Chinese Stocks Plunge 6.7%; Japan Ends Down

China's key stock index dived 6.74 percent on Monday to a three-month closing low and recorded its second-biggest monthly loss in 15 years, after surging stock valuations overwhelmed improvements in corporate earnings while new share supplies compounded a drop in liquidity.

The Shanghai Composite Index (-6.74%)closed at 2,667.745 points, tumbling 21.8 percent for August after recording seven consecutive monthly gains.

Reflecting a clear weakening in investor sentiment, Chinese fund managers reduced their recommended allocation to equities for the first time in six months, on concerns that a possible liquidity tightening may sap demand for stocks, the latest monthly Reuters poll of fund managers shows.

A boom in initial public offerings was also cited by some fund managers as a risk to the stock market, which rallied 60 percent in the first six months of this year on ample liquidity and an improving economy.

Continuing a stream of fresh shares flowing into the market, Metallurgical Corp of China's Shanghai A-share initial public offering, which aims to raise about 16.85 billion yuan ($2.47 billion), will start book-building on Tuesday and take subscriptions next week.

The index slipped below the 125-day moving average for the first time since early February.

The drop below the key chart line, used by many Chinese investors to delineate a bull versus a bear market, encouraged more investors to flee stocks.

Losing Shanghai A shares outnumbered gainers by 859 to 27 while turnover for Shanghai A shares dropped to thin 124 billion yuan ($18 billion) from Friday's 133 billion yuan, reflecting a lack of buyers, traders said.

China Merchants Bank, one of the most active stocks, closed down 6.26 percent at 13.63 yuan after the lender raised its maximum fund-raising target for a planned rights issue by 22 percent to 18 billion-22 billion yuan, due to a likely tightening of banks' capital adequacy rules.

The index sank 2.9 percent on Friday amid worries about a steep drop in Chinese bank lending in August, which would trim liquidity flowing into stocks.

But analysts said slowing lending should have no major impact on the economy, partly because Chinese companies are turning a large share of the short-term discounted bill financing they received in the first half of this year into long-term investment in the second half.

Hong Kong’s Hang Seng followed suit (-1.86%) and closed nearly 2 percent lower.

China Merchants Bank skidded 3.6 percent to HK$16.82 after the country's sixth-largest lender raised its maximum fund-raising target for a planned rights issue by 22 percent to 18 billion-22 billion yuan ($2.6-3.2 billion), due to a likely tightening of banks' capital adequacy rules.

Singapore’s Straits Times Index (-1.89%) also fell.

Japan Ends Down; China Trumps Election

Japan's Nikkei average fell on Monday as a stronger yen sent exporter shares lower and weak Shanghai stocks added pressure, erasing an jump to an 11-month high after an opposition election win.

Sunday's landslide victory for Yukio Hatoyama's Democratic Party ends a half-century of almost unbroken rule by the Liberal Democratic Party and breaks a deadlock in parliament, and analysts said the Nikkei's volatile moves showed the market was grappling with how to interpret the win.

Japan's ruling party conceded a crushing defeat

TOKYO – Japan's ruling party conceded a crushing defeat Sunday after 54 years of nearly unbroken rule as voters were poised to hand the opposition a landslide victory in nationwide elections, driven by economic anxiety and a powerful desire for change.

The left-of-center Democratic Party of Japan was set to win 300 or more of the 480 seats in the lower house of parliament, ousting the Liberal Democrats, who have governed Japan for all but 11 months since 1955, according to exit polls by all major Japanese TV networks.

"These results are very severe," Prime Minister Taro Aso said in a news conference at party headquarters, conceding his party was headed for a big loss. "There has been a deep dissatisfaction with our party."

Aso said he would have to accept responsibility for the results, suggesting that he would resign as party president. Other LDP leaders also said they would step down, though official results were not to be released until early Monday morning.

The loss by the Liberal Democrats — traditionally a pro-business, conservative party — would open the way for the Democratic Party, headed by Yukio Hatoyama, to replace Aso and establish a new Cabinet, possibly within the next few weeks.

The vote was seen as a barometer of frustrations over Japan's worst economic slump since World War II and a loss of confidence in the ruling Liberal Democrats' ability to tackle tough problems such as the rising national debt and rapidly aging population.

The Democrats have embraced a more populist platform, promising handouts for families with children and farmers, a higher minimum wage, and to rebuild the economy.

"The nation is very angry with the ruling party, and we are grateful for their deep support," Hatoyama said after the polls closed. "We will not be arrogant and we will listen to the people."

The Democrats have also said they will seek a more independent relationship with Washington, while forging closer ties with Japan's Asian neighbors, including China. But Hatoyama, who holds a doctorate in engineering from Stanford University, insists he will not seek dramatic change in Japan's foreign policy, saying the U.S.-Japan alliance would "continue to be the cornerstone of Japanese diplomatic policy."

National broadcaster NHK, using projections based on exit polls of roughly 400,000 voters, said the Democratic Party was set to win 300 seats and the Liberal Democrats only about 100 — a third of its strength before the vote.

TV Asahi, another major network, said the Democratic Party would win 315 seats, up from the 112 seats it held before parliament was dissolved in July.

As voting closed Sunday night, officials said turnout was high, despite an approaching typhoon, indicating the intense level of public interest in the hotly contested campaigns.

Even before the vote was over, the Democrats pounded the ruling party for driving the country into a ditch.

Japan's unemployment has spiked to record 5.7 percent while deflation has intensified and families have cut spending because they are insecure about the future.

Making the situation more dire is Japan's aging demographic — which means more people are on pensions and there is a shrinking pool of taxpayers to support them and other government programs.

Many voters said that although the Democrats are largely untested in power and doubts remain about whether they will be able to deliver on their promises, the country needs a change.

"We don't know if the Democrats can really make a difference, but we want to give them a chance," Junko Shinoda, 59, a government employee, said after voting at a crowded polling center in downtown Tokyo.

The Democratic Party would only need to win a simple majority of 241 seats in the lower house to assure that it can name the next prime minister. The 300-plus level would allow it and its two smaller allies the two-thirds majority they need in the lower house to pass bills.

Having the Democrats in power would smooth policy debates in parliament, which has been deadlocked since the Democrats and their allies took over the less powerful upper house in 2007.

To ease parenting costs and encourage more women to have babies, the Democrats propose giving families 26,000 yen ($275) a month per child through junior high. Japan's population of 127.6 millionpeaked in 2006, and is expected to decline to 115 million in 2030 and fall below 100 million by the middle of the century.

The party is also proposing toll-free highways, free high schools, income support for farmers, monthly allowances for job seekers in training, a higher minimum wage and tax cuts. The estimated bill comes to 16.8 trillion yen ($179 billion) if fully implemented starting in fiscal year 2013 — and critics say the plans would further bloat Japan's massive public debt.

The Democrats will likely face resistance from Japan's powerful bureaucrats, who favor the status quo and hold a great deal of influence in shaping policy.

Aso — whose own support ratings have sagged to a dismal 20 percent — repeatedly stressed his party led Japan's rise from the ashes of World War II into one of the world's biggest economic powers and are best equipped to get it out of its current morass.

In the end, voter worries about the economy and disenchantment with the LDP's long grip on power proved too much to overcome.

"It's revolutionary," said Tomoaki Iwai, a political science professor at Tokyo's Nihon University. "It's the first real change of government" Japan has had in six decades.

Hopefully our ruling party will concede a crushing defeat in our next general election too.

Happy 52nd Birthday, Malaysia!

Merdeka! Merdeka! Merdeka!

Happy 52nd Birthday, Malaysia.

Hopefully Malaysia will be lead by more capable persons.

GOon

Brem Holding Bhd 1Q net profit SOARS 17.35%!

Wow. This is really a good news. Brem Holding Bhd released its quarterly report last friday after market closed. It was a great result!

Brem Holding Bhd 1Q net profit soars 17.35% from RM3,003,000 to RM3,524,000. Its basic earning per share jumps from 2.4 sen to 2.9 sen while its net tangible assets per share up to RM3.06 from RM2.97.

The Group's overall net profit had increased compared with the preceding year corresponding period due to higher contribution from water supply & services division and better results of the associated companies.

The Group recorded higher revenue of RM27.3 million for current quarter compared to the preceding quarter of RM19.6 million, representing an increase of RM7.7 million or 39.3%.

I really hope this good result can acts as a catalyst to push Brem share price higher. Then, Brem-wa would really jumps!

This good result keeps asking me to buy more Brem-wa. Ya, I think it would be a fantastic trade too.

Ok, good luck.

GOon

previous post regarding Brem
http://cathoon.blogspot.com/2009/08/brem-holdings-bhd.html

US Joblessness Cut, GDP Loss Eases as Recovery Shapes Up

The number of U.S. workers filing new claims for jobless benefits fell last week to 570,000, and those collecting long-term unemployment benefits dropped to the lowest level since April, government data showed on Thursday.

Also, the economy contracted more slowly than expected in the second quarter as smaller declines in consumer spending and exports offset a record inventory liquidation, while corporate profits rose.

Analysts polled by Reuters had forecast new claims slipping to 565,000 in the week ending Aug. 22 from 580,000 the prior week, which had been previously reported as 576,000.

Continued claims fell to 6.133 million in the week ended Aug. 15 from 6.252 million the prior week. That was the lowest since the week ending April 4, when they were 6.045 million.

The Commerce Department said gross domestic product, which measures total goods and services output within U.S. borders, fell at a 1 percent annual rate, unchanged from last month's estimate.

Analysts polled by Reuters had forecast output shrinking at a 1.5 percent pace in the second quarter after collapsing 6.4 percent. in the first quarter.

Brem Holding Bhd & Brem-wa

I started to notice Brem Holdings Berhad on 31 July 2009. In fact, I noticed brem-wa when it appeared on the top-losers list. I like to browse through top-losers list, in fact, this is one of the ways i use to seek potential trades.

I was so very happy when i found Brem. I was so excited and i jumped up and down like I had just found a gem. I can't remember when was the last time i had this kind of feeling. I was telling myself, it would be perfect if i found a good potential trade especially when my airasia-ce were going to expire soon so that i could switch part of my portfolio to a potential trade. It was hard for me to find a good potential trade.

Brem Holding Berhad is engaged in general contracting, property development, property investments and investment holdings. It operates in four segments: civil engineering and construction, property development, property investments and investment holding, and water supply and services. It operates in Malaysia, Papua New Guinea and The People’s Republic of China. In Malaysia, its areas of operation are civil engineering and construction, property development, property investments and investment holding. In Papua New Guinea, its areas of operation are water supply and services, and civil engineering and construction. In the People’s Republic of China, its areas of operation are property development and investment holding. Its major subsidiaries include Brem Construction Sdn. Bhd., Brem Aluminium & Glass Sdn. Bhd., Brem Maju Sdn. Bhd., Harmony Property Sdn. Bhd., Global Water Sdn. Bhd., Naga Istimewa Sdn. Bhd., Cosmo-One Realty Sdn. Bhd. and Intan Kemuncak Sdn. Bhd.



Why i was so happy when i noticed Brem? I noticed Brem-wa was trading at RM0.125 on 21 July 2009. It dropped to RM0.065 on 31 July 2009 when i noticed it in the top-losers list. It dropped 50% in just 9 trading days. That was a huge decline! I checked Brem fundamental and everything looked ok for me. Weird!

If Brem-wa were to recover to its 21 July 2009 price of RM0.125, I would have earn 100% profit. That's why I like to trade stocks/warrants that had just undergone a sharp decline.

I did not trade Brem/Brem-wa when i first found them. Brem-wa jumped to RM0.10 within another 3 trading days since then. It jumped a whopping 53%! HUGE GAIN!

On 3 August 2009, I posted on my blog that I thought a correction was coming. (http://cathoon.blogspot.com/2009/08/correction-coming.html). I started to sell part of my portfolio. I was right. There was a correction.

Brem-wa started to decline then. It dropped to RM0.065 (again) on 25 August 2009. I noticed that Brem resistance is at RM1.20 and Brem-wa resistance is at RM0.065. So i bought some Brem-wa on 25 August 2009. Again, today i bought some more Brem-wa at RM0.065.

Technically, RSI, Stochastic and Bollinger Band are showing oversold signals. Brem (Brem-wa mother) is trading at a very thin volume. That is good.

Fundamentally, Brem's P/E is 11.41. It is reasonable (if not low) comparing to its construction sector peers. Brem's NTAB is RM2.97. Brem is trading at RM1.27, so it is trading below its NTAB. Good! Besides, Brem has a proven stable earning record. Brem makes profit for 9 consecutive quarters (at least)! Good! Brem is actively buying back its shares. Good!

Now i think we just need a catalyst to make Brem/Brem-wa jumps. Brem is going to announce its quarterly result very soon. Let's hope this quarterly report can jump start the rally.

Brem-wa's premium is -0.39%, it is a discount! Gearing is 19.54, expiry date is 24/11/2009 (another 89 days to go).

Ok, good luck in your trading.

GOon

即日起开除蔡细历党籍

马华会长理事会已经接纳纪律委员会的建议，宣布开除涉及性爱光碟事件的署理总会长蔡细历的党籍。

马华总会长翁诗杰在主持近5个小时的会议后，在一众会长理事会成员的陪同下，於凌晨12点15分左右召开新闻发布会，发表5段由会长理事会发出的简短声明，做出这项宣布。

声明说，经过冗长详细的讨论，有鉴于蔡细历性爱光碟对党形象所造成的伤害，会长理事会基于党的利益，今天以沉重的心情，集体决定接受纪律委员会的建议，开除蔡细历的党籍，即日生效。


可在14天内向中委会上诉

声明指出，根据党章第127（A）条款，蔡细历可以在收到会长理事会决定的正式通知后的14天内，向中委会提出书面上诉。

“根据党章第128条款，中委会对有关纪律事项所做出的决定，将是最后和决定性的，不能向任何法庭提出诉讼。”

“我们全体会长理事会成员，团结一致并集体对这项决定负责。”

翁诗杰将亲自向纳吉汇报

声明最后表示，为了尊重纳吉作为国阵主席，翁诗杰将亲自向他阐述会长理事会的决定。

除了总财政郑福成、两名副总会长陈国煌和黄燕燕之外，其他会长理事会成员都有出席这项简短5分钟的新闻发布会。

不过，翁诗杰在宣读声明后，拒绝回答任何提问，并表示所有内容都已经在会长理事会发表的声明里，便匆匆结束这场新闻发布会。其他会长理事会成员，也都拒绝回答任何提问。

稍早前，蔡细历因为会议讨论起纪律案件，为了避免利益冲突，而先行中途离席，并召开记者会，炮轰翁诗杰把他当作头号敌人，并疾呼党员挺身而出拯救该党，避免马华受到翁诗杰一人的摧毁

以下是会长理事会发表的声明全文：

经过冗长详细的讨论，有鉴于拿督斯里蔡细历性爱光碟对党形象所造成的伤害，会长理事会基于党的利益，今天以沉重的心情，集体决定接受纪律委员会的建议，开除拿督斯里蔡细历的党籍，即日生效。

根据党章第127（A）条款，拿督斯里蔡细历可以在收到会长理事会决定的正式通知后的14天内，向中委会提出书面上诉。

根据党章第128条款，中委会对有关纪律事项所做出的决定，将是最后和决定性的，不能向任何法庭提出诉讼。

我们全体会长理事会成员，团结一致并集体对这项决定负责。

为了尊重拿督斯里纳吉作为国阵主席，总会长拿督斯里翁诗杰将亲自向他阐述会长理事会的决定。

http://www.malaysiakini.com/news/111494

Annjoo first steel company to report profit!

ANN JOO RESOURCES BHD posted very sharply lower net profit of RM2.22 million in the second quarter ended June 30 from RM180.51 million a year ago due to lower steel prices which resulted in a margin squeeze.

It said on Aug 25 revenue fell 39% to RM424.3 million compared with RM706.5 million while earnings per share was 0.44 sen compared with 35.17 sen.

For the first half, it posted net loss of RM36.65 million compared with net profit of RM285.45 million a year ago. Revenue fell to RM644.43 million from RM1.377 billion.

Ann Joo said the 1H decline in revenue was mainly due to lower selling price of various steel products. However, the group registered higher export sales to mitigate the lower domestic sales.

"The group's profitability was affected by lower steel prices currently as compared to the robust international steel market in the first half of the year 2008 which resulted in a margin squeeze in the financial period under review," it said.

When compared with 1Q ended March 31, 2009, it said the revenue in 2Q of 424.30 million was 93% higher from RM 220.13 million in 1Q.

"This was mainly attributed to improved sales tonnage from both domestic and international market. The group managed to secure substantial export sales in particular from Southeast Asia countries as a result of better market sentiments which were boosted by the rollout of various economic stimulus packages worldwide," it said.

It added the pre-tax profit of RM 2.67 million in 2Q compared with pre-tax loss of RM41.12 million in 1Q was due to the revitalisation of the group's earnings.

The better earnings were underpinned gy a significant improvement in export sales coupled with better cost structure arising from improved production efficiency in 2Q compared with higher overhead expenses when the plant was shut down for upgrading in 1Q.

Annjoo is the first steel company to report profit. Masteel, Kinstel and Ssteel report losses.

I like annjoo a lot. There is a warrant for annjoo, annjoo-wb.

Annjoo-wb expiry date 10/1/2013 (1234 days to go), 36% premium and 3.62 gearing.

Uchi Tech 2Q earnings improve from previous quarter

Penang-based UCHI TECHNOLOGIES BHD saw earnings and sales pick up in the second quarter ended June 30, 2009, from the preceding quarter although compared to last year, the group still experienced a contraction.

Compared to the previous corresponding quarter, revenue and net profit declined by 33.4% and 71.6% to RM22.4 million and RM4.7 million, respectively, in the second quarter. Meanwhile, profit before tax contracted 71.2% to RM4.9 million.

However, on a sequential basis, the group's revenue and net profit increased 23.3% and 68.4% from respectively, RM18.1 million and RM2.7 million in the first quarter ended March 31, 2009.

For the six-month period, revenue fell 42.4% to RM40.5 million from RM70.4 million a year ago while net profit shrank 78.7% to RM7.4 million from RM35 million.

In notes to the financial statement, the group said it recognised realised foreign exchange losses amounting to RM8.9 million for the two quarters. It added that the recognition of such exchange losses shall not recur in the rest of this year.

According to the group, lower sales volume is expected for the current financial year in line with the global economic slowdown, leading to lower financial results too. No dividends were declared.

More speed bumps, China Stocks Tumble 2.59% (intra day low -6%)

Investors in China led the selling across Asia Tuesday, with concerns about more speed bumps for the economy pushing bank shares lower. Most major indexes across the region were also in the red.

The Shanghai Composite Index sold off sharply, led by banking stocks, after Premier Wen Jiabao said China would keep its monetary policy loose as the economy faces new difficulties, including trouble boosting domestic consumption.

In a downbeat statement published after the market closed on Monday, Wen said Beijing would ensure a sustainable flow of credit and a reasonably sufficient provision of liquidity to support growth.

The benchmark index had staged a technical rebound over the past three trading days after a 20-percent slide in the two weeks to last Wednesday's close, spurred by profit-taking and worries over fresh share supplies among other factors.

Traders said Wen's comments cast fresh uncertainty over China's economic recovery, which showed signs of slowing in July after solid improvement in the first half. Such uncertainty might limit the room for stocks to rebound in the near term.

At the same time, however, signs of a possibly quicker-than-expected global economic recovery might gain increasing influence over China's stock market, traders said.

Industrial Bank tumbled 6.30 percent to 34.34 yuan after it posted a disappointing 4.9 percent drop in net profit to 6.22 billion yuan ($911 million) in the first half from a year earlier. That dragged share prices of other banks lower as well.

Hong Kong’s Hang Seng followed China down as market liquidity receded.

"The inflow of liquidity into Hong Kong has been falling, and this will affect blue chips and China-related stocks, but the short-term pressure will not be that significant," said Capital Securities (HK) research head Jaseper Tsang.

"Buying momentum and buyers' positions may ease, but investors are expecting more positive economic data which should make companies' profitability sustainable, and that should give support to the market in the coming months," he said.

Tokyo Slips with Elections Eyed

The Nikkei average fell as exporters such as Canon took a breather after a rally the previous day, while investors focused on Japan's Aug. 30 general election and U.S. economic data.

Market analysts say many expect Japan's opposition Democratic Party to gain power but investors remain hesitant about actively taking positions before they see the results, though some say the election has already become a neutral trading factor.

Behaviour of Call Warrants

Warrant prices are determined by the market forces i.e. willing buyer and willing seller. In general, call warrant prices are influenced by the change in (1) underlying security price, (2) risk-free interest rate, (3) Exercise Price, (4) dividends, (5) volatility and (6) tenure or time to maturity.


For more information about call warrants basics
http://warrants.cimb.com/WRT/callWarrants.jsp#b

Kien Huat to buy stake in US firm

An affiliate of casino operator Genting, Kien Huat will spend US$55 million to own 34.5 million shares in Empire Resort, putting its holdings at just under 50 per cent.

KIEN Huat Realty III Ltd, an affiliate of casino operator Genting Bhd, plans to invest US$55 million (RM194 million) to acquire 34.5 million shares in Empire Resort Inc, operator of the Monticello Gaming & Raceway complex outside New York.

On Wednesday, Empire Resort entered into an investment agreement with Kien Huat, under which US$55 million in new equity capital will be invested in the American company in two tranches in exchange for common stock, representing just under 50 per cent of the voting power of the company.

Empire Resort said it issued 6.8 million common shares to Kien Huat, repesenting about 20 per cent of outstanding shares before the transaction, for US$11 million (RM39 million).

Some US$2.6 million (RM9 million) will be used to pay interest on Empire Resort's convertible senior notes due on July 31 2014, according to a statement issued by Empire Resort.

In the second tranche, the statement said Empire Resort plans to issue an additional 27.7 million shares, raising US$44 million (RM155 million).

Upon closing, Empire Resort said Kien Huat will own 34.5 million shares, putting its holdings at just under 50 per cent.

Following the second tranche, Kien Huat will make a US$10 million (RM35 million) credit facility available to Empire Resort to repay any remaining debt due under its US$4.4 million (RM15 million) senior credit facility with Park Avenue Bank of New York.

Under the agreement, Empire Resort said Kien Huat can appoint three directors to the company's board, including a non-executive chairman.

Airasia-ce 113% profit

Finally, yes finally, I have sold all my airasia-ce. Airasia-ce was the biggest part of my portfolio and it was the first time i put some much money on a single call warrant. I am so glad that it turned out to be a superb trade!

I bought airasia-ce on 22 April (RM0.08), 6 May (RM0.125), 7 May (RM0.12), 15 June (RM0.09), 18 June (RM0.08) and 22 June 2009 (RM0.065).

It was really not my style to buy when it is near its resistance as i did on 6 May and 7 May. The reason behind this was because that Airasia was expected to announce its quarterly result soon, i was confident that airasia would release a great result, so i thought the resistance would be easily broken with the help of a great result.

I sold airasia-ce on 4 August (RM0.2 & RM0.205) , 18 August (RM0.19) and 19 August 2009 (RM0.19). I started selling on 4 August 2009 after the uptrend broken with big decline of airasia-ce (-20%) and airasia (-8%) on 4 August 2009. In fact, I sold half of my airasis-ce on 4 August 2009. I am glad i did that.

Airasia-ce is going to expire in another 10 days.

I am happy manage to get 113% profit in 4 months for the biggest part of my portfolio.

Ok, good luck.

I'm Back! I'm Back!

Since the past few weeks, I had been selling most of my stocks and call warrant. After closing most of my position in stock market, i went for a vacation last Wednesday with my fiancee. The few days of vacation really gave a good chance to stay away from the stock market and relax a while.

Now I'm back and feel good to be back to the battle field again. I'm still updating myself on what happened in the stock market in the few days.

I guess I will slowly start buying again next week. Since I closed my positions, the stocks and call warrants have dropped 10-15%. I don't expect the correction to be a severe one.

Ok, good luck.

GOon

Is Profit-taking Season here?

KLCI showed a major retracement as profit-taking continued with a vengeance across the region. The world stock market tumbled. DOW declined 186 points with traders continuing to take profit.
Hong Kong down 3.6% and China down 5.8% yesterday. It is really a huge drop. This sell-down came in the absence of any major annoucement. It was pure profit-taking activitiy.

I don't think now is the time for bargain hunting.

I sold most my call warrants but i am still holding some stocks.

HSBC 65% profit in 8 weeks

Finally i have decided to close most of my call warrants positions.

The last time i posted something about HSBC was a week or two ago. Here is the link to the post.
http://cathoon.blogspot.com/2009/08/hsbc-c5-jumps-30-today.html

Since 2 weeks ago, I already thought that the current uptrend was getting tired. Now I think the correction is already here. Correction has started. There were 2 big drops in world stock market in the last few days.

HSBC did not manage to break its resistance at HK$87.67. With current weak sentiment, I don't think the resistance can be broken without undergoing a healthy correction.

I bought HSBC-C5 at RM0.18 on 19 June 2009 and sold them all (RM0.285, RM0.29, RM0.295, RM0.305 and RM0.31) in the last few days. I am glad manage to make 65% in 8 weeks.

HSBC-C5 low liquidity did give me a big headache. If i were to sell all my HSBC-C5 in single days, i might push it into discount territory. That was why i could not sell all my HSBC-C5 at a single price on the same day. The trading volume was just too low.

Now I am preparing myself for a correction.

Ok, good luck.

GOon

How Tiong King Sing and his companies accumulate that kind of money?!!

I don't like Datuk Seri Tiong King Sing, Barisan Nasional Backbenchers Club (BNBBC) Chairman. I still remember he commented that crime rate in Malaysia/Johor Bahru is not as serious as it is written in newspaper. How dare he denied that the crime rates in Malaysia is not high! There are lots of rape, snatch thief, robbery, house break in and road bully cases happened in Malaysia EVERYDAY.

Article from The Edge Malaysia (http://www.theedgemalaysia.com/political-news/147394-pkfz-probe-must-continue.html)
KUALA LUMPUR: There is no proof of the RM10 million donation from Kuala Dimensi Sdn Bhd chief executive officer Datuk Seri Tiong King Sing, said MCA treasurer Senator Tan Sri Tee Hock Seng.

Tee, who became the party's treasurer last year, said there was no donation from Tiong since he took over the post.

"All donations must be made to the party and not on personal basis. As far as I know, there is no donation from Tiong. There is no proof," said Tee after attending the party's special briefing on the issues surrounding the Port Klang Free Zone and the RM10 million donation allegedly made to party president Datuk Seri Ong Tee Keat at Wisma MCA yesterday.

Asked if it was possible that the donation was made before he took over as treasurer after the party polls in October last year, Tee said: "So far, nothing."

Asked if any members had received money from Tiong, who is Barisan Nasional Backbenchers Club chairman and Bintulu MP, in their personal capacity or on behalf of their divisions, Tee said he had no knowledge of it.

He also said the donations made to the MCA are usually done in a specific manner. "In Datin Paduka Chew Mei Fun's case, the money was donated (by Tiong) to MCA at divisional level for a senior citizen group.

"All that is important to the party is that money donated must be accounted for," said Tee.

Tee also confirmed that the Malaysian Anti-Corruption Commission (MACC) had not contacted the party for investigation but said the MCA was ready to give its full cooperation on the matter.

He explained that the party's accounts were audited on a yearly basis.

Meanwhile, MCA secretary-general Datuk Wong Foon Meng said Article 137 of the MCA constitution allows the party to receive donations but is silent on the amount and the mode of receiving.

Asked if the MCA received the RM10 million donation as claimed by Tiong, Wong said: "The burden of proof is on Tiong. You must prove beyond reasonable doubt."

Sunrise Bhd 66% profit and a good lesson for me

Sunrise Berhad (Sunrise) is engaged in property development and investment holding. Its subsidiaries include Ascot Assets Sdn. Bhd., Aston Star Sdn. Bhd., Cekap Kawal Sdn. Bhd., Interior Design One Sdn. Bhd., Laser Tower Sdn. Bhd., Lembah Suria Sdn. Bhd., Lucky Bright Star Sdn. Bhd., Sunrise Alliance Sdn. Bhd. and Sunrise Century Sdn. Bhd., among others. On August 23, 2007, the Company announced its acquisition of Sunrise International Development Ltd. On September 13, 2007, the Company announced that Sunrise Oscar Sdn. Bhd., a wholly owned subsidiary company, has acquired the remaining 20% interest in Sunrise DCS Sdn. Bhd. On August 1, 2008, the Company announced the dissolution of its foreign subsidiary company, Sunrise Project Services Ltd.

I like Sunrise because it is fundamentally strong and it pays good dividend.

On 16 Feb 2009, I bought 4000 shares of Sunrise at RM1.25. During that time it was trading near its resistance at RM1.21.

I must admit, I did a big mistake. I should had waited till the downtrend is broken, then only i enter the trade. I did not, as a result, Sunrise kept on dropping till RM0.90. I did not cut lose because it was a small part of my portfolio and Sunrise was fundamentally strong. I hold it for 6 months.

Although I made a mistake in this trade, I think it was a "good" mistake. I learn from this trade. Every time when I am about to open a position on a trade, it will remind me not to make the same mistake again. Since then, I only open a position after a downtrend is broken and close a position after an uptrend is broken. Most of the time, i trade the stock is near its support/resistance.

Today i sold all my Sunrise stock at RM2.07. Sunrise has been moving side way since the last few trading days while most of the stocks in KLSE had a big drop. I really think a short term correction is coming.

I make 66% profit from this trade and gain a good experience/lesson which is priceless. I am so glad i traded Sunrise.

Ok, good everyone.

GOon

Incentives for airlines (AirAsia)

It is understood that Malaysia Airports will offer new perks for airlines this week, including rewarding those that bring in additional passenger traffic to Malaysia

Airport operator Malaysia Airports Holdings Bhd (MAHB) (5014) is expected to announce this week a new set of financial incentives for airlines that fly out of the 39 airports it operates in the country, which will include rewarding those that show growth in passenger numbers.

This was revealed by MAHB managing director Tan Sri Bashir Ahmad at a Board of Airline Representatives (BAR-Malaysia) meeting on Friday, according to several sources.

BAR-Malaysia represents the majority of airlines operating at the KL International Airport (KLIA) in Sepang.

"At the meeting, he (Bashir) said the company will announce a new incentive programme for airlines this week, but did not give details," an airline source told Business Times.
The expected incentive programme is long overdue and will replace the current scheme, which expired in May 2007 but has since been extended.

According to industry sources, new foreign airlines and existing airlines that add new destinations or frequencies to KLIA and other airports in the country will continue to enjoy a waiver on landing fees under the new incentive programme.

"However, the duration of the waiver, whether it is three years or five years, is still being deliberated on, after which discounts on landing fees will be given ," one source said.

The current full waiver on parking fees will also likely to be withdrawn.

"Parking will be free for the first three hours, after which airlines will be charged based on the amount of time that their planes spend waiting to take off," the source added.

And for the first time, it is understood that MAHB will offer a new incentive to existing airlines to keep them operating through its airports.

"This new incentive will be available to all airlines, regardless of whether they are low-cost carriers or legacy carriers, and will be given to those that bring in additional passenger traffic to the country," another source said.

MAHB was earlier reported to have proposed that airlines get rebates on airport tax or passenger service charge for certain percentage growth they achieve in passenger load factor year-on-year.

"Any incentive is definitely welcome, but the proposed growth incentive scheme is not expected to ease the financial plight of airlines much as most are struggling to fill their planes today due to the global economic slowdown and the influenza A (H1N1) pandemic. But it should benefit carriers like AirAsia, which recorded higher passenger volume recently," the same airline source said.

In its filing to Bursa Malaysia on Wednesday, AirAsia had said that the group continues to expand market share as more people switch from full-service carriers to the low-cost carrier.

It saw its passenger volume rise 24 per cent in the second quarter of 2009 from the same period last year.

It was reported that for 2009, MAHB expects passenger numbers passing through its airports in the country to fall by up to 5 per cent from 47.45 million last year.

Bursa-cl 37% profit in 7 weeks

In the 18 July 2009, I posted something about Bursa Malaysia(http://cathoon.blogspot.com/2009/07/bursa-malaysia-berhad-set-to-double.html). I did not trade Bursa Malaysia. I am more interested in call warrants, so i traded Bursa-cl.

I started my position on 18 June 2009 at RM0.44 and again on 16 July 2009 at RM0.515. During that time, Bursa had yet to released its quarterly report. I was confident it would certainly release a better-than-last-quarter result. I thought a good result would be a good catalyst for Bursa to climb upward after it had been moving side way for around 2 months, so days before Bursa was scheduled to released its result, I bought more bursa-cl.

On 20 July 2009, Bursa Malaysia released a quarterly result better than the result anticipated by analysts. Since then, Bursa had been climbing up and up.

I was thinking it was very hard for bursa to go down since the average trading volume for KLSE was climbing up. Surely Bursa would make lots of profit out of the high trading volume. That's why I considered Bursa-cl to be very "safe" trade.

On 12 August 2009, I sold all bursa-cl in my portfolio for a few reasons. 1st, on 11 August there was a big drop in US and Europe stock market. Second, the next day our KLCI responded to US and Europe stock market, Bursa dropped 2.6%. That was a big drop and i thought Bursa uptrend would have been broken. I sold all my bursa-cl at RM0.645 and prepared for a correction.

In this trade, I managed to get 37% in 7 weeks.

Last friday, there was another big drop in US and Europe stock market. I really think a correction is starting to emerge.

Ok, good luck in your trading.

GOon

Courting Penang's diaspora

Courting Penang's diaspora
23 June 2009
By Tan Boon Kean.

"PENANG people are not kiam [stingy]. They are just khiam [thrifty]," says Lim Guan Eng, chief minister of Penang, to a packed audience in Singapore. The crowd roars with laughter at the word play on the Hokkien dialect's intonation and the Malaysian state's reputation for parsimony. The joke had the non-Chinese and even non-Hokkien speaking Chinese diners quickly seeking an explanation from their friends.
The stage last Monday [June 15, 2009] was the old-world Kia Hiang Restaurant on Kim Tian Road, in the heritage area of Tiong Bahru in Singapore. In a way, the choice was a reflection of the traditional link between Singapore and Penang. This was not glitzy Orchard Road or uber cool Marina Bay.
It is a locale familiar to a settled diaspora; of old and young executives, including the CEO of a $1.8 billion Singapore-Exchange company, a chief surgeon, top doctors, senior lawyers, successful businessmen and women, and a sprinkling of senior civil servants as well. Yet, that night, at the event hosted by the Old Frees' Association (Singapore), they identified themselves as a roll call of Penang's premier institutions: Chung Ling High School, Penang Free School, St George's Girls' School and St Xavier's Institution, among them (in alphabetical order rather than ranking, lest I get drawn into a debate).

"Penangites have not only been losing income; they have also been losing relatives. Penang's families have been sending their sons and daughters abroad for a long time now - down to the Klang Valley in Selangor, over to Singapore, and out into the great wide world," Lim wrote in an op-ed published in Singapore's Straits Times that same day. "It is time Penangites reverse this trend."

And the chief minister was there that night to "re-connect" with the Penang diaspora in Singapore. Not so much to ask them to change their loyalties but to inform and encourage their support and feedback.

"Singapore, Medan, Hong Kong are our immediate targets. We are reaching out to people who know Penang. It is part of their life and they don't need much convincing but they need to reconsider Penang, to reconnect," Lim would elaborate the next day in an interview with The Edge Singapore's consulting editor Assif Shameen and myself.

It is something Singaporeans understand. After all, Singapore was built on waves of diasporas from the region and the world at large, attracted by work and business opportunities.Today, they're called "foreign talents" and the republic encourages them to stay permanently to further contribute to Singapore's growth.

The policy would seem timely. Just last week, the latest demographic data showed Singapore's birth rate continued to slip to only 1.28%. Yet, the population grew 5.5% to 4.84 million, due mostly to a new influx of non-residents and those taking up citizenship.

The search for top-class human capital is a global trend. Countries that have been seeing a net export of skilled labour, in particular, now work harder to encourage their diaspora to "return", whether with investment flows or their skills. India does it with special incentives for its NRIs (Non-Resident Indians) and China has its "sea turtles" (a term for returning students who have worked and stayed abroad) programmes.

"Ultimately, the aim is to make Penang a model that other cities and states in Malaysia will want to emulate," Lim wrote in his op-ed, outlining his vision. But it will be a tall order. Unlike Singapore, which was given sovereignty over large amounts of state land upon its separation from Malaysia in 1965 and could auction it to raise revenue (as with another former British colony, Hong Kong), Penang is small and state-owned land is scarce. Its hilly terrain, although filled with lush vistas, does not allow for wide swaths of plantations. Nor is it blessed with oil, like some other Malaysian states.

Minister Mentor Lee Kuan Yew's assessment of Penang's prospects as reported in The Straits Times last Tuesday were, candid: "I do not believe that he [Chief Minister Lim] can get the basic infrastructure up to mark without the support of the federal government and the federal government will only support him if he cooperates, and even then I'm not sure."

To this Finance Minister Tharman Shanmugaratnam, who accompanied Lee on his eight-day Malaysia tour, added, "They have to make calculations, politically and economically, as to what relationship they want with KL, in order to achieve the objective they want, which is to raise the standard of living in Penang."

Liew Chin Tong, the MP for Bukit Bendera and policy adviser to the Penang chief minister, who accompanied Lim to the dialogue, winced when he read this. "We are dependent on the federal government," he concedes, "but we are also dependent on foreign investors. Therefore, we will find alternatives and search for other models."

That explains why almost every other month the chief minister keeps reminding Putrajaya - Malaysia's administrative capital - that it should provide more funds. He knows he won't get it easily, but he needs to manage the expectations of the state's voters. Liew reminds any listener that Penang pays about RM3 billion ($1.2 billion) annually in taxes but gets back only about RM100 million in federal allocations. "Penang needs re-branding. Penang was an international city on par with Singapore years ago," he says. "It was more well-known than Phuket or Bali."
Nostalgia may get you a Unesco-Heritage-City designation but that's about it. "The question is, how do we create an environment so there is gainful employment? Having more foreign workers will only depress wages. We must move up the ladder," says Liew. It wasn't surprising then that among the first steps taken last week was Lim's announcement that he would soon set up a Penang-investment-promotions office in Singapore, which would field not only Singapore but also regional investor queries and feedback for the state.
The symbolism of a representative office in Singapore, the first by a Malaysian state government, should not be overlooked. It reflects the independence of the DAP-majority Penang state government and the relatively equal status and relationship it shares with its other Pakatan Rakyat coalition partners. One wonders if the previous Penang state government that was under Umno-dominated Barisan Nasional rule would have dared or been permitted to make such a move.

Instead of starting cold in faraway places where few know Penang (one is reminded of the Singapore Economic Development Board's pioneers who had to make 'cold calls' to get investors in the 1970s), Lim is cleverly re-working an old route, but with a new angle.

Cumulatively, to date, Singapore companies invested up to RM2.6 billion, accounting for more than 50% of total foreign direct investment awarded in the state. Lim wants to continue visiting the region and companies to deepen the connections. After his first visit last April 17, which included a call on Prime Minister Lee Hsien Loong, Lim says the stage is clear for "closer links".
"Penang is already designated as one of the BPO [business-process outsourcing] centres of the future, with its pool of young, trained, multi-lingual workers. We can meet almost all their demands," he says. "Many foreign investors are surprised at the capability of our engineers. There is also the intangible aspect - the living environment that is beautiful."
He however acknowledges that they are working hard to tackle the three Cs - crime, traffic congestion and cleanliness. When Lim said that, I could visualise the grubby state of George Town's Komtar complex, where the state government offices are located. That, doubtless did not impress the Singapore delegation when they arrived. Next to it is the brackish, sludgy Prangin Road canal, which certainly cannot compare with the Singapore River.

Still, the 48-year-old chief minister's enthusiasm is clearly infectious. He is also tenacious, having survived two terms of political detention and prison for his ideals. After all, he has no choice but to start from scratch as he has the expectations of the March 8, 2008 electoral groundswell behind him.

As the interview winds up, I find he has a packed schedule. He's off to Sentosa Development Corp, which oversees the burgeoning billion-dollar casino developments and other projects, and after that, it's Ascendas, the giant $9 billion industrial-parks manager.

Who knows, perhaps the chief minister will run into one or more Penang-diaspora executives with an accommodating ear?

http://mychiefministerlimguaneng.blogspot.com/2009/07/lim-guan-eng-in-singapore.html

The Truth about Kampung Buah Pala. I support Lim Guan Eng

Dear all,
PLEASE FORWARD THESE STATEMENTS FROM SAUDARA LIM GUAN ENG TO ALL
MALAYSIANS. NST & STAR NEWSPAPERS ARE NOT ALLOWED TO PUBLISH SUCH STATEMENTS OTHERWISE THE SENIOR STAFFS WILL HAVE TO FACE THE MUSIC DURING THIS ECONOMIC
DOWNTURN ! !

Kg Buah Pala - The truth, that the Main Stream Media will never published, Press Statement By Penang CM In Georgetown On 30.6.2009.
TUESDAY, 30 JUNE 2009 11:51

Hindraf Must Wake Up And Realise That Kampung Buah Pala Is Still Standing Today Because The Penang Pakatan Rakyat State Government Had Successfully Prevented Them From Being Evicted In The Middle Of Last Year.

The Penang Pakatan Rakyat state government has never consented nor approved any demolition of Kampung Buah Pala. Any action taken is by the private developer via a court order issued by the relevant courts.

Up to RM 200,000 per family was offered by the developer to the residents which was accepted by many families but not by those remaining in Kampung Buah Pala. The state government respected the decision of those remaining in Kampung Buah Pala to reject any compensation offer and to fight it out in courts.

If the state government had not been sympathetic to the plight of the residents, then the developer would have evicted the residents in the middle of last year when a court order was obtained. Only the determined preventive efforts by Penang DCM2 Professor P Ramasamy and Penang State EXCO Abdul Malek stopped the developer from entering the village with bulldozers several times last year.

All parties must therefore realise that it is only because of the efforts of the present Pakatan Rakyat state government that the Kampung Buah Pala residents are still living there.

Koh Tsu Koon Owes The Public A Full Explanation Why He Sold The Kampung Buah Pala At A Cheap Price Of Only RM 10 Per Square Feet In 2007 And Without consulting the residents.

The state government land of Kampung Buah Pala was approved to Koperasi Pegawai Kerajaan Pulau Pinang twice by the BN Penang state EXCO led by Tan Sri Dr Koh Tsu Koon on 18.8.2004 and 8.6.2005 with a premium of RM 6.42 million or RM 20 per square feet. I can not understand neither the rationale of approving this project without consulting the residents nor selling it at such a low price.

Worse Tan Sri Dr Koh Tsu Koon's EXCO reduced the premium further by 50% to RM 3.21 million or only RM 10 per square feet on the recommendation of theUMNO Deputy Chief Minister. Koh Tsu Koon owes the public a full explanation why he sold Kampung Buah Pala at a cheap price of only RM 10 per square feet in 2007 when the market price in this prime area is many times over and without consulting the residents.

The Penang State Government Should Not Be Unfairly Victimised And Targeted By Hindraf For Helping The Kampung Buah Pala Residents. It is BN, Gerakan, MIC, UMNO & MCA that are the main culprits for causing, abandoning and even selling out Kampung Buah Pala residents.

The Penang state government regrets the highly irresponsible and irrational actions of Hindraf in targeting the Penang state government over the actions taken by the developer to evict residents in Kampung Buah Pala. Hindraf wants the state government to act against the court order obtained by the developer to evict the residents. This the state government can not do as Pakatan Rakyat governs under the rule of law and is compelled to respect any court order issued.

On the other hand, there have been suggestions that the Penang state government forcibly acquires the land under for a public purpose under the Land Acquisition Act. Doing so would play into the hands into the developer who would be able to reap enormous profits without putting in a single cent. Much as the Penang state government would wish to do, cancelling the project and forcibly acquiring the land would incur costs beyond the financial capability of the state government. We are NOT talking about millions of ringgit or tens of millions of ringgit here!

Clearly Hindraf is unable to distinguish who its friends are by likening such actions to UMNO's tearing down of Hindu temple. And yet Hindraf does not organise nation-wide protests for the recent tearing down Hindu temples in Kuala Lumpur. The Penang state government should not be unfairly victimised or targeted by Hindraf when we have assisted the residents and also not involved with the tearing down of any Hindu temple in Penang.

Why is Hindraf not demonstrating against UMNO or Gerakan or MCA or even MIC who are the main culprits and perpetrators behind Kampung Buah Pala? This begs the question whether Hindraf has now been infiltrated by collaborators of MIC and BN when it should be demonstrating against those who demolish temples and not the Penang state government seeking a fair deal for the Kampung Buah Pala villagers.

Hindraf should realise what the Penang state government has done for the Indian community, temples and Tamil primary schools. Not only was the first Indian Deputy Chief Minister II of Penang appointed but the 28 Tamil primary schools were given a yearly allocation of RM 1.5 million along with other Chinese primary, Sekolah Agama Rakyat, missionary schools and Chinese independent secondary schools. Further Penang put up the FIRST Tamil road signs in the country alongside with Arabic, Chinese and English bilingual road signs in Georgetown. Even Hindraf never even raised the
issue of Tamil road signs.

By going against the Penang state government, Hindraf is indirectly helping UMNO and BN and putting all the achievements made by the Penang state government at risk. There will be no Indian DCM2, no yearly allocation of funds to Tamil primary schools and no more Tamil road signs or bilingual road signs. Hindraf should use reason not emotions of rage or anger and think again who are the real opponents and the real friends of the Indian community.

Most important of all, the Penang state government treats all Indians together with Chinese and Malays as Malaysian citizens, where a Chinese leader can look after Malays a Malay leader can look after Chinese and an Indian leader can look after all citizens. DAP and the Pakatan Rakyat government will not back down or be cowed by BN, UMNO or Hindraf who continues to look at problems from a narrow racial spectrum of Chinese, Indian of Malays. DAP and thePenang Pakatan Rakyat government believes that the issues of Indians are not Indian problems, the issues of Chinese are not Chinese problems nor the issues of Malays not Malay problems but a Malaysian issue.

We should be uniting together as Malaysians around the principles of justice, truth, freedom, democracy and welfare of the people to ensure that we fight corruption to both generate growth and prosperity as well as ensure that everyone shares equitably. However despite regretting the unwarranted targeting of the Penang state government, Hindraf leaders have the right to exercise the basic human rights of peaceful assembly by demonstrating no matter how unreasonable they are. I have instructed my officials to respect their rights and accept any memorandum submitted in line with non-violent principles of Mahatma Gandhi that, "violence begets violence, an eye for any eye would leave everyone blind." I also urge the police not to take any action that would lead to untoward actions.

The state government will also not be affected by the actions of the residents in suddenly turning against the state government despite all the assistance offered. The state government will continue to assist the remaining residents of Kampung Buah Pala, including if the residents so wish, that the developer of Kampung Buah Pala continues with its offer of up to RM 200,000 compensation per registered family to the residents. The state government has also not given any consent or agreement to the developer to demolish any buildings as the developer is acting on his own under the court order from the High Court and Federal Court.

http://mychiefministerlimguaneng.blogspot.com/

Connie Talbot and Yoo Ye Eun. They are phenomenal! Fantastic!

Wow! Amazing! They are super talented! Yoo Ye Eun cannot see a thing, but she has angel's hands that can touch everyone's heart.

It is really touching watching their performance. I am deeply touched.

Hope you like it too.

GOon

AirAsia posts better-than-expected 2Q results

AIRASIA BHD has beaten expectations in its second-quarter (2Q) results, posting a net profit of RM139.18 million in an operating environment where many airlines are in the red.

Its chief executive officer Datuk Seri Tony Fernandes anticipates even stronger earnings in the current third quarter ending Sept 30, in view of the robust sales in July and August.

Yesterday, the low-cost carrier announced its 2Q net profit, which was significantly higher than the RM9.42 million in the previous corresponding period. Its core operating profit soared to RM128.42 million, up 328% year-on-year (y-o-y) from RM29.98 million.

Fernandes said via teleconference that the performance actually exceeded his own expectation.

“I am very pleased with the results. In the first half (of 2009), we are one of the few airlines around the world that posted true operational profit,” he added.

AirAsia’s operational profit rose to RM399.96 million, up more than twice the RM154.47 million reported for the same period last year.

He added that the dramatic increase in its earnings was largely due to AirAsia’s strategy of cutting passenger fares, which were offset by higher volumes. Cost cutting such as the removal of administrative fees also helped, he noted.

Fernandes said that average passenger volume had grown 24% to 3.52 million passengers from 2.84 million y-o-y, while fares had come down by 19%. Its load factor remained unchanged at 75%.

Meanwhile, ancillary income had increased by 3% to account for about 14% of its profits. AirAsia’s margins, he added, were an industry-leading 21%.

“This shows that our strategy of lowering the price works,” Fernandes said, adding there had been no impact from its competitor’s sales campaign.

As for its operations overseas, AirAsia’s Thai operations managed to narrow losses to RM8.2 million. Indonesia AirAsia also reported a loss of RM21.8 million although it managed to grow its passenger load by 47%.

Fernandes said AirAsia’s overseas operations were poised to become an important contributor to the group’s bottom line, noting that the “tide has changed”. The delivery of new Airbuses to the two destinations would help to turn those businesses around, he added.

Commenting on the delivery of new aircraft, he said AirAsia might further defer delivery of another eight aircraft in 2011 if the proposed new LCCT terminal is not ready by then.

Due to the insufficient space at the current LCCT, the low-cost carrier has decided to postpone the delivery of eight aircraft next year.

Fernandes added that he expected most of the growth next year to come from Thailand and Indonesia. AirAsia is also developing its Penang hub to ease the congestion in Kuala Lumpur.

As to whether AirAsia would hedge its fuel given the present level of US$70 per barrel, Fernandes said: “No, there’s too much volatility.”

“We spoke with two major oil companies and they said that supply and demand does not match the current price. There’s so much volatility and we don’t want to play in that game yet.”

For the second quarter, AirAsia wrote back some RM18 million to RM20 million as banks released collaterals AirAsia had deposited as security against its hedges. The figure also included savings from lower handling fees charged by airports.

HKEX profit up 64%

HONG KONG -- Hong Kong Exchanges & Clearing Ltd., the world's largest bourse operator by market capitalization, posted Wednesday a 64% rise in second-quarter net profit from the previous three months on an increase in trading volume on the local bourse.

The blue-chip bourse operator said in a statement the increase in turnover on the local exchange was driven by strong fund inflows to Hong Kong and an improvement in sentiment rather than economic fundamentals.

AirAsia profit jumps to RM139.2m on rising demand

AIRASIA, Asia’s largest budget airline by fleet size, reported sharply higher quarterly earnings as dwindling demand for full-fare carriers amid the economic downturn boosted discount airlines.

Regional budget carriers such as AirAsia and Jetstar Asia Airways, partly owned by Australia’s Qantas Airways Ltd, and Tiger Airways, 49 per cent owned by Singapore Airlines, have either added capacity or increased flight frequencies to cope with higher demand.

“While major legacy carriers are cutting flights, grounding planes, retrenching staff and reporting massive losses, AirAsia is seeing rising demand, adding more routes, increasing frequency and securing higher profits,” Tony Fernandes, AirAsia’s chief executive, said in a statement today.

Underlying passenger demand in the third quarter remains positive based on forward booking trends, he said.

Full-service carrier Malaysia Airlines said last week it returned to profitability in the second quarter, boosted by revaluation gains from fuel hedging, but still made losses at the operating level.

Lower fuel costs are helping AirAsia, which doesn’t hedge its fuel requirements.

Prices for jet fuel in Singapore have dropped more than 50 per cent after peaking at US$$167.70 a barrel last year.

But data from the International Air Transport Association showed conditions remained tough, with airlines carrying 16.5 per cent less cargo and 7.2 per cent fewer people in June than the same month a year ago.

AirAsia made a net profit of RM139.2 million in the April-June quarter against RM9.4 million a year earlier.

The airline maintained its seat load factor at 75 per cent during the quarter, a 5 percentage points increase over the first quarter.

Non-ticket revenue grew by 89 per cent to RM95 million in the second quarter, representing 14.5 per cent of total revenue, it said.

Analysts in Malaysia do not provide quarterly forecasts, but have said AirAsia’s tight cash flow and high debt level are worrying given its huge commitment to fund aircraft deliveries.

The airline recently announced plans to raise about $170-$180 million through private placements to repay borrowings.

It last week deferred the delivery of eight Airbus A320 aircraft to 2014 from 2010, which analysts said signals potential overcapacity in the future.

AirAsia shares have gained 64 per cent since the start of the year, far outperforming a rise of only 2.3 per cent by Malaysia Airlines and the broader market’s 35 per cent gain. - Reuters

Airasia and HKEX to announce quarterly report tomorrow

Airasia and Hong Kong Exchanges and Clearing (HKEX) are scheduled to announce their quarterly reports tomorrow. So, tomorrow is a big day to me as Airasia-ce and HKEX-CB make up a large part of my portfolio.

It is quite certain that HKEX result would be better than the last quarter. Analysts raise its target price to HK$181.95. Currently, HKEX is trading at HK$151.90. As for call warrants, it is trading at RM10.445. HKEX-CB up 5% yesterday and up another 8.5% today. Even though analysts are positive with HKEX, I think it is better to start accumulate HKEX-CB after a correction set in.



Referring to the chart, HKEX is near its resistance level at HK$155.56. If HKEX announces better-than-anticipated result, this resistance should be easily broken. I see a more significant resistance level at HK$168. So, i think HKEX would be trading within HK$155 and HK$168 within the next few weeks.

As for airasia, i think airasia will announce a good result. Today Airasia-ce rebounds 14%. After consolidation for a week, with a good result, airasia should be able to resume its upward momentum to the next resistance at RM1.66 within the next few weeks. For your information, Airasia-ce will expired in another 22 days. I think there would be not much catalyst for airasia except its tomorrow quarterly result.

Here is the link to my previous post about Airasia
http://cathoon.blogspot.com/2009/08/analysts-positive-on-airasia-placement.html

Tomorrow i will wake up early as i don't want to miss the thrill and excitement from HKEX-CB and Airasia-CE.

I love these feeling!

Ok, enjoy your trading.

HKEX profit is expected to UP 65% q-o-q, UP 4% y-o-y

華富新聞：港交所(388)逆市造好﹔麥格理料次季多賺65%
8月 11日 星期二 11:01 更新


港交所(388)逆市升1.4%﹐報148.5港元。該股正面臨明天公佈的中期業績﹐市場期待次季表現大有改善。麥格理估計﹐港交所次季盈利13.76港元﹐按季大增65%﹐按年也增4%。


法國巴黎(新聞 - 網站 - 圖片)指﹐港交所現價只反映900億港元的日均成交水平﹐仍未反映內地資金及新股等因素﹔調升目標價30%﹐至181.95港元﹐維持買入。

http://hk.biz.yahoo.com/090811/357/3hbdf.html?s=0388.hk

HKEX is scheduled to announce its quarterly report tomorrow. yes! yes! yes!

AirAsia to see higher profit in 2Q09

Airasia's second-quarter (2Q09) core net profit is anticipated to nearly triple to RM96.1 million from RM30 million a year earlier as the low-cost carrier managed to maintain a commendable load factor, said ECM Libra Investment Bank Bhd.

It expects the airline's revenue to increase to RM706.1 million in 2Q from RM535.1 million previously.

The research outfit estimates AirAsia's net profit to be RM261.9 million in the first half of the financial year ending Dec 31, 2009 and RM598.3 million for the full year. It expects the year-end holiday season to boost the airline's full-year profit.

According to Bloomberg, the market consensus on AirAsia's FY09 earnings is RM492.22 million compared with a net loss of RM471.7 million in FY08.

AirAsia is expected to release its second-quarter results on Wednesday.

ECM Libra, however, points out that the airline's profit would be lower on a quarterly basis against RM165.8 million in 1Q09 as a result of lower fares to attract sales.

The research firm said that although load factor would be 5.1% higher quarter-on-quarter (q-o-q) at 74.8% in 2Q09, revenue yield would decline 15% q-o-q to 17.4-sen/revenue per passenger per km (RPK) as a result of lower fares.

ECM Libra also expects cost per available seat km (CASK) to rise 9% to 9.4 sen due to a 20.8% higher jet fuel price. In 2Q08, when fuel jet price was much higher, CASK was 11.49 sen.

ECM Libra maintained its buy call on AirAsia with a target price of RM1.90. The counter closed at RM1.42 today.

In view of the impending 20% share placement later this year, the research outfit has tweaked its earnings forecast lower. But, it reckons the impact will be marginally offset by savings from the deferred delivery of eight aircraft in 2010 and 2014.

The research unit said its forecast earnings for AirAsia from FY09 to FY11 have been reduced by between 7.2% and 17.8%.

Correction coming?

It is really a disappointing day for our local stock market especially after US released some very positive news. Our local stock market (last minute up a mere 0.2%) doesn't respond greatly to the good news, but Hang Seng (up 2.72%)and Nikkei (up 1.08%) responds nicely to the good news.

As a result, i trim some of my portfolio today. Since the market doesn't respond well to good news, i think the market is finding an excuse (reason) for a correction. Thus, i think a small little bad news will make the market down.

There are some consolation prizes to me today as I am still holding foreign (Hong Kong) call warrants. HKEX-CB ups around 5% today. Tomorrow i will be monitoring HSBC-C5 closely as HSBC (HSBC-C5 mother) up 3.1% up but HSBC-C5 up 0%. If you understand what call warrant is, you will understand what i mean. haha.

Now I start to think if the correction is to come what would the correction magnitude be. I think it would be less serious than the last June correction. Honestly, the last June correction did really surprise me in term of its magnitude. Hopefully, this time it will not surprise me again.

Airasia is going to announce its quarterly report in this few days. Hopefully, it would be a great one.

Ok, good luck in your trading.

GOon

The climb-Miley Cyrus (please enjoy every word of the lyric)

I can almost see it
That dream I'm dreaming but
There's a voice inside my head sayin,
You'll never reach it,
Every step I'm taking,
Every move I make feels
Lost with no direction
My faith is shaking but I
Got to keep trying
Got to keep my head held high

There's always going to be another mountain
I'm always going to want to make it move
Always going to be an uphill battle,
Sometimes you going to have to lose,
Ain't about how fast I get there,
Ain't about what's waiting on the other side
It's the climb

The struggles I'm facing,
The chances I'm taking
Sometimes they knock me down but
No I'm not breaking
The pain I'm knowing
But these are the moments that
I'm going to remember most yeah
Just got to keep going
And I,
I got to be strong
Just keep pushing on,

There's always going to be another mountain
I'm always going to want to make it move
Always going to be an uphill battle,
Sometimes you going to have to lose,
Ain't about how fast I get there,
Ain't about what's waiting on the other side
It's the climb

There's always going to be another mountain
I'm always going to want to make it move
Always going to be an uphill battle,
Sometimes you going to have to lose,
Ain't about how fast I get there,
Ain't about what's waiting on the other side
It's the climb

Keep on moving
Keep climbing
Keep the faith baby
It's all about
It's all about
The climb
Keep the faith
Keep your faith

Premier banking to drive HSBC’s retail segment growth

Capitalising on its worldwide network of 8,500 offices in 86 countries, HSBC will use Premier banking as its growth driver for the retail banking segment.

HSBC Ltd regional director for personal financial services, Asia-Pacific, Louisa Cheang said there were now some trends of stabilisation in the retail banking segment.

“The last six to nine months had been very challenging. Nonetheless, deposits have increased despite low interest rates, and retail loans have grown,” she told StarBizWeek.

HSBC, “the world’s local bank”, led the mortgage market in Hong Kong with a combined 32% share on new loan drawdowns. From January to June 30, residential mortgages in Hong Kong reached US$33.8bil, 6.4% higher than the US$31.8bil recorded in the previous corresponding period.

HSBC Bank Malaysia Bhd general manager of personal financial services, Lim Eng Seong, said he was rather surprised to see no drop in loan applications for mortgages in the last few months, despite the financial crunch.

“This shows that Malaysia has weathered the storm very well. The appetite for loan is still there and people have liquidity,” he said.

According to Bank Negara, the household sector saw demand for financing continue to increase mainly due to higher loans for the purchase of residential properties and the extension of personal loans.

Presently, HSBC has some three million global customers worldwide. About 800,000 are from Asia, notably in Hong Kong, Singapore, Malaysia, India, Indonesia and the Philippines.

HSBC is looking to increase the Asian premier market share to a third of the global premier customer base by focusing on the mass affluent market.

In 2008, there were 35 million people in the mass affluent category. (People under this category have disposable assets worth some US$100,000 each.) This figure is expected to grow by 4% to 5% per annum.

Cheang said the banking sector was now merely going through a cycle in the economy.

She noted some unique characteristics of Asia which HSBC planned to tap.

First, Asia’s high savings rate, which is about 29% of gross domestic product, and second, the rising affluence of the middle-class group in Asia, which is still growing.

Cheang said regionally, HSBC Premier planned to capture market share through four main pillars – its international branding, international services, credit card reach and wealth management services.

“When you’re a HSBC customer here in Malaysia, it’s no different being in a HSBC branch in Britain or Hong Kong. Rest assured that when you enter an HSBC branch in Britain, they already understand all your requirements as if you were in Malaysia,” Lim said.

He added that with 43 Premier banking service locations around the world, HSBC offered an almost seamless experience.

“Instead of consumers just doing deposits, we would like to introduce more wealth and financial planning services,” said Cheang.

Lim said HSBC was looking to change the present retail banking culture from one of being very product-centric to a more service-oriented one.

AIG posts first profit in 7 quarters! Job losses slow, jobless rate dips!

There are lots of goods news from US. First, AIG posts first profit in 7 quarters. Second, Obama signs 'Cash for Clunkers' extension into law. Third, optimism of US Industrial Companies Jumps: Survey. Forth, job losses slow, jobless rate dips.

These are really encouraging news. As a result, US stock markets jumps on Friday. I think these good news could be able to fuel our KLSE to a higher peak. If these good news still can't able to move our stock market higher, then i am going to trim my portfolio, as a correction is very likely to take place soon.

For the last few days, the whole market had been overshadow by the worry of US jobs data. Now it is proven that the worry is unnecessary. Job losses slow, jobless rate dips. This is really a positive indicator.

Today, I am really happy that learn that more and more financial institutions are promoting call/put warrants. They are launching put warrants too! Great, this will certainly make our stock market more interesting. AmInvestment is going to launch more call/put warrants, so is Kenanga. But do remember, warrants are not suitable for all investors. It is a risky financial instrument for those without proper understanding and knowledge about the financial instrument.

Lately, i have been struggling to choose a side to stand whether the market is going to edge higher or there is going to be a short term correction. This is what i do, i monitor my portfolio more closely, once the uptrend is broken then i will immediately sold most of my portfolio. At the same time, i try to list down the stocks that i would like to have if a newly-energized uptrend is born.

Ok, enjoy your trading.

To be a millionaire, it is a matter of preparation, preservation and passion!

GOon

Jobless Claims Fall More Than Expected

The number of U.S. workers filing new claims for jobless benefits dropped more sharply-than-expected last week, a government report showed on Thursday, boosting views that the labor market and the economy were stabilizing.

Initial claims for state unemployment insurance benefits fell 38,000 to a seasonally adjusted 550,000 in the week ended August 1 from 588,000 the prior week, the Labor Department said.

A Labor Department official described the period under review as "uneventful" and said it appeared the distortions to the weekly data caused by the auto plant closures were out of the way. Analysts polled by Reuters had forecast new claims to edge down to 580,000 last week from a previously reported 584,000 count.

U.S. stock index futures extended gains on the data, while government bond prices slipped.

"The claims data are another sign that the recession could be behind us," said Kevin Flanagan, fixed-income strategist at Global Wealth Management, Morgan Stanley in Purchase, New York.

"I am optimistic that a recovery is in the process of beginning, but we will need to see continued improvement in claims going through (below) the 500,000 level before the consumer is willing to come on board and be part of the recovery."

Analysts said the report also bodes well for July non-farm payrolls data due on Friday.

"We should see a decline of 300,000. It's a big step in the right direction in the labor market," said Lindsey Piegza, market analyst at FTN Financial in New York.

A Reuters survey forecast 320,000 workers lost their jobs last month, which would be the least for any month since September when employers cut 321,000 jobs.

The jobless rate was seen climbing to 9.6 percent -- the highest since June 1983 -- from 9.5 percent in June, as employers remain reluctant to hire because of depressed demand.

Labor market weakness is casting a shadow over the economy's recovery prospects from the worst recession in over 60 years as high unemployment exerts pressure on incomes, severely curtailing households' spending capacity. Consumer spending is the main driver of U.S. economic activity.

Stimulus Helping?

Christina Romer, chairman of the White House Council of Economic Advisers, said on Thursday the $787 billion U.S. stimulus program was stabilizing the economy despite unacceptably high job losses. But she said it would take time for the labor markets to improve.

"Unfortunately, even once GDP (gross domestic product) begins to grow, it will likely take still longer for employment to stop falling and begin to rise," she said.

In a sign that the trend was toward a moderation in the pace of layoffs, the four-week moving average for new claims fell 4,750 to 555,250 in the week ended Aug. 1.

The four-week moving average is considered a better gauge of underlying trends as it irons out week-to-week volatility. The moving average has declined for six consecutive weeks.

However, the number of people collecting long-term unemployment benefits rose by 69,000 to 6.31 million in the week ended July 25, the latest week for which the data is available. The so-called continuing claims had declined for three straight weeks. The insured unemployment rate was unchanged at 4.7 percent for the fourth straight week.

Uptrend getting tired?

These few days i feel that the current uptrend is getting tired. I don't know why i feel so, maybe it is because the market doesn't respond the away i expect it to be when there are good news released. That's why i think there might be a correction coming. In my humble opinion, if the correction is to come, it would be a short one, shorter than the the previous June-Mid July correction.

I am not holding any high gearing call warrants right now because i worry may not able to respond to the correction fast enough if the correction is to come. So i am planning to start to trade high gearing call warrant after the correction has come.



Last few days, Airasia dropped a lot but i really think that is a healthy correction and that's nothing to be panic. Profit taking is normal after such a big rally in the last few weeks. It is trading at its support too.

As you can see, the volume is decreasing since last Tuesday. It is always better to buy a stock when trading volume is low compared to when it is high. When trading volume is at peak, that means that a correction is around the corner. Looking at the chart, we can see price would be always at a peak when the trading volume is at the highest. What must we do? Isn't it better that we buy when the volume is low?

I will be cautious if i find the price is moving upward and the volume is not. It mean that there are getting less buyers willing to buy at that higher price and a correction is around the corner.

Good luck, guys.

GOon