Warning. Be careful now.

If you have taken a good ride with the recent recovery of second board shares, may be it is time to be more careful. If there is anything you want to sell, do it before 30 June 2005. Or may be at the safe side do it now, before 29 June 2005.

Why?

Window dressing. All listed companies are required to announce their financial performance quarterly under the Bursa Malaysia Listing Requirements. Every fund managers, banks and stockbrokers wants better closing share prices on 30 June 2005. This will reflect lower losses or higher profits in their quarterly financial reports. It is of everyone interest to keep the prices high and the momentum going until 30 June 2005.

Considering the magnitude of this quarter’s market losses that affect many banks, fund managers and stockbrokers, most houses are desperate to show a better number. There is a possibility that the prices might fall right AFTER the end of this quarter.

I may be wrong, but just watch.

Another Four

Another four stocks hit several limit downs for the last few days.

11. Ngui Kee Corporation (M) Bhd
12. B.I.G Industries Bhd
13. Hwa Tai
14. Gadang Holdings Bhd

We know current sell down on second liners is primarily due to the pulling back of share financing lines by stockbrokers and bankers. Pressure was on lower liners. Every cut of lines or exclusion of some stocks as "marginable" stocks creates another round of limit down.

Yesterday 5 leading bankers stood out to vow continuous supports on share financing. The effect? We will have to wait and see. It is probably time to study and shop for cheap stocks. Don't throw your money all in one go. Buy in stagger over a year should be the best strategy.