Is confidence slowly returning to our bourse? Or was this simply a reaction to Wall Street positive sentiment following the Temasek deal and the buzz of a rescue plan from the major central banks?
An important reminder is that the trading volume in Bursa is still relatively thin, and any rally is likely going to be short-lived as investors are generally contented to lock in small returns.
The plantation stocks did well today, which is still the most defensive play going into 2008. Some dealers cited the flooding situation in East Coast Malaysia, hurting palm oil production, for the rising stock prices today.
This is one of the commodity stocks that will do well, whether production goes up or down. If production is down, the price goes up. If production is up, the price softens and there will be more creative utilisation for the commodity, biodiesel production being the obvious one. And this is why plantation stocks get an overweight rating from most houses. I can't see them going wrong with this one.
Other stock to watch this coming week: AIRASIA, a must-have at current price range. Get it when the big sell down stops. How do we know? Pay attention to the volume.
Have a good weekend.
An important reminder is that the trading volume in Bursa is still relatively thin, and any rally is likely going to be short-lived as investors are generally contented to lock in small returns.
The plantation stocks did well today, which is still the most defensive play going into 2008. Some dealers cited the flooding situation in East Coast Malaysia, hurting palm oil production, for the rising stock prices today.
This is one of the commodity stocks that will do well, whether production goes up or down. If production is down, the price goes up. If production is up, the price softens and there will be more creative utilisation for the commodity, biodiesel production being the obvious one. And this is why plantation stocks get an overweight rating from most houses. I can't see them going wrong with this one.
Other stock to watch this coming week: AIRASIA, a must-have at current price range. Get it when the big sell down stops. How do we know? Pay attention to the volume.
Have a good weekend.
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