Monday 18 July 2016

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.


Friday 15 July 2016

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.


Wednesday 13 July 2016

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.