Tong’s Momentum Portfolio - Dec 12, 2014

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tong_masthead_theedgemarketsREGIONAL bourses closed mostly in the red pressured by global growth concerns and another drop in oil prices. Overnight leads from the US were negative. Wall Street fell sharply dragged down by energy stocks after OPEC lowered projection for oil demand in 2015. The S&P 500 fell 1.6% while the Dow Jones Industrial Average dropped 1.5%.

On the home front, the FBM KLCI index dropped 1.2% to close at 1,744.6.

With oil prices yet to find a bottom, the ringgit remains vulnerable to more selling pressure. The local bourse has already seen net foreign outflows totalling RM5.3 billion in the year-to-date.

Given prevailing bearish outlook, I decided to dispose of most of my remaining stock holdings:

Crescendo Corporation Bhd: 8,100 shares at RM2.62 per share

Willowglen MSC Bhd: 7,700 shares at RM0.755 per share

The disposals do not reflect a change in my assessment of the companies’ underlying businesses. Rather it is due to my belief that market momentum will stay negative with further downside risks. I continue to hold these stocks in my Value Investing Portfolio.

My portfolio value declined a further 0.4% to RM101,209.90. I am now only 6.8% invested.

The portfolio started on 8 July 2014 with a capital of RM100,000. Since then, it has outperformed the

FBM KLCI by 9.0%, registering an annualised return of 2.8%.

Total profits currently stand at RM 1,209.90.


This article first appeared in The Edge Financial Daily, on December 12, 2014.