How do I see the market today? 2-Dec-2010

US market jumped with DJIA up 249.76p or 2.8527% while S&P gained 25.52p or 2.16%.

Why US market go up so much?

According to Bloomberg website, it says "U.S. equities started what is historically their best month with a rally after ADP Employer Services data showed companies added 93,000 jobs last month, the Federal Reserve said the economy strengthened across most of the nation and manufacturing in China expanded at the fastest pace in seven months." (Click on this link for the full news: Bloomberg US Market News)

My view:

Today should be a bullish market for KLCI. The ADP data is showing recovery in US labour market while China manufacturing data is showing that China can still be the major growth driver in the world economy. Thus, I guess market should start stronger but the optimism may fade after noon break. (up less than 10 points). However, any bad / good development from Korea should be watched closely.

Stocks that I still find attractive:

1. FPI (Attractive PER at less than 6x, dividend yield still looks good if the Company gives final dividend of 7 sen like last year, got potential to go up to RM1.39)
2. AXIATA (Proxy to growing Indonesia market, with stability in Malaysia Celcom, there has been talks that the Company will give out maiden dividend in 2011, the consensus target price is RM5.26)
3. SAPIND (Checkout my previous post, the Company just declared a surprise dividend of 14sen, trade at cheap 4.82x annualized PER 2010, got potential to go up to RM1.33 to RM1.55 range)