We bought CIMB, CIMB-C7, OSK, OSK-WC and OCB.  We like the budget and expecting OPEC to reach a deal for production cut soon.

We like the part of having more cash released to tax payers. Mean time revised budget base on USD 30 to USD 35.  Many steps suggested to maintain budget deficit at the same level.

We will buy more local stocks from now as we are confidence the economy of Malaysia will sail through this global crisis.

We always think USD is overvalued.  It is traded high due to weak sentiment on world economy and perception of a potential crisis.  We believe the fair value is at RM 3.50 vs 1 USD.

We bought CIMB, MBSB and Affin today.  We like the price a lot but we are not sure how long low oil price is to impact the market.  We repeatedly stressed that oil is currently too low for even fresh production. 

All investment arms from the government may speed up mega merger to realise it’s investment value. E.g. Affin NTA at RM 4.16, RHB NTA at RM 7.94, MBSB at RM 1.71, CIMB at RM 4.68.  All banking equities trading below NTA.

It is also natural to further consolidate bank and insruance in Malaysia with population just  around 29 Millions. 

We are firm believer that commodities are limited.  Growing human population and changing climate will create in balance of demand and supply in long run.  We are not smart enough to short commodities but we hope we are smart enough to long it when it is at unreasonable low.

While the market corrected substantially last few days. We seen value and bought MNRB below RM 3, OSK at RM 1.56 and PBA at RM 1.20.  We will continue bargain hunting but at a slower pace.

Another investment legend shared the same view that the current oil price is overdone.  We do not need to response to this situation by doing nothing.

Our strategy will be buying into our top picks but at slower pace:-

1) CIMB
2) OSK
3) OCB
4) EIG
5) RHBCAP
6) PBA

Dimon shared his view that the market merely adjusting itself. There are more good news in US than bad news. Oil price down trend overdone and may adjust itself in months to come. I think both Jim Roger and Dimon believe the oil is now too low. But the downward momentum pushing oil price further. No one knows what is the floor price. Until then we are not changing our view perhaps need another 6 months for a recovery.

We believe Oil price is oversold and RM is also underestimated against an usual strong dollar. The world crisis may come with either debt level burst or natural disaster. But there are still tools in the market to point for a better sentiment. But we believe the momentum now will need more time. February OPEC urgent meeting on oil can be a strong pointer.