Stay invested but cautiously

The weaker than expected GDP announced by US come with a slight surprise.  As FED sees a stronger economy and end of monetary policy to spur grow. 

However, China is still our main trade partner and we think all eye will be on China. 

We therefore maintain stay invest but cautiously either into asset oriented or strategic business model that will keep your investment not to be wiped out if anything happens. However stay invested to generate ROI and cashflow to maintain investment power.

Luxem – from hold to strong buy

After its consistent results for the last few years. We believe the just announced result further shown a clear winner from a small cap to become a grow stocks. 

As of current price of RM 1.52 with a less than 10 PE and yield of 3% above yearly.  We change our view from hold by adding further in next coming weeks for our fund. 

MBSB post rights selling seen market tight of liquidity

1st issue is DOJ on 1MDB and 2nd with lowering oil price dampened sentiment.  But we are not aware of any new announcement by MBSB that have strong selling pressures. Except tight liquidity and excess rights that selling with a cost only at RM 0.59.  We think it is highly oversold and we continue to buy today at average of RM 0.695.  From this sentiment and we believe the pointer is very likely another 25 basis cut of interest before year end.

Oil down near USD40 but we maintain fair value is USD 60

Oil may test USD 40 but we maintain our view that the fair value of oil should be at USD 60.

Current market weakness dampened by 1MDB issues together with low oil price.  However we see this is an opportunity to continue buying into cut throat discounted price of many securities.

Interest rate cut continues for those need to catch up

If there is a country still with positive interest rate. A trend of catch up is on its way. We will see more interest reduction. I cannot say there must be a bear coming soon but rather it will depend on the impact of these moves. If economy still not able to revive after extensive rate cut. A final full stop will come. 

We added MBSB and MQREIT as market Soften

As market soften after 1MDM DOJ report. We found majority shares in the market traded negatively except certain bluechips dragged index up.

However, we like MBSB at this price and continue bought at a good price. We added MBSB at RM 0.740. 

Besides we also added MQREIT as KL-SG high speed link will in long term benefit more MQREIT’s KL Sentral’s portfolio.  We added at RM 1.21.  

Our next focus of MREITS will be both MQREIT and ARREIT. We believe both REITS have strategic portfolio. Good yield at the moment and trading below market trends and it’s NTA.

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