2143 ECM >>> Buy on dips TP RM1.00

The rationale of accumulating 2143 ECM is based on a strong S&P 500 turnaround. SPX aka S&P500 just broke above the SMA 200 which is technically a bullish achievement. Other than the 30 DOW components, all the major banks and financial issues are grouped into the SPX. ECM being an investment bank will also benefit from the Govt efforts to promote and increase foreign investments in local financial instituitions.

Note the Mid Bollinger Bandwiths support of ECM

ECM is a RM1.00 PAR Value stock >>> not an expensive buy at 68sen or is it? Not when it still is delivering respectable profits. Looking forward, biz will be better with the increasing KLSE daily volume. Analysts are predicting a 10% growth next quarter. ECM is in negotiation with a Singapore financial company to enhance business both sides of the causeway.

FYE 31/1/09
Net profits 84.387m

NTA 1.09

EPS 0.62

PE 6.7

DY 0.03

BUY ON DIP

TECHNICAL ANALYSIS >>> Composite Index 02/06/2009 / 综合指数 2009年 6月 02日

Composite Index Daily Technical Analysis 02/06/2009
Due to the overnight strong gain of the Dow Jones Industrial Average, the KLCI opened higher on Tuesday, while touching an intra-day high of 1072.07 points. However, the KLCI could not sustain its gain, and soon most of the early gains were given back due to profit taking as the KLCI is near the 1077 resistance, closing the day at 1063.62 points, up only 1.82 points.

Resistance for the KLCI remains at 1077 Fibonacci Retracement while the T2 line and the Bollinger Middle Band are still the dynamic support for the KLCI. Meanwhile, as indicated by A, the Bollinger Bands Width contracted another 18%, suggesting the KLCI is still in a consolidation stage.

As indicated by B, total market volume increased 31.6%, with volume returning to above the 40-day VMA level. This shows that the market participation is now relatively sufficient and if volume should remain above the 40-day VMA level, it would help the KLCI regain strength. Nevertheless, a healthy increased of volume should be associated with the rise in price, and therefore, if the KLCI should failed to break above the 1077 resistance in spite of strong volume, it would actually means that the resistance is strong, as selling pressure is higher than buying interest. This is an important factor which investors should never overlook.

As circled at C, the Stochastic started falling but still above 70% level, suggesting that the short term movement of the KLCI is still bullish biased. If the Stochastic should break below 70% level, it would be a signal suggesting a beginning of a technical correction.

Despite the strong gain of the Dow, most Asian markets opened higher but closed lower, so did the KLCI. Nevertheless, with the Bollinger Bands Width still contracting, there is not signal suggesting that the KLCI is regaining its bullishness yet.

综合指数 2009年 6月 02日

在隔夜美国道琼指数上扬超过200点的带动下，综合指数周二开高，一度上扬至1072.07点的近年来的新高水平，无论如何，由于综指接近1077点的阻力水平，所以市场出现套利活动，导致综指回软，按日只微扬1.82点。综指目前的阻力水平依然是1077点的胜图自动费氏阻力线，支持水平则是T2的上升趋势线及布林中频带的动态支持水平。

如图中箭头A所示，布林频带继续收窄18%，这表示虽然综指上扬，不过综指技术上还是处于巩固格局中，接下来若布林频带继续收窄的话，综指继续会有调整巩固迹象。

如图中箭头B所示，马股总成交量周二增加31.6%，使到成交量重返40天的成交量平均线（VMA）水平以上，这表示市场交投有望恢复活跃，若成交量能够维持在40天的成交量平均值以上的话，那将有助于综指摆脱巩固格局恢复上扬趋势。不过，若成交量持续增加但综指却还是未能突破1077点，那表示阻力相当强，那综指将开始有转入空头市场的可能，换句话说卖压开始增加，投资者可要留意这一点。

如图总C圈所示，随机指标（Stochastic）虽然稍微下滑，但依然维持在70%水平以上，这表示综指短期还是处于强势中，直到随机指标跌破70%水平为止。

尽管美国道琼指数带动，亚太区域股市却开高收低，这显示投资者正在逢高套利，市场继续有调整的迹象。布林频带目前处于收窄的状态，所以综指还是处于巩固中，虽然综指以及处于布林中频带以上了，不过还是必须等到布林频带重新打开，综指才算是正真的结束巩固，开始新的走势。

7228 TGOFF >>> Slowly but surely

This stock is like any from AK's stable; it ain't no lame horse. A well managed & profitable company with AK himself in direct upper contacts at the highest level of the Govt. Nevertheless 7228 still have it's downside .....

PE 15+ a little on the high side

Note : There are also TGOFFS WA & WB >>> check them out :P

Not very generous with DIVIDENDS which in any case will boost the attractiveness had AK been more distributive instead of so "kedekut"

Good for those who do not like "kitchen heat"

Asian markets retreat on North Korea concerns 6.00pm 02 June 2009

Asian markets fell in Tuesday trade after temperatures in North East Asia rose following news that North Korea may have moved equipment for a long-range missile test, thereby risking an escalation of hostilities. This comes after a nuclear test and the firing of six short-range missiles last month.
World stocks edged lower on June 2 after a buoyant session the day earlier and the dollar climbed off its lows against major currencies. The dollar steadied after hitting its lowest this year versus a basket of currencies on Monday. Commodity-linked currencies such as the Australian dollar, which hit an eight-month peak against the U.S. dollar, also eased.

The dollar index was up 0.2% at 79.351 after hitting its lowest since mid-December at 78.586 the previous day. The euro was down 0.3% at US$1.4121, having rallied to US$1.4246 on trading platform EBS on June 1, its strongest since late December. On euro zone bond markets, the 10-year Bund yielded 3.661%, down 1 basis point

The Nikkei 225 managed to close 0.27% up at 9,704.31, which was a reversal of a strong 1.63% close yesterday. Hong Kong’s Hang Seng Index fell 2.64% to 18,389.08 after yesterday’s 3.95% gain.

The KLCI added 0.17% to close at 1,063.62 following Monday’s 1.69% advance. At Bursa Malaysia, there were 350 gainers, 326 losers while 225 counters were traded unchanged. There were 2.11 billion shares done with a total value of RM1.92 billion.

Among bank stocks, Maybank gained 20 sen to RM5.50, Hong Leong Bank added 10 sen to RM5.75, Public Bank and its foreign tranche were up 5 sen and 10 sen to RM8.65 and RM8.80 respectively. BCHB lost 10 sen to RM8.65.

Plantation stocks IOI added 6 sen to RM4.64, KL Kepong rose 20 sen to RM11.90 and Sime dropped 10 sen to RM7. Genting rose 10 sen to RM5.70, UMW added 10 sen to RM5.80, TNB lost 20 sen to RM7.70 and Axiata was 3 sen lower at RM2.36 while Boustead fell 14 sen to RM4.28.

Nymex crude oil dropped 51 cents to US$68.07 per barrel.

Crude palm oil 3rd- month futures lost RM37 to RM2,588 per tonne.

The ringgit was quoted at 3.491 to the US dollar.

Maybank, IOI among top movers at midday 12.30pm 02 June 2009

Maybank and IOI were among the top movers at midday Tuesday as investors remained positive over recent economic data from China and the US, which saw factory orders recovering.

At the close of the midday session, the KLCI was up 0.30% to 1,065.00 while Singapore’s Straits Times Index added 0.99% to 2,403.58.

Tokyo’s Nikkei 225 grew 0.96% to 9,770.99 while Hong Kong’s Hang Seng Index lost 0.30% to 18,831.85.
Shanghai’s A share index gained 0.64% to 2,738.82 and Seoul’s Kospi Index advanced 1.00% to 1,429.25.
At Bursa Malaysia, there were 349 gainers, 214 losers while 222 other counters were traded unchanged. There were 1.39 billion shares done at a total value of RM1.14 billion.

Bank and plantation stocks were featured prominently among counters that were traded heavily.
Among bank stocks, Maybank added 15 sen to RM5.45, Public Bank gained 10 sen to RM8.70 while its foreign tranche added 10 sen to RM8.80.
BCHB dropped 5 sen to RM8.70, Hong Leong Bank gained 15 sen to RM5.80 and AMMB was 2 sen lower at RM3.34. Plantation stocks IOI was up 6 sen to RM4.64, KL Kepong gained 20 sen to RM11.90 and Sime fell 10 sen to RM7.00. MAS was down 8 sen to RM3.20, Shell dropped 40 sen to RM10.80 while Genting added 5 sen to RM5.65.

SAAG was the most active with 124 million shares done, rising 3.5 sen to 37.5 sen while KNM added four sen to RM1.03. Scomi gained eight sen to 79.5 sen. JAKS rose 10.5 sen to 94.5 sen on expectations of securing more contracts.

Tenaga fell 15 sen and it was the main drag on the KLCI. Other decliners were Crest Builder-WA, sliding 17 sen to 21 sen and Parkson, also down 17 sen to RM4.98.

Nymex crude oil retreated 13 cents to US$68.45 per barrel.

Crude palm oil added RM6 to RM2,631 per tonne.
The ringgit was quoted at 3.486 to the US dollar.