AFAIK,Technical Analysis,no matter which method is used ,is based on the principle that one try to predict the future trend,or to be more specific,the price of an instrument/stocks,using the past history of price and volume and tabulated or extrapolated in various ways.Technical analysis therefore,totally ignore external factors that can affect the future trend or price.Example of these external factors are typhoon,coup-detat,force majore,profit and dividend record,discovery of new souce of supply or inventions etc.This inherent limitation renders TA,IMHO,not suitable for people who invest on a long term basis.

As for futures contract,there are basically two method of settlement on maturity of the contract.One is by physical delivery of the underlying commodity,and the second method is by cash settlement where all outstanding open positions are settled based on a settelment price determine by the Exchange.The determination of the settelement price is done either by the exchange or clearing house based on predetermined formula and parameters that is clearly spelt out in writing.It's done in a transparent way.This second method applies to most financial futures such as index and bond futures.
As a trader in a futures contract which hv the option for cash settlement,you hv the choice not to liquidate the open position and wait for finnal settlement by the exchange.

Sorry,I 'm not following,is there anything I can help out?

If you are looking for yield,there are many loan stock listed in Bursa which give you better interest return than Fixed Deposits. But be forewarned that you also have to take other factors into consideration if you choose to invest in these loan stocks,ie:

1.convertability and the conversion ratio into the mother share,

2.coupon rate,

3.duration to maturity,

4.rated by any rating agency,

5.borrower's ability to repay on maturity (for redeemable loan Stock)

I thuoght I was quite clear in my posting that there are several other factors to be taken into consideration when investing in loan stocks.

Of course,risk wise,it is much much safer to invest in Public bank and no one will doubt this.

In the abv posting,the first line itself I made it clear that if one is looking for YIELD,you can consider Loan stocks and I am not proposing that loan stock is in anyway safer than Public Bank.that's not what I meant and I apologise if my posting led you to that.

For discussion,let's look at Jetson loan stock.The price now is 60 sen and the coupon rate is 5%.That means for every Rm600(not including cost of acquiring)invested,the yearly interest receiveable is Rm50 and that is a return of approx. 8.5%.notwithstanding this ,if the price of the mother share goes down,you will lose out because the price of the loan stock should move in unison.Conversely,if the price of the mother share goes up,you will enjoy capital appreciation.

(Disclaimer:this is not a recommedation on the above securities and I am not responsible if any loss is suffered by any person due to this article/posting)

Let me add my 2 sen.

Dividend declared is based on par value.eg ,par value is Rm1,dividend of 15% will be Rm150 and after lessing out S108 credit of 28%,the receipient actually receives Rm 108.if the shareholding is 1000shares.

Dividend yield is based on mkt price.In the abv eg,if the mkt price is Rm3,the div yield will be 150/3000 viz 5% only.

As for the disclaimer I included,it is because only persons licensed under the Securities Industries Act can give advice on investment.Though I am licensed to do so,I woudn't want to be seen as providing advice in a community forum like LYN.In addition to that,I may be sued if someone actually invested based on my posting and the decision may actually turn bad.

You mean won't or could?

UGPM

UGPM =you got private message.

The licence refers to Investment Adviser's representative or Dealer's Representative licence under the Securities Industries Act.Dealer's representative is the term used in the SIA for Remisiers.

With the current stock market condition,these licenses are,in my opinion and without offence to anyone,worthless.

Are you also a Dealer's Representative?which firm are you from?

Yes,as long as you sell off the purchased stock before it is due for payment(currently ,3 business days after the date of purchased,also known as T+3,)the purchase contract will be offset against the selling contract and the resulting financial difference is known as contra profit or contra loss.This process is known as contra trading.

The above refers to Malaysian stock market.

I'm not sure.But some overseas mkt like Hong Kong,China or Taiwan hv shorter settlement period than Malaysia.


Of course!Conversely,if u made losses,you hv to pay.

Maybe dEviLs, the forumer that works in the clearing house can enlighten us on the limit up rules of Bursa.

During recession,interest bearing instruments should be the best bet as your capital will be protected.

Yes,instruments such as FD,Govt bonds etc


These instruments are only good at the time of recession.

At the time of recession,prices of most investments will be falling.So,one has to change the strategy from looking for best return to protection of capital.Under such circumstances,FD offers a risk free alternative where your capital will not be eroded.

I totally agree that during normal time,FD is not a good choice.

In Malaysian context:
Loan stock is a loan to a company ,normally interest bearing,either convertible into mother shares on maturity(convertible loan stock),or fully redeemable by the borrower company (unconvertible loan stock).This instrument will not become worthless as long as the mother share is listed and there is a ready market.

Warrants were formerly known as TSR(Transferable subscription rights).There r two types,one is issued by the company and is known as warrants per se.The other one is issue by a third party and is known as call warrants.Warrants and call warrants r actually a call option which give the holder rights to subscribe to the mother share at the strike price. Warrants and call warrants can be in or out of money ,if out of money,it will expire worthless.

This post has been edited by lklatmy: Feb 14 2006, 11:28 AM

Yes,but ith added flavour of convertability to mother shares.

If you hold 1000 units of Telekom CA(Call Warrant),you can excercise to subscribe 1000 units of Telekom shares at strike price of Rm9.21.

This post has been edited by lklatmy: Feb 14 2006, 11:45 AM

The determining factor is whether the warrant is in or out of the money.A lot of the warrants are actually exercised in Malaysian market.

Just to add,if a person is holding the mother share and the if the warrant premium together with the strike price is lower than the price of the mother share,then,oppotunity for arbitraging exist .This happens quite often in Malaysian mkt.

With effect from Y/A 2005(year of assessment) onwards, relief for Life insurance premium AND contributions to approved funds (eg EPF) shall be Rm 6,000 per annum.

Proceeds from life insurance,afaik,is not liable to income tax but is subject to estate duty.Pls correct me if i'm wrong.

Trading account for stock trading?If so, just go to your broker's office and fill up the closing account form.

Cash balance, if any,should be refunded to you.If there is any stocks in your CDS a/c,even 1 share,the CDS a/c cannot be closed unless you transfer the share to your CDS a/c with another broker.Only CDS a/c with no shares in it can be closed.

But you should have no problem in closing your trading a/c since CDS a/c can exists without a trading a/c,in which case,you can't trade anymore but can trasfer the shares out .

This post has been edited by lklatmy: Feb 16 2006, 08:42 AM