Tong’s Momentum Portfolio - March 26, 2015

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TOTAL value for my portfolio rose 0.22% on Wednesday to RM98,314.60, as shares for Comintel Corp increased 2.1% to 24 sen. By comparison, the FBM KLCI rose 0.28% to 1,819.10. Market breadth turned positive with gainers outpacing decliners by a ratio of 1.1 to 1.

Regional markets traded mixed yesterday, despite overnight losses on Wall Street. The Dow and the S&P 500 indices fell 0.58% and 0.61%, respectively. The Shanghai Composite Index declined 0.83% to 3,660.73. Elsewhere, Japan’s Nikkei 225 index rose 0.17% while the Hang Seng index inched up 0.53%. 

Crude oil prices remained range bound with WTI futures trading around US$47 per barrel, at the time of writing. Prices are likely to stay at such subdued levels in the near term due to rising production in the US as well as the decision by OPEC to maintain output.

Meanwhile, the ringgit depreciated against the greenback to RM3.67, following report of a 0.2% uptick in US inflation, the first gain in four months.

My portfolio is down 1.7% since inception. Despite the loss, I am still outperforming the FBM KLCI, which is down by 3.9% over the same period.

• Portfolio will buy stocks with positive momentum on the day

• Stocks in portfolio will be divested when they exhibit negative momentum

• Otherwise, stocks will be divested within a max 4-day holding period

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