KLCI FINALLY SURGE > 1,060

3 weeks since last post on 30/10/06, the KLCI has surge to 1,060 point.

Many may wonder will this rally sustainable ? Will foreign fund finally come or will they hit & go again.

Judging from the KLCI upward momentum & lead by big blue chips, we may foresee better time ahead for Bursa Malaysia. Optimistic due to the following development :-

1) GLS reform getting momentum by Merger of Sime Darby, Guthrie & Golden Hope .

2) New foreign investor for AMMB

3) Proton retructuring by 51% disposal to Foreign Partner ( most likely to happen this round)

4) Roll out of 9th Malaysia plan

5) The Govt is supportive to let Ringgit to appreciate.

We can expect better performance for STEEL counter in the immediate term mainly due to the roll out of 9th Malaysia Plan. All the Mega projects will make the steel counter busy for the whole year of 2007 .

Highlighted below personal comments on some STEEL COUNTER :-

LionCor ------------ 0.62, undervalue but not recommended due to high borrowing.

LionInd ------------ 0.985, undervalue, good returns expected once the Lion Group completed their restructuring. Main assets is holding in LionFib & LionDiv.

Ornasteel ---------- 1.07, undervalue, simple biz model, healthy balance sheet, good dividend yield. Good counter for long term investor.

Engtex ----------- 1.09, undervalue, profits will expand on water projects starting next year.

Hiapteck ---------- 1.20, fair value. not so attrative pricing. Not cheap to buy compare to abovementioned company.

Mycron ------------ 0.85, under value, but not recommended due to management capabilities not proven.

REMINDER: EVEN BULL IS FINALLY COME, DON'T GET INTO SPECULATIVE COUNTER ( HIGH RISK NOT NECCESSARY HIGH RETURNS), LOOKING FOR UNDERVALUE, GOOD FUNDAMENTAL COUNTER WHEN INVEST YOUR HARD EARNED $$$$$$$$$$$$.