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Hot Sector – When to buy Plantation stocks at their lows?

Thu 6 Dec 2018

 

Plantation stocks have fallen out of favor for some time as crude palm oil (CPO) price went on a downtrend. If you are an elite trader, you would probably have sold plantation stocks in your portfolio some time back. The interesting question is now whether you should buy them back and when.

Let’s look at the fundamentals of the sector. A research house has only just recommended an Underweight on the sector. It believes that 4 primary issues will likely play out in 2019, hence exerting downward pressure on the CPO price.

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Hot Sector – Can banking stocks reverse the market downtrend?

Trading room – Tue 4 Dec 2018

 

According to one analyst’s report, the latest Oct 2018 Bank Negara Statistics showed that Industry loan growth in the banking sector gained traction to 6.0% YoY (year-on-year) in Oct 2018 (Sept 2018: 5.7% YoY) supported by a stronger momentum in non-household loans while growth in household loans remained stable.

The year-to-date (YTD) annualized industry loan growth was 5.4%, and it remained close to its expectation of 5.0% for 2018.

The Oct 2018 household loan growth was seen as steady at 5.9% YoY albeit a slight moderation after the tax holidays according to the analyst report.

The slightly slower pace was said to be contributed by a slowdown in the growth of mortgage loans, loans for purchase of securities and outstanding credit card receivables.

Meanwhile, loans for purchase cars were seen still holding up.

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Hot Sector – Should you seek refuge in rubber glove stocks?

Trading room – Fri 30 Nov 2018

 

Many analysts are pointing to the high valuations of rubber glove stocks as a deterrent to investing in glove makers.

Yet, it was reported that those who balked at buying glove stocks at the end of last year, because they believed valuations were too stretched, could be kicking themselves given that the share prices of the four largest glove manufacturers have outperformed the market by a long shot.

And rubber glove companies have continued to outperform, be it in earnings or share price performance. The interest in rubber glove stocks could also be due to their resilient business, which is a safe harbor in the face of many problems encountered in other sectors on Bursa Malaysia.

 

Performance of rubber glove stocks

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Hot Sector – How to trade the Technology sector?

Trading room – Wed 21 Nov 2018

 

The US Dow Jones Industrial Average and S&P 500 fell sharply on Tuesday and turned negative for the year as a decline in the retail stock, Target pressured retailers, while some of its most popular tech shares dropped again.

The 30-stock Dow dropped 551.80 points to 24,465.64 and the S&P 500 plunged 1.8 percent to close at 2,641.89. Meanwhile, the Nasdaq Composite also dropped 1.7 percent to 6,908.82.

The continued fall on Tuesday’s came a day after members of the popular “FAANG” trade —Facebook, Amazon, Apple, Netflix, and Google-parent Alphabet — all closed in a bear market, down more than 20 percent from their 52-week highs (a widely used barometer by Wall Street).

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