A Chop-Suey FinishWell it was one choppy trading day, I can tell you. Some effects possibly from the sharp downturn on Wall Street last Friday. The Chinese markets, however, rallied in spite of the Chinese government's measures at monetary tightening.
CI closed at 1381.53 points, down hardly a point (0.83). Some talk about foreigners selling blue chips particularly Tenaga to offset holding riskier assets. According to Phillip Capital Management, these short term fluctuations are a regular feature of the marketplace. No undue concern. Start to worry, though, if the US$ stage a rebound and investors take their money out of equities. Right now, ringgit is firming against the US$, so no immediate worry.
Sime Darby, Golden Hope and Guthrie rose on the potential of the new combined entity to save RM500 million in costs. Elsewhere Resorts World continue its share buy-back operation setting a record breaking run to touch RM4.52 before settling down at RM4.46 for a 24 sen gain. Genting also sprang into action, gaining 25 sen after breaking a 6 day retreat.
Market talk is that Resorts is buying shares because Genting's stake in Resorts will dip below 50 on the impending conversion of a convertible bond. According to Citigroup Inc, "Resorts will continue to buy back its shares and possibly cancel them to help bring Genting's stake above 50% again." Plausible and possible.
Let us see how high Resorts shares will go as the Treasury operations continue, assuming it still has a long way to go.
Now let us look at how the market perform up close. Good share volume today. 1.65 billion shares changed hands. Value worth 2.67 billion. Gainers stood at 507 while losers were at 434. Leading the gainers were UMW, LPF, Shell and Sime Darby. The losers comprises IOIProp, DIGI, Tanjong and Tenaga.
The portfolio:
Resorts came off best to end at RM4.46 adding 24 sen on the largest volume of 648 million shares done on Bursa today.
Genting added 25 sen on a rebound. It ended at RM8.35 on a volume of 154,615 million shares.
KPS finally got over the RM1.80 resistance level and finished 9 sen better at RM1.83 on a volume of 86 million shares.
BJ Sports Toto found new buying interest to add 10 sen to RM5.10 on a volume of 11.2 million shares.
AMDB closed unchanged at 0. 395 sen.
Welli continued free-falling to RM1.30 for a loss of 6 sen on a volume of 10 million shares.
RCE lost 2 sen to RM1.03 on a volume of 55 million shares.
Metronics lost half a sen to 22.5 sen on a volume of 18.3 million shares
JAKS lost a sen to 82.5 sen on a volume of 48.2 million shares.
Taliworks lost 3 sen to RM2.13 on a volume of 14.7 million shares.
My thoughts for tomorrow.
HeartsongCI closed at 1381.53 points, down hardly a point (0.83). Some talk about foreigners selling blue chips particularly Tenaga to offset holding riskier assets. According to Phillip Capital Management, these short term fluctuations are a regular feature of the marketplace. No undue concern. Start to worry, though, if the US$ stage a rebound and investors take their money out of equities. Right now, ringgit is firming against the US$, so no immediate worry.
Sime Darby, Golden Hope and Guthrie rose on the potential of the new combined entity to save RM500 million in costs. Elsewhere Resorts World continue its share buy-back operation setting a record breaking run to touch RM4.52 before settling down at RM4.46 for a 24 sen gain. Genting also sprang into action, gaining 25 sen after breaking a 6 day retreat.
Market talk is that Resorts is buying shares because Genting's stake in Resorts will dip below 50 on the impending conversion of a convertible bond. According to Citigroup Inc, "Resorts will continue to buy back its shares and possibly cancel them to help bring Genting's stake above 50% again." Plausible and possible.
Let us see how high Resorts shares will go as the Treasury operations continue, assuming it still has a long way to go.
Now let us look at how the market perform up close. Good share volume today. 1.65 billion shares changed hands. Value worth 2.67 billion. Gainers stood at 507 while losers were at 434. Leading the gainers were UMW, LPF, Shell and Sime Darby. The losers comprises IOIProp, DIGI, Tanjong and Tenaga.
The portfolio:
Resorts came off best to end at RM4.46 adding 24 sen on the largest volume of 648 million shares done on Bursa today.
Genting added 25 sen on a rebound. It ended at RM8.35 on a volume of 154,615 million shares.
KPS finally got over the RM1.80 resistance level and finished 9 sen better at RM1.83 on a volume of 86 million shares.
BJ Sports Toto found new buying interest to add 10 sen to RM5.10 on a volume of 11.2 million shares.
AMDB closed unchanged at 0. 395 sen.
Welli continued free-falling to RM1.30 for a loss of 6 sen on a volume of 10 million shares.
RCE lost 2 sen to RM1.03 on a volume of 55 million shares.
Metronics lost half a sen to 22.5 sen on a volume of 18.3 million shares
JAKS lost a sen to 82.5 sen on a volume of 48.2 million shares.
Taliworks lost 3 sen to RM2.13 on a volume of 14.7 million shares.
My thoughts for tomorrow.
- Marginal rise for Resorts and Genting if Treasury buy-in becomes less aggresive.
- The beginning of the water-play if there is follow through on KPS buying-ins.
- Possible Welli (WMC) play if the collectors have collected enough.
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