Rumour that new stamp duty will be imposed on stocks purchases sent A shares down both at HSI and Shanghai stock exchange.  We managed to sold 0635 彩星集團 at HKD 9.40.  We existed the counter and with additional 20% gain on exchange.

We see this bull market in China will maintain sometimes but our strategy is to continue sell on high price.

If you live long enough like myself.  You may watch this TV series before production from Hong Kong.  The story line relates to greed of man in stock market. Especially when Hang Seng shoot up and crashed during the 1980s. 

Ironically, only among Hong Kong Chinese, Malaysian and I am not sure if other part of Asia does have this impact.   Whenever this TV series replay.  The entire retail force in the market is scare and sell off.  Sometimes I discovered even fund managers are avoiding period of agressive buying when this TV series replay.

It is not a coincident but now developed become a perception.   When Hang Seng risen from 24,000 to 28,000.  TVB replay the show at night and achieved a record audience for the time slot even 2015.  Malaysian Chinese retail players will rumour among themselves and stay away from the market.

Personally I think is a joke. But it does impacted the market not just once or twice. Many time until I loss count.  Asia is truly different with its unique investment culture.

We have sold half of our holding on HHGROUP at RM 0.60 as it has reached our targeted price. We will continue to switch fund over to our top 5 picks.

We noticed substantial continuous buying has actually digested an expected profit taking week. We will not be surprise that KLCI may challenge all time high in short time.

We sold more HSI stocks last week. Locally we have sold some Tasco at RM 4.20 above and switched to MNRB. We also sold Hexza in its recent run up and also switched evenly to all our top picks.

Federal government is to spend RM 15 Billion to support green growth to be announced sometime next month. We believe this move will benefit two large green related companies. We have a buy call on Cypark Resources and Puncak as front liners to rip the benefit of this move by federal government. We bought Cypark again at RM 1.91 and Puncak at RM 2.68

We suppose to expect a correction ahead for next week.  A sudden move by China cut bank ratio to spur growth may revert the trend and push HSI and regional markets higher.  A bull market needs liquidity and that’s the momentum now.

Buy

1. Cypark – Hold – Target RM 4.00
2. Puncak – Hold – Target RM 3.50
3. HHGroup – Selling above RM 0.60
4. Union Steel (SG) – Hold – Target SGD 0.30
5. GCL-Poly (HK) – Sold and exited- Target HKD 2.50

Hold

1. Freetch (HK) – Sold and exited at HKD 1.50 as stock price uncertain
2. Analabs – Hold – Target RM 2.50

1. MBSB – Long term buy target above RM 3.00
2. MNRB – Long term buy target above RM 6.00
3. Kawan – Buy below RM 2.00 and hold until RM 3.00
4. TWREIT – Buy with target for long term income – RM 1.60
5. AFFIN – Long term buy on target to be merged with fair value RM 5.00

Many research house review and target IFCAMSC at RM 2.00 above. 3 years back IFCAMSC is almost an idle counter. A sudden expansion in China given a rocking story for its superb stock performance.

However, at PE of 30 times above. IFCAMSC is much expensive then Google and Apple. Except there is something on the table only those trading with news. It is one of the most expensive stocks in the tech market. With portal 5 forces measuring its supply chain business in China. It is also not hard to be replaced its position. We rather buy Apple or Google that already for us considered expensive.

If L&G is able to sustain at above RM 0.550 during an expected mild correction week ahead. We believe L&G is set to move above RM 0.60. We suspect a corporate exercise is on the table. Potential bonus issue to reward chares holder as announced months ago.