[ENGLAND/SPAIN BOOKIES LOST MILLIONS, STOCK BULLS PROFIT BILLIONS, DOW JONES RALLY TO A RECORD HIGH OF NEAR 17,000 BY DR. MOHD NAZRI KHAN]
My quick take on Top TEN MARKET NEWS and TOP 30 STOCKS to buy this Monday.
1. The whole global stocks are on steroid. Climbed to another amazing record territories as reflected by MSCI All World which hit a six year high and Dow Jones Industrial which shot to all-time-high of nearly 17,000 level.
2. The Federal Reserve twin bullets i.e. bullish assessment of the economy and ultra-low interest rate are the biggest bullish driver for the stock market.
3. The Fear Index (Wall Street Volatility Index VIX) fell to the lowest levels since February 2007 suggesting high complacency and short term bubble in the global market, induced by USA overbought rally and Federal Reserve loose monetary policy.
4. The whole world market miraculously ignore the continuous violence in Iraq and Ukraine-Russia tension. Barack Obama told Congress that he does not need their approval for any action in Iraq and Russia, suggesting more uncertainties in Iraq and Russia. As a result, brent crude oil settled at a nine-month high of USD115.06 a barrel. Gold however benefited the most from the geopolitical tension after hitting a two month high, up 3.1 %, the biggest one-day gain in eight months.
5. FBMKLCI staged its one-month-best-session on Friday, 20th June, shot 10 points to close above 1880 level. After carving out a tight 1860-1880 trading range over five weeks, FBMKLCI finally break above the 1880 resistance level and now looks poised for a retest its all-time-high near 1890 level. Ringgit also hit the strongest level against USA Dollar (3.198, highest year-to-date) before depreciating lower to 3.2190.
6. Local technology shares is the strongest (up 2.1% w-o-w), raising the prospect that solid USA economy may benefit the most to local exporters and tech stocks with strong rallies seen in key technology blue chips such as Unisem, Globetranoics, MPI, Inari and Vitrox Berhad.
7. Bank Negara is expected to raise the interest rate (OPR) by 25 basis points (a quarter of one percent) from the current 3.0% to 3.25% by the next MPC meeting scheduled on July 10. The Malaysian economic growth (6.2%) in the first quarter of this year is the fastest in one year and therefore has fuelled expectation that interest rates in Malaysia has finally bottomed.
8. Facebook suffered its worst server crash when it was unavailable for half an hour suggesting crazy global demand and over capacity. Facebook lost USD1mil as the outage affected the website, smartphone and tablet apps worldwide. Facebook price however continue to rally strongly to USD65.
9. Last but not least. Poor old England are ON THE VERGE of being knocked out of the World Cup after an embarrassing loss to Uruguay, despite two incredible misses from Wayne Rooney. Spain dream also crashed when they lost to the fierce Chile. Both England and Spain are global bookies favourite. Loss and bad national mood can spill over into the England/Spanish stock market and can wipe millions off the stock market. Both FTSE 100 and IBEX Index have narrowly retreated from the six year high of 6,900 and 11,200.
10. Overall, expect bulls to dominate Bursa and FBMKLCI should eventually march higher towards its the psychology 1900 level by July 2014. Top FIVE strongest sector in order : Technology, Trading Services, Construction, Properties and Plantation. Worst sector is Consumer and Industrial Product.
Top 30 Stocks Buy List : MPI, Unisem, Globetronics, Vitrox, Penta, Inari, EForce (Technology) Hapseng, Pestech, IHH, Faber, Salcon (Trading Service), Pintaras, Melati, Protasco, Crestbuilder, Jaks, Mitra (Construction), IJMLand, Daiman, Tambun, Matrix, SPB, Menang (Properties), UnitedPLant, SarawakPLant, GentingPlant, SOP, IJMPlant, KMLoong (Plantation).
Good luck.
My commentary in the media :
http://www.bernama.com/bernama/v7/bu/newsmarkets.php?id=1048116
http://www.theedgemalaysia.com/business-news/295540-klci-week-ahead-klci-expected-to-march-toward-fresh-record-high-on-bullish-global-sentiment.html
http://www.thesundaily.my/news/1088560
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