Malaysia Portfolio Investment Calls and Stock Market Update (10 April 2020)
Disclaimer: This research should be used purely for informational purposes and is my own personal opinion. I bear no responsibility to whatever investment decisions taken by anyone with regards to this research.
The Kuala Lumpur Composite Index (KLCI) today declined by 0.9% to 1,357 points, reversing the gains from the day before of 0.6% (1,370 points). Top 5 losers for the day are Nestle (-RM0.4), Kuala Lumpur Kepong (-RM0.3), KESM Industries (-0.3), Hong Leong Industries (-RM0.2), and Hap Seng (-0.2).
Today’s news were dominated by 2 key developments. One, the movement control order has been extended to 28 Apr 2020 to contain the Covid-19 pandemic and two, the reductions in crude oil output from the OPEC meeting was smaller-than-expected. The extension of the MCO will continue to negatively impact economic activities on the ground as firms are increasingly more cash-strapped at this juncture. While the OPEC countries did come to some form of agreement on the crude oil production cuts, it was not enough as WTI Crude Oil price fell 9.3% to $22.8.
For the Malaysian companies I am keeping track with a Buy call, most of them are down in line with the general market sentiments. The best performing companies in terms of share price are Affin Bank (7.0%), Lotte Chemical Titan (5.1%), Padini (4.9%) and Bermaz Auto (4.3%). To date, the portfolio of companies I am keeping track on have moderated to 1.9% return (9 April 2019: 3.1%). Next week, I expect investors to be taking profits off their investments as they will be pricing in these 2 key developments on Monday’s session. You can have a look at the companies I am keeping track on in the Google Excel sheet here or the table below.