Tong’s momentum portfolio - 23 Oct 2014

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REGIONAL markets traded mixed on Tuesday despite overnight gains on Wall Street. Clearly, investors are treading more cautiously following the recent spate of volatility in stock prices.

China’s latest 3Q14 GDP numbers underlined concerns over slowing global economic growth. Growth in the world’s second largest economy came in at 7.3% for the July-September period from a year earlier.

Whilst this was slightly ahead of market expectations, of 7.2%, it was the slowest pace since first quarter of 2009.

Sentiment is expected to remain cautious ahead of the upcoming US Federal Reserve’s Federal Open Market Committee meeting at the end of this month.

The FBM KLCI fell 6.92 points ahead of a public holiday to close at 1796.22, giving back some of yesterday’s 15-point gain.

 My portfolio value inched down by 0.81% to RM102,938 , slightly worse than the benchmark index’s 0.38% decline. Nevertheless, it is still out-performing the FBM KLCI, by 8.0%, since inception, on 8 July 2014. Total returns for the portfolio currently stand at RM2,938.

Notable losers yesterday include Apex (-3.3%) and Willowglen (-1.2%).

As I believe there would soon be another round of price correction, I have decided raise my cash holdings by selling some stocks:

Success Transformer Corporation Bhd: 2,600 shares at average price RM1.78 per share.

ES Ceramics Technology Bhd: 67,000 shares at RM0.17 per share.

Malton Bhd: 4,500 shares at RM0.99 per share.

SMPC Corporation Bhd: 4,800 shares at RM0.815 per share.

tong_23oct2014_theedgemarkets

This article first appeared in The Edge Financial Daily, on October 23, 2014.