E_Remisier commenting on Bursa Malaysia

Hi! I'm E_Remisier, your friendly on-line remisier for trading of shares in Bursa Malaysia. As the equity market is rapidly moving towards internet trading, an on-line internet presence is inevitable.

In this website, I hope to provide informative and invaluable insight into the trading of shares in the KLSE with the objective of maximizing investors' return.

Real Time Market Indices:

Current KLSE market outlook (18 - 22 Dec): 

The heavy beating in NASDAQ and Dow Jones will continue to cause the downslide in our market. Looking ahead, the shortening of the settlement period from the current T+5 to T+3 on Dec 20 is viewed negatively by retail contra players. In the short term, retail contra players will be poised to stay in the sideline as they view 3 days as too short a settlement period for speculative plays. In addition, with the market closed on Christmas (25 Dec) and Hari Raya (27 - 28 Dec) for holidays, it seems that this year, we will not see a traditional year-end closing rally. 

Stock Picks

Stock pick for the week (10 - 14 July): Rotational play on the week of 10 July 2000 will focus on telecommunication stocks TIME ENGINEERING and SAPURA. With news abound on the listing of TIME DOTCOM, any positive fresh leads (eg. foreign strategic partner) will push both companies share price upwards.

Stock pick for the week (17 -  21 July): It is expected that PHILEO will continue its uptrend on the early part of the week. News of AVENUE (more than 18% shareholding in PHILEO) rejecting the 6 PHILEO to 1 MAYBANK share conversion will effectively remove the RM2.50 price cap on PHILEO. Assuming if the conversion is changed to 4 to 1, and MAYBANK share price stays above RM15.00, PHILEO will be worth around RM3.75 a piece.   

Stock pick for the week (24 -  28 July): News of a potential bumiputra businessman taking up a stake in MAGNUM is expected to continue to push its share price upwards early on the week. However, be cautious that share prices on the KLSE could be adversely affected by downward movements in the Dow. It is advisable to sell on rally.  

Stock pick for the week (31 July -  4 Aug): Recommended to buy on weakness on 2 of the top losers last week, technology heavyweight UNISEM and MPI. Both shares are in the oversold position and has dipped to its 3 months low. 

Stock pick for the week (7 - 11 Aug): Recommended to accumulate on weakness for gaming counter RESORTS. Apprehension over an ill-timed acquisition (RESORTS has advanced US$52million to Star Cruises to help fund its takeover of NCL), combined with an expected lackluster earnings continue to push the share price of the casino-related cruise-line operator down. It has declined from its year high of RM15.60 (11 Feb) to RM8.50 (4 Aug). In total, RESORTS’ share price has declined RM7.10 (a massive fall of 46%). 

With the expected listing of Star Cruises in the Hong Kong Stock Exchange, RESORTS debt funding in this acquisition exercise will be reduced and replaced by equity funding. This will decrease RESORTS gearing and its share price will be poised for a rebound as earnings start to pick up. 

Stock pick for the week (14 - 18 Aug): This week we will look at another gaming company B-TOTO. B-TOTO is the leading Toto and 4D forecasting company with over 680 outlets throughout Malaysia. Its share price has slid from its 3 months high of RM9.20 to a 3 months low of RM5.85. For the past 5 weeks, B-TOTO share price has not shown further downslide and has stabilized at around RM5.80 to RM6.00.  Recommended to accumulate on weakness.

Stock pick for the week (21 - 25 Aug): Last week (14 - 18 Aug), B-TOTO bought back 679,000 of its own shares for a total of RM 4.3 million, with prices ranging between RM6.25- RM6.35 a share. I believe B-TOTO is fairly valued at this price level. Recommended to continue accumulating B-TOTO on weakness.

Advice for the week (28Aug - 1 Sep): Instead of the usual stock pick for the week, this week I'll focus on 2 warrants that will be expiring soon (Nov 2000): RENO-W and RENO-W2.

Many punters are still buying RENO-W and RENO-W2 with 3 absurd reasons:

1) It's dirt cheap at 7 sen a piece. Yes, I agree it's cheap. Soon, it will be worthless.

2) I can double my investment easily. 100 lots: RM7,000 can turn into nearly RM14,000 if RENO-W rises from 0.07 to 0.14. Yes. But, RM7000 can also go down the drain come November. Any of the punters out there still remember buying AMSTEEL-W at 0.005 (not 5 sen but ½ sen!!). Dirt cheap. But, it has expired and has turned worthless.

3) There is hope that there will be an extension of the exercise/conversion date. Hoping against hope.

My advice is not to buy these expiring warrants. You will not double your investment and you will lose your money! Look at the intrinsic value of these 2 warrants. RENONG will need to rise by RM2.24 for RENO-W to have any value. That's more than double it's current share price. No reasonable investors should buy these zero-value expiring warrants.

Advice for the week (4 - 8 Sep): Expect a mild technical rebound from last Friday's (1 Sep) huge losses. Do not chase this short-lived technical rebound. Sell on rally. 

Advice for the week (11 - 15 Sep): This advice is similar to the one I made 2 weeks ago. Avoid low-priced stocks like IDRIS, MBFCAP and INTRIA-WA. IDRIS and MBFCAP is in for a major capital reduction exercise and INTRIA-WA is expiring soon.  

Advice for the week (18 - 22 Sep): Accumulate bluechips / good counters on weakness. They will be the first to rebound. My personal picks: GENTING, BJTOTO, and UEM.   

Advice for the week (25 - 29 Sep): Buy UNISEM on weakness. Chip makers MPI and UNISEM recorded new lows for the year after Intel issued warnings on possible lower than expected earnings. Come Nov 6, UNISEM along with NIKKO & MSNIAGA will replace HICOM, L&G and MBFCAP in the KLCI (Composite Index).

Advice for the week (2 - 6 Oct): Accumulate UEM on weakness. UEM is the holding company of PLUS, which main asset backing is the North-South Expressway. Currently, UEM is trading at its 3 months low of 5.95.  

Advice for the week (9 - 13 Oct): Accumulate gaming counters (GENTING, RESORTS, TANJONG, MAGNUM, BJTOTO) on weakness. Jitters over the possible hike in 'sin' taxes in the next budget (27 Oct) could push down the share prices of these good, high-profit companies. Excellent chance to buy on weakness.

Advice for the week (16 - 20 Oct): Sell on rally. Remember to take profit and liquidate all positions before 27 Oct (New budget announcement). 

Outlook for the week (18 - 22 Dec): The heavy beating in NASDAQ and Dow Jones will continue to cause the downslide in our market. Looking ahead, the shortening of the settlement period from the current T+5 to T+3 on Dec 20 is viewed negatively by retail contra players. In the short term, retail contra players will be poised to stay in the sideline as they view 3 days as too short a settlement period for speculative plays. In addition, with the market closed on Christmas (25 Dec) and Hari Raya (27 - 28 Dec) for holidays, it seems that this year, we will not see a traditional year-end closing rally. 

Comments on CLOB shares

Counters with a large percentage of share previously traded in CLOB will be worse hit. These include (not exhaustive): Mulpha, MBF Cap, MBF Holding (currently suspended), Promet (suspended), Magnum, Renong, MRCB and L&G.

However, the effect of the release of CLOB shares on the market will not be immediate. The cumulative effect will be unveiled over a 3 to 6 months period, as CLOB investors get hold of complete saleable lots (1000 shares).  

IPO Watch

Initial Public Offerings or IPOs are shares put forward by companies prior to listing in the stock exchange for the general public to buy. Only companies with paid-up capital which satisfy KLSE listing requirements, with a good 3 to 5 years earnings track record will be allowed to list in the KLSE. To subscribe to new IPOs before they are traded on the KLSE, do check with the nearest stock broking firm in your vicinity.

Click here: Initial Public Offerings (IPOs) 

To check on new IPOs that will start trading on the KLSE in the coming months. 

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Contact Information 

To obtain more information on the opening of a MCD (Malaysian Central Depository) and trading account to facilitate trading in the KLSE, please feel free to contact me:

Postal location:  Johor Bahru, Malaysia.

 

Electronic mail:  e_remisier@yahoo.com

Alternatively, you could just submit your personal information below and I'll get back to you as soon as I could.

Disclaimer: Data and information is provided for informational purposes only. It is not a solicitation to purchase or sell any security. Whilst utmost care is taken, I shall not be liable for any errors or delays in the content, or for any trading actions taken in reliance thereon.