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2011-01-13

HWangDBS 13 Jan 2011 Report

Showing preliminary signs of stability, the FBM KLCI will probably inch up further today after seeing a 3.6-point increase yesterday.

The benchmark index may be making its way towards the immediate resistance target of 1,585 ahead. Giving an added boost to our local sentiment is an overnight rise on Wall Street. Key U.S. equity bellwethers jumped between 0.7% and 0.9% at the closing bell amid a better economic outlook. Among the stocks to watch today are:
  1. SP Setia, following a news article reporting that it is in the lead to get a 30-year concession to build and operate a convention centre in Penang;
  2. Gopeng, after declaring a bumper net dividend per share of 32.5 sen (translating to a generous net yield of 25% based on the current share price of RM1.29); and
  3. Faber, as its earnings will be hit by the non-renewal of two facilities management contracts in the Middle East worth RM184m.

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My investment with RM5,000 initial capital have been growing since 2005.I found the stock market appears confusing and complicated, but it is most definitely based on logic "supply and demand". However, the laws of supply and demand as observed in the markets do not behave as one would expect. To be an effective trader, there is a great need to understand how supply and demand can be interpreted under different market conditions and how to take advantage of this Off Market Transactions in KLSE.

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