In 1H2010, investors showed interest in beneficiaries of Government fiscal stimulus such as construction and steel, but for 2H2010, we prefer sectors that will benefit from private sector growth and consumption. We believe that private sector growth will gradually take over from public sector pump priming to drive the economy into 2011. As such, our Top Sectors for 2H are Autos, Banks, Consumer, Healthcare, O&G and Utilities.
Our 2H2010 top buys are extracted from our preferred sectors for 2H, namely Autos, Banks, Consumer, Healthcare, O&G and Utilities, with the exception of Axiata, which is a regional growth story. We advise investors to enter the more cyclical sectors of Banks and O&G towards the end of 3Q2010.
The table below are the top buys for Big and Small Caps
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While the market never completely repeats itself, there are major similarities between past severe market dislocations and the current one. The past severe market dislocation was refering to 1937 Great Depression.
The table below outlines the major similarities between the two, comparing the Dow Jones Industrial Average for the 1937-1939 period to the SPDR S&P 500 exchange-traded fund (ETF), for the 2008-2010 period.
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The foreign exchange market is a highly volatile market that requires traders to be watching positions carefully. Within a few seconds time, currencies can move in either direction and drive investors out of their positions. The most popular method to trade these types of markets is through the use of technical analysis. Technical analysis revolves around the study of the supply and demand that is happening within the market place. The demand will have an impact on the price and the investor can use the analysis of the price movement to gauge what direction the market might be headed. Technical indicators are not a sure bet and do not provide the trader with the one magic equation to make money. These indicators are simply showing you what the price has done in the past, be it hours or minutes, so the trader can develop a plan for a future trade. There are a few technical indicators that are used to trade Forex more than others. Some of the best forex indicators include: simple, exponential, and weighted moving averages, stochastic, and ADX momentum study.
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Bank Negara Malaysia (BNM) is doing a survey to seek public opinion on the usage of RM1 banknote which is the lowest currency denomination Malaysia.
The survey was opened to public since 13 May 2010 but I just notice it recently. The survey was managed by Department of Currency Management and Operations of BNM. The aim of this survey is to determine the substrate of a new RM1 banknote. BNM claimed that the survey will take maximum of 5 minutes to be completed.
I have complete mine and from the question asked, I can see that the question mainly concentrated on asking public opinion on polymer banknote.
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Malaysia is one of the most subsidised nations in the world. Its total subsidy of RM74 billion in 2009 is equivalent to RM12,900 per household or 4.6 per cent of GDP even higher than Indonesia (2.7 per cent) & Philippines (0.2 per cent).
Due to high subsidies, Malaysia’s fiscal deficit stood at 7% of GDP or RM42 billion in 2009. Malaysia will be bankrupt by 2019 as total debt would soar to a RM1.16 trillion if we do not cut subsidies now.
Below are the breakdown of 2009 subsidies,
- RM 30.8 billion – Primary, secondary, higher education and scholarships.
- RM 22.9 billion – Medical services, petrol, toll, foodstuff (paddy, sugar, cooking oil)
- RM 18.0 billion – Gas subsidy for power and non-power sector, prefential interest rate.
- RM 2.3 billion – Welfare aid for poor, farmers, fisherman and disable.
Prime Minister’s Department’s Performance Management and Delivery Unit (Pemandu) was giving the task to come out with the plan to rationalise the country’s subsidy scheme.
A nationwide SMS survey conducted by Pemandu found 61% of respondents agreeing to the subsidy rationalisation initiative, with the majority preferring for it to be phased out over three to five years.
Below are some of the recommendations on subsidies that are to be removed.
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