Miserable Meltdown

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

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

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

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

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

Heartsong

The Morning Close

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

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

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

Retailers should be coming in numbers in the afternoon session.

Heartsong

The Witching Hour

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

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

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

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

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

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

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

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

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

Heartsong

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

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

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

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

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

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

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

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

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

Heartsong

Mama Mia! A Ten Points Jump

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

Portfolio stocks saw some good action.

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

Taliworks added 6 sen to RM2.19.

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

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

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

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

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

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

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

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

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

Heartsong

Genting has Secured 50.08% of Resorts World

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

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

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

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

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

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

Heartsong

Profit Taking at the Morning Close

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

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

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

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

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

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

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

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

Taliworks was unchanged at RM2.13.

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

Heartsong