Long Term Investments

We have not blogging for more than a month. It's not that we are losing interest in the market, it's just that we are way too busy with our personal life!

Managing a portfolio is not an easy task, we had come all the way and we are still learning. At this juncture, we might be slowing down a bit in the futures and stock market, as we are busy with the new home and office renovation; plus, our newborn just arrived not long ago.

To us, these are achievements! A new house and a newborn in the same year. They are also our long term investments!

Monash IVF

Our trailing sell stop triggered and we finally sold Monash IVF which is listed in the Australian Stock Market after holding more than a year. Since we were busy with the home office renovation, it is not a bad idea to set up trailing stop to protect our profit. We could have made more than what we pocketed today; but who knows where is the highest high. We could have made lesser if we sold our holdings earlier. Anyway, we are glad with the profit.

Australia cash rate is about 1.7 percent given by the banks, especially the big four after the recent interest rate cut last month. Including dividend and the capital appreciation, we have bring home about 34 percent from selling Monash IVF. It is not a bad deal in the current low interest rate and volatile environment!

Since we've got some capital, it is time to hunt for other potential stocks in the OZ market...

What the charts tell us

A quick scan at the daily charts and we've found for DJIA, its nearest support is at 18200. If this level able to sustain, market will slowly test 2016 high, which is 18622. On the other hand, break below 18200 will test next support at 18000. A big correction might comes if Dow broke below 18000, far support-17600.

As for Nikkei 225, the market was range trading between 15500-17000 since Feb till today. Where is the market heading? Will the 28 Trillion stimulus able to move the market higher? Far support we are looking is at 14000. Upside resistance 18000, next 22000. These are the trading range we think Nikkei 225 gonna move for the rest of the year.

We haven't seen any recovery yet for Shanghai Composite Index since the big drop from May 2015. The market had been moving between 2700-3100 from beginning of the year to date. Nearest support for SHCOMP is seen at 2900, next 2800. Resistance 3100. If Shanghai market able to break above 3100, next target 3300-3400. Will China becomes the favourite market for investors and fund managers?

Hang Seng Index rebounded aggressively since the Brexit day close to 19500 from end of June, till today's closing at 21739. Immediate support is found at 21500. If further correction happened, next support we are seeing is at 20500. Near resistance 22500.

KLCI Index and the currency Ringgit considered as the worse performing market in South East Asia region due to 1MDB incident. Market was trading between 1600-1730 for the past seven months. We think KLCI Index will test support at 1640 in near term. Further down, support is 1620. On the upside, resistance is 1670. 

DJIA broke record high

Overnight Dow Jones gained 10.14 points closed at 18516.55, off record high from 18557.

Hang Seng Index July futures closed at 21731 on Friday evening (+145) while cash market ended at 21659.25 (+98.19). Range of the week for HSI futures was traded between 20835-21773 (938). HSI was ranging between 19500-21500 since March; looking at the chart, the nearest resistance is seen at 21857. If market able to break above this level, next target is 22000. Higher resistances-22568, 22813. On the downside, immediate support is at 21663, further down 21157.

As for KLCI Index futures, July contract gained 11.50 points ended at 1668.0; cash market gained 13.62 points finished at 1668.40 on Friday closing. Range of the week for spot futures was traded between 1649.0-1671.0 (22.0). Immediate resistance for KLCI Index is found at 1680, next 1695. Support 1658.0.

What should we do with the rate cut?

Interest rate cut translates into less interest offered by the bank if you are a fix deposit saver in Malaysia. The standard fix deposit rate in Malaysia bank's is 3 percent per annum. Banks offer a higher rate if the capital you deposit is higher, or the tenure you save is longer! With the rate cut news released yesterday, we believe the latest fix deposit rate will be reduced by banks very soon. 

We think it is time to allocate some funds into the sharemarket. Our top picks would be Bursa Malaysia- the Stock Exchange of Malaysia which offer high dividend; property companies such as LBS Group, SP Setia and Sunway Group, Reach Energy and Real Estate Investment Trust such as YTL REIT, IGB REIT and Pavilion REIT. 

Of course, if you have the ability to borrow from the financial institution and have the ability to pay the mortgage, we think this is an opportunity to hunt for affordable properties. We bought a property few months ago, looking to transform into J&M home and office.

Malaysia cut interest rate to 3%

Bank Negara Malaysia (BNM) decided to cut Overnight Policy Rate (OPR) to 3 percent after the meeting today. This is the first time interest rate cut after 7 years from Global Financial Crisis. Is Malaysia moving into a low or zero interest rate trend soon? Perhaps it is time to hunt for affordable properties or quality stocks in Malaysia market! 

When the news was released, July KLCI futures was trading at 1660.0 (+2.0); range of the day was traded between 1654.0-1662.5 (8.5) while cash market was at 1658.31 (+4.34). As for Ringgit, 1USD is equivalent to RM3.98. 

Brexit Day!

Brexit Day! The voting started at 1400 KL/HK time zone yesterday and we'll get the result at 1400 later this afternoon. Whether Britain will leave the European Union or not, the market is definitely a volatile one! No matter is stock and futures market or the currency market. So, buckle your seatbelt and stay safe! 

Hong Kong market had up for five consecutive days. At yesterday's closing, the futures market gained 152 points closing at 20895 while cash market closed at 20868.34, up 73.22 points or 0.35 percent. However, today is an extremely volatile day. Range of the day for June futures contract was traded between 20190-20999 (809). Immediate resistance for HSI is seen at 21157, next 21700. Supports- 20540, 20160. 

As for Malaysia market, KLCI Index futures ended at 1643 while cash market finished at 1639.98 at yesterday's closing. Range of the futures for morning session is traded between 1623-1638 (15). Support for KLCI is seen at 1605; resistance- 1650.