FOR the past few days, I have shared the reasons on why the momentum portfolio has been so quiet. This may persist in view of prevailing sentiment. 

The local stock market closed in the red on Monday, failing to extend the slight gain made last Friday. Investors stayed cautious.

Outlook for crude oil prices remain uncertain after OPEC decided not to cut its production quotas despite a supply glut. This, in turn, cast a cloud over the ringgit as Malaysia is a net oil and gas exporter. Our currency has fallen to 3.504 to the greenback, the lowest level since September 2009.

Regionally, sentiment in the US was lifted on positive employment numbers, although European equities declined in early trading hours following the fall in construction stocks. China stocks meanwhile, rallied on expectations of more stimulus and relatively cheaper valuations.

The FBM KLCI fell by 0.49% to close at 1,740.80. More than 2 stocks fell for every one that rose on Monday.

My portfolio returns declined slightly by 0.08% to RM 101,739.40.

The portfolio started on 8 July 2014 with a capital of RM100,000. Since then, it has outperformed the FBM KLCI by 9.8%, and has registered an annualised return of 4.1%.

Total profits currently stand at RM 1,739.40

I am currently only 34% invested and hold two stocks, namely Willowglen and Crescendo. Yesterday, Willow was down by 0.6% while Crescendo remains unchanged.

This article first appeared in The Edge Financial Daily, on December 9, 2014