Contrary to earlier GE13 fears, the local market has continued with its upward trend as the FBMKLCI closed the month of April at a fresh all-time-high of 1,717.65. The performance of our On Our Radar (OR) tracker also tracked the benchmark index with a total return of 3.1% vs. the 3.3% in the FBMKLCI. During the month of April, we introduced six new stocks in the eight ORs that we released. For these new stocks, we currently have Trading Buys on ZHULIAN, TAMBUN, PIE and SPRITZER while two other stocks namely VITROX and UNIMECH were not rated. On the overall, our OR tracker has a 4.8% total YTD return as compared to the 2.8% in the key index. Looking forward, given that the coming Sunday is the GE13 polling day, the volatility of the local market is expected to increase in the next two remaining trading days before the D-day. The outcome of GE13 should give us a better sense of the market direction thereafter. At the same time, with the oncoming earnings reporting season in May, we may take the opportunity to re-assess all our OR stocks in terms of their earnings prospects.

Added four new Trading Buys in the month. In April, we were more aggressive in that we introduced six new stocks in the eight ORs that we released during the month. Of this, four stocks are rated as Trading Buy calls with the other two being “Not Rated” stocks namely VITROX and UNIMECH. The Trading Buy stocks are ZHULIAN, TAMBUN, PIE and SPRITZER. During the month, we have also upgraded our fair value for PESTECH to RM1.96 from RM1.46 after we went on a site visit to its two projects in Cambodia early in the month. We also had a Not Rated update on TOMEI, which has been on a Trading Sell call since Dec-12, three months after our first Trading Buy call on the stock.

There are now 12 Trading Buys. After adding four new Trading Buys, there is now a total of 12 Trading Buys in our OR tracker portfolio list with a total return of 3.1% MoM in April, which has slightly underperformed the FBMKLCI, which reported a total return of 3.3% over the same period. During the month, PESTECH was the star performer with an impressive 32.4% MoM appreciation in its share price followed by COCOLND (+15.2%) and TASCO (+5.4%). ZHULIAN was the worst performer as its share price had fallen by 7.2% since we released our first report on the company on 11 Apr-13 while TAMBUN had dropped 4.1% since our first report on it on 16 Apr-13. On a YTD basis (as at 30 Apr-13), our OR tracker portfolio, which comprises of stocks that we still have Trading Buy ratings on, has recorded a total return of 4.8% compared to the 2.8% of the FBMKLCI.

PESTECH is the best performer. Our OR tracker portfolio has recorded an average total return of 7.9% since its inception, which is higher than that of the 7.1% total return of the FBMKLCI in the same period. PESTECH has overtaken FABER as the top best performer (in terms of total return) in our OR tracker portfolio for stocks that we still have Trading Buy ratings on. The total return for PESTECH since inception stood at 65.5% compared to 32.6% for FABER.

OCK came third with a total return of 11.1%. Meanwhile, COCOLND (-7.8%), ZHULIAN (-7.2%) and GBGAQRS (-4.2%) were the top three worst performers in our OR tracker.

PWROOT remains the best stock sold. PWROOT (+67.8%) and TWSCORP (+36.5%) were the top performers in our realised OR portfolio tracker list, where we closed our open positions on them in Mar-13 and Sep-12 respectively. On the other hand, BONIA topped the worst performer list after we sold it on 19 Mar-13 with a total realised loss of 17.1%.

Source: Kenanga