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

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

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

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

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

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

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