4-Jan-2008 : BMPSI 9,593 up 304
BMPSI link for 4-Jan-2008 :
http://groups.google.com.my/group/BMPSI/browse_thread/thread/e65c76403a6d2294?hl=en
We expect all of you have notice that Bursa Malaysia's Composite open high early in this morning and edge even higher before the market close. If you take a closer look at the top gainers of Bursa Malaysia, not BMPSI counters, you will notice that the first 10 and more are plantation counters !! Palm oil plantation counters !!
We have nothing to oppose against palm oil, oil palm bulk or crude palm oil. We don't oppose farm subsidy as well. On the contrary, WE SUPPORT FARM SUBSIDY !!!!!
But farm subsidy shouldn't be the only and mandatory force that cause consumer goods' price hike !!
31 components of BMPSI rises today, but BMPSI only rises 304 !! This means UMNO leaders only push up palm oil plantation counters, so even 31 counters of BMPSI rises, the range of upward surge is not too great. Resting the entire nation's wealth upon one single cash crop : crude palm oil, is very dangerous.
DJIA may fall on 4-Jan-2008, so can Composite continue its upward rise on Monday ie 7-Jan-2008 ?? We are in serious doubt.
We have use the phrase "one-night-stand" to pin-point those counters of BMPSI that can only rise for one day, so do you think this "one-night-stand" phenomenon will impose upon Composite index as well ?? We strongly believe this is the case.
Therefore our view upon the performance of BMPSI is still pessimistic. We expect retail traders should take profit step-by-step from this momentary rises. You shouldn't expect share price will rise too much, except palm oil counters. The rise of palm oil counters is the work of UMNO leaders using entire nation's wealth !! If Singapore funds take huge advantage upon the price rise today, Malaysia Government is running out of cash !! Further issue more legal tenders will force RM to depreciate against US$ which is now depreciate against crude oil, not crude palm oil. In the second half of 2008, after general election hold in March, before Lee Kuan Yew's death, riots will wide spread all over Malaysia.
We don't think May-13 incident is anything scary. It could be a frightening story in the good old days, but not at the present moment. UMNO leaders refusal to stop consumer goods' price hike will eventually topple its own governance. Riots and more riots are spread all over Malaysia, just like Indonesia in 1998. All these happenings come from a single factor : Crude Palm Oil.
Crude Palm Oil is not Crude Oil. Crude Palm Oil cannot be used as bio-diesel. Today the price of 1 tonne CPO is much more expensive than 1 tonne of crude oil. This is the stupid act of UMNO leaders. A very stupid act indeed.
All the nations on this globe buy their CPO from Indonesia, not Malaysia. What is our Wawasan 2020 ?? All the dreams are vanished simply because UMNO leaders subsidy CPO too much to the extend that 1 tonne of CPO is now more expensive than 1 tonne of crude oil. So if we process 1 tonne of CPO to produce only 200 kg of bio-diesel, what is the price of bio-diesel then ??
We prefer to use diesel rather than diesel + bio-diesel, this is because the price of diesel + bio-diesel is much much more expensive than diesel !!
After UMNO leaders relentless subsidizing CPO, we will have the following strange phenomenon :
the price of diesel + bio-diesel > the price of diesel > the price of petrol !!
Why ?? Because diesel are being wasted as experiments for making bio-diesel !!
Can our TENAGA (5347) replace its burning of diesel by burning of CPO right now ?? Then we don't have to pay more on electricity bill !! Do you know what happen if TENAGA (5347) really change all its diesel by CPO ? Peninsular Malaysia will face a prolong blackout up to a year !!
So after above's analysis, and from the index movement of BMPSI, we strongly believe that today's rise is just another "one-night-stand".