| 03/06/2003 Thursday 07:30 pm Thursday 7:30 pm It was a day best forgotten. UOB, DBS and other blue chips were clobbered. NOL shows signs of strength and may see test of 1.00 and former highs. Citiraya too is well supported and may benefit from being seen as a proxy to the surging gold market. The US is now in getting ready for war as General Tommy Franks and the hawkish Rumsfeld meets with Bush for last minute assessment before going into the clearly one-sided battle. There could be an initial dip on signs of the first shot but do not discount a technical rally after this as the markets have fully discounted the war. Wed 08:30 pm With the drop in the Dow and Nasdaq expected tonight, more weakness could be seen in heavy weights such as DBS, SIA and other blue chips. Oil price is soaring, especially in NY Mercantile exchange with April contract now above US$37 per barrel. Gold is up too and the US Dollar moved below $1.10 against the Euro currency. The Iraqi crisis now hinges on the next key Blix report which will be out this Friday and until then, the uncertainty could stall the markets which is deeply oversold. Many players are staying out until the geo-political picture is clearer. The next day's trading would see a focus on IPO debunte - JK Technology which is oversubscribed by 10.6 times. Priced at 9 times PE, the small size of the issue could work in its favor. Market cap is $10.6 million which makes it one of the smallest issue to be listed in SGX. Tuesday 11:30 pm The Dow and Nasdaq is falling on news of a fresh confrontation between US and North Korea aircrafts near the Korean Peninsular and US deployment of 60,000 more troops to the gulf area signalling a determined Bush to wage war come what may. With the bombing of Basrah and other towns near the no-fly zone, some are predicting that the US and UK could go in early without any UN backing. Even Iraqi destruction of its missiles could not stave the hawks of pentagon and to bet against war breaking out is going against the odds. Gold moved up by $5 and hedging in gold related stocks may be better bets against this backdrop. CitiRaya is the only proxy to gold in SGX and target stays at 0.605. Previous commentaries DISCLAIMER This is a free site and all views expressed here are not an inducement to trade or invest. The reader should be aware that investment and share trading have inherent risks and the author shall not be responsible for gains or losses incurred whatsoever. |
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