Magic Moments

2007-08-26T16:45:00.000+08:00

Blog Closure

Well, day is done for this blog. It has reached 200 postings. So a new blog has been opened to track Bursa. It is called Stock Smart and is accessible at

http://stocksmart0203.blogspot.com/.

As you would probably have enjoyed Magic Moments, I hope you will continue to follow my stock market rantings in the new blog.

So happy reading and may God bless all of us.

Heartsong

2007-08-24T17:29:00.001+08:00

Lock in your Profits

And the bargain hunters did come in at the last hour. The CI was better at the close, losing 10.1 points to 1273.52. As prices rose, many sold into strength. Profit taking soon took its toll of some situation counters especially JAKS which lost 2 sen to 90 sen. Volume was 1.2 billion shares valued at 1.6 billion ringgits. Not much breadth as much we would like to have. There were 480 gainers and 365 losers.

Gainers were Cepco with 68 sen; PPerdana gaining a whopping 60 sen, SAAG tacking on 55 sen and DFZ adding 35 sen. Commerz, JTInter, PetGas and Tanjong all lost 30 sen each. So, it is clear some of these brought down the CI.

Gaming stocks Genting(RM7.20) and BJ Sports Toto(RM5.05) led the portfolio; adding 15 sen and 5 sen respectively.Welli added 3 sen to RM1.05 while RCE added a sen to 81.5 sen. Metronic dopped half a sen to 16 sen while JAKS lost 2 sen. Resorts also gave up 4 sen to RM3.76.

Next week will be a challenging week. Will Bursa move up heavenward again? Hope so. In commemoration of 50 years of Merdeka, investors should be given the chance to rejoice too.

Dow Jones is in uncertain waters again. But I hope the turbulence will be confined to US shores, this time around as I believe the impending issues are no longer on the financial system but more on the economy.

Heartsong

2007-08-24T14:04:00.001+08:00

On Eggs Again

As I predicted, Bursa took a rest, losing 16.8 points at the lunch break. The CI closed at 1266.84 points.Losers beat up gainers 659 to 137. Volume was not too encouraging at 510.5 million shares worth 780 million ringgits. Gainers were SAAG adding 50 sen, PPerdana notching up 24 sen; UBB back from the dead with a 24 sen rise and WCT which gained 20 sen. Losers were JInter which gave up 30 sen,BAT losing 25 sen and IJM dropping off 25 sen.

The portfolio saw mostly falls but for Genting which put on 15 sen to RM7.40. Resorts dropped 10 sen to RM3.70; RCE dropped a sen to 79 sen while JAKS, the market leader lost 0.5 sen to 92 sen. BJ Sports Toto lost 2 sen to RM4.98. Welli lost 2 sen to RM1.00 while Metronic lost 0.5 sen to 16 sen.

There may be some bargain hunting in the afternoon and prices might be better. So CI should be in higher territory.

Heartsong

2007-08-23T18:58:00.001+08:00

Bursa on the Roll

Well this is the second day of gains for the Bursa. It is also the third day of gains this week; counting in Monday which brought back 51 points to the CI. It is certainly on a roll now that the sub-prime roil has been contained somewhat. CI moved to 1233.62 up another confident-boosting 28.23 points. Gainers conked out losers 771 to 173. Volume moved up to 2.4 billion shares worth RM2.57 billion. Market has reach a good breadth.

Gainers were IOIProp which took in a hefty RM1.10; Bursa which chalked up 65 sen while Commerce wrestled back 50 sen. Meanwhile, BAT added 25 sen. Losers lost little. CIMA lost 15 sen;Delloyd 11 sen and Mamee 10 sen.

The portolio was good as JAKS leaped forward to 92.5 sen adding 8.5 sen. I believe they won the court case against PUAS and SPLASH. If they did, then our courts are above politics and respect the sanctity of contracts. BJ Sports Toto, as expected jumped back to the RM5.00 level, adding 18 sen. Resorts moved steadily to RM3.80 and I foresee a big bang in a matter of days if Dow is good. Strangely Genting was unchanged at RM9.25. A great buy if you have cash. RCE went up to 80.5 sen adding 2 sen. Metronic was half a sen better at 16.5 sen. Welli, in spite of good volume stayed at its overnight level of RM1.02.

I believe Bursa will rest tomorrow. So CI will move up marginally as profit takers take down the speculative stocks and second liners. It may also go red if Dow goes down tonight.

Heartsong

2007-08-22T19:54:00.001+08:00

Showing a bit, arent'we?

So when there is not much influence from Wall Street, we strut around. Showing a bit, aren't we?

Anyway, after a hesitant start, Bursa went its own way as I forecasted. With local news such as Ranhill hitting oil and IOIProp making abundant profit, CI moved confidently to 1255.39, up 23.91 points. Volume was very much better at 1.01 billion worth 1.3 billion ringgits. Gainers ran ahead of losers 847 to 106. Gainers were Lion Diversified with an 80 sen gain followed by Tanjong which chalked up 50 sen, IJM which tacked onn 50 sen and Naim which posted 50 sen as well. Losers were MPI losing 25 sen and IOIProp losing 20 sen.

The shadow portfolio followed the main trend. Genting added 10 sen to RM7.35;Resorts tacked on 6 sen to RM3.70 BJ Sports Toto put on 2 sen to RM4.82. JAKS meanwhile added 7.5 sen to 84.5 sen while RCE Cap moved up to 78.5 sen, adding 4.5 sen. Welli also did well moving up 7.5 sen to RM1.02. Finally, Metronic remained unchanged at 16 sen.

So what would be in store for tomorrow? I think market has even out its loss yesterday. Bursa is now back at the starting block. If there are no more dramatic bearish news from Wall Street, Bursa should recover lost ground and move ahead. I do not foresee a brisk upward movement but more a leisurely stroll up the index.

Heartsong

2007-08-22T09:15:00.001+08:00

Is Welli actually Hadhari Cattle Industry ?

As I reflect upon the statements made by Dr. Rashid Tang Abdullah of Welli and Hadhari Cattle since May, I cannot but be amused to think he was talking about Welli and Hadhari as if they are synonymous-the same company. Maybe it is de jure. In his mind's mind, Rashid knows that they are ONE or about to become one. On its own, Welli is a big fat nada ZERO! Directionless-going no where and worse of all-prospectless. With Hadhari as lead rider , it is a strong bull and big things are for the taking-the world Halal hub in its vision. Something they are already smack right in it and to boot, with the blessings of the Malayian leadership. A new reality dawns for Welli as it will takes on the guise of Hadhari in its steps.

Undoubtedly, it is veering towards that. Hadhari is helping the new owners of Welli by buying off another minority seller, a chunky 19% to help strengthen their stranglehold on management.

The collection of Welli shares that started just before the sub-prime dam burst, is evidential that something is in the air for Welli. Perhaps an announcement that may put Welli back on the investors' radar. Of, course it was not to be as every one ran for cover when the sub-prime holocaust hit. But confidence did not ebb even though Welli hit pay dirt at 87 sen. It then rose as high as RM1.20 and then it settled down to above RM1.00. Today it is floating at the 95 sen level. The collection however continues.

Lots of 50-100 are quite common trade in spite of the bearish market. The only possible news on the horizon is the release of their 2006 Annual Report and possibly that of a first quarterly report for the current year. Will the quarterly report provide something profitably fresh for the mind of the investor to seize upon?

Or is it something bigger looming on the horizon as the dusts settles in Mongolia and Malaysia? Time will tell.

Heartsong

2007-08-22T08:03:00.001+08:00

The Bulls May be Off to Bali....

Dow was ambivalent. US Treasury bills yields have risen. The Feds have injected more money into the market to alleviate the tight fund situation for bill buying. Flight from money-backed securities into Treasury bonds continues. More are of the opinion that the Feds will not cut the rate on September 18 as selling pressure ebbs on Wall Street and there is less fear all round on the sub-prime. Oil prices are trending downwards as Hurricane Dean loses its sting.

Meanwhile, in the east, China increases its interest rate and allowed for the first time for individuals from mainland China to buy shares off Hong Kong. The early furor has somewhat died down but I expect demand will go up once the mainland Chinese investors gets savvy enough to trade in HK shares.

The Japanese yen continues to trade higher especially against the NZ$ and the Aussie$ as the carrying trade unwinds. As long as this continues, yen will move forward. Many are speculating that the BOJ will not increase interest rate for the time being.

Back home, market closed 1% lower yesterday, brought down particularly by the selling down of Genting which has been grossly oversold and should bounce back. If at all, the market can come back on its own, it will be led by the tandem leadership of the Genting-Resort pair. External help can come in the form of a coordinated push by Value Cap and its GLC sister funds. If the move can counter foreign fund selling, we should be back on course for a rally before the September 8 Budget. If not, this is one year where we are denied that bullish phase.

My reading today before the market opens: Lackadaisical trading pattern with a downward bias to hold cash and the omnipresent "wait and see" non-committal stance. This will cause low volume trading and sap away excitement sentiments from our market.

The bulls are away in Bali and in exotic places like Aruba. Expect two boring sessions today.

Heartsong

2007-08-21T17:20:00.001+08:00

Simply a Case of Indigestion?

CI closed today down 11.53 points to 1231.86. Volume was 1.08 million shares worth 1.37 billion ringgits. Losers whacked gainers by 716 to 202. Gainers were SAAG with a 40 sen headstart gain, IOIProp adding 30 sen; L Daun topping up 29 sen and Kossan collecting 20 sen.

The portfolio showed mostly losses. BJ Sport Toto was the only stock to grip tightly to its overnight price level of RM4.80. The rest flowed down the river particularly Genting which lost a hefty 50 sen to RM7.25. Resorts followed suit losing 12 sen to RM3.64. RCE Capital dropped 5 sen to 74 sen while JAKS slided 5 sen to 76.5 sen. Welli fall through to the bottom of the lake losing 9.5 sen to 94.5 sen. Metronic lost 0.5 sen to 16 sen.

Heartsong

2007-08-21T14:37:00.001+08:00

Directionless Again?

Where are we heading? The Dow was in positive territory but influencing Bursa today it did not. We have an overbought situation yesterday when the index outdid itself. Easy come easy go. So today, like the agonizing head above, decision-less and direction-less, sellers appear to trim gains and put the trajectory in a southerly course.

The CI was down at 1241.45 down a minuscule 1.94 points. Losers were expected to outnumber gainers which they did 569 to 215. Volume was low at 584 million shares worth 889 million ringgits. Gainers were second grade blues and those situationals which had big book value in terms of contracts. SAAG was up by 40 sen,BAT;25 sen,Genealy 22 sen and Kossan by 18 sen. Left much to be desired. Looks like the true blues are missing from this list.

Looking at the portfolio, it followed the general trend. Genting was down 10 sen, Resorts dropped 12 sen ;BJ Sports Toto- 2 sen and RCE Cap 3 sen. Welli dropped to 99 1/2 sen losing 4.5 sen while Metronic was unchanged at 16.5 sen. JAKS slided 2 sen to 791/2 sen.

So, nothing great this morning for the portfolio.

Heartsong

2007-08-20T18:15:00.001+08:00

Bursa in Your Hands

To many, the afternoon belonged to them. They punt the blue chips in the morning and they were richly rewarded when the market followed through this afternoon. Speculative stocks closed at almost their day's high. What a day - a day dedicated to the Lord in this Year of Jubilee. For those who made the money, it was such a sweet day to remember. To those who sold on Friday and did not buy back, they watched as their opportunity window ebbed away.

Today the market went berserk at the opening bell. Sellers came from everywhere to swamp the market place picking up sellers at will. Prices moved up gradually but firmly. Those playing CWs are now laughing all the way to the bank.

The CI climbed 51.84 points pushing the index to 53.56. Gainers thumped losers 1014 to 55. Volume of stocks traded stood at 1.44 billion worth 2.43 billion ringgits. The super gainers were Digi, Stemlife, Bursa and Genting. Losing were KFC, Engkah and IOIProp.

My shadow stock portfolio followed the trend and benefitted as well. Genting shot up to RM7.75, adding 75 sen. Resorts World was better at RM3.76. BJ Sports Toto increased 22 sen to RM4.80. This is one counter which is a bulwark of a stock. In no time, it will be back to the RM5.00 level.RCE Capital sprinted back to 79 sen, upping 7 1.2 sen while super JAKS hoisted up a couple of notches to reach 81 1/2 sen, up 71/2 sen. Metronic up a sen to 16.5 sen while Welli added 7 sen to RM1.04.

Will all these gains stay put or will they be given back tomorrow or the days following? If Dow moves up vigorously tonight, then another price ramp up is expected tomorrow. If Dow is ambivalent, then there could a marginal increase and then Bursa will have to take its own direction.

Anyway, this a good happy day for many.

Heartsong

2007-08-20T13:13:00.001+08:00

A True Blue Ribbon Day

Like leaping tigers, the CI bounced back with vigour to finish off the morning session gaining 42.61 points, pushing the index to 1234.16 points. It was a true blue ribbon day. The financials led the come-back followed by second grade blues with speculatives and situationals running ahead.

909 counters were up compared to 63 down. Volume was at 805 million shares worth 1.23 billion ringgits. Second grade blues lead the gainers. These are Petgas, Muhibbah, UMW and Gamuda gaining from 50 to 65 sen. Losers were KFC and PDZ.

The portfolio performed true to form as well; especially the defensive gaming stocks. Genting upped 45 sen to RM7.45 and Resorts gained 14 sen on news Star Cruises sold 50% of its shares in NCL Corp to an equity fund Apollo Management for US 1 billion bucks and will now focus its business largely in Asia. BJ Sports Toto shot up to RM4.76 topping up 18 sen.

RCE performed incredibly well upping 61/2 sen to 77 sen while super JAKS upped a similar amount to 80.5 sen. Welli added 6 sen to RM1.03 while Metronic was a sen better at 16.5 sen.

Market did extra well at all levels. However, some will come down this evening because of possible profit taking as uncertainties on Wall street make holding stocks risky.

If Wall Street should go sideways tonight, Bursa may be rudderless again and profit taking may set in from the morning bell tomorrow.

Heartsong

2007-08-19T23:29:00.001+08:00

The Wall Street Weather Forecast

Last week saw money seeding throughout the world from New York to New Zealand. In Europe, ECB pumped in money to help out financial institutions that have been cash-strapped by the sub-prime imbroglio. US and Australia followed suit. Soon it was Japan and South Korea. More need not be said.

The Fed delayed action left much to be desired and markets world-wide plummeted. By Thursday,Wall Street moved up on short covering. A technical rebound was long overdue. Then the Fed count the symbolic discount rate by 0.5 % and allowed loans for a duration of 30 days and not overnight. With that, fears were allayed and Wall Street shot up initially to 300 points. If not for the intervention of the authorities to prevent speculation, the Dow would have finished up 300 points.

Will there be follow through this coming Monday on Wall Street?

Every one knows sub-prime is not going away soon. Everyone knows unwinding of the yen carry trade will continue perhaps under less pressuring conditions. That another financial institution may be caught in a liquidity bind is not unforeseeable.

But the Feds are ready and on standby stations. Apart from the discount rate cut, they are continuing market operations by putting more money into the system. Their guarantee on Fannie Mae and Freddie Mac still stands to ensure the mortgage market continues to perform.

The fed rate is anticipated for a quarter point cut in September. This is seen to be more useful as it will help the mortgagee as well. Also it will allow cheaper funds for M&As to take place. The downside will be inflation worries and the fear that foreign governments might just dump Treasuries. Both will negatively impact economic growth.

Hurricane Dean's movement across the east coast of US and Mexico has pushed oil prices up. However, the sub-prime may cause many companies not to expand as planned and this could put a cap on oil requirements.

The comfort now is you have the central banks all working to restore their financial systems. The Fed is on standby and ready to act. There will be worries but it will be contained. As long as the majority perceives that the worse is over, the market can then start back on its journey towards the 14000 level.

Asian market should go up in reaction to the recovery in US and Europe.

We shall see how the Dow perform tomorrow night.

Heartsong

2007-08-17T17:49:00.001+08:00

Magic Moments Revisited

What a tumultuous day!

From a free-falling market losing 60 points at one time, the bursa came to it senses at the last hour and losses were reduced drastically. I guess all the forced selling was completed by 2.50 pm. The CI closed at 1191.55 losing only 16.06 points. There must have been smiles and sighs of relief at all trading halls throughout the nation.

Volume was 1.8 billion shares valued at 3.1 billion ringgits. Losers push ahead of gainers 855 to 189. Gainers were KFC which added 45 sen, JOBS which tacked on 40 sen, Puncak which topped itself up by 32 sen and Genting and Resorts which added 25 sen and 24 sen respectively. Losers were Digi down by 90 sen, KLK by 70 sen, MISC by 45 sen and SP Setia by 45 sen.

Portfolio stocks which was beaten to a pulp initially recovered to minimise losses. Gaming giant Genting put on 25 sen to RM7.00 and Resorts flew by 24 sen to RM3.58 on heavy trading volume. BJ Sports Toto finished unchanged at RM4.58 while JAKS finished 3 sen lower at 74 sen. RCE also finished lower at 73 sen losing 2.5 sen. Welli was down 3 sen to 97 sen while Metronic lost a sen to 15 sen.

Today reminds me of the frantic nervousness that bore on the market after the outbreak of the first Gulf War when Saddam Hussein attacked Kuwait as well as the terrible Asian currency meltdown of 1997 suspected to have been started by Soros.

What a great day this is. To be able to experience yet again the sheer anxiety and excitement of a falling market and a good rebound. Bravo! Calls for a round of beer!

Will follow-through come on Monday and will Bursar scale the 1200 level? Anything is possible, by the grace of God.

We will wait for that on Monday.

Heartsong

2007-08-17T13:38:00.001+08:00

The Yen Bogeyman

So you think the sub-prime has caused havoc to the market? The yen carrying trade is now doing its part as well. Equities are now being hammered at both ends from New York to Tokyo.

The yen have shot up this morning like a rocket and panic buying to cover yen loans by those unwinding the carrying trade screwed markets world-wide even though Wall Street dropped less than 20 points.

The CI has dropped a massive 59 points at 2.45 pm It was a downright harrowing experience as panic hit the streets. Some stocks are down by almost 20%.

I do not believe any stocks can take this kind of punishment. When will the carnage end?

Heartsong

2007-08-16T18:27:00.000+08:00

Bloody Massacre

As expected bargain hunting by some fund managers help lift prices on some blue chips to bring down the loss on the CI. At the close, CI lost 44.21 points to 1207.61. Volume was fair at 1.52 billion worth 3 billion ringgits. Losers wiped out gainers 1066 to 41. Gainers were BAT which added only 25 sen; Asiatic which managed to recover 10 sen after a huge fall yesterday, Hwa Tai which tacked on 8 sen and BHIC which brought in 5 sen. Losers are the who's who on the bursar. Sime Darby lost 75 sen. Muhibbah lost 70 sen as well. Public Bank lost 40 sen while Maybank was lower by 30 sen. Transmile dropped 44 sen and UEM World gave back 30 sen.

The portfolio stocks were squashed into congee and soups. Genting rolled the dice and lost 40 sen to RM6.80,Resorts World lost to player by 28 sen and BJ Sports Toto dwindled by 20 sen. JAKS dropped 6.5 sen to 77 sen while RCE lost 9 sen to 73 sen. Welli was one tough nut maintaining the price level of RM1.01 and RM1.02. I think there is a definite collector all day. Metronic declined by a sen to 16.5 sen.

Most future indexes and European markets are trading in the red now. I expect Dow to go red tonight from the word,''Go."

Heartsong

2007-08-16T12:45:00.001+08:00

Burn,Burn, Burn

Like fire and brimstone, from the heavens, it rained doom and gloom on the bursa.

The signs have been given. Dow futures pointed south. Markets from Europe to Asia were maroon in colour. But they played on, frolicking to the price movements. A grab here and a grab there. Unless you are collecting, do not put your fingers into this cauldron of fire.

Taking a cue from Wall Street, market collapsed. The chartists can chart all they want. TA or FA. Every day, a new low; every day new charts. A waste of time,effort and energy trying to put a handle to the market.

CI went down to 1205.58 down a humongous 46.24 points. Gainers was 17 against 1051 losers. Volume was 841 million valued at RM1.5 billion. Losers cut a swath of red ink across the board with speckles of greens.The hardest hit seems to be construction stocks like Gamuda and Muhibbah. Both went down badly; the former by 95 sen and the latter by 70 sen. IJM, another builder went down by 65 sen. Something is not right with Kulim. It fell 64 sen.

Portfolio counter were beaten to a pulp. Genting was hard hit; dropping a huge 45 sen. Resorts dropped 24 sen to RM3.38 and BJ Sports Toto got cut down by 18 sen. RCE lost 3.5 sen to 75.5 sen while JAKS was at 78 sen losing 5.5 sen. Metronic lost a sen to 16.5. Welli was strong, losing only 2 sen to RM1.02. Strong buying noted on this counter.

I believe some bargain hunters will come in to fish for blue chips in the afternoon to reduce the loss o n the CI. Expect situationals like JAKS, KHSB and KPS to move up a bit

Heartsong

2007-08-15T18:17:00.001+08:00

Bird Eat Bird World

As portrayed in the photo, it's not only a dog eat dog world, it is also a bird eat bird world and now a man eat man world as the world equity markets slaughter the humans relentlessly.

The European markets was awashed with red ink and so were all Asian markets. How will Dow open tonight? Up, we hope. But aren't we dreaming, wishing and hoping again that the sub-prime and the yen carrying trade will quietly go away?

CI closed down 33.2 points to 1255.17. Volume was fairly good at 1.1 billion shares worth 2.1 billion ringgits. Gainers overcame losers 990 versus 58 only. Only blue chip to shine with only a 10 sen gain was Dutch Lady. An unknown counter called Ingress managed a 3.5 sen gain. Losers galore included Lion Diversified(90 sen); Muhibbah(70sen); UMW(70sen), Stemlife(52 sen) and Kulim(55sen).

The portfolio went to Greenland. Genting went down the hill to RM7.15 losing 40 sen, Resorts World lost 35 sen, BJ Sports Toto reversed gear to lose 12 sen and RCE dropped to 81 sen losing 6 sen. JAKS was down 4.5 sen to 82.5 sen while Metronic was a sen down to 17.5 sen. Welli was at RM1.04;losing 10 sen but buying was strong.

If Dow goes down tonight, there will be more blood-letting. If it gains or lose marginally, there may be some hope that the slide can be arrested. But do not expect market to be active and about. It still has to be be confined to bed for sometime.

Heartsong

2007-08-15T12:38:00.000+08:00

O Lord We Need You!

Yes, all of us investors and speculators on Bursa have sinned. They have forgotten You and have heaped praise on Manon. But You are great. You who made the mountains and the oceans. You do mighty wonders, Lord.

We must repent. We must go back to Your Word, The Bible. We pray to you so that this equity market havoc world-wide will end. It has caused trillions to be wiped out. It has caused pain, anguish and fear. We look forward to a divine exchange, trading our fears, sins and hatred for your peace love and kindness. We adore You, we love You and we uphold Your name on high. Amen.

Today Bursa along with all bourses world-wide felt the biting agony and pain of the continuous sub-prime roil. Bursa closed the morning session at 1258.74 with a loss of 29.60 points. Losers overwhelmed gainers 923 to 28. Volume was visibly thin at 553 million shares worth 913 million ringgits. Gainers were unknowns such as Gunung adding 3 sen. The others adding less than 4 sen were Air Asia (3.5 sen)and Shangrila (3 sen). Losers were aplenty. Take your pick. We have a morose Muhibbah here with a 80 sen loss. Then sitting over there as well is poor anemic Asiatic losing 60 sen. Lion Diversified here has lost its guts to give away 55 sen and Stemlife is almost lifeless losing yet another 48 sen.

The portfolio also played follow the leader. Genting dropped down the mountain to RM7.25 sen;losing another 30 sen.Resorts World lost 12 sen at a game of chance to finish at RM3.62. Welli went scuba diving yet again to lose 9 sen to RM1.05. RCE Cap lost 6 sen to 81 sen and JAKS dropped off 5.5 sen to 81.5 sen. BJ Sports Toto gave up 4 sen to RM4.72 while Metronic lost a sen to 17.5 sen.

A real carnage if ever there was one. One of the worst market days to experience. Of pain, horror and anguish.

Looking at the picture above remind us of our Lord who died on the cross to atone for all our sins so that we may find eternal salvation.

Let us pray

Heartsong

2007-08-14T21:46:00.001+08:00

Nowhere Market

The afternoon lulled on as stock prices moved down shade by shade. The top sprinter, KPS pulled a fast one which resulted in it falling 13 sen to RM2.84. The effect of ESOS shares being traded tomorrow hit home hard on buyers who chased the shares beyond RM3.00.

CI was up only 0.8 points to 1288.34. Volume continued to be thin at 761 million shares valued at 1.2 billion ringgits. Losers screwed up gainers 457 to 330. Gainers were MIDF which gained 49 sen on news it will be be taken private. ACB gained 28 sen while Lion Diversified added 25 sen. So did BAT. Losers were TaAnn losing 60 sen. POS Holdings which did a stunt; a sleigh of hand deal transfering Transmil at RM12.00 to the new unit caused Transmile to lose 44 sen. Many got conned yesterday by a newspaper item on this. Caveat emptor; so blame no one for your tomfoolery. Chin Teck slid 35 sen and BHIC was eroded of 32 sen.

Portfolio-wise saw Genting adding a paltry 5 sen to RM7.55. BJ Sports Toto and Metronic were overnight at RM4.84 and 18.5 sen. RCE lost a sen to 87 sen and JAKS was also at 87 sen losing 3 sen. Resorts dropped 4 sen to RM3.74 and Welli lost by a similar amount to RM1.1.4.

Not a good trading day as was expected.

I see signs of a fading bull market and the advent of a bearish trend.

Heartsong

2007-08-14T13:10:00.001+08:00

The Bear Dance

I am no joy-killer. I do not want to be one. Ever. But signs are the bears are here. They are fox-trotting to the sway of the sub-prime melody. Sub-prime is the top of the pops for more than three weeks now on the world charts from New York to Seoul. Just this morning, it started to move up the charts again after sliding for the last three days because of the new numbers played by the central banks.

One more provider, Aegis Mortgage has filed for bankruptcy and an investor bank is involved as well. From 100 points up, Dow sank to red territory. Asian markets follow suit this morning.

Bursar was happily moving up this morning in a verdant green landscape but by lunch break it has lost 6.2 points bringing the index down further to 1290.24. Morning trade was thin at 383 million shares worth RM1.29 billion ringgits. Losers outran gainers almost 2:1, that is 421 to 274. Gainers were MIDF which added 40 sen and BAT which climbed 25 sen. No big deal for BAT. MPI gained 25 sen as well and MBSB; out of blues came in with a 20 sen gain. Highly suspicious!

Portfolio stocks came in mixed. Genting added a miserable 5 sen to RM7.55. Good support noted. BJ Sports Toto climbed 2 sen while Resorts lost two sen. RCE and JAKS both dropped 1.5 sen each while Welli dropped a sen to RM1.17. Metronic was at its overnight level of 18 .5 sen.

Any hopes for a better afternoon session? By a long shot..........

I still hear the bear swaying to their favourite rhumba,"Sub-Prime Blues got Aegis".

Heartsong

2007-08-13T18:58:00.000+08:00

Joyless Ride

Today is one dull day. A joyless ride. Trading is relatively thin at 869 million shares worth 1.49 million ringgits. CI was better in the afternoon finishing at 1296.48 up 8.78 points. Losers still took pole position at 519 against 333 losers. BHIC continue to hog the limelight putting on RM1.99 followed by Transmile which gained 56 sen. MPI added 55 sen and Gamuda tacked on 45 sen. Losers were Stemlife losing 64 sen, TaAn dropping 40 sen and Guthrie losing 25 sen.

The shadow portfolio was mixed. Genting and BJ Sports Toto, RCE and JAKS managed to gain. Genting added 5 sen to RM7.50;BJ Sports Toto; 2 sen to RM4.84; JAKS added 2,5 sen to 90 sen and RCE notched up 2 sen to 88 sen. Metronic and Welli were the losers. Metronic lost 1 sen to 18.5 sen and Welli 3 sen to RM1.18. Resorts World lost 2 sen to RM3.78.

Dull trading day. Most Asian markets are up though. So that will bode well for Bursa. US Futures also did well and so can encourage investors on Wall Street tonight to be quick on the buy.

We await the unfolding drama.

Heartsong

2007-08-13T13:18:00.000+08:00

More Defensive than Offensive

A stalemate; that's what we are gonna have with a downward bias. If more bearish news emerged if the afternoon, Bursa will go into a red swamp.

As usual, the positive mind-set pushes the index to more than 13 points in the first 20 minutes. Blue chips like banking stocks were a shade better. Situational stocks like KPS, KHSB and JAKS ran ahead. Then, they played limbo rock. Except for KPS most went down the limbo stick.

Index closed barely one point for the morning session.CI was at 1288.10 up 0.4 points. Gainers lag behind losers 126 to 691. Volume of traded stocks shrank to 428.6 million shares worth 1.57 billion ringgits.

Among gainers were BHIC which upped RM1.75 sen, Transmile gained 46 sen, P Perdana up 42 sen and Tanjong put on 30 sen. Losing were Stemlife lost 74 sen while KLK dropped 30 sen, PPB was also down 30 sen and SunCity slidded 26 sen.

The portfolio played limbo rock too. Genting finished unchanged at RM7.45 while Resorts went down 2 sen to RM3.78. BJ Sports Toto also lost 2 sen to RM4.80. RCE dropped 1.5 sen to 85 sen while JAKS was 1.5 sen down to 86 sen. Metronic also went down a sen to 18.5 sen while Welli was down 5 sen to RM1.1.6. Not much buying of Welli today. I think they know - sudah celik that the timing is not right for a price boosting announcement.

The afternoon is awaited and the chances of a good bull market run scenario is most remote.

Heartsong

2007-08-12T23:10:00.000+08:00

More Fires on Monday?

Wall Street reduced losses on Friday because of the blood transfusion exercise into the financial system. News that central banks worldwide are pumping money into their financial systems to allay investors fears also helped. Bears retreated for a while. Will they pounced back on Monday night in New York and paw prices down again?

No one knows for sure. We are not out of the woods yet. But do not expect gung-ho strength buying. Fund managers may come in to buy some blue chips to bottom fish if they feel that the worse is contained. This will only mean that the index will remain put or incrementally better.

If Nikkei and Hang Seng perform well, Asian markets may move up. Expect situationals to sprint particularly KPS,JAKS and KHSB. Second grade blues may also jump. There will be broad based buying. This is the best scenario we can hope for.

If Asian markets play a ''wait and see'' game, the markets will be range-bound with a bias to lower prices. A weakening of the Asian barometers, Hang Seng, Nikkei and FTSE is indicative that the Dow would falter again tomorrow night. Do watch out for the futures, because they are the percussors.

Pray the market holds tomorrow.

Heartsong

2007-08-11T00:16:00.001+08:00

Looking for Noah's Ark

Oh what a day! The investors have been put on tenterhooks. They expected the worst and sold their shares by the first twenty minutes and then market started going up again. Then it settled down and went up slightly towards the close. Damage was done. So what can these investors do, if they have sold at a loss. Their only chance is to buy back when the market should fall really badly. That would be like climbing back on Noah's ark. It means Bursa must take another hit A second drubbing will be required on the true blue chips like Maybank, Public Bank,AMMB, TNB, TM, Commerz and secondary blues like the construction and oil and gas stocks. Anything is possible now with this sub-prime and yen carrying trade roiling its vengeance in tandem across the globe.

CI was down to 1287.69,losing 25.7 points. Volume of shares traded was 1.05 billion worth 1.8 billion ringgits. There was 104 counters up and 835 down. among losers were sime which lost 20 sen and EONCap;30 sen. Putrajaya Perdana put on 38 sen, GBH;29 sen and KPS; 13 sen.

Looking at the shadow portfolio,only JAKS and Metronic closed unchanged at 87.5 sen. Genting lost 15 sen to close at RM7.45 while BJ Sports Toto shed 14 sen o RM4.82. Resorts World lost 6 sen while RCE Capital lost 4 sen to 86 sen. Welli closed down 3 sen to RM1.21.

The underlying tone of the market was weak as investors would not want to commit as it was Friday and they were also wary of what will happen to Wall Street in the near term.

Heartsong

2007-08-10T14:02:00.002+08:00

Equities Armageddon

By far, the worse cause for market meltdowns globally.

Sub-primes and the yen carrying trade-manifestations of man's greed and the reckless pursuit of systemic weaknesses of the world's financial systems. These excesses have come home and we have to face the music and to swallow bitter medicine. As the world central banks come in to salvage what is left of the dignity of financial institutions, investors world-wide turned panicky and started unloading shares from the word, ''Go.''

Let me just give a general picture of what transpired in Bursa this morning.

The initial reaction was to sell down those stocks that you have made some money. Then you sell those that you would not like to carry some more because of uncertain trading conditions for the next few days. Cash is king and so you convert.

The performance-not really big fall. Some sell-down of blue chips caused the index to fell on the initial hour. Then market stabilised and bargain hunters came in to reduce losses on most counters. The true blues were not too bad. Let us look at some of them at the end of closing day.

True Blues

Maybank lost 40 sen
Commerz lost 40 sen
LPI lost 40 sen
EONCap lost 30 sen
DIGI lost 30 sen
Public Bank lost 20 sen.
Hong Leong Bank lost 15 sen

Second Grade Blues:

KNM lost 22 sen
Sime lost 20 sen
TNB lost 20 sen
Tanjong lost 20 sen
TM lost 15 sen
Proton lost 15 sen
UEM World lost 18 sen
DRBHicom lost 12 sen
YTL lost 40 sen
Gamuda lost 15 sen
MRCB lost 9 sen
Zelan lost 20 sen
Pelikan lost 27 sen
YTL Land lost 11 sen

I expect market to slide perhaps towards losing 30 points as more bad news filter into the market. As today is Friday,expect more selling in the last hour or so.

The market appears weak though situational water-play counters have once again run ahead in anticipation of a recovery this Monday. A pre-matured indicator?

The determinant factor will be how Dow Jones fare tonight. If Dow makes a small loss or a small gain, its effects on world market will be neutral. Then there will be hope for Bursa. Otherwise it will be the same fate that we will face as the day dawns on 13 August 2007.

PS: Market closed down 25.7 points to 1287.69 today.

Heartsong

2007-08-09T22:53:00.001+08:00

Timing May Be Wrong Again

This morning break-out for Welli was certainly telling by the volume done and the number of block deals.

Roughly, we see:

Two huge blocks of 1000 lot sizes
One block of 600 lot size
Five blocks of 500 lot size
Eight blocks of 400 lot size
Twenty blocks of 300 lot size
Sixty blocks of 200 lots
One hundred and Eighty-Five blocks of 100 lot size

That means big buyers particularly those in the know are collecting Welli dirt cheap.

Tomorrow is Friday and they have bought their fill. So they will allow Welli to fell tomorrow since Dow Jones will definitely be down and Friday is no buyers' day.

I really do not know whether Rashid Tang has any share-price boosting corporate news to announce urgently tomorrow. If they have and want too, it certainly will be the worst time to do so.

Meanwhile enjoy the loveliness of Nicole Kidman in that beautiful gown..........

Heartsong

2007-08-09T18:18:00.000+08:00

No More False Start, Please

It was well-staged. Spread a rumour that a Chinese machinery company is buying a chunk of Welli stocks at RM4.00, and the market freaked out. The stock was chased up until RM3.20 on heavy volume buying with obviously churns by helpful syndicates. When queried by SC, the company played down the rumour saying they were uncertain who among the shareholders were selling. The stock plummeted to RM2.00 and floated around that price.

However, when the company was about to issue their 2006 Annual report and First Quarterly Report 2007, they were requested to refrain from releasing the reports because of dubious receivables. The shares of Welli fell to RM1.20 level.

Then news of the Hadhari Cattle Industry buying over 19% of Welli stocks hit the market. The shares was once more feverishly chased up to RM1.91. It settled at the RM1.70 level. The latest news of Welli buying over Dashi Chifeng shares in China as well as signing an agreement with the Inner Mongolian authorities to participate in gold mining, new town development and construction of tolled road businesses did not move the counter.

Slowly by attrition bargain hunting, the shares were eroded to the RM1.20 level. Then the sub-prime imbroglio hit world markets for 9 days. Welli went down to 99 sen.

Today, despite a sliding market. Welli held its own to tack on 12 sen to RM1.24 on heavy volume. Is something in the works? Some good news is definitely going to be announced very soon and those in the know are busy collecting them yesterday and today.

Will Welli break out and never look back? I hope so.

Heartsong

2007-08-09T17:38:00.001+08:00

On the Afternoon Watch or Sitting Ducks?

The morning showed some buying strength. A follow through is needed to bring more buyers into the market. This will allow other pale blues with good PERs to attract buying interest and the broader market to be further strengthened.

Afternoon was a washout. Most stocks slided, some tumbled. At the end of trading day, index was up 6.2 points to 1313.39. Losers thumped gainers 493 to 427. Volume of shares was 1.2 billion valued at RM1.5 billion. Gainers were as usual Muhibbah, Tongher, Digi, IOIProp, Gamuda and Pelikan with gains ranging from 25-60 sen. Losers were F&N,LPI and Nestle; all losing 20 sen each.

Portfolio performed mixed because of late sell-down.

Only Welli survived with a 12 sen gain to RM1.24. Volume is high. The game will begin soon.

Genting(RM7.60); BJ Sports Toto (RM4.96)and Metronic (19.5 sen)managed to hold on to their overnight levels.

RCE lost 0.5 sen to 90 sen while JAKS limboed down the stick to 87.5 sen,losing 3 sen

Tomorrow is anybody's guess. If Dow holds, market may be incrementally good. If Dow get snowed down again, its thumbs down and fall we will...........

Time for a beer with Homer....

Heartsong

2007-08-09T12:45:00.001+08:00

Gathering Strength

We have a more rationale opening this morning. The rush hour was more tamed. No rush, just a fast brisk walk for situational stocks. As always they slided down after the initial buying anxiety and excitement.

There was more widespread buying of pale blues. Market ended 12.92 points up to 1320.09.Volume was at 703 million shares worth RM1.65 billion. There were 584 gainers compared to 230 losers. Among gainers were Muhibbah putting on a solid 65 sen, Tongher, 50 sen, Gamuda;40 sen and Pelikan; 26 sen. Losers were F&N, LPI and Tenaga with a 10 sen loss each.

Let us see how the shadow portfolio did?

Surprisingly, Welli swam up to breathe in 14 sen to RM1.26 on heavy volume trading.Some big lots buying from 500 to 1000 is seen. something good is about to be announced by Dr. Rashid Tang in the near future. Will it go up in the afternoon? Only God knows.

Our two gazelles, RCE and JAKS spurted forward. They are short distance runners and have taken a rest because of volume buying by weak holders who are often ready to dump for a quick profit. Our gazelles has to run many short races to go up. They will fly with a bang like Pegasus when good news comes out. RCE added 2.5 sen to 93 sen and JAKS added 2 sen also to 93 sen.

Metronic is the proverbial tortoise. Slow ans steady lose the race most of the time-lah.. So, it managed to put on 0.5 sen to 19.5 sen. Many tired holders waiting for air.

The gaming stocks next. Genting and Resorts are next. Genting finished off best to add 10 sen to RM7.60 after a high of RM7.70 while Resorts stayed at the overnight level of RM3.96. NFO BJ Sports Toto decided to go downhill by 2 sen to RM4.94.

I hope the afternoon session will show some muscle.

Heartsong

2007-08-08T19:14:00.001+08:00

Rejoice and Be Glad

If God is with us, who can be against us?

And that about sums up the spirit of the day at the Bursa. After a over cautious opening, the market tripped upwards. Finance counters first attracted fund managers especially Maybank. Slowly the buying interest spread to other financial institutions like insurance. Then it was blue chip corporates and construction stocks. The bulls have come back, a little late. But better than never.

The situational second liners, as usual, ran ahead, picking up gains on heavy buying by retailers. Most closed at the highest of the day especially KPS, KHSB, JAKS and RCE. At the end of trading day, the CI finished off best at 1307.17 , up 17.04 points. The volume of shares traded was 1.189 billion valued at 1.73 billion ringgits. Gainers led losers 850 to 104. Among gainers were Muhibbah which clinched 65 sen;Sime Darby upped 60 sen, LPI rammed home with 50 sen, Naim with 50 sen as well and SAAG with 40 sen. Losers were MPI,Tanjong,Opus and Digi.

Shadow portfolio analysis.

Yes, as expected all gained but Genting, Resorts and Metronic were off-best.

Genting(RM7.60), Resorts(RM3.96), BJ Toto(RM4.96) and Welli (RM1.12) added 10 sen each. JAKS jumped 9.5 sen to 91 sen, RCE hopped up 8 sen and Metronic managed a 0.5 sen gain to 19.5 sen.

With God's blessings, grace and mercy, Wall Street should perform tonight and we can then see good market action on Bursa tomorrow.

Amen.

Heartsong

2007-08-08T14:22:00.001+08:00

AMAZING GRACE

The good Lord answer the prayers of those in need.

He has answered our prayers for Bursa and there are strong indications that the buying pulse is stronger this morning session. Blues are being sought out including second level blue chips. Good indication funds are back.

Situational stocks are being bought ending at their peak levels. KPS and JAKS are fine examples.

The CI got back 12.12 points to push the CI above the psychological 1300 points to 1302.25. Gainers thumped losers 641 to 168. Volume was heavy at 5.6 billion shares worth 8.6 billion ringgits. Looks like the market is coming home.

Gainers were Sime taking in 35 sen, Muhibbah;30 sen;Dutch Lady milking back 30 sen and Equine galloping forward to seize 25 sen. Losers were Opus sadly losing 32 sen, KNM slipping off 12 sen and TM which lost 15 sen.

The shadow portfolio went green suite.

Genting up 15 sen to RM7.65

Resorts gambled and won hands down 8 sen to RM3.94

RCE took in 6.5 sen to 89 sen

BJ Sports Toto took in 6 sen to RM4.92

Welli came up for a breather and add 3 sen to RM1.05

Metronic telemetried 0.5 sen to 19.5 sen

Now, let us see a scenario where the market holds to better. Blue chip buying is anticipated to push the CI further.

May God continue to protect us against the forces of evil pushing down prices and causing human misery....................

May the sub-prime and the yen carrying problems be resolved with the grace and mercy of God Almighty.

Heartsong

2007-08-08T10:59:00.001+08:00

An Anaemic Response

Well, I am proven correct again. Bursa is still extremely weak as the excesses are removed from its system. Until it is adequately cleansed, do not expect Indiana Jones performance.

And what are these excesses? Who caused it?

Intrinsically, the CI is to be blamed, it has too few counters, just like the silly Dow index which has 30 stock counters. This should be reviewed to include more counters. Secondly it must be more representative. If Dow is, then Bursa isn't because Dow can really go up and down but Bursa's CI can only go down like gravity.............

Who caused it? GLC fund agencies and local mutual funds that's who; pushing it sky-high to compensate for lost time to catch up with other global markets and in the process overdoing it. Other than the 100 stocks in the CI, the rest hardly moved except for situational stocks.

This morning, it moved up about 9 points but slowly it faltered. It is now at 1294.98 up 4.85 points. Some buying of finance stocks are noted. Moderate rise; no rebound. Second liners spurted and spluttered downwards losing half of their gains.

Volume of shares traded was 290,000 lots valued at 4.2 billion. Gainers were ahead by 414 to losers-235. Taking the lead in gainers were BAT with 75 sen, Maybank;20 sen and Genting and Gamuda; 15 sen each. Losers included Opus down 32 sen, Tanjong declining 30 sen as well and KNM; 20 sen.

Shadow portfolio:

Genting- good-went up 15 sen

Resorts added 4 sen to RM3.90

RCE tacked on 2.5 sen to 85 sen

JAKS added 1.5 sen to 83 sen

Metronic added 0.5 sen to 19.5 sen

BJ Toto was at iits overnight level of RM4.86

Welli bottom fished at RM1.01 losing one sen.

Do not have high hopes for the afternoon trading session unless some miracle happens.

Heartsong

2007-08-07T17:39:00.002+08:00

Investor Frustration

Wall Street's going down is just an excuse for the excesses of the Bursa. It may have gone too high too fast especially those blue chips. So our CI is an artificial benchmark that needs to be reviewed so that it will represent all sectors and also be weighted fairly. I believe it is not.

So the market decided on its own. When Asian markets rallied, it slink away with Singapore and Hang Seng and put on one lousy performance today. The CI finished 0.77 points down to 1290.13.

Sellers came in to batter prices in the afternoon and before you know it we were in minus territory. At the close 1.2 billion shares changed hands worth RM1.9 billion. Loser thumped gainers 696 to 247. Gainers included MPI which rose 50 sen;Shell whch tacked on 50 sen as well; Digi which rang in 30 sen and TNB which lighted up 20 sen. Those who lost were Muhibbah by 70 sen, United Plantation by 50 sen and Sime and IJM by 30 sen each.

The shadow portfolio had only one winner. NFO BJ Toto which gained 6 sen to RM4.86. A true defensive stock. Even Genting was battered down to RM7.50 (overnight close)while Resorts lost 4 sen to RM3.86. RCE stood firm losing half a sen to 82.5 sen while popular JAKS lost 3 sen to 81.5 sen. Welli is still bottom sea fishing at RM1.02, losing three sen.

A most frustrating day for investors. You just do not know what to do. To buy, to sell, to stay put on the sideline. Every decision could be a painful one if the market turns awry.

So we let Dow Jones to play Dear Leader again and sucker up to it tomorrow.

Heartsong

2007-08-07T13:00:00.000+08:00

International Donor Market

Well, the market was totally not satisficing. It was weak all over and there was absolutely no confidence to buy.

Yes, we are an international donor market. When shares rise overseas, we oftentimes do not respond. When shares fell overseas, we react. So, as you can see, we cannot benefit from world market rises but we give up billions when overseas stocks goes down. We call such a market-a sucker's market. Bursa is a sucker's market. It has no backbone and it cannot rally. It is no leader as well anywhere, globally, regionally or even in its own backyard.

Started out well by clinching 21 points, it fell by the wayside like a beggar to end 9.08 points higher by the noon close. The CI was 1299.98, a cat's whisker away from 1300. Volume of shares traded was 611 million shares with a total worth of 1.8 billion. Losers were ahead of gainers by 425 to 369.

Gainers were led by Digi; up 40 sen,Pelikan up 22 sen, Tanjong; 20 sen and PetGas; 20 sen and Berjaya Cap;16 sen. Loser were Guthrie going down 30 sen, Stemlife losing 25 sen, and Cima dropping 20 sen.

Except for Genting and BJ Toto which made a gain of 10 sen and 4 sen respectively , the others were at their overnight levels or lower.

Resorts was at its overnight level of RM3.90 and Metronic at 20 sen.

JAKS went down by a sen to 83.5 and RCE by 1.5 sen to 86 sen

Welli lost 3 more sen to RM1.02

Let us see if there are going to be magic moments in the afternoon.

Heartsong

2007-08-07T08:56:00.001+08:00

Technical Rebound Expected - Will It Satisfy???

So Dow Jones has recovered dramatically. Upped 286 points. Led by financial stocks that got their best prices ever. Deal making continues. The sub-prime issues seems to recede into the background momentarily.

So what will be in store for Bursa? Can we start at 22 points up just like we started 22 points down yesterday morning? Then we should work our way back to recover the other 22 points throughout the day. Do local funds have the muscles to do it? And the courage?

Let us watch the Bursa Saham KL drama unfolds............

Heartsong

2007-08-06T17:30:00.001+08:00

No Bulls, only Bullshit!

The CI went down to 1290.9, down 44.5 points drop. There was no saviour. As generally expected, it free-fell. Volume of traded shares was 1.3 billion worth a value of 2.1 billion. There were only 60 gainers compared to a whopping 1,016 losers. Among gainers were JTInter which gained 26 sen,Carlsberg up 14 sen and Cepco up 12 sen. Among losers were Digi, Muhibbah and Bank of Commerce.

Stocks in the portfolio fare very badly. Genting eased off 25 sen to RM7.50; Resorts World went down 16 sen to RM3.90 and BJ Toto skidded down 4 sen to RM4.80. RCE dropped 6 1/2 sen to 87 1/2 while JAKS lost 9 sen to 84.5 sen. Welli plummeted another 6 sen to RM1.05, about the lowest for the year. Metronic lost a sen to 20 sen.

To bring back the market we need a stampede; be it bulls, wildebeests or pegasuses!

Heartsong

2007-08-06T15:16:00.000+08:00

Sub-Prime is the Albatross!

The afternoon session is as dreary as the Sea of Sargaso.

As for the Ancient Mariner,
Instead of the Cross, the Albatross
About His neck was hung

Bursa is in that state and yet it was not Bursa who shot the albatross with the crossbow. As the albatross hung, Bursa bleeds blood. The knock-on effect is going to be tremendous, wiping out billions in ringgit values from the retailers to the mutual funds. That is the way of the world. The world of high fidelity finance. What an oxymoron when domino-like markets fell in tandem due to some greedy sub-prime profiteering and hedge fund leveraging that went wrong i n the US.

At 3.30pm, Bursa is fully mired in red ink, losing some 40 points. There is as yet no indicator of broad-based buying support from international and local funds. There are some indication of bottom fishing but it needs to be sustained to have the desired effect.

We await the closing bell.

Heartsong

2007-08-06T12:38:00.000+08:00

Burning Hell

As expected, Bursa fell like tenpins. Greatest rout in a long time, taking the index below 1300 to 1298.01. Lost 37.4 points at the morning close.

The market was marked down a couple of shades because of widespread panic. Almost all counters turned red. Maybank was yellow, supported by some funds, I suppose. Losers included DIGI down 80 sen, BAT; down 75 sen, Commerce down 70 sen and Muhibbah; 60 sen. Gainers were Opus up 14 sen;Merge; 8 sen;Cepco up 6 sen and Ipmuda up 7 sen.

My shadow portfolio was bathing in curry mee. All capitulated and did the limbo rock.

Genting- the house loses 15 sen
Resorts- sailing down by 16 sen
BJ Toto- holding tenaciously at RM4.80, losing 4 sen
Metronic in defensive automode; dropped a sen to 20 sen
RCE lost some 6.5 sen to 87.5
JAKS down 7 sen to 86.5
Welli submerged to RM1.03

Let us see whether market will rebound 50% in the afternoon session.

Heartsong

2007-08-06T08:03:00.001+08:00

Expect one of a hellish roller-coaster ride today.

Obvious reaction of the panicky and unschooled in the mechanics of the stock markets-dump shares and buy back again when it falls. Good if you have a re-entry strategy;better if your can rightly time the market.

Today's mood will be sombre. I expect panic selling from the word "Go!" especially from those who had enough and would not want to get their fingers burnt.

If you are saddled with many trading stocks, perhaps it is wise to let go of some. Follow the dictum, "win some and lose some". When market stabilized, bargain in at a cheaper price. Do not chase because no one know what weapons will be unleashed by Wall Street tonight.

If the market fell in reaction to the Bears Stearns conference call, then very likely it will rebound tonight. If more dirt is coming out of the sub-prime hedge fund imbroglio, then expect Dow to go south some more.

Since the world economies continue to be robust and US contribution to it is only 20% while the rest are fetching something between 6 to 10% annual growth rate, we should allay our fears that the world is not heading towards a depression.

There is no bubble as the transformation of the communist bloc into free economies have gobbled up a lot of world commodities. US companies which are global are reaping from this phenomena and this is showing well on their bottom-line. So the world is not in a recession mode yet. The money made on the world bourses are real.

Back home, the only concern is unemployment. Some inflation, perhaps but otherwise it's fair weather. With the pump-priming efforts of the government in the 9MP particularly the 2H of 2007, there should be no cause for alarm that our markets will go into an extended bear phase.

I expect the bulls to be back once the US can see its way out of the current sub-prime milieu.

Heartsong

2007-08-05T14:18:00.001+08:00

Like Sheep Being Led to the Slaughter..

Wall Street went into manic selling again last Friday. It was the worst trading day this year, surpassing the February sell-down.

Dow went down 281.42 points again spooked by Bear Stearn's late conference call that "its return on equity in July may be close to the lowest ever and borrowing costs may slow mergers and acquisitions." Almost 12 stocks fell for every one that rose on the New York Stock Exchange as all 24 industry groups in the S&P 500 and all 30 members of the Dow fell.

Briefly; the factors that brought the US market down big time were:

The continuing sub-prime mortgage debacle
The continuing poor housing property market
Fall in energy stocks as world oil prices fell
Lower job creation compared to July forecast
Slow growth in U.S. service industries
The highest fall of the dollar against the euro in a month.

The world markets now await to see how disastrous will be its effects on their local markets.

Its definitely going to be a temporary bear season. So do not get into second-level fundamental stocks now. Stay out until the US market regains some semblance of confidence. Let them move up in positive territory for a few trading days on good volume. See whether US bonds has move downwards. Have Asian markets move up, disregarding Wall Street or are they still pups to the mother ship Wall Street? Look for confidence-building write-ups on the business pages.

Strategy:

Watch situational stocks such as oil and gas stocks, water play stocks, IDR and NCER stocks. Buy some if they free-fell and lock them up for a couple of months if the shares don't rebound. If the rebound comes, dump them and take profit.

Heartsong

2007-08-03T08:52:00.001+08:00

A Hundred Million Smiles....

An international ovation for the late Sudirman when he sang in London. He sang A Hundred Million Smiles. He made Malaysians proud. We would love to bask in that spirit once more. We would love to have that joy of winning.

Will bursa be a winner just like the late Sudirman? Of course, it can. It must keep its head high. It must show fortitude and self willingness to move ahead regardless of what the skunky Yankees do with their sub-prime or those sake drinking Japs do with their boring yen carrying fiasco.

Anyway, the Dow put on 100 points. The issue is the bulls won hands down all day in New York apart from some brief intervals of calculated retreat.

How do you think Bursa will react? Hang Seng will go up and so will Nikkei today. We must do so as well.

So fellow readers-watch the market and see whether fund managers flock in to buy or are we going to be left high and dry again.........

Heartsong

2007-08-02T15:56:00.001+08:00

The Bear Clobbers the Bull Again

We have prayed for the market to come home. We have seek mercy from God. Now we wait.

A friend told me to watch the market from 4 pm to 5 pm because this last hour can see mass buying or chunky dumping. It all depends of the fund managers as they read the market signals amidst the noise that they are hearing.

The sub-prime mortgage is one never-ending story. Now the additional noise is about the yen carrying trade. Perhaps that's what the stock market is all about. Be able to pick winners and timing entry and exit for profits amidst all the jangling and jarring "noises" in the marketplace.

The morning trading was a complete washout. I believe blue chips were sold off by some funds. This abated in the afternoon. Trading was dull and listless. No strong buying. Mostly attrition buying. Prices are falling off.

My shadow portfolio suffered. I will do the analysis after the 5 pm close.

Market closed at 1333.28, losing 6.2 points. Losers whacked gainers 655 to 292. Volume of shares done was 1.46 billion valued at 2.1 billion ringgits.

My portfolio when market day ended.

Genting added 5 sen to RM 7.90
Resorts added 4 sen to RM 4.08
JAKS added 2.5 sen to 93.5 sen
Metronic lost a sen to 20.5 sen
RCE lost 2 sen to 93 sen
Welli lost 4 sen to RM 1.12
BJ Toto lost 6 sen to RM 4.84

Market is consolidating and if Wall Street is generous tonight, it should advance tomorrow.

Heartsong

2007-08-02T13:17:00.001+08:00

Give us Grace, Give us Mercy

After today morning's further slaughter, only one thing left for us to do. Pray.

Pray for grace from the Lord and pray for mercy.

Appease him with prayers so that the red tide will turn green with promise in the afternoon trading session.

Temper our greed. When the opportunity to sell arrive, do not be greedy, let go of your stocks with a song in your heart and a smile on your face.

Otherwise, you kena like this morning..

Those who rushed in where angels fear to tread all got slaughtered. After that, the market held steady and then some funds sold down index stocks. Market then got into a tailspin and the whole market fell like a house of cards.

Small investors need protection. The gentle kind. Like the picture above, the tiny squirrel loves the TLC from good ole giraffe.

Heartsong

2007-08-02T10:22:00.000+08:00

SONG SUNG BLUE

Neil Diamond 1970's hit song encapsulate the spirit of this morning opening. Yes, it tried to run in the morning rush but by 9.20 most counters started sliding down. It must consolidate before it can move up. The double dip on Friday and Tuesday was catastrophic, to say the least. I think many punters lost their trousers and are licking their wounds. They would not be in the market at least for sometime until they develop Dutch courage again.

So, today will be a true blue day. Only fundamentalist driven players will be browsing the counters and picking as they come across some new nugget of re-rated stock.

At 10 am, index was 10 points up at 1349. Losers trailed gainers 99 to 575. Volume was 308 million shares worth 1.43 billion ringgits. Gainers were DIGI, up 60 sen, RHBCap moving up by 40 sen and Commerce and Bursa tacking on 20 sen each. Losers included Etitech which lost RM1.56 and BAT which gave up a ringgit. DFZ lost 29 sen and Tanjong; dropped 30 sen.

Now, looking at the shadow portfolio, we see tired stocks. No stamina. Ran up the hill but now resting a few shades higher. Popular JAKS got out of the box and headed for the hills touching 98.5 sen. Like Aesop's hare, it then snoozed comfortably at 94.5 sen. There were some huge blocks (1000-3000 lots) buying at the 96-97 sen band. Should move up once consolidation completes.

Genting added 15 sen to RM8.00 and Resorts was at RM4.14. BJ Toto added 6 sen to RM5.00 while RCE moved up 2 sen to 97 sen. Welli up 2 sen as well. Metronic tacked on half a sen to 22 sen

All shares trade off best at this hour.

Let us see how they will fare at the 11.00 witching hour.

Heartsong

2007-08-02T08:34:00.001+08:00

Are the Bulls Back or Is it All Bullshit?

Talk about the local market and you get sick in your stomach. For one thing, this dang stock trading are interlinked because of cross national trading. Some risk taking provider could not get what it lent out and the world almost topples on its head. Myopic but true.

So Wall Street has got back all it lost on Monday. Will Bursa get back beyond 1370? Let today unfold to show whether we are a bull or a jellyfish.

Rush Hour 3 just opened up in US. Chris Tucker is making it big with his gargantuan mouth. In about twenty short minutes Bursa will open. Rush Hour 4 will start and stampede for about maximum 20 minutes and then market will find its new level. Unless the bulls really are back and willing to toss the prices up all day. Expect the CI counters to be blown way by Khazanah, EPF and all those Mat Rempit funds.

The jury is out on this one until 5 pm. We await the verdict.

Heartsong

2007-08-01T17:30:00.003+08:00

This One's for the Bears!

Mark it down in your diary. By far the worse trading day of 2007. Even Moses would find it difficult to pass through this Red Sea with the bears in hot pursuit.

Global Economics-that is the name of the game. One screw up in the Great USA and the world gets influenza. They have fun and we get AIDS. And so it is with Bursa KL. When will this sub-prime problem come to an end? Is it going to be a perennial issue and we have to dance the cha cha to its troughs and dips? Bursa hardly got back on its feeble feet from Friday's blitzkrieg and yesterday it performed but platonically without joy. Today it is again taken to the slaughterhouse to be lynched. Silence of the Lambs. But why-lah, pray tell ?

The Composite Index got a drubbing of its life, losing at one time 44 points. Little comfort though, when it ended down 34.22 points to 1339.49. Cigarette manufacturer, BAT had a good smoke finishing well ahead by 77 sen. Remotely heard Timwell took on 32 sen and MISC sailed up with 25 sen. Elsewhere PetronasGas burnt bright adding 20 sen. As forecasted, Tanjong also rode in with a 20 sen gain. Losers-take your choice-lah... DIGI phoned in with a 60 sen loss and RHBCap wrote-off 50 sen. Elsewhere SPSetia deconstructed 50 sen and so did SAAG.

Potholia is now the nomenclature for stocks held in my purview. Sucks big time, most of them. Let us tengok-tengok and jeling-jeling them.

Resorts World takes the gold medal, losing 12 sen.
Genting took the silver medal with a loss of 10 sen.
The third place bronze medal was won hands down by Jumping Jaks Flash,losing 9 sen.
First consolation prizes were presented to Welli, RCE and BJ Toto, all hilang 8 sen.
Losing one sen was Metronic-Global at 21.5 sen. The bulwark was broken again to 21 sen. We will have to give you a participation certificate sahaja-lah since you did not finished too badly;only a small bruise on your little finger.......

Cry,baby,cry. Will you cry again tomorrow and the day after that?

Is it the beginning of bear season spooked by the sub-prime mortgage monster?

Have we come full circle since the meltdown of 2007 as we see the West mired in its own financial Sodom and Gomorrah? Must we pay big time for their follies?

Quezas,quezas, quezas.........

Heartsong

2007-08-01T09:36:00.001+08:00

Monkey Business As Usual

The sub-prime mortgage is taking centre stage again. Some funds are giving way to liquidation. Concerns are that other funds might do likewise. This has caused the silly guru index Dow to lose 150 points. Looks like its bear mating season now and the monkeys have taken over Wall Street.

So you still wanna play stocks with the monkeys and bears. Think twice. Cash is king.

If this sub-prime keeps popping its head up every so often, best not to play even intermediate term.

Best mode: pun, make some pocket money and flee until the sub-prime pops up again. Play this game. A few select counters will do.

Today, Bursa went weak in the knee and dropped its pants; lost 8 points. Trading mood; mostly over cautious. Like angels, they fear to tread lest their wings get clipped.

I believe the market is in an undecided mode and mood. Look at stocks that are consolidating, glanced at their trading profile for the day before taking a position.

Portfolio stocks analyses.

JAKS, along with KPS and KHSB is trending upwards. It means there is still hunger pangs out there and sufficient pent-up interest left to move this counter up. Observe it carefully as there are collection blocks above 1500 lots to one block of 2800 lots. This is no small game. These buyers know the calculated risks. Generally alot of retail trade about 50 lots and below. Firming up quite well to add 2 sen to good volume.

Genting is better by 5 sen. Nothing to shout about.

The others are off their overnight by a shade or two. Going down slowly is Resorts, perhaps treasury buying rather than supporting.

Heartsong

2007-07-31T18:00:00.000+08:00

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

2007-07-31T13:36:00.001+08:00

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

2007-07-31T08:51:00.000+08:00

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

2007-07-30T18:22:00.000+08:00

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

2007-07-30T17:54:00.001+08:00

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

2007-07-30T13:14:00.001+08:00

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

2007-07-30T10:33:00.001+08:00

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

2007-07-29T18:17:00.000+08:00

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

2007-07-28T17:00:00.001+08:00

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

2007-07-28T11:18:00.001+08:00

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

2007-07-27T23:32:00.000+08:00

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

2007-07-27T17:29:00.001+08:00

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

2007-07-27T08:21:00.000+08:00

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

2007-07-26T23:03:00.001+08:00

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

2007-07-26T16:46:00.001+08:00

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

2007-07-26T09:50:00.001+08:00

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

2007-07-25T22:22:00.001+08:00

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

2007-07-25T12:32:00.000+08:00

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

2007-07-25T11:24:00.001+08:00

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

2007-07-25T10:29:00.001+08:00

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

2007-07-24T17:59:00.001+08:00

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

2007-07-24T17:35:00.001+08:00

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

2007-07-24T12:48:00.001+08:00

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

2007-07-24T09:33:00.001+08:00

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

2007-07-24T08:48:00.001+08:00

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

2007-07-23T23:09:00.001+08:00

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

2007-07-23T21:31:00.000+08:00

A Chop-Suey Finish

Well 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.

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.

Heartsong

2007-07-23T12:42:00.001+08:00

A Good Follow-Through Finish

So, what do you know?

Market went into positive territory as Quasimodo rang the bell.

CI finished up 2.8 points to 1385.10 and gainers outdid losers 428 to 417. Volume of shares was 8.1 million while value of stocks done was 1.1 billion ringgits.

So let us see how the portfolio ended up.

Resorts did splendidly with a gain of 22 sen to RM4.44 on a volume of 34 million shares. Genting was so much better today as it moved up healthily to RM8.35, adding 25 sen. Another 35 sen and it will be back to RM8.70, its price before it was shot down. KPS sprang wings and took flight and is now sitting on the price level of RM1.80. Hope it stays there this time while we wait for the water-play to begin... JAKS was 0.5 sen better at 84sen. Looks like it is ready to leap to 90 sen soon. Metronic and AMDB are at its overnight level while Welli is now scuba diving at RM1.33; losing 3 sen in the process. Taliworks is not performing well after the last corporate news of the SILK Highway takeover. It slumped 9 sen to RM2.07.

So let us watch the afternoon session and see whether magic is in the air.

Heartsong

2007-07-23T12:24:00.000+08:00

KPS-MORPHING INTO THE SULTAN OF WATER

According to Rachael Kam of THE STAR, a German-based chemical company has bought a stake in local water treatment company, Chemindus Sdn Bhd.

Sud-Chemie AG, a listed company in Germany, has not only acquired a 55% stake in Chemindus but it has also bought the company’s technology for the manufacture of specialties coagulants which are used in water treatment plants. Hydrovest Sdn Bhd, a subsidiary of Kumpulan Perangsang Selangor Bhd owns 25% of Chemindus Sdn Bhd while founder and Managing Director Tan Swee Hua now holds the balance of 20%.

Established in 1992, Chemindus produces aluminium-based coagulants and supplies the water treatment chemicals to the local market and those abroad. The company’s laboratory is equipped with high-tech analytical equipment. Chemindus’s vision is to be the leader in water treatment technology. Its chemicals are versatile and good to remove water impurities. It is setting its eyes currently on the rapidly growing market for potable water and industrial effluents treatment in South-East Asia.

For Sud-Chemie AG, buying into Chemindus has given it access to a promising market for water treatment chemicals in Malaysia, and this represents a part of the ongoing expansion of its water treatment business in South-East Asia.

Tan, foresees good prospects for Chemindus because Sud-Chemie would bring in innovative technology and operational techniques as well as provide high-tech water treatment solutions. The enlarged entity, resources and various technologies from Germany would allow the company to expand to areas that it is not involved in currently. Chemindus aims to grow at a fast pace to become South-East Asia's biggest water treatment supplier in three to five years.

Water treatment and wastewater management will remain the core business of Chemindus. Its polyaluminium chloride-based coagulants have captured a market share of over 50% locally. Following the increase in water consumption, the demand for new water treatment chemicals is also rising.

Chemindus is poised to grab a bigger market share. Tan said the market for treated potable water supply in the region would continue to grow, because in certain countries, treated water supply is still limited. Secondly, the demand for premium quality treated water supply will continue to grow.

Tan informed that the company intends to build another plant by year-end and Selangor would be ideal if the State Economic Development Corp has available land bank for the plant. Other sites under consideration are in Penang, Perak or Johor.

A graduate of the University of Malaya, Tan started the business together with his former lecturer, Professor Dr Chan Chee Yan, who is Chemindus technical advisor. From a rented factory lot in 1992, the company now owns eight lots with a total built-up area of 40,000 sq ft. The plant has recently doubled its monthly production to 4,000 tonnes. Its products are exported to Indonesia, Thailand, Japan and South Africa. Currently, exports contribute a substantial amount to the company's revenue.

“With the new partner and expanded capacity, we will export to more countries and will set up operations in strategic countries in the region within the next few years,” he said.

Another feather in the cap of KPS. Looks like KPS is really targetting sultan status in the country’s water resource industry and perhaps beyond….

Syabas!

Heartsong

2007-07-23T11:36:00.001+08:00

Good Day for Gamblers

Market shrugged off any overseas influence to trade marginally lower at the opening bell. It closed down 0.37 points to 1381.99. Volume was low as we move into the midst of the witching hour. Some 6 million shares changed hands. Value was 827 million ringgits. Losers beat gainers at 426 to 352. About half a million shares traded were Resorts World and Resorts-CB.

Gainers included BSDProp, UMW, Tongher and DIGI while losers were IOIProp, Lion Diversified, SunCity and Tanjong. Mostly property stocks.

Except for Resorts and Genting, most portfolio stocks receded into negative territory. Welli took top spot by bungee jumping another 6 sen to RM1.30. JAKS slided 2 sen to 83 sen while RCE lost 3 sen to RM1.03. Staying at their overnight levels were KPS, BJ Sports Toto, AMDB and Metronics. Taliworks lost 5 sen to RM2.11.

Meanwhile, Resorts World added 22 sen to RM4.44 while Genting added 25 sen after falling the last 5 trading days on suspected price suppression.

The market appears to be resilient at this unearthly hour. If it can pace itself through the next hour, it should solidify a base for an afternoon run to put the CI in positive territory.

Heartsong

2007-07-23T08:06:00.000+08:00

Last Week's Round-up

I am posting Chap Ayam Market Research Report here to show how the market did last week as well as what are his predictions for this week.

On weekly basis, Malaysia shares expected to extend gains next week, possibly test all-time high of 1391.57 after ending +0.4% at 1382.36 in moderate volume; market breadth remained positive with gainers beating decliners 549 to 305. Both local and foreign funds were accumulating a range of blue chips and index-linked heavyweights. The ringgit's strength against the U.S. Dollar was a major contributor in attracting foreign fund. Speculation of FX trade liberalization cited as core reason for ringgit's strength; USD/MYR at 3.4140 late vs. 3.4520 late Thursday. However, going forward we are still lack of major catalysts. We're still in a consolidation mode right now pending the August earnings reporting season. The market's upside trend for the next 12 months remains intact.

I think barring sharp reactions to Wall Street, market will at best inched upwards in a rolling fashion, some day up and some day down, ending this week in plus territory. Volume indicator signify market broadening and more retail involvement.

If it is true that foreign funds are here chasing ringgit denominated stocks particularly index-linked blue-chips because of the potential strength of the ringgit, then the additional liquidity will b good to high-tail the market beyond the 1391 resistance level currently in the way. It may also move beyond 1400 on an intra-day high but perhaps may not maintain itself at that psychological level.

Let us see how Chap Ayam's predictions pan out.

Heartsong

2007-07-22T09:43:00.000+08:00

Resorts World Berhad:First Treasury Buy-in

Friday (20 July 2007) was a historical day for Resorts World. This was the first time the company initiated its Treasury buy-in programme. Some 9 million shares were bought at an average price of RM4.15 each. Cost them RM37.36 million.

Interestingly, they called this buying-in the start of their capital management plan. Nomenclature aside, Resorts's Head of Strategic Investment and Corporate Affairs, Justin Leong said in no uncertain terms that this is a positive step towards enhancing value for all its shareholders. I hope they have the guts to put the money where their mouth is which I know they have plenty.

Resorts was criticised for failing to manage their surplus cash pile and we hope they will be be generous as well to give out good dividends every quarterly which I think will be good for Genting as it embarked on building up Resorts World, Sentosa Island in Singapore.

Current cash pile is at RM2 billion and expected to double up by year end 2007.

Heartsong

2007-07-20T17:39:00.001+08:00

Home At Last!

After four days in the wilderness, Bursa is home and in loving arms!

Chan Mali Chan Hey Hey, Chan Mali Chan Hey Hey, Chan Mali Chan ketipooo payung .... Jubilation. Yes, there is firming all round. Buying is more broad-based and volume has gone up to 1.6 billion shares worth RM2.2 billion.

There were good gains ranging from 30 sen upwards to 75 sen. Losses meanwhile were capped at 40 sen. Leading the gainers were Lion Diversified with a gain of 75 sen. Must be some great news here. Boustead upped 67 sen and the quiet Oriental Holdings popped up and gerak langkah with a 50 sen gain. UMW lost 40 sen, Keladi; 26 sen and Transmile; 20 sen.

Is the portfolio better in the afternoon? Except for Resorts, some gains were trimmed though. JAKS ended off its high of 85.5 sen to end at 83.5 sen, making a gain of 4 sen (Volume: 181,645 lots). KPS gained a sen to RM1.74 (Volume:50,433 lots) while RCE was again at its overnight level of RM1.05 with 45,076 lots changing hands. BJ Toto added 2 sen to RM5.00; possibly via Treasury buying. Kiasu counter? AMDB also ended at its overnight level of 39.5 sen. Tak ada support lagi-keh... Kenapa??? Merajuk...

Genting is still with the penguins losing 10 sen to RM8.10. I ''see'' a deliberate attempt to push the price of Genting down for some unknown reasons. Metronic is comatose at its overnight level of 23 sen; almost as bad as the day (9 July) it went ex-bonus. Has it become a junk stock?

Welli...Welli...Welli... you are not well at all. You have lost your trousers since the Hadhari indicative share purchase day. Pray tell me, where is your bottom now that you have lost your trousers?

Star Performer is definitely Resorts World. You are being bear-hugged and in loving arms. Macam itulah kawan. It stood firm against heavy selling pressure about 4.30 pm and then it swung back with better gains of 32 sen at the day's close. Viva Muchachos!

Let us look at Taliworks. Added 2 sen to RM2.16. Let us watch this counter as it will benefit from all the waterwork projects. Moreover 19% of its shares are held by KPS.

So all in all, my portfolio seems to be doing alright except for that penguin buddy with the unhappy feet. Hey Frodo, where are you?

Heartsong

2007-07-20T13:05:00.001+08:00

Boy, Can We Peek into Next Week as well?

Fridays are just days of inconvenience; a brief hiatus from the hustle and bustle of trading. A time to recuperate but mostly to lick our wounds from bleeding in the marketplace.

Market tried to search for its legs to stand up all morning. Familiar blue chips did not appear on the gainers' list. CI crept up 3.46 points to 1379.86, not convincing., may just give up the ghost in the afternoon session. Volume traded seems to be large by a session comparison i.e. 800 million shares trade with a value of 1.07 billion ringgits. Downers were 475 compared with uppers at 317. Leading the gainers were Lion Diversified, Suncity. LPF and AZRB while heading the losers were HSL, Tenaga and IJM.

Portfolio stocks. This is how they performed.

Genting-is fast sleeping with the penguins. Lost another 5 sen to RM8.15, a low for a very long time. Volume was 32 million shares.

Metronic-has given up and dying by the seconds- went down to 22.5 sen for another half sen loss. Tak boleh harap punya kaunter.

Welli-Still looking for its legs. Dropped further to RM1.37 for another 4 sen loss. Waiting for Godot?

RCE is sleeping after a big heave-ho yesterday. Volume is still good at 26.8 million shares. Should be moving back to the RM1.15 level in no time next week. Watch this counter go.

AMDB is better by 0.5 sen to 40 sen. Volume was at 10.7 million shares.

KPS-added two sen to RM1.75. seems to be some resistance moving beyond this point. Volume was 31.9 million shares. Should bounce up once news about the Pahang-Selangor Water Transfer project gets announced by the National Water and Natural Resources Commission soon.

BJ Sports Toto- No excuse for this counter to turn into a lame-duck. We will watch this counter closely. closed 2 sen better at RM5.00.

JAKS Resources-One hot potato. Jumped 5.5 sen to 85 sen, probably on early syndicate play ahead of the water-play. Hope the counter can move up with some momentum to touch 90 sen by this evening or early next week.

Resorts World-found its legs and rebounded 14 sen to RM4.04. Should stay there for the next step ladder move upwards next week.

Market appears to be stronger and many players have come in. I pray their hopes turn straws into gold.

Heartsong

2007-07-19T18:49:00.000+08:00

Returning Confidence

The overall market got back some of its soul by 4 pm. Blue chips were collected by fund managers which moved up the CI to finish at 1376.4, up 7.17 points. After 4 days of losses, it finally snapped back into positive territory. Share volume was at 1.2 billion valued at 2.1 billion ringgits. Losers stood at 483 counters viz winners at 456 counters. Gainers were firm from the morning bell. These include Commerce, Boustead, WCT and LCL. Losers were BAT, still reeling from the tariff hike, Green Packet, DIGI and YTL.

Most portfolio stocks also made some gains. RCE got back 6 sen to finish at RM1.05 on a gigantic volume of 85.7 million shares traded. Resorts clawed back 8 sen to finish at RM3.90 on a big volume of 264 million traded shares. KPS added a sen to RM1.73 on a share volume of 32 million.AMDB also finished better by half a sen to 39.5 sen. JAKS, traded at a volume of 9 million shares, was at its overnight level of 79.5 sen. Going south consistently without any trailing stop was Genting. It lost a further 5 sen to RM8.20. Metronic weakened half a sen to 23 sen while BJ Sports Toto collapsed to RM4.98; losing 12 sen.

I believe Resorts World will jump up in price very soon since the selling has abated. The way Genting has been pushed down is sufficient signal it is going to move up ever so quickly as well once the collectors have their fill.

An interesting day awaits us tomorrow.

Heartsong

2007-07-19T12:05:00.001+08:00

A Soulless Market

Bursa made a mild return to positive territory this morning; adding 3.3 points to move the index to 1374.93 at the morning close. The share volume was not encouraging at 530 million shares worth RM1.9 billion ringgits. Losers swarmed gainers 473 to 313. Leading the gainers were Nestle, WCT, LCL, Bursa and Commerce, The losers were Dutch Lady, Green Packet and SAAG and BAT.

On to the portfolio. Clawing back was seen in RCE which took back its loses yesterday; adding 4 sen to RM1.03. Welli added 1 sen to RM1.39 while Resorts added 2 sen too to RM3.84. Diving is Genting at RM8.15; down by another 10 sen, At their overnight level were JAKS at 79.5, Metronic at 0.235 and KPS at RM1.72. AMDB, however, lost 1 sen to 38 sen. Looks like the interest and appetite for this stock has dissipated.

Another counter to watch will be Taliworks. I will put a watching brief on the counter as Goldman Sachs has just bought into some warrants or such on this counter. Will be more definite on this after some R&D.

So right now, we can sing out the blues; ever soulless and wrenchingly melancholic while we await the creeping hours until the final bell rings out for this trading day.

By the way the market is performing;even the gods will cry for those who played and hold as well as those who pun and lost heavy in this listless market.

Condolences all round....

Heartsong

2007-07-18T22:03:00.000+08:00

Super-duper Dividends from Resorts?

There have been a couple of analyst reports on Resorts after it disposed of almost half of its share holding in Star Cruises to Chua Ma Yu.

Here is the analysis by Citigroup Global Markets Equity Research.

RESORTS World Bhd's sale of 14.02% stake in Star Cruises for RM1.17 billion cash will boost Resorts' cash reserves by RM1.68 billion to an estimated RM3.8 billion by end-2007.

Citigroup Global Markets Equity Research said yesterday Resorts' original cost of investment on the 1.01 billion shares between 1998 and 2000 was US$426.4 million (RM1.47 billion).

However, it has since written down its investment to US$248.1 million as at Dec 31, 2006. Based on the selling price of RM1.17 billion, Resorts is expected to rake in an exceptional gain of RM309.7 million.

Upon completion of the sale, Resorts' stake in Star Cruises would fall below the 20% level to 18.89%. As a result, Resorts will cease to equity account Star Cruises's profit or loss.

"We view the divestment positively as it will help reduce Resorts' exposure to the earnings volatility of Star Cruises and help remove a major overhang on the stock since Star Cruises has always been a drag on earnings.

"We are upgrading Resorts' rating from Sell (3L) to Buy (1L) and raise estimates and target price," it said.

Citigroup raised Resorts' earnings estimates by 2.5% for FY07, 9.2% for FY08 and 13% for FY09 after taking into account higher cash reserves and gaming revenue growth but removing equity accounting profit of Star Cruises.

It added that its discounted cash flow derived target price was raised from RM2.84 to RM4.80 per share after incorporating a higher share price of Star Cruises at 45.5 US cents (versus 28 cents before).

Also incorporated into the new target price were other and higher revenue growth assumptions of 14% (versus 10%) for FY07 and 10% for FY08-10 versus 4% previously.

"We are now using a high perpetuity growth assumption of 3.5% as opposed to 2% previously," it said.

Citigroup said with the sale and the substantial increase in cash reserves, Resorts' shares would continue to be driven by hopes of higher dividends. With lower exposure to the financially cash-strapped Star Cruises, chances of higher dividend are now better.

Heartsong

2007-07-18T20:47:00.000+08:00

Disappointing Finish

As predicted the market went down further at the close. CI lost 8.2 sen to 1369.23. Volume of shares traded was 1.28 billion worth RM2.17 billion. Losers outpaced gainers by 617 to 299. Gainers held steady all day especially Muhibbah, Zelan, Cepco and Shell while losers were LCL, Cheetah, Nestle and Gamuda.

Portfolio stocks performed badly. Resorts fell 6 sen to RM3.82 on the back of heavy volume of 23.4 million shares. Genting slumped 20 sen to finish at RM8.25. A total of 6 million shares were traded. BJ Sports Toto was at its overnight level of RM5.10 while Welli sank to RM1.38 for a 4 sen loss. AMDB closed lower by 1.5 sen to 39 sen while KPS lost a sen to RM1.72. Metronics also lost a sen to 0.235 sen. JAKS meanwhile gained 0.5 sen to 79.5 sen with a volume of 7.2 million shares traded. RCE free-fell 3 sen to 99 sen.

Thoroughly disappointing day but it is this kind of market day that will see strong rebound when the market returns.

Heartsong

2007-07-18T15:17:00.001+08:00

Dull Duller Dullest!

After a heavy lunch, fund managers are back and getting into their pajamas for a long siesta.

Syndicates or not, prices are falling off. This is going to be one really dog day afternoon with emptiness, hopelessness and hollowness in the air.

Like piranhas, retailers are chewing the counters down bit by bit.

The CI has fallen from the Petronas Twin Towers to 1378.09 with a minuscule gain of 0.6%. Volume is okay at 762 million shares worth 1.99 billion ringgits. Losers whacked gainers 471 to 358. Leading the gainers were Muhibbah, Lion Diversified and SAAG. The losers were LCL, Cheetah, BAT and Gamuda.

Portfolio stocks are also fast asleep. Most are swimming in maroon five ink and those which gained had their gains trimmed as well.

Resorts have slidded sullenly to RM3.84, losing 4 sen. Genting is being deserted by nervous investors falling 20 sen to RM8.25 while BJ Toto stayed at RM5.10. Metronic gave up its ghost and dropped a sen to 0. 235 sen. RCE lost a sen to RM1.02 while AMDB lost 0.5 sen to 39.5 sen.

On the plus side, KPS added a sen to RM1.74; JAKS added 2.5 sen to 81.5 sen and Welli added 2 sen to RM1.44.

Will the pricescape changed for the better when the trading session ends this evening?

Heartsong

2007-07-18T12:03:00.000+08:00

JAKS Powers Ahead

Funny, you may say. But the mentality of the syndicates just cannot be fathomed. In two lousy market days, the operated on JAKS.

Yesterday, they sold down JAKS to 76 sen for their intended springboard action today. This morning before the witching hour, the counter started moving up. It is now up 3 sen to 82 sen; with heavy volume of 4.085 million shares done. The margin of profit at 82 sen will be 6 sen and; minus the 3 sen ( maximum) for brokerage, they will make clean 3 sen per lot and then they vamoose! Good play!

Anyway, it is about time that JAKS move up in price to be on par with the other pipe makers. JAK could easily go up to RM1.20 when the Pahang-Selangor Water Transfer project gets announced and tendered. I think that will be soon.

Heartsong