Sunday, January 13, 2008

Hubba Hubba

KLCI ends +1.7% at new record closing high of 1516.22 in heavy volume of 1.76 billion shares led by gains in finance, construction and shares of government-linked companies. Gainers edged out decliners 461 to 415 as pre-weekend profit taking narrowed gains, dragging KLCI off its intraday and all time high of 1521.56. Benchmark tipped to trade in 1500-1530 range next week. A combination of factors led to the market's rise, including the ringgit's continued appreciation, buying interest from foreign funds and continued support from local funds in what many are referring to as a pre-election rally. Ringgit last traded at 3.2610 against the US dollar, levels last seen in November 1997. Speculation government will call a general election in 1H08 continues to drive buying interest in government-linked companies.

Heh.. heh.. last friday. I did collect AirAsia, thinkin that it would rebound soon. My cut loss level - 1.55. The main problem with this counter is program sellin by foreign funds - because wrong decision in speculative crude oil hedging - With oil price touching US$100 per barrel and AirAsia’s short call option at US$82.60 per bbl, foreign investors sold the stock due to what some felt was speculative hedging. AirAsia has since covered its short positions with new long call options which should cover it at least until June 2008. AirAsia has since covered its positions
by buying Call options for 350,000 barrels at US$82 per bbl and also 200,000 bbl per mth at US$79.50 per bbl between January to June 2008. It also said that it has room to negotiate on the Short Call options every 6 months.


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