We think the level of the plunged means good signal. We buy again today Airasia at RM 0.87, KSL RM 1.34, ECOWorld at RM 1.18 and ARREIT at RM 0.805.  We buy really slow but persisted.

We have started to look into Call warrants for bargain in the market. We closely review but may not be all in the market. We first selected Malakoff-CG. We like the current price of RM 0.02 and its ratio at strike price of RM 2.00. We will buy more when market moving aggressively downward in the next few days.

We bought MNRB at RM 3.13, Affin at RM 2.20, Airasia at RM 0.93 average, ARREIT at RM 0.810, IGBREIT at RM 1.27, Paramount at RM 1.45 and Cypark at RM 1.45.

We wanted to note that thought many current issues surrounding AirAsia recently. Low oil and budget flying will be always having an advantage in slow market conditions. They may be USD loan on planes that have purchased. But with the current climate is pretty balance for the airlines. Further drop may trigger aggressive buying by our fund.

I think the situation is definitely not as bad if compare to 1997.  Perhaps there are still plenty of money around and business as usual. 

Plenty of people in the mall and some cars brand still sell with record units.  Perhaps a good sign to show the market has a good root.

A series of money outflow from equities markets continues after currency war sparked. China slows is already a fact for long time. We believe the situation has been more difficult on top of already bloody Asian markets.

At this moment we will see the path of recovery will extend not be anytime near. Next support of KLCI will be at a critical 1,500. However we will still mildly buying stocks in value with asset
Oriented as basis as main criteria from now.

we have eventually decided to reduce Cheetah taking this opportunity switched to Airasia, Affin, MBSB, Marco and Cypark.

We have hold Cheetah for many years but now we think they are no longer competitive and have strength.  Although NTA is still strong but in face of H&M and Uniglo.  We believe if these shops extending to all cities.  They will have a big impact to Cheetah.  Let’s not mention Padini also gaining market share covering the same segment.

Anything recently associated with 1MDB purchased will be slashed down by investor.  TNB is an example and recently Affin as well.  We don’t like Affin decision to buy TRX land too.  However at this price is a bargain to us.  We bought at RM 2.20 again.

We have also bought ARREIT at RM 0.815.  We like the current yield level and renew our interest in some MREITs.

Currencies weaken across emerging markets due to currencies devaluation war is on the table.   However, RM dropping more than most currencies.  Perhaps lake of confidence due to 1MDB or political issues. 

However we think may be is due to the reason oil price dropped to USD 40 per barrel.  As Malaysia planned budget on USD 110 per barrel.  In the review of budget and projects last few months ago.  Only certain uninterested projects were stopped.

Are we going to borrow to finance our budget?  With the new GST of 6% started April 2015.  We believe RM weakness added with deliberate intension to cushion the budget planned.  As we cannot stop projects end up may affect GDP growth lead by infrastructure development.

Oil price drop from USD 110 to USD 40.  Perhaps RM may need to adjust 40% – 50% in order to balance the planned budget?  Or may be around RM 4.2 to RM 4.3 against USD?  Perhaps only until new budget announced in October 2015. 

We believe KLCI will find clue from RM movement next week.  However, we think the current prices are attractive and will continue to buy KLCI.  We stop all overseas investment due to weak RM.

Due to the poor performance of Boustead Plantation after its listing for quarters.   We have decided to sold off all last week at RM 1.24.  On the other hand we bought Paramount at RM 1.60, Maybank average at RM 8.45, Affin at RM 2.31 and MBSB at RM 1.47.