Aboi's Updates for Jan 2013

Here's the link for the previous month's market sense: Aboi's Updates for Dec 2012

For those who find it hard to follow I suggest reading through my previous posting on how I am using technical indicators as a trend seeker.

1. First Attempt on Tech Analysis Part 1
2. First Attempt on Tech Analysis Part 2

KLSE ended the year with a bang, hitting an all time high of 1688. Following previous month, crossover and reversal trend happened and broke the resistance of 1645 as evident from the two EMAs gap being reduced. Recently a US "fiscal cliff" deal has been reached, this should bring some certainty to the US market for the next two month as did improvements on job figures. However as with all bull runs, slight corrections can happen from time to time (see green). With indicators showing overpriced and momentum hitting near ceiling levels for the time being, it is getting difficult to foresee the bull going higher any longer. Thus the creation of 3 support lines: 1680, 1670 and 1655. I am expecting 1670 to hold the line. For the next quarter Q1'2013 expect KLSE to remain in high ground as  general election is looming around the corner. 

The KLCI's top 30 is made up of 50% GLC controlled by Khazanah, EPF, PNB and etc..they take turns selling and buying each other and propping up the index as they wish. Come on it's election year, the index always goes up to record high at these cycles. The star indicates when the Malaysian General Election was held. Take note that the index was never near the bottom when election is called. So don't worry too much on your investment because the government will instruct these GLCs to give us all THE FEEL GOOD FACTOR but make sure to monitor your portfolio once the election concludes.

Notes

*Supermx: First Interim Tax Exempt Dividend of 4%

*Jobst: Third Interim Single Tier Dividend of 1.75 sen per ordinary share

*Freight: Single Tier Final Dividend of 2.5 sen per share

Comments

#1 Supermax and Genting continues to market outperform and is still a bargain. See my previous two postings.

#2 Sold JOBST for RM2.25 after ex-dividend date, overall a ~17% returns (plus previous dividends).
#3 Freight is on hold until it appreciates.
#4 Boustead is on hold due to correction in CPO prices now.
#5 Maintain buy on iCap due to huge stock price vs NAV price.
#6 Maintain buy on SIF as bond market would continue to do well when low interest rate is maintained.
#7 Portfolio did not meet target of RM132k for the YR2012. Target for YR2013 is RM146k and can only be met if both Supermx and Genting show good appreciation in value for 2013. It just becomes harder after missing last year's target :(

For the coming week, expect commentary on Jobst, updates on mREITS (with target price and rating for BSDREIT) and some bonus content on EPF investment scheme (mutual funds). Let's welcome 2013!!! Hoping for another awesome year with great returns! Happy new year folks.....

Disclaimer: The reports, analysis and recommendations in this blog are solely my personal views. I do not link to any investment body or company. As such, I will not be responsible of any of your investment decision. Consult your investment adviser or come to your own conclusions before making any investment decision.