A Good Start To Year 2015
The first month of year 2015 has passed. I would say that the performance of KLCI surprises me.
In last year's January, KLCI lost 3.4%. This year it goes up 1.2% amid negative local market sentiment.
Brent
oil price remain low at around USD50 and MYR continues to depreciate
against USD. However, KLCI turns the table around by inching up for the
first time since the "crisis" emerged in Oct14.
Has anything changed? Or just the emotion of investors have changed?
Perhaps market is boosted by enormous European QE and possible delay in US interest hike.
At home, government gave reassurance that everything will be fine, and mega projects will not be cancelled or postponed.
Even
though KLCI gains just 1.2% in Jan15, quite a lot of popular stocks
manage to register handsome gain of 20-30% in this period.
These
popular stocks are mainly those which are expected to benefit from
weakening of MYR against USD. Most of them not only recover from the
heavy slump in the final quarter of last year, but also break their
record highs!
Besides,
oil & gas stocks staged a good recovery while most property &
construction stocks also move out from their recent low.
For me, I'm still in the mode of collecting cash.
I
have a few targets which are in my watch list. With limited cash, I
plan to buy carefully only when there is a significant drop in their
share price like in Oct last year.
However,
those stocks were climbing up everyday and some went into historical
high. It seems like I have no chance to grab them, or at least I need to
wait for a long time...
The
consolation is, some of the stocks in my portfolio also perform well in
Jan15, with only Scientex gives negative return in this period of time.
Overall it is certainly a good month for my portfolio, though I am yet to calculate the exact figure of gain.
Do you think current optimism can carry forward to the month of February?
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