Both sessions crossing and closed at 1,600 with well asorbed profit taking. We believe the market now will steadily move towards 1,620 above
From a 12 months period plus recent buying volume piling up, we will continue to monitor and add Teledata position as long as below SGD 0.015
The current KLCI level is not really supported by real fundamental. Some may say is election, some say local fund is buying up, some say it is foreign hot funds. But who care!?
We do not like the current index level unless we see a good EPS ratio across the board between 8-12 times. As at 1500 level we are cautiously optimistic. At 1600 level we will turn bias to defensive play. We start to build cash position and severely reduce speculative stocks involvement.
Beside of the top 5 new picks, we will mostly concentrate on REITs and cash.
Revised top picks due to PE and EPS adjustment, now we favour:-
We will use all amount disposed on AFG and STAREIT to re-enter Tomei, STAREIT and Stemfle.
With its PE of 11-12 times. We believe the current price level reflected fair value. We will keep cash for now