KLCI set to chart all time high?...

Well, many believe the general election 13th is around the corner for Malaysia and justified that it was the reason why the KLCI is in a sideway or consolidation mode... of all the sudden today the composite index jump close to 20 points and created a bullish engulf pattern on the previous day close. So is this a sign of more to come?, we may ask ourselves?

Few points to note:

1) Governement's decision to raise the electricity tariff signals that najib is willing to push on for more reforms - which is good for the long run and economic health of the country

2) Such unfriendly decision pertaining to item #1 above will need time for it to sink into the people of the country - election is not going to be July this year because Najib needs time for the people to forget and adjust

3) Likely that the government will reduce more subsidies in the near future and also the intro of GST - good move in the eyes of foreign investors

4) Najib's administration needs money for GE13 campaign after huge spending in the Sarawak election - stocks to move up to allow "bankers" to unlock cash and provide funding.

I pesonally feel election is going to be next year Q1 but then who knows what the PM has in mind...

So in short, KLCI should be on its way to create all time high from here before pulling back to close at ~1625 by the end of 2011.

Note: To those who are superstitious, from feng shui perspective, June is a bad month though... but I beg to difer... we'll see how it turns out though.

Equity,a sit out or buy in?

Since my last posting on Perisai, the stock has since went up to beyond 80 sen and come back down to about the same level when I posted the trading buy call...
Anyway, if you're "superstitious" then its a bear from now till Aug-Sep timeframe afterall we're in May and we all know what the saying is for May.... and you should go on a break from equity and take a long deserve holiday while keeping your cash in non equity forms.

On the other hand, knowing fully well that Malaysia is on the verge of its general election (13th, likely end of the year), and the many projects being announced particularly the Petronas projects in Johor state, and also the many privatisation plans for list of companies under Tan Sri Syed Mokhtar and Khazanah's selling of its GLCs' stake is to some extent can be viewed as positive developments for KLCI.

Bear in mind that the government (BN) needs money for their election campaign and apparently Syed Mohktar is one of BN/UMNO main banker, the list of privatisations will happen soon because it will free up cash and return much to the banker.

In particular DRBHCOM tranformation is going to accelerate, Bank Islam and Bank Muamalat will merge and DRB will emerge as main if not the sole owner. TCubes will go into oblivion. The news of the myemail appears to be a marketing gimmick for shareholders to unload.

So what does it means for investors on the street? Buy selective counters with relation to BN/UMNO might be a good start. Afterall, >90% of the counters in KLCI are junks most of the time... mainly due to lousy management and incompetent SC.

Well, IPOs are a good investment too but my rule will be to sell within the first 1 minute of listing. Like it or not, there are more MClean counters in the future so as long as the SC remains what it is, its the first 1 minute transaction for me.... take IJacobs for example, those who did would have made few folds... :) those who don't just might have waited too long that the shit hits the fan, at the very least Ijacobs is still above IPO price... anyway MClean deserve the title of "The fastest decline in IPO price in history so far" thanks to all those who partake in the IPO process, Kenanga et all.... you sucks.
Think the stock is going to stabilize at 29sen.

PERISAI ready to bounce?..

Perisai has been on the slide from 88sen since 20th April and hits a support level of 72.5sen today.... will the stock rebound in the next few days? Technically if volume picks up and the stock hold above 71.5 sen, the stock is expected to recover its losses in the next few days...

Well trade with care cause the KLCI is under much selling pressure such as May effect, increase in interest rates, further monetary tightening by bank negara, political unrest and election uncertainty factor. We can still earn from other market of course but I think perisai has good trading prospect.

Despite the shitty market, think this counter is a good buy afterall the selloff lately and the price looks rather attractive. You decide.

Malaysia Brain Drain follow up...

Courtesy from an article I read by Koon Yew Yin. Malaysia brain drain is serious but to the BN/UMNO in particular this is likely to have exceeded their party KPI to drive out more non bumniputra to leave the country for political gain.

http://english.cpiasia.net/index.php?option=com_content&view=article&id=2175:malaysias-brain-drain-government-in-perpetual-denial-&catid=211:koon-yew-yin&Itemid=193

Tan Sri Bernard Dompok, the true leader.

Read the article from MAlaysian Insider and for once, I am convinced that not all BN MPs are useless and lives a cowardy life. Tan Sri Bernard Dompok, I salute you and for a sure thing, the rakyat will vote for you to lead us in the next government in the making come GE13. God bless those good leaders like Islamic Spriritual Leader Nik Aziz (tok guru)-Menteri Besar Kelantan, Lim Guan Eng, Tan Sri Bernard Dompok and Datuk Seri Anwar, Tengku Razaleigh.

http://www.themalaysianinsider.com/malaysia/article/whats-wrong-with-christian-pm-asks-bn-minister


This is what I call great leadership and man of principle. Thank you for standing up for majority of the rakyat as for reality no parties in the country is disputing Islam as the official religion as its been listed in the constitution.
UMNO is creating unrest based on baseless news created by some slime balls good for nothing faggots in UMNO. MCA, MIC, where are your courage? And worst the PM is condoning all this?!?

TELL ME WHY THE FUCK WOULD THE FOREIGN INVESTORS COME TO A COUNTRY LIKE THIS???
No wonder the country is not progressing economically and the ringgit is 3x behind the US and Aus and 2.4x behind Singapore a country a few 10x smaller than Malaysia.
HEll the stock market is also fucking shitty of late!!
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