World markets up and down with Fed decision surprised people.  It did surprised me after months of comments.  We don’t believe just because of China stock market crashed lead to new decision by FED.

Too many uncertainties ahead by now. Few big cases like VW being investigate for cheating in emissions.  Najib started being probe by US authority. 

We don’t know what to do either and prices in the market not in bargain. So we will wait at the moment.

We hope FED can increase policy slightly to accommodate both turning low interest trend and still making economy competitive to grow.  No what, USD needs to drop back and equities need to strongly pump back?   We understand your worry especially recent China slow down.  But this left too much space for speculation in coming months.

For now, we favour a year end rally in equities to recover most losses in the pass few months.  More fiscal policies will be used to encourage growth.

We think the sentiment is largely lifted up deal to Najib announcement of additional RM 20 bill to buy undervalued stocks by the government.  Additional RM 6 billions over announced by Khazanah are evidence that lots of liquidity in Malaysia.  We think KLCI will stable above 1600 in short with buy on dip suggestion.  KLCI related with middle cap linked to government funds will be the best bet.  

if there is no extra sudden event.  Expected budget announcement in October to revise our reliance on high oil price and FED interest rate increase already losing its negative impact.  Oversold stock will slowly recover by bargain hunters.  

We like to leverage a potential short term bottom of KLCI.  We bought some FBMKLCI-C4 at RM 0.100.

We do not have any changes in our fundamental view.  All our top picks in our portfolio performed well in the last quarter.  We continue to buy mildly of there is a bargain for the day.  Today we bought KSL at RM 1.38.

Unless budget to be announced really address all issues we are facing locally.  If not, things not looking good and we may have a prolong period of down trend.

We bought UZMA again at RM 1.78 and Tropicana.  We also added MQREIT as we believe the value is cheap at the moment.

We believe KLCI will trail Fed and China movement.  We continue to believe that once a one time interest rate raise by FED.  US dollar may face temporary sell off until FED next move which we believe can be only happened in 2016.

We continue to also believe that China still has a lot of bullets to ensure its market stable from this level.

Local front oil may recover further or to form a genuine bottom around USD 35.  But we believe OPEC does want to see it around USD 50 to 60.

With also Malaysia budget to be soon tabled.  We believe the over budget on oil issue at USD 110 will be over.  Perhaps BNM will be more agressive in defending RM at 4.2 level. 

After October, we believe recovery on its way back to above 1650 to 1700.  Although main street and stock market still weak.  There are definitely lots of good valued stock can be invested.  In short we still don’t see any factor that can cause another 1997.

58 years since independence.  We hope the country’s leaders will manage the country with a more concious approach.  People first policy oriented is the key to a better future.