KLSE persisted buying lift market over 1700

Selective persisted index linked buying continue to push KLCI created new high. In tandem with major markets KLCI may be doing more catch up role to reflect the world equities’ trend.

Allianz broke RM 9.00, Spritzr crossed RM 1.20 at one time. Multico started to attract buyers. Favco crossed RM 2.20 and research houses recommended at RM 3.00 above.

We believe the market will still gradually move up. Due to BoJ actions, world equities may run another week before calming down for digestion.

We continue recommend defensively stay invested strategy. Slightly reducing our fresh capital towards equities.

When stocks do well everywhere – Gold fall

Perhaps not just only Gold but any stable fix income instrument like REITs. Gold has corrected to below 1,500 level and may be further in coming week.

Short to mid term as money becomes smaller, liquidity rushed to equities for better return. As statistical data still pointing to weakness of economy. Gold at it’s many years peak start to correct.

However, as we position gold as contingency fund. We will continue to recommend buy in of Gold monthly to leverage a good price. We still like Gold as we believe this ancient currency until today still the best hedge option available. But only as contingency fund. We still optimistic about Gold in long run.

2nd & 3rd liners will catch up after GE13

From 1500 – 1700, main movers are index linked stocks. Retail has been extremely cautious. If North Korea tension not worsen, China bird flu is to be contained. We believe any result of GE13 if without people that cause chaos. The buying interest will spur to 2nd and 3rd liners.

Three (3) things If you do – I vote for you

1) Balance of budget – I am not interested how much free thing anyone promise to offer nor lowering tax. As these are all basis result of a good country. Also, deficit budget known by majority is promoting growth. But in this QEs era. I want a government that can balance the budget but still able to help people from all classes.

2) Use Professional – There is a saying that an idiot is worst then corruption that still deliver. Even though I do not like corruption. But looking into many of our problems today like social imbalance, quality of education, crime rate, social problems involved foreign workers, financial and so on. All are interrelated from not using a professional minister but by appointing base on party and vote.

You can still pay all of these party people well. When it comes to managing the department, you need a PRO. If there is really no PRO, you got to figure out who has experience before you put any member of the party become a minister.

E.g. Does crime rate actually lowered due to more police on the street? Or should we look at the root cause of the problem for people who commit crime?

Most Countries I have visited have good tourist information counters. I seldom see one in Malaysia.

Can our police summons given discount again and again?

Can we have a point deduction traffic license policy?

Can we reserve jobs for the local before getting foreign workers, if already cannot fill with local workers, any point to create another 3 Mils jobs where the private sectors also will do the same?

Easily the list can be long……

3) Truth behind racial issues, Malaysia got no issue except you keep mentioning it.

Does Chinese or Indian race really don’t agree to certain rights of Malay? Does all three races really not well?

I have got many Malay and Indian friends. We always respect each other and understand the rules of survival together. Special rights are to help the Malay especially the poor is ok for everyone of us. Except when the Elites abused it.

How many times I need to be hurt with the game plan of “Divide and rule” by conservative Groups. I am a Malaysian Chinese that contribute to this country and I need to hear stuff like “Go Home”. Isn’t it Malaysia is my home?

The result of race base politics in last few years really sadden me and damaged my support for the existing government.

Malaysia is not just for Malay, also not just for Chinese and Indian. It is for iban, Portugis, Kadazan and even Filipino and Thai moved to West Malaysia and Sabah. Even more….

So my vote is simple to be earned. If you try to solve these three.

PS: Any side who can propose an ambulance reach in 30 mins is a bonus

KLCI persisted buying in tandem with Other markets

Beside of Hang Seng move south due to renew concern of new birdflu case in China. Nikkei up more than 4% today after BOJ aggressive QEs like strategy.

Looks like GE13 worry is completely swallow by smaller money effect. Many investors that expect market to have a big pull back may be surprised by the strength of KLSE.

We also seen many properties and REITs counters moving may due to follow up reaction from BOJ action to be aggressive in easing further. Everyone now start to aware. Crash or not crash, money is already become and will even further smaller. More cash will be in asset related investment in coming week.

We believe range bound but persisted buying will lift market higher.

We bought Bingo HK today at HKD 0.127 and A&M Realty that highly undervalue asset related counter.

Impact of BOJ unprecedented stimulus plan

We are not sure if more agressive printing money and QEs will help the economy for the current situation. One thing is for sure. If impact is positive, inflation is accompany together. If bad impact is coming, money will be no value. Properties, commodities even stocks will suffer a while and come back even higher. Don’t be a frog that being gradually cook from cold to hot water. Stay invested but defensively and asset oriented.

Favco, Sunway and Maybank did well this week

Continuous buying on high yield and undervalued stocks pushed Favco to RM 2.40+, Sunway RM 3.16 and Maybank closed at RM 9.700.

We continue recommend a hold for these three but will start reduce position for Favco and Sunway if PE getting expensive.

KLCI touched 1700 a day after Parliament dissolved

As expected the market already digested who will win the election. Potentially may be our local funds buy up as agenda. No one knows. We don’t expect big correction but KlCI unexpectedly stronger than we expect. The market is now going further to reflect money becomes smaller. 2nd liners are pending for catch up.

GE13 announcement & market first reaction – 40 points down fall but we are nibbling

We take this chance to add in Kimlun and Stareit today. We recommend gradual buy in if market fall. Break your emergency fund in 5 stages and bargain hunt with every 30 points down fall of KLCI. We do not expect a big correction with maximum of KLCI 1550 as strong support.

If no hidden agenda behind or unforseen reasons, market already digested all possible actions. Second key reason is money is getting smaller. You dont buy stocks, REITs, property then what do you buy? As FD is 2-3% and CPI is 2-3% with many non CPI above 3% even you put in the bank.

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