Bursa-Maverick or Diabolic?

Good heavens! Just when you thought that you should not be over optimistic and be pedestrian instead on the market outlook, the maverick market goes manic again and put on a prodigious gain. The index was at of 1,228.22, up 18.88 points by 10.15 a.m. There were 633 gainers to only 70 losers.

Leading the market was IOI Corp and its sister company IOIProp. So we have new knights today. I believe the new leaders are moving up because of the speculation that the Real Property Gains Tax (RPGT)will be moderated downwards or removed entirely. This will be good for mostly property, construction and civil engineering stocks.

In conjunction with this, beginning today I will track the movement of Kumpulan Perangsang Selangor (KPS) until the news of the RPGT becomes a reality and see how far KPS will go. KPS is the jewel in the crown of the Selangor State Government. It is the State investment arm and is into property and waterworks. It went up 12 sen today on heavy volume.

Meanwhile, Maybank has put on 20 sen and Bursa; 40 sen on heavy buying. Maybe the future market has run ahead, pulling up Bursa’s price.

Another reason could be fund-managers have got their new tranches of funds and this could have caused the roaring start of today’s market. Will it sustain? Let us watch the market index closely.

At the noon close, the index stood firm at 1,225.08; up 15.74 points. This is a very good sign. Another 55 points are we are home. This morning’s performance shows that there is renewed confidence amongst the investing public on the Bursa’s resilience. Gainers led losers; 745 to 187 and trading volume was 1.5 billion shares valued at RM1.6 billion.

One good sign is that second liners like MRCB and UEM World are on the move. I think retailers are returning. I hope the gains will be maintained this afternoon to provide a firm grounding for tomorrow.

Market slided from the opening bell for the afternoon session till 3.50 p.m. It then turned around and started the claw-back after that. However, the advance was brief and it went southwards again. Market closed 1,221.72 for a 12.38 points increased. To me, the gain is good as the index is now above the 1,220 psychological level.

Tomorrow is Friday. Will prodigious Fortune smile on us this new day?

Quote of the Day:

“Wherever you go, no matter what the weather; always bring your own sunshine.” Anthony J. D'Angelo

Heartsong