Hi, I am new to the stock market. Can I ask how do the big boys acquire the stocks at price of 0??

Hi all, may I know how can we check how much foreign funds, local institutions and local retailers being invested in Malaysia share market now?

Come across this, what do you guys think? Is it wise to buy now?


https://klse.i3investor.com/servlets/stk/1155.jsp


DeepValueInvestor https://www.marketwatch.com/story/bank-stoc...owerfully-onc...
https://www.abc.net.au/news/2020-06-26/wall...nes-bank-stoc...

Lai, time to fly, banks' QR2 reports will not be as bad as priced in expectations.
26/06/2020 12:15 PM


DeepValueInvestor As for stock picks, KLCI blue chips like Axiata, Maybank, CIMB, GenM, Genting, Sime, MISC, Topglove and Harta should witness rotational buying interests to aid uptrend resumption ahead of the mid-year window dressing.
Source: HLB research highlight

Time to collect before buying interest switch from gloves and gaming to banks. Also, in 2008-2009, some banks despite having -eps in some quarters, the banking stocks just shot up when the recession ended on March 2009 (after QE started on Nov 2008)
26/06/2020 12:17 PM

negative earnings growth. So making money, but making lesser and lesser with time. Maybe because too much of 'illegal' cigarette floating in the market.

Once retail traders come to a realization that the funds are exhausted, all will start cutting loss and the share prices will plunge. Better go with long term dividends now, too much risk for too little reward.
Just my 2 cents

I guess foreign fund will stay out of malaysia market until politic stabilizes (to avoid unnecessary risk)

Banks are slowly making a comeback like how they did in 2009-2011?

Exactly, means have room for growth until at least precovid price like how most banks did (and broke their pre-financial crisis high)?

Yes, I think I do. Banks (major income) earn the spread between deposits that it pays consumers and the rate it receives from their loans.
Will loan moratorium affect banks' profitability? Yes, it delays their earnings until SEP 30. This is priced in and banks will resume their earnings from SEP 30. So perfect timing to collect before SEP 30.
Why is it priced in? https://www.thestar.com.my/business/busines...l-144-on-waiver
According to the source, net profit to fall 14.4%. But have a look at the banks' PE. Some PE (if not all) fell more than 14.4%. This means that the banks are oversold. Perfect opportunity to collect those oversold counters (single digit PE with double digit ROE)

Will OPR affect banks' profitability? Not really.
Why? Consider people who took loans pre-covid
(i) Those who took floating (variable) rate loan - The spread remains the same with an exception which will be discussed below; no effect
(ii) Those who took fixed rate loan - the spread widens now; increases profitability post SEP30. Yes, people might refinance the loan, but this requires them to pay an application fee (extra insignificant profit for banks)

Other factors
(i) Companies who have cash flow problem, now issues more bonds to raise cash. Now, more corporate bonds for the banks to sell (extra insignificant profit)
(ii) Loan impairment. Yes, banks MIGHT lose money when they cant receive their loan repayments. Why 'might'? Because if banks auction off the collateral more than the remaining loan repayments, they are not making any losses
(iii) With cheap loans available, more people might start taking loans; increases profitability post SEP 30.
(iv) With banks' FD lowered, some might choose to go into riskier assets that pays dividend (treating them as higher risk FD). Lowering interest rate indirectly inflate the market's average PE.

All I can see is massive earnings after SEP 30, and a lot of potential upside from KL Finance index.



Banks totally carried KLSE on 8 July 2020.

With the gloves hype slowly fading with lower ASP, banks should be a better investment in the longer run.
https://www.thestar.com.my/business/busines...ce-to-normalise

Look at the trading volume for bank stocks (especially cimb): 12mil rivals hartalega's and topglov's volume.
https://finance.yahoo.com/quote/%5EKLSE/components/

Also foreign fund was the net buyer yesterday. Maybe foreign funds prefer bank stocks too?


*The above shared info might be wrong* Please correct me if I am wrong so that I can learn better

Wise choice brother, the banks are carrying the market again.

I just sailang some selected bank counters recently after studying the fundamentals and the historical patterns. To me, banks are still much safer than gloves in the long run.

Stock price is only as good as what the next buyer (or punter) is willing to pay for.

Going back to the fundamentals is a much safer option to invest. Buying undervalued stocks for the long term is a much safer option than buying overvalued stocks for short term trade. The only downside of buying undervalued stocks is that you cant make quick profit because the markets can remain irrational and inefficient longer than you can remain solvent. In layman terms, you might sell your undervalued stocks before the asset's prices truly reflect their values.

i mean those u think can truly buy-keep and not risk selling becos "low got lower"? YES

The bank sector took a big hit from all the negativity in the market (OPR cut, possible NPLs). I personally think this is the perfect time to collect before the negativity fades. Banks will come back before the economy recovers (just look at how they came back in 2009-2011 after the sharp selling in 2008). I would say try looking for financial stocks that lost a lot of their market cap and read up the balance sheet, income and cash flow statement to pick banks that suits your risk appetite best. I am heavily invested in financial stocks because they are very resilient and will not go into PN17 like AA.

My 3 biggest holdings are
(i) BIMB and TAKAFUL as their past performance prior covid were superb, and their price look attractive. These 2 are the perfect growth stocks that give dividends better than the FDs (unlike most tech stocks - little to no dividends).
(ii) CIMB because I am taking advantage of the hin leong and hontop exposure that causes the huge price drop (now extremely low P/B). Plan to sell after riding the wave when it comes back like how banks stocks did in 2009-2011 unless its ROE improves.

Maybank and pbb are not my biggest holdings despite their superb performance prior covid because
(i) pbb was way overvalued prior covid and still slightly is
(ii) maybank share price now is already very close to their price prior covid, there is nothing to bottom fish here.

My approach definitely cannot result in huge and quick profit like the gloves. But with fundamentals supporting my decisions, at least I wont panic sell if it drops but will continue to collect more.

There are other undervalued stocks in other sectors too. But I am heavily invested in the financial sector NOW because there is a better opportunity to bottom fish HERE NOW.

Things will get very ugly when the bubble pops. But on the bright side, it offers a good opportunity to short FKLI ESPECIALLY IF the funds removed from gloves are NOT reinvest into other stocks.

In the end only bankers/market maker and some of the earlier and/or luckier ones will make out of this bubble richer.

Not yet, it just started to deflate. How soon will it burst? We wont know. At least not until lim and banks have cleared out their remaining shares.

Maybe we should start buying put warrants?

For trading, anything can be a good buy!
For quicker gains, FKLI because you can make money in both up and down directions.

For investing, look for the fundamentally good beaten down stocks that will recover with economy recovery.

Whats T+2 +3?

In investing, always remember that Rome was not built in a day. In trading always remember that Hiroshima and Nagasaki were destroyed in a day


Its alright man, at least you have locked in some profits in the early gloves run. Start collecting the undervalued shares, once the fund managers are done gorenging gloves. They will rotate to goreng other. Just pray that your undervalued shares will get gorenged. If they dont get gorenged, as least you still have a decent dividends better than the FDs.

Also, if they drop, you will never panic sell because you truly know the underlying value of your shares. Try getting some good dividends stock with good dividends growths in the long run.

https://mplusonline.com/help/i-already-have...cca-securities/