Stroll in the Park

Today is an atypical day of the 2006 Bursa before the November burst out. Lethargic and taking a stroll n the part. Fund managers are on long coffee-breaks. Mutual fund managers particularly are sorting out to rebalance their portfolios since they can buy 20% more stocks abroad.

What will they sell since they have to withdraw from some stocks on the Bursa? For banking, it could be possibly be only hold Maybank or CIMB. They would have to reduce their holdings in the other banking stocks. Engineering-possibly, they will stay put in UEM world. This rebalancing will put a brake on the market advance somewhat. For retailers, they have just no motivation to take positions until clearer signals can be sighted.

Market started with about 4 points gain to 1,239.88 and touched the new psychological support level of 1,240points at 11.50 am. From now onwards, let us sit just sit pretty and watch how it will pan out today.

Indicators today; Genting and Dutch Lady in minus territory. IOIProp, KLK and Gamuda are the leaders.

My reading for today. Fund managers are still digesting the abolition of the RPGT and the perks given to investors in the Iskandariah Development Region. However, do not expect much positive development in the short run.

Quote of the Day:

“If you want to be happy, be.”Leo Tolstoy

Heartsong