Wednesday, December 14, 2011

Quiet Trading Ahead Of Christmas Celebration ???

It is quite unpredictable how our share market moves lately. No doubt we are seeing some changes in the way our share market react to the world equities movement. Sometimes when we expecting the share market is moving lower and all the sudden they move up quite drastically but still the share market didn't show any positive sign yet. A sign that would promise more comfortable trading. Based on the chart sign, we still need more time to monitor the whole share market movement but according to individual chart, most of them still trading poorly. The FBM-KLCI must not break their recently low of 1,424 points or else it might turn very ugly.

Today is already 14th December 2011, we have another 11 days before we celebrate Christmas. Basically towards the year end, the share market will be a bit quiet. They might be moving sidelines before the year of 2012 arrive. During this period it would advisable to search for any counter that have the ability to move. The accumulation must be done during or before the arrival of Chinese New Year rally. Would there be a rally???? Or there might be a rally for the up coming 13th General Election??? We will not know whether there would be a rally coming in or not during this festival time but a closer attention towards the share market movement is very important or else we might miss the trading opportunity ahead.

On the Dow Jones Industrial Average movement, right at these moments it didn't materialise based on the chart reading. We are expecting it to trade lower based on the chart reading and the on going financial crisis in the European region but due to some positive news, the index move up and show more strength by standing around 12,000 points. At these moments I would watch very closely on how the world equities indexes are performing. Any level of support that will be broken will be treat as an alarm for us to trade carefully.

Thursday, November 24, 2011

DownTrend Coming In ? Cautious Trade Ahead !!!

As we can see right now, the Malaysian shares market are coming down. Based on the chart wise, we might be experiencing some new waves of downside. If we check most of the overall counters, we can see most of the counters are coming down quite hard recently, especially the Blue Chips counters. Was it a new beginning of a new downtrend?

Based from the previous calculation of the charts, the Dow Jones Industrial Average is facing lot of difficulties with the European debts problem still lingering the whole world equities market. This time around it might turn out to be from bad to worst than ever before. It is still early to put this kind of assumption towards current share market movement but it seems it was never an ending story from the European country with lots of debts problem keep on arising from their neighboring country.

With the current sentiments moving downwards, it would be advisable to stay away from the share market trading. It is not a good time to trade with. Current share market sentiments shows more weakening side rather than more promising signal to move upwards. From my previous last blog, I did mention we need to be more careful in the month of December because it might turn out to be the worst month for all of us or maybe the worst has already started.

This assumption was based on few of my previous chart where by I used it to compare what has happen during the 2007 - 2008 financial crisis in the Dow Jones industrial Average. Currently the share market might be moving 20 cents down before rebound 10 cents up and again coming down another 15 cents with 7 cents up. Each day we might be experiencing more downside rather than upside.

It seems the Bears have just wake up from their SLEEPing.

Wednesday, November 9, 2011

Current Share Market Sentiments Still Looks Nice. Be Careful In The Month Of December!

These few weeks I was caught off guard the way our share market movement. I didn't expect that the share market can perform so well. This time I really admit that I didn't pay much of the attention on the current share market movement. I admit my mistake. Maybe I was paying too much attention on the downside and I have missed the opportunity to trade during this highly volatile movement.

Looking at the current share market movement, we need to put more attention towards the overall world equities market movement. Right now, based on their charts movement I will still put my self in a position of self protection. Basically I will pay more attention towards the month of December. Based on the calculation, any major turnaround will depends on the month of December. I won't say it will happen or it might happen. It was just based on the chart reading.

What would happen in the month of December ? There might be a major downside going on the Dow Jones Industrial Average. We cannot assume that it is going to happen but we can take a look on it and have a glimpse on it. This is just a chart reading only and it is only a guide for us. How far and whether it will happen or not????? Nobody knows. It is just that they look more or less the same pattern. Just be careful whenever we trade. For sure maybe my earlier mistake was I put too much attention or depend too much on this chart pattern. That was my biggest mistake.

Sunday, November 6, 2011

Selamat Hari Raya Haji


Tuesday, October 25, 2011

"" Happy Deepavali ""

"" Happy Deepavali ""

To All The Readers


Malaysian Shares Blogspot.

Friday, October 14, 2011

Remember Current Share Market Sentiments Still Downtrend!

Don't be so excited, current share market sentiments still DOWNTREND!!! Since the last 26th Sept 2011 panic selling until now, the Malaysian share market have experiencing quite huge upside or I will call it as strong technical rebound. This rebound was quite big with the ability to make huge income but not an easy market to trade with if we are going for contra period.

One thing for sure we can see for the last 3 weeks the Malaysian share market have rebounded. Can we still assume that the share market is going up and up again? Can the current momentum sustain at this phase? I'm doubt about it. From my point of view, I would rated it as selling opportunity to take our gains or to cut our losses into small amount rather the huge amount of losses in terms of the prices we have seen 3 weeks back.

Current share market momentum still downtrend and we should treat it that the sentiments might face another big pressure in few weeks to come. There might be another sell down, so I would not rate current sentiment as an opportunity to accumulate and keep it for medium to long term. Basically we cannot assume that the share market have already survived the biggest Bears slaughter but the biggest question we need to ask; whether would there be another BIG Bear's appear in few weeks to come? Can this share market sustain that pressure if there is another selling pressure coming in? Everything have to depends on how the world equities market are going to survive these few weeks to come.

Based on the Dow Jones Industrial Average chart we still might be facing another biggest slaughter that we have ever seen. I don't know how true this assumption will be but based on the chart, we must always be alert and careful all the times as we don't want to run out of bullets when the opportunity strike again. At these moments CASH is KING. Certificate was just a piece of paper with valuation only. If the value goes up then it would means everything but if the value goes down ......... it just a paper to keep only.

Monday, September 26, 2011

Time To Accumulate??? Damm.. Too Cheap ????

Time To Accumulate!!! Make Your Own Judgement. The Malaysian share market experiencing major panic selling. Just a moment ago the FBM-KLCI was down about -55 points. Usually when there was a panic selling, it was a good time to accumulate. If tomorrow morning the share market experiencing another sharp falls, I would strongly suggest to accumulate.!!!

Tuesday, September 13, 2011

More Selling Pressure! Not An Easy Market To Trade With?

For the past few days, we can see there are still many counters create new lows. A low which is hardly we can see for the last one year. As we can see, it is not an easy market to trade with. Most of the good counters are experiencing more selling pressure with TopGlove take a very hard hit from recently sell down.

Basically I still prefer accumulate for trading purposes rather aiming for investment. Any accumulation done will based on any sell down from the share market. The Dow Jones Industrial Average still not stable yet at these moments with still so many uncertainties surrounding the European market. Based on the reading, we might see that the Dow Jones might be moving up and down around 10,500 points - 11,700 points these few weeks.

According to the bigger picture of the Dow Jones charts. In few months to come we might be facing more selling pressure from the BIG BOSS. This just a reading based on the charts and we cannot assume that it will happen. As we have already knew it and understand at this moment, the current share market trend was moving DOWN trend. So it is visible to trade carefully and look for more opportunity ahead when the time arrive (when panic selling occur).

Thursday, September 8, 2011

We Might Have Trading Opportunity Ahead? Was It A RIGHT TIME?

Was it a good time for investment or just for a trading purposes only? Looking and judging from the current market sentiment couple with most of the individual counter, it seems there are some trading opportunity ahead. Based on few indicators from the chart reading we might have some opportunity based on the what have really happen in the world equities market (from the sharp falls).

If we take at look on few counters like MEGB, KNM, MAS, GAMUDA , TENAGA and others, we might have some trading opportunity ahead. It might not be like what we use to experience during last sharp fall. Drop fast and climb very fast. This time it would basically climb up bit by bit. So CONTRA (T+3) would not be the right way to trade in this market. If we have strong movement then we would be lucky enough if that particular counter do rebound faster. Looking at the current volume I would say there are less interest from the investors cum speculators. Many of them have lost their faith in this market, so I would say maybe it is a good time to try for trading purposes.

Can it be for an investment purposes at these moments? I do not for seen that as I'm still looking at the Dow Jones Industrial Average movement. As my last article I did mention Dow Jones might be experiencing some problems in months to come. So it is important to go for trading opportunity. I might be wrong in the whole process but we can't deny the problems facing by the world equities financial market right at this moment.

One counter I do like to put some attention on it but I don't know why this counter showing more negative movement since the day it was listed until today. That particular counter was UOA Development Berhad. From my chart indicator and sign, it seems that we might have a trading chances on this counter. Based on the latest development on the latest announcement by the company and their financial reports, I just don't understand why this counter perform so badly. Maybe the world equities sentiments just doesn't favour this counter.

This is just one of my point of view and we cannot take it as a BUY signal. It was just based on the chart reading and most of the charts are showing some positive sign ahead. Remember it won't be an easy market to trade with as it might move just like a turtle. Bit by bit and day by day, we might feel quite boring on the way they move. The volume or the turnover just isn't positive enough. So be careful whenever we choose any counter.

Friday, September 2, 2011

Dow Jones Industrial Average Might Be Facing Big Hurdle In Few Months To Come ?????

Dow Jones Industrial Average just recovered recently from their recently low of 10,604.07 points with the index able to climb to 11,716.84 points. Based on the chart calculation the recently technical rebound perform by the Dow Jones seems to be reaching their goals. Any further gains would be limited.

This assumption was based on the two charts that I have posted. If we take a look on both of the charts pattern they were some similarity between the two charts. Whether they will follow the same pattern, it still pose another question?

Chart A -Period From June 2007 - Dec 2007

Chart B -Period From Feb 2011 - Aug 2011

Chart C - Period from May 2007 - Aug 2011

Chart A shows the Dow Jones Industrial Average movement from June 2007 till Dec 2007 before the index facing lots of pressure and went to its lowest during the year of 2008. Chart B shows the Dow Jones Industrial Average movement from Feb 2011 till Aug 2011. That is where we can compare the similarity between both of the charts. Both of the charts are telling us it happens during the financial crisis (2007 - 2008 Sub-Primes Financial Crisis and the collapse of Lehman Brothers Holdings). (2011 - European Financial Crisis and the US Debt Crisis).

This just one of the assumption based on the charts reading. Maybe there will be more bad news coming in the future but it is hard to say that the financial crisis will continue to a level where by it will bring down the whole world stock market even lower. At these moments the current sentiments shows that the share market are still inside the downtrend channel. So it is still important that any accumulation done should be based on the current trend. Whether the current trend will change from a down trend to upper trend? It is still early to tell.

Monday, August 29, 2011

Selamat Hari Raya

Selamat Hari Raya To All My Muslimin Friends.

Wednesday, August 24, 2011

Was It A Good Time To Accumulate ?????

Was it a good time to buy now? That was the question my friends were asking. My advice to them is to stay out for a while because we don't have any clear indicator or signal that allow us to go in. At theses moments if we take a look on how the Dow Jones Industrial Average fares, they seem to be facing some uncertainties. Right now if we ever try to trade, it might be a short lived market so we might be facing more risk than reward (hope I was wrong).

Looking at the Dow Jones Industrial Average chart, we might be having some up and down market sentiments with the current trend showing a downtrend market. Any more sharp drop will be minimal in these few days toward end of August. My current assumption was based on the chart.

If we take a closer look, we might use previous data (happen in 2007) before the financial turmoil that happen in Aug 2008. The meltdown of sub-prime in America. It's all begin during the year of 2007. The chart that I have posted shows that there is a similarity in between the two big blue circles that I have posted on the chart. One happen in 2007 and another one in 2011.

We might take it as guidance for us in our future trade. We cannot assume that it might be following the same pattern but we need something to guide us in order to protect our investment. Basically we know that the Dow Jones Industrial Average is heading towards the downtrend, hence we need to be more careful and alert all the times. Any trade at these moments will be short lived (holding for short period) ...... from my point of views.

Any more sharp drop will be treat as an opportunity to accumulate and during the rebound periods we can unload any of the shares we accumulate. As I use to mention any accumulations will based on the right timing. Not every falls can create an opportunity.

Wednesday, August 17, 2011

Technical Rebound In The Process. When Will It End ????

Technically the FBM-KLCI is in the technical rebound process and it is moving from their lows. Anyone who manage to accumulate during recently sell down will be able to make some handsome gains. The timing was very important and indeed last week was the perfect time to accumulate.

Basically using a technique "Catching A Falling Knife" would eventually comes with not only technical readings but also with the guts and believe that the share market will rebound from recently sell off. I don't know how to explain that senses (share market to rebound), many will disagrees with my senses but because of my 20 years of monitoring the share market movement, I just know that a rebound was just around the corner. I have been using this technique for quite sometime and every time it did brings great opportunity to trade and made some gains out from huge sell down.

At these moments I will consider any accumulation done right now was not the perfect timing. The share market might be experiencing some up and down and we can't really know where they are heading to. Chances of making some gains still there but with limited counters to choose from. Based on the chart maybe the FBM-KLCI might be moving towards 1,530 points before the index facing a big hurdle around those points. Still I will lay off for a while after recently technical rebound. We will have to wait for a clearer indicator appear before any decision can be made.

Friday, August 12, 2011

Technical Rebound Might Be Happening Soon ???

Well yesterday share market performance was actually an opportunity to accumulate some of the shares at cheaper price. Based on yesterday sentiments the share market looks quite strong in their overall performance. No doubts the Dow Jones Industrial Average was down about -500 points, it didn't jeopardized the overall sentiments in the FBM-KLCI.

If we take a closer look on most of the counters traded during the opening session in the morning, most of the counters were down just a little bit only. It shows that the share market might make a turn around anytime soon. The selling pressure is getting lesser. Basically the timing of buying and accumulation was the last two days. It was a perfect moments. Accumulation should be done when the share market was weak. Buying on weakness would be the perfect way to accumulate.

Maybe it was about time that a rebound might be happening in these short terms. Who knows, anything can happen in this share market especially during this kind of uncertainties happened lately in world financial market. If the technical rebounds do take place, it might not be a long run. Just be careful whenever we trade during this uncertainty. This is just one of the my points of view and we cannot treat it as it might happen.

Wednesday, August 10, 2011

Might Be A Trend Reversal ? Time To Buy ?

FBM-KLCI still close around it strongest supporting level of 1,476.00 points. Basically if we examine the chart and the trend, it seems that there might be an indication that the share market is in the process of turning into Trend Reversal.

It seems that yesterday transaction was the turning points that the few days of decline in most of the good quality stock might turn into gains for this coming few days.

Indicator like Japanese Candlestick suggests that the trend reversal is happening. How sure we are on this indicator signal, it would depends on how the world equities market react but most of the time they are always 70 percent to 80 percent accurate.

These two days market transaction we have to use a technique call ""Catching A Falling Knife"". It is not easy to learn but for those who can stand the pressure of it will eventually win this Battle. Basically I will rate this market as a one time opportunity and they seldom appear with sharp drops in few months to come. It might happen again but when was it ???

It is just my points of views and we cannot assume that this article can be treated as accurate. It is just some of my knowledge that I have gather for so many years and I just want to share it with my readers.

Monday, August 8, 2011

Market Crash !!! Can This Level 1,476 Points Hold On For FBM-KLCI ???

It is quite difficult to determine whether this level 1,476 will hold on for the FBM-KLCI as the selling pressure looks quite intensify.

If we take a look on the share market movement today, it was a MARKET CRASH. At these moments monitoring the high quality counters would be the best option. Chances of making some profit from this downturn might arise because most of the good quality counters move down sharply.

I will treat this timing as CATCHING A FALLING KNIFE. "" TIMING "" is very important to determine how good our skill is or how good our profit will be. Just be careful ..... a slight wrong timing would eventually make us lose our chances of making any opportunity arises. Remember "" TIMING "" play a very important role to make a gain from the share market.

Friday, August 5, 2011

World Equities Looks Very Unstable !!! Stay At Sideline !!!

The Dow Jones Industrial Average seems to be moving into a new territory of unpleasant moments for most of the investors around the world with the index have fallen around 1,100 points. Was it an opportunity to buy any shares right now??? Maybe for the U.S equities market but not our Malaysian share market. Right at these moments our share market behaved quite unpredictable with more potential of losing money rather than gaining anything from any trade.

We might make some trading profit from one or two counters we have spotted but we can't stand from the losses that might occur just from one counter alone. Sometimes with only one counter it can wipe out the whole profit that we make and sometimes we even have to pay out more than we gain.

Our share market looks quite dull but because there was on going rumour saying that this year General Election that would probably be held before end of the year. Maybe that is the reason why our share market still look so strong in terms of the price and index movements.

If we check on the recently charts on FBM-KLCI, the index already breaks its strong supporting level. Basically it will looks not nice as the FBM-KLCI have broken that level. The next level of FBM-KLCI might be moving is toward the 1,515.00 points from current 1,547.00 point.

At these moments any trading opportunities arise from current sharp falls will be treat as an opportunity to buy at cheaper price. From my points of views, current sentiment was not a good time to trade. Stay out from the current sentiment would be the best option.

Monday, August 1, 2011

Selamat Berpuasa To All Muslimin Friends.

Selamat Berpuasa Kepada Kawan Kawan Yang Berugama Islam.

Sunday, July 24, 2011

Still Not Easy To Trade With Current Sentiments?

It has been two weeks since my last posting. Currently looking at the share market performance, we have nothing to cheer about. It kind of mix market with the chances to make some gains seems to be very slim with some uncertainties surrounding the world equities market.

Looking at the current chart, the FBM-KLCI still stay above the supporting lines. It seems that the share market might be moving side way. If the supporting lines is not taken out, we might have some chances to play around the market but with limited counter to choose from.

What will I do at these moments? With the current volume and turnover still well below 1,000,000 (excluded Bumi Armada), I still prefer to watch and have a look on how our share market is going to move. Participating in the current share market sentiments didn't promise any good opportunities rather with chances to lose more of our investments. I'm staying at the side line.

Lately we can see lots of new IPOs listing and it seems that most of the new listing are doing well. Today we will be watching how Hibiscus Petroleum Berhad is going to fare and whether this counter can bring any profit to its investor? With 1 free warrant for 1 ordinary share held, there might be some chances that this counter could bring some gains to its investor.

Friday, July 8, 2011

Hibiscus Petroleum Berhad - To Apply or Not To Apply?

Hibiscus Petroleum Bhd, the first Special Purpose Acquisition Company (SPAC) to be listed in Main Market on 25th July 2011. This is something quite new in the Malaysian share market. If we really examine and we surf few of the blogger involve in share market, most of them responded saying that they are not going to apply this share. The main reason was this company have NO BUSINESSES and it is an EMPTY SHELL company.

Basically if we sit down and examine the prospectus of this company, it seems that this company have the ability to move higher on the ground that it will involve in an OIL and GAS exploration and production (E&P) businesses. No doubt they don't have any businesses at all at this moment but the team management inside it was well known for their ability and experience in oil and gas field.

Taking into the account of their Main Features of this IPO - certain things we need to look at it on why this share was worth of applying based on their few main features.

SPAC is a company which has no operations or income generating business at the point of IPO but undertakes an IPO with the intention of acquiring operating companies/businesses with the proceeds raised from the IPO.

The Initial Public Offering (IPO) consists of 200 to 400 million ordinary shares at an IPO price of RM0.75 per share at RM0.01 par value. It comes with 1 free detachable warrant for each share. 10 million shares are offered to Malaysian public.

The warrants will be listed and tradable from the date of listing, with an exercise price at a discount of approximately 33% to the issue price of RM0.75 per share. Upon the listing, Hibiscus Petroleum will work towards the acquisition of businesses or assets that would establish it as a junior independent oil and gas exploration and production (E&P) player in the near to medium term.

Hibiscus Petroleum does not intend to pay dividends prior to the completion of the Qualifying Acquisition (QA). The company has not generated any revenue since it has not commenced business operations.

Main features of this IPO?

1. Investor Protection – At least 90% of the IPO proceeds will be placed in a trust account managed by an independent custodian which is a trust company, a licensed bank or merchant bank. At least 90% IPO proceeds placed in a trust account - given it value at 0.75 sens X 90%, we still have a value of 0.675 sens place under trustee. The minimum proceeds of 90% will be placed with the independent custodian, Deutsche Trustees Malaysia Berhad which may only be invested in securities issued by the Malaysian Government, money market instruments and AAA-rated papers.

2. Shareholders who vote against a proposed Qualifying Acquisition (QA) are entitled to receive, in exchange for their securities, a pro rata portion of the amount held in trust account (being 90% of the IPO proceeds) if the QA is approved. Hence, the downside risk prior to Qualifying Acquisition (QA) is limited with the refund flexibility of 90% of an investor’s IPO subscription plus interest (net of distribution/liquidation expenses). The downside risk is limited with a refund of 90% plus interest - a good protection. If the Qualifying Acquisition approved by the share holders, we have the rights to ask for the refund if we are against it. It means that at least we will be still getting 90% of its initial value of 0.75 sens.

3. The downside risk may be further mitigated by the trading of warrants from the date of listing as this IPO comes with a sweeter of 1 free detachable warrant for each share. This is the best part of it - Free 1 detachable warrant. Exercise period - Anytime during the period commencing from and inclusive of the date of the completion of the QA up to and including the Expiry Date.

4. The warrants are tradable on listing date. Exercise price is 0.50 sens – a discount of 33% to the issue price of 0.75 sens.
Taking into accounts - if the listing of Hibiscus share was below par around 90% (0.675 sens) from its initial value of 0.75 sens, the warrant will probably listed at around 0.25 to 0.35 sens a share - this was based on it exercise price of 0.50 sens plus a premium of about 0.10 to 0.15 sens a share for the warrant. (listing price 0.675 sens - exercise price(warrant) 0.50 sens = warrant share prices 0.175 sens + premium of 0.10 sens to 0.15 sens = probably listed around 0.25 to 0.35 sens a share.

5. The completion of the QA is within 3 years from the date of listing. If it fails to complete a QA within this time frame, the company will be liquidated and the amount held in trust account (net of taxes and liquidation expenses) will be distributed to shareholders.
Refund flexibility : Investors will receive 90% of their funds with interest, (after deduction of relevant taxes and liquidation/distribution costs which are not expected to be substantial), if the SPAC fails to generate an acquisition within a 3 years period or if they vote against an approved qualifying acquisition. The Non-Independent Directors, Management and Initial investors are not entitled to any distribution. No other IPO structure limits investors’ initial downside in this manner.

Investment by Investor (per share) RM0.75
Minimum amount to be distributed (90%) RM0.67 *
Interest in Year 1 (3%) RM0.02
Total distribution – if at the end of Year 1 RM0.69
Interest in Year 2 (3%) RM0.02
Total distribution – if at the end of Year 2 RM0.71
Interest in Year 3 (3%) RM0.02
Total distribution – if at the end of Year 3 RM0.73

6. Opportunity to invest in a listed oil and gas Exploration & Production company at entry price.
Under the SC guidelines, they are not allowed to talk to any vendors prior to being listed but after listing if there is some good announcements coming in the prices of this share will be totally different)

7. Board and Management team have extensive experience and relevant skills.

1) Former Shell Malaysia deputy chairman Zainul Rahim Mohd Zain is the non-independent non-executive chairman of Hibiscus Petroleum. He is also the Board Members of Petronas Carigali Sdn Bhd and Petronas Carigali Overseas Sdn. Bhd.
2) Former Sapura Crest Chief Operating Officer, Kenneth Gerard Pereira is the managing director. Pereira was in the Sapura group's oil and gas service business. He is also now the managing director of Mumbai-listed Interlink Petroleum Bhd, an independent oil and gas E&P company. He has 29 years of working experience of which 21 years have been in the oil and gas industry. Significant prior sector experience in the start-up and turn-around of companies engaged in the sector :- One of the founders of the oil and gas service business of the Sapura Group of companies in 1997, involved in the growing of the company organically and through acquisitions until 2008. Interlink Petroleum Ltd, a junior independent oil and gas E&P company listed on the Mumbai Stock Exchange. Under his stewardship, Interlink’s performance improved substantially, with a market capitalization increase from approximately USD3.7 million at the end of 2008 to USD35.5 million at the end of 2010.
3) Perisai Petroleum Teknologi Bhd’s managing director Zainol Izzet Mohamed Ishak who was former Sapura Crest Petroleum Bhd CEO also sits on Hibiscus Petroleum’s board. Held a CEO position for 16 years, out of which, 7 were in Malaysian public listed companies. Under his leadership, Sapura Crest became one of Malaysia’s leading oil and gas service provider.
4) Dr Rabi Bastia Padmashree (non Executive) - Involved in the oil and gas E&P industry for more than 30 years. Founder of the E&P business of Reliance Industries Limited, a member of the Reliance Group, India’s largest private sector enterprise. Credited with the successful exploration of India’s largest oil basins, many of them in deep water. Received several academic and state awards in India, the UK and the USA.

From my point of views. The risk is there but it would not be a great risk as most of the money invest are place in a trustee account and we have the rights not to proceed or to be a shareholder if the Qualifying Acquisition is approve and we are against it. At least we still receive 90% refund. Do remember we have another one sweetener - 1 free warrant for every ordinary share we hold in Hibiscus Petroleum Berhad. From here anything can happen with the warrant listing. Maybe it might move higher? There are few rumours stating that this share will be play once it listed in Bursa. How true is this story ????? No idea at all. Just make your own judgement.....

This statement was not an intention to ask or to persuade any of my readers to apply for this coming IPOs. It is just my point of views only.

"Sometimes when thing looks bad it turn out to be good or vice verse"

Tuesday, July 5, 2011

Star to Buy 4.99% of Catcha Media for RM4.97m

Catcha Media Berhad (“Catcha Media”) announced today that leading Malaysian media company Star Publications (M) Bhd (“The Star”) will be acquiring a stake in Catcha Media, in conjunction with the latter’s ongoing Initial Public Offering (“IPO”) exercise. Catcha Media is scheduled to be listed on Bursa Malaysia’s ACE Market on 22nd July 2011.

Catcha Media aims to raise RM17.25 million from its Public Issue of 23,000,000 new ordinary shares, each at an issue price of RM0.75 where 3,000,000 shares have been offered to the Malaysian public, while 20,000,000 shares are for private placement.

As part of Catcha Media’s private placement exercise, The Star has subscribed for 6,636,000 shares at RM 0.75 per share. This stake will represent 4.99 percent of the enlarged issue and paid up capital of Catcha Media upon listing, which represents the maximum equity shareholding in Catcha Media that The Star could possibly subscribe to, given the structure of the IPO.

The Star, currently listed on Bursa Malaysia’s Main Board, is Malaysia’s leading integrated media organisation, with group revenues totalling more than RM1 billion for 2010. It publishes Malaysia’s leading English language newspapers ‘The Star’ and ‘The Sunday Star’, which boast a million readers on average daily. The Star also has controlling interests in several radio stations and online portals.

Patrick Grove, Director and Founder of Catcha Media commented, “We are very excited to welcome the Star as a shareholder of Catcha Media, as we anticipate that this investment will be in line with the strategic interests of both parties. We are already in discussions with The Star’s team to explore potential opportunities for business growth synergy. We also appreciate The Star’s confidence in our business and future prospects.”

Ho Kay Tat, Group Managing Director and CEO of The Star said, “The Star views this
acquistion as a strategic move to add value to its current portfolio of high-growth media assets. Catcha Media is a regional leader in online media and advertising sales. We anticipate that Internet Advertising Expenditure (“Adex”) in Malaysia and the region will grow by more than ten times over the next five years. With our current new media properties and brands, The Star is positioned to benefit from this change in the advertising landscape. Our investment in Catcha Media as a market leader will further strengthen our competitive edge in this sector.”

Catcha Media is presently a media owner and operator of a magazine publishing business and an online media business. The magazine publishing business currently publishes 14 magazine titles, while the online media business sells Internet advertising space to Malaysian brand owners and advertising agencies. Catcha Media also has exclusive sales rights for leading Malaysian website, In total, media properties controlled by Catcha Media currently reach 9.78 million Malaysians. Catcha Media’s revenue in 2010 was RM35.42 million and its profit after tax (PAT) was RM8.1 million.

Catcha Media management intends to use the majority of funds raised from their IPO exercise for working capital required for business growth and to fund the research and development of online technologies in line with the growth prospects of the Internet Adex space.

According to Frost & Sullivan, online Adex in Malaysia is expected to grow at a compound annual growth rate (CAGR) of 56.63% per year for the next five years. Frost & Sullivan also estimates that Catcha Media captured a 26.62% share of Malaysia’s online advertising market in 2010.

Moving forward, Catcha Media seeks to expand by way of acquiring more representation and sales rights for local and international online properties, while leveraging its magazine publishing business to grow its online media business.

Ho Kay Tat went on to comment, “We see in Catcha Media a group of managers who, like The Star, have demonstrated their long-term commitment to becoming leaders in their sector. They have more than twelve years experience in the online media sector and their vision for the business fits perfectly with ours.”

Catcha Media launched its IPO prospectus on 30 June 2011. Subscription for the public placement is open until 8 July 2011. Catcha Media is due to list its shares on Bursa Malaysia’s ACE Market on 22 July 2011. A copy of the prospectus relating to this offering may be obtained from Bursa Malaysia’s website ( or Catcha Media’s website (

Friday, July 1, 2011

8 IPOs Listing In The Month Of July !

The FBM-KLCI is creating an all time high but nothing to cheers about. The share market performance looks quite dull with the volume and turnover still at low. The only exciting thing happens right now in the month of July was flooded with full of IPOs application and listing.

Why everything being put together at one time? We totally disagree the way they handle this listing situation as everything being list together in two weeks span. It is unfair for the public in applying for the new IPOs listing as it would squeeze their fund and opportunities in participation in IPOs listing.

One thing for sure there will good and bad things happen. The good things are we might be easily get the subscription of the IPOs that we are applying as not many of them will apply in such a short time. The bad things are it will lower the rate for the oversubscription ratio. Which counters might face the same fate as UOA Development Berhad or XOX Berhad. Can we said that Eversendai Corporation Berhad facing the same fate as well?

This month of July IPOs application and expected listing date.

1) Eversendai Corporation Bhd 01/07/2011 (Listed) - RM 1.70
2) OldTown Berhad 13/07/2011 - RM 1.25
3) Inari Berhad 19/07/2011 - RM 0.38
4) Bumi Armada Berhad 21/07/2011 - RM 3.15
5) Catcha Media Berhad 22/07/2011 - RM 0.75
6) Hibiscus Petroleum Berhad 25/07/2011 - RM 0.75
7) PeterLabs Holdings Berhad 26/07/2011 - RM 0.30
8) Prestariang Berhad 27/07/2011 - RM 0.90

Wednesday, June 29, 2011

FBM-KLCI Sets To Make All Time High?

The month of July is coming. How our FBM-KLCI fares right now? We can see most of the counters traded still at their low. Lately we seem to have an experience of a roller coaster ride in our share market with few counters like KNM, MAS, MUHIBAH, MAA, TIMEdotCOM tumbling to their lowest.

Basically it is not good for our share market as this kind of situation will dampen current share market sentiment even deeper. Looking at the charts of the FBM-KLCI, we can foresee that the FBM-KLCI still stand very strong and it is likely the FBM-KLCI will create a new high anytime from now. We are just having a different of about 5 to 10 points to break all time high of 1,576.95 set on 6th January 2011.

It seems that our Prime Minister Datuk Seri Najib Razak is doing a great job in handling the current Malaysian share market sentiments especially the FBM-KLCI index. Checking on some of the few counters movement and based on yesterday MSM Holdings Berhad listing, the market sentiment looks improving. Maybe next one or two weeks we might have some movement in our share market. So it would be better to look out for our favorite counters as well (going for speculations). We might have some opportunity to make some.

It seems that the Bulls are starting to make a come back with FBM-KLCI showing more signal to make a new high. Will it be a Big Bull coming back or just a small cow hanging around the farm? Time will tell (still hoping for the total turnover or volume done to achieve above 1 billion mark everyday).

Friday, June 24, 2011

The XOX Berhad Saga. What Has Gone Wrong - Part 2.

My previous post we were mentioning about the new listing IPO of XOX Berhad. Here are the latest development and information we have received. We went to meet our friends and try to get some information from them. How they end up in taking up such a huge quantity of shares in their hands.

The group of our friends that taking up the placement of XOX Berhad were paying RM0.75 per share. They were taking up a total of 3,000,000 millions ordinary shares of XOX Berhad. That was a huge amount of shares they have taken up. From the information we received, the shares were place out by one of the owner or one of the directors of the company (we don't know how true this information as we were just listen to their explanation).

The reason they taking up the shares so much because it was being offer at a discounted price of RM0.05 per share at the price of RM0.75 per share instead of paying up at RM0.80 per share. During that time they didn't expect they can incurred such a huge losses as they think the most worst scenario they can face at that time was; if the shares is list at the opening price of RM0.80 per share (Initial Public Offering), still they managed to survive because of the advantages of the discounted price.

Total initial placement was 6,000,000 millions shares with the 3,000,000 millions shares were place to my friends. All the 3,000,000 millions shares were divided among their friends. On the listing day they able to sold off their shares in losses (about 2,000,000 millions shares) with about another 1,000,000 shares still left in their hands. Total losses was nearly about RM350,000.00 to RM450,000.00.

Our friends also did argue before the listing exercise, they heard some of the shares were place out at RM0.70 per share and some even at RM0.68 per share. We were quite exciting listening to the story but we can't guarantee the other side of the story whether there is really a placement of RM0.68 per share or RM0.70 per share being place out.

As we can see from the story that we received, it seems there was a fault play being done or been arrange before the listing and after the listing. It seems that XOX Berhad listing exercise was just an exercise to teach us in future that we are having a very bad corporate image on our Bursa Malaysia and in future if we ever come across another discounted situation, we must be well alert.

Let us take this as a lesson to improve and to enhance our knowledge and to learn how our Malaysian share market is? We can't blame that some of the IPOs exercise sometimes didn't guarantee any return but the way the XOX Berhad listing exercise was arrange was totally a surprised for all of us. We are hoping that this matter would not happen again if our governments agencies that involves in preparing or approved the listing exercise and the Investment Bank who do the private placement do take care the public interest. Not just concentrating on making money all the times.

Monday, June 20, 2011

IPOs Recently Debut. What Has Went Wrong on XOX Berhad?

Lately we are seeing some few new IPO counters are facing some problem or difficulties when they went for listed recently. The demand or their performance was under performing especially the UOA Development Berhad. The public issue was offer at RM2.52 and the institutional prices were offer at RM2.60 but on the day it was listed, the share prices were opened at RM2.60 per share. This is something quiet shocking to many of the new investors who have just invested in this share through IPO and they are seeing some losses on their listing day until today.

That goes with XOX Berhad recently listing when we saw their share prices open at discounted IPO price on their first day opening and the prices tumble 35% until closing. The IPO prices were offer at RM0.80 to the public but was listed at the opening RM0.73 before it closed at RM0.52 on that day. It seems that the trends of new listings are not doing well on their debut. Maybe this is due to our recently Malaysian share market dull performance.

Basically we didn't blame if those two shares were listed and were traded below their IPO prices (willing buyer willing seller basis) but one thing for sure we have an issue to argue on the recently listing of XOX Berhad. Recently before the listing of XOX Berhad, one of the Investment Bank did offer us to take up the shares of this company.

Before the shares were being offer or open to the public to apply, we were being offer to take up the XOX Berhad at the price of RM0.80 per share. The offers come from one of our friends and we have decided to take a portion of it. During that time we were just waiting for the time to make the payment to the Investment Bank.

Few days before they asking for the payments, we were surprised that the shares that they were offer was below their offer price. We were told that the XOX Berhad share is offering at RM0.75 per share. A discount of RM0.05 per share from the issue price of RM0.80. Another Investment Bank (one of the remisier) also did the same thing; offer us at discounted price of RM0.05 per share. We were so surprised that this share was being offer at discounted prices. We were so curious and we even make a few survey and we were told that previously before the listing exercise the shares were being offer at RM0.70 with huge block being place out to certain identified investors.

How true the shares that being offer and place out at RM0.70 per share? We are not quite sure about it as we don't have any prove to show it but one thing for sure the shares were being offer to us at RM0.75 per share. During that time we are still considering whether to take up the shares or not, until we found out about XOX Berhad financial reports. We withdraw the deals because we were quite uncomfortable with their discounted price and XOX Berhad financial reports but a group of our friends are taking that offers. We heard that they incurred huge losses on the listing date and even some of them are still holding some of shares until today.

The question is?

1) Was it right for the Investment bank or anyone who have involved in this deal to make such an offer at discounted prices before being offer to the public to apply? It is unfair to the public.

2) Why the offer of the XOX Berhad was being offer at discounted price? Could it be a technique or some strategies from the Investment Bank to dispose the shares as soon as possible? By using this method, they would be able to unload all their shares for private placement even faster outside the market.

3) Could it be the existing major shareholders (who are laughing all the way now) given such a discounted price from the approval offer price of RM0.80 per share outside the share market before the listing exercise completed?

4) Why the Securities Commission (SC) able to approved such a listing in the first place? Was it because of their associated company or maybe their big supporter was Celcom Axiata Berhad?

Please refer to this website for more comments on XOX Berhad.

Because of such an unhealthy practice, the new IPO application are facing some new dilemma whether it would be a trend that such a new trend of new listing would not doing well when they were listed. From our point of views if these matters never really being taking care off or being watch closely in the future, it would be unfair to most of the investors who are looking for an opportunity instead they were being cheated for applying an irresponsible act from one of the listed company recently.

It is just like cheating public's money. Right now we have to monitor whether XOX Berhad have the abilities to perform based on their statement given by its CEO that stated the company WILL turn around and post a net profit of 19.8 million in 2011 after it had post a Loss of 13.1 million in 2009 and a HIGHER Loss of 16 million in 2010.

Thursday, June 16, 2011

Lousy Performance In The Month Of June. World Equities Market Unstable.

The world equities market seems to be going down lately. Our Malaysian share market performance (FBM-KLCI) still standing quite well but there are so many counters didn't perform quite well but some of the good counters are moving higher. Its kind of mixed market with more downside rather than upside.

Based on the chart wise the FBM-KLCI still look stable and are moving side way but overall we are having a lousy market momentum and sentiments. It seems that if we really invested our money right now we are facing more chances of losing rather than profiting. With the share market turnover still stand at low (below 1 billion shares), staying out from the share market would be the best option at these moments as we can't find any good fundamental or news to push the share market higher.

Here are some of the latest news that we can share together (Info from Jesper Lee-CIMB)

Paulson's Advantage Plus fund off 20 pct this year.

For John Paulson, June may be one for the record books -- in the most unwanted way -- as one his largest funds lost 13 percent in the first two weeks. The billionaire hedge fund manager, who made his fortune on a short bet against sub prime mortgages, ironically is being crushed after a short seller issued a critical report on a Chinese forest company he owns shares in.

Paulson's Advantage Plus fund, one of the $38 billion firm's largest, has tumbled nearly 20 percent this year after losing 13 percent in the first two weeks of June. Part of the decline is attributed to shares of Sino-Forest Corp (TRE.TO) which plunged 82.50 percent this month, an investor in the fund who is not permitted to discuss performance publicly said.

In early June Carson Block, founder of investment firm Muddy Waters Research, called Sino-Forest a "pump and dump" scheme and accused it of committing fraud. Paulson's spokesman could not be reached for comment.

In some respects, the sharp drop off in June, following a 6 percent drop in May, is not surprising given both the decline in Sino-Forest and an ongoing drop in the banking stocks Paulson also owns.

The bulk of Paulson's assets are in the Advantage and Advantage Plus funds but he also offers other portfolios, including a gold fund, which are performing better. But the 20 percent decline is stunning nonetheless for a manager who is widely revered for his calls on the economy.

But the timing of the drop comes at an especially awkward time, only days after Paulson met with hundreds of his investors in Paris at a festive mid-year review.

At workshops and during in-depth information sessions held amid cocktail parties and an elegant river cruise, the hedge fund manager told his clients that the economic recovery is not as strong as he would like to be, investors who attended the meeting said. The weakest spot -- the U.S. housing market, he said.

While Paulson's investors saw a drop in performance early in 2010 as well, they were later comforted when he rallied late in the year to pull out another winner.

This year, however, the eye-popping loss might be giving some investors reason to pause especially as deadlines to withdraw their money come up, people familiar with investors' thinking said. In fact, Paulson stayed on in Europe after a meeting in Paris to try and raise more money. He traveled to Geneva where he met with investors, a person familiar with his travels said.

Who Is John Paulson ?

John Paulson is the most successful hedge fund manager in history because he is pretty much always right in his predictions. He’s the world’s 45th richest man and is worth approximately $12 billion. His fund, Paulson and Co., is the third largest hedge fund in the world with $32 billion of assets under management.

He made some of the best trades of all time, shorting the sub prime credit markets in 2007 and 2008. Not only was he dead on with the prediction of the crisis, but he also made great execution of the trades. He and his partners constructed complex portfolios of the instruments they believed would be worst-hit, rather than just shorting an index.

Mr Paulson had a take home pay of $3.7 billion in 2007, considered the richest bounty in Wall Street history. Then, after he made all that money from the financial crisis, he started covering his short positions and started a “Recovery Fund” in early 2009, pretty much exactly the right time.

In August of 2009 he began buying financial stocks including Goldman Sachs and Bank of America. Because of his recent successes, a flood of investing capital has been added to his fund in the last two years. Since early 2010, Paulson has had over 100% of his funds invested in the market. He’s oscillated between 150% and 107% fully invested. The market has done him well this year.

On November 2009, he started a gold fund. This is because he believes the US and other countries are devaluing their currency and with all the money being put into the economy, inflation is bound to happen. Although it went down 14% in January, 2010, its first month of operations, it has rallied back and is up double digits this year.

Thursday, June 2, 2011

Not A Good Time To Play In The Month Of June ?

The month of June has started. As we can see until today our share market still didn't show any sign of improvement especially the the second liners and the third liners counters. No doubt we can enjoy the rally on the FBM-KLCI index movement (just by looking at it) still we can see there lots of counters moving down bit by bit and even created new low.

The blue chips still maintain very well with some of them even move higher to support the index. Basically if we dump or invest our money inside the current share market sentiment right now, we would be eventually inviting the GOD of LOSSES to look for us.

At these moments staying out from the share market would be the best option to take rather than we are too greedy to play or to invest it everyday because the bandwagons are heading downward. It is not easy to strike or to invest on the right counters unless we are really sure there is something going on or there is a news on that counter.

The turnover done for the Malaysian share market still consider very low at these moments and the sentiment still looks very dull with MAS and KNM having a big fall recently. The world equities market started to show some weakening sign. We need to have more positive news in order to push the sentiments moving upwards but basically based on previous historical data, the month of June never really bring any excitement things to the share market.

Wednesday, May 25, 2011

FBM-KLCI Reaching The Month of JUNE. Up or Down ?

It has been a while as we can see there was nothing much we can do about this share market performance. The turnover and the volumes were not there. It is a quiet share market at all and it is not a good share market to trade with.

Next week we will be seeing the month of June coming in. Can we expect that the Malaysian share market to move higher? I'm doubt about it as we can see there was nothing major news or changes that will enhance the share market movement.

FBM-KLCI is currently moving towards side way with the world equities started to show some weaknesses ahead. We have to be careful during this coming month of June. No doubt we cannot assume it will be a bad month for the equities market, yet we have to be on alert all the time. Basically June was not a good month for Malaysian equities market but because there were so many new giant IPO's coming in especially UOA Development, MSM Malaysia Holdings and Bumi Armada, there are chances that the share market will sustain its present trend (moving side way).

Friday, April 29, 2011

FBM-KLCI Moving Side Way But Prices Are Heading Down Bit By Bit?

Looking at current Malaysian share market right now, it seems that the sentiment is so quiet. Last week there were few indicators showing some good sign but right now it didn't seems quite well. The share market turnover or volume done didn't quite impressive at all.

No doubt the FBM-KLCI still looks nice and standing quite well but the sentiments was dull. Need more time to see where our market is heading to. At these moments watching from the side line would be the best option because I didn't expect the share market sentiments was so quiet after recently huge movement since the beginning of Japanese Earth Quake until now.

The month of May will arrive next week. It is very important to monitor how our share market are going to perform. Right now it seems there was no leader at all to lead and to guide the current sentiments. We will have to wait and see. The Bears seem to be coming out from the sleep.

Tuesday, April 26, 2011

FBM-KLCI Moving Up Or Moving Down ?

Looking at the share market condition right now, the turnover or the volume done was not impressive enough to push the market. In order for the Malaysian share market to push higher, turnover or the volume done must achieve around 2 billion shares a day.

Basically it seems that most of the counters are moving side way with few started to move a bit higher. Sentiment was not bad with the momentum still show some potential to move higher. At these moments it might be boring watching where our favorite counters tend to move. They seem to be playing around up and down in a small range (2 to 4 bits only).

It is important to watch and search whether there would be a market leader to bring and to lead the current dull sentiments. With the 13th General Election still playing around, putting some attention towards the Government link share will eventually help the current sentiments and our income.

FBM-KLCI must stay above 1,520 points at these moments. If FBM-KLCI breaks that level and close below that level, we would have to evaluate again the whole situation. Let us wait and see whether the FBM-KLCI still can hold on above these levels.

Friday, April 22, 2011

Market Seems To Have More Potential To Move Higher ?

Sarawak State Election has passes by but the FBM-KLCI reacted normally against the election results. Basically if we take a look on the Malaysian share market movement, we can assume that our share market right now are moving side way. It would be better for the FMB-KLCI if the turnover can reach towards 2 billion shares a day.

If we take a closer look we might have some opportunity ahead. What does it means that we might have some opportunity ahead? If we dare to accumulate right now (not every counter) we might have a chance to look for an upper trend ahead. How big is the trend? That one I don't have the answer but my outlook was based on some indicators appears recently this week.

It was based on some few speculation counters showing some indication of moving upwards but how strong they can move forward will depend on the overall sentiments. Overall world equities market are faring very well especially the Dow Jones Industrial Average. With the current Dow Jones momentum at these moments, it might help the current local share market sentiment as well.

This is just my assumption and my point of view and we cannot take it as it will happen in the first place (moving up) but for sure the month of May is nearing and we have to stay alert all the time. Based on previous record, basically in the month of May (maybe middle or end of the month) was not a good time for the share market. This is just an assumption only.

Another advice from my point of view. If we did accumulate any of the shares and all the sudden there was an announcement of 13th General Election, my suggestion is to unload all those shares that we brought for speculations.

Looking at the chart right now, we can foresee that the FBM-KLCI is staying around in between 1,520 points and 1,543 points. If the FBM-KLCI still manages to stay above 1,520 points, we still more rooms to move on. If the 1,520 points being taken out, then we have to re-adjust our point of view.

Monday, April 11, 2011

The Bulls Are Coming Back?

The Malaysian share market still looks very strong. We are having rotational movement among the speculation counters with some good counters also moving to help and push the FBM-KLCI higher. Since the Japanese earthquake crisis until now, indeed the Bulls are coming back to take over the Bears.

Seeing at the chart, the FBM-KLCI might have the ability to break the recently new high of 1,576.95 points set on 06/01/2011. At these moments the FBM-KLCI might be hovering around before move even higher. We can see that the turnover or the volume done for the FBM-KLCI is improving and this really help the whole share market sentiments.

Any correction will be treat as an opportunity to accumulate. From my point of view the FBM-KLCI might stand strong until the end of this month. In the coming month of May it is hard to tell. Usually when the month of May arrive the share market won't perform very well. Either middle of May or at the end of May. This is just a statement and we cannot take it that it will happen when the time has arrived.

The most important element right now we must monitor whether the FBM-KLCI is able to cross their all time high. Able to do so will bring the BIG BULLS charging back. The Dow Jones Industrial Average right now is hovering around their previously high and it is important to watch them whether they are able to penetrate their recently high of 12,390 points set in month of February 2011. If the index is hovering around and move backward then we must see how the FBM-KLCI will act on it.

With the Sarawak state election atmosphere surrounding around the Malaysian share market, we must be well prepare on the upcoming results from the Sarawak state election. Anything can goes wrong on the Sarawak state election. If the Barisan Nasional lose, it will bring very big effect to our share market.

Wednesday, March 30, 2011

FBM-KLCI Touching Their Strongest Resistance Level!

Since the announcement of intervention from the G7 group to help Japan, the Asian equities market are showing sign of improvement. The G7 group, whose members include the United States and the UK, joined the Bank of Japan in stepping into the currency markets to curb the soaring yen. This really help to stabilize the regional Asian equities market.

In the local front the announcement of Sarawak State Election also help our share market to boost a little. Looking at most of the counters, we can see most of the speculation counters are moving. The FBM-KLCI is moving towards their strong resistance level of 1,529 points. Able to penetrate and cross over that resistance with strong volume would confirm our share market is moving upwards.

At these moments the FBM-KLCI is touching their strongest resistance level. It is a good time to go in? Since the FBM-KLCI is touching their strongest resistance level, it is good for us to monitor current market sentiment and movement before any decision can be made. Usually it is not advisable to accumulate if the FBM-KLCI is facing their strongest resistance level.

Thursday, March 17, 2011

An Opportunity Arise From Japan EarthQuake?

An Earthquake + Tsunami + Nuclear Crisis. These were the concern at these moments and the main concern was the Nuclear Crisis. It was an unfortunate thing to happen to the people of Japan. My condolences to all the people of Japan who has lost their loves one. Anyway life needs to move forward after this tragedy.

Was there an opportunity arise from recently sell off on our Malaysian share market? Definitely it was an opportunity but when was it? From yesterday transaction we can assume that the sell off was done quite heavily but if we take a look on their prices, still we cannot assume that the prices were cheap enough for us to went in. A small rebound has occurred but how long can it sustain?

Based on the FBM-KLCI chart, we can see that the FBM-KLCI is moving side way in between 1,480 points to 1,529 points. Strong support still seen at 1,480 points. If this point been taken out drastically, we can assume that the Malaysian share market might be heading to the South. It would create another downtrend market in the process.

The world equities market still looks unstable after recently sell off. Based on their charts reading, it seems that they are heading to the South. This is not a good sign. With the current sentiment is still unclear, it is advisable to stay out for a while. At these moments the opportunity to make some income will be lesser if we want to compare the losses that we might be facing.

The Bears are getting stronger and stronger at these moments and the Bulls cannot be seen anywhere. With the nuclear crisis in Japan still looks very unclear, it is advisable to wait and look for any opportunity that might arise from this crisis.

Recently comments from The European Union's energy commissioner warned that "possible catastrophic events" in Japan could be seen in the next few hours. “The site is effectively out of control,” Energy Commissioner Guenther Oettinger told a European Parliament committee. “In coming hours there could be further catastrophic events which could pose a threat to the lives of people on the island.”

Monday, March 7, 2011

FBM-KLCI Looks Much More Better. Can The Index Move Higher?

Last Friday the FBM-KLCI performs very well. The index was up +15.73 points to close at 1,522.61 points. Still the FBM-KLCI needs to penetrate the strong resistance level of 1,529 points. Able to do will show more positive sign for the Malaysian share market.

Based on technical indicators the MACD is showing sign of accumulation at this moment but the indicator is still well below the neutral zone (negative zone). Beside the MACD, others indicators are showing some improving sign.

Monitoring the share market movement right now will be the right timing to do as we can see most of the shares were at low. It might be an accumulation time but the best timing to accumulate is to wait for any opportunity arise (accumulate when the share market was weak or in the correction mode). Just be careful when choosing a right counter.

Right now our share market is in the process of technical rebound (going up). Most of the counters that were gone down for the last few days have shot up nicely since last Thursday and Friday. Volume and turnover still not promising yet, the Bulls might be still resting. Any how watch the share market movement closely this month, there might be some opportunity arises in the coming month.

Wednesday, March 2, 2011

TIMING Play An Important Role To Determine Our Profit Potential

Since my last article until now, there have been no changes that we have to accept that the Bears are controlling the share market at these moments. As we can see for the past two weeks the Malaysian share market was controlling by the Bears. The Bears were just too great and too strong for the Bulls to come out from the hiding.

From my point of view, staying out from this share market for a while will be the best strategies as there is no indication that our share market is going to get better. It might become even worst but if we take a look what is really happen around the world equities sentiment right now. With the crude Oil prices reaches $100 per barrel and the share market volumes or the transactions are getting lesser and lesser, it is not a healthy market to trade with.

Basically based on these few days transaction, a technical rebound might occur around this week or next week provided that these few days the share market still heading towards the South Pole but this time around the technical rebound won't be easy to be trade. As usual choosing a right counter will determine our profit margin.

Looks for any counters that are experiencing sharp falls since last two weeks. These counters might have the big potential to add and to bring more profit into our pockets. One thing for sure TIMING plays an important role to determine the whole market sentiments. Catching the right counter but not at the right timing will definitely trim our profit potential.

At these moments we must concentrate in monitoring the share market movement and the sentiment. Any panic selling will be treat as an opportunity to grab at the lower prices. I would assume that at these moments we are playing "Catching A Falling Knife". If we are not careful enough, we might have a big cut in our hand and it might affect our confidence as well.

Friday, February 11, 2011

The Bears Are Taking Over The Share Market?

Wow, indeed yesterday was tremendous day in our share market. I didn't expect that it will fall so drastically. The FBM-KLCI went down -32.08 points to close at 1,503.99 points. If we take a look on how the share market traded yesterday, it seems that our journeys with the Bulls have just ended.

At these moments we must be well prepare for any bad outcome from the share market. It will not be a good market at all as we can see that the FBM-KLCI break the 1,529 points supporting level.

With this level being broken, the share market might move further down to 1,480 points level. If this level being taken out, it will be a bad sign for the Malaysian share market.

Right now I will lay off myself from the share market as the share market has already hurt from yesterday falls. It will not be an easy market to trade right now. We have to be more careful. Any accumulation of shares will not guarantee any return because the Bulls already went to hide and the Bears are taking over the share market.

Wednesday, February 9, 2011

The Bulls And The Bears Are Fighting Each Other.

Looking at the overall share market momentum, they tend to be more selling after recently the share market has adjusted their technical rebound. No doubt for the last two days the volume and the turnover looks very good with total transaction for each day increase to more than 3 billions shares traded still it didn't means that it was a good sign.

One thing for sure whenever most of the third liners start to move drastically after the share market recently run up from the beginning of January until now, our Malaysian share market will take a pause. They need to digest a bit after recently huge turnover and volume done but we must always remember that whenever most of the third liners start to move that is the sign that our share market is already end their journey to move forward.

Again I hope this statement was wrong because I'm expecting the share market to consolidate rather than going down bit by bit. It will be a mix market with the Bulls and the Bears are fighting each other right now. Who will win? We will see how our share market is going to digest recently turnover.

Basically in the month of March would be a good month for the share market. The atmosphere of General Election is getting around the corner with our Prime Minister still the key person to decide when the General Election would be held. There was a talk about it but it always turnout to be rumors only.

World equities market especially the Dow Jones Industrial Average still looks very strong with their index creating new high and new high again. Yesterday gain of +71.52 points (12,233 points) pushed the Dow’s daily winning streak to its longest in nearly seven months. Maybe there will be some profit taking in the process for the Dow Jones Industrial Average these coming few days.