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Showing posts from September, 2012

Budget 2013 and Sin Stocks

What if  Sin stocks continue to outperform the market in 2012 – up 14.5% YTD versus a 5.7% gain on the FBMKLCI index – as they may be spared excise duty hikes for another year given that the 13th General Elections will now be held after Budget 2013 scheduled on Sep 28. Sin stocks have rallied since Budget 2012 was announced last Oct when the government surprisingly did not raise excise duties on beer and cigarettes. Few had expected the government not to increase excise duties on cigarettes as the tobacco industry had not been spared an excise duty hike since 2002. In Oct 2010, the government raised excise duties on cigarettes by 3 sen/stick (+15.8%) compared with only 1 sen/stick or 5.6% in  2009.On the other hand, the government has not raised excise duty on liquor for the last six years. At MYR740 per hectolitre, Malaysia’s beer duties are the second highest in the world and any further increase on already high beer duties will have a negative impact  on duty collection as evident …

Steady Dow. Weaker FBM KLCI - Weekly Technical

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FBM KLCI – Key Bearish Engulfing high seen at 1,655.49. SELL!Support: 1,582 to 1,619 Resistance: 1,623 to 1,655
Strategy:
  The FBM KLCI fell 19.25 points to close at 1,623.70 last Friday. The local market fell on fairly broad-based blue-chip selling activities, especially on Thursday. Volume remained low at 0.84b to 1.03b shares.

The weaker support areas for the FBM KLCI are in the 1,582 to 1,619 zone. The key resistance levels of 1,623 and 1,655 may see some heavy selling activities. The FBM KLCI consolidated in a range of 801 to 936 from Oct 2008 to Apr 2009, but broke above its resistance of 936.63 (Wave
a/B) in Apr 2009 and surged to a previous all-time high of 1,597.08 on 11 Jul 2011. Its intermediate Wave b/B low was 836.51. We have traced out a Wa ve C/B (of the Flat 3-3-5 variety) rebound phase. We have revised our Wave Count of a Wave iv/B correction to 1,310.53, and the extended Fifth Elliott Wave (EW) of the major Flat v/C/B-leg correction from the 801.27 low  …

Malaysia General Election 13 : Najib hints at November polls

Datuk Seri Najib Tun Razak has strengthened speculation that the next Malaysia general election will be held in November. With the Prime Minister scheduled to unveil the National Education Blueprint on Sept 11 and Budget 2013 on Sept 28, talk in political circles is that the general election will likely be held in the second last month of the year. The Barisan Nasional chairman's “one-on-one” meetings with component party heads on Aug 28 to discuss their candidates' list have also given credence to talk that the polls will be held then. In his strongest hint yet, the Umno president brought his favourite number 11 into prominence during the joint opening of the party's Kinabatangan, Sandakan, Batu Sapi, Beluran and Libaran delegates meeting here. Source: TheStar)