With the recent Q1 result announcement at 8.37 cents a share. The PE is stable and we believe the growth is inline again. With its target growth and renew intension to obtain bank license. We feel that EPF and MBSB is trying to create and unlock a strong value in the coming years. Together with its dividend reinvestment plan practise started. It will provide a better price stability to the counter. We call for a buy now with TP at RM 3.00 above.

The recent filings to SGX shown the management conflicts as Simon Eng that has joined the ownership ceased. We are buying again at SGD 0.005 and 0.006 lately. The major share holder Irene has bought back some shares from Simon Eng. We believe Simon also has openly sod down some of his shares recently.

While locally facing short lived political crisis. Before market open we see strong buying across index linked stocks. Even KLCI futures co-ordinated huge long position lifted KLCI higher and maintained strong momentum through out the day. At closing near 1880 KLCI created another record high in history tracing Dow Jones.

Honestly, we don’t think there is a link between Dow Jones record close to KLCI. We are surprise with many external and internal problems surrounding the financial market. We still see persisted buying across the board. We look around the whole ASEAN market and we found Indonesia, Thailand and Taiwan have the same pattern. It is definitely institutional buying but we are not sure if it is speculative or long term.

For short term, it should help on trading sentiment. We will turn short term positive and revive our range bound call. Market may challenge another record close if the buying persist.

In summary, we don’t recommend buying into the market. Perhaps, sell if the stocks over value but also let the profit ride by not disposing urgently. Perhaps, we will short back the market if KLCI near 1900. We see this level as strong resistance if there is not fundamental changes at the moment.

Need not to mention as World Cup Brazil will be a key factor that drag away many activities from the market. Together with several other factors like El Nino 2014 may hit early as June. Ukraine crisis may prolong and worsen. Local front may face continuous issues like Hudud to be proposed in Parliament for Kelantan.

Liquidity still buying into the market. But the drivers for another record breaking to 1900 is not an easy task. In short term I am not able to see a critical factor for this. Thus, there will be a quiet and range bound market for KLCI bias lower closing for the month.

We have disposed all 匹克體育 and switched to 855 中國水務 at HKD 2.490. We feel that 匹克體育 has little room to grow when China is facing a slow down. It is almost on par to our investment after average purchase. We decided to buy China Water as we continue to favour climate change related business.

Ukraine crisis is worsening and a huge divide between its people is about to explode.  We call for any buying activity next week to hang on.  Stay side line and perhaps selling short a contract of KLCI May 14 in short term.

Yellen and fellow colleagues decided to reduce bond purchases every month to USD 45 Billions from 55 Billions. Even though US 1st Quarter GDP growth is below expectation potentially to bad weather.

I personally like Yellen’s approach that understand the needs to exit but not too drastic for the current sensitive market. However, the decisive move also hinted a good quarter ahead for US. Thus Dow Jones may continue to hit record high. Other parts of the world will enjoy a good sentiment and continues its upward trend. Thus, ASEAN markets will benefit even more and more record breaking days ahead.

As of the moment, we will be over weight stocks in the region as short term strategy.