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

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

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

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

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

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

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