As of now, the best thing to do is to stay away from the market by not doing anything. I may still buy but only Bursa, Tenaga and Maybank.
Inflation .. ok finally people realised
Lots of money printed, soaring energy prices. Interest rate increase and yes. It is going to continue for sometimes. Ifarket soft landing. Banks will be next wave hero. If hard landing, we all need to take a break for a year or two again.
Is MBSB and MIDF merger positive?
To me the answer is certainly. I am not sure why the price remained at this stage. Merger via share swap or even taking MBSB private and offer new share to realise its value can be in the card. I think after the acquisition, MBSB bank will be the largest Islamic bank in Malaysia a matter of time. Our call is buying further if you do not have enough.
Hedging and hedging, super inflation is coming
We have been talking about world debts that caused inflation for decade. Pandemic of Covid 19 reduce certain demand but boosted commodities price. Now what, war conflicts further pushing inflation to become worrying situation.
Either there is a war to reset all the problems. Or it is going to be a major issue going forward. The gap between the rich and the poor. Lot of changes on social values are going to emerged.
We continue to advise if you are capable. Hedge against it via investing in blue-chip, properties, commodities.
I am not smart enough to win in gloves, semi-con and tech as I cannot figure out the fundamental valuation. But I guess I will not also loss much on these three. Perhaps the word stagflation is coming back again.
Inflation is going to be huge after war
Already printed lots of monies to handle a crash caused by Covid 19. The new Russian war on Ukarine will further drive all cost to be higher.
We have a good hedge of commodities and properties. But we think food chain will subject to huge pressure. Thus, we picked LHI as one of suggested accumulation in 2022.
Disposing MNRB and buying Willow
As flood continues and become a routine even for the country. It is wise to dispose MNRB all that holding for years. Key lesson learn that all reinsurance has got aow PE but will not be a favourite to investors.
On the other hand, we see a great growth stock in the making where automation is important for the region. Bade on the recent performance that Willowglen has won a number of good contracts and its future outlook. We will start accumulate Willowglen from now on. We have since entered at the price between 375 to 385.
Hyperinflation is here
You will not be able to imagine if there is no effect of inflation after huge amount of currencies printed worldwide to sustain the economy during this Pademic. Everything is going to be more expensive for years to come. In this era, perhaps only blue-chip and real estate will be able to keep you out of the storms for years to come too.
Evergrande problem sent sentiment down?
I am not sure. But without too much convincing reason and the market changed tone. But we are optimistic because thw foreign fund is still buying.
Recovery Insighted – We changed our position short term to aggressive
I may be wrong again, but I believe this time round if covid 19 is not going to mutate further. The market is set to recover. Being calculating the total infected cases and also vaccinated population. The virus is hard to spread further.
As such, we changed our position to aggressive buying. Main focus into Jaks WB, WC, CC and CE. Following up with Serba Dynamik C26. As derivatives speculative investment. We also like MBSB C37 and MBSB C39.
As for stocks, we bought Dayang, DNEX as aggressive purchased. We stopped all essential purchases as of now
Admid double crisis, we will add more next week
Crisis of Covid 19 and crisis of political uncertainty. We will see a difficult week next week. But, for years we seen KLSE is almost at the lowest after series of sell down. But we will not get involved into Semicon counters.
On the other hand, our top holdings MBSB may faced pressure due to CEO passed away. A respect to him and may him rest in peace. As he has done a great job in the last few years in transforming MBSB. Being said so, it may be new blood to come in and this will be a new management soon. At this point, we will buy on weakness tomorrow for a week.
Our buying in the current trend – Cypark, Tenaga, Sunreit and Topgloves. We have also collected mildly on some Call Warrants for CIMB, MBSB and Jaks. We have also buying in aggressively for Jaks-WB. Unless unforseen issue arises relating to all these counters. We are having a buy call as of now.
We also bought mildly on DNEX as we think the turnaround of Siterra worth to pay attention as of today trend.
Due to money getting smaller. Properties and stocks market everywhere are heading up except South East Asia that attacked by Delta without enough vaccines. But I guess this will be the best time to reenter the market.