Weak mkt sentiment ahead of the possibility of US military war against Syria & the effects of the Fed Res Open Mkt Committee meeting scheduled on 17/9 & 18/9 respectively on its tapering of stimulus policy. Investors remain cautious n took profit off the table for the weekend.
Syria strike (if go) will be limited, so long Israel and Iran not involved. note U.S lead allies do not suuport the opposite either. rather, U.S and allies have long awaited the opportunity to topple Iran, believe Iran would not risk "creating" that excuse
QE is an issue much much more complex... v shall c very soon
kps and puncak, so long the water deal goes on, it will not short of opportunities... any news can spark a rally juz as v seen these few days
However next week trading is at a higher risk with US Fed Open Mkt Committee meeting around the corner scheduled for 17/9 & 18/9 & also the possibility of US military action against Syria after the Congress meeting.
Unluckily if u take position next week u might be caught in the 'crossfire' & the risk of getting 'burnt' is exceptionally high. It would be much safer to enter the mkt after stabilising of the outcome of FOMC meeting & the Syria war....... then it is the right moment to go 'shopping'.....during the MEGA SALES period...with plenty of choices bidding at a steep discount.
no contra no worry. wanna play contra on the water deal of cos subject to market risk. btw, whether there will b a mega sales remain to be monitor. there is equal chance of mild correction only; according to final qe decision.
I predicted mega sales might b just around the corner & decided not to take position. Maybe after the Fed Open Mkt Committee Meeting on 17/9 &18/9 might go for bottom fishing.....hopefully the SHARK has disappeared after the wave hv retreated.
I think that the United States never intended from the beginning to launch any type of military activities against Syria. Barack Obama doesn't have to go to the Congress or to anyone else to get permission to do anything. The American presidency has become something of an equivalent of like a crime boss, where he can kill with impunity and he does not have to worry about any kind of a backlash.
Should take profit for the weekend, our mkt already uptrend for 2 days n fully stretched n due for correction. Furthermore nxt week uncertainties will come into the picture n investors prefer to be on the sideline n waiting for direction. This is my own opinion. Good luck.
Next week how to hold the boat when a tidal wave is expected to hit our mkt, the boat will eventually capsized. Instead v shld accelerate n sail back to the nearest beach for safety.
Only after the wave hv subsided v can go back to the sea for bottom fishing for variety of fishes..........salmon...............mouse grouper fish.......7 star grouper fish......a bumper harvest.
SHAH ALAM: Negotiations between the Selangor and federal governments on the restructuring of water services industry in the state have reached a "breakthrough", according to Selangor Mentri Besar Tan Sri Khalid Ibrahim.
"We are close. So close that I can now make an announcement that we will complete by year end, and statements on this matter from both the federal and state governments are no longer contradicting each other," he said.
Both federal and state governments have set Dec 31 as a target date to conclude talks.
Khalid said a letter from the Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili, dated Sept 9, stated that they were confident the water services industry restructuring exercise would be completed before Dec 31.
The letter also stated that the Ministry had considered the arguments and facts from the state government, said Khalid.
Khalid expressed his gratitude to Dr Ongkili, who gave a personal commitment to ensure water management would be handed over to the state government in accordance to the Water Services Industry Act 2006.
Khalid said there were two "sensitive areas" in negotiations, which are the valuation of the water concessionaires and the modus operandi of the takeover.
"We see some differences in perception of the valuation, but it is not a situation that will break the arrangement," he said.
On the modus operandi of the takeover, he said the state government is trying to convince the federal government to agree that the water assets and management would be parked under a special purpose vehicle owned by the state government.
The state government had made three bids to take over water management from all four water concessionaire companies in Selangor.
On Feb 20, the state government made a RM9.65bil offer to take over Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), Puncak Niaga Sdn Bhd, Konsortium Abass Sdn Bhd and Syarikat Pengeluar Air Selangor Holding (Splash).
Previously, the state government in 2009 made a bid of RM5.7bil but was rejected by all parties. A subsequent offer of RM9.2bil was made in 2011 but was rejected by Puncak Niaga and Syabas.
The federal government holds one golden share in Syabas through the Minister of Finance Inc.
Also part of the talks is the development of the RM3bil Langat 2 water treatment plant, which is a federal project but its construction has to be approved by the state government under the Land Code. The plant will receive raw water from Pahang via an underground tunnel, which is almost complete, and can process 1,130 million litres of water per day (MLD).
U.S look to postpone congress vote for limited syria assault, QE event has been closely scrutinise to the point global markets broadly accepte some level of reduce will happen; on the back of US economy recovery. as EU is recovering too, it's a matter of confident towards coming 6 months economy growth, that incl political stability.
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iafx
4,632 posts
Posted by iafx > 2013-09-06 10:52 | Report Abuse
so far the 6c consolidation is still mild... not sure what's gonna happen next :D