CNY HOLIDAY 2010 - Market higher on active buying

Buying interest was active across the board on rising optimism of a recovery in the global economy, said an analyst.

The marke's attention was also on the subdued inflation in China.
"All this good news helped bring buyers back into the markets," the analyst said, adding that regional markets also performed well after Europe's pledge to help Greece out of its debt crisis.

However, the market volume was thin ahead of the extended weekend. Bursa Malaysia will reopen on Wednesday after the Chinese New Year holiday.

The Finance Index rose 62.05 points to 10,946.04, the Industrial Index increased 11.63 points to 2,588.07 and the Plantation Index was up 17.35 points to 6,204.5.

The FBM Emas Index gained 38.74 points to 8,436.33, the FBM70 Index was up 53.58 points to 8,281.51 and the FBM ACE Index rose 71.76 points to 4,328.97.

Market breadth was positive with gainers thrashing decliners 479 to 142 while 241 counters were unchanged, 467 untraded and 26 others suspended.

Total volume decreased to 560.587 million shares worth RM811.432 million from 646.353 million shares worth RM881.907 million yesterday.

Of heavyweights, Sime Darby was up two sen to RM8.40, Maybank added seven sen to RM6.90, CIMB Group increased six sen to RM12.42, IOI Corporation rose one sen to RM5.22 but Maxis fell two sen to RM5.38.

Among major gainers, Nestle rose 64 sen to RM33.80, KKB Engineering increased 45 sen to RM3.85, Malaysia Smelting Corporation went up 43 sen to RM3.80, Goh Ban Huat moved up 30 sen to RM2.00 and Hai-O Enterprise increased 28 sen to RM9.10.

The FBM KLCI futures contract on Bursa Malaysia Derivatives closed lower, dealers said.

Spot month February 2010 fell 7.5 points to 1,244.5, March 2010 lost 3.5 points to 1,242.5, June 2010 dropped 3.0 points to 1,238.5 and September 2010 declined 3.5 points to 1,233.0.

Turnover, however, was higher at 4,863 lots compared with 4,510 lots on Thursday while open interest rose to 18,209 contracts from 17,973 contracts previously.

Right time to buy shares.................

It may take nerves of steel, but some investment pros are already telling their clients to start buying shares.

'We encourage investors to use this correction as a buying opportunity,' say experts.

Fund managers have been licking their lips at the prospect of picking up some tasty bargains.

First of all, do research on the company you trying to buy shares of stock.
When you buy shares of stock, don't buy all in once, try to buy in sequence. If you have faith in the company but the price is keep dropping, buy more! if it keeps dropping and you lose 10% of the value, get out and take your loss.

It's always good to hold a stock long term unless there is a serious problem with the company. Although, you might get a lot of profit by buying stocks before their earning, but you can also lose much money if the report is not great.
Never get into over stocks if you already miss the boat.

Don't be greedy, once you think you reach your goal, sell it. Remember that Sheep get sheered; Pigs get fat; but Hogs get slaughtered.

How to Buy Shares.

Ready to buy shares?
Pick a few company shares and invest a modest amount to start with.
Remember: the value of shares can go down as well as up – so never invest what you can’t afford to lose.................

Here are some popular providers offering free share tips… Generally, they are geared towards long term investing, so don't expect to make profits overnight.

But eventually they will bottom-out, and when that happens, it will pay to know how to buy stocks to make money from the best value investments on the market.

As a beginner investor, it’s crucial not to buy stocks before learning the basics.

Useful Stock Trading Tips
Brokers – beware of stock brokers who call up out of the blue and offer a stock that is “guaranteed to skyrocket any time now”. These brokers work on commission and only care about getting people to make trades so they can skim a profit.

Volatility – smaller stocks are often more volatile than blue chip stocks. This means they are inherently riskier, and should be approached with more caution. While they offer huge potential returns due to the discounted nature of a young stock, they also run the risk of folding at short notice.

Long term investing – for many investors, stock trading is a long term game. It is unusual to profit from single stocks in a matter of days without some insider knowledge or market manipulation. Often, investors buy stocks and allow them time to increase in value, maybe over several months or years.

When to sell – stocks can be sold when the valuation (annual profits in relation to the stock price) becomes too high. Stock tip sheets, investor publications, and broker research notes often publish new stock valuations after some major news or financial accounts go public

Best Stock Market Tips

A professional stock market analyst has:

1.Understanding of wider market trends
2.Knowledge of individual sectors
3.Experience analysing financial accounts
4.Contact with the management of the stock
5.Access to rumours and upcoming deals
6.No emotional bias

That last point is often overlooked. It is easy to become attached to a stock simply because it is deemed to show promise. But if the share price is doomed, the level-headed investor must know when to cut a loss.

How to Buy Shares

A Guide to Buying Shares on The Stock Market.

Discover how to buy stocks and make money on the stock market.

If a private investor is willing to take some calculated risks and follow the advice of the experts, there are still good opportunities to buy shares for profit and make money on the stock market.

While some private investors do their own stock market research, it’s much easier to find a reputable stock tip sheet or equity research house that supplies all the ideas.

Don’t buy shares randomly (i.e. because they have a nice name) or trust investor bulletin boards (i.e. because someone says “this one’s going to be a ten-bagger!”) This is completely unreliable. Remember – the stock market is not random, share prices move because of fundamental attributes and investor sentiment. Understanding what causes a share price to move is the key to making money on the stock market.

Buy your first stock or your first fund?

You say you want to invest, but you don’t know where to start? This investing primer walks beginners through each step along the way to becoming a shareholder.

What is a share of stock?
Corporations sell shares of stock to raise cash to fund their operations. The first time that a company sells its shares is termed its initial public offering (IPO). Most companies make additional stock offerings from time to time to raise additional funds.
When you buy stock, you are buying ownership in the underlying corporation. For instance, if XYZ Corporation has issued 100 shares, and you buy one share, you have purchased a 1% ownership stake in XYZ.

What is the Fund (Public Mutual Fund)?
Mutual funds invest the pooled funds of thousands of investors. By investing in mutual funds you gain the advantages of professional management. Because most funds hold dozens, if not hundreds, of stocks in their portfolios, investing in funds also gives you automatic diversification.
That is an important advantage. Even if you're a gifted stock-picker, inevitably something unexpected will happen that will sink the share price of one of your stocks. Such an event could be a disaster if you own only a few stocks, but would be no big deal for a mutual fund holding a hundred or so stocks.
Mutual funds often specialize in specific market niches, such as small companies, fast-growing companies, etc. You can buy mutual-fund shares directly from a fund company -- such as Public Mutual Fund, which offer a variety of fund types.

Funds versus stocks:-

There are two basic ways to invest in the stock market: You can buy stocks of individual corporations, or you can buy mutual funds such as Public Mutual Fund.

Buying shares for the first time?

Buying shares for the first time?

Take all four into consideration when taking a call on whether or not you should buy a stock.
But do remember you are living dangerously when you make decisions based on 'tips' you have heard/ read.
The chances of you losing your money are much higher.
Investing is serious business.
You should take it seriously.

Bull or bear :-
It does not really matter if you don't know which term suits you best. I firmly believe anyone can beat the stock market.
All you have to do is be disciplined and work with some basic principles.
The key lies in finding the right stock. Once you do, hold on to it for the long haul or till you get the price you wanted.

Four magic principles:-
1.)Look for low P/E stocks
2.)Growth story
3.)Asset backing
4.)A good trading outlook