Below Expectation

Random walk among the blue chips-that is the order of the day, it seems. A lot of day-traders and punters were busy fishing around. The MUI-PMI game seems to be moving great guns. The surge of the Metronic share counter now looks like a flash in the pan as it fell 2 sen to 17 sen.

CI closed the morning down a minimalist 0.34 points to 1376. Losers knocked down gainers 471 to 263. Volume and value as expected has shrunk a little bit. Volume is now slightly down to 713, ooo with a value of RM850 million. Digi upped RM1 with ceramic manufacturer GBH moving up 27 sen. High and Low came to life adding 25 sen while KNM continue moving up, this time by another 25 sen.

The portfolio looks okay. JAKS continued its upward trajectory adding 9 sen to RM1.28 while KHSB spring to life adding 3.5 sen to 99.5 sen. Welli tacked on 0.5 sen and Genting was 5 sen better at R8.05. AMDB saw renewed buying interest to collect a gain of a sen to 46.5 sen. RCE and BJ Sports Toto meanwhile remained at their overnight levels of 90.5 sen and RM4.82 while Metronic slided two sen to 17 sen. Resorts was down 2 sen to RM3.80.

Noticeable buying interest continues to be good on the second grade blues. Market seems to be resisting selling pressure well ahead of heavy scrip delivery and the coming long market break.

Heartsong

A Potential Metronic Run Today

Will it break the 30 sen cap?

Up and away after the initial hour, it started. Heavy concerted buying. Definitely not for immediate raya ang pows. It moved up to 21.5 sen in a jiffy. That was a lot for a day - a sudden movement of 5.5 sen. As expected after the ''you know what is happening '' group of buyers and the ''follow you'' punters have got their shares, the market glided and slided on profit taking from those who had bought at 15 to 15.5 sen. Those who bought later may be fearfully running away empty or with some minimal losses. After some yoyo selling before 4.45 PM, Metronic closed at 19 sen for a 3 sen gain. Impressive!

By 4 pm, it appeared on the list of the most traded shares. Will it have its day today?

Why do you think it went up?

I believed it stayed dead even when the market went up the last 10 trading days because of the cursed bumi issue. If it had placed it out successfully, there was no reason why it should stay at about its lowest in history-15.5 sen. Secondly, it asked for a waiver but SC decided to give a deferment for a year instead. I think the bumi issue is seeing light at the end of the tunnel.

The China and Hong-Kong purchases were inadvertently delayed. Potential profits from taking over the phone manufacturing company could not be realised. This will impact upon this year's bottom line because Metronic is fast depleting its projects. New projects and revenues must be found. I think there is progress here.

Metronic is still waiting for positive developments in the telemetry projects at the Indian airports and possible projects in Dubai and in the Middle-east.I think there is progress here as well.

As it has performed pretty well in managing Putrajaya through its telemetry software, there is a possibility that its services has been continued.

Its health screening software may have found buyers.

With any of the above reasons, Metronic buyers may be speculating a re-rating and so have jumped into the buying frenzy.After all S&P has overweight Malaysia and the Bursa is expected to move strongly in the last quarter of 2007.

Heartsong

The Piece d' Resistance!

The market remained strong throughout the day despite some mild selling pressure before the close. CI remained entrenched at 1376.93, up 7.54 points. Losers and gainers were about even, 414 to 445. Volume continues to be good at 1.62 billion shares worth RM2.24 billion ringgits. Heard some rumours, elections will be called shortly and that is why Bursa must show strength from now on.

Gainers were led by bellwether stock Bursa which catapulted up 60 sen, Asiafile with good filings moving up 50 sen, Parkson selling up by 50 sen and BHIC gaining 44 sen. Bintulu Port lost 50 sen. Lion Div gave back 44 sen. Tenaga went down 15 sen and SPSetia slipped 15 sen.

The portfolio performed dismally when profit-takers scaled down prices at the end of the session. Genting lost 10 sen to RM8.00 while Resorts dropped 4 sen to RM3.82. Meanwhile RCE and KHSB both slided 1.5 sen to 90.5 sen and 96 sen respectively. AMDB also went down by 2 sen to 45.5 sen. BJ Sports Toto sat tight at its overnight level of RM4.82. On the winning side,Welli added 0.5 sen to 96.5 sen and JAKS added a sen to RM1.19. Meanwhile, Metronic took the show, adding 3 sen to 19 sen on a volume of some 16 million shares. Metronic should go up tomorrow or during this dull week since it was sleeping like a rubber log through out the mini bull run.

I expect the market to be quiet and dull except for a few speculative stocks like JAKS and Metronic.

Volume and value should come down.

Heartsong

Buoying the Blues

Double Ten - Independence Day for the PRC. Yet their stock markets are open. What a country! Dow Jones' record close, like a global tsunami, pushed Bursa up as well. Fund managers bought into financial stocks bolstering the CI. As such, the CI closed up 9.5 points to 1378.88. Volume transacted was fabulous at 980 million shares worth some RM1.15 billion. Gainers comfortably knocked out losers 406 to 328.

Among gainers, the bellwether Bursa counter shot up 40 sen, BHIC followed by adding 39 sen while Boustead tacked on 35 sen. Meanwhile O&G stock KNM moved up 32 sen. Lion Div led the losers after a fantastic price rise yesterday. It fell 31 sen. SPSetia also dipped, losing 15 sen while DFZ is still on the down trajectory, sliding another 14 sen. Rarely traded insurance stock, LPI slipped 10 sen.

The portfolio was again mixed to better. Genting, after an early push, settled unchanged at RM8.10. Resorts added 2 sen to RM3.88 while BJ Sports Toto move up 4 sen to RM4.86. Metronic outshone by moving up 3 sen to 19 sen with a mammoth volume of 139,376 lots while Welli was equally impressive with its three sen rise to 99 sen. Meanwhile JAKS slided a sen to RM1.17. AMDB was off 1.5 sen to 46 sen and RCE settled down half a sen lower at 91.5 sen.

Let us see how market will fare in the afternoon.

Will the fund managers stay to play?

Heartsong

The Blue Chips Knocked Out the Bears

Yes, talk about market resilience. It started well, turned bad and finished pretty well, I should say. So the fund managers are still in, pushing the blues skywards. I hope this can be sustained especially with the Columbus Holiday in US and the impending Raya flight from the market. Pretty difficult would be my first reaction.

CI was better by 5.25 points to 1369.39. Losers and gainers was about matched 423 to 416. Volume continues to be good at 1.7 billion shares worth RM1.93 billion. Foreign funds presence?

Gainers were led by William Cheng's Lion Div and Parkson drawing gains of 96 sen and 75 sen respectively.Commerce also came in with handsome gains of 40 sen and so did Sime with an equal amount. Losers were big boy BAT losing 50 sen;Aeon dropping 40 sen and Bintulu Port and CIMA both losing 30 sen.

The portfolio was mixed to easier. RCE Capital added 2.5 sen on renewed support to 92.5 sen while Resorts increased 2 sen to RM3.86. Genting meanwhile lost 5 sen to RM8.10 while BJ Sports Toto declined 4 sen to RM4.82. Super speculative stock JAKS went down a sen to RM1.18 while KHSB slided 2.5 sen to 97.5 sen. Elsewhere, AMDB weakened to 47.5 sen losing 2 sen while Metronic slipped by half a sen to 16 sen. Welli also lost a sen to 96 sen.

If Dow Jones tonight can hold steady, then Bursa will go sideways. If Dow goes down, it is very likely Bursa will follow because of the advent of heavy scrip delivery and the midweek day when fund managers will leave for Hari Raya Puasa Aidil Fitri celebrations at their respective kampungs.

Anyway, the sudden appearance of blue chip buying in the afternoon trounced the bears. As depicted by the picture above, they are lean and hungry.

Be careful.

Heartsong

A Struggling Chicken....

Against the Dow fall of 22 points, Bursa started animatedly like a wild chicken moving up some 7 points. Then, all of a sudden, the bravado was gone. By the noon close it was trickling blood losing 2.89 points taking down the CI to 1361.25.

Gainers were William Cheng's recovering counter Lion Div which upped a hefty RM1.05. This was followed by another William Cheng stalwart, Parkson which perked up 55 sen. Sime went up 30 sen followed by Digi edging up 20 sen. The losers were all time fat bulemics BAT losing 75 sen and IOIProp dropping 60 sen. KLK slided yet another 30 sen followed by Shell which slipped 20 sen.

The portfolio was mixed to easier. Resorts managed to tack on 4 sen to RM3.88 while RCE got back 1.5 sen to 91 sen. The rest were losers. Genting lost 5 sen to RM8.10 and Metronic lost 0.5 sen to 16 sen. Meanwhile, KHSB and AMDB both slided off 3 sen to 97 sen and 46.5 sen respectively. JAKS and BJ Sports Toto both moderated to RM1.15 and RM 4.82 shedding 4 sen each. Welli slided 1.15 sen to 95.5 sen.

Market should turn softer in the afternoon.

Heartsong

Imminent - Bear Trap

Fantastic volume of shares changed hands today. Some 2.1 billion shares worth 2.1 billion ringgits, if my calculation is correct. Is this the prelude to a super bull run on the bursa? Or is it the beginning of a bear trap set for today until next Tuesday after Hari Raya?

The CI went down to 1364.14,losing some 8.25 points. Gainers lost to losers 378 to 517. Gainers were Bursa shooting up to high heaven with a 70 sen gain. Widetec turning on with a 32 sen gain; Suncity gaining 25 sen while PLS moved up 20 sen. Going down were UtdPlant by 40 sen;KLK sliding by 30 sen, UAC giving up 38 sen and Astro going off 34 sen.

The portfolio saw AMDB gaining 4.5 sen to 49.5 sen, JAKS adding 2 sen to 1.19 sen and Metronic moving ahead by a sen to 16.5 sen. Meanwhile, Genting lost 20 sen to RM8.15; BJ Sports Toto gave up the ghost losing 10 sen, Welli went bottom fishing and came out short by 4 sen to 97 sen, Resorts lost the bid to RM3.84 losing 8 sen and KHSB slaloming down to lose 3 sen to RM1.00. RCE lost 1.5 sen to 89.5 sen

If the volume continues to be large tomorrow with a downward bias as fund managers pack up to go home, it will definitely be a bear trap. Friday will be a helluva day to buy shares then.

So those who want to play to win, stay patient until Friday evening.

Heartsong