Even though we are positive about the recovery. But uncertainty is all around. We have in the last month disposed retail and switched to essential industries. Mainly TNB and Astro.
The vaccination progress isn’t go with the plan. With evidence of mutation in India perhaps can be even elsewhere. This is going to be a prolong problem for a very long time.
The previous hypothesis of recovery is no longer in our favour. Thus, we turned cautious with the strategy of reduce debt, slow down new investment, turning more unproductive portfolio to essential like Tenaga, TM, Maybank, Alaqar REIT. Though Nestle and Dutch Lady are good choice but the PE is too high to be investable. Perhaps, Topgloves can be a good bet together even with Bursa.
We are disappointed with the information given by world government leaders and pharmaceutical Company on vaccines. With the current rate, there is no way that herd can be achieved in 2021.
Due to the recent force Labour issue by Topgloves. It stock price further selldown to RM 4.50 level which I think is a good time to reenter the stock. We have bought in average RM 4.55 today.
A range of rotational play lately in the market. Lately burning into ICT related counters. However, only if you calculated the risk and you are comfortable with it. If not, go for recovery stock in retail, tourism, mall, airlines to catch the wave. Personally I think banks are inevitable coming back strong soon.
If based on world vaccination program and the infected rate possibly creates natural antibodies. I think by next month or most April herd will be achieved starting even US. Hold you stock in Feb and only consider dispose in March.
We bought Padini-C8, Layhong-WA, Inari-C67, DRB-C10, Jaks-WB and disposed half CIMB-C69 and MBSB-C32. We will consider to add BAT-C2 or C3 and even Gpacket-WB. We will go aggressive in Q1 with adding warrants and dispose overvalued stocks as strategy.
Bitcoins spike to 20K and Oil price rebound with world market keep advancing gradually. The V or U are in the race but one thing for sure money is getting smaller and market will go further.
We have also started to be more aggressive by investing some Call Warrants. We bought MBSB C32, CIMB C69, Inari C67, Layhong WA and DRB C10
We reduced slightly AsiaBrand, Uzma, Parkson
Some run up given chances for us to reportfolio. But we did sell at good price for our appetites.
Recovery of oil prices and a sudden run up. We have sold some of them in lately. But we think the speculative sentiment will drive price further as Biden is good to oil price in short term.
I may be wrong. But I want to believe Biden won the presidential election can be a turning point of market to rebound. Key reason can be the effort to curb Covid 19.