KLCI may try 1,700 but I believe is a very strong resistance. All major markets are resting after strong run lately. We continue to suggest higher defensive strategy while stay invested in undervalue stocks. Most market will bias to upward trend but strong resistance is everywhere.
We have record low winter temp in China and we have eecord high temp in Australia. Bush fire destroyed more forest and added less defense against global warming.
Any investment implications? Demand and supply rule may affect agriculture even more.
Some of the winners today include run up on DKSH, RHBCap and UMW. We continue to recommend a hold until further adjustment on valuation.
Our picks has received some good support in the first week of 2013. Bingo, Sunway, Allianz, Alaqar has picked up momentum. We see it as good sign and we re-affirmed our picks will have a good year ahead.
We believe if positive signals flooding, we may see a small bull now in Q1 and KLSE should pass through 1700. However, we remain our stand that the market is not cheap any more. We believe HSI may move higher together with Dow Jones than KLSE as their valuation still better to justify than us. Mathematically, we will still defensive with selective investment. We will now increase ratio of cash, commodities vs REITs and equities. As REIT has move north substantially in past one year across whole Asia. Some yields dropped below 5% which we believe is not attractive vs its risk of its asset price level. But there are still jewels in the market for sure.
Due to too many trading transaction by the fund. We will from now exclude portfolio transactin update but focus into weekly update. thank you