Wind Rider - Gainvestor

Review of Bursa Index in 2019

Gainvestor
Publish date: Wed, 01 Jan 2020, 06:46 PM
A wind rider who utilizes fundamental and technical analysis

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2019 had been a tough year, especially for our FBMKLCI. Malaysia seems to drop non stop. With the Vision 2020 starting today, will we be seeing flying cars in our country? And our FBMKLCI will fly too? In this post, i am going to run through the Bursa indices and hopefully we can spot some good indices that will outperform our index, followed by the counters.

 

But before that, lets see how our FBMKLCI and other bursa indices perform. Energy performs the best with 51%, construction (34%) and Technology (29%). The worst performance goes to Financial Services (-11%), followed by Industrial Product & Services (-8%) and Property (-5%).

2019 Bursa Indices YTD Performance

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If you have started your 2019 investing portfolio with counters in Energy sector, Construction sector, Technology and Plantation sector, your portfolio will be green all the way~ Not to forget our Plantation sector, which had been suffering a lot especially on the boycott from the European countries and the India issues.

 

 
Lets start with our FBMKLCI weekly chart.

 

FBMKLCI monthly chart

FBMKLCI had been in downtrend since reaching the highest point on Q1 2018. SMA200 had been pressing the SMA50 for the past 2 years. Mostly is due to our financial services sectors which are not performing. The banking sectors consists most percentage of the FBMKLCI. Hence, when our financial services are not performing, same goes to our FBMKLCI.

 

 

Next, Energy Index,

Energy Index Weekly Chart

Energy index perform the best with increment of 51%. Mostly is due to the Brent Crude oil  hanging at around USD60 for 2019. Counters like KNM, CARIMIN, DIALOG, SERBADK all had been performing quite well, while SAPNRG still going sideways forming a base there.

 

 

Construction Index Weekly Chart

As for Construction Index, the best performing counter is GAMUDA. When Government cuts the budget for the MRT, GAMUDA had falled a lot and finally in 2019, they had been the best in the Construction sector. As well as the revival of the Bandar Malaysia also had some effect towards the whole construction sector.

 

 

Technology Index Weekly Chart

2019 had been a theme of 5G. And the whole world is venturing into 5G technology, and for Malaysia, MCMC expects commercial deployment of 5G in Malaysia to begin by Q3 of 2020. So in another 9 months to go, we can be using 5G in our daily life. If 5G takes place, a lot of upgrades and hardwares need to be in place for this wave. Same goes to the semiconductor industry in Malaysia. With the global demand for the semiconductor to be slower, this might also impact on the technology counters in Malaysia.

 

Lets talk about the top 3 first in this post. Definitely Plantation sector, Healthcare sector and Property sector can be monitored. And if we want our FBMKLCI to rise higher, Financial Services need to perform. In order for Financial Services to perform, we need some stimulation from the government to implement certain programs. Not to forget about the digital banks that will either affect or stimulate the current banks. It will be something to look forward to.

 

2020 will be an exciting year for all of us. Our FBMKLCI had been underperforming for the past 2 years, now i think the time for us to rise is coming soon, maybe this year or next year. But there are also rumours that 10 years financial crisis is also coming in 2020. However, there are still no symptoms spotted yet.

 

In this 2020, no matter you are a investor or a trader, i hope all of us can harvest a handsome profit from the stock market. Do not stop learning! Find the best tactic that suits your operational method. Hold on the principle of "The reason you buy is the reason you sell", by doing so, we will be encouraged to do more homeworks just to identify the reason why we invest in the certain stock. 

 

If you like my way of analysis and you haven't join me in my facebook, appreciate if you could like my FB page, https://www.facebook.com/gainvestor10sai/?fref=ts

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Let's Ride the Wind and Gainvest

 

Gainvestor 10sai

1 January 2020

6.45pm

 

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