| 03/11/2003 Wednesday 06:10 am Wednesday 06:10 am One more down day in Wall street as the certainty that the Americans will attack Iraq no matter what the UN security council voted caued a gloom that is as thick as the smog of LA and our own haze in the late 1990s. There are no signs that the selling is letting up but the pace of the decline has slowed somewhat with some interest shown in blue chips that were battered this week. IPOs which are coming on-stream are expected to be hit by lack of interest. Today could see some action on Axis System which may see some volatilty due to size of offer and negative sentiments on one side and on the other end of the spectrum by interest shown by some funds. Tuesday 7:40 pm Some signs of buying apears towards the late afternoon and with the market now deeply oversold, a bounce may follow this week. DBS, UOB, OCBC are seeing some supports at recent lows. ST Engineering attractive yield of 11.2% may see more interest ahead. IPO listing Axis has some funds buying and could see some support but issue size may cap upside. Monday 9:00 pm A bear trend has gripped the market as an early attempt to rally saw sellers hammering banking stocks such as DBS and UOB downwards. Its a tough environment when the US is adamant on attacking Iraq despite pleadings from various nations in the security council for more time for Iraq to get rid of its WMD. Time seems to be a precious commodity to the Bush administration, more so than Iraqi lives as they rush to set March 17 as the date for a vote on a fresh UN resolution backing a war should Iraq fails to get rid of all its weapons of mass destruction. On the N. Korean firing of a missile, the US gave a luke-warm response but the Asian markets took it rather badly and sellers were out in full force. Axis System, an IT solutions provider issued 42.9 million shares at $0.31. PE at 12.4 is close to international levels and the company compares itself to Unisys Corp (US) and Banqit AB, Sweden. The company has a monopoly on IT solutions for the financial industry and profit margin is high. However, earnings are tapering off and with market sentiments weakened by war worries, the issue may see lower interest than the earlier issues. Accord Customer Care solutions -ACCS- is the next large issue at $0.27 and although some funds are reported to show interest, it is expected to see lower subscription rates due to current weak sentiments for IPOs. The nearest competitor is Semi-tech which is now languishing at $0.16. 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. 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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