Tuesday, January 20, 2009

January Effect Not Materialise.

World Financial Market performs badly this morning. It seems that they are going down further. "January Effect" didn't really materialise. How about the Chinese New Year Rally ? According to the charts reading it is better to put your money under the pillow rather than trying to catch cheap counters.

There is no indication that the share market is heading for better days. LCL Corporation Berhad, once a darling stock among speculators investor. Last few days this counter has been creating new low and today LCL drop another RM 0.055 to close in the afternoon session at RM 0.58 per share. LCL performance can be consider quite bad compare to the others.

Before the global financial crisis hit, LCL was one of the favourite counters among the speculators player but today LCL is hitting new lows. What really happen to this counter ? Recently OSK Research has downgraded LCL Corporation Bhd to a neutral at RM 0.735 from trading buy with a reduced target price of RM 1.09. With this downgrade it surely will post a little impact on LCL.

With today most of the share prices hitting at their lows, it would be better to monitor for a few more days. Whether they are going to stay at their recently low or creating more new low, the worst of all the global financial crisis seems just only half way and it still have long way to go.

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