Family of Four

A More Concerted Ascent

Market rebounded last Tuesday. There was that expected profit taking on Friday, erasing almost all the gains on the Composite Index for that day. Some fund managers are predicting further consolidation and possibly further profit taking. They are looking for cues from Wall Street.

As I see it, the entire melt-down was the dastardly machinations and mob action of get-out-quick fund managers trying to salvage whatever gains they have got. As averagers, they could sell down and yet get a fair return on investment. I think the worst is over, though there is some trepidation of residual correction brought about by fear mongers.

I believe the market will firm out this week beginning today or tomorrow as fund managers move in to take advantage of stocks which have medium term values. This will firm up the plateau further for the index to move up, albeit slowly. As usual, expect liquidation on volume stocks favoured by punters as weak holders are forced to do so by margin calls.

Maybank should lead the pack again today and if the market moves up, Bursa will follow suit followed by the other banks such as Public Bank, CIMB and EON Capital. There could be some rotational play on good second liners as well as GLCs.

The market ended up 14.46 points. Genting and Resorts led the gainers and Maybank perked up 20 sen while Bursa gained 15 sen.

My reading is that there is sustained buying today though weak sellers were present at certain times of the day to trim gains. Altogether, a very encouraging finish for the day. The very fact that Dutch Lady saw renewed support points to the presence of fund managers. My take tomorrow is that there may be some profit taking in the morning session for counters that have gone up too quickly such as Genting and Resorts World. Second liners may put on some gains tomorrow because gains have been marginal today.

Quote of the Day:

“If you want others to be happy, practice compassion. If you want to be happy, practice compassion.” Dalai Lama

Heartsong