We continue to selling mildly Gadang at RM 0.935 and Tuneins at RM 2.12. Switched to AscendasHT at SGD 0.955, KHIND RM 1.500 and Plabs 0.170. We started to hold Plab due to its business model and EPS.

We have sold off some Gadang at RM 0.910 and some Tuneins at RM 2.100.

Continue in-flow of cheap funds i believe during this trade war between countries will push market up further.  

BNM may likely to follow all countries to lower Ringgit to support competitiveness of our export.   BNM endorsed lower RM across years. Since after election and BOJ strategy in lowering Yen.   RM has improved near 10% against certain currency.   If RM continue to improve with stable inflation, BNM will have 50% chance to reduce interest by 25% points in next monthly meeting.

We believe rotational play on selective counters will continue as of now. We recommend defensive investment but sell on unreasonable PE and those company without consistent profit patern. 

Affin has an unbeaten run this week pushed the share price closed at RM 4.360. Tuneins closed at RM 2.02 and Dijacor closed at RM 1.740. We like the market is getting a little mature where investor looking for real value company.

We sold 1/3 of our holding on Gadang at RM 0.855. As we do not like the fluctuation of Gadang stock price. We decided to reduce position gradually while price moving north.

Slightly reduced revenue by Manulife with profit sinking Yoy. EPS of RM 0.02 cents are well below our expectation. We will hold for another quarter before we decide next action plan.

Allianz improved revenue but profit only managed for slight increased. Not very exciting grow but we still happy with its RM 33.85 EPS. It is a continue hold for us at the moment closed at RM 9.50.

FocusP improved revenue but with slight retreat of profit to RM 0.0078 EPS still good for us. We will still hold on our position.

Except Manulife under our scrutinization. But we are not very satisfy with three of the results.

As we expect currency trading war to be continued, we view the currency will be strong temp. We expect the market to shoot pass 1800 level soon. We bought AUD at RM 2.990, Dijaya at RM 1.570, Multico at RM 1.70 an BSDREIT at RM 1.88

Index linked stocks advanced closing to 1800 following up with rally on Oil & gas counters. 

Yesterday, construction and developers firm are getting support.  We expect 2nd liners or smallcap stocks will takeover to push KlCI further with rotational play.
The trade war that cause lower interest rate is our main reason to believe world equities will continue flood with money that look for yield.

Central bank if israel also surprise move to cut interest rate to 1.5%.  We may expect a surprise from Bank Negara to reduce interest rate by 25 basis point in next meeting. As character of our bank negara also support cheaper RM to protect export.

We believe the valuation is getting expensive that offset by the prospect of PETRONAS is exercising capital expenditure more than 10 Billions this year.

Many people has miss the run of the current market due to one single perception. Market will drop then only buy. But many times, the practice is the other way then people will tend sell on panic and buy during bull.

It is very difficult to time the market. If you do cycle investment like we suggested. When market down you still got cash to invest but when market up you shift your investment to defensive income stocks or REITs.

In long run, you will definitely be the winner. My advise is don’t time the market. Buy on value and sell when expensive.

After QE3, BOJ, ECB then Australia. All pointed to direction lowering their interest rate to spur growth. Secondly lowering its currency values to increase export competitiveness. Latest is Central Bank of Korea decided to cut rate as well.

We believe the fact that world economy still weak, inflation stable due to weak buying power. Trade war increase between nations by lowering currency. He main cause started all from US debt ratio, 2009 credit crisis and QEs by FED.

The potential results are if world economy successful recovered and debt issues can be balanced. Eventually interest rate will reverse it trend. Market will start to digest or correct back. But I foresee that is going to be another years to come. By then, inflation will catch up and level rate increase resulting in potentially non pull back of all market.

Another extreme scenario is the printing money policy failed. Interest rate lowered but failed to spur growth. Debt issues cannot be balanced. World economy crash and enter into a long term correction. But it will be also many years to come.

Thus, we continue to suggest defensive full investment bias to asset oriented equities, REITs, properties and commodities. Healthy debt ratio is important when everything is creating new high. We suggest the max level is 2 times to your total investable asset.