Chip Eng Seng Update 2

Chip Eng Seng went on to close at 0.49 yesterday. In general construction counters continue to show weaknesses. This is due to a few reasons. One, the real estate market is cooling off faster than expected. Nothing new, I was caught off guard 10 years ago resulting over half million dollars loses.
Two, material costs is sky rocketing. Three, new projects are not coming. All the fads built into the prices has to reverse out. Fall out from US sub-prime saga.

I am expecting these counters to go down further in the mid term. With the overall market bear trend continuing, the bottom is not in sight yet. However, there might be some short re-bounce due to bargain hunting at highly oversold region. If it breaks 0.47, it should further test 0.42 and 0.30.