25 August 2011

KLCI went down namely to key big caps:
Axiata down 0.22 sen in huge volume, wonder why they throw this.

Today big falls in 2 major banks, Cimb and Rhbcap. CIMB was on the way down since last Friday, today the worst in huge volume. This is panic selling, why? Is there a political reason for this?

Affin also went down 0.10 in low volume.

Meanwhile other banks held up ok. Maybank, AFG, AMMB, BIMB, HLBank, PBB which is probably the more well managed. Maybank at one point was also being thrown in the early part of this morning, but managed to recover.

Will we see the same effect tomorrow??? Have the sellers finished selling all their holdings? If there are no more sellers, and buyers start coming in, then KLCI will be green tomorrow starting from the 1,464 point level.

Yet to find out tomorrow. Not placing too much hope on green as KLCI always gives a nasty surprise somehow when you least expect it.

budgee wrote:KLCI went down namely to key big caps:
Axiata down 0.22 sen in huge volume, wonder why they throw this.

Today big falls in 2 major banks, Cimb and Rhbcap. CIMB was on the way down since last Friday, today the worst in huge volume. This is panic selling, why? Is there a political reason for this?

Affin also went down 0.10 in low volume.

Meanwhile other banks held up ok. Maybank, AFG, AMMB, BIMB, HLBank, PBB which is probably the more well managed. Maybank at one point was also being thrown in the early part of this morning, but managed to recover.

Will we see the same effect tomorrow??? Have the sellers finished selling all their holdings? If there are no more sellers, and buyers start coming in, then KLCI will be green tomorrow starting from the 1,464 point level.

Yet to find out tomorrow. Not placing too much hope on green as KLCI always gives a nasty surprise somehow when you least expect it.

CIMB stock hit by growth concerns

KUALA LUMPUR: The stock of Malaysia's number two lender took a beating yesterday, closing 4.6 per cent down to a one-year low of RM7.25, on concerns of slower growth this year.

Analysts said as the stock has a lot of foreign owners, it was no surprise that there were more sellers than buyers since Wednesday, despite CIMB Group Holdings Bhd's record second quarter earnings on Tuesday.

"It is similar to Axiata's stock. Axiata also has high foreign shareholding and it suffered the same fate," said one analyst.

The analyst said since CIMB has always commanded a high valua-tion, a slight concern over its performance can easily affect the stock price.

CIMB's earnings rose 9.1 per cent to a record RM970.01 million in the second quarter ended June 30 2011 from RM889.46 million a year ago.

Despite that, it was considered to be still 9.2 per cent below the consensus of most analysts.

They attributed the sell down of the stock to mostly concerns over slower loans and non-interest income growth.

MIDF Research for one has cut CIMB's earnings forecast for 2011 by 6 per cent due to the low loan growth.

OSK Investment Bank equity capital market head Gan Kim Khoon said CIMB's results were below the expectations of many.

"And there are concerns over its stake in Indonesia's Bank Niaga as CIMB has got more to lose with the new ruling compared to Maybank," he said.

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