We believe oil prices forming bottom

The momentum is still strong to pressure oil prices. But we believe the bottom is forming.  I do not know how low it can go. We forecasted USD 40. But won’t be too far away. Catalyst c an be here anytime.

We will stay quiet a while after Oil dipped below USD 40 and Dow Jones dropped more than 300

Even though our forecast that oil and RM will recover in 3 to 6 months.  Oil dropped below USD 40 and may try support of USD 35 sparked more energy sell-off.

We will do nothing unless we see  any bargain value in oil related stocks or our top picks. 

Last week we have bought Gold and ALSREIT as part of our enhancement in our asset oriented portfolio.

Year-end December rally suppose to be in town. Oil crisis continue to drag down the tradition.  Possibly January will be a better bet for a good month ahead. 

We started to hold PBA

Yes – we do agreed after a few research houses recommended PBA due to water tariff hike.  PBA can be a good company to be included in our utilities portfolio.  We started buying mildly today.

OPEC failed to agree on stabilisation but not for long

Iran will commit to pump more and we don’t see OPEC in near term also have strong intention to reduce production. However, we think USD 40 per barrel is a strong support bottom.

For short term oil price may still be stay at low. But we believe definitely not for long. 

We will bargain hunt MNRB if dip below RM 3.00

A poor quarter plus non detail explanation sparked sell off of MNRB.  However, a loss of to date less than 10 sen is making MNRB price heavily undervalue.   A fair correction should be around 10% from RM 3.50.  Thus, we may bargain hunt if price dip below RM 3 again.

We sold Apex again for CIMB

We believe a corporate exercise is on its way for Apex.  A price control exercise by parking certain amount of shares at RM 1.90 above.  We forecast a takeover, merger, placement or privatisation is on the card.

With the current parking of price at RM 1.90 and above.  The exercise may be at RM 2.1 and above but not too far away.

We sold some and exchanged all to CIMB at RM 4.540

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