Friday, April 27, 2007

A Volatile Week Indeed; A Tough Week Ahead

STI is now 3398.60 and HSI is 20526.50. Market has turned into a correction and profit taking trend despite in positive light.

May is coming and you know what they say about May - "Sell in May and go away". Largely based on statistic, May is not a good month to invest or speculate. Although it maybe a good month to go short or long term value buying.

Lottvis recovered in midweek but fell back to 0.570 region. Rowsley rose slightly from midweek up going movement and is currently resisted in the 0.300 point. Large volume of stocks changing hands. Most of the China high potential stocks has corrected. Hongguo and Jiutian which were my favorite corrected substantially. Watch out for Swiber as price below 1.68 present a buying opportunity.

Long term, position maintained on Sembcorp and Comfortdelgro. I believe its also time to pick up some property stocks. In the monitoring will be Sim Lian and Fragrance.

At institutional end, Korea and Thailand emerging equity funds are worth a second thought and look. Looking ahead Thailand is calling for a election during end of this year whilst Kospi has sheded so much so its largely believed to be extremely attractive. Bought substantially on this two funds this week. Currently holding on to Europe, Greater China, Malaysia and Singapore/Malaysia funds, though upside is positively expected but the returns may be limited. It is good to diversified, expect to realise profit once hit 25% ROI by January 2008 for a slight reposition if required.

Any opinion herein is made on a general basis and is not an inducement to trade.

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