Bursa Index rises on bargain hunting but with politic concerns linger

KUALA LUMPUR: Stock prices on Bursa Malaysia closed higher on Friday, helped by bargain hunting activities after the recent steep falls. The local stock market also took its cue from Wall Street, where the major indices posted modest gains following a drop in oil prices. However, investors stayed cautious due to lingering political uncertainties and external economic concerns.

Market breadth was more mixed, with advancing stocks beating declining ones by a slim 3-to-2 margin. Trading volume remained low with just 450 million shares changing hands.

The KLCI was in positive territory throughout the day, rising as much as 12 points in the morning. It gave back much of its gains in the afternoon, but managed to close 10.3 points higher at 1,206.7 points, helped by a late spurt of buying.

Volume leaders on Friday comprised mostly blue chips such as Gamuda, IOI Corp, Maybank, Genting, Resorts and TM. Gainers include BAT, KL Kepong, Asiatic, TMI and Public Bank-foreign. Losers include DiGi, Nestle and MISC.

It is unclear where the market will head next, given the lingering political and external economic uncertainties.

Political uncertainties have emerged as a key factor after the Sabah Progressive Party (SAPP) on Wednesday declared that it will support a vote of no confidence against the Prime Minister in the upcoming Parliament session on Monday. Speculation is rife that the party will pull out of the Barisan Nasional coalition and prompt other Sabah parties to do so as well.

The latest developments will sideline investors further, as investors await for developments to unfold. Confidence has already been affected by prevailing external uncertainties and rising inflationary pressures following the recent sharp petrol price hike.

The upcoming FOMC meeting on Tuesday is not likely to see a hike in US interest rates, but investors will be assessing the Federal Reserve's tone for future rate hikes. The Fed Fund futures are pricing in a high probability of a rate hike from 2% to 2.5% by the end of the year.

Off Market Transactions On KLSE (20 June 2008)

Stock	Dir-Vol	Dir-Val	Av-Price
TA-WB	16,170,000	2,102,100	0.13
KRETAM	15,589,726	17,616,390	1.13
ENVAIR	11,744,000	3,288,320	0.28
DBE	4,000,000	780,000	0.195
PELIKAN	2,000,000	5,200,000	2.6
PERISAI	1,500,000	1,875,000	1.25
ECOFIRS	1,335,500	207,003	0.155
OCB	800,000	480,000	0.6
CANONE	800,000	640,000	0.8
METROK	790,000	853,200	1.08
HUPSENG	600,000	780,000	1.3
ITRONIC	533,000	373,100	0.7
MAEMODE	347,800	500,436	1.439
LBS	200,000	72,000	0.36
AXIS	200,000	328,000	1.64
TRACOMA	185,000	102,675	0.555
GUOCO	100,000	118,000	1.18
SUNRISE	50,400	90,720	1.8
SIME	50,000	465,000	9.3
LIONCOR	45,000	29,790	0.662
EQUINE	37,100	18,439	0.497
GENTING	21,000	119,900	5.71
KURNIA-WA	10,000	13,200	1.32
HUNZPTY	4,000	7,000	1.75

Market is confluence of negative developments on Malaysia politic

KUALA LUMPUR: Stock prices on the Bursa Malaysia took another beating Thursday. Investor confidence has been battered by a confluence of negative developments of late. We do not expect trading conditions to improve in the near term.

Domestic political uncertainties continue to weigh on the market following the Sabah Progressive Party's (SPP) unprecedented move to table a vote of no confidence against the Prime Minister. It did not help sentiment when Wall Street tumbled overnight.

US stocks were rattled by persistent worries over its flagging economy and fallout from the subprime crisis. A weaker US economy would, in turn, spell tougher times ahead for export-oriented Asian countries. Equity markets in the region saw heavy selling Thursday with most of the relevant bellwether indices closing sharply lower.

At the same time, stubbornly high crude oil prices are compounding concerns by fuelling inflation. Crude oil futures traded on the New York Mercantile Exchange is currently hovering around US$136 (RM448.80) per barrel despite suggestions of reduced demand on slower global economic growth.

The KLSE Composite Index opened sharply lower and remained in the red for the rest of the trading day. The closely monitored benchmark index closed 16 points lower at 1,196.4 points. This brings the index's total loss to nearly 42 points for the past three days. Sharp losses in select blue chip stocks may suggest some bargain hunting, but we suspect buying activities will be tempered by extreme caution.

Market breadth was negative throughout the day. At the close, the number of losing stocks outpaced gaining ones by roughly eleven to two. KL Kepong was the day's biggest loser. The stock fell 80 sen to RM17.40. Other big losers include Bumiputra Commerce, Public Bank, Tanjong plc and Batu Kawan. About 500 million shares changed hands. Some of the most heavily traded counters were Genting, Gamuda, Resorts World, IOI Corp and Telekom Malaysia.

Off Market Transactions On KLSE (19 June 2008)

Stock	Dir-Vol	Dir-Val	Av-Price
ENVAIR	5,432,100	651,852	0.12
WEIDA	3,075,550	1,568,531	0.51
PBBANK	2,000,000	21,000,000	10.5
SUPERLN	1,769,200	1,326,900	0.75
CONNECT	1,480,000	51,800	0.035
METROK	1,206,041	1,302,524	1.08
BSTEAD	983,000	5,249,220	5.34
QSR	850,000	1,938,000	2.28
PICORP	836,000	652,080	0.78
HUAYANG	550,000	357,500	0.65
LBICAP	500,000	300,000	0.6
MILUX	290,000	304,500	1.05
DRBHCOM	190,000	190,000	1
OGAWA	173,000	51,035	0.295
ITRONIC	144,000	100,800	0.7
MJPERAK-PA	119,000	3,570	0.03
ANNJOO	100,000	370,000	3.7
RBLAND	100,000	182,000	1.82
GENTING	100,000	585,000	5.85
MBSB	70,000	106,400	1.52
TIMECOM	60,000	23,100	0.385
YNHPROP	50,000	108,000	2.16
REXIT	50,000	79,000	1.58
WWE	29,000	2,900	0.1
EQUINE	20,000	10,400	0.52
SYMPHNY	20,000	5,400	0.27
KURNIA-WA	10,000	13,300	1.33

BN is going to hold Emergency at 2.30 pm for some announcement ! Come up from KLSE!

If you have a lot of share in KLSE , come up now and buy back after the Tsunami!

Malaysia Oil Subsidy Analogy

Something I received from email on "subsidy" analogy. How true ???? may be economist will understand it

The story about "subsidy"…

A man called Maha owns a farm which can produce 10 apples every day.
He has 5 workers to operate the farm.
Each of them eats 1 apple daily and it is enough to keep them operating the
farm normally.
The remaining 4 apples, the landlord sells them at RM10 each and he earns
RM40.
He uses the RM25 to improve the farm operation and facilities.
He gives RM2.00 to each of his workers and he keeps the remaining RM5.00 as
profit.
Day by day, the farm is well developed and all of the 5 workers are happy
with the money they can save.

When Maha passed away and there is a new landlord, Abdul comes to continue
the farm operation.
He says to the workers:" We need to improve the farm quality and redefine
our way of thinking.
From now on all of you only need to pay RM1.00 for each apple you eat.
It is very cheap as the price is RM10 each outside the farm."
The workers have no choice but to pay RM1.00 for the apple they eat daily.
Their earning decrease from RM2.00 to RM1.00 per person.
As usual, Abdul sells the 4 apples and he gets RM40.
He uses RM25 for farm improvement and pays RM10 to his 5 workers.
He gets RM5.00 as profit. On top of that, he gets another RM5.00 from the
apples that he sells to his workers.
In total, he gets RM10 as profit every day.

Soon, the apple price increases to RM20 each.
The new landlord gets a higher profit as he gets RM80 for the 4 apples he
sells daily.
Then, he decides to give the farming improvement contract to one of his
close friend, Samy.
Samy says:"Apple cost naik, improvement cost also misti naik."
So, the farm improvement cost increases from RM25 to RM50.
In actual, the improvement only cost RM30.
The remaining RM20, Abdul and Samy share evenly among themselves.

Let's calculate how much Abdul gets daily:

RM10 (from farm improvement cost)
RM20 (Net profit by selling 4 apples: [Gross profit, RM80] - [Improvement
cost, RM50] - [Wages RM10] = RM20)
RM5 (from selling apples to his workers)

In total, Abdul gets RM35 daily compare to RM10 initially when he takes over
the farm from Maha.
His profit increases RM25 and the workers are still getting RM1.00 daily per
person.
The greedy Abdul does not want to stop there.
One day, he says to his fellow workers:" You see ah, the current market
price for one apple is RM20 and you are only paying RM1.
See how lucky you are! I have to SUBSIDY RM19.00 for each of the apple you
buy and total I need to SUBSIDY RM95.00.
This will greatly burden the farm and we might get bankrupt if we continue
like this.
In order to avoid bankruptcy, I need to increase the apple price that you
buy from RM1.00 to RM1.50 and I will bear the remaining RM18.50 per apple as
my subsidy to you all. "
So, greedy Abdul adds RM2.50 to his current profit and the number becomes
RM37.50.

After you have read the story, I am sure you have already understood the
meaning of "SUBSIDY" given by the government.

The RM95 subsidy never existed in the first place and so was the RM52
billion fuel subsidy generously "given" by the government

Cutting fuel subsidy is actually just a reason to steal money from your
pocket.
Are you gonna stand there and let them rob you

Off Market Transactions On KLSE (18 June 2008)

Stock	Dir-Vol	Dir-Val	Av-Price
EONCAP	140,010,526	1,337,100,523	9.55
MULPHA	10,000,000	10,200,000	1.02
EKIB	2,150,000	989,000	0.46
MYEG	1,413,333	1,272,000	0.9
ASUPREM	1,350,000	742,500	0.55
QSR	450,000	1,035,000	2.3
BORNOIL-WB	300,000	33,000	0.11
KNM	160,000	1,036,000	6.475
KRETAM	150,000	187,500	1.25
PA	120,000	103,200	0.86
AMMB	100,000	362,000	3.62
SAPCRES	100,000	145,000	1.45
ANNJOO	100,000	381,000	3.81
RBLAND	100,000	195,000	1.95
COMMERZ	50,000	452,500	9.05
KHSB	44,000	30,580	0.695
PETRA	25,000	91,500	3.66
SCOMI	25,000	20,375	0.815
MAYBANK	20,000	138,000	6.9
WELLCAL	15,000	14,700	0.98

Malaysian Shares Market close lower on political concerns

KUALA LUMPUR (Thomson Financial) - Malaysian shares bucked the regional trend and closed lower on Wednesday as political concerns weighed on the market. A small Malaysian party said Wednesday it will table a no-confidence vote against Prime Minister Abdullah Ahmad Badawi on Monday, in an unprecedented move that could spark more revolt against the premier. "People have lost confidence in the present leadership of Abdullah Ahmad Badawi," Chua Soon Bui, vice-president of the Sabah Progressive Party (SAPP), said in a statement. The east Malaysian party, which has two members of parliament in the 14-party ruling coalition, has little political clout but there are concerns this could spark a chain reaction from other coalition members. The vote comes as Abdullah grapples with a challenge to his leadership from within his own party and public anger against the rising cost of living. Abdullah's Barisan Nasional coalition suffered its worst election setback in 50 years in March, losing its two-thirds parliamentary majority and surrendering five states to the opposition. The Kuala Lumpur Composite Index (KLCI) was down 15.17 points or 1.2 percent at 1,212.59. The FTSE Bursa Malaysia 30-large cap index lost 98.56 points or 1.2 percent to 7,836.64 while the FTSE Bursa Malaysia second board index dropped 15.01 points or 0.3 percent to 5,596.13. Decliners led advancers 530 to 150, with 237 stocks unchanged and 489 untraded. Trading volume was low at 475 million shares valued at 1.2 billion ringgit. ($1 = 3.24 ringgit)

Buying and selling signal In Share Market

THE price movement of a stock is dependent on the demand and supply of the stock, which in turn is influenced by the buyers’ buying interest and the sellers’ selling interest.

Every buyer or seller has different purposes when entering into a trade. The followings are general “rules”, which provide us with some hints on whether the stock price will probably go up or down.

Investors should not view these “rules” as a foolproof method that will hold true all the time. There are certain occasions that market manipulators might be using these “rules” to mislead the general public.

Rule 1: Buyers are showing small orders and sellers are showing big orders. However, the stock prices are holding quite well – buy signal.

When we want to purchase a stock, we will call our remisiers to check on buying or selling orders on the stock. A lot of selling orders with only a few buying orders on the stock may imply that the stock price would come down.

However, if the stock prices are holding quite well, it could mean there are some net buyers accumulating the stock.

The reason for this is buyers may refuse to show their buying orders to attract sellers to sell at the buyers’ buying price.

Showing high buying orders may delay selling interest, as sellers will wait for the buyers to buy at their selling price. Hence, it is a “buy” signal if we notice the above rule on any stock.

On the other hand, if buyers have big orders and sellers have small orders while the stock price continues to drop, it might be a “sell” signal that this stock has some big sellers that are not willing to show their selling orders but they need to sell the stock now.

Showing big selling orders may cause panic on the stock. Hence, to sell at higher prices, sellers will try to hide their selling orders.

Logically, if a stock has a strong buying interest, the stock price should go up instead of come down. Hence, the weakening stock price may imply that sellers outnumber buyers.

Rule 2: The overall market is weak but your stock price is moving against the overall market trend – buy signal.

In a down market, if a stock that you own is inching up steadily despite the overall weak stock market sentiment, this may imply that there are some net buyers on this stock.

We view this as a “buy” signal where buyers are eagerly accumulating the stock in spite of the weak market. In most instances, the stock price will move higher the moment the overall market sentiment recovers.

In contrast, if the overall market is moving up but your stock is being beaten down, it is a “sell” signal. Normally, insiders are aware of certain crucial bad news that is still not available to the market yet.

Rule 3: Stocks carry a lot of bad news and are trading at high volume but stock price remains stable – buy signal.

Sometimes a certain stock is facing huge bad news but the stock price is holding on quite well. Normally, it may imply that buyers are not worried about the market concerns on this stock. The current stock price may have discounted all the bad news.

In contrast, if a stock, despite having all the good news in the media, continues to see its price decline, this is a “sell” signal that shows there are certain sellers who have some concerns over the stock, but the overall market is still not aware of the news.

Wall Street go lower on crude oil volatility

KUALA LUMPUR: Stock prices on Bursa Malaysia closed broadly lower on Tuesday on very low volume, as investors continued to exercise caution in the wake of rising fuel costs, inflationary pressures and the impact on the broader economy.

External concerns remain uncertain, with Wall Street and crude oil exhibiting high levels of volatility in recent days as investors react to the prospect of higher inflation and likely interest rate hikes in a slowing economy. On Monday, the price of crude oil fluctuated within a band of US$7 (RM23.10). It rose to a new intra-day record of US$139.89 per barrel, before settling at US$134.61.

The sharp movements in oil prices also sent Wall Street gyrating as well. The KLCI took its lead from the fall on Wall Street, opening lower and staying in negative territory throughput the day. The index started off unchanged and soon slipped into negative territory, where it stayed for the rest of the day. The KLCI ended 10 points lower at 1,227.8 points.

Declining stocks beat advancing ones by a seven to four ratio. More tellingly, trading volume dropped to just 313 million shares, from 387 million on Monday. This was its lowest daily trading volume to date as investors remained cautious.

Volume leaders on Tuesday comprised mostly blue chips such as IOI Corp, TM, Sime Darby, Maybank and Gamuda. Gainers include palm oil stocks like PPB, SOP and KL Kepong, as well as Takaful. Losers include BAT, KNM, Tenaga Nasional and Bumiputra-Commerce.

Meanwhile, adverse global weather conditions, particularly flooding in the US mid-west, are also affecting crops and raising agricultural prices, particularly corn and soybean. The price of corn, for instance rose to record high of US$8 per bushel on Monday. Firmer prices of the soybean complex and in particular soyoil will help palm oil, which will be positive for palm oil stocks.

High Vol on Sarawak Oil Palms Bhd (SOP) !

Price	Trades	Buy Queue	Sell Queue	Unknown	Total
6.1	1			160	160
6.15	4		101		101
6.2	10	100	30		130
6.25	22	190	105	6	301
6.3	6		232		232
6.35	46	1,032	185	10	1,227
6.4	44	176	727		903
Total	133	1,498	1,380	176	3,054

( lot size : 100 unit )

The vol for yesterday (17-06-2008) is big about 305,400 unit and there is few day SOP trading in hight vol with price up only a bit. I think this is a accumulation action by some fund manager.

Off Market Transactions On KLSE (17 June 2008)

Stock	Dir-Vol	Dir-Val	Av-Price
MPI	5,250,000	37,275,000	7.1
MTRONIC	5,000,000	325,000	0.065
QSR	1,094,000	2,735,000	2.5
N2N	786,000	373,350	0.475
KZEN	700,000	210,000	0.3
TALAM	600,000	132,000	0.22
EKSONS	516,100	516,100	1
MERCES	497,000	82,005	0.165
RBLAND	400,000	796,000	1.99
CANONE	395,600	316,480	0.8
DRBHCOM	300,000	315,000	1.05
GPLUS	300,000	600,000	2
MINPLY	300,000	120,000	0.4
PBBANK	270,000	2,943,000	10.9
LIONIND	243,000	689,400	2.837
MHOUSE	200,000	120,000	0.6
MRCB	191,100	259,896	1.36
KENMARK	189,000	160,650	0.85
MAYBANK	150,000	1,093,500	7.29
AMMB	100,000	368,000	3.68
TA	100,000	101,000	1.01
LIONDIV	100,000	147,000	1.47
BSTEAD	90,000	504,000	5.6
RCECAP	65,000	37,700	0.58
SPSETIA	49,800	193,224	3.88
TMI	31,000	221,650	7.15
PMHLDG	10,000	1,300	0.13
SIME	6,000	60,000	10
GENTING	4,000	24,800	6.2
APM	4,000	7,240	1.81

PBBank setting up a strong base at RM10.70

The time to buy PBBANK is come! PBBANK is a cash rich counter and ever year pay out good dividend. For now, the market is unstable so better keep the money in bank. ( Buy Bank Share better put money in FD ).

Off Market Transactions On KLSE (16 June 2008)

Stock	Dir-Vol	Dir-Val	Av-Price
PJI	4,100,000	184,500	0.045
MOBIF	2,500,000	475,000	0.19
OCTAGON	1,500,000	1,350,000	0.9
YILAI	800,000	744,000	0.93
HARBOUR	490,700	358,211	0.73
TENAGA	400,000	3,396,000	8.49
DRBHCOM	300,000	318,000	1.06
TRACOMA	240,000	139,200	0.58
MINPLY	162,600	69,918	0.43
RBLAND	100,000	195,000	1.95
TCHONG	100,000	182,000	1.82
IJM	100,000	560,000	5.6
GENTING	22,000	126,695	5.759
AMTEL	20,000	14,000	0.7
SCOMI	15,000	11,775	0.785
OIB	15,000	17,100	1.14

Mixed trading despite Bursa Malaysia Index (KLCI) rebound on 16-June-2008

KUALA LUMPUR: Taking its cue from a rally on Wall Street last Friday, most regional markets rebounded on Monday after a weak performance last week due to inflation and interest rate fears.

The KLCI rose in tandem, and was in positive territory throughout the day. The benchmark index gained as much as 12 points just before the lunch break, and closed 8.7 points up at 1,203.1 points.

The index was helped by gains in several blue chips, notably BAT, Tanjong plc, TMI, YTL and Public Bank-foreign. Volume leaders include Liqua, IOI Corp, AirAsia, Maybank and Gamuda. Losers include PPB, LCL and Kim Hin.

Unlike the headline index though, the broader market, was considerably weaker - continuing a trend that has since become quite common for some time. Market breadth was negative for much of the day - at about 3-to-2 down, before reversing to about 7-to-6 at the close.

Trading volume also remained very thin with just 387 million shares changing hands, one of the lowest so far this year. The weak market breadth and low trading volumes reflect investors' continued sense of caution, given the number of domestic and external economic issues.

Domestically, the recent sharp hike in petrol prices will affect consumer demand. With companies mulling over price increases as well, the full impact of belt-tightening measures will be felt in the coming months - together with a rise in inflation.

Externally, inflation remains a big worry, as central banks struggle to contain prices even as growth weakens. In the US, the interest rate downcycle appears over and the Federal Reserve is now hinting at raising rates. This could bring more pain to the US economy and the still struggling housing sector.

In the last few weeks, Russia, Brazil, Vietnam the Philippines, Indonesia and India have all raised interest rates, while China instituted more credit tightening moves.

Blog Malaysia

Blogging Fusion

Blogging Fusion Blog Directory

Off Market Transactions On KLSE (13 June 2008)

Stock	Dir-Vol	Dir-Val	Av-Price
TAMCORP	12,054,253	3,616,276	0.3
GLOBALC	10,000,000	3,300,000	0.33
MAYBANK	7,569,300	55,255,890	7.3
NPC	5,000,000	13,500,000	2.7
EONCAP	2,300,000	11,270,000	4.9
JAVA	2,000,000	3,200,000	1.6
KNM	1,200,000	7,740,000	6.45
OGAWA	785,000	235,500	0.3
MERCES	383,400	63,261	0.165
DRBHCOM	300,000	315,000	1.05
BSLCORP	300,000	135,000	0.45
RAMUNIA	296,000	446,960	1.51
ILB	250,000	215,000	0.86
KULIM	210,000	2,011,000	9.576
KZEN	112,000	31,360	0.28
RBLAND	100,000	193,000	1.93
GAMUDA	100,000	265,000	2.65
TM	80,000	249,600	3.12
TMI	70,000	490,700	7.01
IOICORP	60,000	433,200	7.22
TENAGA	60,000	504,600	8.41
VITROX	54,900	40,077	0.73
HWGB	50,000	14,750	0.295
ULICORP	50,000	20,500	0.41
SUIWAH	30,000	35,400	1.18
TDM	10,000	21,300	2.13
KSL	33	35	1.06