EOD Update (27 Feb 2007)

Rising crude, US real estate bust and rising mortgage defaults, resignation of HSBC's US chief, Iran nuclear ambitions, Yen spike, reversal of global carry trade, Greenspan's comments about a possible "recession", inflation fears ... more and more dark clouds just seem to be forming over the last few days. Today Shanghai went pop with a 8.84% index decline, while the KLCI dropped almost 36pts at the close (-2.81%). At one point the CI was down more than 50pts.

As a result, I took major hits on UEMWRLD, UEMBLDR, TEBRAU and LIONDIV, amongst others (albeit out of profits). May 2006 saw a major global correction from which Bursa Malaysia did not escape. In the end, emerging markets fell more steeply than the US but turned around strongly following a sharp US recovery. This time, with all those dark clouds hanging overhead, we'll have to see if the US market manages to hold its ground and lead us out of the woods again. Some prudence would be wise, though.

Latest disposals:

LIONDIV: -2,000 (6.60) ... Balance 2,000

MUHIBAH: -2,000 (4.18) ... Balance 6,000

SAPCRES-WA: -5,000 (0.365), -5,000 (0.365) ... Balance 0


/ichithekiller