FBM KLCI Up Or Down In Nov?

This will be an interesting week to study our FBM KLCI stock market pattern from a technical perspective as we enter into the month of Nov. As we know black OCT is not happen this year so if analysis back to year 2007, black Oct did not happen and Nov was consolidated before enter into Dec 2007. Will this happen again in 2009? If it do happen again so this month of Nov is a good entry into the share market.
























Base on the chart, FBM KLCI will be either a resumption of its uptrend is underway or an extended consolidation is already in the works. FBM KLCI fell for the first time in four weeks to close at 1,243.23 last Friday, a weekly loss of 23.9-point or 1.9%. Plunging in tandem were the FBM 70 Index (-2.8%) and the FBM ACE Index (-0.8%) as profit-taking activity picked up. Although losers outnumbered gainers on four days, there was little panic selling with daily average volume easing to 899.5m shares (from 1.0b units) valued at RM1.1b (RM1.3b previously).

The 1st support line will be around 1,221 and 2nd support line will be 1,190. As FBM KLCI drop near 1,221 I think panic selling will happen and I think Fund Manager will make it happen, so that profit can be make during year end windows dressing. However, we can see now FBM KLCI index is almost fully supported by banking sector so if your investment hide inside banking sector will be safe. I already hide most of my investment in bank warrant which till now still in profit even the market is in red.

I personally think KLCI FBM will only bounds up in last week of Nov if all the bad news from US flow out. Nov will be a good entry point to invest into quality share when they price dip into red due to panic selling. For me I always buy when the market is in red sea.

New KNM Warrant Issue By OSK Investment Bank Berhad

OSK Investment Bank Berhad issue out a new warrant of KNM name KNM-CB and listed on Bursa Malaysia on 7 Aug 2009 with a issue price of RM0.15. The KNM-CB is as below:-

The issue price is 27.78% premium ( base on KNM price at RM0.90) and base on HwangDBS target price, KNM is RM1.10 with equal to KNM-CB RM0.125. If at the time KNM hits RM1.10 and add on the premium price into KNM-CB so the warrant price will be RM0.275.

Since KNM-CB exercise price is at RM0.85 so the warrant is about to "in the money" status. I think this warrant is profitable to buy in. However because of now KNM likely share price moving sideways for this week so I think can wait a bit for the price to drop below issue price before buy in into KNM-CB. One need to remember also is that this KNM-CB is European-style so you can not settlement on any time.


In this month they are some new warrants issued and base on the 1st day tradings the respond is good. Due to the exercise price is low and must of the investor think the market will be better before the warrants expiry so the demean is their. At the same time it also mean a profitable opportunity. Will share with you about another new warrant in another posting soon.

TOPGLOV Still Looking Good

TopGlov had broken RM6.20 level and next stop base on the chart will be RM7.00. The performance of TopGlov still looking good.

However TopGlov was drop out from KLCI composite index, the new 30 share in KLCI is not included TopGlov but I think this share will continues be a good choies from long term investor.

TopGlov is still looking good after all.

Related Articles:-

• New 30 Share FBM KLCI Will Replace Current 100 Share KLCI
• TOPGLOV Is About To Move Up Higher

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

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.

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.

Make Profit By Invest Into AMMB-CD

AMMB Holdings Bhd, the holding company of AmBank Group released its audited results last Friday for 4QFY2009 ended March 31, 2009 showing a quarterly y-o-y drop in earnings of 17%. However the full year earning for FY2009 jumped 29% to RM860.82 million from RM668.54 million in FY2008.

Base on the performen, AMMB is a strong profitable bank like PBBank. Early of this year March 2009 OSK relest out AMMB-CD with the detail below:-

List Date:					20-03-2009
List Price:					RM0.1000
Expiry Date:					17-09-2010
Exercise Price:					RM2.4000
Conversion Ratio:					6.00
Warrant Type:					European Style

They are still many room for AMMB to go up back to RM 4.00 after see this share hits bottom at around RM2.00. When the mother share go up same thing will happen to AMMB-CD.

Yesterday AMMB-CD close at RM0.15 if AMMB hits back to RM4.00 so AMMB-CD base on the calculation will be RM4.00 - RM2.40=RM1.60/6=RM0.267 with 78% profit.

The expiry date is untill next year Sept so still many room for the share to move around. Now KLCI is about to go correction, and the AMMB share may drop abit if AMMB-CD drop back to RM0.100 I think it is a good time to buy in AMMB-CD to make profit in median term investment.