Apa-apa pun, perlu lihat long term dahulu.
KLCI weekly chart sehingga 17 Oktober 2011.
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Commentary:
Malaysian palm oil futures declined to more than five-week lows on Thursday as traders cut back on worries that stocks could grow beyond 2 million tonnes this month. Although orders for palm oil have grown in response to higher output in Malaysia and a widening discount to competing soyoil, stocks are expected to rise above the 16-month high hit in May and prices could extend a loss of 14% so far this year.
(Reuters)
Overnight news:
US soybean futures slide to a four-week low as widespread jitters surrounding the global economy encouraged traders to reduce risk exposure in the market. Spillover weakness from a sharp sell-off in corn futures for the third consecutive day, lagging demand and favorable weather form crop development weighed on prices as well, analysts say. However, prices continued to hold within recent ranges, as concerns about potential acres losses in the face of tight supply outlooks, limited decline. Soy product futures tumbled in unison with soybeans, succumbing to widespread selling across commodity markets, analysts said. Debt issues in Europe raised enough concerns to entice traders to reduce risk exposure in riskier asset classes. (Dow Jones)
Source: CIMB
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17 June 2011
The FBM KLCI index gained 3.65 points or 0.23% on Friday. The Finance Index increased 1.22% to 14747.07 points, the Properties Index dropped 0.13% to 1086.21 points and the Plantation Index rose 0.26% to 7887.69 points.
The market traded within a range of 8.03 points between an intra-day high of 1564.07 and a low of 1556.04 during the session. Actively traded stocks include AXIATA, MUHIBAH, AMEDIA, DBE, INGENS, KBB, MAYBANK, CIMB, DIGISTA and PCHEM. Trading volume increased to 946.22 mil shares worth RM2219.66 mil as compared to Thursday’s 814.91 mil shares worth RM1645.16 mil.
Leading Movers were MAYBANK (+26 sen to RM9.00), AXIATA (+10 sen to RM5.05), PETGAS (+64 sen to RM12.94), CIMB (+8 sen to RM8.55) and HLBANK (+36 sen to RM13.36). Lagging Movers were PPB (-66 sen to RM16.82), GENTING (-10 sen to RM10.86), MISC (-9 sen to RM7.11), DIGI (-10 sen to RM28.58) and YTL (-1 sen to RM1.57). Market breadth was positive with 394 gainers as compared to 345 losers.
Source: JF Apex Securities Bhd
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Mr Buffett buys business that he could understand and he would hold it forever. His criteria are self explanatory as below.
We select our marketable equity securities in much the same way we would evaluate a business for acquisition in its entirety. We want the business to be :
(1) one that we can understand,
(2) with favorable long-term prospects,
(3) operated by honest and competent people, and
(4) available at a very attractive price.
We ordinarily make no attempt to buy equities for anticipated favorable stock price behavior in the short term. In fact, if their business experience continues to satisfy us, we welcome lower market prices of stocks we own as an opportunity to acquire even more of a good thing at a better price.
(Warren Buffet 1977 Letter to Shareholders)
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Mr Warren Buffett loves insurance business. Insurance is a business where customer pays the premium now but he will get the benefit later. This business model gives the owner a lot of insurance float. Insurance float is money that is held by an insurer, but they not own the money.
In his letter to shareholders in 1977, he stated this:
Insurance companies offer standardized policies which can be copied by anyone. Their only products are promises. It is not difficult to be licensed, and rates are an open book. There are no important advantages from trademarks, patents, location, corporate longevity, raw material sources, etc., and very little consumer differentiation to produce insulation from competition. It is commonplace, in corporate annual reports, to stress the difference that people make. Sometimes this is true and sometimes it isn’t. But there is no question that the nature of the insurance business magnifies the effect which individual managers have on company performance. We are very fortunate to have the group of managers that are associated with us.
He stated that insurance business could be copied easily by anybody. Thus, the insurance business itself have no “trade secret” unlike Coca Cola business. For that reason, he emphasized the importance of managers in insurance industry.
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