MONEY MASTER

Key Takeaways • Malaysia’s 2Q earnings season came in better than feared, prompting analysts to lift KLCI targets. • RHB Research raised its year-end KLCI forecast to 1,620 points, citing fiscal support, ringgit strength, and easing tariff risks. • CIMB Securities flagged resilient dividends and sectoral growth in REITs, plantations, transport, and gaming despite aggregate earnings pressure. • MBSB Research maintained a 1,650-point KLCI target, pointing to inexpensive valuations and potential foreign inflows as Fed rate cuts resume. Equities The FBM KLCI has rebounded nearly 13% from April lows during the peak of global tariff uncertainty, trimming its year-to-date decline to about 3%. RHB Research raised its year-end KLCI target to 1,620, underpinned by fiscal and monetary measures, robust domestic liquidity, and stronger ringgit inflows. Bloomberg data shows the consensus bottom-up target has also improved, now at 1,767 points compared with 1,751 previously. CIMB Securities described...

Intel’s reported deal to receive CHIPS Act funding  in exchange for equity  may mark a major shift in how U.S. semiconductor subsidies are distributed—impacting shareholder value across the industry.  What’s Changing? The  White House is considering converting part of the CHIPS Act funding into equity stakes , starting with Intel. This would mean: No more “free cash”—funding would come with  ownership strings attached Potential  voting rights  and  governance conditions Long-term implications for  share dilution Why Investors Should Care This shift transforms CHIPS grants from  non-dilutive aid  to  low-cost but dilutive capital . Here’s what it means:   Balance Sheet Relief : Improves liquidity for chipmakers   Governance Risk : Brings in government involvement and restrictions   Valuation Impact : Likely to apply a “policy discount” on stocks Who's Most Exposed? The risk depends on how  CHIPS/DoD awards co...

Maintain Neutral, Preference: Axiata Malaysia telco sector Muted outlook   4Q15 results were mixed – mobile players struggled while it was more business-as-usual for fixed-line players. 2016 guidance was unanimously muted, and we have lowered FY16/17 net profit forecasts across the board. We now have HOLD ratings on all our stocks. On a relative basis, our preference is for Axiata (HOLD, TP: MYR6.10).  4Q15: Mobile struggled; routine for fixed 4Q15 proved to be another challenging quarter for the mobile players, with net profit of the Big 3 all below expectations. The Big 3 again posted sequential service revenue decline (-0.7% QoQ), which meant fullyear service revenue of the Big 3 declined for a second consecutive year (-1.0% YoY). Net profit was further depressed by higher-than-expected depreciation, interest expense and taxes. Meanwhile, full-year results of fixed-line players (TM and TDC) were not as negative, with TM in line and TDC above expectations on f...

I have read an interesting article regarding Malaysian investors are not very smart. There are other similar kind of surveys and articles that seem to show that Malaysians especially the Gen Y-ers are shying away from equities investment and prefer to hold cash than any other investment assets. Below are the whole article taken from Free Malaysia Today - Our Investors Are Not Very Smart, by Scott Ng. Only 2% of Malaysian investors are able to answer survey questions. PETALING JAYA: Malaysian investors are not as smart as they think they are. A survey has painted a dismal picture, saying our investors lack financial literacy. The survey found that out of all the Malaysian participants in the survey, only 2% were capable of answering the five questions posed to them in the survey. This is in comparison with Singapore’s 20% and an 11% overall for all participants. The latest Manulife Investor Sentiment Index in Asia (Manulife ISI) is based on 3,500 interviews across seven As...

Well I was really busy lately and that's why the failure to maintain the update on this even though I believe it is important. In the world of financial and investment, it is best that we learn the language right. Anyway, today I'm gonna share a key part of investment, in strategy and planning on the suitable investment plan for oneself, it is first important for us to find out about ASSET ALLOCATION . Asset allocation In one of the dictionary, asset allocation is defined as a financial strategy for reducing risk in an investment portfolio in order to maximize return. So how do you really reduce risk and maximize the return in your portfolio? Asset allocation aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance and investment horizon.  Depending on the amount of your investment, it is important to look at the few key investment types...equities, fixed-income, and cash and equivalents - h...