In March 2011, Bank Negara Malaysia announced a new financial guideline to promote prudent financial management among credit card users.
The main objective of the guidelines is to stop the rise in household debt, which stood at RM580bil at the end of 2010. Credit card debt, was about 5% of this or approximately RM30bil.
Credit extended by the banks to the credit cards holders was much higher at RM124bil. This means that most of the card holders were not borrowing on credit cards because interest rates on credit cards are so prohibitively high.
The rates going to be much higher soon, as much as 1.5 percent higher than the current rates. The table below is the current & soon to be tier rates.
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Although 2011 was the best year ever for most plantation companies, their December quarter results were a mixed bag.
OSK continue to maintain Neutral stance on the sector. Although soybean and palm oil prices have strengthened of late, it is due to the threat of lower yields in the upcoming 1 or 2 months. For prices to sustain their run-up, demand has to stabilize and pick up, which have yet to see.
Within the sector, OSK continue to like Sarawak Oil Palms despite their strong stock price performance. These are well run plantations with more organic production growth going forward.
Below are the target prices and ratings for selected plantation stock.
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OSK’s earlier suspicion that bearish view on the market may not survive February turned out correct as the KLCI took the cue from the DJIA to rally past its resistance level at 1565 pts for a 3.2% gain in the month.
Nonetheless, OSK remains unconvinced that this liquidity fueled rally is supported by strong fundamentals and still see a risk of market correction.
However, OSK set year-end KLCI target at 1620 pts and upgrade our market call to NEUTRAL. OSK recommends a more balanced portfolio that includes Defensives in the Consumer and Telco sector as well as Cyclicals in the Construction, Oil & Gas and Banking sectors as Top Buys given the improved news flow going forward.
The table below is the target price for OSK’s March 2012 top picks.
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Perpetual is one of the oldest financial institutions in Australia. It was established in Sydney in 1886 under the name Perpetual Trustee Company (Limited). It is known as one of the most experienced investment and trustee groups.
With over 120 years of operating history, Perpetual has helped countless Australian’s individuals, families and companies to protect and manage their wealth through a proper and brilliant investment strategy specially formulated to fit their needs.
To ensure an outstanding performance on the investment, Perpetual has a very clear investment philosophy and applies it diligently while investing client’s funds.
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Majority the stock market in the world does not performing well in 2011 with only 7 out of 51 stock markets showing an increase in the market capitalization.
This included Bursa Malaysia with 0.48% market capitalization. However, it is in the top 10 of the world’s best-performing stock market in 2011.
The top 2 world’s best-performing stock markets are Irish with 86 percent increase in market capitalization. Meanwhile, the worst stock exchanges are Cyprus and Athens stock exchanges, which decrease more than 40 percent.
The table below is world stock exchange rank for year 2011.
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