Success registered a continuous strong growth result with revenue grown to RM 87 Mil this quarter plus an improved yoy EPS at RM 6.41 cents. This work out to be a PE of 6-7 time and trading below its NTAB. We continue to call for buy at min target above RM 2.00.

Layhong has announced improved revenue with strong return in profit. At 10 sen a share of EPS, it has improved its whole year profit to 14 cents. If another quarter improved further with stable profit. We see Layhong will break the critical RM 2.00 level in short time and readjusting to its valuation to a fair value above RM 2.50.

MNRB slight improved in revenue but has clocked in 34 cents EPS. Rumour on potential losses caused by MH370 either is not reflected in this quarter or it has not impacted at all due to hedging. In my point of view if there is no announcement from them means the impact is minimum. That works out to be 70 over cents EPS per year which the current trading price only at 5 times. We call for a strong buy till you drop and our target at RM 8.00 minimum.

Well at least there is no war by now.  A new president elected and we believe is positive to world financial market by now.  We believe KLCI will retest and build a support further up this week. 

We have been holding APEX Healthcare 4 years ago and we continue to call for a hold. Buy if market in weak position. Pharmacy and drugs related business has given APEX a stable growth trend. Strong revenue increased with mild profit increment may drive the company EPS ratio around 10 and below. Given pharmaceutical industry valuation above 15 times. APEX worth around RM 6.00 and above. With a propose bonus issue up coming. We believe the stock will be a long term hold for us.

YTL Corp achieved better quarterly result with a slight reduce in revenue. YTL REIT improve both revenue and its profits. Dividend payment is continue maintain at 8% above. However, continue growth of revenue and profit are needed to keep the yield above its income. Given the brand name of YTL, we believe it is still a buy call for us. Target YTL REIT at RM 1.10 with accumulation call on current RM 0.920 price.

Both revenue and profit back on track for Tomei after an up and down year for them due to Gold price drastic fluctuation. 2.96 Cents EPS will give a indicative PE back to around 5 times. However, the current stock price trading much lower that its NTA. Is still a long term buy to me. When Gold price go through its correction cycle. We see Tomei will come back to re-test its new high with a min target price of RM 1.00

Regional influx of funds, money smaller effect, strong GDP growth plus within expectation bluechip quarterly result. KLCI is expecting to push towards 1900. We believe it will require few attempts before breaking decisively and stay above 1900. However, persisted foreign buying even at 1880 level create support at high side.

We are not so bullish but many times the market may not be rational. We don’t think we need to leave the market as we should let our fund continue to growth. However we will become more selective and reduce fresh buying at this level. Unless individual stock perform well in their quarterly result.

With the recent Q1 result announcement at 8.37 cents a share. The PE is stable and we believe the growth is inline again. With its target growth and renew intension to obtain bank license. We feel that EPF and MBSB is trying to create and unlock a strong value in the coming years. Together with its dividend reinvestment plan practise started. It will provide a better price stability to the counter. We call for a buy now with TP at RM 3.00 above.

The recent filings to SGX shown the management conflicts as Simon Eng that has joined the ownership ceased. We are buying again at SGD 0.005 and 0.006 lately. The major share holder Irene has bought back some shares from Simon Eng. We believe Simon also has openly sod down some of his shares recently.

While locally facing short lived political crisis. Before market open we see strong buying across index linked stocks. Even KLCI futures co-ordinated huge long position lifted KLCI higher and maintained strong momentum through out the day. At closing near 1880 KLCI created another record high in history tracing Dow Jones.

Honestly, we don’t think there is a link between Dow Jones record close to KLCI. We are surprise with many external and internal problems surrounding the financial market. We still see persisted buying across the board. We look around the whole ASEAN market and we found Indonesia, Thailand and Taiwan have the same pattern. It is definitely institutional buying but we are not sure if it is speculative or long term.

For short term, it should help on trading sentiment. We will turn short term positive and revive our range bound call. Market may challenge another record close if the buying persist.

In summary, we don’t recommend buying into the market. Perhaps, sell if the stocks over value but also let the profit ride by not disposing urgently. Perhaps, we will short back the market if KLCI near 1900. We see this level as strong resistance if there is not fundamental changes at the moment.

Need not to mention as World Cup Brazil will be a key factor that drag away many activities from the market. Together with several other factors like El Nino 2014 may hit early as June. Ukraine crisis may prolong and worsen. Local front may face continuous issues like Hudud to be proposed in Parliament for Kelantan.

Liquidity still buying into the market. But the drivers for another record breaking to 1900 is not an easy task. In short term I am not able to see a critical factor for this. Thus, there will be a quiet and range bound market for KLCI bias lower closing for the month.