FBM-KLCI will look for fresh lead after CNY

We believe KLCI will pick up some activities after CNY. However, due to general election looming. KLCI will continue range bound in tight range to lower before final result is known.

North Korea nuclear test unexpectedly calm and no show from other countries of Asia. We will temp give it a pass and turn back to defensively stay invested. Any dip below 1600 will trigger our gradual bargain hunting.

We start monitoring YTL as its share price corrected to below RM 1.60. YTL Corp still on its growth path and we will buy if it is below RM 1.50 as good price to us.

Bingo – Journey to the West brings good news

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I congratulate the team with a 6 days RMB 500 mil worth of tickets sold and still counting. It has broken Transformer 3 single day record in China. I watched it in KL and I do like it except the original movie I believe recorded in Mandarin. Thus, there is a slight disadvantage when watch in Cantonese.

I believe this is the first multi-vits boot for Bingo. A recent result still in loss but narrowed. We believe the next quarter onwards will have a good chance to turn around. We will buy in further below HKD 0.250.

Apple is definitely struggling

After Apple announced to consider huge cash dividend pay back. Follow up by Apple looking into watch phone. Yesterday Tim quoted Apple still has magic. We also hope the once innovative driven world leader will not be another Nokia or Blackberry.

Flash – N. Korea 3rd Nuclear Test

The young inherited chief stun the world by having the 3rd nuclear test that the scale believe to close to Hiroshima incident.

This is not good adding the current islands dispute and pushing the tension to a highest level. The worst is man made tension as it will against all fundamental.

Before the situation become clear, we suggest temporally stop all investment activities from defensive but stay invested.

We suggest a modest buy in if KLCI drop below 1600

On Wednesday, KLSE will reopen after lunar Chinese New Year celebration. Following with a week or two will probably the announcement of a long waited General Election. This time is a little jitter and important as after many hip and hop from both ruling party and opposition. The chances are almost equal this time round. It will be a close call competition between both.

As we continue to adopt defensively stay invested strategy. We think money get smaller and a potential global crisis may come again. Thus we will continuous favor asset or commodities related counters. Of course with a reasonable valuation of max PE 10 times as our target.

A drop during the election will give a good chance to enter the market in stages. Split your fund into few pieces and start bargain hunting in cautiously weekly basis.

FBMKLCI Mamboo for clues before election

As general election is going to be near, the local market will be range bound and looking for clues. It is hard to predict which side will win the election or the market reaction towards the result. But I believed if market goes down further I will buy bargain if any. As money become smaller, local market should do well together with worldwide market. We continue our policy that defensively stay invested preference to asset and commodities related.

HSI to continue its uptrend

HSI tracing Dow Jones and China broadly economy has been doing well. We believe the trend will continue for sometimes. But we start to be careful as we will continue to adopt sell on unreasonable PE. We forecast HSI will move towards 24,000 above soon.

ABC closed at HKD 4.350, 丽新 continued its upward trend at HKD 0.370 and Bingo closed at HKD 0.270. Fortune REIT is testing it’s high of HKD 7.00 and 彩星 closed above HKD 6.80. HSI has outperformed our other portfolios in the week.

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