06-June-2008 : ALAM May Go Up Soon

ALAM price is up and down between RM2.00 to RM2.10 for about 2 months long, vol was vary high at the day oil price go rocket high thank to Perdana Menteri Malaysia. But the ALAM price is not go down or up! Someone is buying ALAM with control price and some thing may happen soon.Now this share is under value and is below MA 50 and MA 200 line. If open at monday, KLCI drop back after today technical rebound, it's time to buy some share with low price. ALAM is one of the share may good to buy.

06-June-2008 : KNM is on the way down to RM 5.70

KNM is on the way down to RM 5.70 if you already sale out all your share before the right share issued, now is the time to buy back the share. Wait the price drop to RM 5.00 (2nd support line) to buy back the share. Share need to buy and sale to make profit, for now the good news and bad news are control to roll out to public so don't hold a share for too long.

06-June-2008 : 05-06-2008(THU) Fuel price hike shocks market

KUALA LUMPUR: Stock prices on Bursa Malaysia traded sharply lower on Thursday, as investors and the public reacted in shock to the large fuel price increases.

Effective Thursday, petrol prices were hiked by 41% to RM2.70 per litre and diesel by 63% to RM2.58 per litre. Electricity rates are expected to be raised by 26% next month and plantation and IPPs companies will be levied with "windfall taxes".

While the public had earlier been forewarned of higher fuels costs week, many had expected this to take effect only in August, or at least on a more staggered pace. However, the magnitude of the latest increase is large. And indications that prices may be adjusted further on a monthly basis will likely create more uncertainty and tighten consumer spending.

The fuel hike will have far reaching effects on consumers and businesses already grappling with the effects of higher inflation and food costs, and thinner margins. It will reduce disposable incomes and affect consumer spending - and raise inflationary pressures further since fuel and electricity usage is prevalent across all products.

Thus, consumers can expect a broad range of price increases in the coming days. Margins for some companies may be crimped if not all cost increases are passed down.

It wasn't surprising therefore that investors reacted negatively, sending the KLCI down sharply right at the open. The benchmark index lost 29.6 points to close at 1,223.6 points. Declining stocks beat advancing ones by a roughly 3-to-1 ratio on volume of 623 million shares.

Sectors most directly affected by the moves were among the biggest losers, notably the plantations, IPP, consumer and motor sectors. Losers include BAT, KL Kepong, DiGi, Public Bank-foreign, Tanjong, Bumiputra-Commerce and Bumiputra-Commerce.

The day's most actively traded stocks include IOI Corp, Resorts World, AirAsia, Sime Darby, AMMB, Lion Industries and Gamuda. Gainers include AV Ventures, Bina Puri and Muda Jaya.

Disquiet >Of subsidies and corruption

SUBSIDIES are on everyone’s minds these days.

Even as the rakyat is faced with the bleak prospect of a more difficult future as the reduction of subsidies impacts on their lives, the government has to figure out how to go about unraveling subsidy frameworks that, though attractive when introduced, are now threatening not only the competitiveness of the nation but also its sustainability.

There are risks — social, political, economic — that need to be confronted in an environment not necessarily conducive to objective and rational consideration of the very crucial issues involved.

Though complaining, and vehemently at that, is tempting, it will not get us very far. The fact that to a large extent the subsidy problems we face today are the result of poor economic management in the past does not help address the situation. Political consequences will follow; we have to deal with the issue.

As in other countries, change is necessary. The question for us really is what changes should be made and how they are going to be managed.

We pay taxes in various forms; they are the principle source of revenue of the nation. It is mainly these funds that are used to pay for the operating costs of a given year.

In the social democratic framework that we are supposed to have, some of this money is to be used to provide for basic needs such as healthcare, schooling and essential infrastructure such as a reliable police force, efficient and effective regulatory frameworks, electricity and clean water, and roads. This is not just about building hospitals and schools; it is also about maintaining them and ensuring that the services provided are of sufficiently high standard. The same goes for roads, water and so on.

This is how it is meant to be in theory. If implemented, many of the basic needs of an average household would be taken care of, without the need for additional expenditure. A significant amount of the monthly earnings of the average householder would be freed up, making it easier to face the prospect of increased prices from the reduction or even elimination of subsidies.

The reality is, however, very different. Those who can, choose private schools and private hospitals, use toll roads, and employ private security guards or live in gated communities. Do not just take my word for it — ask the average minister what his or her lifestyle choices are.

These choices are not necessarily prompted by elitism. It comes down to confidence, or the lack of it.

The truth is that the public services are worryingly deficient, if not in levels of competence then in resources, to an extent that for many they are no longer a viable choice.

This is especially true where children are concerned. Parents want to give their children the best, often at great personal sacrifice.

In some cases, there is no question of choice. The privatisation of water, electricity and energy production and the steady increase in their pricing have had a domino effect that has left many having to manage increasing expenditure on shrinking earnings.

Too slowly, Malaysians have woken up to the painful realisation of how everything happening on the macro level around them has a direct bearing on their lives. The widening poverty gap is leaving us poorer by the day.

Which is why being able to depend on public services is so crucial. As we have however seen, that is not something we can do. What we are paying taxes for then?

It is indisputable that corruption has to a large extent pushed us into the corner we are. We are paying the hidden costs. Things are that much more expensive or that much more inefficient because somewhere, at our expense, someone is making a gain or someone who was not good enough is being given a contract.

And the reality is that when someone makes a corrupt gain in the millions of ringgit, that is our money being handed over. That is our right to development that is being denied.

It is a sad truth that many of us will suffer the impact of a removal of subsidies, and suffer badly for it, because we have been robbed of the means to face these challenges by endemic corruption.

We stand alone purely because the money we invested over the years to weave our safety nets has been stolen from us. There are no nets.

Managing change as such must involve increasing integrity, accountability and transparency.

Corruption cannot be a part of the equation. Improving public service, regulating effectively and efficiently where it is needed and ensuring that things are priced based on their value rather than the private needs of a fat-cat official, will make it easier for Malaysians to deal with increased prices where those are really needed.

That is the least this government can do for us. It will save a staggering amount of money from cutting back on subsidies, money that can be deployed more effectively and equitably. Money that leaves no room for excuse.

04-June-2008 : Market seen lower ahead of fuel subsidy plan

Malaysian Stocks-Market seen lower ahead of fuel subsidy plan KUALA LUMPUR, June 4 (Reuters) - Malaysian shares are expected to ease on Wednesday, ahead of the announcement of a new fuel subsidy plan, which is expected to result in higher pump prices in August. The government said on Tuesday it would scrap fuel price controls in August in a move that could double Asia's second-cheapest pump prices and stoke inflation already at 15-month highs. "Investors are cautious as details about the new subsidy scheme are sketchy," said an analyst at a domestic brokerage. The government will flesh out plans on Wednesday to overhaul a fuel subsidy system that eats up a third of the budget of Asia's largest net oil exporter. Price controls could be replaced by quotas or cash handouts, the domestic trade minister said. A fuel hike could also stoke public anger against Prime Minister Abdullah Ahmad Badawi at a time when he is trying to arrest a slide in public support against the government and fend off a challenge to his leadership. Dominant power distributor Tenaga Nasional Bhd (TENA.KL), might be in focus on Wednesday after the company confirmed it was in talks with leisure group Genting Bhd (GENT.KL) to acquire the latter's energy assets, dealers said. On Tuesday, the Kuala Lumpur Composite Index (.KLSE) fell 1 percent to 1,257.6 points. The June futures index (KLIM8) put the index at 1,253 points. Here are news stories and factors that may affect the stock market on Wednesday.

STOCK DOWNGRADE BY GOLDMAN SACHS - In a climate of falling global markets, the local bourse suffered yet another downgrade, this time from Goldman Sachs, which named Malaysian stocks least favoured in South-East Asia on concerns over political volatility, the Star newspaper reported. (Reporting by Soo Ai Peng; Editing by Faisal Aziz and Anshuman

04-June-2008 : KNM-OR Open price at RM 2.75!

Total of 267,807,215 new share is issued and at 1st trading day, 5,044,300 units of share change hand (about 1.88%). KNM-OR price drop to lowest at RM 2.25 and highest is RM 6.00. I'm vary surprise why had someone buy the share at RM 4.00 with 277,700 units equal to RM 1,110,800! The right share price is RM 4.00 base on the issued price, just that because now a lot of bad news flow out and still bad news are coming, who holding a lot of share play a panic sales to buy share with lower prices. I think the KNM-OR will go up at friday and end with price around RM 3.00.

KLSE now is vary unstable and more bad news will come because most of the big project ware suspended and raw material price going up like rocket, add to the wost is political issue. 1H08 will going to been a bad result for most of the big company.

04-June-2008 : 03-06-2008(TUE) Lackluster

KUALA LUMPUR: Investor interest in equities was lackluster Tuesday. Market volume was, once again, relatively low while share prices were mostly trapped within very narrow ranges. There was little catalyst to encourage investors back into the fray.

The KL Composite Index traded almost flattish for the better part of the day. Conditions turned a bit more negative after the break, likely affected by losses in key regional markets. Even so, the benchmark index held up fairly well to end the day just about five points lower at 1,257.6 points.

Market breadth was negative throughout the day. Given prevailing clouded outlook few will be motivated to put fresh money into the market. At the close, the number of losing counters outpaced advancing ones by a ratio of roughly eight to five.

Reflecting investors' ambivalent attitude, market volume continued to on the thin side. Gamuda was the day's most actively traded stock. Its shares gained 13 sen to RM2.63 on bargain hunting after plunging late last week. Nevertheless, investors are likely to be more cautious now given the bleaker outlook on its investments in Vietnam. Total market volume came up to nearly 465 million shares, an improvement on the previous day's level.

AirAsia shares were also among the actively traded. The stock has been weighed down by rising oil prices. Crude oil futures traded on the New York Mercantile Exchange is currently hovering around US$127 (RM412.75) per barrel, well above last year's average prices.

Some of the bigger losers for the day include Hong Leong Bank, Parkson, KNM, DiGi, IJM and IOI Properties. At the other end, Lafarge Malayan Cement, BAT, Gopeng, YTL Cement and Petronas Gas were among the top gainers. Cement stocks are reacting to indications that the government is ready to do away with existing price caps, similar to the recent move liberating the steel sector.

03-May-2008 : 02-06-2008 (MON) Lower on lack of fresh leads

KUALA LUMPUR: Stock prices on Bursa Malaysia traded broadly lower on Monday, due to a lack of fresh external and domestic leads after the end of the first quarter earnings season.

There was little excitement in the just concluded earnings season, apart from better than expected earnings from steel and plantation companies. However, these two sectors enjoy primarily commodity-based prices.

On the other hand, higher costs pressures were evident in quite a number of industries, particularly the construction and property sectors, which are being hit by rising steel costs.

The KLCI's losses on Monday were also heightened by a last-minute upward spurt last Friday, which could not be sustained.

The benchmark was in fairly deep negative territory throughout the day on Monday. It ended at its intra-day low, down 13.6 points to 1,262.5 points, after a last-minute spurt of selling added another roughly five points of losses. Market breadth was negative with declining stocks beating advancing ones by 2-to-1 ratio.

Trading volume was very low, with just 391 million shares changing hands - the third lowest level of the year. This attests to the unwillingness of investors to participate in the market given the current spate of economic and political issues, locally and abroad. Wall Street's rally from mid-March also appears to be petering out.

With investors still generally sidelined, the stock market may likely continue to drift for a while - despite the appealing valuations of many stocks, particularly the medium-and small cap ones.

The day's most actively traded stocks comprised Gamuda, Muda, IOI Corp, Lion Corp, Lion Industries, MRCB and TM. Gamuda's shares rebounded only very slightly from large losses on Friday due to concerns over its Vietnam projects given that country's economic issues.

Major gainers include BAT, Dutch Lady, Kulim and IOI Properties. Losers include DiGi, MPI, KL Kepong, Public Bank-foreign, Parkson and Berjaya Land.

02-June-08 : Is it MAYBANK really vary bad?

Maybank is testing 2004 support on relatively high volume. News is extreemly bad as perceived by the investment analysts and most fund managers. Perceived bad news are the recent aquisitions in Indonesia and Pakistan which some analists say are unstable countries etc. Some are even forecasting that Maybank will cut their dividend

Even Tan Teng Boo of I Capital downgraded Maybank from Buy to Hold.

On the other side of the coin if Maybank was so financially in trouble why did ASB, EPF and PNB buy 38,363,000 shares (0.786%) from 30 April to 16 May ? Why have other prominent funds and inside money been buying Maybank in the face of extreme bad news ?

Most of the big funds at end of last year 2007 have Maybank share on hand and what I know is they still holding the share just that they have sold it and buy it back from early of March 2008. What surprise me is the total share on hand for all this big funds is up!Maybank didn't do any share buy back, where are all the share go when sell by retail traders? All the big funds is buying.

Smart money buys under the cover of bad news. They do not want to push up the price against their own buying. That is bad for business. I would not be surprised if much of the bad news is manufactured by insiders to keep the price down and at the same time buy with low price from retail traders like us.

I personally Q buy at RM 7.00 to take some profit along with the big funds.

02-June-08 : KLCI is on the way down

Overall I believe the KLCI is susceptible to more downside risk going forward, possibly backing off from 1,275 its immediate resistance which remains a challenge for the key KLCI to overcome in the near future to slide toward its first support level of 1,235. Below which, the next support line stands at the psychological mark of 1,200. The broadly thin market activity, on the other hand, may result in a choppy trading pattern for the benchmark index, even as the number of declining counters is likely to be greater then the advancing stocks on most days. Last Friday money is start flow out from KLSE, the market now is vary unstable due to big funds is staring to come out. I had pull out all my stock last Fridays to get my profile.