I will prefer to stay sidelines, while holding what I have currently. The interest rate hike in the USA does not seem to have stopped. Tech stocks have been given a breather.
1. Bank stocks.
Bank Negara hiked OPR 3 times in 2022. The recentmost 3 time hike in a year was 2010, where OPR stayed the same for quite some time. Bank stocks share prices (mostly) went up since 8 July 2010 and seldom fell below that, e.g. PBBANK, MAYBANK, RHBBANK, BIMB. I remain optimistic on bank stocks, but I like PBBANK & MAYBANK. PBBANK for defensive qualities, MAYBANK for dividends.
2. Plantation stocks.
Plantation stocks' prices have retreated since the hype in Mac-May 2022. With most analysts expecting CPO prices to have peaked, it's unlikely plantation stocks will return to their respective highs in foreseeable future. The demand for commodities also has been hampered by recession fears. Plantation stocks is a good dividend option. Malaysia being the world No. 2 producer of oil palm means there's some barrier to entry.
3. Consumer stocks.
Reiterating my view in my previous posts that economic reopening will benefit this sector.
4. Some miscellaneous stocks that plunged a lot.
PESTECH's recent headwinds seem to be priced in at RM0.29. 65% down YTD.
HIAPTEK was promoted in the beginning of 2022 but is now RM0.29. 43% down YTD.
HARTA can't seem to find a bottom, now RM1.62. 71% down YTD. Probably the worst fall suffered by a glove stock.
ATAIMS lost its major contract last year & share price lost control until RM0.29 now. 52% down YTD.
BIOHLDG's suffered back to back quarter losses, now RM0.10. 47% down YTD.
A falling knife is difficult to catch, unless you are highly skilled. Most of us don't make the cut.
Actually nothing much has changed the past week. Mr. Market is still in the same emo state with wide mood swings. Sideways movement would continue.
Disclaimer: This article is not tailored financial advice, but mere general stock sharing / observations. Please do further due diligence. The author disclaims all liabilities from readers. The author may own some abovementioned stocks.
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