How do I see the market today? 8-Dec-2010

US market ended flat with DJIA down 3.03p while S&P gained 0.62p.

What happened in US market?

According to Bloomberg website, it says "U.S. stocks erased gains in the final hour of trading, pulling the Standard & Poor’s 500 Index down from a two-year high, after a probe of insider trading reportedly widened and President Barack Obama said he’ll push to overhaul the tax code in two years."(Click on this link for the full news: Bloomberg US Market News)

My view:

Today should be a bullish market for KLCI. The insider trading probe in US has little relationship with Malaysian market. Thus, I guess market should start stronger.

Stocks that I still find attractive:

1. DRBHCOM (Gaining more attention from investors, cheap historical PER of only 6.55x, got potential to go up to RM1.80)
2. AXIATA (Proxy to growing Indonesia market, with stability in Malaysia Celcom, the recent price dip due to TM selling AXIATA shares may be opportunity to accumulate, the consensus target price is RM5.30)
3. SAPIND (Price shoot up after the Company declared a surprise dividend of 14sen, trade at cheap 5.72x annualized PER 2010, got potential to go up to RM1.33 (conservative view of 6x PER) or RM1.55 range (optimistic view of 7x PER))