Dear fellow traders, 

Due to work commitment, I was not able to diligently update my posting. Having said that, following the extended correction by KLCI, like many my picks suffered set back and some of the paper profit were wiped out. Nonetheless, time of correction and consolidation offers opportunity for buy in of good solid counters

_____________________________________________________________________________

Macro View: (~) US market lacks cataylst for upwards movement. It remained mostly sideways and subsequently close lower following fears of September rate hike. The Greece debt crisis failed to reach a compromise resolution despite numerous talks between parties. IMF walked out, Merkel stepped in then walk out. For ac country in debt, Greece is not playing its role in honouring its payment obligations. China market plunge following the rejection / deferment on joining MSCI only to recover strongly on Friday. Oil hovered around USD59 and USD63 respectively for WTI and Brent.

Potential Risk in Global / Domestic Market: (-ve) Locally, FBMKLCI close at a low of 1735 last week due to the extended fund outflow and bearish sentiment result of weak corporate earnings. The political instability and weakening Ringgit further worsen the already bearish sentiment. Trading volume on KLCI is low at around 1 billion. I believe to buy on weakness, specifically those that I have mentioned in the past postings. 

Contra Picks: Sendai (TP RM0.89)

The breakout in volume and the resistance of RM0.85 shows further uptrend in the coming week. I am of the view it can challenge RM0.90 and go further upwards. I would be happy to take contra at RM0.89. Please trade carefully and observe the movement before entering.

Short Term Picks: Signature (TP RM3.00)

This strong counter has performed amazingly well in the weak climate and achieve new high each week. Since I first higihlighted the counter, it has charge upwards. Although it has yet to reach RM3.00, I believe it is a matter of time provided there is no major contrary reason from external environment.

Mid Term Picks: LCTH  (TP RM0.55)

I like LCTH due to the sector it is in but more importantly, due to the turnaround in the business of the company. The market sentiment has dragged down the price but it is valued at a undemanding price and may look to enter if the price drop further. Anything below RM0.48 is  a safe bet. 

Long Term Picks: Hiaptek (TP RM0.55)

There are talks of import levy to be imposed on imported steel. If this is true, it is good news for local steel makers who has lost a lot of money to importers. Having said that, this is only a market talk and rumour. Until an official announcement by the government, it is still an unknown. Hiap Tek is one of the more resilient steel company. This industry is no longer as viable as before. I will be cautious optimistic on this trade.

Food for thought: A holistic view will save the heartaches and missed heart beats.

May good fortune come your way!

Disclaimer: This is not a recommendation to trade. It is merely the expression of the author's personal opinion and shall not be held responsbile for potential gains or losses executed by readers.