1.As at Wednesday's close at 1379.73 the KLCI was lower by 12.45 points or 0.89%. Losers led gainers 583 to 389 and trading volume was 2.128 billion shares.
2.Our stocks did not fly like a bird, no thanks to a 226.47-point slump from the Dow.
3.But, given the sell-off in Wall Street, our stocks' resilience is remarkable, to say the least.
4.Except for TNB, TM, Maybank, Ho Hup, Naim which fell on fund selling, other stocks held up astonishingly well, with some even chalking up handsome gains like L & G, AMDB, SAPCRES, SAPCRES-WA, KNM, ZECON-Wa, ZECON.
5.Yes, we agree with analyst Stephen Soo's report that lower liners are holding up well and there is some more upside to go.
But one has to be selective. not all lower liners are going up.
6.Stocks from the oil and gas, property and construction sectors have the most potential of moving up. Hence it is best to select stocks in these sectors for more likelihood of gains.
7.If our market doesn't fall even with a plunge in the Dow, you can expect the KLCI to head upwards if the Dow should close higher last night.
10.Singapore stocks are not good and one should stay aside.
11.The ringgit weakened 250 pips, from 3.4000 to 3.4250, reflecting weakness in stocks.
CONCLUSION: The up side breakout was short lived. The 226-point drop in the Dow proved too much for the local market to take, dragging down local stocks. But falls were limited to a few stocks, and losses were minimal. This gives rise to the argument that if Dow should improve, our market should rally even more.
Long-term Upside Targets:1494 (Target amended on 15/6/07).
