Reflections on Volume

Big volume without further upside equals distribution
Big volume without further downside equals accumulation

Volume tends to peak at turning points
Volume often precedes price movement
Volume is a relative study

Monday, July 19, 2010


2345 GMT [Dow Jones] Naim Holdings (5073.KU) may rise to test resistance at MYR3.43 (April 30 high) on news it signed memorandum of understanding with Libya's Al-Waatasemu Charity Foundation for possible project to build 50-story Gaddafi Tower in Tripoli; job may be worth about $300 million and take 3 years to complete, Chairman Abdul Hamed Sepawi quoted as saying by Bernama news agency; dealers say job is significant boost for the construction company as value of contract, annualized, equivalent to more than half its yearly revenue.

"It's positive, but investors will view it with some caution until it gets beyond the MOU stage and a letter of award is actually issued, because in the past, we have seen other proposed projects involving Malaysian companies in Libya being slow to get off the ground," dealer says. Naim ended +2.5% at MYR3.30 Friday. (

NB: The MOU shall lapse upon the execution of a formal contract of joint-venture for the project proposed to be signed on or before the 1st day of September 2010.

K & N Kenanga Berhad buy recommendation
K & N Kenanga Berhad buy recommendation

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