Friday, June 03, 2005

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.