Bursa Malaysia Trade Statistics – 31Oct 2011

Bursa Malaysia Trade Statistics – 31Oct 2011
                        Participation       Bought            Sold            Net
                       %                       RMm              RMm           RMm
Local Insts      45.7                   646.9              798.9            -152.0
Local Retail    29.6                   449.0              488.6             -39.6
Foreign           24.7                  486.1              294.5             191.6
                      100.0                1582.0            1582.0             0.0

Be Honest – The European Debt Deal Was Really A Greek Debt Default

Once the euphoria of the initial announcement faded and as people have begun to closely examine the details of the European debt deal, they have started to realize that this “debt deal” is really just a “managed” Greek debt default. Let’s be honest – this deal is not going to solve anything. All it does is buy Greece a few months. Meanwhile, it is going to make the financial collapse of other nations in Europe even more likely. Anyone that believes that the financial situation in Europe is better now than it was last week simply does not understand what is going on. Bond yields are going to go through the roof and investors are going to start to panic. The European Central Bank is going to have an extremely difficult time trying to keep a lid on this thing. Instead of being a solution, the European debt deal has brought us several steps closer to a complete financial meltdown in Europe.
The big message that Europe is sending to investors is that when individual nations get into debt trouble they will be allowed to default and investors will be forced to take huge haircuts.
As this reality starts to dawn on investors, they are going to start demanding much higher returns on European bonds.
In fact, we are already starting to see this happen.
The yield on two year Spanish bonds increased by more than 6 percent today.
The yield on two year Italian bonds increased by more than 7 percent today.
So what are nations such as Italy, Spain, Portugal and Ireland going to do when it costs them much more to borrow money?
The finances of those nations could go from bad to worse very, very quickly.
When that happens, who will be the next to come asking for a haircut?
After all, if Greece was able to get a 50% haircut out of private investors, then why shouldn’t Italy or Spain or Portugal ask for one as well?
According to Reuters, German Chancellor Angela Merkel is already trying to warn other members of the EU not to ask for a haircut….

Chancellor Angela Merkel said on Friday it was important to prevent others from seeking debt reductions after European Union leaders struck a deal with private banks to accept a nominal 50 percent cut on their Greek government debt holdings.
“In Europe it must be prevented that others come seeking a haircut,” she said.

But investors are not stupid. Greece was allowed to default. If Italy or Spain or Portugal gets into serious trouble it is likely that they will be allowed to default too.
Investors like to feel safe. They want to feel as though their investments are secure. This Greek debt deal is a huge red flag which signals to global financial markets that there is no longer safety in European bonds.
So what is coming next?
Hold on to your seatbelts, because things are about to get interesting.
Around the globe, a lot of analysts are realizing that this European debt deal was not good news at all. The following is a sampling of comments from prominent voices in the financial community….
*Economist Sony Kapoor: “The fact that a deal has been agreed, any deal, impresses people. Until they start de-constructing it and parts start unravelling.”
*Economist Ken Rogoff: “It feels at its root to me like more of the same, where they’ve figured how to buy a couple of months”
*Neil MacKinnon of VTB Capital: “The best we can say is that the EU have engineered a temporary reprieve”
*Graham Summers of Phoenix Capital Research:

First off, let’s call this for what it is: a default on the part of Greece. Moreover it’s a default that isn’t big enough as a 50% haircut on private debt holders only lowers Greece’s total debt level by 22% or so.
Secondly, even after the haircut, Greece still has Debt to GDP levels north of 130%. And it’s expected to bring these levels to 120% by 2020.
And the IMF is giving Greece another $137 billion in loans.
So… Greece defaults… but gets $137 billion in new money (roughly what the default will wipe out) and is expected to still be insolvent in 2020.

*Max Keiser: “There will be another bailout required within six months – I guarantee it.”
The people that are really getting messed over by this deal are the private investors in Greek debt. Not only are they being forced to take a brutal 50% haircut, they are also being told that their credit default swaps are not going to pay out since this is a “voluntary” haircut.
This is completely and totally ridiculous as an article posted on Finance Addict pointed out…

We now know that private holders of Greek bonds will be “invited” (seriously–this was the word used in the EU summit statement) to take a write-down of 50%–halving the face value of the estimated $224 billion in bonds that they hold. This will help bring the Greek debt-to-GDP ratio down from 186% in 2013 to 120% by 2020. The big question–apart from how many investors they will get to go along with this, given that they couldn’t reach their target of 90% investor participation when the write-down was only going to be 21%–is whether this will trigger a CDS pay-out.
That this is even up for discussion is mind-boggling. These credit default swaps are meant to be an insurance policy in case Greece doesn’t pay the agreed upon interest and return the full principal within the agreed timeframe. If they don’t pay out when bondholders are taking a 50% hit then what’s the point?

European politicians may believe that they have “solved” something, but the truth is that what they have really done is they have pulled the rug out from under the European financial system.
Faith in European debt is going to rapidly disappear and the euro is likely to fall like a rock in the months ahead.
The financial crisis in Europe is just getting started. 2012 looks like it is going to be an extremely painful year.
Let us hope for the best, but let us also prepare for the worst.

PE Firm J.C. Flowers Will Lose $47.8 Million In Its MF Global Stake

Private equity firm J.C. Flowers lost $47.8 million on its stake in MF Global's, Bloomberg TV reporter Cristina Alesci is reporting.

J.C. Flowers had around $87 million invested, she says. They were paid back some of that in coupons.
The company has deep ties to MF Global - founder J. Christopher Flowers sat on the board of directors and helped install Jon Corzine into the top position at MF Global back in 2010. J.C. Flowers currently owns a 6% stake in the derivatives brokerage, and the firm had reportedly been in discussions with MF Global about a private equity buyout last week.
Corzine is an operating partner at the PE firm, and Flowers is also used to work at Goldman Sachs (where Corzine was formerly CEO).
The biggest losers here will be J.C. Flowers' investors - that includes pensions funds, mutual funds, individuals, etc. It will also have far-reaching effects - Bloomberg's Alesci reports that some of the investors in the fund include a German company and a Japanese bank.

Lisa Du
Read more:Business Insider

Trader: The MF Global Bankruptcy 'Decimated' The Floor Of The CME Today

There was a lot of confusion this morning about what kind of impact the bankruptcy of futures dealer MF Global would have on trading operations.

One place the impact was felt big: The floor of the Chicago Mercantile Exchange.
We caught up by phone with Eric "The Wolfman" Wilkinson, the independent floor trader who many know because he stands near Rick Santelli on CNBC.
He explained to us what happened.
The gist: MF Global is the clearing firm for a huge chunk of the traders on the floor of the exchange. That means, essentially, that they guarantee that all trades get paid out, a role that the Chicago Board of Trade used to play directly, but which was outsourced to third parties as part of the CBOT's move towards being publicly held. Importantly, MF is/was the clearing firm for many sub-firms, which means that many traders ultimately were having their trades cleared through MF Global, even if they didn't know it.
ANYONE who somehow has their trades cleared through them was unable to trade today, and that means that any trader who had open positions is just sitting there watching the market move, while they find a new firm.
Theoretically this shouldn't take too long, in some cases traders could be back up and running tomorrow if the paperwork of going to a new firm can be done fast enough.
Bottom line though: The screwup that caused the big disruption was not necessarily the collapse of MF Global itself, but the fact that many firms that dealt with MF Global assumed that everything would be fine, like it would have been when the CBOT was a partnership.
Here are some quotes from Wilkinson
------------------------
"Basically ... all this stuff started accumulating on Wednesday. A lot of these clearing firms had a chance to make a lot of moves. But people thought it was like the REFCO situation and there weren't going to be a lot of problems."

"(Today) I got on the floor early ... before they started shutting off everyone's access."

"They're not allowing people with open positions get out of it."

"This place is decimated ... Crickets."

"Euro options pit probably has half the traders out there."

"Currency options has a 10th."

"Not going to let anyone on the floor tomorrow that's clearing through MF Global."

"People who have huge positions. They must be pulling their hair out."

As for traders siwtching to new firms ... "They have to sign some release agreements ... it shouldn't be much of a deal. They'll be up late at night."


"They could've done something. When they saw that MF Global's stock was going to 40 cents on Friday, a lot of these clearing firms should have been on the ball. They were old school, and thought that it would be seemless."

Joe Weisenthal

Jim Rogers' Keys to Success

Jim Rogers' Keys to Success (taken from the titles and sub headings of each chapter of the new book, "A Gift To My Children"):

1. Do not let others do your thinking for you

2. Focus on what you like

3. Good habits for life & investing

4. Common sense? not so common

5. Attention to details is what separates success from failure

6. Let the world be a part of your perspective

7. Learn philosophy & learn to think

8. Learn history

9. Learn languages (make sure Mandarin is one of them)

10. Understand your weaknesses & acknowledge your mistakes

11. Recognize change & embrace it

12. Look to the future

13. “Lady Luck smiles on those who continue their efforts”

14. Remember that nothing is really new

15. Know when not to do anything

16. Pay attention to what everybody else neglects

17. If anybody laughs at your idea view it as a sign of potential success

Jim Rogers is an author, financial commentator and successful international investor. He has been frequently featured in Time, The New York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The Financial Times and is a regular guest on Bloomberg and CNBC.

Bursa Malaysia Trade Statistics – 28 Oct 2011

Bursa Malaysia Trade Statistics – 28 Oct 2011
                            Participation       Bought              Sold                  Net
                            %                       RMm                RMm                RMm
Local Insts           47.9                   1076.7              1123.7              -47.0
Local Retail         30.3                     620.7               755.2                -134.5
Foreign               22.1                    597.9                416.4                181.5
                          100.0                  2295.3              2295.3              0.0

Zelan May Rise; Could Get Contract From Mudajaya

 Zelan (2283.KU) may rise to test MYR0.38 after the company said it could receive a contract worth upto MYR300 million for a power plant project in the southern state of Johor. Mudajaya Group (5085.KU), part of a consortium which includes Alstom S.A. (ALO.FR) and Eversendai Corp (5205.KU), plans to subcontract a portion of the civil works to Zelan subject to the consortium being appointed as the contractor, Zelan said in a stock exchange filing. The news will likely help lift the stock which ended Friday down 1.4% while underperforming the KLCI's 0.7% gain. Although it isn't certain that Zelan will secure the project, the news could attract investors to the stock after the construction subindex rebounded strongly over the week. (jason.ng@dowjones.com)

First Feed To Malaysia Plant Not Until Early 1Q12

SYDNEY (Dow Jones)--The first production by Australian rare earths miner Lynas Corp. (LYC.AU) will be pushed back as much as six months, the company said Monday, amidst strident opposition to its Malaysia-based processing plant.

In a quarterly report, Lynas said it would start supplying customers in the first half of 2012. In the previous report in July, the company had expected first production by the end of 2011.

"Slight delays in final procurement packages and associated delays in construction and contractor resourcing means it is likely that first feed to kiln will not occur until early 1Q 2012," the company said.

"Subject to the receipt of the pre-operational license, Lynas confirms its expectation to be in commercial supply during 1H 2012," it said.

-By David Fickling, Dow Jones Newswires

10 Things You Need To Know Before The Opening Bell

Good morning. Here's what you need to know.

• Global markets have soared today on news of Greek debt haircuts. Japan’s Nikkei finished up more than 2%, while the Hang Seng added 3.3%. In Europe both the DAX and CAC gained 4%. U.S. futures are pointing to a massive positive open.
• Late last night, European leaders agreed to 50% haircuts on Greek debt, a levered European Financial Stability Facility that could reach $1.4 trillion, and a 9% bank core capital ratio, which all represent significant progress to address the E.U. meltdown. Banks will need to raise nearly $147 billion to recapitalize. Guess who was freaking out over Greece before the agreement >
• French President Nicolas Sarkozy said that emerging markets could be tapped as part of the region’s recapitalization plan. The E.U. plans to reach out to China’s Hu Jintao. Yesterday Bloomberg reported the head of the EFSF was en route to China.
• The Bank of Japan announced plans to boost its asset-buying program by 33% to 20 trillion yen, a 5 trillion yen increase. The bank also said it would intervene if the yen continues to appreciate. Here are the big Japanese companies you need to watch during the country's reconstruction >
• South Korea’s third quarter GDP growth slackened to 0.7%, beating economist estimates of 0.6%, but slowing sequentially from 0.9%. The Bank of Korea indicated it would not raise interest rates for the fourth month in a row, even as inflation remains above target levels of 4%.
• The Congressional super committee tasked with cutting the deficit by $1.2 trillion is deadlocked, with only weeks left before its deadline. Democrats had presented a $3 trillion package that included tax increases, but Republicans refused. Ratings agencies, including S&P, have said they might downgrade U.S. debt if deficit reduction is not agreed upon. Tea Party and Occupy Wall Street protestors will have something to say >
• Politico's Ben White reports the bailout of Freddie Mac and Fannie Mae may cost U.S. taxpayers tens of billions less than originally expected. The net cost could come in below $200 billion, or half original projections. Federal Housing Finance Authority stress tests could be released as soon as today.
• U.S. third quarter GDP will be announced at 8:30 a.m. Economists polled by Bloomberg are forecasting growth of 2.5%, up from 1.3% in the second. Initial jobless claims will be released at 10 a.m., with expectations at 401,000. That's down 2,000 since last week.
• Yesterday Visa beat earnings by two cents, with EPS of $1.27. Revenue for the card processor missed expectations however, rising to $2.38 billion. Analysts were looking for $2.39 billion. Check out all of last week's earners here >
• Exxon Mobil and Procter and Gamble will report quarterly results before the opening bell. The oil giant is predicted to post earnings of $2.13 a share, down from $2.17 last quarter. Follow all the results live on Money Game.

Bursa Malaysia Trade Statistics – 25 October 2011

       Bursa Malaysia Trade Statistics – 25 October 2011
                         Participation     Bought      Sold           Net
                         %                    RMm        RMm         RMm
Local Retail      27.3                 273.2        314.8         -41.6
Local Insts       48.6                 484.7        560.6         -75.9
Foreign            24.1                 318.1        200.6         117.5
                       100.0               1076.0      1076.0         0.0
Source: Bursa Malaysia

US MARKET BREAKING NEWS 26 OCTOBER 2011

1. Ford EPS $0.46 vs $0.44 Estimates; Sprint Nextel Loss Per Share $0.10 vs Estimated Loss of $0.22.


2. Stocks wavered in thin, volatile trading Wednesday as skepticism grew over the EU leaders' ability to reach a resolution to the region's sovereign debt problems at the summit in Brussels, overshadowing a handful of positive earnings and economic news. 


3. Broad Agreement on 9% Capital Ratio for Banks: Draft EU Leaders' Statement.


4. Boeing EPS $1.46 vs $1.10 Estimated.

5. Greek Bond Writedown of 50% Pretty Much a Done Deal: Sources.


6. Durable Goods Orders Fall 0.8% in September, Which Is Slightly Less than Expected.

7. Lower House of German Parliament Approves Motion to Strengthen EFSF.


8. Stocks opened higher Wednesday as investors grew hopeful that EU leaders could strike an agreement on a lasting plan to tackle the region's debt crisis and following a stronger-than-expected durable goods orders report.
All 30 Dow components opened higher, led by Boeing and Alcoa.


8. Stocks rebounded in volatile trading Wednesday to close near session highs as investors were encouraged over several reports that pointed to a progress in the European debt talks.
Boeing soared, while Microsoft finished lower.


9.  Visa reported earnings of $1.27 a share on revenue of $2.38 billion. Earnings beat analyst expectations but revenue fell short. Shares slipped.

 

 

 

 

 

Harvard Business School Market Indicator Flashes Huge Warning

Harvard Business School graduates are flocking to Wall Street in numbers not seen since 2008 — which could be a very bad sign for the markets.

Around 38 percent of this year's HBS class took jobs in "market-sensitive" industries including investment banking, hedge funds, venture capital and private equity, up from just 31 percent last year. (You can look at the HBS data right here.)

For years, a consultant named Ray Soifer has analyzed the career paths of freshly minted Harvard MBAs looking for signs of the economy.

According to Soifer, when more than 30 percent of HBS grads take Wall Street jobs, it's a strong sell signal.

It's not precise timing. Soifer's HBS indicator first flashed a sell signal in 2005, years before the market came crashing down. It peaked in 2008, when 41 percent of the Harvard MBAs went to Wall Street.

This year saw a huge growth in the number going to hedge funds, from 4 percent of the class of 2010 to 7 percent in the class of 2011.

Private equity also expanded rapidly, from 9 percent to 14 percent.

The share going to investment banks and investment management held steady, at 10 percent. Venture capital's share actually shrank, from 3 percent to 1 percent. So perhaps talk of a tech bubble has gone too far.

John Carney
Read more: http://www.cnbc.com/id/45030885#ixzz1brulkpui

US MARKET BREAKING NEWS 25 OCTOBER 2011

1. UPS Earnings Top Estimates, Posts 3Q EPS of $1.06 Vs. $1.05 Estimate.

2. S&P Case-Shiller's Ten of 20 Cities Covered Saw Home Prices Increase.

3.Stocks opened lower Tuesday after investors became nervous following comments from Germany's Angela Merkel ahead of Wednesday's EU summit and following a slew of mixed earnings reports.

3M tumbled, while DuPont climbed. 

4. EU Finance Ministers Meeting Tomorrow Cancelled.

5. Stocks fell Tuesday following news the EU finance ministers canceled their Wednesday meeting ahead of the summit and as investors digested a slew of mixed earnings reports and weak economic news. The full summit is still expected to take place.

6. Netflix plunged almost 35 percent.

7. Stocks plunged sharply in the final hour of trading Tuesday to close at their lows amid jitters over the euro zone's ability to find a solution to the ongoing debt crisis.

8.  Amazon shares fell more than 15% in after-hours trading after the Internet retailer missed big on earnings and delivered fourth-quarter guidance that fell short of Wall Street's expectations. 

9.The White House unveiled details of its student-relief plan, which includes capping loan payments at 10% of discretionary income, starting in 2012. It will also allow student to roll direct student loans and those guaranteed by the government into one single payment. President Obama will discuss the plan Wednesday in a speech at a university in Denver.

  

http://web1.cyberstock.com.my/masanews/web/browsetables.asp?msg=NA&stock=0032&tabtype=2&showcmd=0

Bursa Malaysia Trade Statistics – 24Oct 2011

Bursa Malaysia Trade Statistics – 24Oct 2011
                       Participation       Bought      Sold           Net
                       %                      RMm        RMm          RMm
Local Insts       48.8                  575.0       706.2          -131.2
Local Retail     33.2                  397.9        474.4         -76.5
Foreign           18.0                   340.9       133.2           207.7
                       100.0                1313.8     1313.8         0.0
Source: Bursa Malaysia

The Unclassified Laws of Etiquette

The Unclassified Laws of Etiquette Its a list of different rules of etiquette written over 100 years ago and some of the suggestions are a bit archaic and random, the advice is still strikingly resonant. It manages to cover many, many of the gaps in etiquette which have transformed society into a veritable Swiss cheese of incivility. If a man puts these suggestions into practice, he will definitely set himself apart for the other knuckleheads out there trying to land a job or catch the eye of a good looking gal. Heres to becoming more refined gentlemen & Women! Never exaggerate. Never point at another. Never betray a confidence. Never leave home with unkind words. Never neglect to call upon your friends. Never laugh at the misfortunes of others. Never give a promise that you do not fulfill. Never send a present, hoping for one in return. Never speak much of your own performances. Never fail to be punctual at the time appointed. Never make yourself the hero of your own story. Never pick the teeth or clean the nails in company. Never fail to give a polite answer to a civil question. Never question a child about family matters. Never present a gift saying that it is of no use to yourself. Never read letters which you may find addressed to others. Never fail, if a gentleman, of being civil and polite to ladies. Never call attention to the features or form of anyone present. Never refer to a gift you have made, or favor you have rendered. Never associate with bad company. Have good company, or none. Never look over the shoulder of another who is reading or writing. Never appear to notice a scar, deformity, or defect of anyone present. Never arrest the attention of an acquaintance by touch. Speak to him. Never punish your child for a fault to which you are addicted yourself. Never answer questions in general company that have been put to others. Never, when traveling abroad, be over boastful in praise of your own country. Never call a new acquaintance by their first name unless requested. Never lend an article you have borrowed, unless you have permission to do so. Never attempt to draw the attention of the company constantly upon yourself. Never exhibit anger, impatience or excitement, when an accident happens. Never pass between two persons who are talking together, without an apology. Never enter a room noisily; never fail to close the door after you, and never slam it. Never forget that, if you are faithful in a few things, you may be ruler over many. Never exhibit too great familiarity with the new acquaintance, you may give offense. Never will a gentleman allude to conquests which he may have made with ladies. Never be guilty of the contemptible meanness of opening a private letter addressed to another. Never fail to offer the easiest and best seat in the room to an invalid, an elderly person, or a lady. Never neglect to perform the commission which the friend entrusted to you. You must not forget. Never send your guest, who is accustomed to a warm room, off into a cold, damp, spare bed, to sleep. Never enter a room filled with people, without a slight bow to the general company when first entering. Never fail to answer an invitation, either personally or by letter, within a week after the invitation is received. Never accept of favors and hospitality without rendering an exchange of civilities when opportunity offers. Never cross the leg and put one foot in the street-car, or places where it will trouble others when passing by. Never fail to tell the truth. If truthful, you get your reward. You will get your punishment if you deceive. Never borrow money and neglect to pay. If you do, you will soon be known as a person of no business integrity. Never write to another asking for information, or a favor of any kind, without enclosing a postage stamp for the reply. Never fail to say kind and encouraging words to those whom you meet in distress. Your kindness may lift them out of their despair. Never refuse to receive an apology. You may not receive friendship, but courtesy will require, when a apology is offered, that you accept it. Never examine the cards in the card-basket. While they may be exposed in the drawing room, you are not expected to turn them over unless invited to do so. Never, when walking arm in arm with a lady, be continually changing and going to the other side, because of change of corners. It shows too much attention to form. Never insult another with harsh words when applied to for a favor. Kind words do not cost much, and yet they may carry untold happiness to the one to whom they are spoken. Never fail to speak kindly. If a merchant, and you address your clerk; if an overseer, and you address your workman; if in any position where you exercise authority, you show yourself to be a gentleman by your pleasant mode of address. Never attempt to convey the impression that you are a genius, by imitating the faults of distinguished men. Because certain great men were poor penmen, wore long hair, or had other peculiarities, it does not follow that you will be great by imitating their eccentricities. Never give all your pleasant words and smile to strangers. The kindest words and the sweetest smiles should be reserved for home. Home should be our heaven. Wishing you a happy life ahead!