What happened?
>> Dow Jones Index crack below 15,000 level convincingly.
>> Foreign investor took the signal of QE coming to an end as an excuse to exit emerging market, including Malaysia.
>> Net foreign selling in local index RM283m yesterday, likely to continue today.
What to do?
>> SELL. You may hate me when I say this, sell everything except dividend yield stocks which has return of > 5%.
>> All the indicators are bearish. USD strengthen against Ringgit, commodity price tumble, Malaysia bond yield got sold significantly and pushing its yield up.
>> Index may fall below 1750 today, support at 1700 next week.
Roughly I expect KLCI to end at 1740-1750 today, meaning down about 10 points to 20 points.
>> Collect Maxis at RM6.50. If the fall is so great that Maxis pushed to RM6.50, can collect a bit. Annual dividend 40 sen, so getting 6.2% dividend yield from KLCI stocks should be OK.
This blog is related to observations regarding stocks traded in Malaysia. Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.
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