Friday 29 Mar 2024
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MOST Asian stock markets rose yesterday, with China leading the packs as it rebounded from a 5.4% plunge on Tuesday. US stocks closed mixed, after an early sell-off.

The local bourse ended in positive territory since last Friday, posting its biggest gain in two weeks. However, this may be a temporary reprieve given that oil prices are still flirting near five-year lows.

Global oil prices resumed its downward trajectory yesterday. Brent crude dropped 1% to $66.84 per barrel. Already down 40% since June, volatility in oil prices is likely to persist amid oversupply concerns. Notably, the IEA estimates show that most US shale producers remain profitable at prices above $42 per barrel.

Falling oil prices and weaker ringgit will continue to weigh on the local bourse. Also, we are nearing the end of the year, which may see more window dressing activities.

The FBM KLCI index rose by 1.6% to close at 1,765.52. Market breadth was positive with gainers outweighing losers 1.8 to one.

The portfolio started on 8 July 2014 with a capital of RM100,000. Since then, it has outperformed the FBM KLCI by 8.3%, registering an annualised return of 3.7%.

Total profits currently stand at RM1,574.90.

I kept the portfolio unchanged.

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This article first appeared in The Edge Financial Daily, on December 11, 2014.

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