For FKLI
For FCPO
Thursday, July 17, 2008
5:01 pm - FKLI is going a rangebound situation
Trading is ranging. So buy at support and sell at resistance is the strategy for tomorrow.
9:35 am - FKLI has no follow thru on the downtrend.
We had 3 consecutive down bar and FKLI will take a breathe first i.e. it may reverse.
Wednesday, July 16, 2008
5:23 pm - Another down bar for FKLI !
If DJIA recover tonite, we may have a gap up day for FKLI tomorrow. Sell higher and buy lower.
2:42 pm - Anwar factor is on again ! See malaysiakini.com for more news
The FKLI gap down due to the bad news !
10:49 am - Even US is preventing certain counters on short selling.
SEC to Limit Short Sales of Fannie, Freddie, Brokers (Update6)
By Jesse Westbrook and David Scheer
July 15 (Bloomberg) -- The U.S. Securities and Exchange Commission will limit the ability of traders to bet on a drop in shares of brokerage firms, Freddie Mac and Fannie Mae as part of a crackdown on stock manipulation, the agency's chairman said.
Christopher Cox told the Senate Banking Committee the agency will require traders to hold shares of the two mortgage buyers and the brokerages before they execute a short sale. The order, to be in effect for as long as 30 days, will bar the practice called naked short selling, in which traders avoid the financial cost of borrowing shares when betting they'll fall.
``Since it's impossible to police false rumors, the next best option for protecting fragile financial institutions is to halt short-selling for a time being,'' said David Trone, analyst at Fox-Pitt Kelton Cochran Caronia Waller. ``The SEC's action is at least a partial measure.''
The SEC is investigating whether trading abuses contributed to the collapse of Bear Stearns Cos. in March and the 80 percent drop in the market value of larger rival Lehman Brothers Holdings Inc. this year. Fannie Mae and Freddie Mac have each lost about 80 percent of their value amid speculation the mortgage-market crisis may push the firms into insolvency.
Hedge-fund manager William Ackman, who oversees $6 billion at Pershing Square Capital Management, is among those betting shares of Fannie Mae and Freddie Mac will fall. There's no indication he is engaging in naked short selling, in which traders never borrow shares from their broker or deliver the stock to buyers.
SEC Reluctance
The SEC had been reluctant to curb short sales ``because it would require a major retooling of the plumbing of Wall Street,'' said James Angel, a professor at Georgetown University studying short sales. ``It's only when the big Wall Street firms are threatened that the SEC does something about it.''
Cox said the SEC also will draft rules ``to address these same issues across the entire market.''
Short-sellers, who borrow shares betting that they'll decline, are spreading rumors about Lehman in an organized attempt to depress the stock, according to Richard Bove, bank analyst at Ladenburg Thalmann & Co. in Lutz, Florida.
``As with Bear Stearns, Lehman has been targeted by the fear- trade,'' Fox-Pitt's Trone in a report yesterday. Lehman should go private to avoid attacks by short-sellers, he said.
Freddie Mac, down as much as 34 percent today before Cox's comments, fell 26 percent to $5.26 in New York Stock Exchange composite trading. Fannie Mae tumbled 27 percent. Lehman rose 82 cents, or 6.6 percent, to $13.22, ending a four-day slide.
More Costly
The order, published today, requires anyone making a short sale to first ``borrow or arrange to borrow'' the securities and then deliver them by the settlement date. It applies to shares in 19 firms including Citigroup Inc., JPMorgan Chase & Co. and UBS AG.
The order takes effect on July 21 and expires at the end of July 29. It may be extended for a total of 30 calendar days.
The SEC's proposal will raise the cost of short-selling a stock, said Gregory DePetris, co-founder of Quadriserv Inc., a New York brokerage that specializes in securities lending. ``There will be greater demand for shares,'' he said. ``It will make the process a little less easy.''
In traditional short selling, traders borrow stock through a broker and hope to profit by selling shares at a higher price and later buying them back at lower prices to repay the loan.
Naked short selling isn't necessarily illegal, unless authorities can prove fraud, such as a scheme to manipulate stock prices.
`More Efficient'
``Short-sellers in general help price discovery and make the market more efficient,'' said Warren Chiang, a fund manager at Mellon Capital Management, which oversees about $200 billion. ``But naked shorting isn't fair.''
U.S. Senator Charles Schumer questioned whether the SEC should restore the so-called uptick rule, which barred traders from short-selling stocks when prices are falling. The rule, scrapped in June 2007, was implemented after the Great Depression to prevent raids on companies.
While the regulator is considering ``some other kind of price test'' to regulate short selling, it has no plans to reinstitute the uptick rule, Cox said. ``It was just very clear that that rule no longer mattered,'' he said.
To contact the reporters on this story: Jesse Westbrook in Washington at jwestbrook1@bloomberg.net; David Scheer in New York at dscheer@bloomberg.net.
By Jesse Westbrook and David Scheer
July 15 (Bloomberg) -- The U.S. Securities and Exchange Commission will limit the ability of traders to bet on a drop in shares of brokerage firms, Freddie Mac and Fannie Mae as part of a crackdown on stock manipulation, the agency's chairman said.
Christopher Cox told the Senate Banking Committee the agency will require traders to hold shares of the two mortgage buyers and the brokerages before they execute a short sale. The order, to be in effect for as long as 30 days, will bar the practice called naked short selling, in which traders avoid the financial cost of borrowing shares when betting they'll fall.
``Since it's impossible to police false rumors, the next best option for protecting fragile financial institutions is to halt short-selling for a time being,'' said David Trone, analyst at Fox-Pitt Kelton Cochran Caronia Waller. ``The SEC's action is at least a partial measure.''
The SEC is investigating whether trading abuses contributed to the collapse of Bear Stearns Cos. in March and the 80 percent drop in the market value of larger rival Lehman Brothers Holdings Inc. this year. Fannie Mae and Freddie Mac have each lost about 80 percent of their value amid speculation the mortgage-market crisis may push the firms into insolvency.
Hedge-fund manager William Ackman, who oversees $6 billion at Pershing Square Capital Management, is among those betting shares of Fannie Mae and Freddie Mac will fall. There's no indication he is engaging in naked short selling, in which traders never borrow shares from their broker or deliver the stock to buyers.
SEC Reluctance
The SEC had been reluctant to curb short sales ``because it would require a major retooling of the plumbing of Wall Street,'' said James Angel, a professor at Georgetown University studying short sales. ``It's only when the big Wall Street firms are threatened that the SEC does something about it.''
Cox said the SEC also will draft rules ``to address these same issues across the entire market.''
Short-sellers, who borrow shares betting that they'll decline, are spreading rumors about Lehman in an organized attempt to depress the stock, according to Richard Bove, bank analyst at Ladenburg Thalmann & Co. in Lutz, Florida.
``As with Bear Stearns, Lehman has been targeted by the fear- trade,'' Fox-Pitt's Trone in a report yesterday. Lehman should go private to avoid attacks by short-sellers, he said.
Freddie Mac, down as much as 34 percent today before Cox's comments, fell 26 percent to $5.26 in New York Stock Exchange composite trading. Fannie Mae tumbled 27 percent. Lehman rose 82 cents, or 6.6 percent, to $13.22, ending a four-day slide.
More Costly
The order, published today, requires anyone making a short sale to first ``borrow or arrange to borrow'' the securities and then deliver them by the settlement date. It applies to shares in 19 firms including Citigroup Inc., JPMorgan Chase & Co. and UBS AG.
The order takes effect on July 21 and expires at the end of July 29. It may be extended for a total of 30 calendar days.
The SEC's proposal will raise the cost of short-selling a stock, said Gregory DePetris, co-founder of Quadriserv Inc., a New York brokerage that specializes in securities lending. ``There will be greater demand for shares,'' he said. ``It will make the process a little less easy.''
In traditional short selling, traders borrow stock through a broker and hope to profit by selling shares at a higher price and later buying them back at lower prices to repay the loan.
Naked short selling isn't necessarily illegal, unless authorities can prove fraud, such as a scheme to manipulate stock prices.
`More Efficient'
``Short-sellers in general help price discovery and make the market more efficient,'' said Warren Chiang, a fund manager at Mellon Capital Management, which oversees about $200 billion. ``But naked shorting isn't fair.''
U.S. Senator Charles Schumer questioned whether the SEC should restore the so-called uptick rule, which barred traders from short-selling stocks when prices are falling. The rule, scrapped in June 2007, was implemented after the Great Depression to prevent raids on companies.
While the regulator is considering ``some other kind of price test'' to regulate short selling, it has no plans to reinstitute the uptick rule, Cox said. ``It was just very clear that that rule no longer mattered,'' he said.
To contact the reporters on this story: Jesse Westbrook in Washington at jwestbrook1@bloomberg.net; David Scheer in New York at dscheer@bloomberg.net.
8:45 am - DJIA break lower below 11,000
I think DJIA will reverse back on the strength on back on the volume last nite.
Tuesday, July 15, 2008
12:32 pm - FKLI has formed a double bottom !
Look to short @ 1118 or higher for afternoon session.
Short for some of the clients and taken profits before lunch !
10:14 am - U.S. Stocks Fall, Led by Biggest Drop in Financials Since 2000
This is worrying as if banks in US are closing down !
By Elizabeth Stanton
July 14 (Bloomberg) -- U.S. stocks fell, sending financial shares to their biggest drop in eight years, on heightened concern that bank failures will spread.
Washington Mutual Inc. posted the steepest retreat ever and National City Corp. tumbled to a 24-year low after last week's collapse of IndyMac Bancorp Inc. spurred speculation that regional banks are short of capital. The companies said they've seen no unusual depositor activity. Fannie Mae and Freddie Mac erased an earlier rally fueled by Treasury Secretary Henry Paulson's plan to help rescue the largest U.S. mortgage lenders.
The declines pushed the Standard & Poor's 500 Financials Index of 89 companies down 6.1 percent, its steepest plunge since April 2000. The S&P 500 slid 11.19 points, or 0.9 percent, to 1,228.3. The Dow Jones Industrial Average lost 45.35, or 0.4 percent, to 11,055.19. The Nasdaq Composite Index slipped 26.21, or 1.2 percent, to 2,212.87. More than two stocks dropped for each that rose on the New York Stock Exchange.
``The factors that affected IndyMac are not isolated; while they're probably more severe, the pressures are evident in other financials,'' said Alan Gayle, the Richmond, Virginia-based senior investment strategist at Ridgeworth Capital Management, which oversees about $74 billion. The Treasury's plan for Fannie Mae and Freddie Mac is ``encouraging, but it does suggest that credit availability is going to remain somewhat impaired and borrowing costs will likely be higher.''
`Unmitigated Disaster'
Benchmark indexes rallied more than 1 percent each at the open as confidence in the banking system was boosted by Paulson's plan to ask Congress for authority to buy unlimited stakes in Fannie Mae and Freddie Mac and provide loans to them. Fannie and Freddie erased their advance after investor Jim Rogers said in a Bloomberg Television interview that the government's proposal was an ``unmitigated disaster'' and Goldman Sachs Group Inc. predicted the shares would resume falling.
The S&P 500 fell to the lowest level since June 2006, extending its drop from an October record to almost 22 percent. Record fuel prices and more than $400 billion of writedowns and credit losses globally stemming from the U.S. housing market collapse have dimmed the outlook for corporate profits.
Washington Mutual retreated $1.72, or 35 percent, to $3.23. The biggest U.S. savings and loan is seeing ``business as usual'' with no unusual depositor activity, spokesman Derek Aney said in an interview. National City, Ohio's biggest bank, tumbled 65 cents, or 15 percent, to $3.77 even after saying there was ``no unusual depositor or creditor activity.''
Lehman Brothers Holdings Inc. in a report today predicted a rise in loan-loss provisions at Washington Mutual for balance- sheet losses that may total $26 billion this year.
`Substantial Credit Losses'
Zions Bancorporation, the Salt Lake City-based lender with operations in 10 Western U.S. states, fell 23 percent to $19.73. First Horizon National Corp., Tennessee's biggest bank, slumped 25 percent to $5.04.
Goldman Sachs analysts recommended investors sell Zions and predicted dividend cuts may be in store for Zions, SunTrust Banks Inc., Comerica Inc. and Bank of America Corp.
``Substantial credit losses are going to have to be absorbed,'' said Henry Herrmann, chief executive officer of Waddell & Reed Financial Inc. in Overland Park, Kansas, which manages about $65 billion. ``We're right on the cusp of earnings season, and more and more of this is going to be manifest.''
M&T Bank Corp., the lender whose second-largest shareholder is billionaire investor Warren Buffett's Berkshire Hathaway Inc., plunged 16 percent to $58.82, its biggest drop since 2000. Second-quarter profit at the Buffalo, New York-based bank tumbled 25 percent on losses tied to mortgages.
Wachovia Corp., the fourth-largest U.S. bank, fell 15 percent to $9.84, a 17-year low, after being cut to ``neutral'' from ``buy'' at UBS AG, which predicted a dividend reduction to 1 cent and the sale of $5 billion of common shares.
IndyMac Seized
IndyMac became the second-biggest federally insured financial company to be seized by U.S. regulators after a run by depositors left the mortgage lender short on cash last week. The Pasadena, California-based company, which specialized in a type of mortgage that didn't require borrowers to document income and lost almost $900 million when borrowers fell behind on payments, was taken over after U.S. markets closed on July 11.
The successor entity, IndyMac Federal Bank, will cover 50 percent of uninsured deposits initially, its Chief Executive Officer John Bovenzi said yesterday. All accounts up to $100,000 will be fully insured under the Federal Deposit Insurance Corp.
Freddie, Fannie
Freddie Mac fell 64 cents, or 8.3 percent, to $7.11 after earlier rallying as much as 26 percent. Fannie Mae lost 52 cents, or 5.1 percent, to $9.73. The shares had surged 32 percent earlier. Paulson's proposal, which the Treasury anticipates will be incorporated into an existing congressional bill and approved this week, signals a shift toward an explicit guarantee of Fannie Mae and Freddie Mac debt.
The Federal Reserve separately authorized the firms to borrow directly from the central bank.
Goldman analyst Daniel Zimmerman said the plan won't benefit shareholders. He lowered his share-price forecast for Fannie Mae to $7 from $18 and for Freddie Mac to $5 from $17.
Fannie Mae tumbled 45 percent last week and Freddie Mac sank 47 percent on concern the two companies, which own or guarantee about half of the $12 trillion of U.S. mortgages, may require a bailout that would wipe out shareholders.
`Sad Commentary'
``It's a fairly sad commentary that the government has to step in and take these actions,'' Liam Dalton, New York-based chief executive officer of Axiom Capital Management, which oversees $1.3 billion, said on Bloomberg Television. ``The overall market probably remains in a malaise, because the market is very respectful of the fundamental issues.''
The S&P 500 Financials Index to its lowest level since October 1998, two months after Russia's debt default sent the index down 23 percent in a month.
Apple Inc. rallied $1.30 to $173.88. The company sold 1 million iPhones in the first three days following the new model's debut. Piper Jaffray & Co. analyst Gene Munster estimated sales of 425,000 devices in the first three days.
``IPhone 3G had a stunning opening weekend,'' Chief Executive Officer Steve Jobs said in a statement today, after starting sales of the device in 21 countries July 11. It took 74 days to sell a million of the original iPhone, which was only available in the U.S. at first, he said.
`Positive Sign'
Anheuser-Busch Cos. rose 37 cents to $66.87. InBev NV will buy Anheuser-Busch for $52 billion, putting the maker of Budweiser beer under Belgian control after almost 156 years as a family-run company. The $70-a-share transaction ends a month of court fights and public denunciations as InBev tried to acquire the St. Louis-based beermaker in a hostile takeover.
``A takeover such as the InBev-Anheuser one is a positive sign,'' Thomas Tilse, head of portfolio strategy for private clients at Cominvest in Frankfurt, which has the equivalent of $101 billion under management, said in a Bloomberg Television interview. ``Such mergers and acquisitions show that stocks are still very attractive and cheap at their current levels.''
Allegheny Technologies Inc. rose $4.86, or 9.7 percent, to $55.21, the biggest advance in the S&P 500. The specialty-metals producer that supplies titanium to Boeing Co. said second-quarter profit was $1.65 to $1.67 a share, exceeding the $1.52 average analyst estimate in a Bloomberg survey.
Alcoa Inc. gained 30 cents to $34.94. Goldman Sachs Group Inc. upgraded the third-largest producer of aluminum to ``buy'' from ``neutral,'' citing growing aluminum consumption in China that could offset shrinking demand in the U.S.
To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net. Last Updated: July 14, 2008 17:14 EDT
By Elizabeth Stanton
July 14 (Bloomberg) -- U.S. stocks fell, sending financial shares to their biggest drop in eight years, on heightened concern that bank failures will spread.
Washington Mutual Inc. posted the steepest retreat ever and National City Corp. tumbled to a 24-year low after last week's collapse of IndyMac Bancorp Inc. spurred speculation that regional banks are short of capital. The companies said they've seen no unusual depositor activity. Fannie Mae and Freddie Mac erased an earlier rally fueled by Treasury Secretary Henry Paulson's plan to help rescue the largest U.S. mortgage lenders.
The declines pushed the Standard & Poor's 500 Financials Index of 89 companies down 6.1 percent, its steepest plunge since April 2000. The S&P 500 slid 11.19 points, or 0.9 percent, to 1,228.3. The Dow Jones Industrial Average lost 45.35, or 0.4 percent, to 11,055.19. The Nasdaq Composite Index slipped 26.21, or 1.2 percent, to 2,212.87. More than two stocks dropped for each that rose on the New York Stock Exchange.
``The factors that affected IndyMac are not isolated; while they're probably more severe, the pressures are evident in other financials,'' said Alan Gayle, the Richmond, Virginia-based senior investment strategist at Ridgeworth Capital Management, which oversees about $74 billion. The Treasury's plan for Fannie Mae and Freddie Mac is ``encouraging, but it does suggest that credit availability is going to remain somewhat impaired and borrowing costs will likely be higher.''
`Unmitigated Disaster'
Benchmark indexes rallied more than 1 percent each at the open as confidence in the banking system was boosted by Paulson's plan to ask Congress for authority to buy unlimited stakes in Fannie Mae and Freddie Mac and provide loans to them. Fannie and Freddie erased their advance after investor Jim Rogers said in a Bloomberg Television interview that the government's proposal was an ``unmitigated disaster'' and Goldman Sachs Group Inc. predicted the shares would resume falling.
The S&P 500 fell to the lowest level since June 2006, extending its drop from an October record to almost 22 percent. Record fuel prices and more than $400 billion of writedowns and credit losses globally stemming from the U.S. housing market collapse have dimmed the outlook for corporate profits.
Washington Mutual retreated $1.72, or 35 percent, to $3.23. The biggest U.S. savings and loan is seeing ``business as usual'' with no unusual depositor activity, spokesman Derek Aney said in an interview. National City, Ohio's biggest bank, tumbled 65 cents, or 15 percent, to $3.77 even after saying there was ``no unusual depositor or creditor activity.''
Lehman Brothers Holdings Inc. in a report today predicted a rise in loan-loss provisions at Washington Mutual for balance- sheet losses that may total $26 billion this year.
`Substantial Credit Losses'
Zions Bancorporation, the Salt Lake City-based lender with operations in 10 Western U.S. states, fell 23 percent to $19.73. First Horizon National Corp., Tennessee's biggest bank, slumped 25 percent to $5.04.
Goldman Sachs analysts recommended investors sell Zions and predicted dividend cuts may be in store for Zions, SunTrust Banks Inc., Comerica Inc. and Bank of America Corp.
``Substantial credit losses are going to have to be absorbed,'' said Henry Herrmann, chief executive officer of Waddell & Reed Financial Inc. in Overland Park, Kansas, which manages about $65 billion. ``We're right on the cusp of earnings season, and more and more of this is going to be manifest.''
M&T Bank Corp., the lender whose second-largest shareholder is billionaire investor Warren Buffett's Berkshire Hathaway Inc., plunged 16 percent to $58.82, its biggest drop since 2000. Second-quarter profit at the Buffalo, New York-based bank tumbled 25 percent on losses tied to mortgages.
Wachovia Corp., the fourth-largest U.S. bank, fell 15 percent to $9.84, a 17-year low, after being cut to ``neutral'' from ``buy'' at UBS AG, which predicted a dividend reduction to 1 cent and the sale of $5 billion of common shares.
IndyMac Seized
IndyMac became the second-biggest federally insured financial company to be seized by U.S. regulators after a run by depositors left the mortgage lender short on cash last week. The Pasadena, California-based company, which specialized in a type of mortgage that didn't require borrowers to document income and lost almost $900 million when borrowers fell behind on payments, was taken over after U.S. markets closed on July 11.
The successor entity, IndyMac Federal Bank, will cover 50 percent of uninsured deposits initially, its Chief Executive Officer John Bovenzi said yesterday. All accounts up to $100,000 will be fully insured under the Federal Deposit Insurance Corp.
Freddie, Fannie
Freddie Mac fell 64 cents, or 8.3 percent, to $7.11 after earlier rallying as much as 26 percent. Fannie Mae lost 52 cents, or 5.1 percent, to $9.73. The shares had surged 32 percent earlier. Paulson's proposal, which the Treasury anticipates will be incorporated into an existing congressional bill and approved this week, signals a shift toward an explicit guarantee of Fannie Mae and Freddie Mac debt.
The Federal Reserve separately authorized the firms to borrow directly from the central bank.
Goldman analyst Daniel Zimmerman said the plan won't benefit shareholders. He lowered his share-price forecast for Fannie Mae to $7 from $18 and for Freddie Mac to $5 from $17.
Fannie Mae tumbled 45 percent last week and Freddie Mac sank 47 percent on concern the two companies, which own or guarantee about half of the $12 trillion of U.S. mortgages, may require a bailout that would wipe out shareholders.
`Sad Commentary'
``It's a fairly sad commentary that the government has to step in and take these actions,'' Liam Dalton, New York-based chief executive officer of Axiom Capital Management, which oversees $1.3 billion, said on Bloomberg Television. ``The overall market probably remains in a malaise, because the market is very respectful of the fundamental issues.''
The S&P 500 Financials Index to its lowest level since October 1998, two months after Russia's debt default sent the index down 23 percent in a month.
Apple Inc. rallied $1.30 to $173.88. The company sold 1 million iPhones in the first three days following the new model's debut. Piper Jaffray & Co. analyst Gene Munster estimated sales of 425,000 devices in the first three days.
``IPhone 3G had a stunning opening weekend,'' Chief Executive Officer Steve Jobs said in a statement today, after starting sales of the device in 21 countries July 11. It took 74 days to sell a million of the original iPhone, which was only available in the U.S. at first, he said.
`Positive Sign'
Anheuser-Busch Cos. rose 37 cents to $66.87. InBev NV will buy Anheuser-Busch for $52 billion, putting the maker of Budweiser beer under Belgian control after almost 156 years as a family-run company. The $70-a-share transaction ends a month of court fights and public denunciations as InBev tried to acquire the St. Louis-based beermaker in a hostile takeover.
``A takeover such as the InBev-Anheuser one is a positive sign,'' Thomas Tilse, head of portfolio strategy for private clients at Cominvest in Frankfurt, which has the equivalent of $101 billion under management, said in a Bloomberg Television interview. ``Such mergers and acquisitions show that stocks are still very attractive and cheap at their current levels.''
Allegheny Technologies Inc. rose $4.86, or 9.7 percent, to $55.21, the biggest advance in the S&P 500. The specialty-metals producer that supplies titanium to Boeing Co. said second-quarter profit was $1.65 to $1.67 a share, exceeding the $1.52 average analyst estimate in a Bloomberg survey.
Alcoa Inc. gained 30 cents to $34.94. Goldman Sachs Group Inc. upgraded the third-largest producer of aluminum to ``buy'' from ``neutral,'' citing growing aluminum consumption in China that could offset shrinking demand in the U.S.
To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net. Last Updated: July 14, 2008 17:14 EDT
8:47 am - FKLI open lower due to gap down in anticipating lower cash market !
DJIA is also heading low and the major support 11,170 becomes its resistance.
Subscribe to:
Posts (Atom)
Posts
