Time to collecting, buy and hold for the rebound trend to come
To further confirm the buying timing, if Down Jones make a good rebound on Thursday Market, it ends the fear of interest rate hike which caused world market to down previously.
Thursday, June 29, 2006
European stocks - Factors to watch on June 29
PARIS, June 29 (Reuters) - European shares looked set for a higher start on Thursday after gains in New York and Tokyo, but equity, debt and foreign exchange investors braced for another U.S. interest rate rise.
Most analysts expect the U.S. Federal Reserve to raise the overnight federal funds rate by a quarter-percentage point to 5.25 percent, although some see potential for a half-point move.
But markets will hang on the Fed's wording in a post-meeting statement as they look for clues on whether the central bank will tighten monetary conditions even further in coming months. The Fed's decision is due at 1815 GMT.
Before that, the publication at 1230 GMT of the final first-quarter gross domestic product and of the core U.S. personal consumption price index, a key gauge for monetary policy-making, will come under scrutiny.
On the corporate front, steel makers may come under pressure after Australia's BlueScope Steel Ltd. (BSL.AX: Quote, Profile, Research) cut its 2006 earnings forecast and said it will axe jobs and shut two plants due to soaring raw materials prices.
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U.S. stock futures rise as Fed rate decision looms
LONDON, June 29 (Reuters) - U.S. stock futures gained on Thursday, indicating an opening rise for Wall Street, with all eyes on the Federal Reserve's interest rate decision and statement later in the New York session.
By 0955 GMT, U.S. stock futures were showing gains of around 0.2 percent for the three main indexes <SPc1> <DJc1> <NDc1>, lifted by a 1 percent rise in European shares <.FTEU3> and strength in Japanese stocks.
U.S. stocks rose on Wednesday thanks to gains in the energy sector. The same could be true later with crude continuing to firm above $72 a barrel after weekly inventory data showed crude and gasoline supplies fell more than expected last week.
The Federal Reserve is widely expected to lift its benchmark fed funds rate by a quarter-percentage point to 5.25 percent at 1815 GMT, a 17th rise in two years with more to come.
The wording of the Fed's statement has kept investors uncertain amid lingering concerns that the central bank's monetary tightening will slow economic growth and hurt corporate profits.
"We think the rise we are going get this evening will be the top of the cycle and that the Fed is about to pause. As or when the Fed indicates it is at the peak of a cycle we think the equity market will go up," said Jim Wood Smith at Christows Stockbroker.
Shares of Walt Disney Co. (DIS.N: Quote, Profile, Research) will be in focus after ticking up after hours on Wednesday after saying it has chosen former Procter & Gamble ( PG.N: Quote, Profile, Research) Chairman and Chief Executive John Pepper to serve as nonexecutive chairman.
Shares in memory chip maker Micron Technology (MU.N: Quote, Profile, Research) and Red Hat Inc. (RHAT.O: Quote, Profile, Research) look set to fall after slipping after hours following quarterly results.
Firms due to report earnings later include CA Inc (CA.N: Quote, Profile, Research), Constellation Brands Inc (STZ.N: Quote, Profile, Research), General Mills (GIS.N: Quote, Profile, Research) and Monsanto Co (MON.N: Quote, Profile, Research)
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FTSE 100 at 3-week high as oils and miners jump
LONDON, June 29 (Reuters) - Britain's FTSE 100 share index hit a 3-week high on Thursday, fired up by strong resources and bank stocks, although trading levels were modest ahead of a U.S. interest rate decision.
Banks saw HSBC (HSBA.L: Quote, Profile, Research) and Royal Bank of Scotland (RBS.L: Quote, Profile, Research) gain 1.1 percent, while Barclays (BARC.L: Quote, Profile, Research) put on 1.5 percent. Traders said an easing of concerns that the Federal Reserve would hike U.S. interest rates by 50 basis points instead of 25 basis points as previously expected helped the banks. Higher interest rates raise the prospect of bad debts and crimp consumer borrowing.
Online gaming company PartyGaming (PRTY.L: Quote, Profile, Research) was a major gainer, up 3.1 percent, after a report that it is set to unveil plans to expand into sports betting through acquisitions. The Guardian newspaper said the move would be funded with a bond issue worth up to 500 million pounds.
Oil majors BP (BP.L: Quote, Profile, Research) and Royal Dutch Shell (RDSa.L: Quote, Profile, Research) gained around 1.3 percent each as crude prices climbed further above $72 after falls in U.S. crude and gasoline inventories, raising concerns about fuel supplies.
By 1002 GMT the FTSE 100 was up 67.5 points or 1.2 percent at 5,746.1, its highest since June 6 and well above mid-June's the 6-month lows of 5,467.4 scored on concerns that interest rates would have to spike to contain inflation.
"We are responding now dramatically to the vagaries of hype, to base metals and oil prices, that's all the market is about," said David Buik, a market commentator at spread betters Cantor Index.
He added that markets were slowing down as investors waited for the Fed decision and ahead of the quarter and half-year end. Many investors were also distracted by UK summer sporting events such as Wimbledon.
"I don't like the low level of volume. It means the market is wholly uncertain, people have got a "talk to me in September" approach, which is thoroughly unhealthy and I wouldn't be surprised to see volatility on good and bad news," he said.
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MICROLINK
KUALA LUMPUR, June 23 (Bernama) -- Microlink Solutions Bhd, listed on the Mesdaq Market of Bursa Malaysia Friday, is confident of achieving the revenue and net profit it forecast for its financial year 2006.
The company had announced a targeted net revenue of RM23.3 million and net profit of RM6.45 million when launching its prospectus earlier this month.
"Currently, our order book has already achieved 60 percent of the forecast revenue for this year. We are therefore confident of meeting our forecast figures," Microlink's chief executive officer Edward Phong told reporters after a ceremony to mark the company's listing here today.
Microlink is an investment holding company which provides information technology (IT) solutions to the global financial services industry.
The company developed the Microlink Banking Solution (MiBS), an end-to-end solution designed to automate core processing functions such as deposits and investments, loans and financing, treasury and trade finance for both conventional and Islamic banking.
According to Phong, Microlink is also focusing on Islamic banking, currently the hottest growth sector in the industry.
He said the company aimed to provide an innovative core of Islamic banking services built on open source technology to ensure optimum usability by the global financial services industry.
In its financial year ended Dec 31, 2005, Microlink recorded RM19.82 million in revenue with the Islamic banking market in the Middle East and North Africa contributing 10 percent.
"This market (the Middle East and North Africa) contributed 15 percent of our revenue in the first quarter of 2006," Phong said.
He said the company has set up a support centre in Kuwait to provide services to customers in the region, covering Saudi Arabia and the other Gulf countries as well as North Africa.
Microlink, he added, has also set up a representative office in Jakarta to expand its Southeast Asian operations.
Phong said new Islamic banks coming up in Malaysia will provide a potential market for the company.
He said the company currently has RHB Bank Bhd, EON Bank Bhd and Bank Muamalat Bhd among its major clients.
Microlink's stock traded at 58 sen with a volume of 5,990 lots during the market opening this morning, which was higher nine sen compared to its issue price at 49 sen.
The company had announced a targeted net revenue of RM23.3 million and net profit of RM6.45 million when launching its prospectus earlier this month.
"Currently, our order book has already achieved 60 percent of the forecast revenue for this year. We are therefore confident of meeting our forecast figures," Microlink's chief executive officer Edward Phong told reporters after a ceremony to mark the company's listing here today.
Microlink is an investment holding company which provides information technology (IT) solutions to the global financial services industry.
The company developed the Microlink Banking Solution (MiBS), an end-to-end solution designed to automate core processing functions such as deposits and investments, loans and financing, treasury and trade finance for both conventional and Islamic banking.
According to Phong, Microlink is also focusing on Islamic banking, currently the hottest growth sector in the industry.
He said the company aimed to provide an innovative core of Islamic banking services built on open source technology to ensure optimum usability by the global financial services industry.
In its financial year ended Dec 31, 2005, Microlink recorded RM19.82 million in revenue with the Islamic banking market in the Middle East and North Africa contributing 10 percent.
"This market (the Middle East and North Africa) contributed 15 percent of our revenue in the first quarter of 2006," Phong said.
He said the company has set up a support centre in Kuwait to provide services to customers in the region, covering Saudi Arabia and the other Gulf countries as well as North Africa.
Microlink, he added, has also set up a representative office in Jakarta to expand its Southeast Asian operations.
Phong said new Islamic banks coming up in Malaysia will provide a potential market for the company.
He said the company currently has RHB Bank Bhd, EON Bank Bhd and Bank Muamalat Bhd among its major clients.
Microlink's stock traded at 58 sen with a volume of 5,990 lots during the market opening this morning, which was higher nine sen compared to its issue price at 49 sen.
News Picked from BERNAMA
Bursa Malaysia least affected by worries about US interest rates
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Bursa Malaysia least affected by worries about US interest rates
01:19PM (28-06-2006)Lower liners and penny stocks shed some gains in active trade in the morning session on June 28, but the decline was relatively milder compared with Asian markets worried about higher US interest rates.
Rimbunan Sawit Bhd, which made its debut on the Main Board, rose 10 sen to RM1.10. It was among the actively traded counters with 8.88 million shares done.
At 12.30am, the Kuala Lumpur Composite Index was down 2.26 points to 905.5 and the Second Board Index shed 0.6 of a point to 92.51. The FBM Emas Index fell 15.22 points to 5,908.78.
Turnover shrunk nearly 17% to 187 million shares valued at RM240 million. There were 361 losers, 141 gainers while 262 counters were unchanged.
Major Asian markets fell. Japan's Nikkei 225 fell 1.54% or 223.37 points to 14,938.44, South Korea's KOSPI 1.2% to 1,232.51, Hong Kong's Hang Seng Index fell 0.47% to 15,700.17 and Singapore's Straits Times Index 0.58% to 2,343,99.
Light crude oil for August delivery was at US$72 (RM265.62). The ringgit was quoted at RM3.682 to the US dollar.
Analysts said worries about hikes in US interest rates were overplayed but nevertheless, it did cause concern in Asian markets. Higher interest rates could affecte corporate earnings.
Among the heavyweights, Maybank fell 10 sen to RM10.50 while Tenaga and Telekom were unchanged at RM9.15 and RM8.95.
Kosmo loan stocks fell 25 sen to RM6.80 but with only 100 shares done. Bursa, Transmile and DiGi fell 10 sen each to RM5.60, RM12.80 and RM10.30 respectively.
MAS, which was reported to receive as much as RM850 million in compensation from the government for giving up bulk of its domestic routes, fell two sen to RM2.68.
Avenue Capital Resources, which was re-listed as ECM Libra Avenue after the merger, fell 19.5 sen to 80.5 sen. The reference price set by Bursa was RM1.
Actively-traded Konsortium Logistik, which is looking at the region to expand its automobile logistics services, rose 5.5 sen to 73.5 sen. Satang Jaya added four sen to RM2.05.
Iris was the most active with 15.36 million shares done. It fell one sen to RM1.15.
Genting was the top gainer, up 20 sen to RM23.60, Fiamma added 13 sen to 94.5 sen while SP Setia gained eight sen to RM3.74. Pos Malaysia rose two sen to RM4.32.
YTL Power rose four sen to RM1.94 after Merrill Lynch initiated a buy on the stock with a 12-month target price of RM2.30.
--- end --- --- Article Information --- This article was emailed from http://www.theedgedaily.com:80/cms. Article's URL: http://www.theedgedaily.com:80/cms/content.jsp?id=com.tms.cms.article.Article_com.tms.cms.article.Article_com.tms.cms.article.Article_190fb766-cb73c03a-1f682720-93aee430
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