Stock Market Books

Sunday, April 20, 2008

How I read the market for week 17

On Monday, KLCI will be up because Dow was up by 228.87 to 12849.36 last Friday.

There are a number of factors why the US markets were up, mainly due to good results.

Google's profit is up by 30 percent, e-Bay up by 22 percent, IBM up by 26 percent.

The analysts from US were focusing on earning last week and they have overlooked job-cutting. Citicorps will cut 9000 jobs and it has cut 13200 jobs since sub-prime issue. this January, it has reduced 4200 jobs.

Merrill Lynch, the world largest stock broker, has announced cutting 3000 jobs, it has earlier cut 1000 jobs.

JP Morgan after taking over the Bear Stearns Companies will also cut jobs by 2000 and may be more after consolidation.

Washington Mutual has announced on April 8 that it will reduce 3000 jobs.

Oil prices and rice future have reached the new high.

With hindsight, the US analyst might focus on the negative factors this week and this would bring down the markets.

More report, please check Guang Ming Daily, Penang Edition(Economic report) by Chung Guan Tou on Monday.

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