As I said in my previous post, data do not lie. When data is pointing upward, the results will eventually show. Before SHH released their 4th quarter 2015 results, I pointed out by showing several different data which indicated that the results will be positive and true enough, SHH posted its best ever quarterly results.

Taking a look at the latest released trade numbers, headline export numbers fell. However, if we look closely, a major bright spot in exports is timber and timber-based products (wood based furniture) which rose a whopping 12.2%y-o-y. Even more surprising is that in the month of January which is considered off-peak, exports rose 2.8%m-o-m compared to December which is considered the highest month for furniture sales in the US.

There seems to be an avoidance for export driven stocks, particularly within the furniture industry. This has created discrepencies between value and price of these securities. The most glaring in my opinion is SHH Resources for reason I have stated in my previous postings. In this risk on, risk off environment, the ones who are able to look beyond the smoke, act rationally based on facts and figures will eventually come out on top. US will be releasing its retail numbers soon and be sure to look out for furniture sales. Also, have a look at Home Depot and Lowe's share price performance recently. These point to sales being brisk, and SHH is a direct beneficiary as its main market is the US. Also, the soon to be concluded MIFF 2016 will be the biggest in terms of deals secured in its history.

A little observation, it looks like the biggest winners in the current market will be the foreigners who are buying our local equities in droves (bought RM300m yesterday) backed by solid research. Next will be the local funds who have many analysts at their disposal and companies ever ready to welcome them to their factories. The biggest losers, as always will be the retail players who only come in when the party is over. Will this trend repeat itself again?