Manageable risk and we continue to pick up mildly MBSB-C2 today.
KLCI will resume bullish trend testing 1800 after Hari Raya
We continue to favour a gradual test to 1800 above after Raya. Retails should start final round of accumulation. We see strength to continue till year end amid global uncertainties.
We bought MBSB C2 mildly at 190/195
MBSB C2 should have a good potential targeting 400 if MBSB reaching 1.60 before year end. Well it is not our style to invest heavily in Call Warrant but we think a good target with right timing potential.
MBSB merger to obtain a banking license is positive – Buy if still below RM 1.5
The reason is simple. More products options. Less limitation to financing various industrial and infrastructure projects. Lower cost of fund. Improve deposit rates. With the impairment about to be finished by year end. Profit expected to further improve and potentially write back. It is a definite buy call.
HSBC investing USD 250 Million to build ASEAN hub in KL looks positive
The result will start to spur more direct investment to the country. This move looks positive for long term to Malaysia. Transforming further to a service oriented economy. Branded and promising. This is by far the best news I believe for Malaysia. We continue to look positive on Ringgit, Stocks and business in the country.
FED increased rate unexpectedly and USD unexpectedly idle
In this scenario, it is going to be really well as the rate hike is longer sparking strong dollar rally. Market fully digested and USD set to be weaker in coming months.
Aussie dollar may face pressure after recent new measures on property market
Review on policies on immigration. New measures on foreign property ownership including vacant tax. Higher stamp duties to slow property prices growth as to one of the world most expensive in Sdyney.
As minerals prices on export remain sub due. Also China new policies to curb money flow out from the country. All likely to point to a slower demand of its properties and at the same time reducing its economy policies dependency that based on migration. During the transformation I expect a weaker Aussie dollar in near term.
Portfolio overview and updating CIMB and UMW to hold
Mild buy on weakness
KEN, KSL, SUNWAY, OSK, OSK Warrant, INSAS, MNRB
CIMB, UMW, EIG, OCB, PARAMOUNT, AFFIN, AHEALTH, RHB BANK, ALLIANZE, SPRITZER, TASCO, LUXCHEM, TOMEI
Long Term Hold
Reduce on Strength
CYPARK, KHIND, FOCUSP
We continue to favour KLCI will break 1800 level before year end
Recovering RM and continuous modest growth in GDP. Incresingly returning corporate profit to companies. The shift move global investment back to emerging markets. Recovering crude oil price and a series of foreign investment will boost KLCI above 1800 before year.