STOC iN TOUCH - 21 Nov 2006
KEURO (3565), REASONABLE BUY : RM 0.525 - RM0.54
Tuesday, November 21, 2006
Monday, November 20, 2006
MARKET iN TOUCH - 20 NOV 2006
This week, 20/11/06 to 24/11/06, Bursa Malaysia (KLSE) may have small correction. The completion of this correction may lead to higher level, therefore it may be a good chance to buy low during the correction.
STOC iN TOUCH
IDAMAN
JADI
Friday, November 17, 2006
KLCI LIKELY TO HIT ALL-TIME HIGH EARLY 2007
The current rally on Bursa is expected to be extended with the Kuala Lumpur Composite Index (KLCI) likely to break its
all-time high of 1,332.04, which was recorded on Jan 5, 1994, early next year, a veteran stockbroker said on Nov 16.
OSK Holdings Bhd group managing director Ong Leong Huat said the major factors for the bullish outlook were the record
highs of major Asian markets, coupled with the decline in oil prices, and the low and stable interest rates.
"The equity markets should be on the positive. There is big run-up in Hong Kong, China and specifically, the Asia-Pacific area.
That will lead the market further," he told reporters after the signing of a joint-venture agreement for OSK to provide financial
services to the Middle East.
On Nov 16, the KLCI surged to a more than nine-year record, closing at 1,037.6, which was 9.22 points or 0.9% higher than
the previous day's. Year to date, the 100-stock index is up 15.31%. Trading volume was over 1.2 billion, with interest spilling
over to lower liners and penny stocks.
In the Asian markets, the Hong Kong Hang Seng Index climbed 0.32% or 61.07 points to close at a record high of
19,154.07.
"We are extremely positive, not only in Malaysia. We will see new records being broken as we move towards the end of the
year and early next year.
"You can see a lot of companies making record profits. I think the most important thing is not the index (KLCI). It is how
vibrant, how good the market is. The index is only an indicator," he said.
Among the major gainers on Bursa on Nov 16 were DiGi.Com Bhd, which rose 60 sen to RM13, Telekom Malaysia Bhd 45
sen to RM9.55 and EON Capital Bhd 35 sen to RM6.35. Kuala Lumpur Kepong Bhd gained 30 sen to RM13.60 , Maxis
Communications Bhd 25 sen to RM9.45 and Transmile Group Bhd and Tanjong plc 20 sen each to RM12.80 and RM13,
respectively.
Quoted from theedge Website, reported by Gan Yen Kuan (16 Nov 2006)
Thursday, November 16, 2006
WHO IS REPCO LOW ???
Some investors may be askingh, "Who is Repco Low?"
Here is the article we took from thestar,
Repco Low, as Low Thiam Hock, is better known in the stock market circle, got his nickname as a director of the company, Repco Holdings Bhd, a high-flying stock in the 1996 Second Board bull run.
Repco share flew to a high of RM140.50 in Sept 1997. It was at that time a Sabah-based gaming company.
The share price later dropped to RM2.98 in August 1998 before the stock was suspended from trading on Bursa Malaysia in Oct 2000. The counter was de-listed on Aug 11, 2003.
The company was placed under the management of the Special Administrator of Pengurusan Danaharta Nasional Bhd, after it defaulted on debts of RM604mil in 1999.
In the last half dozen years, a number of speculative stocks that surged were often linked to Repco Low by punters although whether that was true or a market myth, it was never known.
Repco the company was linked to several controversial corporate cases.
Several years ago, Sime Bank's chief executive officer Datuk Ismail Zakaria was charged with exceeding his authority for giving a RM175mil loan to Everise Capital Sdn Bhd, a subsidiary of Repco, to buy shares.
Last year, Refco Inc, the largest independent US futures broker, collapsed and an internal probe found that it was owed millions by Repco since the mid 1990s.
Tuesday, November 14, 2006
REPCO LOW ACQUITTED
Breaking News : Businessman Repco Low was acquitted from share manipulation charges by the Kuala Lumpur Sessions Court Tuesday without his defence being called
Q3 DATA RELEASED DATE CHANGED TO 23 NOV 2006
Please be noted that Bank Negara Website latest stated the quarterly economy growth data will be released on 23 Nov 2006, instead of 22 Nov 2006
Q3 GDP DATA RELEASED ON 22 NOV 2006
Our country, Malaysia is going to announce 3rd quarter economy growth data on 22 Nov 2006.
Monday, November 13, 2006
JPMorgan favours Malaysia stocks for 2007
News from Reuters to share with all
HONG KONG, Nov 10 (Reuters) - Stock markets in China, Thailand, the Philippines, Taiwan and Malaysia are likely to produce double digit gains between now and the end of 2007, a top JP Morgan strategist said on Friday.
"The news flow will be that the U.S. economy is OK and that the Fed is on hold. It will allow us to focus on the pretty strong fundamentals that you've got in emerging markets. The result of that could be that markets run pretty hard."
India is the least attractive of the major Asian markets outside of Japan because its stocks are already trading at very expensive valuations, said Adrian Mowat, chief Asian and emerging markets equity strategist for the U.S. investment bank. "Our message for equity markets for the next year is still a very positive one. I think particularly for the next couple of quarters, we're in quite a sweet spot," Mowat told a media briefing in Hong Kong.
TIN PRICE SURGES UP
THE price of tin is expected to remain strong within the next 12 months, triggered by continued growing demand and uncertainties in supply.
In the early part of the year, tin was relatively a laggard compared with other hard commodities such as gold, zinc, copper and nickel, which experienced significant price hikes up to over 100%.
Among the top world tin players that should benefit from the strong tin price are public-listed Malaysia Smelting Corp Bhd (MSC), Peru-based Minsur SA, China-based Yunnan Tin Co Ltd and Indonesia-based PT Timah Tbk.
The research unit said the share prices of Minsur, which is listed on the Lima Stock Exchange, Yunnan Tin listed on the Shenzen Stock Exchange and PT Timah listed on the Jakarta Stock Exchange, had increased 10% to 30% over the past three months.
Malaysia's sole tin smelter MSC, whose shares were re-quoted on Bursa Malaysia last Wednesday, saw commendable performance with its share price closing at RM6.00 last Friday.
ZJ Research said tin price experienced significant jump since the second half of the year arising from uncertainties in future supply and demand factors.
Picked from
BULL RUN ???
Referring to TheStar Business today at
In a report titled Secular Bull Case For Emerging Market Stocks last week, Merrill Lynch said the Malaysian market rose 92% between Oct 10, 2002 and Oct 27, 2006, as measured on the Morgan Stanley Capital International or MSCI index. That was a gradual rise over four years until it accelerated this month.
During that four-year period, Malaysia was the worst of 19 emerging markets tracked by Merrill Lynch. Oil-rich Russia topped the list with a surge of 848%, Brazil second with 747% and Czech Republic third with 655%.
Among the large high-growth economies, India was fifth with a gain of 569% and China sixth with 542%.
In the Asean region, Indonesia was fourth on the 19-market list, ahead of even India and China, gaining 572%, and Thailand was 12th, rising 347%.
It must be a relief that Malaysia is at least participating in this long rally.
Merrill Lynch made a case that there are still legs in this emerging markets bull run. The basis for this is its view of the still emerging, and in some aspects, superior, quality of these economies. Emerging countries, for instance, hold 70% of the world's foreign exchange reserves, and are less prone to contagious crisis than in 1997/98.
There is value in many of the stocks on Bursa Malaysia. Investors here should have more than a glimpse of the rally, as long as the bull run continues in the leading emerging markets.
Wednesday, October 04, 2006
DOW'S RECORD HIGH IS "JUST A NUMBER" TO SOME
NEW YORK (Reuters,Tue Oct 3, 2006 5:23pm ET) - It took the Dow Jones industrials nearly seven years to top its last record on Tuesday, but in the eyes of some the new record is "just a number" because slowing economic growth will make future gains even harder to come by.
The 110-year-old Dow rose to 11,758.95, surpassing the intraday record of 11,750.28 set on January 14, 2000, as investors bet on Tuesday that sliding crude oil prices will underpin corporate profits even as economic growth slows.
"It's just a number. It doesn't have the same stocks that it did when it last reached the high and it's not inflation-adjusted," said Bob Millen, a portfolio manager with Jensen Investment Management in Portland, Oregon.
In 2000, investors thought the sky was the limit given that that Dow had shot from 9,000 in 1998, to 11,000 in 1999, before topping out at 11,750 less than a year later. But now many view economic growth as slowing, lessening prospects for corporate profits.
"We have a lot of things that we're looking at, a slowing economy, a collapsing housing market. It's not like we've broken to new highs and it's off to the races. We've clawed our way back to where we were in 2000 and now we've got to climb a wall of worry to get any higher from here," said Shawn Campbell, a principal with Campbell Asset Management in Chicago.
As the Dow made a new high, the Nasdaq traded at 2246, less than half of its 5,132 all-time high set March 2000 while the S&P, at 1336, is 14 percent below its record of 1,552 also set that March.
"I would feel better if the S&P 500 was hitting a new intraday high," said Scott Wren, a senior equity strategist at A.G. Edwards & Sons Inc. in St. Louis. "As far as the market goes ... (the Dow is) a pretty narrow gauge of the stock market, and you don't have super broad participation leading up to the new high."
Oil prices slid 24 percent in the last two months and boosted stocks as investors assumed lower commodity costs would improve corporate profits. But it was soaring energy and other commodity prices that really kicked up shares of companies like Exxon Mobil and Caterpillar Inc. in recent years and underpinned the Dow's rise to the all-time high.
Exxon is up 58 percent since January 14, 2000, while shares of Caterpillar have risen 151 percent over the same period.
But it was less exciting for overseas investors.
The average of 30 U.S. stocks -- all of which trade in dollars, naturally -- is up about 9 percent in 2006. But for the euro-zone investor who must first convert to dollars to buy U.S. equities, or a broad market measure like an index or average, the return on the Dow is a scant 1.9 percent.
And even U.S. dollar investors should not be so ecstatic about the Dow average's recent gyrations. Inflation and surging commodities prices have reduced the value of the greenback in real terms, notes Peter Schiff, president of Darien, Connecticut-based Euro Pacific Capital.
That means the Dow average would need to pass 13,700 to get to real record territory, according to Schiff.
Article from Reuters.com
Saturday, August 05, 2006
US MARKET MOVEMENT MAY AGAIN INFLUENCE OUR MALAYSIA MARKET, EVEN REGIONAL
From previous post, we have discussed about the concern on US investors on interest rate rising again or not. If US investors have big move on their concern, Dow Jones has substantial up or down, then it may again influence our Bursa Malaysia market sentiment in near term. No doubt, the huge economy driving projects, 9MP inclusive SJER (Southern Johor Economic Region) project will drive our economy to another era. In other words, mid and long term perspective on our market is still encouraging.
WORLD MARKET ARE IN CAUTIOUS AGAIN - 5 AUG 2006
US market report on 4 Aug 2006, http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=urn:newsml:reuters.com:20060804:MTFH41239_2006-08-04_22-30-57_N04261350&pageNumber=1&imageid=&cap=&sz=13&WTModLoc=HybArt-C1-ArticlePage1
"Rising interest rates are a negative for stocks because they mean higher borrowing costs for corporations and consumers. Worries that U.S. economic growth has slowed too fast also have kept investors on edge.
Stocks rallied early on the jobs report, then reversed course to end down slightly as concerns about slowing growth offset optimism about the possible pause in rate hikes."
From the article above, we can see that US market is now in cautious on whether FED raise or not raise interest rate on Tuesday meeting. If FED raises interest rate, it has direct negative relationship to US stock market, if FED decides not to raise interest rate, US market may concern on slowing economy which may contribute to weaken company earnings. Therefore, we can see the negative sides on both decision.
US UNEMPLOYMENT RATE JUMPED, SLOWING ECONOMY MAY LEAD TO INTEREST RATE HIKE PAUSE
By Glenn Somerville
WASHINGTON, Aug 4 (Reuters) - U.S. employers added a fewer-than-expected 113,000 jobs in July and the unemployment rate jumped unexpectedly to 4.8 percent, confirming a slowing economy and igniting hopes for an interest-rate pause by the Federal Reserve.
Analysts said the key Labor Department jobs report on Friday has made it easier for Fed policy-makers to halt a two-year campaign of interest-rate rises when they meet on Tuesday.
Average hourly earnings continued to rise last month, despite signs of developing slack in the labor market.
The unemployment rate rose to its highest since a matching 4.8 percent in February, contrary to Wall Street economists' forecasts that it would be unchanged from June's 4.6 percent.
"There is no doubt this number has given the market the feeling the Fed is not going to raise rates on Tuesday," said Kevin Flanagan, a bond strategist with Morgan Stanley in Purchase, New York.
Bill Gross, the chief investment officer at Pacific Investment Management Co. (PIMCO) in Newport Beach, Calif., predicted flatly: "The Fed will definitely pause on Tuesday."
A Reuters poll, conducted after the employment data was issued and influenced by it, found 17 of 22 of the biggest Wall Street firms foresaw the Fed keeping rates on hold on Tuesday.
Stock prices rose strongly in early trading (4 Aug 2006) but, by the end of the day, optimism about a cap on rate hikes gave way to gloom that slower growth might mean weaker corporate profits.
Analysts had forecast a more robust 142,000 new jobs would be generated in July. The department revised June's new-job total up to 124,000 from a previously reported 121,000 and said that in May 100,000 jobs were created rather than 92,000.
Some analysts said the wage rises might give Fed policy-makers cause to worry that the inflationary impact of costlier labor has not made its way through to prices yet. If so, the U.S. central bank might want to raise rates again.
WHAT A WEEK : FED RALLY FADES - 4 AUG 2006
Investors spent the week consumed with anticipation about whether or not the Federal Reserve will increase the fed funds rate. Their sigh of relief Friday, when the Labor Department reported a weaker-than-expected payrolls report, quickly turned into a sigh of despair.
In a classic "buy the rumor, sell the news" phenomenon, the pre-jobs, pre-Fed rally faded as investors realized that a Fed pause does not guarantee a soft landing in the economy, nor does it necessarily mean an end to more rate hikes. The one thing a Fed pause does mean is that the economy is slowing, and that puts pressure on earnings growth.
"The 'Fed is done' fire behind buying stocks has run its course," says Peter Boockvar, chief market strategist at Miller Tabak. "Now it's about, 'look what we're left with.'"
On Friday, investors were left with a sinking feeling after early euphoria quickly evaporated. After rising more than 100 points earlier in the day, the Dow Jones Industrial Average fell 0.02% to 11,240.35. The S&P 500 dropped 0.1% to 1279.43, and the Nasdaq Composite slipped 0.35% to 2085.05. For the week, the Dow finished up 0.2%, the S&P rose 1 point to 1279.43, while the Nasdaq fell 0.4%.
By Liz Rappaport
Markets Columnist
8/4/2006 5:25 PM EDT
Markets Columnist
8/4/2006 5:25 PM EDT
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