The blog entries do not represent a recommendation to buy or sell. Please consult your financial experts before making any decisions.

Wednesday, March 2, 2016

March Update

It has been a while since the last update. Here is the summary of the transactions done:
1) JTiasa sold at RM1.69 for a paltry 7% return. It was a good sell in the end. Just take a look at its current price of RM1.37.

2) Purchase of additional 2000 units of Inari at RM3.30. This makes Inari to have a weightage of 33% of the total portfolio. Such high dependence is highly risky but as long as you know what you are doing, it should not be a problem. I am confident that Inari will be higher in two years time. 

Some comments on the market:
The oil price is really tanking and it seems that bad news are all over the oil sector. Being a major oil exporter, Malaysia is naturally impacted. Petronas just announced to slash 1000 jobs and to reduce capex by 15 to 20 billion ringgit. This will have major effect on the economy. 

AirAsia is finally gathering some steam and moving north. All the provisions for AirAsia Indonesia and Phillipines have been done last financial year so that they can start afresh this financial year. Look forward to a sustained rally. It would not surprise me if it goes back to RM2.50. 

Then there is the risk of "Brexit" in June. I personally think the risk is minimal but market will be trading sideways or slightly down until then. Then we can have chance to buy in before June. 

Lastly, as of now, Huat Fund is really low in cash and looks like this: