Stock Market Books

Thursday, January 31, 2008

KLCI on Jan 31

The KLCI closed 9.17 points higher to 1393.25 with 399 rising stocks leading 361 decliners. Volume was 807 mil shares worth RM 1.96 bil.Add to Technorati Favorites

The US and Malaysia Market

The Dow, which had been up more than 200 points after the Fed's decision, finished down 37.47 or 0.30 %, at 12,442.83.

The Fed's decision to cut rates follows an emergency rate cut last week of three-quarters of a percentage point. The central bank stepped in a the tme after global markets worldwide fell sharply amid fears that the US economy was tipping into recession and would hurt the global growth.

The rate cuts came on the same day as fresh evidence arrived that the economy had slowed significantly in the final three months of 2007.

Figures showed GDP expanded at a slight 0.6 % pace in the fourth quarter, less than half what had been expected. For all of 2007, GDP grew 2.2 %, the weakest rate since 2002.

Wednesday's move was the fifth cut the Fed made since it began making reductions in September following turmoil in the credit markets and in stocks markets.

I like to share with you what our analyst at SJ Securities Sdn Bhd has said as follows about the latest market outlook:

Officially, the US economy is not yet in recession. The active pursuit by the US Fed in managing the economy in recent times--thru monetary and fiscal expansions--indicates that the focus is on the current economy uncertainty arising from the collapse of the US subprime mortgage credit markets. Some have argued that the measures used to address the risks associated with the market uncertainty tantamount to reflating the economy. It is argued that the US Fed is concerned, and trying to avoid a repeat of the Japanese style deflationary situation happened years ago.

This time, there is not much risk associated with the monetary and
fiscal expansions. With the US core inflation for November at a mild
and manageable level of 0.3%, the pursuit of reflating the economy will
not be adversely inflationary. For instance, expressing an economic
equation on the monetary expansion from the huge interest rate cuts of
75 bps on 22 January, and the 50 bps cut on 30 January, will look like
this : lowering interest rates leads to dollar weakening, resulting in
imported inflation which is manageable as the mild core inflation
allowing some upside leeway.

Reflating the economy may just be the correct policy. It revives the
housing and finance industries through cheaper financing. Exports will
be higher; this will solve the trade deficits. While the downside risk
remains, reflating will arrest the current slowing 4Q GDP of 0.6% from
drooping into recession.

US markets lost 0.3%, as it focuses on the likelihood of bond
guarantors losing their AAA ratings. Meanwhile, regulators are
working towards a bailout plan for bond insurers Dow at 12,442 is
likely to dip lower as the S&P futures after market trading in the Asian
time zone, is currently down 13 pts. This translates roughly to 150 pts
on the Dow. On the chart, the pullback support is at 12,000. We
continue to maintain that the recent rebound is targeting 12,930.
Malaysian market is cushioned by market talks of the general election
in March 2008. It is on an immediate target at 1453. On the local
market, we are bullish. We are heartened to witness the mid January
2008 sold down from 1524 was halted at 1340. This is significant as the
Double Bottom at 1338 of November 2007 has not been violated,
thereby, lending credence to the expanding Diagonal Triangle scenario.
If we interpret the KLCI correctly, the chart development since October
2007 is forming an expanding Diagonal Triangle. In a Diagonal
Triangle, there are 5 rotating waves. We may have completed the 4th
wave at the recent 1340 low, leaving the current rebound to be the final
up 5th wave, with an upside at 1590.

Our bullish assessment based on the expanding Diagonal Triangle, will
be negated if the key support at 1330 is breached."

At 2.59pm, KLCI is up by 8.59 at 1392.67.

The same stock picks like Timecome, Tebrau, KUB, Time, Mulpha-wa applied.

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Wednesday, January 30, 2008

Happy New Year

Happy New Year to all of you.

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Market Outlook

KLCI finished down 4.42 points at 1384.08, with 781 mil shares worth RM 1.829 bil changed hands. Loser led gainer 548 to 243.

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Tuesday, January 29, 2008










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該公司在1月25日發表文告說,該公司印尼的民丹島財庫灣計劃與印尼PT Wisata Hiburia有限公司(PTWH)簽署協議,共同開發和規劃印尼民丹島獨家綜合度假村計劃,而PTWH已經獲得國際獨家綜合旅遊執照,以允許PTWH在民丹島進行醫療旅遊、多媒體科技和包括賭場在內的各類娛樂或遊戲。





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KLCI on Jan 29

KLCI finished up 7.96 points at 1388.50, with 787 mil shares worth RM 1.455 bil changed hands. Gainers led losers 463 to 301.

Most of the retail investors are still not in the market.

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Yi Jing Prediction about the stock market

January effect probably allowed you to see a rally before or after the Chinese New Year, however, after that the market will be weakened.

When I make such prediction, the world market is still intact. We saw how the markets plunged towards the end of January. The crush of the stock markets globally has wide implication, especially to the US and Europe.

Traditionally, after the Chinese New Year, the Malaysian stock market usually will lose its steam and gradually quiet down. However, as people believe that the general election will be held after the Chinese New Year, therefore, this issue itself will drive the market up.

From 5th of March to 4th of April is the rabbit month(Yi Mou), the stock market may be good because of election factor.

However, after the rabbit month, the market will start to slow down during the month of April, May and June.

The market will be good in the month of July, August, September and October. The market will consolidate in the month of November and December. The market will be vibrant again in the month of January 2009.

This is the summary of my prediction for Special Weekly.

Sunday, January 27, 2008

Market Outlook 2008 Week 5

Last Friday, the US market dropped 171.44 to close at 12,207.17, it was up 100 points in the morning.

The Malaysian investors would normally like to refer to the US market before making their investment decisions. As one can see that it is quite volatile in the US market, therefore, the Asian markets would be very unpredictable as well.

You need to read the market carefully and correctly. Use the chart. If you feel you are in the wrong side of the market, just cut your losses short and get out of the market.

Buy when the counter dropped to the support level and sell on rebound.

The US has tried very hard to stabilise the market so that the economy could be stabilise as well.

Last week, the Fed has announced a rate cut of 0.75% from 4.25 to reduce to 3.5% to calm the market. But market was not calm, the market still dropped after the rate cut announcement. It was only on Wednesday afternoon that the market had rebounded.

The Asian markets, however, have rebounded.

The Bush's administration has went ahead with its USD 145bn stimulus plan to help the US economy but many felt that it is an insufficient amount against the mammoth subprime mortgage meltdown.

In Switzerland, the Prime Minister Datuk Seri Abdullah Ahmad Badawi said that Malaysia economic fundamentals are strong enough to withstand a recession in the United States.

He said that he did not foresee any major effects on the economy due to the country's long-term and forward-looking policies.

He said that "we can face it because of our strong and stable government." He was in Davos to attend the World Econimic Forum annual meeting.

The economy may be strong but the stock market reaction is a different thing. Investors need to watch the market carefully. If you still want to enter the market, look for stocks that have corporate actions or look for theme play. The election play might be still on but it might have been overplayed because the election is around the corner.

To read my Chinese article, go and get a copy of Guang Ming, Penang Edition, on Monday.

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Friday, January 25, 2008


KLCI rose 22.05 points (+1.6%) to close at 1405.40, with 627 rising stocks leading 200 decliners. Volume was 1.12 bil shares worth RM 2.473 billion.

Asian markets extend gains

KLCI rose 11.1 points to 1394.46, in line with overseas market. Landmarks is up 22 sen to close at 3.18.

Japan went up by 437.98 to 13527.21,Hong Kong rose 1254.25 to 24793.52 and Singapore was up 81.04 to 3131.13.

What happen to Time? and What else to look?

Not only has been suspended, Time DotCom and Time are also suspended today.

According to a report by the Star, DiGi.Com will sign today a definitive agreement with Time Dotcom to cement an earlier forged alliance on the transfer of the latter's 3G spectrum.

The signing of the accord between the two companies, which requested a suspension in the trading of their shares today, would be witnessed by Energy, Water and Communications Minister Datuk Seri Lim Keng Yaik.

In mid-November last year, DiGi and TDC forged an alliance under which DiGi would buy the spectrum from TDC and place a RM 50 mil guarantee with the Government.

We can turn our attention to another two counters, namely TRC Synergy and Muhibbah.

I will summarise the reports from The Star as follows:

TRC Synergy Bhd expects to make more investments in the oil and gas(O&G) industry via wholly-owned until TRC Energy Sdn Bhd this year by acquiring stakes or injecting capital into smaller O&G related companies.

On its investment in PetroBru, to build an oil refinery in Brunei, the Executive director of TRC Energy Sdn Bhd Datuk Abdul Aziz Mohamad said he expected the unit to contribute to earning from 2010.

The construction of the oil refinery, which would cost between US$1.5 bil and US$3.5 bil, is expected to begin in two years on completion of feasibility studied and final approval from the Brunei government.

On the company's core business in construction, Abdul Aziz said its order book currently stood at RM 1.4 bil comprising seven to eight local jobs, which would last until 2010.

Analysts picked Mubibbah because of its steady flow of contracts, continue capacity expansion and good earnings visibility.

Muhibbah's order book currently stands at a record RM 4.45 bil.

Of the total, construction-the biggest contributor-accounts for RM3.43 bil, followed by crane manufacturing (RM559mil) and shipbuilding (RM467 mil)

The company posted an average net profit growth of 30.4% in the last four quarters, the most significant being in the first quarter of 2007 when it recorded a 67% jump in net profit to RM 14.63 mil from RM8.76 mil in the preceding quarter.

At noon, TRC closed at 2.24 whereas Muhibah closed at 3.46.

Market Outlook by SJ Securities Sdn Bhd

I like SJ's report, therefore, I am sharing it with you:

We view the rebound off the November 2007 Double Bottom level of 1338 as significant as it has raised the probability for the KLCI to retest the mid January 2008 high at 1524. This also places the key support at 1330. A violation of 1330--we think is unlikely--will shift our market to a weaker situation, with immediate downside at 1287.

While the US Fed has taken a significant step to address the growing likelihood of US zooming into recession, markets continue to remain wary citing that the credit markets meltdown is not over yet. Further it is difficult to fathom the extent of the damage. Now, the concern has shifted to a higher level where bond issuers and bond insurers may not have the resources to honour credit market defaults. The downgrading of credit rating on Security Capital Assurance reflects such concern.

Once again, to calm financial markets, insurance regulators and banks are now on talks to discuss raising capitals to the tune of USD 15 bn for bond issuers. Markets are also reacting positively to the news that the President Bush stimulus package is almost finalised. And appears agreeable on the measure of permitting more people to receive tax rebates of USD 600 to 1200.

It is likely that the rate cut by US Fed is part of a global concerned effort among central banks to tackle the credit market meltdown. On this basis, it can be expected that Bank of England will lower their interest rate currently at 5.5% on February 6.

Meanwhile, the recovery on the US markets continue on the news that the job market remains unscathed. Application for unemployment benefits were down 1000 to 301,000, lowest claims in 4 months. Dow gained 1% to 12,378. It looks like the market is making good on the Double Bottom at 11,634. Dow is likely to recover further to the October 2007 high of 12,930.

Disclaimer Statement

The accuracy or completeness of the information provided herein is not guaranteed and opinions are subject to change without notice. It is done to the best of my ability, resources, time and knowledge. This report is for information of my clients only and should not be construed as a solicitation for contracts. Any one who read this report should verify it with his or her stock-broker because as the time changes, information may also have changed and the timing to buy and sell would have been changed as well. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors or employees may have an interest in the securities and or companies mentioned herein.

Thursday, January 24, 2008

Watch out for Time

The US market might not be performing because of Soc Gen issue where the latter announced that a rogue trader has carried out a 4.9 bil euro fraud.

If the US market is down, then it might affect our Malaysian market. However, there might be selective play on our market. For example, Time might go up because of Timecom.

At the close of the market, TimeCom asked Bursa for trading suspension of its shares from 9am tomorrow pending an announcement.

The investor believed this announcement might have to do with its 3 G licence.

Almost the same time, Digi.Com also asked Bursa for its shares to be suspended from trading at 9am tomorrow.

Investors might want to look at Landmarks because it told Bursa its land on Bintan Island will be zoned for tourism with various activities including gaming.

The KLCI rose 28.87 points (+2.13%)to close at 1383.35. Rising stocks outnumbered losers 730 to 180 on volume of 1.48 bil shares worth RM 3.18 bil.

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Market Outlook

On Wednesday, the Dow closed at 12270.17, up 298.98. If you checked the news, it started with another drop at opening and loss of more than 300 points at noon, later it changed course and flied higher to close at positive 298.98.

Let me quote what our analyst from SJ Securities has said:

"It was a good thing that the US Fed reduced rates before the FOMC. Had the US Fed waited until the January 30-31 FOMC to reduce interest rate, the Dow would have collapsed by at least 700 pts, based on the sharp drop on the S&P futures the day before. Instead, the sell-off on the Dow was halted at the Double Bottom of 11634, and it recovered to close at12,270, up 2.5%. On this positive event, the Dow is likely to recover further to the October 2007 high of 12,930.

Supporting the view that oil price is heading lower, pressured by the weakening demand due to the global economic growth slowing, the oil price closed lower at USD 87. In fact US fuel demand hit an 11 week low of 20.5 mln barrels for the week ended January 11. Tonight's news on the US crude oil stockpiles is likely to indicate an estimated gaining of 1.5 mln barrels as at January 18. We had said earlier, that on the chart, oil price is technically weak as reflected on the chart pattern of Island Reversal. While it may be on USD 86 support, it is likely to go lower to USD 80.

On the local market, the share plunge to 1340 was halted as the Novermber 2007 Double Bottom of 1338. the KLCI closed at 1354. It is important for the key support at 1330 to be intact. Market will be at a weaker situation if the 1330 is violated.

Following the sharep recovery of the Dow, the KLCI is likely to recover to the price gap at 1386. It could even go as high as the 61.8% retracement of 1454. Our view is that the KLCI has bottomed at 1340, and there is a high probability for the market to take out the previous high at 1524."

At 12.18 pm, the KLCI is recorded at 1382.19(+27.71). The morning high was 1409.93 and the low was 1376.21. The 1386 gap was closed in the morning.

Tuesday, January 22, 2008

The Market will stage a strong rebound

The wires just reported that the US Federal Reserve had lowered its interest rate by 0.75% from 4.25 % to 3.5 % in an emergency move to calm the market.

I believe the markets globally will stage a strong rebound because of the oversold position in the last two days.

Will the market come back?

KLCI closed 54.12 points lower(-3.8%) at 1354.48,losing stocks overwhelmed riser 962 to 68 with 1.58 billion shares worth RM 3.6 bn traded.

Europe market already staged a rebound, it is expected that the US market would also recovered.

The low of KLCI was 1340.29 and the closed of 1354.48 would mean that the KLCI already had recovered 14.19 points.

The Bursa Malaysia is closed on Wednesday because of Thaipusam, the Hindu New Year, where the devotees would celebrate by performing prayers in the temples.

Market Melt Down

The regional markets are still coming down with Hong Kong plunged 1914.73(-8%), Japan down 696.38 and Singapore dropped by 140.87.

The investors should get the buy list ready and should enter the market to start buying when the regional markets stage a rebound.

Why the markets come down?

Because the investors are concerned of the high prospect of US moving into recession. It was reported that the investors were not happy about Bust's temporary USD 145bn fiscal stimulus plan

The KLCI closed at noon at 1352.36(-56.24), already breaching the support of 1355. Hopefully, it would rebound and close above 1355.

I believe if the Fed were to announce a cut in the interest rate, the global markets would stage a strong rebound.

Malaysia Stock Market Chart for FREE

I write weekly for Guang Ming Daily, Penang. If you want me to print out stock charts for listed companies in Malaysia, please e-mail to:
with your name, phone numbers and your location. I will call up the stock chart with technical analysis and fundamental facts and e-mail back to you for FREE. I would not include my personal advice. One person is entitled to ask for 3 stock picks only.

Monday, January 21, 2008

Why did the regional markets drop?

Wires reported that the regional markets fell sharly over fear of US recession;India dropped by 5.9%, Hong Kong plunged by 5.5%, Shanghai down 5.1 %, Singapore slid by 4.3% and KLCI dropped by 2.15%.

Will the markets rebound tomorrow? Techically speaking, the market is oversold, rebound should be imminent.

Friday, January 18, 2008

What stock did my client buy today when the market drop?

My client bought 100,000 shares of Time Engineering for 0.59 and expect the market will recover on Monday and he can take profit.

Making Half A Million In 5 days

I have written a book entitled "Creating Wealth to be a Big Winner in the Stock Market--The new method of How to make half a million in 5 days "

This is written in Chinese and will be published towards the end of February, 2008. If you are in Malaysia and is willing to take heavy risk, you will be able to make half a million ringgit in the stock market.

I have elaborated in chapter 7 the way you could do it. Of course, you should not be a bankrupt in the first place and should worth a lot in terms of credit-worthiness. You need to open accounts with at least 20 remisiers and secure at least 100,000 credit limit per account. Basically, you should have enough credit limit to buy 2 million ringgit of stock and shares.

In the example, I listed out 28 stocks and the time one bought. One should buy 50,000 shares for each stock totalling 1.749 million. In Malaysia, one could just play contra and make money if you get the timing right. I have said, for example, if one were to enter on March 5, 2007 and exit on March 9, 2007 , buying all the 28 stocks that I have mentioned, one can make 428,550 ringgit to be exact.

What I am saying is you do not need capital but credit-worthiness to make money. There is a lot of risk that you will be taking and I do not encourage. I know many syndicates also do the same thing, opening accounts with many remisiers(stock brokers) and carry out stock operation. Many remisiers fell prey to these syndicates and got caught with huge debt when the market collapsed.

Of course, if you get the timing right, you can get a lot of money. And I am saying that if you are able to "read" the "qi" well, you can make money. The qi is the factor that drives the market. You buy when the qi started to rise and sell when the qi is weakening for short-term trading.

For medium term trading, you buy when it is in the up cycle and sell when the stock begins to go into down cycle. You prabably need to go thru a mentorship program to grasp the whole idea of good-timing trader.

Suppose you are not so ambitious and you have 100,000 cash and you only concentrate on three stocks as follows:

BuyMar5 Sell Mar9,2007 units price diff. Net profit No. of day Return

1. Tebrau 0.665 0.95 50,000 0.30 14,155 5 days 43.22%
2. Timecome 0.60 0.905 50,000 0.31 14,691 5 days 48.97%
3. Time 0.55 0.825 50,000 0.23 13,240 5 days 48.15%
Total 42,086

This is a hypothetical case. Suppose you are able to make 3 rounds in a year for these three stocks and you will be able to make RM 126,258. Without taking into consideration the increased investment, you will be able to become a millionaire in 7 years with the same return.

In 2007, Ms Chong Cheng Keng was able to make 1.03 million by using 250,000 of virtual capital within two months in a stock market competition organized by Bursa Malaysia, making a return of 312.91% and coming out a winner. The second prize winner made 990,666.50
and the third prize winner made 962,912.44.

Of course , virtual trading and hypothetical investing is easy and with no pressure, wait till you put in real money and you will know the different.

This is KC Goh, author of "Creating wealth to be a big winner in the stock Market- The New Method of how to make half a million in 5 days.



经学家郑玄(康成)注说:“五行者,言顺天行气。”用白话文解释是:“顺应宇宙大自然的规律而生活、而作为。” 也就是“天人合一”的哲学。


他是在光华及新明日报,从事11年记者工作后,才到美国深造,并在1991年考获夏威夷太平洋大学(Hawaii Pacific University)工商管理学位。
2006年,他考获澳洲USQ(The University Of Southern Queensland)工商管理硕士。
他的易经分析及预测国运卦的文章从2000年开始先后在 《号外周报》 ,《工商世界》, 《财经》刊出。

KC Goh
MBA(Australia), BSBA(USA)
Remisier(Stock broker) with SJ Securities Sdn Bhd

My address:Level 3, Holiday Villa
No. 9, Jalan SS 12/1
47500 Subang Jaya

H/P 012-6597910
Fax 03-56360193


I am now in a blog class with Asia's No. 1 Internet Marketing Coach-eOneNet.