Wednesday, April 29, 2009

Watch Out For The Swine Flu. Might Cause Major Disaster To The World Financial Market ?

Yesterday the KL Composite Index closed lower. The index was down -14.42 points to close at 965.70 points. With this kind of formation (Bearish Engulfing Pattern) the KL Composite Index should take a pause and will try to adjust it’s recently uptrend. We might be seeing more selling pressure coming in.

One thing for sure, I will know how to unload any of my shares in future as I have learn how the share market react during this few weeks of uptrend. As long as if we bought any counters from the beginning of the uptrend, we shouldn't having any problems to unload at the end of the bull runs.

As we can see, there will be some sign or indicators coming out to alert us in the even that the share market was already over bought. I have made a few mistake of letting go some of the shares too early and I was’t stable enough to hold the shares longer (lock in profit early).

One lesson that I have learned from this uptrend is never try to be judges to judge that the share market is going for correction. Because of this attitude I have lost quite an opportunity to make some income from the share market. This thing already happens in the past but we as a human being always do the same mistake. That why I started to do some blogging. At least I have recorded down some of the mistake and in future I will enhance my trading by referring the mistake that I have done.

There might be some trading opportunity out there as the share market is taking a breath from their recently uptrend while the Dow Jones Industrial Average is still struggling to past over the 8,200 level and stay above the 8,000 points.

Maybe some mild technical rebound but this technical rebound will be minimal. Maybe we will have to wait for the bigger one (sharp drop), if any ?

The Swine flu news is getting bigger and bigger now with most of countries around the world have reported that some of their people have been hit by this flu. The global swine flu crisis deepened today with at least 16 countries in Europe and Asia reporting confirmed or suspected infections.

The flu is spreading but not at an alarming stages yet but death toll in Mexico have rises to 152 people already. The World Health Organization on Monday raised its alert level from three to four on its six-level scale. Still can remember how the SARS bring down the Asian Stock Exchange ?

Monday, April 27, 2009

Swine Flu Outbreak ! Any Major Effect On The World Equity Market ?

Well today we are seeing huge war between the bulls and the bears. As we can see in the chart and according to the Japanese Candlestick indicators, we call it Bearish Engulfing Patterns. This is a very bearish sign. Yet this sign have to be confirm by tomorrow share market performance. As usual if the KL Composite Index closed lower than today’s market closing, it will turn to bearish sign and will confirm that the trend has taken a pause.

I was watching it very closely this morning and even some of the speculative counters started to show more bearish sign today when the index take a sharp u-turn. Maybe because of the bad performance by the KL Composite Index, most of the counters cannot stand or perform accordingly.

Third liners especially the properties sector still can perform very well during the evening market but because lack of supportive, few of the speculative counters close off their high. This time around I’m losing some money but not much as I’m cutting off the shares. I always take an early pre-caution measure if something turn bad.

As we all know Swine Flu has caused some outbreak in the American region. Whether this flu is contagion or not, it will depend on how the most advance countries in the world could do about this. How will the American fight this flu ? The latest news mentions that Canada already confirming that the Swine flu has hit their country. Whatever it is, we have to stay cautious because this outcome might be big or maybe bigger than the SARS outbreak.

No matter what would be the outcome are, a look at the trend right now suggested that the news of the swine flu was the main point to stop the powerful bulls in the KL Composite Index. Maybe the KL Composite Index is taking this opportunity to correct its recent powerful gains. Well I don’t really know whether this outbreak will cause the world equity market especially the DJIA to go down further. Their recently uptrend run might take a pause if things turn ugly.

Maybe we might be seeing that the bulls have died and the bears start to rule back the market. Anything can happen right now. As the news of the outbreak quite new, any decision making has to be made in these few days whether we still want to continue holdings some of the shares or speculate some of the shares in Malaysian share market ? Remember how the SARS affected the Asian region and the share market performance ?

This statement was prepare while I was on board the plane from Bangkok to LCCT Kuala Lumpur.

Bearish Engulfing Patterns. Very Bearish Sign For KL Composite Index.

Will update with you all tonight. Catching my flight back to Malaysia. Still in Bangkok Suvarnambhumi Airport. Very Bearish sign. A Trend Reversal for correction ?

Sunday, April 26, 2009

Thumbs UP For The KL Composite Index..

As we can see, no one is expecting that the share market will shot up so fast on Thursday and Friday. Datuk Seri Najib announcement really bring the market alive. As we can see that the Malaysian share market went towards the 1,000 points with high volume. A promising theory – high volume, which will support the market to move even higher.

The world equity market now is under correction or we can call it as consolidation mode. After their correction, they will move even higher if the trend is really uptrend. Watch out for any break out, maybe it is a continuation trend for the share market.

Will this continuation uptrend bring more jeers to the KL Composite Index ? Whether the world equity market is under correction or not, we will have to wait for few more days to see whether DJIA can bring the world equity market up ?

Right now people are talking about how far the KL Composite Index will go? At 1,000 points or move even higher to reach 1,030 points ? Last week move by the KL Composite Index was a surprised move. An unexpected move that creates lots of uncertainty among the players. Many of them are asking where is the correction ?

Maybe this a special occasion where by the markets react towards a special announcement that we all did not expected it to be announced. Whatever it is, we just have to keep on playing along with the market trend. This time around we can see it as an opportunity to make some income or else we might not have an opportunity in the future. At this moment when the KL Composite Index reaching 1,000 points, we might be seeing a small correction before the index move even higher. Maybe a small correction only.

Friday, April 24, 2009

KL Composite Index Very Strong. Will Touch 1,000 Point On Monday ?

Today the Blue Chip share started to climb. The KL Composite Index creating new high again. The index almost reaching nearly to 1,000 points level. What a wonderful days for the punters but not for me. Basically I didn’t involve so much as I didn’t expect the share market will be that hot.

Usually with this kind of scenario it is quite hard to look where the pause button would be. Don’t be surprised if the index breaks the 1,000 points level on Monday. I have misses this rally again because I was not in Malaysia. On Wednesday I have travel to Thailand, Chiang Rai. I just monitoring it from the Internet. Tremendous and thumb up for the KL Composite Index.

I have seen before these kinds of rally. It happens during end of 2006 and the beginning of year 2007. The rally just couldn’t stop. They move and move until we can't find where the correction would be. If you don’t dare to play than you would have misses the biggest surprised. Today the FKLI futures contract touches 1,000 points for the first time.

The KL Composite Index didn’t even go for a correction but certain counters already went through a correction few days back. These are the few mistakes that I have done for not watching it nicely. Actually the second bandwagon has started since the announcement by Datuk Seri Najib Tun Razak. Be positive towards the market movement and trade with careful approach on Monday. You might not know what would happen on Monday.

Thursday, April 23, 2009

" NAJIB'S EFFECT ". Wah Lahhhhhhhh.....

Never try to be judges to judge that the share market has over. We can see from today market sentiments. Wah Lahhhhhhhhhh. The KL Composite Index recorded new high after some special announcement made by our Prime Minister or Finance Minister Datuk Seri Najib Tun Razak.

Although some of the indicators for overseas market appear to be in negative side, the KL Composite Index managed to climb even higher after some good announcement made by our Prime Minister. I have to admit that I was following the charts reading too closely but when the super bulls appear, there nothing we can do even we use any tools or indicator to determine where the share market is heading to.

Yesterday I did mention about the sign of "The Shooting Star". The sign will only be confirm if the KL Composite closed lower but today the KL Composite Index close higher, so the index still have more rooms and potential to move higher.

Today I'm also covering my futures contract that I short yesterday (Buy 986.50 point - sell 968.50 point (loss -18 pts)). Total loss of RM 1,000.00 including commission fee. Let’s take it as a tuition fee for me to enhance my mistake that I have done. Basically I didn’t expect our Prime Minister is going to announce such a major new. As he use to say “ONE MALAYSIA”.

It is a good sign for Malaysia and this will lead up to the foreigner investors who always argue for more opportunity of businesses in Malaysia. With more opening policy in place, this will lead up to many foreigner investors start to invest in Malaysia but it is still too early to tell.

Now we can see how strong the market move. We must believe it. As a Prime Minister and a Finance Minister, he's really show out his power to win people hearts. No one expect these news will be out today. Many punters or players are calling it "NAJIB'S EFFECT".

* Today Long or Buy : 1 contract of futures (FKLI) at 986.50 points *

Wednesday, April 22, 2009

More Weak Sign Show On KL Composite Index?

After several days of monitoring the share market movement, it is likely that the current trend for the KL Composite Index has ended. I don’t know whether my outlook would be right or wrong but based on the movement and some of the indicators, the share market show more negative sign.

I don’t like to be negative but after I have monitoring the whole situation, including some of the indicators, overseas equity financial market closing couple with our recently strong surge. We need to be extra careful because something telling us that the share market has reached its tops.

I have been wondering this few days, why our share market have the ability to move so strongly and the share market can’t even go down and make some correction. After several analyses have been made, I trying to compare the current movement with last year strong surge in KL Composite Index during the early month of November 2008. During that time the world financial market rebounded after their huge selling.

I still can remember when our share market rebound in the tandem with the world financial market, our market move so strongly until we hardly could believe. During that time we can’t even know when the share market is going to end its uptrend. It is so strong that most of the share prices recorded double digit gains in few days only.

One of the indicators, the Japanese Candlestick again shows another bad sign. This time the indicators show a “Shooting Star”. As usual this indicators needs to be confirm by tomorrow KL Composite Index movement. If the index close higher, then there would be another different storey but if the index closes lower, then the current uptrend will pause or stop for a while.

One more thing we need to remember that, Dow Jones Industrial Average still play an important role to determine the current world financial performance. If the DJIA still show more sign of advancing, it is quite hard to determine whether there would be any correction in the first place.

* Today Short or Sell : 1 contract of futures (FKLI) at 968.50 points *

KL Composite Index Still Strong. Futures Close At High.

Charts are always charts. They stand as a guide for us to trade. Yesterday we can see what has really happen to the KL Composite Index. From the opening until closed the KL Composite Index managed to close with just a loss of -1.77 point to close at 966.60 points. The KL Composite futures (Apr 09) close high at 975.50 points with almost a premium of 9 points.

Well the share market sentiment still holding quite well despite a huge fall in Dow Jones Industrial Average on Monday morning. Yesterday night after I went through some of the major world financial indexes, several indexes but not all were showing some weakness sign and some even call for a sell signal. But this has to be confirm by this several days performance especially this week.

In Malaysian share market several counters especially the penny stock have shows more interest in moving higher with the volume yesterday touches above 1 billion. During this period of uncertainties, I'm quite doubt about the movement made by the KL Composite Index because until now we really can't find a pure correction on the index. If we look at most of the blue chips counters, they were just moving into a consolidation rather than a correction.

The sentiment was there but a careful approach need to be implement as we don't want to be caught by these bears if there are several bears hiding behind the tree. When they strike, we won't enough time to cover our selves. We need to behave in order to survive longer because some of us are calling that this market is due for a correction but the share market performance told us that we have fearless bulls at the moment. What a strong bulls we have right now.

Tuesday, April 21, 2009

Elizabeth Wong New Photo Released. Hot Issue. Malaysiakini

THE Pakatan Rakyat Selangor government’s decision to retain Bukit Lanjan assemblywoman Elizabeth Wong in its administration despite the release of revealing pictures of her shows that the opposition coalition practises double standards.

People especially who are surfing the Internet are keep on searching the story of Elizabeth Wong by typing the word " New Photo Elizabeth Wong " hoping that they can search for the new photo or the picture of her.

It was so loud in its condemnation when a Malaysian Chinese Association leader was taped in a sex act that cost him his minister’s job (former health minister, Datuk Seri Chua Soi Lek). Yet, it turned a blind eye to the scandal involving one of its own.

In my points of view, YB Elizabeth Wong should have step down from her post as her reaction and her behaviour during her time with her former boyfriend was totally unacceptable.

During her time as Yang Berhormat, she shouldn't have a relationship with someone who is according to the syariah or Islamic law sleeping together in a room. That is the point that we are trying to talk about. How come she as a representative to Bukit Lanjang people and having a relationship which is go against the people understanding in Islamic laws?

No doubt she is a victim, she has to take the responsibilities and the blame for her semi nude photo being taken while she was asleep by her former boyfriend, Hilmi Malek. If we think about it for a while, no one or nobody dares to enter to YB. Elizabeth Wong's room to take her photo unless her parents or her brother or her sister. So the point is, only with the permission by YB Elizabeth Wong, her former boyfriend can only been allowed into her room.

Now the latest issue start to heat up when her new photo being release by someone into the Internet. The photo was being release after she has accepted her job back. What a political comeback ! A comeback with some new photo released. Woww..........

Correction Has Arrived ?

Finally, the corrections set in but for how long? Yesterday the Dow Jones Industrial Average performance tumble -289.60 points to close at 7,841.73 point. Financial stocks suffered some of the day's worst declines: Bank of America plunged 24.3 percent and Citigroup fell 19 percent.

Those two components of the Dow Jones industrial average contributed to a daily loss in the index of 290 points, or 3.6 percent. That was the biggest Dow drop since early March, before the market's big rally from nearly 12-year lows.

Right at the moment, we have to monitor the situation closely. This morning the share market still perform quite well. With most of the counters still stand near to their recently high, it is quite impossible to make any decision to accumulate right now. Yesterday the KL Composite Index showing a negative sign.

Based on Japanese Candlestick reading, yesterday the KLCI perform a "Hanging Man" signal (please refer here). The Hanging Man candlestick formation, as one could predict from the name, is a bearish sign. This pattern occurs mainly at the top of uptrends and is a warning of a potential reversal downward. If today the KLCI still closed all the way down with huge minus then it will confirm that our share market is going for temporary corrections.

Monday, April 20, 2009

KL Composite Index Need To Have Correction.

KL Composite Index still trading at high level. Now the current index stays at 965.17 points. Basically some of the counters still stay quite high. Will the KL Composite Index undergo a pure correction or just a consolidated move? With current index still stay high, it is quite impossible to accumulate at this level.

Whether now would be the right time to accumulate, it has to depend on certain individual outlook. For me I will stay out for a while unless there is a truly correction set in. At this level it might be a bull trap circulating around. From a fear bulls turn into a resting bull. Many analysts still mention that the world equity markets still due for corrections.

Maybe I might be wrong in the first place or I just want to be extra careful at these stages. The share market still look alright but it would be better if the share market can take a correction in order to build a stronger base and prepare for the next bull runs if there is really one real bull appear. Watch out also for the world equity market indicators, they play a very important role to determine the Malaysian share market movements.

Saturday, April 18, 2009

Dow Jones Industrial Average AT Critical Points?

Well yesterday I started to calculate how much my profit after this rally. I have missed this rally in the first place but I'm trying my best to win some and I have managed to gain about 10K. Although this is not much but I'm trying my best not to miss the second bandwagon. I'm still holding some of the shares but not much.

I will be monitoring the situation tightly as I don't want to miss it again but sometimes it is quite hard to predict where is the direction of this share market will be heading to. Many analysts have made an assumption that the world equity market is long over due for correction. When will the correction take place and when will they happen?

Dow Jones Industrial Average (DJIA) has managed to close with gains for six weeks in a row. No doubt the index still stays above 8,000 points, that didn't means that the index cannot go down. The DJIA performance lately shows that they are losing their strength. They have tried so many times to penetrate their resistance level of 8,200 points but they can't. If they managed to break that strong level then we might be seeing another new record high.

Lately I have sign up for a course (RM 4,188.00) that will teach me to enhance my skill in terms of using and reading all kinds of tools that will help me to sharpen my skill in calculating the movement of charts. All the while my skill in monitoring the share market movement and reading some of the indicators was at my own study using some of the technical analysis book to help me and guide my trading in the share market. I think time has arrived for me that I need some guru's to teach me how to use the tools perfectly.

Next week will be a crucial week for DJIA. If the index still hovering around that point then index must break the 8,200 points or else the DJIA might be eyeing for 7,500 points. For me, I would prefer the DJIA to go down in order to have a pure correction before any accumulation can be done. This will even help us to be well prepare for future smooth and nice trading when the share market start to climb up.

Friday, April 17, 2009

A Correction Or Just A Consolidate Move ?

Finally the KL Composite Index takes a rest. Will it be a correction or just a temporary pause ? Well for sure the index won't be going all the way down. The index might be moving up and down before we can confirm that the correction has set in. Dow Jones Industrial Average closed well this morning. Whether the DJIA will help the KL Composite Index to continue their upward this morning would be another question.

Yesterday the KL Composite Index showing an unhealthy sign. In the opening the index jump about 6 points and gain about +13 points and then went down to minus -3 points and managed to closed with a plus of about 4.5 points. According to Candlestick indicator, we call it as a doji (refer here).

It is not a good sign but basically the chart want to tell us that the market has already found its top. But this has to be confirm by the today index movement. If the index closes lower than yesterday then the sign should be confirm.

For how long it will consolidate? 1 day, 2 days or maybe 1 week? No one knows? I foreseen there would be another quick play. A contra trading in this few days if the corrections set in. I don't think the KL Composite will go all the way down. Maybe this would be another bandwagon for us to jump in. So beware and have fun during this few trading days because there always an opportunity out there if we dare to take the risk.

Wednesday, April 15, 2009

KL Composite Index - Time To Take Profit ?

This morning the share market went up and goes against the Dow Jones Industrial Average. (DJIA - 137.63 points). Although the DJIA went down but some of the share prices in Malaysia went up even higher. Yesterday I have already set my mind after analysing the whole situation in the market movement. If the share market went up today, I will sell my entire shares. It will depends on the performance of each counters.

And I did it this morning. No doubt I sold off most of my shares but it didn't indicate that the market has gone. I just take it as a pre-cautions measure. I don't want to be get caught by this market as I foreseen this market is moving quite fast and maybe they will consolidate for a while. One of the reason I'm doing so because I don't like the performance of the DJIA.

Frankly to my disappointment the DJIA still cannot stand above 8,000 points. It seems that they have try to penetrate it so many times but still they couldn't break and stay above the most important level. If the DJIA still stay below 8,000 points then the corrections might set in. I'm not trying to be negative but rather to make my self clear that the Malaysian share market has gone up for few weeks.

Trading opportunity is still out there. All we need to do now is to concentrate and find suitable and potential counters. Maybe there might be some profit taking activities but the share market still has a potential to move around.

Tuesday, April 14, 2009

KL Composite Index Too Fast Too Furious ?

The index has been climbing too fast too furious. Hence I would lay off from the market if there is a sudden shoot up among the third liners but will trade with more cautious. Indeed we don't know when the market will end its current up trend. But based on the way the market movement there is still some potential.

Tomorrow will be Wednesday. I think it would be better to lay off a while. Maybe there will be some more profit taking activities. Someone just told me that the current trend its moving nearly to it's peak. The KL Composite Index have found it initial high of about 950 -960 points and maybe this will be the starting points that the index will move down or we call it a correction.

Based on this scenario I would prefer that there would be a major push in third liners counter to confirm the ending of the current up trend. This morning the market is facing some profit taking activities. Market still looks good and nice. The current trend still intact but it will depends on how they react towards the Dow Jones Industrial Average performance this weeks.

Maybe we might be seeing some rotational play among the counters but as I mention here, trade with more cautious and careful approach. Think twice before making any decision to go in but if we are going for a contra play, then we don't have to think so much. Just buy.

Monday, April 13, 2009

Sentiment Still Good. Will The Current Trend Still Sustainable ?

Hong Kong share market still close for today. This week we might be seeing something very interesting. Many financial institutions in the U.S will be announcing their quarterly financial results. What do you think? Will it be nice or bad? Will the current rally in Dow Jones Industrial Average end after five weeks of advance if the financial results show more negative results?

With the current sentiment still good, it is hardly we can make a judgement whether the current trend is going to end but we have to be careful for any corrections that might set in. What we can do now is, trade with cautious and a careful analysis. This morning market show that more interest been shown on the third liners counters or penny stock.

How far they can go? We wouldn't know but the sentiment was there for the third liners. At these moments it is not advisable to trade in huge quantity as the share market is moving into a week of uncertainty in the U.S financial market for the quarterly financial results.

Friday, April 10, 2009

Believe It Or Not ... Just Believe It .......

Most of us didn't expect that the share market move so strongly. In the afternoon the KL Composite Index close up +20.65 points. I couldn't believe it. Most of the speculative third liners shares are moving. Either they move strongly or they just following the trend.

This few days I did brought some and sell some of the share but to make huge profit we need to pick up the share and keep it. Whether now was the right time to accumulate, it would depend on how our share market reaction towards world equity market performance. I can't really know when the corrections would set in.

I think most us should know that whenever most of us foreseen that when the share market is heading for a correction and all the sudden the share market make a U-turn. I was sitting and I was wondering how we want to be sure that the market is going for a corrections? After a while I do remember that previous share market corrections only started when most of the third liners start to move even penny stock are also moving.

The best strategies to use now is selling on the run if we manage to accumulate last few days (it depends on how much is our profit) and if we feel tempted in buying more shares, accumulate in small quantity. I did ask some my friends who are still playing around with the share market, either they have sold their share earlier on or they never have a chance to accumulate at all (no confidence).

I have to admit that I have misses one of the opportunity but I do believe there always an opportunity to accumulate when this corrections set in. For those who have lost the opportunity to ride this bandwagon, wait for the next huge bandwagon. It might big and strong and the horse power of this bandwagon should make us laugh all the way to the bank. Who knows ???

Thursday, April 9, 2009


Today we can see how the market reaction after yesterday selling. The share market went up again. Even if we predicted that the market might be heading for correction, still some of the counters show more interest in moving up. Right at these moments the indicators still look positive but a careful approach was needed in order for us not to be caught by this share market movement if the trends have take a u-turn.

It is quite hard to know and to understand the behaviour of this market. We have to keep our eyes open this few days if we want to make some profit out of it. Maybe we can go for contra. However if we feel that our favourite counter still not moving yet then we might as well accumulate and wait for it to move.

A check on today movement suggested that most of the third liners started to make some volume and they show more interest rather than the second liners. Usually before any major correction set in .... third liners should lead the market then only the share market can go for right correction. This is what usually happens when there is a big or a small bull run.

There are so many counters showing more potential to move on. One of them is Green Packet. Right at these moments it is better for us to be well prepare ahead and go for a BATTLE before we could win a significant WAR. But we should be very careful in making any selection as the share market might turn against us if the Dow Jones Industrial Average showing move negative news and moving towards down.

Wednesday, April 8, 2009

Where Is The Corrections ? Will It Be Today ?

As been predicted, the corrections should set in this week after the share market have move up nearly two to three weeks. The KL Composite Index might be moving down in accordance with the performance of the Dow Jones Industrial Average. I still prefer the DJIA to stay above 8,000 points.

But during this correction it is likely there would be a rotational play among the speculative counters. We might be seeing some roller coaster ride. If this trend or the wave that claim as a Major Wave B, then this would be a right time to accumulate but how far it will go down?

Here we really can't tell where the bottom would be but it is likely the KL Composite Index might be breaking the 900 points and heading to 880 points. Basically I don't like to predict whether there would be any major correction because it is still early to tell.

We can see in yesterday market momentum. Yesterday morning we know that the share market was going for a correction and all the sudden in the evening, the share market take a turn with some of the speculative counters reaching new high (MRCB, Genting).

We have to be well prepare for this market as recent run up suggested that the share market still have more room to move on as there are still many counters lagging around waiting for the right moment to surge.

Tuesday, April 7, 2009


The Selangor State Government has promised that if we were to take over the operations and maintenance of the water concessions in Selangor, we will be able to immediately offer a 10% reduction in water tariffs, while longer term improvements in efficiency will easily bring about a 25% reduction in tariffs within 5 years.

Instead a bailout is now in progress for these private water concessionaires. Here's a clear illustration of why it can easily be done by comparing what the people of Selangor pays for water today, relative to our friends in Penang.

On the right shows clearly that at the people of Selangor are being fleeced for its water for at every stage, Syabas charges more than double the rates charged by Perbadanan Bekalan Air (PBA) Pulau Pinang!

In fact, if you use only 38m³ of water a month, in Penang you'd be paying the rate of RM0.42, while in Selangor, you'd be paying a whopping rate of RM2.00, or nearly 5 times the price!

Or in absolute terms, you'll be paying RM11.96 in Penang, but it's an incredible RM32.85 in Selangor and KL! What's more, PBA is very profitable (check the accounts) despite the lower water rates. It made RM31.3 million last year on revenues of RM187.8 million, or a very decent net profit margin (after tax) of 16.7%.

Therefore Syabas which supplies much more water than Penang, should have the economies of scale to offer even lower prices than Penang! Hence for the Selangor state to promise that we can cut the fat in Syabas to reduce rates by 25% within 5 years is "chicken feed"!

However, when asked by The Star, the Minister immediately dismissed our pledge: How can the state reduce the tariffs? To avoid the hike, it would have to compensate the concessionaires and this could amount to RM38 million a month. If we take over the assets, it would be much lower than the 31% [scheduled] tariff hike.

The Minister misses the point, whether intentionally or otherwise. The whole idea about asking the Federal Government to support Selangor's takeover offer is so that we can get out of the crony contract signed by the previous Minister, which allowed Syabas to increase rates in 2009 by up to 37%, or a monthly RM38 million compensation in exchange. If Selangor government takes over the assets and concession, we will then be able to offer not just a token "lower tariff hike" but actually be able to cut rates by 10% immediately, and more after working off the fats in the system.

Article By Tony Pua.

Monday, April 6, 2009

Where the KL Composite Index Is Heading To ????

Malaysian share market recently moves very strongly not because of UMNO general assembly and the movement also got nothing to do with our current new Prime Minister, Datuk Seri Najib Tun Razak. All in all it is because of our global financial market is performing very well. Correction might set in this week after recently movement.

Dow Jones Industrial Average managed to stay above 8,000 points at this moment. It will be very important if the index can stay longer at this level. But we need to remind ourselves that the global financial market already moves since the announcement from CEO of Citigroup, Vikram Pandit.

He is the main reason that brings the whole U.S financial market and the global financial market moving after he made an announcement that the Citigroup is starting to make profit.

Back to KL Composite Index. Based on the chart, a correction will happen soon but no one really knows when the correction will set in or how long the correction will take place. There are two possibilities that will happen here.

Possibility 1: Inside the chart I did draw out an assumption if the correction set in (red colour) then the share market will move down to absorb any correction before any attempt to move higher (green colour).

During this correction it might be an opportunity to accumulate as the prices will decline after recently moves up. These have to be confirm if the current trend was a trend reversal provided that the DJIA didn't break the recently low created in the early March of 2009.

Possibility 2: (Orange colour) Based on the Bearish Rising Wedge formation as I have mention earlier in few of my articles, the possibility of the KL Composite Index to move down further exist. Usually when they break the formation and move down, sometimes they attempt to move up near to their formation before losing their strength, momentum and move further down.

These were the possibilities that might occur and we must not look down at it. Current situation suggested that the share market is heading for the Possibility 1. No matter what are the formation will be, sometimes if we want to worry about the Possibility 2 that might take place, then we will be a loser because we might lost an opportunity of it if the current Possibility 1 do take place.

I was hoping that current explanation will not jeopardized anyone in terms of their decision to buy or to sell as this is just only my opinion based on the current situation. We need to be aware that share market is not a place that we can foresee where they would be heading to and where is their next course? Sometimes they behave without we knowing it.

Saturday, April 4, 2009

Tun Dr Mahathir: Don’t Bail Out Failed Banks.

LONDON: Tun Dr Mahathir Mohamad has called for the closure of banks that caused the global financial crisis instead of bailing them out. The former prime minister lambasted the West for pumping in billions of dollars to resuscitate these “failed institutions”.

He said they should be allowed to go under as bankers were rewarding themselves with fat bonuses rather than be punished for their inefficiencies. “Let’s start new banks.

We don’t need to have banks with those names anymore as they are a disgrace,” he said in his talk ‘The Alternative G20 Agenda: Real Financial Fairness’ at the Royal Commonwealth Society here on Wednesday.

More than 200 people attended the event on the eve of the G20 summit. In his usual hard-hitting style, Dr Mahathir said there should be no attempt by governments to rebuild institutions which have failed. “If they must dole out money, give it to the people who suffered actual losses due to the banks’ failure, but not to the bankers,” he said.

He questioned the logic of rewarding bankers who caused the economic crisis, saying those who created trouble were normally put in prison. Dr Mahathir also took a dig at hedge funds, saying their borrowings should be limited and not be 20 or 30 times more than the investments. "Imagine if a hedge fund were to borrow US$30mil and trades on US$20mil based on a US$1mil investment, the profits would be far bigger than that of the original investment,” he said.

He said a stop should be put in creating money out of nothing, adding everyone must come clean instead of obtaining false wealth through shuffling papers. “Most of the wealth comes from playing around with money. You can sell currencies and make tons of money,” he said, adding they were not derived solely from producing goods and services anymore.

He called for a review of the international monetary, financial and banking system which had suffered a systematic collapse due to gross abuses. Dr Mahathir said the global community could elect people to represent the differing economies and work together in curbing financial abuses.
“If we’re going to be fair – real financial fairness – we should give everybody a say in the formulation of a new banking, financial and monetary system.”

Friday, April 3, 2009

Confirm Market. But It's Never Too Late To Accumulate. Wait For Correction.

With this kind of movement yesterday in KL Composite Index, I would prefer to say that ....... the share at this moment already found its bottom. But I still prefer Dow Jones Industrial Average to stay above 8,000 points to confirm the bottom.

If we check these few days market momentum, it should confirm that the trend have take a turn. At this moment we need to let the share market take a correction first before making any decision to accumulate.

If the share market was confirmed and take a turn heading north, we still have more ample time to accumulate. We might miss the first bandwagon but I don't think that we will miss the second one.

Frankly I didn't expect the share market to perform tremendously. With this kind of new development, any correction emerge will be consider as an opportunity to accumulate. Previously before this financial crisis strike, every year usually in the month of March or April will be a good month to play but only for a short terms plays only before we heading to the month of June and July. Basically in these two months the share market usually behaves quietly.

The most important element that we need to remind that we have to open our eyes a little bit bigger in order to search for the right counters. Blue Chips are moving with most of the second and third liners following through. Third liners movement yesterday can be consider so-so. We need to pay a bit attention on them form now on.

Wednesday, April 1, 2009

BY-Election Will Determine Malaysian Share Market Next Course?

By-election will be the main attention this week with Datuk Seri Najib Razak Tun Razak will become our Malaysia 6th Prime Minister on 3rd April 2009. What a wonderful weeks for Datuk Seri Najib. Although he is also a Finance Minister, it is very important for him to make sure that the stimulus package that he has announced is working through.

A cabinet re-shuffle in the up coming government will play an important role to determine whether Malaysia is still a good country in terms of their management. Certain things we need to remind that the Prime Minister to be, Datuk Seri Najib Tun Razak was respected by its UMNO and Barisan Nasional members. He has a very strong support but he doesn't have the respect from most of the rakyat (people) in Malaysia.

This is something very new in our political history. In Malaysia there's never been a Prime Minister to be been hated by most of their rakyat. Most of them link him to the killing of Altantuya Sharibuu.

At the moment there was no proof yet to accused Datuk Seri Najib because there was no photo of him been link to the deceased. Even the earlier suspected murderer, Abdul Razak Baginda has also mention that Datuk Seri Najib has nothing to do with the current mess.

Right at this moment, the Malaysian share market reaction more or less will be determined by the result in this coming by-election. Will it be a good news or bad news ? I'm also not very sure but the current Malaysian share market movement looks stablize and nice but the current Malaysia political situation still not stabilize with so many uncertainties surround. Actually it is quite hard to read current share market momemtum. Time will determine everything.........