February 10, 2012

Friday-Frequently a Bear Day

Fridays are mostly soft trading days on most bourses.Bursa KL is no exception.

Why is it so?

The market gurus will tell you that it is because things can happen during the weekend that may further affect the way shares will go on the following trading week beginning Mondays. Some may be economic while others could be political developments.So, punters do not come into the market on Fridays.

If overseas markets do not perform well particularly Wall Street; that will set the tone for Mondays and possibly into Tuesdays.

As such Friday are mostly bargain hunters' days where stocks which are big gainers will have their gains pared away.Also, sellers do not want to hold shares over the week-end.

Looking at two stocks-Genting Berhad and Digi, it can be seen that Genting Bhd has been falling because of the lack of development on the casino license in Florida. Moving up lately to RM11.30 apparently was just a flash in the pan. So, weak sellers dumped it down by 16 sen to RM10.30 to possibly take new positions the following week.

Digi.Com:Steady Buying at RM4.13

As for Digi, support continues to be there as the market awaits for the payout of the special dividends that will accrue to them in the first quarter of 2012. It lost a sen to RM4.13 which is normal. Moreover, a 6.5% single tier dividend will go ex on 17 February this forthcoming week.

Genting Bhd: Weak Holders and Lack of News

No comments: