How do I see the market today? 9-Dec-2010

US market ended flat with DJIA up 13.32p to 11372.48p while S&P gained 4.53p to 1228.28p.

What happened in US market?

According to Reuters website, it says "U.S. stocks edged higher on Wednesday as gains in financial and technology stocks offset declines caused by a recent surge in bond yields.... Yields reached a six-month high this week after the initial deal reached in Washington to extend tax cuts fueled concern about inflation and the government's debt burden."(Click on this link for the full news: Reuters US Market News)

My view:

Today should be a bullish market for KLCI. The higher bond market yield in US should have minimal impact as most Malaysian companies are not borrowing money directly from US. Bank Negara also does not seem likely to increase interest rate soon, as I believe growth is placed more importantly than inflation concern at this moment for Malaysia.

Stocks that I still find attractive:

1. DRBHCOM (Gaining more attention from investors, historical PER of 6.96x now means it is getting closer to industry level, got potential to go up to RM1.80)
2. TM (Share price supported by expected dividend of 20 sen yearly, special dividend maybe coming, High Speed Broadband may surprise on the upside, but fixed line telephone likely to face pressure, got potential to go up to RM3.64)
3. FPI (Trade at attractive historical PER of only 5.92x, strong balance sheet with net cash of RM81.42m or 33.14 sen per share, got potential to go up to RM1.39)