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Showing posts from January, 2015

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Russia Holds Key Rate at 21% Amid Surging Inflation

The Bank of Russia unexpectedly maintained its key interest rate at a record-high  21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to  8.9%  in November, well above the central bank’s  4% target , with inflation expectations reaching  13.9%  in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s  200-basis point hike  as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...

Market Daily Report (06 Jan 2015)

As crude oil slids further down to a new low since May 2009, the FBM KLCI follow suits with a drop of 1.15%.  As at time of writing of this post, the Brent crude oil was at US$51.57 a barrel while US crude oil was at US$48.81.  The FBM KLCI closed at 1,716.580 pts, a drop of 20.04 pts or 1.15%. With the oil price slump continued, analysts are not being too optimistic. TA Research chartist Stephen Soo told theedgemarkets.com that he did not see the market rebounding over the immediate term, and that it was possible the market could test new lows this year.   For the Top 10 Active, Top 10 Gainers and Top 10 Losers, you may find as below: Iris leads the Top active counter for the day United Plantation Bhd, DKSH Bhd, Ibraco Bhd and Muda Holdings Bhd are among the top 10 gainers today The decliners were lead by British American Tobacco (BAT), Syarikat Takaful Malaysia Bhd Regionally, market is also on a downtrend as oil pr...

Market Daily Report (05 Jan 2015)

It's the first Monday of 2015 and the market is already showing where it's going....DOWNTREND. FBM KLCI dropped 16.15 points as at 5pm today As the crude oil price continued to remain sluggish and the introduction of base rate, FBM KLCI responded in similar fashion, with a drop of 0.92% to close at 1,736.620 points. Oil price hit a 5 1/2 year low while Ringgit slump continued. Below are the top 10 gainers, top 10 losers and top 10 active for the day: Among the Top 10 Gainers are Panasonic, Hong Leong Bank, F& N, Carlsberg... Among the Top 10 Losers are British American Tobacco (BAT), Public Bank, PIE Industrial Bhd The most active counter for the day is Minetec With the oil prices and the Ringgit devalued even further, investors tend to get jittery about the possibility of another crisis happening, similar to what happened in 1998 although there are others who are optimistic about the future prospect in Malaysia and that the downtren...

The World's Two Richest Men Made $21 Billion Last Year

As everyone from Ted Turner to Drake has said, the hardest part of getting rich is making the first million. The rest just comes naturally. The fact that wealth begets more wealth was illustrated once again last year by Bill Gates and Warren Buffett, currently the two richest people on Earth. According to Bloomberg, the pair finished 2014 a combined $21.1 billion richer than when the year began. (Gates' fortune rose $8.1 billion to a total of $86.6 billion. Buffett's rose $13 billion; he's now worth $73.8 billion.) Gates and Buffett are aware of their privilege. They have both advocated for higher taxes on the wealthy. They have also poured billions of their own money into the Bill & Melinda Gates Foundation, one of the world's largest funders of charitable causes like infectious disease research, poverty reduction, and (more controversially) education reform. Source: Mother Jones

Weekly Investment Term #9

One of the asset class that's not mentioned as often in this blog is property. Today, we will try to talk a bit about one of the common metric that's being used to evaluate the value of a piece of investment property. EFFECTIVE GROSS INCOME is a metric commonly used to evaluate the value of a piece of investment property. It's calculated by adding the amount of income produced by the piece of property and the miscellaneous income, less vacancy costs and collection losses.  Here is an example: A condominium has an income of $1,000,000 if it is able to rent out all of its units (full occupancy). Historically, the condominium is unable to fill 10% of its units, meaning that it is unable to collect $100,000 ($1,000,000 * 0.1).  The Effective Gross Income for the property is $1,000,000 - $100,000, = $900,000 Some things to ponder when calculating EGI is the factors that can influence the vacancy costs and collection losses for a piece of property. The...

Market Daily Report (02 Jan 2015)

FBM KLCI kick off the year with a decline of 8.48 pts to close at 1,752.770. FBM KLCI started the year 2015 with a slight drop The drop is about 0.48% as the oil price downtrend seems to continue. Brent crude continues to trade at sluggish levels of US$57 per barrel.  The top gainers for the day are as follow: Nestle Bhd close at 68.88, up 0.038, Lafarge Malaysia Bhd increase 0.3 to close at 10.06, Hong Leong Financial Group Bhd up by 28 cents to 16.80 while Allianze also by 28 cents to 11.70. Below is the top 10 gainers for the day: Top 10 Gainers On the other end, leading the top losers are British American Tobacco with a decrease of RM1.10 to close at RM64, Kuala Lumpur Kepong dropped about 80 cents to RM22, DanaInfra Retail Sukuk also drop 80 cents to RM100. Below are the TOP 10 Losers of the day. Top 10 Losers Below are the top 10 Active counters for the day: According to report from TheEdge, investors are still cautious as c...