Tong’s Momentum Portfolio - Oct 31, 2014

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KEY regional markets fell in tandem with modest overnight losses on Wall Street after the US Federal Reserve made a widely expected decision to end its accommodative monetary policy and cease quantitative easing.

At its peak, the programme had injected $85 billion a month into the financial system.

However, it also signalled that interest rate increases were not imminent yet, which limited the decline for stocks.

The FBM KLCI diverged from regional trends by adding 3.23 points or 0.18% to close at 1,842.78. Market breadth was positive with gaining stocks outpacing losing ones by a five-to-three ratio.

My portfolio value went up by 0.51% to RM 106,949, slightly better than the benchmark index’ gains.  

The portfolio started on 8 July 2014 with a capital of RM100,000. Since then, it has outperformed the FBM KLCI by 9.6%, and has registered an annualised return of 22.1%.

Most of the stocks in my portfolio gained momentum, with gainers led by Homeritz (+2.9%) and KSL (+1.9%).

The only stock that lost ground was SLP Resources (-1.4%).

I sold part of my stake in SLP Resources, with 1,100 shares disposed at RM 0.715 per share.

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This article first appeared in The Edge Financial Daily, on October 31, 2014.