No la don't count ah long ... my own money ... 1k ... so even the company habis bankrupt ... lupus from this world. .... all i lose is only the 1k right ?

Dec 1, 2014 3,757.97 3,365.15
Nov 3, 2014 3,792.42 3,350.50
Oct 1, 2014 3,767.10 3,274.25
Sep 1, 2014 3,794.53 3,276.74
Aug 1, 2014 3,934.69 3,327.00
Jul 1, 2014 3,991.51 3,374.00

The above are STI monthly figures. 2nd column are the latest Yahoo numbers. 3rd column are figures I got about a month ago from Yahoo.

Why is there such a difference now? STI figures were adjusted since the start of 2015?

Thanks.

Thanks Gark.

I follow the interest rate - currency exchange rate relationship.

But ...

Overvalued means in high demand. If in high demand, then its value should be getting stronger than the US$. But A$ was dropping relative to US$ (like our RM).

Sorry for being such a slow learner, just cannot follow the overvalued and the drop in A$.

Thanks.

plan to put money in Indo FD.

previously rm1k= IDR3million

now rm1k = IDR3.5million.

This post has been edited by felixmask: Feb 9 2015, 06:04 PM

How much is their FD rate?

A bit jumpy for me when it comes to exchange rate related investment. Ha.

Very happy with EPF's 6.75%. Ha.

Okay I have a question.

I intend to open an online trading account without going through remscier means directly to the bank to lower commission rate and handling fee

Which bank would you recommend me for online trading, or intraday (day trading)? My parents ask me to open Maybank, is it okay? I heard that Hong Leong rate is quite attractive but I'm still not clear of the overall process.

And user friendly haha if that makes sense? Easier to maneuver around to buy and sell, stock watch, as in interface.

Hope you sifus could help me out with this. I really appreciate your feedback


Thank you

This post has been edited by Bangala: Feb 10 2015, 03:46 AM

Do compare their brokerage fees. Hong Leong as well as Jupiter securities has one of the lowest brokerage fees.

A currency depends on export-import trade balance. A high export country, and a net exporter will push up the currency as demand for the goods outpace the exchange of other currency for importation. In this case Australia sells iron ores, gold, and other minerals and form the export basis and the value is much higher than imports. When commodity prices are at all time high, the AUD$ also reach all time high due to demand for AUD$ to purchase those commodities.

Now the commodity prices has slumped and trade balance is approaching negative. The AUD$ demand will be slowing down, as less amount of export compared to imports. To revitalize the trade balance the currency is deemed overvalue (above fair value), and needs to be reduced to boost/balance export. The AUD$ is dropping slowly is due to the high interest rate in a world where there is no more high interest rates. Demand for the high interest rates is what keeping the currency in somewhat high demand. The government wants the currency to become lower as the large amount of AUD$ in FD is not going to help the economy.

Lets say price of commodity A price unchanged at USD $1 per kg. When AUD$ was 1:1 with USD, Australia company will get 1 AUD$ for every kg sold. Now lets say the exchange rate is AUD$ 0.9:1 USD$, The same company will get 1.11 AUD$ per kg. Also with cheaper exchange rate, it will balance the price dropping in terms of USD$, and the company earning will still be same. A cheaper AUD$ will also reduce import as the inverse happens, it is costlier to import.

To reduce the value of the AUD$, the primary function is via interest rate control, lower the interest rate the currency will drop, raise it will rise. Bust it also depend on other macro economics such as trade balance, economic growth, sovereign bond ratings & foreign currency reserves.

Lowering of currency = boost export, reduce import and improve the economy but raise inflation.

This post has been edited by gark: Feb 10 2015, 10:09 AM

On average Indo FD is 7.5%-9% p.a. for 3-6 months deposit.

1 year deposit with high amount (1 billion rupiah) can earn up to 10-11%

High currency risk though...

This post has been edited by gark: Feb 10 2015, 10:13 AM

you think worth it after the exchange rate loss?

still need to buy air ticket for that, custom currency declaration risk, theft/robbery risk, hotel cost in indo, etc figure out.

if look at chart their cureency are weaker after climb since 2012.

their peakc have reach..

mean..now rm1k = IDF3.5Million

after another 3 year when currency weak/ drop rm1k = IDR 3million

https://www.google.com.hk/?gws_rd=ssl#q=myr+1000+to+idr

Many many thanks Professor Gark!!! You should write a few books on economy, investment and also not forgetting Palm Oil close to your heart!

The recent drop in Aust's commodity prices explains the drop in A$ (spill over effect from China's slow down). A$ - US$ rate is not a measure of whether it is overvalued or not.

Got it now.

Terima kasih!

This post has been edited by plumberly: Feb 10 2015, 06:39 PM

Thanks.

Yes, currency risk is a big deterrent for me.

That is correct.

No. wrong way to calculate.

Your ABP (average buying price) = ((100x1) + (10000x5))/(10000+100) = RM 4.96

Sure you are capable of playing stock market?

^ Notice on Bursa closure, in lieu of the Chinese New Year.

Anyone here got invest with M+ Online? It is properly licensed right?

Any recommended forum or readings regarding investment besides lyn? Wanna read more .. thanks

This post has been edited by GymBoi: Feb 17 2015, 10:03 PM

gark
You mentioned that one of the key numbers for evaluating a bank is net interest margin (NIM).

While a bank's financial report shows net interest income, NIM is not given. Average Invested/Earning Assets are also not given. How do you compute NIM?

Or do you simply rely on ANALyst reports?



This post has been edited by river.sand: Feb 22 2015, 06:06 PM

M+ Online is the brand name of Malacca Securities Sdn Bhd, a participating organisation under Bursa Malaysia's list.

You can refer to http://www.bursamalaysia.com/market/securi...=1&alphabet=All

You can also check out links to other websites under https://forum.lowyat.net/topic/590947

Not all banks reveal their NIM, however you can calculate from their net interest income... but some banks do report this in thier presentation/ annual report. Some analyst report also shows this number.

NIM = Average interest rate charged - Average interest rate paid

Interest rate charged, is what they are charging for house loans, personal loan etc..

Interest rate paid, is what the bank paid to borrow money, cash on hand (in this case 0%), from deposits (savings, FD etc) and loan from other banks or BNM.

Most malaysian banks is operating on NIM of about 2.5%-3%

A strong NIM means the bank is at higher MARGIN and will be making MORE money from their loan.. and any loan growth will produce higher interest income. This is a proxy for an efficient bank.

Another thing to watch out is usually bank with high NIM, will tend to have poor NPL.. if you can find a bank with high NIM and good NPL AND a strong loan growth.. is a very good bank.

This post has been edited by gark: Feb 23 2015, 11:11 AM