Penny stock party on

by **Cals** Sun 22 Sep 2013, 19:08

Published: Saturday September 21, 2013 MYT 12:00:00 AM
Updated: Saturday September 21, 2013 MYT 7:46:58 AM
Penny stock party on
BY WONG WEI-SHEN

REVIEW: Bursa Malaysia kicked off the short week following Malaysia Day celebrations on Monday, with the FBM Kuala Lumpur Composite Index (FBM KLCI) advancing a cautious 4.14 points to 1,774.94 from the previous week’s close at 1,770.80.
There were 1.5 billion shares done worth RM1.74bil.
Meanwhile, regional markets fell in the red on profit taking ahead of the Federal Open Market Committee (FOMC) meeting, which was held on Sept 17 to Sept 18.
On Wednesday, the local bourse traded to a high of 1,774.78 but was later dragged down by renewed selling interest to a day low of 1,769.69 prior to ending the day at 1,771.40.
“There was a lack of aggressive buying interest to lift the market higher into the 1,780 zone,” said an analyst.
Turnover fell to 1.43 billion shares valued at RM1.48bil.
Shares on Bursa ended higher the next day following the surprising move by the US Federal Reserve to not to reduce their stimulus programme until its economy shows further improvement.
The FBM KLCI surged on Thursday, reaching an intra-day high of 1,793.94 before settling for a gain of 21.51 points to 1,792.91 at closing.
“The US Federal Reserve decided against reducing their US$85bil monthly, consequently driving markets higher as investors had been anticipating an US$10bil reduction this time round,” said PublicInvest Research. While there is less downside risk to the US economy, the FOMC were however concerned that the tightening of financial conditions would halter any improvement.
“The upside gap on Sept 19 indicated the urgency of market buying participants to establish stock positions. It signified a breakaway from the market trading range between the 1,764 and 1,781 levels in recent days.
“In view of the sudden and sharp run up on Sept 19, the benchmark index was seen gearing towards the 1,800 level before making new attempts to re-test the high of 1,811 registered on July 26,” said Alliance Research.
On Thursday, turnover rose to 1.94 billion shares worth RM2.73bil. RHB Researchanalysts reiterated that the FBM KLCI is merely consolidating the massive 131.5-point intra-day gains from May 6.
Meanwhile the FBM KLCI pushed past the 1,800 level at midday yesterday, due to sustained fund buying in banking stocks and Genting Bhd. Special purpose acquisition companies (SPACs) also rose in active trade.
At midday break; the FBM KLCI had gained 8.67 points or 0.48% to 1,801.58 with 1.32 million shares done worth RM1.058bil.
The local bourse hit an intra-day high at 1,805.15 before ending the week 8.92 points or 0.5% up to 1,801.83 at 5pm yesterday. Among the FBM KLCI stocks, CIMBgained 26 sen to RM8.08, pushing up the index by 3.57 points while Genting Bhd up 16 sen to RM10.26 contributed 1.07 points to the index.
In the broader based market, there were 445 gainers versus 349 losers, with 285 counters unchanged. Turnover was 2.399 billion shares worth RM2.448bil; the bourse’s highest in weeks.
The ringgit was quoted at 3.165 against the US dollar.
Among the regional markets, the Hang Seng gained 1.67% to 23,502.51 and Shanghai Composite up 0.29% to 2,191.85. Meanwhile, the Nikkei 225 fell 0.16% to 14,742.42 and Singapore’s Straits Times fell 0.44% to 3,237.53.
OUTLOOK: Following the surprising news that the Federal Reserve had put off tapering its asset-buying programme in the past week, experts are expecting investors to start taking advantage of the positive market sentiments in the week ahead.
“There is still some upside, but volatility is still the same. The FBM KLCI is taking queue from its neighbours, and market sentiment is good. Investors that are in the money are expected to start taking profit because of the robust volume.
“There are no catalysts except externally, so it is a sign that the retailers are back. The penny stock party is on again!” an expert said.
While analysts expect the uptrend to continue into next week, given the current volumes the FBM KLCI has been seeing, an analyst noted that nothing had changed fundamentally.
“Volatility is still lurking in the background,” she said.

by **peanut** Mon 23 Sep 2013, 12:42

more party to come?? Cocktail

Penny stock party on

Penny stock party on

Re: Penny stock party on