Key Buy Up Trade

Today, 10 January 2010 is a bloody day for STI with the index dropped more then 30 pts. The plunge not just confined to Jardine Group of companies, but rather broadbase. Nontheless, some are spared. One of them is UIC.

Being an illiquied stock, the chance for it to survive the first wave of general market sell-off is high. However, as an investor in UIC, I think the price action today is remarkable because it hit the new high when the market under intense selling.

If you look at the 3 trades at the late afternoon which path the way for the post-crisis record high at $2.65, obviously someone is not shaken by the general market sell-off. Instead, somebody is executing an pre-planned agenda.

We may need to wait for weeks before we knowing who has bought at this price from the announcement, if they are major shareholder.

This year we have have M&A activities like Maybank buying Kim Eng. I believe someone will take action before the properties price at Marina Bay shot up pending the full development of the facilities and attraction there.

The dust finally settled at $2.61, up 2 cents.