Today's Market Preview (30-06-2009)

Today's Market Preview (29-06-2009)

Bursa-CL Warrant Potential To Generate Profit

Warrants are generally bull market tools. In a bear market, however, warrants tend to drop faster than mother share. By the same token, when there is a price rebound, warrants tend to jump quicker than the mother share. So if investor believes in Bursa's upside, he/she could look at buying its warrant - Bursa-CL

Bursa-CL is launched in Dec 2008 expect at 9 June 2010 with ratio 5:1 exercise price RM5. The warrant which ended at 45.5 sen last Friday, carries a value of RM7.275 = (0.455x5+RM5). The mother share finished at RM7 last Friday.























Now in short term the KLCI will have a correction and may drop a bit below 1,000 in coming next month and by next year 2010 economic will sure get improve compare this year so Bursa sure will moving up and Bursa-CL will bounds more higher.

Bursa-CL which was issued at 24.5 sen, dipped to a low of 8.5 sen on March 16 before rebounding to 54 sen on May 12. This means it jumped 535% over these two months. Next run of Bursa will be a good opportunity to make profit by warrant.

Target Price from research house:-

1. AmResearch raised its fair Bursa value to RM8.40 from RM6.20 so Bursa-CL will be 68 sen
2. Kenanga Research upped its target price to RM9.30 from RM5.10 so Bursa-CL will be 86 sen
3. CIMB raised its target price Bursa value to RM8.00 from RM7.50 so Bursa-CL will be 60 sen

While investors who have capital in hand may be untested in buying the Bursa share, those looking for cheaper entry into the stock and who believe local market sentiment will continue to improve may find Bursa-CL more appealing.

Related Articles:-
Make Profit By Invest Into AMMB-CD
AMMB-CD Is Closing Up Higher

Today's Market Preview (26-06-2009)

Michael Jackson Is Past Away

Child star to megastar

Jackson was born on Aug. 29, 1958, in Gary, Indiana, the seventh of nine children. Five Jackson boys – Jackie, Tito, Jermaine, Marlon and Michael – first performed together at a talent show when Michael was 6. They walked off with first prize and went on to become a best-selling band, The Jackson Five, and then The Jackson 5.

Jackson made his first solo album in 1972, and released “Thriller” in 1982, which became a smash hit that yielded seven top-10 singles. The album sold 21 million copies in the United States and at least 27 million worldwide.

The next year, he unveiled his signature “moonwalk” dance move while performing “Billie Jean” during an NBC special.

In 1994, Jackson married Elvis Presley’s only child, Lisa Marie, but the marriage ended in divorce in 1996. Jackson married Debbie Rowe the same year and had two children, before splitting in 1999. The couple never lived together.

Jackson has three children named Prince Michael I, Paris Michael and Prince Michael II, known for his brief public appearance when his father held him over the railing of a hotel balcony, causing widespread criticism.

New 30 Share FBM KLCI Will Replace Current 100 Share KLCI

This is the list of 30 share will in KLCI index start next month, all are heavy weight and vary stable share so next time we will see KLCI index move slow and steady.

In KLSE they are more than 1,000 of share but Malaysia economic is just represent by 30 share. It really did not show a good picture of ours economic.

HOVID Wait Up From Long Cool Winter

Since oil price drop below USD 60 bio-diesel project have been forgotten by most of us but in this few day HOVID had come to a big bounds up due to H1N1 and oil price moving up.

Today's Market Preview (25-06-2009)

KLCI Rebounds With Low Volume

Yesterday KLCI rebounds 13.37 point with low volume, and base on the chart KLCI still above MA 50days and MA 200days. This is the sign that KLCI will drop again in coming next week till in below MA 50 days before a stable rebound may likely to happen.

Today's Market Preview (24-06-2009)

TOPGLOV Is About To Move Up Higher

TopGlov is broken RM6.20 level and I think it is above to move higher. TopGlov is one of the share save to keep in investment profile during pandemic time.

Speculative Activities Were Getting Rampant In JAKS Resources

The share price was lifted by remarks by company official that the company stands a good chance of winning contracts to supply pipes for the interstate water project. This share had been speculative by using the water project so when major bad new come hits the KLSE, the share price will drop fast.

Fund manager like to use off-market transactions to cover they speculative action. During JAKS price moving up their are 1.495 million shares crossed off market in direct deals at 91 sen each.

This is same of the share you need to avoid to buy for long team investment.

Today's Market Preview (23-06-2009)

KNM Drop Due To Foreign Fund Flow Out

KNM is about drop to 1st support line in RM0.70 and likely KNM will close at this level in this week. With foreign fund cash out from share market, KNM will hits badly, so I suggest done buy in into KNM in this time.

Today's Market Preview (22-06-2009)

Foregin Fund Is Flowing Out From Malaysia

Foreign Fund is flowing out from Malaysia due to US dollar value is going up. May be now you will hear a lot of article said about a correction will be the time to buy, the word buy during correction is correct but the question is when is the correct time to buy in.

Now KLCI is drop below 1050 and I think it is still not the time to buy in into share market due to now the foreign fund is flowing away from Malaysia market and we may not know in this time how march they will pull out cash from share. Base on the chart, a retracement can take the index to slightly below 1,000 points however it does not mean the return of a bear market.




So the correct time to "BUY" in is during most of the foreign fund sale out their share and "SALE" when the foreign fund flow in into Malaysia share market.

The Government has announced some positive measures to liberalise the steel industry

Steel Sector
Liberalisation of steel industry

The Government has announced some positive measures to liberalise the steel industry to enhance its competitiveness, locally and abroad. The key changes which will take effect
from 1 August 2009 are as follows:

1. Manufacturing licences will be granted without restriction to meet the demand for domestic and exportmarkets for long and flat products.
2. Free issuance of import licences for flat products. Noexport licence is required on flat products. The current import and export duty exemption on 57 tariff lines of long products will be maintained.
3. Import control for products of Hot-Rolled Coils (HRC), Cold-Rolled Coils (CRC) and Electro Galvanised Iron (EGI) through fixing the ratio between locally sourced and imported products will be abolished.
4. For long products - import duties will be reduced from the existing 10-30% to 10% and further cut to 5% effective 1st January 2010.
5. For flat products - import duties will be reduced from 50% to 25% and further decreased between 0-10% from 1st January 2018.
6. Import duty exemption for flat products, including HRC, CRC and EGI, is given to raw materials used for the production of finished goods for the export market, irrespective of local availability.

The determination of HRC base price implemented by MITI will be abolished. HRC price will be determined based on domestic and international market forces. Traditionally, local long steel products are priced at 10-15% premium to overseas prices. This is largely due to the inclusion of the freight, warehousing and handling charges. Potential new importers would require a fairly sizeable investment and working capital to import long steel on a regular basis (shipments are large, variety of sizes and storage space required) - which will be a barrier of entry to overcome. We do not expect significant additional volume of imports and do not expect significant impact to earnings at this point. We maintain Hold for both Kinsteel (TP RM RM0.85) and Southern Steel (TP RM1.75). The free issuance of import license and the abolishment of import controls for flat products would be beneficial to pipe producers as we expect them to obtain more competitive pricing on HRC. This would be positive for Hiap Teck (Hold; TP RM0.75) and Southern Pipe Industry Sdn Bhd (83.7%- owned subsidiary of Southern Steel). However, earnings from newly priced HRC should only filter through when existing stock is utilized.

Today's Market Preview (19-06-2009)

KLCI Drop Below 1,070 Level Entery Correction Zone

Yesterday KLCI records biggest one day loss since March 30 this year 2009. The 1,070 level had been broken will show a sign that KLCI will correction to immediate 1,020 level in a week or two. However, Bursa Malaysia will play some technical sign by changing the 100 share in KLCI index to 30 by July next month, sure this will limited the KLCI from drop more that now.

Up to date, the 30 share will include in KLCI index still not final yet so I think Bursa will selected most stabil 30 share to include in new KLCI index to show Malaysia economic is ok but in real KLCI will not give a complete picture about Malaysia economic status.















USD/MYR currency is getting stronger, I think if reach RM3.60 per USD most of the foregin will put out from KLCI so the index will drop more if you still useing 100 share in KLCI index. For me I already set up all 100 share in KLCI index in exel to countinues to monitor the movement to show a better picture in Malaysia share direction.

The Malaysia economic status still full with bad news like

1. The sales value of the manufacturing sector in April 2009 declined 26.2 per cent or RM12.8 billion year-on-year to RM35.9 billion.
2. Sales value decreased significantly were the manufacture of refined petroleum products (36.9 per cent).
3. Salaries and wages paid in April 2009 fell 9.4 per cent or RM191.2 million year-on-year to RM1.840 billion.
4. The number of workers employed decreased by 10,368 persons or 1.1 per cent from 954,426 persons in March 2009.
5. Influenza A (H1N1) number is on the way up
   

This year is vary hard to make money in share market but as long as you did not lose money than you are the winner.

Today's Market Preview (18-06-2009)

Today's Market Preview (17-06-2009)

KNM Price Likely Correction To RM0.70

KNM had strongly bound up during the KLCI bull run, this share remain a popular share for most of the fund in Malaysia and foreign fund investor. All share need to correction even in the move up position.

Base on the chart RM0.70 will been a support level and I think KNM need about 1 month to drop to this level depend on how many bad news will be re-lest out this time.



Next month, KNM will be out from KLCI index 30 so it may a bit affected the share price.

KLSE Close In Red Sea

Today Asia share market close in red. What will happen on tomorrow index? Bound up or drop more?

This will depend on how much retail investor in the share market, more retail investor in market will make the share market drop more.

BJTOTO Full Year Gross Dividend to 29sen or 77% Payout

Result within expectations. 4QFY09 net profit came in at RM107m (+76% y-o-y, +10% q-o-q), bringing full-year earnings to RM411m (+18% y-o-y), within our and consensus expectations. Lower prize payout of 61% (-7ppty-o-y, -4ppt q-o-q) offset weaker revenue (flat y-o-y, -18%q-o-q). There were 6 less draws q-o-q but revenue/drawgrew 2% y-o-y and -6% q-o-q as the seasonally stronger Chinese New Year fell in 4QFY08 and 3QFY09.

Gearing up to fund large dividend payout. BST ramped upits final dividend to 11sen (tax exempt), bringing full year gross dividend to 29sen or 77% payout (vs 75% dividend

policy). Including additional interim dividend of 19sen (tax exempt) for FY10 and its maiden treasury shares distribution, FY09 net dividend amounted to 80sen or 16% net yield. BST plans to take on RM380m of new debt, raising its net gearing to 86% from 7% and reducing FY10F earnings by 5% (assuming 5% interest rate). Repayment (likely over 4 years period) should be supported by strong operating cashflow of ~RM500m p.a. BST still has a balance of 5m treasury shares.

Share price appreciation may be capped. Although there could be a knee-jerk reaction to BST’s bumper dividends, upside could be limited by:

(i) potential share overhang as BLand realizes the value of its share dividends, and

(ii) potential conversion of BLand’s exchangeable bonds to

BST shares if share price exceeds RM5.16 (BLand’s stake in cash-cow BST could be diluted to 37% from 51%). BST is currently trading at 14.1x FY11 PE, 1-SD above mean. We

raised our earnings by 3-6% after imputing stronger revenue/draw growth of 3-4% (FY09: 13%) given improving risk appetite and consumer sentiments.

Today's Market Preview (16-06-2009)

POHKONG Share Likely To Jump When Gold Price Bull Run

Poh Kong will be benefit when gold price short up, base on the chart someone is buying a lot but without pushing up the price.

TopGlov Is About To Jump Higher

TopGlov share price have try to broken RM6.20 level for 3th time, any broken through will make the share jump higher.

With all this H1N1 news around the world, TopGlov business sure will going up.

Today's Market Preview (15-06-2009)

Commodity Prices Rally Likely In 2H2009

The rally in commodity prices has continued, driven by a bottoming of global growth expectations, a weaker dollar and a consequent improvement in investor sentiment. Specifically for commodity markets, China's imports of key industrial metals, crude oil, coal and even soyabean have added extra momentum to the markets concerned, although end use demand remains weak.

Substantial supply cuts have now been implemented, which together with less negative news from the US and some positive news from China, have been enough to underpin a broad-based rally in commodity prices.


In addition, gold continues to grind higher on sustained investor demand and USD weakness. China's reported increase in gold reserves will reinforced gold outlook to break USD 1,000 per ounce again in 4Q.

Fundamental of US economic is still weak but Asia economic is strong, Due to this fact investor choice to see the good news from China and just close the bad news from US will make the share market and commodity market rally higher by year end.

For now just need a good entry point to reinvest into share market.

Today's Market Preview (12-06-2009)

Unusual Market Activity (UMA) Query On SAAG

Bursa Malaysia Securities Bhd has issued an unusual market activity (UMA) query on SAAG Consolidated (M) Bhd over the high trading volume of its shares.

SAAG is same like KNM, since beginning of the KLCI bull run SAAG and KNM have moving up a lot. Base on the chart, SAAG share price about to drop back, better sale out this share.

Influenza A (H1N1) as a Pandemic

The World Health Organization has declared an influenza pandemic on June 11 and called on governments to prepare for a long-term battle against an unstoppable flu virus, according to Reuters.

The United Nations agency raised its pandemic flu alert to phase 6 on a six-point scale, indicating the first influenza pandemic since 1968 is under way.

"With today's announcement, WHO moves from an emergency to a longer-term response. Based on past experience, this pandemic will be with us for some months, if not years, to come," WHO Director-General Dr Margaret Chan said in a letter to staff, a copy of which was obtained by Reuters.

Today's Market Preview (11-06-2009)

KNM’s Managing Director Mr Ir Lee Swee Eng sold 1.6% shares

I just see this Info from HWangDBS research

The filing to Bursa Malaysia yesterday indicated that Mr Ir Lee Swee Eng, the Managing Director of KNM, has sold in total 63.65m or 1.6% KNM shares from 1-4 June 2009.Following is the details based on information from Bloomberg : - We are unable to ascertain at this juncture if there will be further selling of shares by Mr Lee. We believe that the share sale may help to raise fund to redeem part of Mr Lee’s holdings under a share margin account. Recall that there was a force selling of KNM shares owned by Mr Lee by CIMB Bank in Oct 08. We understand that the share that was under share margin financing was c. 4% in Oct 08. This time round, the share sale is not under force selling but Mr Lee has raised around RM64m and this could be used to redeem his holdings with CIMB. Mr Lee still holds a 22.3% stake in KNM after the recent share sale. The earnings outlook for KNM has improved following the recovery in crude oil price. We expect new contracts from KNM’s RM18b tender book to flow through from 3Q09 onwards, on the back of sustainable oil price and improving 2H09 economic outlook. We maintain Buy and target price of RM1.15 based on 10x FY10F EPS, which is its mid-cycle valuation. KNM is trading at attractive 9x FY10F PE against local and regional peers’ average of 9x and 15x, respectively. Key risks for KNM include the following: (i) timing of contract awards to avoid earnings erosion in FY10-11F, (ii) prolonged delays in contract awards that could lead to margin compression, and (iii) stability of crude oil price.

Lucky sold out my KNM share already

Today's Market Preview (10-06-2009)

2H09 Likely To Award Contracts To Oil And Gas Support Services

Oil and gas related stocks are likely to benefit from Petroliam Nasional Bhd (Petronas) president and chief executive officer Tan Sri Mohd Hassan Marican's statement on June 8 that global energy need is expected to more than double in 2030 from today's level.

"The current slump in demand and contraction in oil prices will not slow down the exploration and production development spending by international oil majors, as continuous effort is needed to meet future global energy demand," he said at the 14th Annual Asia Oil and Gas conference here.

Analysts have also maintained that oil and gas support services providers — including

1. Alam Maritim Resources Bhd,
2. KNM Group Bhd,
3. Wah Seong Corporation Bhd,
4. Saag Consolidated (M) Bhd and
5. Kencana Petroleum Bhd

will be among the beneficiaries in 2H09 with Petronas and other oil majors likely to award contracts. By end of the year oil prices will be likely around USD 76.

I think KNM and SAAG will likely to benefit due to foreign fund is investing in this two share, now both share is about to due for correction so the oppercunity to buy in is during the correction till the support line. Due to US Dollar is about to bounds up I think share market will drop any time soon.

I had sold out my
KNM share at RM1.07 with early I buy this share at RM0.99 (Profit 8%) and also my
AMMB-CD at RM0.190 with I buy in at RM0.155 (Profit 22.5%)

Luckly still can make so profit in this bull run.

Today's Market Preview (08-06-2009)

USD/MYR Move Opposite With KLSE Index

This few day I had do some analysis about the KLCI bull run, try to found when major correction will take place and I found the chart above. Base on it, KLCI move opposite again USD currency!

When USD value drop KLCI is moving up so I think foreign fund do play around in Malaysia share market as a platform to put money when USD is low. Now RSI chat for USD/MYR currency is below 50 for about 2 month and I think KLCI will drop frist before USD/MYR value move up.

KLCI had year to date up around 20% and USD/MYR value is drop back to level RM3.50 like early of the year 2009, I think US economic may improve by 2H2009 so USD value may up by end of June so KLCI may face major correction by mid of this month.

Today's Market Preview (05-06-2009)

Today's Market Preview (04-06-2009)

Not Completely Miss The KLSE Bull Run Yet

That is a critical issue for countries such as China that hold hundreds of billions of dollars in US government debt. If the United States is unable to control its long-term deficits, it could weaken the dollar and drive up inflation, hurting the value of those dollar-denominated assets.

US Treasury Secretary Timothy Geithner, on his first visit to China as Treasury chief this week, announce sought to reassure Beijing that the United States was committed to living within its means.

I think likely USD value may sit in this leave or below for some time, so as long as the USD currency leave is low I think most of the foreign fund will be in KLSE stock market for some time before any big change in Investment. Another than that China investment fund also see so increance investment in Malaysia share market.

Base on the chart also, KLCI is due to a correction and support will be in 1030 leaver. Gold price had start correction and I think share market will follow soon so this correction is a good entry point. However risk always in share market so buy in carefully is a must.

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

KNM Have 3 Major Jump Up

KNM has continues moving up since beginning of the KLCI bull run. KNM is foreign fund favors share so when all the fund rust in KNM is they choice.

Early of the year a lot of negative news about KNM had flow out and this share is also part of UNMO political share, it did not mean it run by UNMO people but it is a share use by UNMO to give money. Now most of the gived share already sold out most of it and soon KNM price will hits RM1.50

For me it is really a mised oppecunity to make money. However base on the chart, it may happen another 4th jump to push KNM to RM1.50

AMMB-CD Is Closing Up Higher

AMMB-CD is on the way up along with AMMB share and this share may go up a bit more. Target at RM 0.220

KNM HwangDBS Top Pick

KNM still is the top pick in oil & gas sector for HwangDBS. Base on the report from HwangDBS KNM expect contract flow to pick up from 3Q09 onwords and lead to stronger 2H09 earnings.

KNM should also benefit from an upswing in the equity market given its high beta of 1.7x and good liquidity.

Today's Market Preview (02-06-2009)