THAI SET HALT TRADING - SET INDEX FELL OVER 10 PERCENT

The Stock Exchange of Thailand (SET) had once suspended trading for 30 minutes at 11.35am as SET Index fell over 10 percent.

 

Investors panic sold shares after the Bank of Thailand late last night ordered banks to lock up 30 percent of any new foreign currency depostis which is above USD 20,000 for one year. This move was the recently mosts stringent imposed measures to curb sharp baht's appreciation to a nine-year high.

 

EON Capital Securities, Head of Research, Pong Teng Siew said to Bernama that "Capital control in Thailand is believed to be a signal for Foreign investors to cash out from emerging market.."

 

Sentiment over short period is expected to be influenced by this issue. If one sees our capital market development to mid and long run basis, it may be an opportunity to grab some good stocks.

ROBUST RESULTS SUPPORT RALLY

'ROBUST RESULTS SUPPORT RALLY', this is one of article i found in thestar, 4 Dec 2006. If one who followed our STOCTOUCH website from beginning, one might find we did stress the improving corporate earnings might lead our capital market moving ahead. The investors sentiment have now been changed and people started to forecast higher CI ahead.

 

No doubt, there are still majority retail investors do think it is year-end market rebound like those days. Regarding this rally, we do have our own viewpoint. But we would like to hear other's point of view as well. We would like to invite bloggers to reply some comment of this rally, tell us what do you think, share with all here. Your may also post your opinion at our Trading Kommunity, http://TradingKommunity.tz4.com

 

To read 'ROBUST RESULTS SUPPORT RALLY' of thestar's article, please go to

http://biz.thestar.com.my/news/story.asp?file=/2006/12/4/business/16202973&sec=business

NOT TO WORRY IF CI PULL BACK IN THIS WEEK

Any pull back of Composite Index (CI) or market is deemed healthy, no worry for the market. It may be an opportunity to pick up at low if market pull back substantially.

 

This month, December, may perform 'December Rally' if there is no substantial pull back in Dow Jones. The main concern is will December Rally apply to broad market, ie. to all penny stocks? From our research, it may, but we are not going to say it definately will. To confirm, market run after the pull back is essential. To make it happens, daily volume will have to maintain at > 1 billion turnover average.

 

 

MARKET MOST LIKELY TO CONTINUE THE RUN IN DEC 2006

Referring to tecnical indicators, you may find the overbought level for CI, but our system shows CI may not come with huge correction at the moment, especially throughout Dec 2006. Therefore, it is still a buying period for those unmoved stocks, especially on those penny.

 

Some may consider to short CI at the moment, but our system shows the possibility of CI correction is minor or fast, it means if it is corrected, it may rebound very fast or even it may just stay higher and higher rather than big correction ahead.

 

Apology that we have chosen a wrong counter, ie. KEURO (3565) earlier. As everybody know, the story behind the momentum of KEURO was the deal with IJM. From source, the deal is not proceeded successfully at this stage.

 

AMMB stakes sold to ANZ at RM4.30. AMMB, SIME-GHOPE-GUTHRIE, RHB, UTUSAN-NSTP, all of these good news are expected to boost our market further ahead especially in Dec 2006. Therefore, for positioning trader, it may be the right timing to position the unmoved penny stocks.

AMCORP GROUP TO SELL 11.4% OF AMMB TO ANZ

AmcorpGroup Bhd has proposed to sell 300 million AMMB Holdings Bhd shares, or 11.4% on a diluted basis, to Australia & New Zealand Banking Group Ltd (ANZ) at RM4.30 per share. 

 

AMMB is expected to make a sharp move today. AMMB-WA & WB are expected to make another round uptrend.