Tong’s Momentum Portfolio - Feb 26, 2015

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STOCKS in the US market traded higher yesterday as the Dow Jones Industrial Average surged 0.51% to close at 18,209.19 while the S&P 500 ended 0.28% higher.

Despite overnight gains in the US, regional markets traded mixed. Bellwether indices in Taiwan, New Zealand and Australia closed in positive territory, while Japan’s Nikkei 225 broke its rising streak with a slight 0.1% decline to 18,585.20 points.

Closer to home, the benchmark FBM KLCI lost 0.16% to close at 1,815.86. Market breadth was slightly negative with decliners outpacing gainers by a marginal 1.1 to 1 ratio. Currency wise, the ringgit strengthened slightly against the greenback to RM3.61.

Oil prices remained flattish yesterday, with Brent crude and WTI crude hovering around $59 and $49 per barrel respectively at the time of writing.

Based on our proprietary momentum algorithm, I bought shares in the following companies yesterday after they exhibited positive momentum.

• Top Glove: 1,800 shares at RM5.02

• Mieco: 14,800 shares at 60.5 sen

• MClean: 41,800 shares at 21.5 sen

• Ingenuity: 120,000 shares at 7.5 sen

I continue to hold on to Hovid (-1.1%), Ecofirst (-1.5%), Elsoft (-1.1%), Homeritz (-2.6%), London Biscuits (-1.3%), and Supercomet (unchanged).

My portfolio has gained 0.9% since inception, and has outperformed the benchmark FBM KLCI by 5%.

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This article first appeared in The Edge Financial Daily, on February 26, 2015.