The Week That WasIt was a week that was memorable. It was a week that you see the stocks coming back with renewed strength. It was a week of of nail-biting, misgivings, worries and euphoria. It was also a week of prayer and hope that the beginning of the 3rd quarter would be better for the bourse given the expected goodies that could tumble from heaven with the release of the 2008 Budget on September 7th. The caveat: expect range-bound trading on the blue-chips. This will impact on the CI which will trade in a listless pattern until good local or global news affect it positively.
Let us look at the stocks in the tracked portfolio.
The gaming stocks-mixed at best. Genting went up and down and settled at RM8.45 off best from the height of RM8.75. We don't know how it will be holding. Progress on the Sentosa Integrated Island Resorts may spur its price. Resorts was heavily traded but similarly ended at RM 3.62 against its best price of RM3.86. BJ Toto went down to RM5.15 after a high of RM5.50. I believe the company's treasury buy-ins have stopped. Sin tax? May affect these gaming stocks if they are announced in the budget but "gambling is like salt". You need salt just like you need gambling-its in the human blood, crudely put. The stocks will come down a bit initially but in no time, they will be back on their revenue track.
Water play stocks-KPS continues to be strong. It weakened to an intra-day low of RM1.67 but generally held well above RM1.70. I foresee solid buying in the remaining weeks of July as it crosses into the RM1.80 region. JAKS performed well to end at 81 sen compared to intra-day low of 71 sen at the beginning of the week. Should move back to to 90 sen level in no time because of the huge volume of shares being traded this week. Should even go beyond a ringgit if more state tenders for re-piping are called.
Consumption Recovery play-We have RCE Capital here. After a quiet respite from being chased up last month, RCE has firm up a more solid base to spring forward as civil servants start receiving their new spending power in late July. Aseambankers expect RCE to touch RM1.33 possibly by end of September.
Metronics-The IT sector. This counter needs a review. On the application side, I see rainbows as they moved futher inland into India and the Middle-east but the backward linkage into hardware is a different story. Perhaps they have reasons for buying into these outfits i.e. the Middle-east market. Perhaps it provides synergies that have yet to unravel. Anyway, it failed to go beyond 42 sen in spite of it going ex-bonus and its migration to the main board on 9th July. Its theoretical ex-price is 22.6 sen. Let us see how the prices open up on Monday.
AMDB-Engineering, Manufacturing and Construction: A low priced stock hovering at the 40 sen level. It ended at 40.5 sen on Friday. The interest in this counter is about 2 weeks old. It has been chased up to the 46 sen level but slided back to 38 sen. Volume continues to be heavy; possibly retail buying ahead of potential good news for the property market. Difficult to move because of volume gravity and chances of dumping is great. Buy only if it goes below 36 sen.
Welli-Multi Corporation (WMC)-the mother lode of the halal hub play. A roller-coaster stock which saw ups and downs during the week. It fell when the SC sanctioned on the release of its annual and quarterly reports. From the RM1.70 level, it tumbled down to a frightening low of RM1.06. Then on Thursday, it flew phoenix-like on the news of the Hadhari Livestock Industries buy-in of 16 million shares at RM1.50 (19%). It ended at RM1.61 on Thursday but raced F1 style to RM1.92 on Friday before settling down soberly at RM1.67 for a 61 sen gain. It should stabilise this week on incremental marginal losses or gains. When news that SC has lifted the sanctions on its reports hit the market; it will go up again. So watch out for that sign.
Meanwhile, enjoy your weekend.
Heartsong
Let us look at the stocks in the tracked portfolio.
The gaming stocks-mixed at best. Genting went up and down and settled at RM8.45 off best from the height of RM8.75. We don't know how it will be holding. Progress on the Sentosa Integrated Island Resorts may spur its price. Resorts was heavily traded but similarly ended at RM 3.62 against its best price of RM3.86. BJ Toto went down to RM5.15 after a high of RM5.50. I believe the company's treasury buy-ins have stopped. Sin tax? May affect these gaming stocks if they are announced in the budget but "gambling is like salt". You need salt just like you need gambling-its in the human blood, crudely put. The stocks will come down a bit initially but in no time, they will be back on their revenue track.
Water play stocks-KPS continues to be strong. It weakened to an intra-day low of RM1.67 but generally held well above RM1.70. I foresee solid buying in the remaining weeks of July as it crosses into the RM1.80 region. JAKS performed well to end at 81 sen compared to intra-day low of 71 sen at the beginning of the week. Should move back to to 90 sen level in no time because of the huge volume of shares being traded this week. Should even go beyond a ringgit if more state tenders for re-piping are called.
Consumption Recovery play-We have RCE Capital here. After a quiet respite from being chased up last month, RCE has firm up a more solid base to spring forward as civil servants start receiving their new spending power in late July. Aseambankers expect RCE to touch RM1.33 possibly by end of September.
Metronics-The IT sector. This counter needs a review. On the application side, I see rainbows as they moved futher inland into India and the Middle-east but the backward linkage into hardware is a different story. Perhaps they have reasons for buying into these outfits i.e. the Middle-east market. Perhaps it provides synergies that have yet to unravel. Anyway, it failed to go beyond 42 sen in spite of it going ex-bonus and its migration to the main board on 9th July. Its theoretical ex-price is 22.6 sen. Let us see how the prices open up on Monday.
AMDB-Engineering, Manufacturing and Construction: A low priced stock hovering at the 40 sen level. It ended at 40.5 sen on Friday. The interest in this counter is about 2 weeks old. It has been chased up to the 46 sen level but slided back to 38 sen. Volume continues to be heavy; possibly retail buying ahead of potential good news for the property market. Difficult to move because of volume gravity and chances of dumping is great. Buy only if it goes below 36 sen.
Welli-Multi Corporation (WMC)-the mother lode of the halal hub play. A roller-coaster stock which saw ups and downs during the week. It fell when the SC sanctioned on the release of its annual and quarterly reports. From the RM1.70 level, it tumbled down to a frightening low of RM1.06. Then on Thursday, it flew phoenix-like on the news of the Hadhari Livestock Industries buy-in of 16 million shares at RM1.50 (19%). It ended at RM1.61 on Thursday but raced F1 style to RM1.92 on Friday before settling down soberly at RM1.67 for a 61 sen gain. It should stabilise this week on incremental marginal losses or gains. When news that SC has lifted the sanctions on its reports hit the market; it will go up again. So watch out for that sign.
Meanwhile, enjoy your weekend.
Heartsong
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