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.

We think the best thing to do now is to take a rest.  As USD will likely continue to drift lower.  Besides of food companies, we suggested a total stop buying in the market until more stable signal arises.

The best thing to do while RM is weak against dollar and Singapore dollar is to buy Gold and AUD.  

We believe KLCI will track RM movement next week.  USD 1 to RM 3.70 is a critical level.  If RM weakness continue will prompt more hedging hence can be critical to the market in short term.

Looking at the current trend and coming events like Fed interest rate hike and 1MDB issue.  We see 60% to 70% chance RM will break 3.70 level triggering more weakness in the market.

The argument prevailing the day weather it is a bubble or justified trend.  Some argued it is due to low interest rate and strong cash flow of the tech.  Some said when interest rate has no way to move north, the whole market will pop.

We think the market is expensive now.  However those techs that leading the charge deliver real profit with good products for the market.  Probably when PE hit average 30 times.  A bubble will form. 

Once again it proves the big bang theory in world economy.  No matter up or down but eventually the universe is going to expand more.  Also if you have a good idea in tech. You got to goto US as there is the only place will give a good environment for techs.

We think the world markets are expensive except consolidated emerging market.  When low interest rate strategy ended and money shift again to emerging markets for historical new high.  We will think of a real pull back at that moment and we hope we smart enough to offload some shares.

As we have mentioned that we are worrying about few uncertainties locally hovering around the market. We will now narrow our investment target into three (3) main defensive counters. We are still holding on all other portfolio but be focused at the moment.

1. MBSB – EPF own with strong EPS and turning to commercial bank as catalyst.

2. KAWAN – New expansion plant on its way with consistent sales and profit growth.

3. WHORSE – Consistent earnings with healthy dividend pay out.

We believe overall market will react positively next week due to China central bank rate cut of 0.25% over the weekend. As the second largest economy body and being largest trade partner of Malaysia and many ASEAN countries. A positive move that can start to re-activate more activities and even property prices in China.

Today is the last trading day of February of 2015. We do not expect too much development in sentiment for KLSE in the coming month. The key factor remained will be oil price, RM performance, 1MDB story development and upcoming GST in April. The best thing to do is to do nothing and wait for better opportunity.

No surprise or shock but mostly in mixed to average lower profit for the quarters. Last minutes closing of quarter prompted hundreds of companies announcing their quarterly result.

We like White Horse with its consistent earnings with a positive results towards food segment. Kawan is doing well and OCB is in the black too. Financially we continue to favour Maybank, Affin and MBSB.

I raise our buy call on WHORSE with a target min RM 3.00. OCB will be our added list for food segment.