Shanghai-Hong Kong Stock Connect will definitely benefits EMPEROR CAPITAL. We believe it is in value now with the stock itself already trading below NTA and low earning ratio.

We also bought in EMPEROR INT’L as its also trading below NTA with high yield. It continues to expand its development by acquiring more assets to enhance group fix recurring income.

Same to LAI SUN DEV with its recent won of tender for Ocean Park hotel project and latest announcement to acquire a London base asset. We believe this will further boost recurring income base and we also added more into our portfolio.

However, all these three stocks are long term hold and buy. We do not know the timing but with our experience in these stocks will typically require holding period more than 12 to 24 months.

After a strong week follow with a profit taking week.  We believe this week will be ranged bound with focus into quarterly results.  We believe a range bound pattern with bias to close higher.

We do not know the implication in mid to long term.  But in short term between 2015 and 2016 we believe the world markets will be further pushing to the upside.  Until one day if I can’t find any reason to exit the market.  I will start to dispose and I hope I smart enough to do this.

We have disposed all our holding of China Water at HKD 4.20.  Recent share price increase associate with a subsidiary obtain a 30 years concessions for a province in China.  The owner also bought in share from open market.  But we think PE 20 times above with profit yet to be factored may contain risk.  So we sold off and may buy into Hong Kong retail counters which has been beaten down by the protest.

Our theory is simple. If FED is daring enough to end QE3 means they have data on hand that at least 6 to 12 months should have a stable outlook. We should see a stronger USD and potential another round of BNM interest rate increase of 25 basis points.

China is desperate to maintain its grow rate at 7 to 8%. U.S. Is in stable growth environment. Japan and Europe are in loosening stage. ASEAN still in growing mode. We found sentiment is bias to benefit equities markets.

We continue our cautious optimistic approach. However we will increase equities reinvestment percentage by 10% point of our total portfolio. Holding percentage remained across portfolio.

Resistance broken and stable at 1800 above shows they are values in the market. Even consistent outflow of foreign funds. KLCI behaved defensive with quick recovery. 

If Ebola and no major disaster pressuring the market. KLCI is on target to close higher for year ending 2014.

Case after case reported problems in Europe economy.  Market reacted sensitively to initial tumbled then recovered.  Reports shown China and US are leading the grow.  Asean is also delivering splendid results.   Is Europe fear over stated? Fears of ECB has no tools to react further. Thousands of huge short positions in Dow Jones and globally.   Will the dooms day eventually arrived badly?

Our bet is no with cautiously optimistic  about the markets.   We believe the world markets reacted too volatile due to too many influential speculating funds from both side.  Europe is no longer a significant market in the world.    We have reserve that Europe economy is going to worsen.   If it is going to be worsen, we still believe the current growth in US, China and Asean may cushion the impact.  Eventually driving it’s consumption back to positive growth rate.

A stream of results out from Dow Jones to local KLSE.   Caterpillar, General Motors, Banks, Yahoo, Apple and locally PBBANK just announced a 13% year on year grow in profit. 

We believe there is value in the market and continue support a buy on dip approach with our top picks.   Stay investing with focus on asset oriented; climate changed related and agricultural/food companies.

We believe a healthy recovery will be continuous in this week. Together with global markets selloff calming down. Many bargain buyers are emerging to shop for quality stocks. However, there are still no constructive reason for KLCI to immediately push back above 1800 level. Foreign funds net selling more than 3 billions in short period of time is noticeable.

Some values emerged from the recent correction.  We like MNRB at RM 3.80, Tasco at RM 2.70, L&G below RM 0.500.  Gadang at RM 1.320.  Success at RM 1.700 level.

I recommend continuous nibbling of stocks above while market correct.  But need not rush into it.   Buy with patient.  We may be wrong but we are at the point still believe the major crash is not here yet.

However if you follow asset oriented investment style.  The current down fall impact is minimal to our portfolio. 

Today we bought Lonbisc at RM 0.66, MNRB at RM 3.90 and L&G at RM 0.505.  We have covered our short position and may long future for an oversold position anytime.