Malaysia Portfolio Investment Calls and Stock Market Update (29 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 advanced by 0.6% to 1,380 points, compared to yesterday of 0.1% (1,372 points). Top gainers are Hong Leong Financial (+RM0.5), Ajinomoto (+RM0.5), Carlsberg (+RM0.4) and Kuala Lumpur Kepong (+RM0.3).
Almost all regional markets in Asia were up today as most governments and central banks are looking to reopen their economies. Among the top market gainers are Philippines Stock Exchange (+1.2%), Jakarta Stock Exchange (+0.8%), Thailand Stock Exchange (+0.8%), Singapore Straits Index (+0.5%) and Hang Seng Index (+0.3%). In the western economies, the Dow Jones Index retreated slightly by 0.1%.
Some key data came out today from the European Union. Its consumer confidence and industrial confidence index in April declined to -22.7 and -1.8 respectively. Its core business climate indicator declined by 1.8% (Mar 2020: -0.3%), while the broader economic sentiment indicator declined to 67 (Mar 2020: 94). The indicators above points towards a decline in both consumer and business sentiments, which I think market participants are still complacent about. The market downturn in 2Q 2020 is expected to be very severe based on this indicators. The FED will be making its interest rate decision later in the day, and most market participants expect that they will still maintain a dovish stance.
For the Malaysian companies I am keeping track with a Buy call, most of them are still up. The best performing companies in terms of share price are Lotte Chemical Titan (30.5%), Padini (17.2%) and Bermaz Auto (15.5%). To date, the portfolio of companies I am keeping track on have improved to 4.8% return (28 April 2019: 3.9%). You can have a look at the companies I am keeping track on in the Google Excel sheet here or the table below.
