Into Second Gear

Yes, knowing the Malaysian market, it will go up by merely pushing up primarily the plantation stocks. The very sensitive financial stocks is next followed by the industrial. Then there are those middle-of-the-road sectors like infrastructure, construction and property which is popular as they are the beneficiaries of the Malaysian government in its development plans.

This morning, Bursa performed slightly better than yesterday's debilitating show. The CI went up on double digit gains of 11.31 points to 1295.06. That is less than 5 points to cross the psychological threshold of 1300 again this year. No problem. all you need to do is push up Maybank. Gainers overtook losers 520 to 200. Volume was 576 million shares worth RM877 million. Not too bad.

Gainers were Transmile, restored by the Kuok reputation to move up 44 sen. Landmarks, the subsidiary of Genting climbed 34 sen, PPB; another Kuok vehicle jumped 25 sen whole IOICorp climbed 20 sen. Losers saw the likes of Muhibbah letting go 15 sen and DFZ another 10 sen.

The portfolio faired okay. I have now included KHSB to trail after the KPS trajectory since it will be the main vehicle to collect UMNO election funds. KHSB also has its own story to tell- a possible de-listing and so there are premiums to collect. A water development contractor, it is also the largest Selangor state-owned listed property developer with plentiful of land. Should benefit from the 2008 Budget this Friday.

Here are the stock positions.

Resorts spurted upwards to gain 14 sen to RM4.08
Genting collected 15 sen to RM7.55
BJ Sports Toto collected 2 sen to RM4.86
KHSB added 3 sen on a turnover of 55,185 lots
JAKS tacked on 2.5 sen to 92.5 sen
RCE upped 2 sen to 83 sen
Metronic rose 0.5 sen to 17.5 sen
AMDB added 0.5 sen to 42.5 sen on a turnover of 38,726 lots
Welli was unchanged at RM 1.02

The gaming stocks may be up because of the likelihood of no increase in gaming tax in the 2008 budget.

Today is Wednesday. Market is good. We have just two days to have that little bullish push towards the 2008 Budget speech. Will it happen?

My guess is there has been fore-runners like Equine and Muhibbah but the mother ship is just behind. It may just ramped up the market this afternoon. So keep your fingers crossed especially for speculative stocks like KPS, KHSB, JAKS and property and construction stocks.

Heartsong