Rapid digestion and good news reversed markets

Markets have digested quickly some tightening measures by central bank of China and Fed.

KLCI recovered losses and closed towards 1780. We believe the week ahead will be range bound but 1800 is a very strong resistant.

We bought Gold, AUD and some equities when market weak. We forecast both Gold and AUD may test its new low and we are prepare to buy in this week.

We will listen to opportunity ahead!

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Added Gold, AUD, BSDREIT, SaizenREIT, Magna and Bingo

We have a routine reinvestment activities today adding Gold and AUD as both undergoes correction.

We added BSDREIT as we like agricultural related counter. We also added SaizenREIT as it is traded below NTA and has a yield of 7%.

We continue add in Magna as we believe its projects are to contribute positively to the bottom line.

We added Bingo also due to its profit advise result due tomorrow.

China market mini crash due to tightening

World market especially China got a mini crash today. Mainly due to tightening attempts by the central bank created market jitters.

If China is going to slow down, we believe the world market may be impacted. But I believe the leadership in China knows what is happening. There may be a wrong policy by the official or it is just part of the game plan for an early digestion by the market for a trend reversal.

We still maintain our view that even if interest rate start to reverse upward. It should be the good news that the market is growing again. Else, the world may enter another Great Recession again.

KLSE to range bound bias to lower

Continue the weak sentiment, KLCI will likely to range bound bias to slightly lower. But we think further downward is good to re attract value investors.

Whereas Ringgit is in roller coaster ride. But we think BNM is going to intervene to maintain it at RM 3.1 below. Our forecast on rate cut may not be coming at this point.

Fed slow down in easing caused more profit taking

After Fed comment that at sometime later this year. Fed may slow down easing policy due to confidence of economy is growing optimistically.

As we always believed, when Fed is easing, money becomes smaller. If Fed stop easing, economy is growing and creating demand. In both scenarios are good for equities except temp adjustment.

We also think that the world economy is not going to balance their books. This a disaster will come but we don’t know when. We believe a natural disaster will come even quicker to crash the market. Before these two we believe market will still be strong.

We have a theory why Spritzr sky rocket!

From our average recommended buy price below RM 0.900 to now RM 1.720 closing.  It is a splendid return for us excluding dividends received.

One theory we think why lately attract many interest.   We suspect is the haze.   More people drink more water.  Then more people remember this counter.  Fund manager also started to wake up.  No? You dont think so?  Of course us just a small joke. But we are happy with our pick.

We buy Peter Labs, Teledata and SaizenREIT

We added Plabs after we have disposed A&M. We continuous nibbling Teledata as we believe the increase of share of major share holder shown confidence.

We start holding SaizenREIT as it is an alternative to diversify of REITs portfolio with more than 7% yield return. Portfolio is in Japan focused in residential area.

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