How Can This Be True

Can anyone give me the answer why it is a hold at the corner?

Today's Market Preview (31-03-2009)

KLCI Index Has Move Sideways For 5 Months

KLCI index has move sideways for 5 months and up down in between 850 to 890. Today is the end of 1Q2009 and the crisis look like not yet bottom and Malaysia politic still hot.

Till now we still hear worker loss their job and also the wost worker advice to take leave without pay ( company did not want to pay VSS ). It show the economic is in bad condition and likely to go more worse in going 2Q2009.

Now UNMO election had end and the money already pay by using share like KNM. KNM share had hit RM0.45 from RM0.32 before UNMO election after that drop back to RM0.38 and I think it will drop more till KNM unlisted from KLCI. I had sale all my KNM share during this pay day.

After Najib become PM KLCI likely to drop to new low due to no point to supported the KLCI. Now he need to supported the KLCI above 850 because any big drop in KLCI the bring negetive effect to him, but when he become PM all his done.

I had sale out all my share and I think this is the Golden time to jump in into Gold market because now the gold price is low.

36,000 employees CIMB to consider taking up to six months of unpaid leave

Malaysian financial services group CIMB has asked its 36,000 employees to consider taking up to six months of unpaid leave as it aims to cut costs in the global economic slowdown, a top official said on Monday.

Thing is not getting good.

Today's Market Preview (30-03-2009)

Today's Market Preview (27-03-2009)

Today's Market Preview (26-03-2009)

KLCI Unlikely To Go Higher

KLCI may unlikely to go higher due to Malaysia economic is in bad situation and still not mach government had done to save it.

Last few day bounds up is due to UNMO meeting and they need a day as a pay day so they will wait for one day like all the Asia market go up to push KLCI index up.

Thing may not turn positive yet for Malaysia, I think KLCI index may likely drop to new low in this coming Apr.

Today's Market Preview (25-03-2009)

Today's Market Preview (24-03-2009)

Today's Market Preview (23-03-2009)

Gold & Black Gold Price Move Up

US dollar drop has make the oil price go up and also gold price. Now Gold price is above RM100 per gram and unlikely the price will go down below it. With the US Dollar value drop, Oil price and Gold price sure will go height and I think this time Gold price will go up like what happen on last year Oil price before the economic crisis happen.

The gold price is headed for another shot at $1,000, and may pierce this time.

KLCI Is Unlikely To Bounds Up By UNMO Election

UNMO election is about to end by this week and this time KLCI did not bounds up so government is really really no money to support the index.

I think next month KLCI index likely to drop below 700 point like what has happen during APR 1998 when KLCI drop to below 300 point.

When their is a crisis sure also will have opportunity, when KLCI index drop below 700 point ETF share will be a good opportunity to make money.

Today's Market Preview (20-03-2009)

Today's Market Preview (19-03-2009)

Today's Market Preview (18-03-2009)

Finally EPF give out 4.5 per cent dividend for its members

Finally EPF give out 4.5 per cent dividend for its members and blamed the lower rate of returns on the global financial crisis. The state pension fund had declared 5.8 per cent in 2007 when it just earned RM18.29 billion. In 2008, its gross income jumped 9.36 per cent for EPF to record its highest ever earnings of RM20 billion but we only get 4.5%.

Vary likely EPF fund have been use by government to benefit some people, get any profit they will have 1st when come to down turn EPF need to buy their useless share and we will pay the loss. I think with this dividend, I can get more in my share investment profile and if I buy gold ever months with the amount of money to EPF, I sure can get better that this.

Anyway, we only can writen in blog, thing never change EPF money we still need to paid. We vote a new goverment but they can use ours money to paid them to jump cross over.

KNM Boss Only Need 980m To Takeover Remaining 75% KNM Share

Today's Market Preview (17-03-2009)

Today's Market Preview (16-03-2009)

A Golden Oppecunity In Crisis

I have keep follow ETF in Malaysia since begin of last year. ETF is conman in Singapore and US but still new in Malaysia.

Up to now only 3 ETF listed in Malaysia and one of it is FB30ETF. This share cover 30 share company listed in KLCI the detail of the company is in this link... FB30ETF
Since the fund lanch at July 2007, highest the share price short up to arond RM10 and now the price drop to RM 5.40 almost 50% value loss. This ETF will follow KLCI index move because 30 company in this ETF is also in 100 company build up the KLCI index.

The oppecunity to make money in long term is, if KLCI will drop more lower to end up at 600 point by this year sure FB30ETF will drop too ( base on my calculation is RM4.00 ), by that time it's a good entry into this share. If we can hold this fund for 2 year sure the KLCI index will bounds up back to 900 point and by that time FB30ETF will be RM6.00, 50% incress from original investment.

One thing good is the risk for the share price drop to zero is vary minimum compare with buying individual share, so sometime crisis is a golden oppecunity.

KLCI technical bounds back unlikely to happen

Look like KLCI will drop more before any technical bound up. Base on the chart CMF need to drop to negative before a technical bounds back.

Now the money still flow in into KLCI to minimum the drop effect but look like KLCI is hard to keep up in this leave. The hope for KLCI to go up due to coming UMNO election may unlikely to happen, the goverment is no money to give by buy up the share.

Today's Market Preview (13-03-2009)

Today's Market Preview (12-03-2009)

RM60b Stimulus Package Only A Number

The government has trimmed GDP expectations to -1% to 1% for 2009 and RM60 billion stimulus package are list below:-

1. RM15 billion in fiscal injection
2. RM25 billion in guarantee funds
3. RM10 billion in equity investment
4. RM7 billion for private finance initiative and off-budget projects
5. RM 3 billion in tax initiatives

only RM15 billion flow to fiscal injection that will help us and hopefully this money will fully use to help us. The 1st stimulus package RM7.1 billion for us really did not feel anything.

Early of the year ValueCap get RM5 billion from EPF ( untill now still no dividend from EPF) to invest into equity and I think all the fund is used and now another RM10 billion will flow in. This move will benefit some people who know with share will be buy and sure we will not benefited on it because we are not member.

This package really mean the goverment is no money and this is the true because not tax cut or direct cost cut into ours daily life, mostly are only number.

Malaysia situation is bad in addition ours goverment is no money so we hope the best for this year will end well.

Today's Market Preview (11-03-2009)

RM60 billion mini-budget a bigger and better stimulus plan?

Here is the mini-budget I read in the edge:-

The RM60 billion mini-budget tabled in Parliament on Tuesday is by far a better and more comprehensive package than the first RM7 billion plan that was announced last November.

But then again, the economic environment today has taken a turn for the worst compared to a few months ago, and there is now recognition that despite strong fundamentals, Malaysia will not escape the impact of global recession.

Tough times therefore call for tough measures. Thus, the second plan contains measures that will tackle the key problems facing the economy – rising unemployment in the manufacturing sector, difficulty in accessing funds by small- and medium scale enterprises, a squeeze on corporate earnings and waning consumer confidence.

The strategy is two-pronged – measures are aimed at tackling the immediate problems facing the economy to prevent a deep recession, as well as at addressing the longer-term structural issues facing the economy.

However, given the severity of the global economic downturn, billed as the Great Recession by the International Monetary Fund, it is not a certainty that the two packages combined will be effective enough to prevent the domestic economy from sliding into a recession this year and enable a quick recovery in 2010.

In fact, Deputy Prime Minister and Finance Minister Datuk Seri Najib Razak, when tabling the mini-budget, said that with the fiscal boost, economic growth this year is projected at between minus 1% and 1%. In effect, this means Malaysia is in real danger of falling into a recession.

The silver lining, however, is that with the latest fiscal stimulus, the trough will not as deep as originally expected.

Prior to the announcement of the mini-budget, market consensus was the domestic economy would likely contract by between 3% and 4% this year, before recovering to grow by between 2% and 3% next year.

While RM60 billion seemed like a huge amount at first glance, at almost 9% of Malaysia’s Gross Domestic Product (GDP), the actual direct fiscal stimulus is just RM15 billion, a sum that will be spent over two years – RM10 billion this year and RM5 billion in 2010.

Of the remainder, RM25 billion will be in guarantee funds, RM10 billion directed towards equity investments, RM7 billion in private finance initiative and off-budget projects and RM3 billion in tax incentives.

Certainly, we laud the measures, such as encouraging companies to employ retrenched workers by giving them tax incentives, the issuance of another RM5 billion of savings bonds, allowing a deferment of one year the repayment of housing loans by the retrenched, as well as incentives to buy homes and cars.

However, economists generally agree that the mini-budget, as a stimulus plan, seemed to lack a “big bang” impact. At best, it will help shore up short-term confidence and prevent the economy from sliding into a deep recession. But like it or not, Malaysians must still brace themselves for a recession in 2009.

Given that the recession is now a global phenomenon, what the local economy needs immediately is a big boost to domestic spending, and the mini-budget does not appear to have addressed this issue adequately.

This is especially with regard to putting more money into the rakyat’s pockets to immediately boost consumer spending. The effect of some of the tax incentives, for example, will not be felt until early next year.

The need to focus on domestic demand is all the more important and urgent in view of the fact that the economic environment, both globally and domestically, continues to deteriorate. The end, at this point in time, is still nowhere in sight.

It must be noted that not all the RM60 billion will be translated into multiplier effects during the two years of the plan. Take the RM25 billion in guarantee funds. These are not cash injections but just a guarantee to enable companies, especially the small and medium scale enterprises (SMEs), access to funds.

For the SMEs, the biggest problem is the collapse in the export sector. Most of them are involved in the export sector supply chain. If there is no demand for exports at the end of the supply chain, SMEs will still be faced with an untenable situation inevitably. Having funds but no demand will be the eventual dilemma that must be dealt with, preferably earlier rather than later.

The government may decide to err on the side of caution when it comes to fiscal spending, given budget deficit constraints. At 7.6% of GDP, the deficit is among the highest in recent history. Still, given the severity of the economic crisis, the deficit is no longer a priority concern.

Having said that, the just-announced mini-budget is a step in the right direction. The toughest time for the economy may manifest between May and July, and depending on how much worse things can get, the government may need to come up with further pump-priming measures. The good thing is, there are still some bullets left in the government’s arsenal, insofar as fiscal and monetary policies are concerned.

Did the budget will help us come out from this crisis? I not think so.

Today's Market Preview (10-03-2009)

Citigroup stock falls below US$1 for first time

This news I get from The Edge Malaysia, and I think the crisis will enter another crash anytime now.

NEW YORK: One US dollar could buy a cup of coffee, a pack of chewing gum, or a roll of bathroom tissue. For the first time, it could also buy a share of Citigroup Inc, once the world's largest bank by market value, according to Reuters.

The price of a Citigroup share on March 5 fell below US$1 in a sign that investors are losing confidence that the lender, which operates in more than 100 countries, can be restored to health after US$37.5 billion of losses in the 15 months ended Dec 31. More detail...

Think is not getting better!

Gold's Price Correction Is End

Time to buy Gold is here!

Today's Market Preview (06-03-2009)

Today's Market Preview (05-03-2009)

KNM Price May Turn Up

KNM share price may turn up by end of this week but after that KNM price may drop below RM 0.36 base on the chart.

Today's Market Preview (04-03-2009)

Gold's Present Correction Will Likely End this Week

Gold's price present correction likely to end in this week. The price may drop into USD900 or USD890 per ounce before countinues go up to USD 1,000 per ounce. The entry point to invest in Gold is near and in this crisis Gold investment is better that share market.

In the same time, Ringgit Malaysia is devalued compare USD and if 1 USD equal to RM3.80 so the profit in Gold Investment will be bigger.

Today's Market Preview (03-03-2009)

KLCI Is Forming A Mini Triangle Pattern

KLCI is forming a mini triangle pattern and index is poised to get out from its current congested zone anytime soon.

I think KLCI may go up in this week and next week together with the mini budget news and EPF dividend flow out. In addition UNMO is having election by this month so the index may jump up due to some news or some out come. Even if EPF dividend is less than last year the media will said it is better that expected to make the negetive news turn to positive news.

KLCI index will only go down at Apr like what had happen during 19 Apr 1998 I think.

Today's Market Preview (02-03-2009)

EPF Dividend Will Be Lower

In a few weeks, the Employees Provident Fund (EPF) will declare its returns to members and need to forgot the dividend to be 5.8% or more.

The reason is the fund's inherent asset allocation structure, which provides that almost 70% of the funds be channeled into low risk investment such as government securities or highly rated private bonds. The yields of these instruments are low compared to return from investments such as equities.

The year has been tough for the equities market. In such a situation, EPF dividend likely to be less than 5% for this year.