Continuous improvement on RM vs AUD provide us a good chance to hedge our foreign currency portfolio.

We don’t know how strong RM can go but we have a much optimistic view on AUD then RM. We continue Flavour RMB, AUD and SGD as our top foreign currency hedging.

MNRB sees improved interest before result announcement at RM 3.15. Spritzr advanced to RM 1.42. Affin crossed RM 3.70 and Sunway rocketed to RM 3.40.

We see the valuation is still fair and we continue recommend a hold on all above counters.

Stronger RM and pending rate cut hope of Australian central bank meeting later today. We take this opportunity to acquire more AUD at 3.05 against USD.

From our PM Najib to Dr M, CM of Melaka, Dr CSL. Almost all pointed to a Chinese Tsunami that caused poor result of BN.

I just trying to figure it out. Malaysian Chinese has a total population of 25% +/-. Total votes to PR opposition is 50.6%. “If” 100% Chinese voted opposition. (Which is not likely at all) What are the races voted for the balance for PR – opposition?

All these politicians still dont understand statistics. Potentially that is why most Malaysian Chinese voted against you because you just dont think and listen. Ego is the biggest problem i guess.

We have sold of our CIMB at RM 8.62 and Genting at RM 10.580. We feel that the sudden spikes are unreasonale supported with low volume and we sold some index linked. But not fast enough!

A result that show more parlimental seats won by opposition.  A stronger divide between cities and rurals areas. More Chinese support to the oppositions.

Economy point of view, temporary clear of uncertainty will improve the currency and the stock markets. Mid to long term performance again will need to closely monitor how BN can merge its administration with a stronger oppositions from all cities. Of course also the Chinese where the most middle class group held.

Our focus will back to global impact from now as the GE13 is temporary passed. We will consider to diversify more investment to overseas as we believed that the result will not lead to a cultural change of mindset.

The decision of ECB to cut another quarter point is welcome by the market.   But it does furthet proven that money will further depreciated its value.  By the time when interest trend revert, it will be too late as yearly inflation is still highet than lending rate in average.

Lately I have come to understand from an ads that a change of government may close down the stock exchange – Bursa.

I have been trading in KLSE since 1990. I have also been trading KLOFF and KLIBOR since its inception.

I learn this from BN and I am surprised too this ads can be approved and flooding prime TV time non stop.

As the risk of both counters increasing when the polling date is near. BJTOTO may be impacted by another one or two states if PR taken over under PAS admnistration. As for UMW, car prices are going to be lowered no matter PR or BN win. When overall prices reduce, consumers will have more choice and we believe this may hit the bottom line of UMW. Together with its oil business activities if under PR government. Although BN may also win, simply a risk control and reportfolio.

We have swtiched to AFFIN, MNRB, STARIT, ALAQAR, DIJAYA, LAYHONG, CYPARK, A&M, HHHCORP and STEMLFE

Looking at the top active volumes on Friday.  We notice heavy volumes on TNB and CIMB. We believe market is very strong and it will continues its strength.  Later of the week will be quiet as wholr nation await an important result. 

But we believe market digested either result and moving towards world markets trend. Investors are chasing asset related with good yield business.   As money become smaller, we continue recommend defensive investment.