Early CNY For The Market?

The question on everyone is asking is what the hell happened to the market over the last three days? Suddenly, it went to sleep, its like all the syndicates went to play golf. OK, that is not a fair comment but the market momentum kinda got sucked out for no apparent reason. There is no bad market news, nothing politically negative. Ask a remisier or dealer they will dig deep to give you an answer, and that answer will be "Aiyah, investors pulling out money from the market la for CNY".

What kind of b.s. reasoning is that? Is this the first year we are having CNY?? It seems to me that its a healthy correction but nobody seems to think it is one. We see popular stocks dropping 2-3% a day, nothing major, we see volume on popular stocks dropping by 50% or more, but nothing major. If you check back to volume traded last week, it was quite substantive. The fact that we are seeing only mild pullback now is a great bullish sign.

If one still has fresh funds, getting back in now is a good idea. Recent new listings are very interesting, but was thwarted somewhat by the slowish market. There was Tambun, Benelac and KSS. Herein lies the key, look at Benelac, the stock has very good fundamentals, the first day saw a good day but not spectacular. The sluggish market overall caused many shares to come out. However, it rebounded very well on second day and I think its a RM1.60 stock anyway.

Tambun I am not so keen. I am very keen on KSS. I see it having the same trend as Benelac, first day was mainly collection. Watch KSS for its second and third day, I see the stock at 75 sen minimum as fair value.

Posted in: