Family of Four

She’ll Be Coming Round the Mountain…

I really loved positive prediction and evaluation of Bursa. This morning, over the radio, I heard that the market’s support level is 1,220 and it may go out to as high as 1,260. Optimism is good but we should not go overboard. As whether it will reach 1,300 is anybody’s guess but it definitely will not be soon. Market ascent does not go up in a straight line. Like the experienced mountaineer, they rest at many point stations before they actually ascent to the peak. This is a good analogy to go by. In the event that prices do go up too steeply in a normal market, profit taking will come in naturally to level off any congestion.

KPS is one such stock. Its price went up almost 100% by the close of last week’s trading. Hence, this will be a week of base-building and consolidation. Weak holders will throw out their shares and there will be new accumulation at this level of RM 1.15-1.18. By 1145 am, some 66,000 lots have changed hands.

Meanwhile, market rumour is that an international tender for the 44.6 km tunnel works for the Pahang-Selangor raw water transfer project could be called soon, as the Government plans for work to start in early-2008. This would be a positive development which could lead to the roll-out of other main packages of the estimated RM9bil project. KPS could benefit from the early start of this project as it is involved in some packages.

KPS ended down 11 sen to RM 1.11 after heavy unloading by speculators and weak holders. Volume done was 124,000 lots. Market was generally weak and ended down 0.57 points.

Let us hope there will be a change of mood tomorrow.

Quote of the Day:

“Happiness is an attitude. We either make ourselves miserable, or happy and strong. The amount of work is the same.” Francesca Reigler

Heartsong