Bursa Saham end up in 1706.64 points, 40 points lower compared to closing of previous month.
Two events dominated KLCI performance in the past month:
- Possible of rating down grade by Fitch
- Possibility of greece defaulting from its loan.
Both event pro-long the decline of ringgit against major safe heaven currency (like US dollar),
which further putting pressure on local stock market (KLCI) performance.
However, as Fitch revised the rating outlook for Malaysia, i will expect KLCI stopped its decline for next July, while trading narrowly waiting for the impact of GST to corporate earning become obvious in next cycle of financial reporting.
Current Return and performance
The estimated holding period return for KLCI in the past period (1st June 2015 - 30th June 2015) is -2.06% (with dividend included). Holding Period return for my portfolio, is -0.44%. Total holding period return for my portfolio since the inception is 8.79%, annualized to be 3.02%, this is lagged behind KLCI total return of 13.99% (annualized, 4.73%) and lower than return from Fixed Deposit.
Trading Activities
1. Addition of MNRB (6459), loss shown in quarter 3 seem to be short lived as the company quickly turn into black and record EPS of 60 sen per year. This translate to P/E ratio of about 6-7, with P/B ratio still less than 1. With current cash level, i believe the next dividend will be around 20 sen, translate to dividend yield of more than 5%. The worrying sign however is that, the total revenue seems to be stop growing.
2. Addition of Symphony Life (1538), its unbilled sales increased significantly from 196 million at FY 2015 Q2 to 469 million at FY 2015 Q3 and 667 million at FY 2015 Q4, guarantee of at least 2 years revenue in the future. Thus with current P/E about 6, and Price to book value around 0.4, and recently announce dividend (not yet approved by shareholder) of 5 sen (translate to dividend yield of more than 6%), the company looks attractive to me. Not to mention the company still sit on top of large parcel of land in sungai long which had yet to start develop.
Some signs need to take note of is the quick build up of inventory level, and whether the projects launched will be take up 100% in the end.
