This implied RM 1.84 is a good support and privatisation potential remained. If oil continue to stay below USD 80 per barrel. We think AA will got big potential to retest RM 3.00.
Household debt continue on the rise. This gives less chance for central bank to relax further. In this subdue retail sentiment in Malaysia. Any new measures to cool credits increase will slow retail further. A vital step buy will hit retail harder.
Government will spend further to boost infrastructure to contribute GDP in a bigger picture.
We will further reduce debt ratio this year. With our investment strategy focused into three areas below:
1. Asset and dividend oriented growth to large cap companies.
2. Climate change related companies
3. Agriculture and foods related companies
Before the next reason for another correction. Both the beaten currencies and equities markets in emerging markets will recover further.
From oil to gold, emerging markets to Dow Jones or Hang Seng Index. The whole markets becomes a volatile casino. However, this created a huge opportunity if you just follow a simple discipline of buy low sell high.
We have disposed all Aeon-CE warrant on its morning spike.