We believed KLCI will trail HSI, Dow Jones and Euro markets for a mild correction. Support around 1830 – 1840. We sold some Plabs at RM 0.295 and HHgroup at RM 0.580. However we bought back into MBSB at RM 2.270 and MNRB at RM3.61.

RM will continues recover against all major market currencies as oil price starting to recover. We will start buying more AUD if stable around RM 2.80 – 2.82. AUD strengthen drastically due to an unexpected fall in unemployment rate.

We off loaded 0939 建設銀行 at HKD 7.80, 0717 英皇證券 at HKD 1.20, 0163 英皇國際 at HKD 1.93 besides of last updated profit taking. We think long term HSI may move up further due to China led Asia-infrastructure Bank. A move we believe China is trying to further liberalize RMB in long run. This will lift up funds that restrict to buy into RMB or A Share listed in HSI with ultra low PEs counters.

However, temporarily pull back is expected after the sharp rally. Also late night Friday policy announced by China authority dragged down HSI future. All pointing to a week for correction together with Euro Greece problem and Dow Jones Friday selloff.

We will hold HKD as cash for the moment and wait for a better opportunity.

It has been a while HSI hovering below 25,000.  Few days after Easter and Ching Meng holidays. HSI is over 27,000 now.  There are many theories but back to basis is influx of funds. 

We taken this opportunity to sell out our non performing nd high valuation stocks after the rally. We sold some 東風集團股份 0489, 英達公路再生科技 6888 and 保利協鑫能源 3800. We will continue to offload if market hysterically pushing higher in coming week.

Local front we believe the market will trail the trend and start moving upwards.  We expect rotational play with focus into corporate exercise and cheap valuation segment. 

Global front we believe monetary easing in Europe.  Recovering economy in US.  China revise of its tightening policy.  If oil price recover to USD 60 to 80 range.  A perfect bull rally again can be formatted.

Our strategy remained the same. We buy low at advantage.  Focus into climate change, agricultural & food and asset oriented.

USD 3.7 and KLCI holding at 1820 above.  We believe if oil price recover back to USD 60 to 70 a barrel.  We will see a strong RM rebound and KLCI heading towards 1900.

We have bought in AUD at below RM 2.80 spot rate.  We like AUD at this level as it is also close to AUD 1 against USD 0.755.  We may possibly see another downward of Aussie dollar but possibly not far from the current level.  Unless Oil price recover back to USD 60 to 70 that may strengthen RM back to its level.

We have disposed some Plabs at RM 0.320 and exchanged all into MBSB and Kawan at RM 2.20 and RM 1.80 respectively. 

In term of valuation and it’s industry.  We like Plabs at PE 15 to 20 times.  In term recent profit if consistent with the next few quarters will push it’s PE down and potentially RM 0.40 only reflect PE of 10 times.  But we have with both Plabs and Sunzen for a very long time.  We suspect a corporate exercise may be on its way.  But we sold 10% of our holding at RM 0.320 today.  We will sell further when price trading upwards.  We see RM 0.40 can be a reachable target for short term.

We have disposed Sasbadi above RM 1.82 as we think the valuation of the company is too high for us.   We also disposed all Haio as we have disappointed with its earnings for many quarters without improvement.

We have changed all funds to MNRB, MBSB and Kawan.

Personally I am very positive towards ASEAN economy and also Malaysia.  Except 1MDB issues must be solved fast and transparent enough.  As it may drag the whole thing down even it is not end of the world.

Locally we just cover RM as we know USD is up too much against Asean and emerging market currencies.   Again I strongly believe it is speculative in nature.  I think the current economy situation in US compare to Malaysia may not have a big different a year to two ago. 

Yes I do agree RM affected by political uncertainty and 1MDB debt issue.  But looking at Malaysia strength of economy, asset, stock market valuation, governmental reserve and savings.  The fair value of RM should be at least above RM 3.30 vs USD 1.0.

We do not expect the same crash like 1997 but we continue advise anyone to reduce their loan ratio, invest in asset related entity and also food industries.  Perhaps even further on green industry.

We shifted back some HKD and SGD dividend from overseas and bought into Kawan.  We will continue to do so and above 2.90 RM vs AUD will stop us from routine purchases.