Investment Return by Dali 1

WInvestment Return

Investment Return as at 2009-10-12
3 Month Return 13.84%
6 Month Return 26.69%
1 Year Return 27.90%
3 Year Return 51.66%
5 Year Return 62.32%
Investment performance information as on bid to bid basis. Nett distributions reinvested. For reference only.

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M'sia must seize early mover advantages, says Nor Mohamed

Written by Surin Murugiah & Melody Song
Monday, 05 October 2009 10:47

KUALA LUMPUR: Malaysia must act quickly and seize early mover advantages in recovering from the current crisis and transforming its economy, said Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop.

He said the country must develop and strengthen industry clusters in areas that will be drivers for Malaysia's future growth, such as Islamic finance, downstream palm oil and higher value add electronics.

"Emerging as regional or even global centres or clusters in key areas will provide a resilient and sustainable platform for future growth," he said.

Delivering his keynote address entitled "Lessons from Beyond the Dismal Science" at the Khazanah Megatrends Forum 2009, he said Malaysia as a relatively small economy had to remain adaptive to the changing global environment and to build up strong symbiotic relationships.

He said the crisis had accelerated the trend of global growth centred in Asia, particularly, in China, India, Indonesia and the Middle East.

"Malaysia is uniquely primed to benefit from the emerging new world order. It is well positioned in the centre of Asean and Asia," he said.

Nor Mohamed said the country could forge partnerships with other countries to jointly access regional markets, particularly in areas such as halal products and Islamic finance.

Good time to rebalance and diversify

KUALA LUMPUR: There was a time at the peak of the economic crisis last year when no asset class was safe — equities, PROPERTIES [] and commodities all came tumbling down as a crisis of confidence quickly spread around the globe.

Holding cash, it seemed, was the only way that an investor could be assured of not losing, at least the nominal value, of his wealth as the classic theory about the safety of diversification collapsed.

Not surprisingly, investors poured their money into fixed deposits and fixed-income instruments despite the low interest rates that threatened to send their returns into negative territory. However, it looks like the worm may have turned, although market conditions are far from stable.

But with the recovery story, at least in Asia, seemingly less a fairy tale with each passing week, financial experts say investors should take a second look at all the different asset classes — equities, commodities, bonds, etc, apart from some cash holding, of course.

In this regard, diversification is still an important strategy, say wealth advisers, as a wholesale collapse of all asset classes experienced at the peak of the last crisis is not the norm.

While investors may have been shocked into rushing for safer instruments, the fact remains that a diverse portfolio will maximise returns while minimising risks, they say.

“No proper investment advice would advocate putting all your eggs in one basket,” a fund manager said. “Even at the worst of times, it is better to keep a diversified portfolio because you never know which asset class may recover first”, or under the present circumstances, have a sustainable recovery.

CIMB Wealth Advisors Bhd chief executive officer Tan Beng Wah said as a wealth adviser, he always encouraged holding a diverse portfolio whatever the circumstances and advised against investing for the short term.

He stressed that retailers needed to think more strategically, as they tend to start investing only when the returns have been proven. He said this was not the most effective investment strategy.

The risk-to-rewards profile had improved significantly and investors should take advantage of this, he said.

“This is the time to rebalance your portfolio if you’re an investor,” he said. “If you are less risk-averse, you may want to look at putting more into equities, but also put some into property, fixed income and cash.

“In the current environment, equities will probably have a higher chance of getting better returns over the short to medium term (short being less than three years, and medium being three to 10 years).”

Tan is bullish about Asia, saying its recovery would outpace that of the developed markets.

He noted that there was a sharp distinction between the economic recovery and a recovery in the investment climate. The latter, he said, had priced recovery into its rally, and was therefore outpacing the actual recovery.

Retail investors were left confused as a result, Tan said. It was important for them to start looking at diversifying their investment portfolio even if they have missed the extreme trough-to-peak appreciation of assets earlier this year, he added.

“The lag between the economic recovery and the faster improvement in the equity market is confusing for retail investors,” he said.

“This backdrop provides us the basis of advising our customers that the opportunity to invest is still there although the high returns environment has been missed, particularly in the equity market.”

Although Bursa Malaysia may have seen some clawbacks last week due to poorer economic numbers from the US, most observers agree that the recovery story does hold some water.

The International Monetary Fund last week revised its growth forecast for the global economy to 3.1% from 2.5%, although it acknowledged there would be disparate growth between developed economies and emerging Asian economies.

HwangDBS Investment Management Bhd’s chief investment officer David Ng told The Edge Financial Daily the fund management company had started to withhold funds from the market since mid-August.

“Our house continues to believe in the recovery story, and that’s more of a medium-term view,” he said. “A few weeks back, we decided we would redeploy our money back... only if we think the economic growth is sustainable or at attractive levels.”

Last week’s clawback could prove a useful entry point for those looking to invest domestically. Ng advised them to keep an eye out on market movements over the next couple of weeks to see the trend.

Though bullish on equities, he advised investors to be discerning since almost every counter had risen over the last few months. In commodities, he likes precious metals and metals, but is cautious on agricultural commodities, including crude palm oil, in the near term.

Stocks to watch: KLK, Bina Puri, KNM, PLUS, ETI Tech Corp,

Written by Tony Goh
Tuesday, 06 October 2009 08:07

KUALA LUMPUR: The firmer close on Wall Street could provide some relief for Asian investors on Tuesday, Oct 6 after the key US indices closed firmer, underpinned by the latest data that the US economy's critical services sector expanded for the first time since August 2008.

The Dow Jones industrial average was up 112.08 points, or 1.18%, at 9,599.75. The Standard & Poor's 500 Index was up 15.25 points, or 1.49%, at 1,040.46. The Nasdaq Composite Index was up 20.04 points, or 0.98%, at 2,068.15.

At Bursa Malaysia, a series of unusual and "erroneous" but matched transactions caused KUALA LUMPUR KEPONG BHD []'s (KLK) share price to record its biggest one-day surge of RM3.26 or 24% to close at RM17, which also created much confusion among market participants.

The FBM KLCI could fall as analysts expect KL Kepong to give up yesterday's gains which were due to a late buy in of the counter, triggered by an erroneous order by a market participant.

Other stocks to watch are CONSTRUCTION [] outfit, BINA PURI HOLDINGS BHD [], KNM GROUP BHD [], PLUS EXPRESSWAYS BHD [] Bhd and ETI Tech Corp Bhd.

Bina Puri secured a RM185 million contract for the construction of a service apartment and power substations from Mayland View Sdn Bhd. The contract is expected to start contributing to the company earnings beginning from 2009 financial year, and raised the construction company's total outstanding order book to RM2.37 billion.

KNM Group's units in Malaysia, Germany and Dubai, have collectively secured RM155 million worth of new orders from Sept 24 to Oct 5,

In PLUS, Minister in the Prime Minister's Department, Tan Sri Nor Mohamed Yakcop said the government has no plan to sell its shareholding in company.

Khazanah Nasional Bhd, directly owns 23.66% in Plus, and another 40.21% indirect stake via wholly-owned UEM Group Bhd. The present market value of the stakes in Plus is worth around RM10.5 billion.

In ETI Tech, the company is seeking to transfer to the Main Board in order to attract institutional investors and to raise the company profile. It is also actively looking at overseas market expansion, indication a long term growth strategy and potential.

In HIROTAKO HOLDINGS BHD [], its non-independent non-executive director Tan Sri Saleha Mohd Ali, sold down their shareholdings of 50.07 million shares, or 28.09% stake, in the automotive accessory manufacturer.

Wall St. rises on services data, earnings optimism

Written by Reuters
Tuesday, 06 October 2009 07:42

NEW YORK: Stocks bounced back from a four-day losing streak on Monday, Oct 5 as optimism about upcoming earnings gathered steam and data showed the economy's critical services sector expanded for the first time since August 2008, according to Reuters.

Financial stocks rallied, and were the top positive on the S&P 500 index, after Goldman Sachs upgraded the large-cap bank sector. It said share prices for companies in the industry didn't reflect their earnings power. Wells Fargo & Co gained 6.9 percent.

Analysts said investors may be hoping that the strong earnings seen in the second quarter will continue with the third-quarter reports that start this week. In the second-quarter reporting period, more than 70 percent of Standard & Poor's 500 companies beat expectations, driving a sharp rally in stocks.

The Institute for Supply Management's index for the U.S. services sector rose to 50.9 in September, crossing the 50 threshold that indicates expansion and topping expectations. The services sector represents about 80 percent of the U.S. economy.

"We are a services economy to a large extent, and finally getting above the 50 level is a pretty positive signal that things are picking up," said Owen Fitzpatrick, head of U.S. Equity Group, Deutsche Bank Private Wealth Management, in New York. "We're off to a pretty good start this week with that number."

The Dow Jones industrial average was up 112.08 points, or 1.18 percent, at 9,599.75. The Standard & Poor's 500 Index was up 15.25 points, or 1.49 percent, at 1,040.46. The Nasdaq Composite Index was up 20.04 points, or 0.98 percent, at 2,068.15.

The market posted its second straight week of losses last week after weak data, including reports on jobs and factory orders, raised doubts about the strength of the recovery.

Investors have been eager for more solid signs of economic stability after the S&P 500's huge run-up since hitting a 12-year closing low on March 9. The index is currently up 53 percent since March 9.

"I think the earnings season will be positive overall," Fitzpatrick said. "We'll probably hear things are improving and see some areas of top-line growth occurring."

The release of aluminum company Alcoa Inc's results on Wednesday marks the unofficial start of the third-quarter earnings season.

Shares of Alcoa rose 4.7 percent to US$13.42.

On the Nasdaq, shares of Brocade Communications Systems Inc surged 18.8 percent to $9.09 after The Wall Street Journal reported that the network equipment maker had put itself up for sale, citing sources familiar with the matter.

Also on the acquisition front, Dutch telecoms group KPN NV raised its buyout offer to minority shareholders of iBasis Inc to US$2.25 a share from US$1.55 a share. Shares of iBasis, a U.S. voice traffic carrier, surged 7.5 percent to $2.30.

Goldman also upgraded Wells Fargo to "buy," and its shares rose to $28.09. The KBW Banks index advanced 3.2 percent while the S&P Financial index added 3.3 percent.

JPMorgan Chase & Co, up 4.6 percent at US$43.80, was the top gainer on the Dow. - Reuters

Bursa rejects bid to cancel erroneous trade in KLK

Bursa Malaysia Bhd has rejected a request from a market participant to cancel an erroneous trade that caused shares of Kuala Lumpur Kepong Bhd (KLK) to soar yesterday.

Analysts and dealers were stumped when the plantation firm's share price rose 24 per cent to RM17 in the last 10 minutes of trade, on heavy volume, for no apparent reason.

Even a company official seemed surprised by the sudden share movement.

Not long after the market closed, however, Bursa Malaysia said it received a request to cancel a trade for the stock, arising from a "participant's error".Trade with buyers and suppliers from around the world on Alibaba.com!

It later told brokers that it had reviewed the request and decided not to approve it.

Dealers believe the dealing error came from a foreign brokerage house.

Bursa Malaysia, in a press statement, said KLK's sudden share price jump was brought about by "matching of market orders at the pre-closing phase of the day".

This resulted in a change in the benchmark FTSE Bursa Malaysia KLCI Index which was not reflected until after the market's close, due to "verification measures" taken on the increase in KLK's share price, it said.

The exchange clarified that the index's closing yesterday was 1,216.45 points.

Ringgit surges in tandem with firmer KL bourse

RINGGIT

THE ringgit closed higher against the US dollar yesterday in line with the firmer local bourse, dealers said.

They said the FTSE Bursa Malaysia Kuala Lumpur Composite Index rose by 4.36 points at close to 1,210.61 after opening 0.19 point lower at 1,206.06.

At the close, the ringgit rose to 3.4600/4630 against the US dollar compared

with 3.4770/4810 last Friday.

Dealers said the uptrend was also in tandem with the performance of other regional currencies, such as the rupiah, Singapore dollar and Philippines peso.

The greenback eased against other major currencies.

Against other major currencies, the ringgit was mostly higher.

It rose against the Singapore dollar to 2.4497/4561 from 2.4536/4599 last Friday, increased against the yen to 3.8503/8564 from 3.8897/8955 previously and rose against the euro at 5.0583/0651 from 5.0590/0659.

It, however, eased against the British pound at 5.5300/5385 from 5.5288/5369 last week.

INTERBANK RATES

SHORT-TERM rates remained steady at close yesterday as Bank Negara Malaysia continued to intervene to offset the liquidity surplus in the financial system, dealers said.

The liquidity surplus was reduced to RM20.50 billion in the conventional system and RM8.62 billion in Islamic funds.

The central bank had this morning estimated a surplus of RM31.94 billion in the conventional system and RM13.96 billion in the Islamic system.

To reduce the surplus, Bank Negara issued two late tenders comprising a conventional tender for RM20.5 billion of one-day money and an Al-Wadiah tender for RM8.6 billion of one-day money.

KLIBOR

THE three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) futures contracts on Bursa Malaysia Derivatives closed untraded yesterday due to a lack of interest, dealers said. At close, all contracts remained at last Friday's settlement prices, with October 2009, November 2009, December 2009, March 2010 and June 2010 at 97.87, 97.86, 97.86, 97.69 and 97.44 respectively.

Meanwhile, there were also no transactions for the five-year Malaysian Government Securities with the December 2009 contract staying at last Friday's settlement price of 109.9.

At 11am, the underlying three-month KLIBOR was fixed at 2.15 per cent. - Bernama

Mixed amid worries over US recovery

Share prices on Bursa Malaysia closed mixed yesterday amid concerns over recovery prospects for the US economy.

Dealers said late buying interest in most market heayweights helped push the market barometer into the positive territory.

The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) closed 4.36 points higher at 1,210.61 after opening 4.34 points easier at 1,204.01 yesterday morning.

Throughout the day, the FBMKLCI moved between 1,203.27 and 1,210.61.

The FBM Emas Index rose 58.40 points to 8,153.65, the FBM Top 100 added 62.56 points to 7,957.24, the FBM 70 perked 46.39 points to 7,982.94 and the FBM ACE Index gained 6.86 points to 4,102.19.

The Finance Index jumped 82.47 points to 10,016.12, the Plantation Index added 221.45 points to 6,116.48 and the Industrial Index increased 2.17 points at 2,629.77.

Losers led gainers 354 to 238 while 221 counters were unchanged and 450 others were untraded.

Turnover dipped to 572.407 million shares worth RM969.874 million from last Friday's turnover of 618.181 million shares valued at RM871.854 million.

The broader market sentiment was hit by last Friday's slump on Wall Street after US non-farm payrolls dropped more than expected in September, pushing the unemployment rate to a 26-year high of 9.8 per cent.

Sanichi Technology was the most actively traded stock losing 4 sen to 10.5 sen with 316.177 million shares changing hands followed by KNM Group which rose 1.5 sen to 76 sen, IJM-Warrants lost 4.5 sen to 53.5 sen, Land & General eased 1.5 sen to 37.5 sen and Green Packet-Warrants gained 4.5 sen to 27.5 sen.

Among heavyweights that helped escalate the FBM KLCI by 0.361 per cent was Sime Darby, which rose 3 sen to RM8.56, Maybank added 1 sen to RM6.65 and CIMB Group perked up by 36 sen to RM11.50.

Meanwhile, utility giant Tenaga Nasional shed one sen to RM8.20 and plantation-based IOI Corp lost half-a-sen to RM5.17.

FBM KLCI futures contracts were mixed in line with the cash market's performance, dealers said.

The October 2009 contract was flat at 1,216.0, November 2009 lost 0.5 of a point to 1,215.5, December 2009 was unchanged at 1,215.0 while March 2010 was 3.5 points higher at 1,208.0.

Turnover declined to 3,017 lots from 3,601 lots last Friday while open interests rose to 15,421 contracts from 15,227 contracts previously.

The FBM KLCI rose 4.36 points to end at 1,210.61. -Bernama

Follow-through rebound likely

SHARE prices on Bursa Malaysia rebounded after a short pause last week. Its overall declining counters outpaced its advancing counters by 354 to 238.

The FTSE Bursa Malaysia Composite Index (FBM KLCI) rebounded from its intra-day low of 1,203.27 points to close at its intra-day high of 1,210.61 yesterday, giving a day-on-day gain of 4.36 points, or 0.36 per cent.

Notion Vtec Bhd (Notion) staged a technical rebound yesterday. Its daily price trend closed at 47 sen, giving a day-on-day gain of 4 sen, or 9.30 per cent.

Chartwise, Notion's daily price trend rose from its low of 26.5 sen on May 20 all the way up to its intra-day high of 44 sen on September 28, posting a total gain of 17.5 sen, or 66.04 per cent.

Its hourly price trend staged a technical breakout of its short-term overhead resistance (B3:B4) yesterday. Its hourly price trend continued to stay above its intermediate-term up-trend support (B1:B2).

Its hourly fast MACD (moving average convergence divergence) staged a "golden cross" of its hourly slow MACD yesterday.

Both of its hourly fast and slow MACDs continued to stay above their respective neutral reference lines.

Notion's hourly price trend is likely to stage a follow-through rebound.

Asia Roundup: Broadly lower as investors turn cautious

HONG KONG: Asian markets were broadly lower yesterday as investors grew anxious following news that more jobs than expected had been lost in the US.

Sentiment was depressed after a 0.23 per cent drop on Wall Street on Friday triggered by news the US economy shed 263,000 jobs in September. Investors are also cautious ahead of the US corporate earnings season, which begins this week.

TOKYO: Down 0.59 per cent. The Nikkei-225 dropped 57.38 points to 9,674.49. Stocks are at their lowest level in almost 11 weeks.

"Investor attention will likely shift to micro figures from macro data," Yoshinori Nagano, senior strategist at Daiwa Asset Management, told Dow Jones Newswires.

SYDNEY: Down 0.62 per cent. The SP/ASX200 fell 28.4 points at 4,573.3.

"The market was directionless and oscillated in a tight range either side of the flat line seemingly waiting for tomorrow's (Tuesday's) interest rate decision," IG Markets research analyst Ben Potter said.

SEOUL: Down 2.29 per cent. The Kospi lost 37.73 points at 1,606.90.

Technology firms fell sharply on concerns their earnings may peak in the third quarter and the won's strength against the dollar may hurt their price competitiveness.

TAIPEI: Up 0.35 per cent. The weighted index rose 26.10 points to 7,437.98.

"Today's gains were not impressive with many investors taking to the sidelines," Concord Securities analyst Allen Lin said, referring to shrinking trade.

He said the market is expected to consolidate over the next few sessions on a lack of fresh cues.

BANGKOK: Down 0.84 per cent. The composite index lost 6.09 points to close at 718.47, and the blue-chip index was down 5.28 points to 512.55.

JAKARTA: Flat. The composite index rose 0.57 points, or 0.02 per cent, to 2,480.41.

Traders said that sentiment was unaffected as the central bank left its key interest rate unchanged at 6.5 per cent.

MANILA: Flat. The composite index shed 0.55 points or 0.02 per cent to 2,819.48 but the all-share index edged up 0.21 points or 0.01 per cent, to 1,790.41

Astro del Castillo of First Grade Holdings told Dow Jones Newswires that investors are awaiting fresh developments before taking a stronger stand.

MUMBAI: Down 1.56 per cent. The 30-share Sensex fell 268.14 points to 16,866.41. - AFP