Tong’s Momentum Portfolio - Jan 16, 2015
STOCKS on the local bourse closed in positive territory on Thursday, recovering its early morning losses, and more. The FBM KLCI index added a marginal 0.17% to close at 1,745 points. Market breadth was positive, with gainers outperforming losers 1.75 to 1.
The surge in oil prices overnight proved temporary, falling back to trade at around $47.55 and $47.30 for WTI and Brent, respectively. The spread between both benchmarks has narrowed to only $25 cents per barrel from US$4 at the beginning of the year. Notably, the Brent, a global benchmark is now trading lower than the US market-driven WTI.
Global markets close mixed. Overnight, Wall Street fell for the fourth consecutive day while Europe and Asian markets are up.
I continue to be cautious on the outlook for Malaysian equities and have therefore kept my portfolio unchanged with a high cash holding level. Some of the Stocks with Momentum continue to offer trading opportunities, but one has to be nimble given current volatile market conditions. Those with a longer-term horizon should look at my value investing portfolio, published in The Edge weekly, which buys from InsiderAsia’s stock picks.
Currently, I am only holding Willowglen, which went up 3 sen to close at 78.5 sen.
http://www.theedgemarkets.com
