31 January 2011

No CNY Reunion Dinner for Stanley Ho?

Just one week left before the Rabbit Year CNY, local and international press are publishing the high-profile Stanley Ho's family feud. While we're busily shopping during this festive season, many people are chasing the "family drama", just like another popular Hong-Kong based production. Maybe, TVB's directors should consider converting the reality into a story-line drama/movie. I'm sure this could be a blockbuster-liked production.

Hong Kong and Macau tycoon Stanley Ho
SJM Holdings' most popular casino, Grand Lisboa
Obviously, fighting for money is very common nowadays especially for those wealthy families. To spice it up, the bigger the family was, the conflicts gets even greater.

28 January 2011

Extractions from BNM monetary policy statement

As expected, Bank Negara Malaysia (BNM) decided to maintain the Overnight Policy Rate (OPR) at 2.75% yesterday. This was the 3rd time in a row that BNM left it unchanged. Are there any hints by BNM on Malaysia's economy this year? We can explore the "hidden messages" from the monetary policy statement as below:

Regional Front:
  • While advanced economies continue to register modest growth, most emerging economies have experienced strong growth.
  • For Asian region, domestic economic activity continues to support the growth momentum amid weaker external demand.
  • Shifts in global liquidity have resulted in significant capital flows into the emerging economies, in particular, Asian region, and have brought with it risks to macroeconomic and financial stability.
  • The region is also being affected by global inflationary pressure arising from the higher commodity and food prices.

27 January 2011

KL Mart after 6 consecutive days of Dropping (27/01/2011)

If you ask any broker or remisier out there, they may show their unity in explaining the 2 weeks down trend of KLCI, by saying "Pre-CNY profit-taking ma". Sounds so familiar every year? Yes. This is a very good excuse for them or even fund managers to explain the sudden down trend, which caught many investors who jumps in the 2011 new year rally just three weeks ago.

Pre-CNY surprise?

When will market rebound?

Today, investors are experiencing a KLCI rebound, be it technically or not, right before CNY next week. Before this, many of us are predicting a "risky" January, given the rich valuation KLCI commanding after 2010 run-up. In December 2010, we are still in a very cautious mode, only to find out that KLCI reaches a fresh one week all-time high right after 2011.

The rally caught investors by surprise, and the great profit-taking too...

26 January 2011

New Fund: CIMB-Principal Strategic Income Bond Fund

Post-financial crisis, bonds remain the preferred asset class for more conservative investors because it is less volatile than equities. Asia, for example, remains a sound investment destination with rapid urbanization as a younger and higher population growth will necessitate greater infrastructure spending in the coming years.

To provides the golden opportunity, CIMB-Principal Asset Management Bhd has launched a new fund, that allows investors to capitalise on Asia, Australia, New Zealand and Middle East's improving credit conditions given the high potential of more rating upgrades.

"The demand for high-quality bonds in these targeted countries continues to remain high given the low interest rates outlook in the US and Europe, and this should support bond prices for the next few years. In addition, the slower economic recovery of these developed markets is shifting investment appetite to Asia. Combined with the likelihood of bond rating upgrades, this will mean potential good returns for investors who want to invest in regional high growth prospects in a stable manner." said Campbell Tupling, chief executive of CIMB-Principal Asset Management.

More about the fund....

25 January 2011

Globalization Index 2010: Malaysia better than BRIC?

Brought to you by "Ernst & Young", the Globalization Index was created to measure the extent to which the 60 largest economies (by GDP) are connecting to the rest of the world. The indicators fall into 5 broad categories:
  1. Openness to trade
  2. Capital movements
  3. Exchange of technology and ideas
  4. Labor movements
  5. Cultural integration
How did Malaysia fared in 2010?

21 January 2011

Bank's Chinese New Year Promotions

Leap, Leap, Leap to greater prosperity in the year of Rabbit.
In conjunction with the coming festive season, banks are going all out to lure their customers from all angle. It ranges from deposit, investment, insurance, credit cards, and of course shopping and dining. In order to stay relevant, Finance Malaysia is proud to highlights some of the promotions.


CNY Promotion: Hong Leong Saving Account
CNY Promotion: UOB Deposit

19 January 2011

Why ASEAN will failed to host World Cup?

It was reported that ASEAN, which comprises Brunei, Cambodia, Indonesia, Laos, Myanmar, Philippines, Singapore, Thailand, Vietnam and Malaysia, is going big in World Cup. Since all of these countries did not manage to qualify on the pitch, they're going through back-doors.
ASEAN is going to bid for FIFA World Cup 2030 !!!

Wow... When I first heard about this news, I am very excited. But, after calming down and figured it out, I doubt ASEAN could succeed in bidding the world's most popular event because of the following reasons. Second surprise came, when Malaysia was said to lead the pack for the bidding. Malaysia, the unlikely team which became the winner of ASEAN cup recently, may found ourselves "syok sendiri".

18 January 2011

Latest news on SP Setia (Jan 18)

Lately, SP Setia is in full limelight in local bourse due to some of the announcements made. And, yesterday, SP Setia was awarded a contract and proposed some of the corporate exercises subsequently. Below is some of the useful summary for investors keeping abreast with the latest developments:

The Bangsar land deal
  • SP Setia was acquiring a 40-acre land along Jalan Bangsar via a land swap deal
  • Government to acquire land in Setia Alam from SP Setia
  • Develop a fully integrated health and research complex to be known as 1NIH Complex in Setia Alam under the Ministry of Health's purview
  • Redevelop the swapped land into an integrated mixed residential and commercial project and give the Government a 20% profit sharing.

16 January 2011

Fraudulent Insurance Claims and YOU

Recently, theStar highlighting a serious issue pertaining to insurance claims - Fraud Claims. It even started with staggering paragraph "Fingers have been chopped off, medical ailments exaggerated and even death faked - all for the purpose of fraudulent insurance claims".

Among the issues:
  • RM500 mil in bogus insurance claims are detected each year
  • At least 2 insurance firms have folded as a result of high compensation claims compounded by fraud
  • Insurance firms fight back by setting up special fraud detection units

Regarding to this topic, Finance Malaysia would like to shares some views here pertaining to the effects on Malaysians as a whole. And, most importantly, the impact of insurer would definitely pass it to people insured. Why I said so?

First, you must understand how insurance companies compute their premiums charged to each clients. If the insurer is financially stronger, it may charged a lower premium for the same amount of coverage on its policies. In other words, if an insurer is facing financial problems, it may raised its premium charged, even to their existing loyal customers.

If your friend is making a fraud case, let it be?

13 January 2011

New Fund: RHB-GS BRIC Equity Fund

After being granted the licenses of fund management and corporate finance last year, Goldman Sachs has since establish an exclusive partnership with RHB Investment Management Bhd to jointly develop fund management products for distribution to investors in Malaysia. RHB-GS BRIC Equity Fund is the maiden fund from the partnership, and also the first fund being launched by RHB Investment Management this year.

The fund's objective is to seek to achieve long-term capital appreciation through investment in a collective investment scheme, which invests primarily in securities of Brazilian, Russian, Indian and Chinese companies.

Investment Strategy...

12 January 2011

New Fund: OSK-UOB Asia Financials Fund

As the conduit of everyday business, the financial sector lies at the centre of any modern economy. Asia is in an exciting stage of economic development and its financial sector, which mirrors this dynamism, is set to enjoy strong growth potential.

Participate in Asia's financial sector that stands at the heart of Asia's investment story. OSK-UOB is introducing the OSK-UOB Asia Financials Fund, with tag line: "The Heart of Asia's Investment Story".

Key highlights during the new fund launching:-

07 January 2011

Global Food Crisis, a Repeat of 2008?

KLCI is grappling up for a successful 4 days in a row this week, and perhaps today is the 5th day of record breaking level. However, I am concerned about the health and the sustainability of the market, after reading a report by Food and Agriculture Organization of the United Nations (FAO). And, one of the popular Mandarin Dailies highlighted the potential food crisis as its main topic today. Finance Malaysia did some analysis, and would like to comment on the issue which could be a hot topic for many nations very soon, including Malaysia.

In fact, international prices of most agricultural commodities have increased in recent months, some sharply. This has led to a level near to its peak in June 2008.

What causing the prices to increased?

06 January 2011

Sunway Nexis... Connect. Work. Play

To capture the feel-good sentiment of local property market, Sunway City Bhd launched its latest integrated mixed development, Sunway Nexis, located at Dataran Sunway, Petaling Jaya. It was launched following the success of Sunway Giza, which open its doors recently.

The development is being undertaken by Sunway Damansara Sdn Bhd, with a gross development value (GDV) of RM500 million.

05 January 2011

Potential Construction Projects Flow in 2011

During 4Q 2010, there were a series of positive news brought into construction sector. These news could possibly bring some cheers for local contractors during the "award ceremony" soon. To summarize it, let us examined and explored the news highlighted in 4Q 2010 for construction sector:-

OSK Research:
  • KL Mass Rapid Transit, with the cabinet approving 1 of the 3 lines proposed, which will run from Sg Buloh to Kajang. It is said that the Government will set up an SPV to fund the RM36bn job via bonds and other capital market instruments. Tenders for the Sg Buloh-Kajang line will be open in April while construction will commence in July. Gamuda-MMC JV, which was recently appointed as Project Delivery Partner, to be the ultimate beneficiary of the MRT. The JV is only allowed to tender for the tunneling works estimated at RM14bn.

04 January 2011

2011 Malaysia Outlook: Sunshine to Sunset

By Finance Malaysia,
Driven by better economy prospects, Malaysia successfully escape recession two years ago, particularly March 2009. Strong GDP growth and numerous government's initiatives is the main reason why local market experiencing a spectacular run-up since then. Today, our KLCI break another record high, by closing at 1551.89 points. So, what is the outlook for Malaysia in 2011?
Maybank expects KLCI will hit 1,700 mark in 2011
The Malaysia Index will continue to perform in line with the overall economy. More IPO will be issue. More merger & acquisitions activities will be seen. KLCI will be driven by the following factors:-
  • Improving sentiment
  • Follow through momentum from all time high
  • Hot capital inflows
  • Improving liquidity
  • Boost by plantation and oil & gas heavyweights, such as IOI, Sime and PetroChem
Preferred sector(s)...

01 January 2011

MyFM's Jack Lim to open a Shopping Mall

Strategically located between Puchong, Seri Kembangan and Putrajaya, a new shopping mall within a park was planned to open in October 2011. Said to be first of its kind in Malaysia, the mall was dubbed as an one-stop outdoor living mart.

Popular MyFM DJ, Jack Lim (ζž—εΎ·θ£)
The Project:-
  • Undertaken by Green Atmosphere Sdn Bhd (GA)
  • Called "Garden Explore"
  • RM 20 million Gross Development Value