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Showing posts from December, 2018

In Case You Haven't Noticed, We Have Been In A Bear Market For The Past 6 Months

What is a Bear Market 
A bear market is a condition in which securities prices fall and widespread pessimism causes the stock market's downward spiral to be self-sustaining. Investors anticipate losses as pessimism and selling increases. Although figures vary, a downturn of 20 percent or more from a peak in multiple broad market indexes.


52 WEEK RANGE
1,626.93-1,896.03 Taking the low-high for the past 52 weeks for FBM KLCI, the differential was just -15%.
52 WEEK RANGE11,060.34 - 13,143.89
The slightly broader FBM100 differential was -16%.




52 WEEK RANGE11,150.18 - 13,449.68
The very much broader EMAS index differential was -18%.



52 WEEK RANGE10,910.52 - 18,230.59
The small-cap index (similar to ACE index) was in a totally different hellhole, the differential was -41%.


KHAZANAH



As a broad-stroke, Khazanah's main holdings did look pretty awful for supposedly be chips.

Let's look at the major industries for Malaysia:

PLANTATION


Two Notable Corporate Announcements - Prestariang, Watta

The fall of Prestariang is now clear. It was margin call forced-selling of 117 million shares. Coincidentally, Affin-Hwang Asset Fund picked up 40,000,000 - probably bargain hunting. However, it seems flukey to bargain hunt when a major portion of Prestariang's outlook and prospects were diminished with the announcement over SKIN. We would understand better if the buying was an average down exercise, but the announcement showed that it was a new position, which is surprising. But I am not a fund manager.













Watta Holdings, a relatively clean Main Board, which had earlier announced its exit from their main car battery business, saw the emergence of a new substantial shareholder. Just the name might not make much sense except that he is the current Group CEO for Serba Dinamik (the only consistently profitable oil & gas outfit left in the country I guess, making around RM100m PBT per quarter for the last five quarters and counting).







My E.G. - Unexplainable Drop?

Investors, traders and fund managers have been scratching their heads over the past week over MyEG's share price. Just have a look:























“The company wishes to inform that to the best of its knowledge after making due enquiry with the board of directors and major shareholders of the company seeking the cause of the unusual market activity in the company’s securities, the company is not aware of any factor which may have contributed to the unusual market activity, which led to the sharp fall in share price and increase in volume recently,” it said.
Read more at https://www.thestar.com.my/business/business-news/2018/12/12/my-eg-falls-in-heavy-trade/#5V4hMkcGk4IJr6JL.99



Generally i wouldn't bat an eyelid over stock volatility, especially in the present trying market conditions. What was galling was that the official statement from the company itself that they did not know why the stock price got hammered over the past few days.

Let's look at the developments over the past few days:

























a) …