Don’t ask me what is the target. If RHB bank stock price recover and earning back to growth. Plus OSK properties are doing ok. OSK holdings should have a fair value of RM 2.50. You can work out what’s the fair value of the warrant then.
Hedge into inflation but how? We have mentioned many times. Buy companies stocks that can transfer inflation to retailers. Mostly KLCI components stocks can be hedged against inflation. Beside, buy property. As of now a yielded property. Have you seen a property value in 2017 can drop back to 1997 level? US QEs made money smaller and inflation will make money further smaller.
We continue to buy mildly into our top picks. We believe the flow of fun and stability of RINGGIT will spur further purchase. We still buying MBSB and KIPREITS.
No doubt Alibaba making Malaysia as a hub will create many benefits to local econony. Perhaps even ASEAN. However rally due to speculation of penny technological related stocks can be deadly. Many of those companies not even making a penny in their book. Without digital disruption and purely a speculative or gambling activities. Stay of out them unless your are insider if not you will be helping those shares holders clearing their stocks at a premium price.
According to past week some reports stated foreign funds were net buying whereas local funds and retailers are net sellers. I wonder either our local funds and retailers are so great that can ahead of a trend or indeed just only working on short to mid term margin.
We continue to buy into MBSB at RM 1.180. Market sentiment has improved substantially. We sold of some Hopson HK with both capital and exchange gain. As long as below RM 1.20 still a buy for us on MBSB.
If there is not much change of macro economy. US economy is expected to do well. Fed will raise rates gradually to regularize rate back to natural level.
This exclude a potential new policy by Trump that further infrastructure projects to be kicked start soon.
As such, our view of market recovery in 2017 getting close to solid. Our Forecast will be much weighted. Keep investing and the market should recover further before year end.
This means that the global largest economy is coming back. A food news for all markets.
Beside, strength for USD will stabilize further after this hike. Possibly another 1 to 2 round of hike may conclude the whole fiasco.
If just to maintain above 7 or 8 to please those financial speculators. I rather think it is import to ensure growth is moderate but stable. A right step for continuous soft landing and economic transformation approach. With both China and US are stabilizing their economies. We continue see improve sentiment for short to mid term.