Last two months KLCI hit its lowest point within three years at 1532.14 pt, end up at 1612.74 pt and 1621.04 pt at end of August and September respectively.
Brewing of 1MDB scandal, anticipation of Fed rate hike, and consistently lower crude oil price results in capital flight out of Malaysia, pushing the ringgit lower and thus tumbling the stock market.
However, with the annoucement of Value Cap by Najib Administration and subside chance of Fed raising rate this year, KLCI began to stabilize and should perform better as the end of October.
Current Return and performance
For August 2015,
The estimated holding period return for KLCI in the past period (1st August 2015 - 31st August 2015) is -6.12% (with dividend included). Holding Period return for my portfolio, is -9.42%. Total holding period return for my portfolio since the inception is -2.46%, annualized to be -0.83%, this is far lagged behind KLCI total return of 8.35% (annualized, 2.79%)
For September 2015,
The estimated holding period return for KLCI in the past period (1st September 2015 - 30th September 2015) is 0.82% (with dividend included). Holding Period return for my portfolio, is 2.83%. Total holding period return for my portfolio since the inception is 0.30%, annualized to be 0.10%, this is far lagged behind KLCI total return of 9.23% (annualized, 2.91%)
Trading Activities
1. Addition of RHB Cap (1066), with impending right issues the stock is currently trading at P/E ratio of about 8, one of the lowest among its peer. As Q2 earning was still steady, this provide a comfortable safety margin for me.
2. Addition of Maybank (1155). its currently trading at P/E ration of about 12, with projected dividend yield of 7%, which is good for me.
3. Addition of Public Bank (1295), Public Bank is the MVP stock, it seldom come cheap, when it does, i will just add on .
4. Addition of Symphony Life (1538), this property stocks have attractive dividend yields with huge unbilled sales and landbank, even though most of the sales may not be realized as profit in this financial year, it still a good bet in the long run.
Snapshots on what my performance constitute for
Figure 1 shows the stocks that i currently hold, with average cost and current value. The total cost of investing will not be equal to the net capital i invested in, as i do reinvest dividend from stocks (Total about RM 14,000) and realized capital gain (Total about RM 10,400).
Total Holding Period Return measures the performance of RM 1 invested with me starting day 1.
The formula will be
(1+ HPR1) * (1+HPR2)*...*(1+HPRn),
where HPRn is the holding period return for particular period, measured as change in total portfolio value, and
current portfolio value = Total capital invested + total unrealized gain/loss + total realized gain/loss + total dividend gain.
The holding period return measured is better than the straight comparison between the total capital invested and total portfolio value now, this is due to my portfolio sustain greater loss lately when higher capital had been invested, thus resulted in less negative impact on the holding period return. The summary of period holding return vs KLCI return is as per figure 2.
Figure 1: Summary of shareholding now
Figure 2; Summary of Holding Period Return
