufacturers.

• There is a legal suit between JAKS and the Selangor State government as a result of the privatisation of waterworks to Puncak Niaga. Here, JAKS wants its fair share of pipe supplies to the state's projects. This civil suit could be a bargaining block for JAKS to obtain piping contacts from Selangor if it drop the suit in deference to new project offers.

• JAKS is the cheapest pipe-play stock on the Bursa compared to Hiap Teck (RM2.21), YL!(RM3.20),Choo Bee (RM2.40) and Engtex(RM1.77)
  

Today, most counter were forced to retreat and JAKS is no exception. The Dow has done serious damage to Asian markets. It is still trading in the red today (Friday US time) and might extend its negative influence on Asian markets on Monday. We hope the damage will be minimal.

Looking at the trading pattern of JAKS today, buying up was glaringly visible. From the opening bell, it moved up in spite of going down to 81.5 sen at one point. Big blocks of shares above 1,000 lots were done mostly at the 83 sen-84.5 sen band. It is only in the remaining 45 minutes of the day that the price of JAKS went down to 82.5 sen on selective bargain hunting. Some 9.7 million shares changed hands and JAKS lost 4 sen.

The possible scenarios on Monday.

• The news of the pre-qualification of the Pahang-Selangor Water Transfer Project will hit the new-stand tomorrow and if Wall Street experienced tolerable losses tonight, all water contractor and pipe manufacturing counters will leap up as experienced by oil and gas counters on Wednesday and Thursday.

• The continual fear of the Dow will stifle trading and the effects of the pre- qualification will be ignored. Except for situational counters, others will continue to fall across the board but losses will be capped.

• The NCER launching could be heralded by the concerted action of Khazanah, EPF, the Pension Funds and their allies to push up the CI and set the market back on track. If that be so, JAKS should spring out of the box once again and leap beyond 90 sen.

Heartsong

Never Say Die!

It was a really bad day at the stock market. Fear built upon fear and mass selling began from the opening bell. It was really one big mess as the US sub-prime disaster caused two Australian funds to kaput! So Asian markets blood-bathed the entire day.

Despite the tragedy, depression and melancholia of losing gains and incurring loses, some investors were wise to pick up good counters that went down sharply as well as to take the opportunity to swap counters.

The market ended off its lows to close at 1355.38 points down a substantial 26.12 points. Volume was good at almost 2 billion shares valued at 3.5 billion ringgits. There was only a handful of gainers-144 while losers stood at 883.Gainers were RBLand up 65 sen, DFZ; 50 sen, Kossan 25 sen and KPS up 23 sen. Losers were BAT losing 75 sen, Tanjong;60 sen,Oriental;50 sen and Gamuda; 35 sen.

The portfolio has been modified. KPS will no longer be tracked. Instead Genting-CD will be tracked in its place. Let us look at how these counters performed.

Genting: lost 40 sen to RM8.15; an unnecessary loss of 40 sen. A good defensive counter and yet it was sold down the river. Volume was close to 7 million shares. Meanwhile, Genting CD closed unchanged at 0.35 sen. Resorts World showed resilience to close at RM4.10, down 4 sen on a huge trading volume of 28 million shares. BJ Sports Toto fell 6 sen to RM4.86 on a volume of 4.7 million shares. Elsewhere, Welli gained 5 sen to RM1.29 on a volume of 2.47 million shares. As the unveiling of the NCER masterplan is close at hand, I foresee Welli will move up. Exciting moments awaits.

RCE saw see-saw action and closed at RM1.03 down a sen on a volume of 7.7 million shares. Metronic closed half a sen lower at 22.5 sen on a trading volume of 2.4 million shares. JAKS did a disappointing tumble and rested at 82.5 sen for a 4 sen loss. Volume continues to be high at 9.7 million shares. Lastly, Taliworks dropped 7 sen to RM2.15.

Let us see how Dow trades tonight so that we can see how Bursa will possibly react on 30 July 2007, the day for the NCER masterplan unveiling by Prime Minister, Abdullah.

I hope local news will prevail on Monday to move the market up.

Heartsong

Dow Madness

I think we are gonna have one big bloodbath today if we continue to take the cue from Wall Street. The sub-prime mortgage problems are old hat. As the issues evolved, refinancing will occur.

I hope Bursa will not catch the cow disease from Dow. Otherwise all our stocks will be culled. But my hopes are in vain. Market slumped on the opening and stocks crashed.

To make a long story short, before 4 pm, the CI was down 31.4 points short of sliding below the 1350 point level. If that happens, then more funds will be selling to safeguard profits. 1.5 billion shares changed hands. Value was 1.82 billion. Only 89 counters went up compared to 958 which went south. The handful of gainers ere RBLand with 65 sen gain; RPower and DFZ. We need not mention losers, most are.

The portfolio was ravaged save for Welli and KPS. Welli was oversold and so could not really go down too much as there is no one who actually profited. Most bought Welli shares at about RM1.70. KPS shot up to RM2.20 but I would not know at what price it will sustained now that the news of the international pre-qualification exercise for the water transfer project has been announced. As KPS has gone beyond RM2.00, I will also stop tracking this stock.

Genting is fighting hard to stay at the RM8.15-RM8.20 level but its CD is tenacious staying at RM0.03 sen. I will now track Genting-CD until its expiry on 27 September 2007.Resorts is holding well at RM4.08 falling some 6 sen. RCE was pussyfooting around the RM1.00-RM1.02 level while JAKS is shuffling about between RM0.82- RM0.84 sen. Metronic is being supported at 22 sen. If it breaks below 20 sen, then its buying time

BJ Toto is treading around RM4.80 for a 12 sen loss while Taliworks lost 8 sen to RM2.14.

I will post on the closing after this.

Heartsong

Imminent! Repeat. Imminent!

Tracking the trading pattern of KPS today is indicative of one thing. Frantic collection.

In less than a year, KPS's price has moved close to 400%. Initial movement started in November 2006 and buying activity remains unabated until it was stifled by the fall in the Chinese markets in late February and subsequently by the sub-prime mortgage concerns in the US in early March. After that, it trended upwards to the RM1.40 level. May was mixed for KPS and prices weakened, trending downwards to the RM1.30 level. June saw its prices breaking the RM1.50- RM1.70 sen level convincingly.

This month is historical for KPS. From the RM1.70 level, within 15 trading days, it has breached the RM1.90 level, touching an intra-day high of RM1.96. There was no indication of heavy selling per se as most shares were well absorbed. Neither was there signs of huge heavy profit taking today. Last half an hour selling by weak holders sheared gains as sellers sold on fears spooked by the fall of Asian markets particularly Hang Seng and Shenzhen.

Let us look at the profile of the trading of KPS today. Huge blocks of shares of 500 lots each were done throughout the day interspersed by bigger blocks of 1,000 to 2,000 lots. Aggressive buying stopped at about half an hour before the final bell. Bargain hunters then came in to take off the weak sellers, dragging down the price to RM1.90.

I smell something is in the air. This is not a favourite syndicate counter. I think speculators with holding power have come in to take position ahead of an important announcement regarding the Pahang-Selangor Water Transfer Project (PSWTP) to be announced in the next few days. The most probable announcement will be the Japanese company has submitted the engineering design of the project to the Ministry and that action will be taken to tender out the project most likely within the next three months for the project to start work in early 2008.

I think KPS will move up a bit tomorrow,perhaps in a narrow band. If the fall in Wall Street is minimal, KPS should go beyond RM2.

Heartsong

Charge and Die!

It's 5 pm and market has ended with a minuscule gain of 1.77 points, propping the index feebly to 1381.50.

Started well with a rumble in line with a better Dow. Then Asian markets turned awry. Shenzhen plummeted 216 points, followed closely by Hang Seng, down 122 points. The Nikkei also dived to 156.33 points. Even our friend across the Causeway limped home with a 48 point loss. Given this scenario, fund managers lost their balls and stayed away in the afternoon session. Retailers, like rodents bargained the market down but all is not lost. Some late support on selected penny stocks and second liners did help a bit to sweeten misery.

There were only 312 gainers compared to 633 losers. Volume was acceptable; with about 1.8 billion shares trading hands. Shares traded valued at 3 billion ringgits. Gainers were Petra Energy, VADS, KNM, BAT and RHBCap while losers were the other cousin Petra, IOIProp,Boustead, DIGI and LPF.

Portfolio stocks - mixed performance.

Good performers were KPS and JAKS. KPS added 2 sen to RM1.90 on a volume of 125 million shares. I think the water-play game is about to begin. JAKS followed closely at 86.5 sen for a 1.5 sen gained after an intra-day high of 90.5 sen. Volume was 261 million shares. Taliworks added 3 sen to RM2.22 with a volume of 20 million shares.

Bad performers-Welli takes the kueh kochee again. It is now hiding under the seabed.It lost 6 sen to RM1.24 sen. Just who are the suckers dumping it to the collectors? Resorts is playing slow slide, down 6 sen to RM4.14. Still on heavy volume-355 million shares.

Genting is playing footsie, a plus and minus game. It ended unchanged at RM8.55 with some 70 million shares traded. Should move up tomorrow. BJ Sports Toto broke the RM5.00 support level to RM 4.92, losing 8 sen. Metronic stayed morose at its overnight level of 23.5 sen. Volume was better at 23 million shares. RCE was disappointing in spite of the earlier charge to RM1.10. It finished at RM1.04 for a 4 sen loss. Volume is still respectable at 70 million shares.

AMBD's charge was checked and it lost 0.5 sen to 46 after touching 50.5 sen in the morning. I will not be tracking this stock as it has surpassed my level of 45 sen. I will come back to it when it falls back to below 40 sen. Anything is possible in this fickled backboneless dilly-dally market.

Another dull listless market in spite of the charge in the morning led by Petra Energy.

So let us get on our knees and pray Dow Jones will shoot to the moon tonight so that we can enjoy a better Bursar day tomorrow.

Heartsong

Keep on Singing.....Baby!

All we need is to follow the leader, Dow Jones. Why because if big brother screws up anywhere, global markets will plummet. So, be careful when you trade where you tread......

We have the American Idol and many American idiots. Similarly, we have Bursar Idols and Bursa idiots. We are either idols or idiots. If you make most of the time, you are an idol, if otherwise, you are an idiot, a close cousin of Donkey Kong. The sheep versus the goats. Which are you looking at the time window from November 2006 till now?

Morning rush hour today was good. Led by new stock, Petra Energy, market bounced technically and most counters ticked up. Within 30 minutes, they are at their overnight levels. What gives?

Heartsong

Miserable Meltdown

So how wrong can one be. Very wrong. From a loss of something like 4 points in the morning, the market went into a tailspin and got walloped, losing big time by 12.45 points to end up at 1379.73. Losers beat gainers 583 to 389. Volume of shares traded was 2.1 billion valued at 3.2 billion. The market continued to show breadth and that is healthy. Oil and gas stocks hogged the limelight all day. The blues that took the CI down included UEMWorld, EONCap. DIGI, VADS and Naim.

The gods are angry especially Neptune who lost his trident to Welli. No wonder Welli could not stay put and went coral gazing once more losing 3 sen to RM1.30 .There was little volume and so no game-play-lah in the near future even though NCER masterplan will be unveiled soon. Genting lost all its gains ending at RM8.55 on a volume of 5.6 million shares and Resorts free-fall by 12 sen to RM4.20 on a volume of 24 million. KPS also lost its momentum and gains to settle down at its overnight level of RM1.88. Metronic sat in silence at its overnight level of 0.235 sen.

JAKS did fairly well adding 2.5 sen to 85 sen on substantial volume of 12.43 million shares. Should go some more tomorrow. Meanwhille, renewed buying buoyed AMDB to jump 5.5 sen to 47 sen. Let us see whether it can scale the 50 sen level. BJ Sports Toto was weak all day losing 5 sen to RM5.00 while RCE added a sen to RM1.08 after an intra-day high of RM1.11. I think the game is on, especially if it has to do with GE. Meanwhile Taliworks closed at its overnight leve of RM2.19.

The Dow is in positive territory now trading up in the 60-70 points range. Hope it gathers strength so that we can have one great trading day tomorrow.

Meanwhile, hold on to your stocks.....

Heartsong

The Morning Close

God has been kind. He disposes instead of opposes. So most counters have recovered their losses. Those which are still down can play catch up in the afternoon session. The CI is now only 4 points down, standing currently at 1387.66. The rush for oil and gas stocks have abated and other sectorial shares are moving back.

Big boy Genting, as predicted went up to its old level of RM8.70 on a volume of 36 million shares. Meanwhile, KPS jumped to finish at RM1.92 for a 4 sen gain on a volume of 49 million shares. Metronic added half a sen to 24 sen on a smaller volume of 25 million shares while AMDB moved up a sen to 42.5 on strong buying support of 62 million shares. JAKS was two sen better at 84.5 sen on sustained buying of 43 million shares. BJ Sports Toto was at its overnight level of RM5.05 on a 10 million share volume. Welli, unfortunately is looking for the trident again, losing 3 sen to RM1.30. Volume was sparse. No game as yet. Resorts is still down by 4 sen to RM4.28 on sustained buying of 151 million shares.RCE was a sen down to RM1.06 on a volume of 40 million shares. Should move up aggressively soon. Taliworks was down a sen to RM2.18. Expect upward movement too as the water-play starts.

Market looks good at the close with volume traded at 1.06 billion shares valued at 1.64 billion ringgits. Gainers still lost to losers by 297 to 573. Oil stocks are still leading with KNM at the top.

Retailers should be coming in numbers in the afternoon session.

Heartsong

The Witching Hour

We all know the classic proverb: Man propose, God dispose.

For Bursa Saham KL, perhaps it should be reworded. "Man propose, God oppose"

Hardly 24 hours ago, everyone was celebrating the new high of 1392 points and then, Indian giver style, it was taken back.... Macam mana tuan? Aca-aca kah? Please no play-play ah; so says Phua Chu Kang.

The CI is currently better compared with the opening. It is now at 1384.88 down 7.3 points, the most resilient of the Asian market losers. Except for Shanghai, every market played Wall Street's running dog and went down. There are 250 ups and 576 downs. Volume is good at 800 million shares valued at RM1.9 billion. I think local factors are coming to the fore. Let us look to the afternoon for God's grace and mercy.

Gainers were mostly oil and gas stock led by Kencana for election money, I suppose. Deleum,Wijaya, EPIC and Petra were up too. The downers were Naim, Green Packets and EONCap.

Looking at the portfolio of stocks tracked; Resorts seems to be firming up again, losing only 2 sen to RM4.30. Volume was at 122 million shares. I suspect collecting is still being done ahead of the bond conversion. Genting is up 10 sen to RM8.60 with a volume of 3.1 million shares.

A research house has remarked in its recent report that Genting's valuation of 19.1 times its FYOY P/E ratio versus global casino footprint is undemanding and efforts to unlock the value of its non-core assets is currently being undertaken. They see more upside on Genting's price.

The other stocks showed a mixed performance. AMDB and Metronic were at their overnight level of 41.5 sen and 23.5 sen.Welli and RCE were each down 2 sen to RM1.32 and RM1.05. KPS was also down by a similar margin to RM1.86 while JAKS added 1.5 sen to 84 sen. BJ Toto lost 5 sen and Taliworks lost a sen.

I believe the market breadth is due to buying of oil and gas stocks and also the buying of Genting-Resorts stocks. They should be buying NCER related stocks like Welli soon.

Heartsong

General Electric (GE)Wants To............

So GE was in the news yesterday and this time it is no longer invisible. Having financial involvements in India, Indonesia and Singapore; next hop: Kuala Lumpur. And they are shopping for a vehicle in financial services. And they are open and ready for any good propositions. Know any?

GE Interantional CEO, Fernando Becalli-Falco informed the media that it is actively searching for opportunities to get its finance operations started in Malaysia.This is because financial services is one of the most aggressive businesses in emerging economies. Right now, GE is just waiting for the right opportunity to buy a strategic stake in a local financial institution in Malaysia.

EONCapital is now quite out of the picture. So what next? Affin Bank, Hong-Leong Bank, Alliance Bank, Arab Malaysia Bank or just plain consumer finance per se like RCE Capital?

I do not think Hong-Leong Bank and Alliance Bank wants to have anything to do with GE. They are strong and guard their turf. Affin Bank. Yes, they may need a partner that is financially strong. Arab-Malaysia Bank and possibly RCE Capital-most probably if Azman can be cajoled to part with some areas of management to GE.

I am sure GE is talking to Azman, perhaps through third parties and a deal may just be hammered out for GE to come into RCE. Getting into RCE is easier because it is not under the supervision of Bank Negara. Moreover, there are imminent benefits to GE as they are in the white goods business and RCE is in the thick of it. GE may be considered a likely partner for Arab-Malaysian Bank at a later date if they proved amenable in RCE.

GE must assure Azman that there are immediate and visible gains for him if GE comes in. Azman needs to see a win-win situation developing if GE comes into RCE.

A possible carrot-perhaps GE's networks in India, Indonesia, Singapore and maybe the world will provide inroads for Azman's Arab-Malaysian Banking Group to grow its business!

Let us see what will happen to GE's plan in the next few months.

Heartsong

Mama Mia! A Ten Points Jump

Most would remember today as one of the better trading days of July 2007. Having built a broad base yesterday, the market moved up ever cautiously. The volume of shares traded today is 1.9 billion valued at 2.3 billion ringgits. The number of gainers easily trounced losers by 635 to 318. Of the gainers, VADS went ballistic adding RM1.35 sen while Muhibbah continued to attract interest, adding 90 sen. IOIProp put on 40 sen. Among losers were BAT losing 25 sen, BRDB giving up 22 sen and Telekom Malaysia and Sime Darby losing 20 sen each.

Portfolio stocks saw some good action.

Genting did well adding 20 sen to RM8.55 on a volume of 217 million shares.

Taliworks added 6 sen to RM2.19.

KPS added 5 sen to RM1.88, an auspicious price to be. Volume done was 95 million shares.

Welli with the help of the trident from Neptune, the Sea God, added 4 sen to RM1.34 on an increased volume of 23 million shares. Good threshold for an upward move.

RCE Capital went up 4 sen to RM1.07 on 69 million shares traded. Another go getter in the works.

AMDB moved up 2 sen to 41.5 sen on a volume of 74 million shares. I think it is ready to move up to 45 sen.

Metronic added a sen to 0.235 sen on an increased volume of 71 million shares. I think it is ready to move out.

JAKS hovered about its overnight level of 82.5 sen. Some 36 million shares were traded.

BJ Toto lost 5 sen to RM5.05. It lost support for quite sometime when it screwed up on its dividend payout.

Resorts World lost 14 sen to RM4.32 on a volume of 208 million shares. The intra-day low was RM4.28. I think it may have found its bottom when trading ended for the day. Expect marginal gains tomorrow.

All round, quite a good day in spite of Resorts giving back 14 sen.

Heartsong

Genting has Secured 50.08% of Resorts World

The buying was aggressive; ramping up for three straight days. They achieved their aim. Genting secured 50.08 % of Resorts shares yesterday, ensuring that control over the casino operator stays with Genting Bhd, its parent.

Feverish buying started on Friday(20 July 2007). Some nine million shares were purchased and Resorts' price jumped 14% to close at RM4.46. Resorts World then bought another 19.1 million shares yesterday for a total of RM85.8 million.

Citigroup Inc said in a research report that Resorts may buy back another 90 million shares to avoid having to pay a high price. Citigroup calculated that if all bondholders decide to convert their paper into new shares of Resorts World, Genting's stake would fall to 48.44 per cent. To lift the stake, Resorts World would possibly buy more of its shares and then cancel them.

Genting closed at RM8.55 today for a 20 sen gain while Resorts whimpered home with a 14 sen loss to RM4.32 on a slightly reduced volume of 208 million shares. The low for Resorts today was RM4.28. Is this the end of the ramp-up?

Will Resorts buy some more of its own shares to starve off the potential reduction of Genting's holding in Resorts upon the bond conversion? Have it exceeded the 10% legal limit?

It may have to do some share cancellation quickly if it wants to buy some more.

Heartsong

Profit Taking at the Morning Close

It was to be expected. Resorts World went up to touch RM4.60 and then profit taking took place. After a 56 sen gain, those short term punters must exit and they chose today to do it at their benefit.Resorts lost 16 sen to RM4.30 on a smaller volume of shares traded (128 million). So we will let Resorts to settle down to find its new level for the next few days as it goes into a consolidation phase.

Genting meanwhile move along, adding 15 sen to RM8.50 on a volume of 11 million shares. Genting should maintain that price this afternoon before attempting to return to its former price level of RM8.70.

KPS shot through the RM1.90 level but ended at 1.86 for a 3 sen gain on a volume of 68 million shares.

JAKS added a sen to 83.5 sen on a volume of 16 million shares.

Welli added 2 sen to RM1.32 on a volume of 15 million shares.

Metronics added 1.5 sen to 24 sen on a volume of 55 million shares.

RCE added a sen to RM1.04 on a volume of 24 million shares

AMDB added 0.5 sen to 40 sen while BJ Sports Toto lost 5 sen to RM5.05.

Taliworks was unchanged at RM2.13.

A mixed bag of results. I would love it if KPS and Metronic could continue to move upwards to show there is confidence in these two counters. I am particularly concerned for Metronic as it has not shown any good premium after moving to the Main Board. As for KPS, the big blocks of shares changing hands this morning shows that good news is coming. For Welli, I think it has found its bottom. Must have consulted Neptune and got his trident to make it back to better price levels.

Heartsong

Resorts Frenzy Buying is Over!

Observing this morning rush hour traffic (9.00-9.20 am), it looks the play is now on Genting. It went up 20 sen to RM8.55 and Genting-CD which was left behind yesterday took centre stage today to up a sen to 0.04 sen. Those who pun the counter at 2.5 sen and possibly at 0.3 sen can exit with joy.

Resorts shot up to RM4.60 but slided down equally fast to RM4.54 for an 8 sen gain. Will it hold at this level? Hard to tell. I surmised the Treasury buy is peaking. They could be bargaining the price down for another push up perhaps this afternoon. Buying is dynamic, with its peaks and troughs. I expect it to settle down at RM4.60 for a 14 sen gain, at best.

KPS has gone up to RM.189 for a 6 sen gain on good volume. Highest done was RM1.91. Elsewhere, Welli is still looking at corals or Neptune, down another 3 sen to RM1.27. JAKS is half a sen better at 83 sen.

We are now in the witching hour. What is on the other side?

Heartsong

Market Seems to be Developing Breadth

The last two days trading pattern shows early promise of a greater breadth for the market. Or is it just an illusion occasioned by the Resorts buy-back exercise. We cannot tell for sure since fund managers have jumped into the fray as well.

Cap Ayam predicts today's market. I append with some paraphrasing:

Malaysia shares tipped to trade in the 1371-1388 range tomorrow after failing to breach the all-time high 1391.57. KLCI ends down 0.83 points at 1381.53 in heavy volume on profit taking from intra-day high 1389.20 despite healthy buying interest in blue chips and index-linked stocks. Market breadth is positive with gainers leading decliners 494 to 427. The surge in China stocks, despite the imposition of higher interest rates, helped to lift regional markets with positive spill over effect onto our market. The ringgit's strength was an added catalyst for foreign funds," says dealer. USD/MYR was trading late at 3.4050 vs 3.4140 Friday.

So it is range trading that we can expect. If it is so, then we can say today will be more a bargain hunters' market and fund managers would not be in active participation. So let us watch the market as it unfolds. Meanwhile you can look at Kate Beckinsale in the above photo.

Heartsong

THE TALIWORKS-CIMB-STANDARD CHARTERED-EPF CONNEXION

TALIWORKS Corp Bhd (Taliworks) has gone into toll road operations by buying a controlling stake of 55 per cent stake in Cerah Sama Sdn Bhd (CSSB) the operator of the Cheras-Kajang highway. CSSB owns and operates the Cheras-Kajang highway through Grand Saga Sdn Bhd, which holds the concession right up to 2027. It will pay out RM55.5 million for this stake.

Taliworks, a water and waste-related specialist has formed a strategic partnership with South East Asian Strategic Assets Fund (SEASAF) - which will separately buy 35 per cent of CSSB for RM35.3 million - to pursue investments in toll road concessions, both in Malaysia as well as in the Southeast Asian region. SEASAF is a fund that is jointly sponsored by the CIMB Group and Standard Bank plc, and co-sponsored by the Employees Provident Fund.

Taliworks and SEASAF will collectively own 90 per cent in CSSB, which will be their vehicle for toll road investments.

Taliworks has been on the look-out for viable infrastructure projects to generate recurring income, while continuing to grow the water-related businesses. This new venture will elevate Taliworks into a next phase of growth and will position the company to be a full-fledged and formidable infrastructure player in the region.

Taliworks would sell RM225 million of convertible bonds to raise funds for its expansion. Goldman Sachs will take up RM180 million of the bonds, while the rest will be placed out to other investors.

The proceeds from the bonds will be utilised by Taliworks to look into potential investments abroad in water and waste-related infrastructure projects particularly in China and Middle East. The company envisaged overseas businesses will account for half of the group's revenue over the next three to five years from the less than five per cent currently.

Besides paying RM55.5 million for the CSSB stake, Taliworks has also committed up to RM52.2 million to help the former reduce its bank borrowings. The proposals are expected to be completed in the final quarter of 2007.

CSSB made a net profit of RM54 million for the 11 months ended May 31 2006.

The new shareholders intend to list CSSB after it has build up a sizeable portfolio of investments. The may list CSSB in about 7 years time or even earlier. They have not decided on which stock exchange to list it.

Heartsong