Are We to be Devour by the Bear?

The whole world seems to be in euphoria. Global markets are extending their gains. Indices are moving closer to levels before the sub-prime fiasco in late July-mid August 2007. Every one seems to have forgotten the gripping fears that almost impaled them.

In today's situation, best to be cautious. Wall Street is a house of cards because the sub-prime is just being covered under a thick woolen carpet. It will rear its head. Question is when. So like the salmon, do not be devour by the approaching bear!

Taking the cue from New York, Bursa rallied to close up 14.77 points bringing the CI to 1335. Gainers thumped losers 584 to 242. Gainers were Lion Div shooting up 60 sen, CIMA adding 50 sen;DFZ recovering 50 sen and PPerdana notching up 56 sen. Losers were Quality losing 25 sen, Far East sliding 25 sen as well,Glenealy dropping 12 sen and Dutch Lady falling 10 sen.

The portfolio was fairly mixed. Genting which rallied all day succumbed to profit taking in the afternoon to close unchanged at RM8.00. Metronic,AMDB and KHSB closed unchange as well at 15.5 sen,39.5 sen and 93 sen. Welli added 0.5 sen 97 sen while JAKS upped 1.5 sen to 83.5 sen. Resorts added 4 sen to RM3.98 while BJ Sports Toto climbed 12 sen to RM4.98 ex- dividend-the tenacity of this share counter is unbelievable! Meanwhile RCE lost 3.5 sen to 93.5 sen.

As the afternoon session did not see strong gains and tomorrow is Friday, Bursa may just maintained its momentum if Dow is good tonight. Forced selling may appear on RCE and if there is no follow-up buying, RCE should easily fell another 3 sen.

Heartsong