The Star Online: Business
The Star Online: Business |
| Posted: 12 Apr 2013 05:04 PM PDT REVIEW: Shares on Bursa Malaysia started out the new week on a concrete platform, with the FBM Kuala Lumpur Composite Index (FBM KLCI) jumping 3.02 points to 1,691.67, extending the previous week's winning streak on continuous bargain hunting interest. However, there was no fresh market-stimulating leads on the horizon to boost follow-through interest after overnight US markets suffered a fall on weaker-than-expected jobs data while investors watched reaction to the Bank of Japan's stimulus. A poor showing in most of the stock exchanges in the Asia-Pacific region was another factor weighing on the local sentiment. Consequently, the key index came under pressure to reverse early gains. It touched an intra-day low of 1,683.59 in mid-morning before bouncing off to trade in a pretty tight range around the flat line for the rest of day. While blue chips were in consolidation mode, second and lower liners were mostly steadier on speculative plays ahead of the general elections and the trend was clearly displayed on the score card. Despite the index shedding 0.66 of a point to settle at 1,687.99, winners beat decliners by 472 to 268 on Monday. Nevertheless, US markets staged a rebound the next day, with the Dow recovering 48.23 points to 14,613.48 and crude oil prices rising 66 cents to US$93.36 a barrel, but trading was volatile while investors looked ahead to an earnings season, expecting to show modest growth. As expected, Asian markets rose on renewed buying momentum, underpinned by benign inflation data from China. Unlike overseas peers, the local bourse was trapped on extended consolidation, with the FBM KLCI flirting between an intra-day high and low of 1,690.45 and 1,685.61 respectively, a tight 4.84 points range throughout before ending up 2.28 points to 1,690.27 on Tuesday. Thereafter, world equities sustained the upward thrust, as investors indulged in bargain hunting amid growing optimism about the global economic outlook. Against the bullish backdrop, stocks on the domestic front, swung back on renewed interest and gains in the quality issues propelled the key index up 5.93 points to 1,696.20 in mid-week. In line with the global trend, the FBM KLCI charged ahead and smashed the four-day-old peak of 1,700.55 to established a new all-time high of 1,710.35 before trimming advances slightly to settle up 10.84 points to 1,707.04 on Thursday. And yesterday, the local bourse set another record of 1.716.47 in the morning but ended 8.51 points lower at 1,698.53 owing to profit-taking activity. Statistics: Week-on-week basis, the major index perked up 9.88 points, or 0.6% to 1,698.53, versus 1,688.65 at the close on April 5. Total turnover for the regular week amounted to 5.535 billion shares valued at RM9.124bil, compared with 4.918 billion units worth RM9.77bil traded the prior week. Technical indicators: The daily slow-stochastic momentum index appeared in danger of slipping below the 80% bullish line after triggering a short-term sell at the top yesterday. In a similar pattern, the 14-day relative strength index had indicated a mild curving down pictogram from a reading of 87 to finish at the 78 points level yesterday. On the contrary, the daily moving average convergence/divergence (MACD) histogram continued to expand upward against the daily trigger line to stay bullish. Weekly indicators still were firm, with the weekly slow-stochastic momentum index and the weekly MACD keeping their buy signal. Outlook: Riding on the strength of overseas markets, especially from Wall Street, the FBM KLCI eclipsed Thursday's new intra-day milestone of 1,710.35 to set a fresh historic high of 1,716.47 in the morning session before reversing trend to end the week at 1,698.53, cut short by an apparent profit-taking activity yesterday. Nevertheless, sentiment was seen improving and the market appeared steadier since the dissolution of Parliament on April 3, but trading volumes, which is the most important ingredient to sustain any rally, still is missing, thus raising a big concern among the investors out there. Needless to say, this area needs to be enhanced further and only then will it elevates investors' confidence and optimism about the market going forward. Technically, indicators are pretty encouraging but the growing overbought condition of the other short-term measurements may entice investors to take profit, which is likely to drag the market into correction mode this week. If that happens, investors can consider accumulating more, as the market is firmly bullish for now, with the key index flirting above all the moving average on our tracking system. Resistance is expected at every 20 points or 30 points interval above the 1,700 points psychological barrier. Support is envisaged at the the 14-day SMA of 1,683 points, 21-day SMA of 1,665 and the lower floor resting at the 1,643-1,650 points band. |
| Posted: 12 Apr 2013 05:03 PM PDT TELEKOM Malaysia Bhd went through two rounds of correction recently due to profit-taking. After finding support at the 8-month low of RM5.13 on Feb 20, this stock drifted sideways to slightly steadier on renewed bargain hunting interest, which saw prices mending to a high of RM5.57 during intra-day session yesterday. For now, Telekom Malaysia is still in an adjustment mode despite the recent recovery. But given the compelling fact of the principal market hitting an all-time high level, suggesting funds was flowing back to the quality issues, this blue-chip counter, which has a 2.133% weighting on the FBM KLCI, appears to have a fairly good chance of ending the correction phase. A breach of the short-term descending line, resting at the RM5.60 level, followed by a decisive penetration of the 200-day simple moving average (SMA) of RM5.70 would give investors the confirmation. So, check out on that. Upon breaking out, target the RM6.05 barrier. The next objective would be to challenge the historical peak of RM6.40, established on Oct 5, last year. The oscillator per cent K and the oscillator percent D of the daily slow-stochastic momentum index were firming. It had issued a short-term buy at the mid-range in mid-week. Similarly, the daily moving average convergence/divergence histogram climbed steadily, in tandem with the daily signal line to keep the bullish note. A buy call was issued on Feb 26. Meanwhile, the 14-day relative strength index improved sharply from a reading of 64 on Tuesday to settle at the 86 points level yesterday.Technically, indicators are pretty encouraging, implying a positive breakout may be on the cards. Initial support is pegged at the 50-day SMA of RM5.34. The lower floor of RM5.13 will now act as a base. ● The comments above do not represent a recommendation to buy or sell. |
| Be realistic when buying your 1st house Posted: 12 Apr 2013 05:00 PM PDT A Cantonese phrase commonly heard and used by the community peng, leng, zheng literally means "cheap, beautiful and good" in English. It is a catchy phrase that truly illustrates a purchaser's wish list when he or she is out shopping. But as most people find out very quickly, it is often unrealistic to expect to get all three in life. In the context of buying a property, the equivalent mantra would be low price, landed and good location. These criteria are held dearly by young working adults when seeking their first home. While it is ideal to want to own a home that ticks all the boxes, the execution part is in fact challenging if purchasers confine their selection to this formula. Meeting one or two of these criteria is less daunting and more achievable. This observation holds water when one seeks to purchase a property in major cities. Scarcity of land makes it not viable to build landed properties on prime areas and at the same time, market them at low prices. So, what are the factors to consider when young working adults seek to buy their first home? To understand the thoughts of a young working adult who is all eager to purchase a first home for himself or family, let us imagine being one of these purchasers. It would not be difficult to realise that the first few thoughts that come to mind are the criteria mentioned earlier. The important thoughts that come next are questions on how to get such a property and how to pay for it. This requires having a panoramic view of all the factors involved in purchasing a property and opening one's options. Compared to purchasing a vehicle which costs less, has a shorter instalment period, does not require intensive research and mostly required for mobility, purchasing a property is one of the biggest and most difficult decisions encountered by the young working adults. It involves searching hard for the right home, saving for the down payment before buying a home and subsequently, paying instalments for a longer period. However, acquiring a property beats acquiring a vehicle hands down with appreciating value. Saving to make a down payment for a property should start from early days of working life. If the savings are spent to buy a car first, the cost of owning a property will increase later due to inflation. Apart from accumulating financial muscles, other chief considerations for buying a home are affordability, location, financial planning and desired lifestyle. Affordability is the most fundamental consideration in acquiring the first property. The monthly loan repayment must be within one's means without creating financial burden. It is common to see young working adults having preference for new property developments due to brand new designs and lower maintenance requirement. However, second-hand properties will open up more choices as there are plenty of good deals at reasonable prices in the secondary market. Such properties can be converted into brand new homes after some renovations. Closely tied to affordability is the location of the property. We normally seek housing hotspots near the city centre for own occupation or investment. Young working adults on the other hand, have tighter budgets and ought to expand the radar screen to include suburban areas. There are many housing developments in the suburban areas which offer an ideal home environment at decent prices. Many of these developments have the potential to grow into thriving neighbourhoods with healthy population growth and proper infrastructure in place. First home purchasers should also consider their overall financial planning. Buying a home is not the only commitment in life; the cost of living, other financial requirements such as family expenses and investment needs should be considered as well. The ideal lifestyle is a subjective topic with different people having different preferences. Some will prefer a property that is self-contained or come with a wide range of facilities to meet their dynamic lifestyles. A high rise development would be a good option for them. The ideal concept of "cheap, beautiful and good" in the context of buying a property especially in the major cities may be too good to be true. There are always choices available for people buying a property if they are fully aware of all the factors involved in purchasing the property and are keen to explore more possibilities before taking the leap. When you look out for property next time, and this peng, leng, zheng phrase crosses your mind, perhaps you should think twice and leave more options open. FIABCI Asia-Pacific regional secretariat chairman Datuk Alan Tong has over 50 years of experience in property development. He is also the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com. |
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