We believe if there is a qualification of emerging market. Asean is always our favourite given our understand of the markets. We like Malaysia, Thailand, Indonesia, Vietnam and Philippines.
RM to continue strengthen against USD
RM will continuous trading higher towards fair value of RM 3.80 vs 1 USD in our view. If devaluation is not an option by Bank Negara. We expect RM will further strengthen towards RM 3.50 vs 1 USD.
We expect market continue to trend higher gradually
We expect the market will move higher after rates lowered by a few central banks. Low cost funds prevail and continue to support a higher market.
Fed changing view within just 3 months
Fed tone lowered drastically compare to 3 months ago FED and lots of analyst forecasting several interest rate hike in 2016. A month ago more than 70% analysts forecasted oil will tank to USD 15 per barrel. If you listen to all these analysts. You are not going to make money from the market.
Record hot weather recorded everywhere
When this is a growing phenomena. Energy company will tend to do better. Environment friendly or green company will improve result across time. Our strategy will be the same with green companies as one of our focus.
Range bound market expected
We think the local market and global markets will try to find lead in coming week. Range bound in tight range with focus on corporate development.
We put a hold on MBSB after new right issues
We are not very convinced another cash call just after the previous exercise. The only comment is the management of MBSB lack of long term planning. We would like to call on a hold and change our status on MBSB to monitoring stage.
Markets will recover steadily for the week
We believe temporarily all uncertainty are fading. World markets will gradually recover after severe beaten down in February due to oil. To us which is unreasonable.
Financial markets are speculative in nature.
Oil from USD 110 to USD 27 and back closing to USD 40. Today financial markets are dominated by speculation that drive part a nation economy. The best strategy will always be the same. Know the value of the asset. When price low be brave to buy more and when price high be scary to dispose.
If you find something can have a return of more than 100% in 3 to 5 years. Forget about the volatility and just keep holding it.
We bought CIMB and ALSREIT
We are adding CIMB as below RM 5 for us is consider a good value. Given the bank is doing more to enhance share holder value. Covering regional ASEAN with a potential of world biggest market when adding China.
We also like ALSREIT recent results and it’s ptoperty portfolio.