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.
