20060206 In an rising rate environment (which we might or might not have at present) this article highlights the possible asset switching or reallocation from the banks with different portfolio spread of fixed v floating interest rate assets. Could be worth keeping an eye on this aspect of the banking sector on Bursamalaysia. 

20060206 Some positive reports come out, slowly but surely, there is a realisation that the bull is upon us. The apathy and total disregard for the Bursa stocks we saw in Dec 2006 was just a classic capitulation, whereby whoever couldn't stand it totally cut loss of the stock positions held and gave up on Bursa stockmarket.(including one Singapore fund manager described by Amresearch as having "totally sold out of his Malaysian stock portfolio) When people hold on to losses for a long time capitulates, it signals the beginning of the end for the bear and a new beginning. It is a symptom of Asian markets where not many are willing to stick their necks out to anticipate a possible turn in markets. Just last week's theedge daily newspaper's roundtable meeting with a few research heads who were "unanimously not bullish" on the Bursa stocks. Now we have to see how far the market can go, it may yet be not too late for the 'latecomers'. 

20060206 Market Roundup JetFM

Welcome Mat for the Year of the Dog

A late surge in buying left the KLCI near its day high at close. The KLCI added 1.54 point (+1.54%) closing at 929.39. Retaill investors swamped back into the market nudging the trade volume today to more than 1.011 bln shares traded. Key blue chips barely budged but gainers swamped losers 451 to 371 but 274 counters were unchanged. Indicative of renewed retail interest, the Second Board Index rose 1.60points (1.80%) to close at 90.32. The Emas Index rose 0.40 points (0.19%), closing at 212.25.

Amongst the actively traded issues, volume leader Fotronics rose 2.5 sen closing at RM0.41. Iris Corp rose 1 sen closing at 29 sen. AP Land rose 8 sen closing at 28 sen. Berjaya Corp rose 0.5 sen, closing at 15 sen. Recently listed Wimems rose 5.5 sen to 73 sen. Kai Peng added 7.5 sen, closing at 34.5 sen. Compugates rose 19 sen closing at RM1.87 while Latexx rose 21.5 sen to end at RM0.715.

Among big gainers were Kosmo Technology Industrial rose RM1.36, closing at RM1.36. The stock has risen sharply after its debut on June 30 2005. The company's mobile-phone unit signed a deal with Saudi Television Manufacturing Co. to build a plant in Saudi Arabia. Kosmo's 30 percent-owned unit, M dot Mobile Sdn., will make at least 1 mln mobile phones a year which the company expects will generate an estimated RM2 bln in sales in the next five years. WTK made one of its rare foray into the top gainers' list, rising RM0.22. Supermax which will see its new shares issued following its bonus issue listed tomorrow, rose 20 sen, closing at RM3.88. Dreamgate rose 19 sen to close at RM1.46.

In corporate news, Antah Holdings Bhd said trading in its shares had been suspended since February 2 as the company is yet to release its annual audited accounts for the financial year ended June 2005. The company was to have released the results by Oct 31 2005. Suspension will continue until further notice.

Bucking the trend in the market, Landmarks shed 11 sen or 12%, closing at 95 sen after the Securities Commission rejected its bid to sell its signature Sungei Wang retail mall to a REIT.

Nam Fatt added 2 sen, or 4.9%, to close at 43 sen. The construction company said it received a RM261 mln contract to build 6,500 low-cost apartments for the National Housing Authority in Thailand.

Telekom Malaysia Bhd. added 10 sen, or 1%, to RM9.85 despite news its unit Celcom will pay USD232 mln (RM870 mln) in compensation to DeTeAsia as compensation under a Tribunal Award by the International Court of Arbitration of the International Chamber of Commerce in London. Its other unit, Fiberail, has received regulatory approval to provide broadband network services throughout Malaysia.

In earnings announcements security document manufacturer and operator of the local mint Fima Corp said its 3Q2006 earnings to Dec2005 rose to RM11.48 mln up from RM7.0 mln in the corresponding quarter a year ago. For the 9-month period earnings rose from RM18.21 mln to RM24.69 mln.

Leong Hup Holdings, the largest integrated poultry player in Malaysia, is in talks to sell its 530-acre freehold land in Johor Bharu worth RM138 mln,, which has been approved for a proposed mixed development. The land is valued at RM6 per square foot, compared with RM3.00 per sq ft when it was acquired in late 1996. Leong Hup is benefiting from the recent 20 sen per kg hike in
ex-farm chicken price, lower feed cost, higher efficiency of its farm and hatchery. Management says the 20 sen price hike will add RM12 mln annually to profits.

In the region, stocks mostly rose. Taiwan's Weighted rose 1.90%, leading the pack. Hong Kong's Hang Seng rose 0.77%, the Korean Kospi rose 0.61% while Singapore's STI rose 0.38% while Japan's Nikkei rose 0.53%. Jakarta's Composite rose 0.12%. Bucking the regional trend were the Philippines' Composite and the Thai SET indices down 0.256% and 0.40% respectively.

20060203 3:48 pm. Expectatns were for a quiet market with few participants. Overseas markets were mostly weaker, but at this time, Bursa CI +9 pts, Gainers 544 Losers 213 Unchanged 215 Untraded 360 volume 676m shares worth RM1.122 billion. Oops what happened? Bursa is UP and with brisk trade from the above activity numbers. The round table in theEdge paper of experts were unanimously "not bullish". This is an example of how the smart money catch the unwary off guard, they move in when people all think there is no action, and when the masses do catch up and become overcome by greed and the feeling of 'not wanting to miss out' the smart $ is getting out and the masses are left holding the box when the music stops.