ON Tuesday, the portfolio continued its downward trend, caused by the relentless falls on Wall Street and in regional markets.

Investors are evidently unnerved by Wall Street’s continuing triple digit losses and its inability to stage a convincing rebound. Worries over the health of the global economy, especially in Europe and Japan, are clearly roiling financial markets. However, investors should also note that the US economy is recovering well and should help to buffer economic weakness elsewhere.

The portfolio value went down by 0.74% to RM 102,049 while the FBM KLCI decreased by 0.05%. However, the FBM KLCI’s flat performance was not reflective of the broader market, where losers outweighed gainers by a 3-to-1 ratio.  

Total returns for the portfolio decreased from 2.8% to 2%.

The portfolio started on 8 July 2014 with a capital of RM100,000. Since then, it has outperformed the FBM KLCI by 7.1%, and has registered an annualised return of 7.6%.

Total profits currently stand at RM 2,049.

Among my stocks, only Success Transformers Corporation Bhd (+3.9%) and SMPC Corporation Bhd (+1.5%) rose yesterday. The top losers were ES Ceramics Technology Bhd (-5.6%) and Apex Equity Holdings Bhd (-3.2%).

This article first appeared in The Edge Financial Daily, on October 15, 2014.