Monday, December 31, 2007
Monthly Portfolio 31-December-2007
Goodbye 2007 and Welcome 2008 !!! My portfolio for the year 2007 !! No movement for my current holding. Have adjusted GUINESS purchase price after receiving 32 sen final dividend. Definitely will continue hunting for more value stock in this new year of 2008. I welcome all reader suggestions and provide me good dividend stock, particularly those stock that giving increasing dividend each year. Till then please find below and happy trading for year 2008 and make abundantly. May your resolutions come true......
Sunday, December 30, 2007
Thursday, December 27, 2007
Net Dividend Collected
Take a look of the net dividend that i collected thus far for my portfolio :-
Friday, December 21, 2007
Remisier Versus Online Trading
Wednesday December 19, 2007
Remisier versus online trading
In this article, we will look into whether we should buy shares online or use our existing remisier’s services to execute trade
COMMISSION rates for Internet trading and cash upfront transactions will be fully negotiable next year.
Although the full details on the actual implementation are not available yet, if the commission on Internet trading drops to a low of 0.15% (it may be even lower for some stockbroking firms), retailers may be tempted to execute the online transactions themselves without going through their remisiers.
Based on the existing structure, most retailers are paying a brokerage fee of about 0.6% per transaction. Assuming some stockbroking companies are willing to offer commission rates of 0.15% for Internet trading, there will be savings of 0.45% for retailers who trade online.
Nevertheless, we need to understand that transaction costs have two main components: explicit cost and implicit cost.
Explicit cost is the direct cost of trading, such as brokerage commission, stamp duties and clearing fees. Implicit costs are indirect trading costs like opportunity cost, market impact and missed trade costs.
Opportunity cost is the loss of opportunities due to the time retailers are required to spend on executing stock transactions instead of focusing on their main business or their work.
If you are working and have limited time to monitor the stock market, you may still need the remisier’s services to execute stock transactions.
I personally feel that it is really not productive to stay in front of the computer just to execute a few stock transactions. Sometimes, it can be quite time consuming getting the best price.
Any retailer who wants to trade online needs the necessary skills to be able to read market movements. He needs to know whether the current price is the best price to buy, or wait for a while because he may get a cheaper price later.
Market impact is the realised profit or loss reflecting the price movement of a share from the price decided on to the execution price.
Since remisiers follow market movements throughout the day, they should be able to read those movements better than we do.
They may not be able to get the best price in every trade but if they are able to save one or two bids lower than your intended purchase price, the cost saving can be quite substantial.
For example, your remisier is able to get one bid lower for you when you want to purchase a stock priced at RM1.50. You will save 1 sen over RM1.50, which is 0.67%.
Assuming your remisier is able to do that in eight out of 10 trades, the average cost saving will be 0.53% (8/10 x 0.67%).
This saving will still be greater than the commission of 0.45% that you would have saved through online trading.
Besides, you have not taken into consideration the time you could have saved and the opportunity loss on your current business if you spend too much time on share trading. The extra 0.45% that you pay is for your remisier’s skills.
As mentioned earlier, besides opportunity costs and market impact, there are other implicit trading costs, like missed trade costs.
Missed trade costs arise from the failure to execute a trade in a timely manner.
If you split a purchase of 20 lots of Stock A into two equal limit orders when the quote for Stock A is RM11.00 to RM11.10, the first order is executed at the buying price of RM11.00, after which the quotation moves up to RM11.10 to RM11.20.
The second order is placed and executed at RM11.10. You are paying an additional 10 sen (or 0.9%) for the remaining 10 lots.
Missed trade will cost you an additional 0.45% (0.5 x 0.9%) as 50% of your remaining stocks were traded at a price that was 0.9% higher.
A good remisier should be able to save you the above implicit costs. In this competitive business environment, remisiers need to continue upgrading their skills in order to give better services to their clients.
Remisier versus online trading
In this article, we will look into whether we should buy shares online or use our existing remisier’s services to execute trade
COMMISSION rates for Internet trading and cash upfront transactions will be fully negotiable next year.
Although the full details on the actual implementation are not available yet, if the commission on Internet trading drops to a low of 0.15% (it may be even lower for some stockbroking firms), retailers may be tempted to execute the online transactions themselves without going through their remisiers.
Based on the existing structure, most retailers are paying a brokerage fee of about 0.6% per transaction. Assuming some stockbroking companies are willing to offer commission rates of 0.15% for Internet trading, there will be savings of 0.45% for retailers who trade online.
Nevertheless, we need to understand that transaction costs have two main components: explicit cost and implicit cost.
Explicit cost is the direct cost of trading, such as brokerage commission, stamp duties and clearing fees. Implicit costs are indirect trading costs like opportunity cost, market impact and missed trade costs.
Opportunity cost is the loss of opportunities due to the time retailers are required to spend on executing stock transactions instead of focusing on their main business or their work.
If you are working and have limited time to monitor the stock market, you may still need the remisier’s services to execute stock transactions.
I personally feel that it is really not productive to stay in front of the computer just to execute a few stock transactions. Sometimes, it can be quite time consuming getting the best price.
Any retailer who wants to trade online needs the necessary skills to be able to read market movements. He needs to know whether the current price is the best price to buy, or wait for a while because he may get a cheaper price later.
Market impact is the realised profit or loss reflecting the price movement of a share from the price decided on to the execution price.
Since remisiers follow market movements throughout the day, they should be able to read those movements better than we do.
They may not be able to get the best price in every trade but if they are able to save one or two bids lower than your intended purchase price, the cost saving can be quite substantial.
For example, your remisier is able to get one bid lower for you when you want to purchase a stock priced at RM1.50. You will save 1 sen over RM1.50, which is 0.67%.
Assuming your remisier is able to do that in eight out of 10 trades, the average cost saving will be 0.53% (8/10 x 0.67%).
This saving will still be greater than the commission of 0.45% that you would have saved through online trading.
Besides, you have not taken into consideration the time you could have saved and the opportunity loss on your current business if you spend too much time on share trading. The extra 0.45% that you pay is for your remisier’s skills.
As mentioned earlier, besides opportunity costs and market impact, there are other implicit trading costs, like missed trade costs.
Missed trade costs arise from the failure to execute a trade in a timely manner.
If you split a purchase of 20 lots of Stock A into two equal limit orders when the quote for Stock A is RM11.00 to RM11.10, the first order is executed at the buying price of RM11.00, after which the quotation moves up to RM11.10 to RM11.20.
The second order is placed and executed at RM11.10. You are paying an additional 10 sen (or 0.9%) for the remaining 10 lots.
Missed trade will cost you an additional 0.45% (0.5 x 0.9%) as 50% of your remaining stocks were traded at a price that was 0.9% higher.
A good remisier should be able to save you the above implicit costs. In this competitive business environment, remisiers need to continue upgrading their skills in order to give better services to their clients.
Friday, December 7, 2007
How Much is this affecting you with minimum $40 brokerage Fee Next Year?
Is imposing minimum brokerage of $40 create impact to KLSE or otherwise ?
Scenario 1 :- Buying penny stock…..
a) Purchase value 1,000 units @ $1 = 1000.00
b) Brokerage @ 0.42% = 4.20 but minimum is 40.00
c) Clearing Fee @ 0.03% = 0.30
d) Stamp Duty @ 1.00/1000 = 1.00
Total Purchase Cost = 1041.30
You need 9 sen to breakeven, coz, buy + sell will cost you about 82+…..
Compare to old calculation, total purchase cost for above scenario will cost you 1013.30
You need 3 sen to breakeven, your buy+sell is relatively much smaller, about 26+…..
Scenario 2 :- Buying Big Cap…..
a) Purchase value 1,000 units @ $10 = 10000.00
b) Brokerage @ 0.42% = 42.00
c) Clearing Fee @ 0.03% = 0.30
d) Stamp Duty @ 1.00/1000 = 10.00
Total Purchase Cost = 10055.00
You need 12 sen to breakeven, coz, buy + sell will cost you about 110+…..
No change with old calculation as the minimum brokerage ($40) is fully utilized.
So folk, in order to fully utilize your brokerage fee, government is encourage you to buy more instead. Will this affect small timers the most ?? Currently with 9 sen up we can afford to have a profit but with the introduction of minimum $40 charge this 9 sen in turn become your breakeven point unless of course if you can afford to buy in bulk then is a difference scenario. This is bad, imagine, the current lot size is 1 lot = 100 units, if someone thrown 100 units share to you out of the 10,000 units you queued. You will be suffering with minimum of 80+ charge with the mere 100units share that you acquired. I can see that there is no point of buying small on penny stock now because the gain is just too insignificant for one to expect and the gain may just well serve as a subsidy for the brokerage fee unless a jackpot was hit that the counter just rocket high. Thus, folk stay big from now onward, there isn’t much place for small anymore.
Scenario 1 :- Buying penny stock…..
a) Purchase value 1,000 units @ $1 = 1000.00
b) Brokerage @ 0.42% = 4.20 but minimum is 40.00
c) Clearing Fee @ 0.03% = 0.30
d) Stamp Duty @ 1.00/1000 = 1.00
Total Purchase Cost = 1041.30
You need 9 sen to breakeven, coz, buy + sell will cost you about 82+…..
Compare to old calculation, total purchase cost for above scenario will cost you 1013.30
You need 3 sen to breakeven, your buy+sell is relatively much smaller, about 26+…..
Scenario 2 :- Buying Big Cap…..
a) Purchase value 1,000 units @ $10 = 10000.00
b) Brokerage @ 0.42% = 42.00
c) Clearing Fee @ 0.03% = 0.30
d) Stamp Duty @ 1.00/1000 = 10.00
Total Purchase Cost = 10055.00
You need 12 sen to breakeven, coz, buy + sell will cost you about 110+…..
No change with old calculation as the minimum brokerage ($40) is fully utilized.
So folk, in order to fully utilize your brokerage fee, government is encourage you to buy more instead. Will this affect small timers the most ?? Currently with 9 sen up we can afford to have a profit but with the introduction of minimum $40 charge this 9 sen in turn become your breakeven point unless of course if you can afford to buy in bulk then is a difference scenario. This is bad, imagine, the current lot size is 1 lot = 100 units, if someone thrown 100 units share to you out of the 10,000 units you queued. You will be suffering with minimum of 80+ charge with the mere 100units share that you acquired. I can see that there is no point of buying small on penny stock now because the gain is just too insignificant for one to expect and the gain may just well serve as a subsidy for the brokerage fee unless a jackpot was hit that the counter just rocket high. Thus, folk stay big from now onward, there isn’t much place for small anymore.
Thursday, November 29, 2007
Monthly Portfolio 29-November-2007
Added GENTING, MNRB & more RESORT to my portfolio this month. As usual, nothing special to my portfolio except waiting for dividend patiently. Have adjusted YILAI purchase price after receiving 5sen of dividend. One thing to take note is that the trading volume is declining, does this indicate that the hot money is pulling out slowly ? If so how much will this affect KLCI this time round ? Will the "Synergy Drive" listing spur some excitement to KLSE ? I guess only time will tell.....lets wait see...tomorrow....
Tuesday, November 20, 2007
Dividend Yielding Stocks - PBBANK, PANAMY, MNRB, GUINNESS, BJTOTO & APOLLO
Listed below are some of the high dividend yielding stocks. These stocks have been consistantly paying good dividend without failed. Some DY is as high as 10% based on current price, one can just investing in this type of counter to profit the dividend and still much better off than putting the money in FD for a mere 3.7%.
PBBANK - Dividend Yielding 6%
PANAMY - Dividend Yielding 10%
MNRB - Dividend Yielding 9%
GUINESS - Dividend Yielding 8%
BJTOTO - Dividend Yielding 7%
APOLLO - DIvidend Yielding 8%
Sunday, November 11, 2007
EKSONS & LHH
Alicafe, below is for you, hope it help. Obviously you can see LHH is on the uptrend and EKSONS is on the downtrend. There is saying "buy on support and sell at resistance" but is all depend whether the trend is up swing or down swing. Take your judge carefully. Determine the S&R is important as it will help you to execute your trades more accurately.
Monday, October 29, 2007
Monthly Portfolio 29-October-2007
This month i have added 2 more stocks in my portfolio. The first one is PANAMY, i have been tempting to buy this stock since many months back and could not get the right time and right price. Eventually decided to settle with RM10.70 and reason buying this is simple, that is none other than "dividend" that i'm looking for. This company has been paying solid dividend for many years back till now and i like this so much as it suit my type. The second stock that i have been ventured in is IOICORP. I believe that there is still room for grow as the commodity prices for oil palm is kept pressing new record high like oil. Thus, plantation stocks in here to play.
Other than the above, i have adjusted the purchase price for BJTOTO, CARLSBG, MAYBULK and RESORTS after receiving dividend of 10 sen, 5 sen, 8 sen and 2.88 sen respectively. Please find below updated of my portfolio. Till then happy trading.
Wednesday, October 10, 2007
5077-MAYBULK MALAYSIAN BULK CARRIERS BHD
MALAYSIAN BULK CARRIERS BERHAD ("MBC or the Company")
Article Entitled: "Buoyant rates to lift MBC profit"
We refer to the query by Bursa Malaysia Securities Berhad vide its letter dated
6 September 2007, in relation to a news article appearing in The New Straits
Times, Biznews section, page 40 on Thursday, 6 September 2007 and in particular
the following statements:
"MALAYSIAN Bulk Carriers Berhad (MBC) ... said its net profit this year could
rise as much as 17 per cent...."
"... full-year profit could reach between RM360 million and RM365 million...."
In response to the above query, Mr Kuok Khoon Kuan did not give percentage nor
did he give any comparison between the 2006 and expected 2007 performance.
However, as quoted in the Financial Daily of 6th September 2007, Mr Kuok
disclosed that “There is no let up or signs that it (the shipping industry) is
going south-bound anytime soon. For the second half of 2007, the Baltic Dry
Index (“BDI”) has been going up, so there is no doubt that the performance will
be equally strong.”
Mr Kuok commented that in view of the strong drybulk market as indicated by the
BDI, if profit before tax (PBT) for first half 2007 was extrapolated, then the
full year PBT would be about RM360 million to RM365 million.
We wish to clarify that the quoted figures were not intended to refer to any
financial estimate, forecast or projection of our Group.
Article Entitled: "Buoyant rates to lift MBC profit"
We refer to the query by Bursa Malaysia Securities Berhad vide its letter dated
6 September 2007, in relation to a news article appearing in The New Straits
Times, Biznews section, page 40 on Thursday, 6 September 2007 and in particular
the following statements:
"MALAYSIAN Bulk Carriers Berhad (MBC) ... said its net profit this year could
rise as much as 17 per cent...."
"... full-year profit could reach between RM360 million and RM365 million...."
In response to the above query, Mr Kuok Khoon Kuan did not give percentage nor
did he give any comparison between the 2006 and expected 2007 performance.
However, as quoted in the Financial Daily of 6th September 2007, Mr Kuok
disclosed that “There is no let up or signs that it (the shipping industry) is
going south-bound anytime soon. For the second half of 2007, the Baltic Dry
Index (“BDI”) has been going up, so there is no doubt that the performance will
be equally strong.”
Mr Kuok commented that in view of the strong drybulk market as indicated by the
BDI, if profit before tax (PBT) for first half 2007 was extrapolated, then the
full year PBT would be about RM360 million to RM365 million.
We wish to clarify that the quoted figures were not intended to refer to any
financial estimate, forecast or projection of our Group.
Monday, October 1, 2007
Public Bank set to sustain record
It plans to go big in China
By ELAINE ANG
PUBLIC Bank Bhd (PBB) has the distinction of being one of the most favoured banking stocks of the investment fraternity – churning out solid earnings each financial year and lining shareholders' pockets with fat dividends.
Its asset quality is the best in the industry with net non-performing loans ratio standing at 1.5% as at end-June. This has not compromised loans growth, which has been sustaining at double-digits for some years.
The bank's prudence has also stood it in good stead, as it was not affected by the US subprime crisis.
The banking group's excellent performance has been recognised industry-wide bagging it many awards throughout the years, enough to fill a trophy cabinet and more.
Tan Sri Teh Hong PiowSuch an outstanding track record raises the question of whether PBB's performance is sustainable in an increasingly competitive industry thus putting much pressure on the banking group to continue to perform.
Chairman and founder Tan Sri Teh Hong Piow is unfazed and is confident PBB would not disappoint its shareholders.
“We intend to sustain our track record of delivering financial performance, enhancing shareholder value and rewarding shareholders with strong dividend policy.
“This will be underpinned by continued adherence to good corporate governance and transparency.
“We also see ourselves as providing more cutting edge, innovative and superior products and services supported by a well-trained and motivated sales team,” he told StarBiz.
Teh's vision is for PBB to remain the premier bank – to be in the forefront of the Malaysian banking industry while expanding its regional presence particularly in the Asia-Pacific region.
“We believe in doing what we do best. Going forward, we will be driving our non-interest income by widening our suite of products and services. We intend to intensify our wealth management business,” he said.
One avenue is via Public Mutual Bhd. Presently, 22.6% of its fund is invested in the fast growing Asia-Pacific region, and 1.2% invested in Europe and the US.
Teh expects Public Mutual to make further inroads to increase its market share backed by its strong distribution network and excellent fund performance track record.
“We will continue to be on the lookout for synergistic opportunities. In this light, we will be forging strategic alliances with the best in their own industries.
“We are in the midst of finalising a tie-up with a global insurance company to customise bancassurance products as unique propositions to our customers,” he said.
As part of its plan to expand its regional presence, PBB has aggressively expanded its branch network since it acquired Asia Commercial Bank Ltd (ACB) in May last year.
ACB was subsequently renamed Public Bank (Hong Kong) Ltd.
The total number of branches has almost doubled to 24 from 13, with 22 branches in Hong Kong and two branches in Shenzhen, China.
“This expansion programme will be continued to enhance our market reach.
“We will also leverage on the existing 40 branches of Public Finance Ltd to cross-sell the bank’s products and services,” Teh said.
He added that PBB was also building its resources especially the sales force to aggressively penetrate the Chinese market to grow its loans.
This was particularly in retail lending with emphasis on consumer financing such as personal loans, motor vehicle financing and mortgage financing.
It will also focus on lending to middle market commercial businesses, particularly to small- and medium-sized enterprises.
Looking ahead, PBB will continue to strengthen its overseas operations in Indochina and look into the feasibility of providing a wider range of financial products.
This would be in in addition to the conventional loans and deposits.
Teh said Indochina was a relatively untapped market with good potential to develop the financial and insurance services.
CampuBank Lonpac, a joint venture between CampuBank, PBB and LPI Insurance Bhd commenced business operations on Aug 30 offering the full suite of general insurance products.
“We are very happy with the volume of business garnered so far in this short period of less than one month.
“Currently, there are no plans for any mergers and acquisitions.
“However, we are always open to financial-related business opportunities which have earnings sustainability and the potential to increase shareholder value,” Teh said.
As OSK Research banking analyst Chan Ken Yew puts it: “PBB is not a sexy stock. It is a bit boring like any low beta (risk) stock.
“It grows slowly but very steadily and investors like it as a dividend cum growth stock.
“I can comfortably say that the group should continue to sustain its performance for the next two to three years at least.
“Its aggressive expansion overseas in Hong Kong, China and Indochina should also help boost the group's future financials.”
By ELAINE ANG
PUBLIC Bank Bhd (PBB) has the distinction of being one of the most favoured banking stocks of the investment fraternity – churning out solid earnings each financial year and lining shareholders' pockets with fat dividends.
Its asset quality is the best in the industry with net non-performing loans ratio standing at 1.5% as at end-June. This has not compromised loans growth, which has been sustaining at double-digits for some years.
The bank's prudence has also stood it in good stead, as it was not affected by the US subprime crisis.
The banking group's excellent performance has been recognised industry-wide bagging it many awards throughout the years, enough to fill a trophy cabinet and more.
Tan Sri Teh Hong PiowSuch an outstanding track record raises the question of whether PBB's performance is sustainable in an increasingly competitive industry thus putting much pressure on the banking group to continue to perform.
Chairman and founder Tan Sri Teh Hong Piow is unfazed and is confident PBB would not disappoint its shareholders.
“We intend to sustain our track record of delivering financial performance, enhancing shareholder value and rewarding shareholders with strong dividend policy.
“This will be underpinned by continued adherence to good corporate governance and transparency.
“We also see ourselves as providing more cutting edge, innovative and superior products and services supported by a well-trained and motivated sales team,” he told StarBiz.
Teh's vision is for PBB to remain the premier bank – to be in the forefront of the Malaysian banking industry while expanding its regional presence particularly in the Asia-Pacific region.
“We believe in doing what we do best. Going forward, we will be driving our non-interest income by widening our suite of products and services. We intend to intensify our wealth management business,” he said.
One avenue is via Public Mutual Bhd. Presently, 22.6% of its fund is invested in the fast growing Asia-Pacific region, and 1.2% invested in Europe and the US.
Teh expects Public Mutual to make further inroads to increase its market share backed by its strong distribution network and excellent fund performance track record.
“We will continue to be on the lookout for synergistic opportunities. In this light, we will be forging strategic alliances with the best in their own industries.
“We are in the midst of finalising a tie-up with a global insurance company to customise bancassurance products as unique propositions to our customers,” he said.
As part of its plan to expand its regional presence, PBB has aggressively expanded its branch network since it acquired Asia Commercial Bank Ltd (ACB) in May last year.
ACB was subsequently renamed Public Bank (Hong Kong) Ltd.
The total number of branches has almost doubled to 24 from 13, with 22 branches in Hong Kong and two branches in Shenzhen, China.
“This expansion programme will be continued to enhance our market reach.
“We will also leverage on the existing 40 branches of Public Finance Ltd to cross-sell the bank’s products and services,” Teh said.
He added that PBB was also building its resources especially the sales force to aggressively penetrate the Chinese market to grow its loans.
This was particularly in retail lending with emphasis on consumer financing such as personal loans, motor vehicle financing and mortgage financing.
It will also focus on lending to middle market commercial businesses, particularly to small- and medium-sized enterprises.
Looking ahead, PBB will continue to strengthen its overseas operations in Indochina and look into the feasibility of providing a wider range of financial products.
This would be in in addition to the conventional loans and deposits.
Teh said Indochina was a relatively untapped market with good potential to develop the financial and insurance services.
CampuBank Lonpac, a joint venture between CampuBank, PBB and LPI Insurance Bhd commenced business operations on Aug 30 offering the full suite of general insurance products.
“We are very happy with the volume of business garnered so far in this short period of less than one month.
“Currently, there are no plans for any mergers and acquisitions.
“However, we are always open to financial-related business opportunities which have earnings sustainability and the potential to increase shareholder value,” Teh said.
As OSK Research banking analyst Chan Ken Yew puts it: “PBB is not a sexy stock. It is a bit boring like any low beta (risk) stock.
“It grows slowly but very steadily and investors like it as a dividend cum growth stock.
“I can comfortably say that the group should continue to sustain its performance for the next two to three years at least.
“Its aggressive expansion overseas in Hong Kong, China and Indochina should also help boost the group's future financials.”
Saturday, September 29, 2007
Monthly Portfolio 29-September-2007
There isn't any movement on my portfolio, still holding my same old stocks. Has been quite lazy lately to post anything here. My focus has been diverted to Forex lately and still generating profit slowly & steadily. Below is my portfolio for the month of September, till then happy trading. Sayonara...
Friday, September 7, 2007
Dry-bulk shipping rates reach new highs
By C. S. TAN
PETALING JAYA: The Baltic Dry Index (BDI) crossed the psychological 8,000-point level, closing at a new high of 8,090 on Wednesday.
With the latest surge in the index, the BDI, which measures commodity shipping costs of various routes and ship sizes, has averaged 6,950 so far in the current quarter, 16% higher than the average 5,983 in the second quarter this year.
The average in the current quarter is 93% higher than the average 3,593 in the corresponding quarter last year.
A Bloomberg report quoted China Cosco Holdings Co chairman Wei Jiafu as saying yesterday that shipping rates for dry-bulk cargo, such as iron ore and coal, would continue to rise as China's economy would see robust growth for the next 20 years.
In another report, Bloomberg quoted China Ocean Shipping (Group) Co deputy director of research and development Yang Shicheng as saying that China would import 390 million tonnes of iron ore this year, 11% more than last year.
That would hold freight rates at record highs, he said, adding that iron ore would remain the key driver of freight rates, having replaced grain since the start of the century.
AmResearch said in an update report yesterday that dry-bulk charter rates set all-time highs again last week, with average Capesize spot charter rates ending the week at close to US$125,000 a day, while the average Panamax spot charter rates finished at over US$62,000 a day.
Capesize refers to ships that are too large to pass through the Suez Canal and Panama Canal, and which have to go around the Cape of Good Hope or Cape Horn. Panamax refers to ships that are too big to go through Panama Canal.
AmResearch cited a media report that an aluminium smelter would be put up in Sarawak by a joint venture between Rio Tinto and Cahya Mata Sarawak Bhd.
“We view this news as positive to our bulk universe, both for the long haul (Maybulk) and feeder services (Hubline).
“Hubline will have first mover advantage due to its stronghold in resource-rich Sarawak, and with the expected delivery of two handysize vessels by 2009, Hubline will be running a total of 26 bulk vessels,” AmResearch said.
Handysize is the most widely used type of dry-bulk vessel and are between 15,000 and 50,000 tonnes deadweight in size.
PETALING JAYA: The Baltic Dry Index (BDI) crossed the psychological 8,000-point level, closing at a new high of 8,090 on Wednesday.
With the latest surge in the index, the BDI, which measures commodity shipping costs of various routes and ship sizes, has averaged 6,950 so far in the current quarter, 16% higher than the average 5,983 in the second quarter this year.
The average in the current quarter is 93% higher than the average 3,593 in the corresponding quarter last year.
A Bloomberg report quoted China Cosco Holdings Co chairman Wei Jiafu as saying yesterday that shipping rates for dry-bulk cargo, such as iron ore and coal, would continue to rise as China's economy would see robust growth for the next 20 years.
In another report, Bloomberg quoted China Ocean Shipping (Group) Co deputy director of research and development Yang Shicheng as saying that China would import 390 million tonnes of iron ore this year, 11% more than last year.
That would hold freight rates at record highs, he said, adding that iron ore would remain the key driver of freight rates, having replaced grain since the start of the century.
AmResearch said in an update report yesterday that dry-bulk charter rates set all-time highs again last week, with average Capesize spot charter rates ending the week at close to US$125,000 a day, while the average Panamax spot charter rates finished at over US$62,000 a day.
Capesize refers to ships that are too large to pass through the Suez Canal and Panama Canal, and which have to go around the Cape of Good Hope or Cape Horn. Panamax refers to ships that are too big to go through Panama Canal.
AmResearch cited a media report that an aluminium smelter would be put up in Sarawak by a joint venture between Rio Tinto and Cahya Mata Sarawak Bhd.
“We view this news as positive to our bulk universe, both for the long haul (Maybulk) and feeder services (Hubline).
“Hubline will have first mover advantage due to its stronghold in resource-rich Sarawak, and with the expected delivery of two handysize vessels by 2009, Hubline will be running a total of 26 bulk vessels,” AmResearch said.
Handysize is the most widely used type of dry-bulk vessel and are between 15,000 and 50,000 tonnes deadweight in size.
Thursday, August 30, 2007
Monthly Portfolio 28-August-2007
This month (August 2007), KLSE market took a tumble on concerns of US Subprime mortgage tussle. However the KLCI meltdown recover from a 17% drop to a 9% drop as at yesterday closed. Would this bumpy ride continues....? I would say it certainly depend very much on US Dow Jones, it seem like DJ creating a tank for Asian Markets. When DJ is up, Asian Market would follow and vice versa. The dust has not settled as yet.
This month i bought in JAKS for a quick hit and run at 0.90 sen, luckily was able to dispose at 0.93 sen for a small gain. It was never my policy to buy this type of stock but just can't resist the temptation to join others for a quick punt. Other than this i also received a 25% dividend on PBBANK and have adjusted the purchase price accordingly. My portfolio's profit shrunk from 66% to 60%, a 6% reduction compare to last month. Will certainly take a closer look at the market since September is a budget month, traditionally some tide would be expected especially some of the tobacco & beverage counters. Till then happy trading.
Thursday, August 16, 2007
Public Bank not exposed to US subprime mortgage market
KUALA LUMPUR: THE Public Bank group has no exposure to the US subprime mortgage market and expects this year to be another year of strong performance, said chairman Tan Sri Teh Hong Piow.
"The Public Bank group's overall operations, including its Labuan Offshore Bank and overseas operations in Hong Kong and China, Indochina and Sri Lanka have absolutely no exposure to the US subprime mortgage market segment whether directly or indirectly in its investment portfolio," he said in a statement.
The unit trust funds managed by Public Mutual also do not have any direct or indirect investment in the US subprime mortgage market.
Teh expects the group's loans growth to be sustained at the annualised rate of 17% as achieved in the first half of the year.
"The group's customer deposits continue to grow strongly. Asset quality is expected to remain strong.
"Currently, the group's net non-performing loan ratio is only 1.5% – the lowest in the banking industry in Malaysia.
"With its healthy loan to deposit ratio of 75%, the group is very liquid," he said.
"The Public Bank group's overall operations, including its Labuan Offshore Bank and overseas operations in Hong Kong and China, Indochina and Sri Lanka have absolutely no exposure to the US subprime mortgage market segment whether directly or indirectly in its investment portfolio," he said in a statement.
The unit trust funds managed by Public Mutual also do not have any direct or indirect investment in the US subprime mortgage market.
Teh expects the group's loans growth to be sustained at the annualised rate of 17% as achieved in the first half of the year.
"The group's customer deposits continue to grow strongly. Asset quality is expected to remain strong.
"Currently, the group's net non-performing loan ratio is only 1.5% – the lowest in the banking industry in Malaysia.
"With its healthy loan to deposit ratio of 75%, the group is very liquid," he said.
Saturday, July 28, 2007
Monthly Portfolio 28-July-2007
KLSE market has a sell-down yesterday following the US market plunge overnight. KLCI dropped 26.12 points & settled at 1355.28 points. More selling would be expected next week. I am staying out of the market for the time being and might pick some quality stocks if i see some light at the end of the tunnel. Meanwhile my portfolio increase slightly despite of the sell-down yesterday compare to last month. However, may foresee greater impact after next week. Being longterm, i'm not worry much on the sell-down in-fact it create opportunity for me to get some quality stocks which is relatively high now. Till then happy trading.
Saturday, July 21, 2007
Resorts World begins share-buyback
Saturday July 21, 2007
Resorts World begins share-buyback
By KATHY FONG
PETALING JAYA: Resorts World Bhd kick-started its capital management plan with the commencement of its share-buyback scheme yesterday.
This came after the group had in a surprise move sold a 14% stake in loss-making Star Cruises Ltd last Friday for RM1.16bil cash.
Resorts World announced to Bursa Malaysia it bought back nine million shares at an average price of about RM4.15 a share, costing it RM37.36mil. The stock closed at RM4.22 yesterday, up 32 sen.
This is the first time that Resorts World has bought back its own shares.
Genting Bhd’s head of strategic investments and corporate affairs Justin Leong said: “As Resorts World’s largest shareholder, we are pleased that Resorts World has finally embarked on its capital management programme.
“We see this as a positive step towards enhancing value for all shareholders.”
In the past, there was criticism that Resorts World’s capital management was not efficient enough, given its large idle cash reserves.
Resort World’s cash pile is nearly RM2bil now and is expected to balloon to RM4bil by year-end.
Resorts World begins share-buyback
By KATHY FONG
PETALING JAYA: Resorts World Bhd kick-started its capital management plan with the commencement of its share-buyback scheme yesterday.
This came after the group had in a surprise move sold a 14% stake in loss-making Star Cruises Ltd last Friday for RM1.16bil cash.
Resorts World announced to Bursa Malaysia it bought back nine million shares at an average price of about RM4.15 a share, costing it RM37.36mil. The stock closed at RM4.22 yesterday, up 32 sen.
This is the first time that Resorts World has bought back its own shares.
Genting Bhd’s head of strategic investments and corporate affairs Justin Leong said: “As Resorts World’s largest shareholder, we are pleased that Resorts World has finally embarked on its capital management programme.
“We see this as a positive step towards enhancing value for all shareholders.”
In the past, there was criticism that Resorts World’s capital management was not efficient enough, given its large idle cash reserves.
Resort World’s cash pile is nearly RM2bil now and is expected to balloon to RM4bil by year-end.
Saturday, June 30, 2007
Monthly Portfolio 30-June-2007
This month my biggest gain is from BJTOTO after the share breaching the $5 psychological barrier. BJTOTO has reported its 4th Qtr result with a decrease of 18% profit and declared 7.5sen dividend for this qtr. Would likely to hold for a while for Bjtoto and monitor how the price move before taking any action to it. I have adjusted RESORT & YILAI purchase price after receiving dividend of 3sen & 8sen respectively. Below is my latest portfolio & there isn't any movement for this month as my focus has diverted to newly discover financial investment that is "Forex" trading at the moment...hehe...yeah..got new toy to play. I'm about 12% in profit right now for this new gizmo not bad huh...!! errr....till then Happy trading....
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