Daily Updates
| US Dow Jones* | +119.01 |
| US NASDAQ* | +31.06 |
| Nikkei | -28.61 |
| STI | Slightly up to Flat |
| HSI |
*- Closing Figures
Morning,
US markets closed higher on the month as comments by Bush and Ben coupled with decent factory goods order helped push the market higher ahead of the long weekend. Bush suggested some plans to help homeowners who have overextended themselves on the mortgage sage. However Fed was more abstract, it didn’t say he was going to neither cut rates nor imply he’s not cutting rates, just that he will take the necessary actions needed. Investors took no news as good news and rallied. Though the Fed probably doesn’t want to cut rates, it might have to due to pressure from various sectors and fear of a recession, but I would not be surprised if he cut discount rates again instead of a rate cut.
Locally we rallied in anticipation of US, as news of Bush speech leaked out. Some counters to note is Labroy which dipped to 1.98, simply said for those who wish to buy on dip make sure its at the support ard 1.80 or so, if not your not getting a good buy. ML also recommended some blue-chip counters like Cosco, Kep Corp and SIA and downplayed Chartered, M1 and SPC.
So what’s my view? With US on holiday tonight and we rallied last week on US, today’s supposed gain was already factored in last week. We should open on a high note and maybe end slightly higher or flat unless we can get some catalyst to push us up further.
For those who have sold, don’t worry and hold jump into the frenzy again. I continue my stance on selling now and buying in Oct mainly what was said last week in US would take a long time to implement but the losses have already occurred and we’re just waiting for them to announce it.
Conclusion, sell on strength for now and try not to over expose your position, hold 50% cash and wait for Oct. If you wish to contra, then wait for dips like last Thursday and sell on strength like last Friday.
Trading plays –
News Headlines
Cosco, KepCorp, SIA top Merrill's Sept choice list
Harvard economist warns of recession, urges rate cut
SIA, Temasek buy 24% stake in China Eastern
CDOs unlikely to hit DBS Bank rating: S&P
DBS Indonesia loses primary dealer licence
CitySpring completes A$1.2b purchase of Basslink
China EnerSave plans $29.5m rights issue
MI-Reit to buy warehouse for $18.3m
Poh Tiong Choon unit sells land for $6.9m
WesTech places 22.9m shares to raise $6.7m
Rotary buys 40% of M'sian firm
OSIM ups stake in Global Active