Strong buying digested profit taking – KLCI to trade higher

We noticed substantial continuous buying has actually digested an expected profit taking week. We will not be surprise that KLCI may challenge all time high in short time.

We sold more HSI stocks last week. Locally we have sold some Tasco at RM 4.20 above and switched to MNRB. We also sold Hexza in its recent run up and also switched evenly to all our top picks.

Federal Government 11 Malaysia Plan to support green growth

Federal government is to spend RM 15 Billion to support green growth to be announced sometime next month. We believe this move will benefit two large green related companies. We have a buy call on Cypark Resources and Puncak as front liners to rip the benefit of this move by federal government. We bought Cypark again at RM 1.91 and Puncak at RM 2.68

Climate change portfolio review 2nd Quarter


1. Cypark – Hold – Target RM 4.00
2. Puncak – Hold – Target RM 3.50
3. HHGroup – Selling above RM 0.60
4. Union Steel (SG) – Hold – Target SGD 0.30
5. GCL-Poly (HK) – Sold and exited- Target HKD 2.50


1. Freetch (HK) – Sold and exited at HKD 1.50 as stock price uncertain
2. Analabs – Hold – Target RM 2.50

Our top picks in 2nd Quarter of 2015

1. MBSB – Long term buy target above RM 3.00
2. MNRB – Long term buy target above RM 6.00
3. Kawan – Buy below RM 2.00 and hold until RM 3.00
4. TWREIT – Buy with target for long term income – RM 1.60
5. AFFIN – Long term buy on target to be merged with fair value RM 5.00

IFCAMSC at RM 1.60 above is much expensive than Google

Many research house review and target IFCAMSC at RM 2.00 above. 3 years back IFCAMSC is almost an idle counter. A sudden expansion in China given a rocking story for its superb stock performance.

However, at PE of 30 times above. IFCAMSC is much expensive then Google and Apple. Except there is something on the table only those trading with news. It is one of the most expensive stocks in the tech market. With portal 5 forces measuring its supply chain business in China. It is also not hard to be replaced its position. We rather buy Apple or Google that already for us considered expensive.

L&G is gaining momentum

If L&G is able to sustain at above RM 0.550 during an expected mild correction week ahead. We believe L&G is set to move above RM 0.60. We suspect a corporate exercise is on the table. Potential bonus issue to reward chares holder as announced months ago.

KLCI will likely to head for a mild correction in tandem regional markets

We believed KLCI will trail HSI, Dow Jones and Euro markets for a mild correction. Support around 1830 – 1840. We sold some Plabs at RM 0.295 and HHgroup at RM 0.580. However we bought back into MBSB at RM 2.270 and MNRB at RM3.61.

RM will continues recover against all major market currencies as oil price starting to recover. We will start buying more AUD if stable around RM 2.80 – 2.82. AUD strengthen drastically due to an unexpected fall in unemployment rate.

We are net seller of the week of Hang Seng

We off loaded 0939 建設銀行 at HKD 7.80, 0717 英皇證券 at HKD 1.20, 0163 英皇國際 at HKD 1.93 besides of last updated profit taking. We think long term HSI may move up further due to China led Asia-infrastructure Bank. A move we believe China is trying to further liberalize RMB in long run. This will lift up funds that restrict to buy into RMB or A Share listed in HSI with ultra low PEs counters.

However, temporarily pull back is expected after the sharp rally. Also late night Friday policy announced by China authority dragged down HSI future. All pointing to a week for correction together with Euro Greece problem and Dow Jones Friday selloff.

We will hold HKD as cash for the moment and wait for a better opportunity.

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