1st issue is DOJ on 1MDB and 2nd with lowering oil price dampened sentiment.  But we are not aware of any new announcement by MBSB that have strong selling pressures. Except tight liquidity and excess rights that selling with a cost only at RM 0.59.  We think it is highly oversold and we continue to buy today at average of RM 0.695.  From this sentiment and we believe the pointer is very likely another 25 basis cut of interest before year end.

Oil may test USD 40 but we maintain our view that the fair value of oil should be at USD 60.

Current market weakness dampened by 1MDB issues together with low oil price.  However we see this is an opportunity to continue buying into cut throat discounted price of many securities.

We believe it is over done but like we always mentioned. 1MDB issue is better to solve it once and for all. At least total transparency and bring those responsible to court.  Otherwise the whole country sentiment is dragging down by this issue.

If there is a country still with positive interest rate. A trend of catch up is on its way. We will see more interest reduction. I cannot say there must be a bear coming soon but rather it will depend on the impact of these moves. If economy still not able to revive after extensive rate cut. A final full stop will come. 

As market soften after 1MDM DOJ report. We found majority shares in the market traded negatively except certain bluechips dragged index up.

However, we like MBSB at this price and continue bought at a good price. We added MBSB at RM 0.740. 

Besides we also added MQREIT as KL-SG high speed link will in long term benefit more MQREIT’s KL Sentral’s portfolio.  We added at RM 1.21.  

Our next focus of MREITS will be both MQREIT and ARREIT. We believe both REITS have strategic portfolio. Good yield at the moment and trading below market trends and it’s NTA.

We have closed all positions as we believe the fever is stabling soon.  For the local front we continue to invest in MBSB especially weakness after DOJ report.  

I am not in a position to take site.  But logically I advise all fellow Malaysians and politician. Especially those in Barisan National.   There is nothing in between after DOJ report. Either we protest to stop tie with US or we take actions against those involved.

Don’t go in between to find legal avoidance. It is crystal clear that 1MDB name was mentioned. Also the Malaysia official no 1.  If we don’t believe of the report. Then please protest it. If we believe in the report then please take swift action.

Malaysia is a country of its own. If US, Singapore and Switzerland are having these allegations to us.  What are we doing to hide in our own world when we do not dare to confront them. End of the day pretend nothing happened and protecting those involved.

We have to take site and do the right thing. It is the duty of all Malaysian.  For this instance, A is A and B is B. There is nothing in between A+B

We have always maintain our view that everyone on 1MDB board and management need to accountable even as basic problem like cash flow.

However new DOJ released allegation is shocking. If it is true that fund raised from bond were use for personal purpose. 

Like we mentioned previously. MREITS are going to benefit too from the KL-SG high speed rail project.  As the value of the properties across these areas will.be boosted as a new economy zone.  Instead of parking money into FD, MREITS will now start to show even better capital grow prospect with yield still higher then FD of 2.75%.

As of current market price and portfolios. We like MQREIT and ARREIT as we believe both will be benefited yet within a good yield range compare to others as of now.

It is a positive move long overdue by both Malaysia and Singapore government.  90 minutes for point to point will make a huge economy zone for both countries.  Probably there is no choice but a counter agenda for That Canal or Kra canal.  However, both things I believe is good to benefit South East Asia and further given a boost to ASEAN.   

We will not stop investing in this region as we believe it is going to be the largest market of the world.  ASEAN plus one is exactly the concept to counter EU and North America. From construction to property companies,  from materials to banking and so on.  Even MREITs and SGREITs may enjoy huge capital growth due to new valuation after this project announced in long run.