My Investment Record (18) - 28th February 2015

Market Overview

During the CNY month, KLCI slowly climb up 40 points, perhaps due to satisfactory corporate earning announcement. The external economic environment trend hardly changed, except for Greece at the brink of defaulting, while ECB start its quantitative easing program. Besides, as China is experiencing slow down, its central bank start to cut interest rate. When credit become cheaper across the globe, we can expect equities price to start its climb until unsustainable level. 

Current Return and performance

The estimated holding period return for KLCI in the past period (1st February 2015 - 28th February 2015) is 2.52% (with dividend included). Holding Period return for my portfolio, is 2.79%. Total holding period return for my portfolio since the inception is 11.64%, annualized to be 4.50%, this is far lagged behind KLCI total return of 20.32% (annualized, 7.68%) and but still higher than return from Fixed Deposit according to current market rate. 


Trading Activities

1. Addition of MNRB (6459), although recent quarter results showing a loss for the insurance company, overall i still believe in the long run, insurance company like MNRB will remain profitable and produce handsome return. With share price cost only 2/3 of the book value per share, MNRB looks cheap for me. 

2. Addition of RHB Capital (1066). with latest quarter results out, RHB capital P/E ratio current stand around 10, low compared to other banks and other KLCI stocks. Few reasons why RHB's share price was low was due to possible default by 1MDB on its 2 billion loan ( RHB portion = 32%), resignation of its CEO, and fallout of merger plan with CIMB. However, with Ananda Krishnan allegedly came to the rescue (source) for 1MDB, thus repaying the loan to RHB,  my bet is RHB's business will remain stable for upcoming years. 

3. Addition of Symphony Life (1538), its unbilled sales increased significantly from 196 million at FY 2015 Q2  to 469 million at FY 2015 Q3, sign indicating that the company still has business ahead. Thus with projected P/E less than 5, and Price to book value around 0.4, the company looks attractive to me.