There was the Elephant walk, the Penguin dance, now beware the march of the Bears.
Google Bear Stearns if thou hath been too absorbed in GE2008 for one whole fortnight and
forgot the bullish bullshit some market pushers were telling you just months ago the KLCI would rocket towards 2,000-mark and that SIL and his bigwig corporate cronies will make a millionaire of everyoen who joins the Eat, Drink and Be Merry bandwagon.
For those whose memories are short, just Google Societie Generale, Bear Sterns and realise this is indeed a Globalsied world out there, and the dictum of "Survival of the Fittest" still rules in the concrete, aided by the cyber, jungle. News nowadays travels almost instantly via te Internet.
And thanks to the Internet-enabled news that's less goverment-controlled, the average readers, and investors, and stock punters, do have quick access if they will it to the latest political, business and cyber developments around the world -- and all these events would impact on the local bourses like never before. You can fudge, you can spin, but finally, the Truth will prevail. The longer any government hides from the truth staring at them on the walls in the news room, the trading floor, the tehtarik rumour-vine, the harder the fall.
Desi was partially burnt in te 1997/98 crash when the Asian finacial tsunami hit several countries, including Malaysia, it was an expensive lesson learnt. Just like GE2008, nobody knew where the tsunami came from. But my fate was nothing compared with a 27-year-old abillionaire becoming a multi-millionaire-debtor overnight. Luckily his reputation preceded him and Gopeng folks sent him packing, down Under agin?
Those who are still loking at the PC screens tracking your fave stocks at the Stock Brokergae nearest you,please read the following report carefoolly, from Star online, thank them,not me. Okay, I'll accept a tehtarik if it can save thee several thousands.:)
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Friday March 21, 2008
Analysts: Asian equities may feel the spillover effect till year-end
By LOONG TSE MIN
PETALING JAYA: While there has been talk of US capital markets inching closer to a bottom, the spillover effect of the credit crisis may linger till year's end for Asian equities, analysts say.
Morgan Stanley is reported as saying that US financial stocks are closer to “bottoming out,” and had improved its recommendations on Citigroup and National City Corp.
Morgan Stanley Research Asia Pacific said that global and Asian credit-market conditions were at their worst since 2001. Traders work the floor of NY stock exchange.
“Asian credit spreads have followed the blowout in US credit spreads, leading to a sharp slowdown in issuance,'' the investment bank said. “Asian credit markets have not just dramatically under-performed equities, but have also under-performed other credit markets.”
In the current environment, access to funds and asset values were key, Morgan Stanley said.
“For Asia, current account surpluses, net external assets, low net gearing, low bank loan-deposit ratios and strong retail deposit franchises should limit the impact of the credit crunch.
“Nonetheless, within the region, those dependent on capital inflows and wholesale funding – Australia, India and (South) Korea – appear vulnerable,” it said.
While the data in the Morgan Stanley report covered Malaysia, it did not give a specific comment on the country's market. However, local fund manager, Pacific Mutual Fund Bhd chief executive officer and chief investment officer Michael Auyeung said the Malaysian market with its own intrinsic issues was unique in the region at this time.
“The market is jittery due to a case of politics. Once it works through that, the Malaysian market looks resilient,” he said.
TA Securities technical analyst Stephen Soo told StarBiz that the regional bourses including Malaysia had been linked to the US market in part due to heavy foreign selling as the credit crisis in America unfolded.
Soo puts the near-term support for the KL Composite Index at 1,150 points and the one-year support level at 1,090, with another support level being the 1,000-point psychological level.
With some economic numbers in United States pointing to a recession and the previously safe haven of commodities sliding since Wednesday, Soo said there was a risk of global markets overshooting on the downside.
DESI's parting short:
The highlighted portions in te above report are Desi's (thus BOLDED) but I hold no responsibility if thou should take any positions -- backside, frontside or any directional, do you think I care? -- so don't sue me when others make some quick bucks, Okay!
If thou had not read to this point, God help Thee, it's your MOney,HOney!
Yes, I am my ER' slave, working my hard oouch!:(
I see another RED LIGHT ahead; no! I am not around Sun Complek!:(
Friday March 21, 2008
Merrill files suit against insurer
NEW YORK: Merrill Lynch & Co Inc said on Wednesday it sued XL Capital Assurance Inc seeking to stop the insurer from backing out of credit guarantees, fuelling speculation the world's largest brokerage may need to take further writedowns.
XL Capital Assurance, a unit of Security Capital Assurance Ltd, had agreed to protect about US$3.1bil of Merrill's portfolios of consumer debt against default.
The SCA unit used credit-default swaps to provide the guarantee, and its efforts to get out of the contracts reflects what could be a widening problem on Wall Street: cash-strapped bond insurers backing out of obligations.
A Merrill Lynch sign is seen above the main entrance to its HQ in New York. – Reuters
Yesterday, Security Capital Assurance said its XL Capital Assurance bond insurance unit cancelled collateralized debt obligation guarantees sold to Merrill.
“Merrill gave the control rights on seven CDO contracts to one or more third parties without our knowledge and in direct violation of our agreements,” SCA said in a statement yesterday. “As a result, we have a responsibility to take the appropriate action and terminate these contracts.'' – Agencies
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