DJ MARKET TALK: Malaysia Rates Could Be Cut By End-2Q: BarCap - 2008-03-11 01:48:00.0



0148 GMT [Dow Jones] Barclays Capital notes Malaysia election results a blow to PM Badawi's standing, says stock market sentiment likely hurt ahead of pending leadership challenge at UMNO party elections, which could happen as early as June. "With the PM battling for political survival, the planned June 2008 cut in fuel subsidies - intended to unlock MYR30 billion to jumpstart 9th Malaysia Plan projects - will be shelved." Given inflationary pressures likely stay subdued as a result, "our view is that policy rates could be reduced as early as end-2Q in support of economic growth." Adds, "Most importantly, the massive turn in electoral sentiment reflects a national call for change and not a leaning towards a particular racial or religious bias. To us, this indicates that the political transition is likely to be peaceful." (CNG)


Just for sharing purposes.

HI Fellow members,

I am new and have some question regard PM fund:

1) I heard ppl say that dun buy a fund that don't finished selling after lauched certain period of time. Example: Fund size is 1.5 billion, after 1 yr of lauching only managed to sell 0.5 billion. They believe the fund may not be as good/attractive as other fast selling funds. So not encourage to buy. Is this true?

2) If I issue a cheque to buy the fund, will I get my fund purchased immediately on the day when I submitted my purchase (with related that day's price) OR they only buy for me when my cheque is cleared after 3 days (with after 3 days' price)?

Thanks!

1) Funds that are attractive will be completely sold in just few weeks ( eg3 weeks. Most likely to happen for Public Mutual fund.). However, it is not guaranteed that this fund will give better returns than the other funds, as the returns on the pools of funds depends on the performance of Net Asset Value of the fund to which it has been channelled. Note also that each funds performance will depends on types of the funds (stocks,index,balance,money market,bonds,etc) and has different exposure to the risk and hence the return. Therefore,selecting funds to invest based on this idea is totally wrong.

2) The price of the funds that you buy would depend on the day the money cleared to buy the fund. IF let say you pay today by cheque and cleared in 3 days, you will buy the fund at the price on the 3rd day.

False.
Some people must have misleading you already. The popularity of the fund has nothing to do with its performance or future performance.

The China fund is the best example, previously people look at the bullishness of China stock market, then all people rush to buy China related fund, but at that time China market was already too high to sustain, look at how those China funds, mostly drop more than 20-30% since last year.

This post has been edited by cherroy: Mar 11 2008, 02:22 PM

BOOMMBBBBBB!!!

First time I see so red for UT

For Public Mutual, you buy at the price of the day you submit, but not the day the cheque is cleared.

wow man... good initiatives... but i am kinda disappointed with the market recently...

Non - Business Days for China Funds

The Non - Business Days for our China funds include days when the Hong Kong Stock Exchange is closed for business. This is to ensure that investors will be given a fair valuation of the funds at all times, be it when buying or redeeming units of the funds.

List of China Funds

Public China Select Fund (PCSF)
Public China Ittikal Fund (PCIF)
PB China Pacific Equity Fund (PBCPEF)
PB China ASEAN Equity Fund (PBCAEF)

List of Non - Trading Days for Hong Kong Stock Exchange but Normal Business Days for Bursa Securities

The following days are declared as Non - Business Days for our China Funds:

Refer to: http://www.publicmutual.com.my/page.aspx?n...afunds_holidays

Dear Unitholder,

We are pleased to attach the market wrap for the week ended 7 March 2008 for your information.

Regards

Customer Service

I am thinking to switch in PCSF, any comments?

hi guys, i'm new here

i just went to PM website and they are promoting PB China ASEAN Equity Fund...any comment on this fund?

China markets have already grown quite high the last 2 years, so with the record high inflation the government is cooling the market bit by bit, carefully not to burst the bubble.
So, we expect to see China markets not performing too well the coming years.
I'm more upbeat on ASEAN markets where the developments are, as most ASEAN countries are developing countries.
So, the inflow of foreign investments would help these markets a lot.
If the fund invests mostly in ASEAN markets, then it would be a sound investment.
You should read the prospectus and make your decision

2nd thought of Asean related Funds :-

I used to think the Asean could be the best among all the funds, but recent events made me think otherwise :-

High inflation would affect every country no doubt, but will affect Asean more because of political instability :-

1) Thailand, former PM is back in town, could be more political storms on the way. People in the countryside like him, those in the urban areas hate him. Stock market could not boom with political instability.


2) Indonesia - high inflation if any could overturn the government as in the past. Chinese again could be blamed for the bad economy if any. Stock market could not boom with political instability.

3) Vietnam- Stock market oledi up 400% in the last 3 years. What goes up might come down one day.

4) Malaysia - not pro business at all. Local political issues are getting worse than better. People suffered high inflation before GE. Now, worse bcos they are going to be penalised. Street demo are now "allowed" for certain political mileage. And If Foreign Direct Investments pull out, many people in the street would lose their jobs. Although there is no sub prime issue in Malaysia , our governments whether BN or BA/BR do not take advantage of. There could be a reason why FF want to invest in our country ( Safe haven ) .

Leaders urged to resolve uncertainty

http://biz.thestar.com.my/news/story.asp?f...02&sec=business

5) Burma - still living in dark age.

6) Singapore - oledi a matured economy. Got involvements in sub prime issue.

7) Cambodia - still got many problems with FDI.

Where else of Asean is good then ? Stock markets could not boom with political instability.


China if able to overcome inflation is still a good place to invest in the long run. Investors always view political issue seriously.

Just my 2sen opinion.

Just for discussion purpose. No intention to flame anyone.

This post has been edited by SKY 1809: Mar 15 2008, 05:44 PM

I would tend to agree. The China market is no good right now, but it has great potential if they can get their current problems under control, and they seem to be committed in achieving this.

Their political situation is very stable compared to the past where there were "power struggles" each time there is a change of leadership.