The review of monetary policies by the various major central banks has led the global equity markets' volatility to spike in June. Similarly, the FBMKLCI also experienced a volatile month, where the benchmark index traded in a range of 69 points from a low of 1,723.74 to a high of 1,792.67 points. During the month under review, we have recommended five new trading buy ideas as well as a take profit call on TAMBUN INDAH, which the stock had provided a handsome 35% total return within the 2-month investment horizon.  Despite a volatile trading sentiment for the overall market, our On Our Radar (OR) tracker total return continues to outperform the benchmark index by 40 bps on a MoM basis and 700 bps on a YTD basis.  Meanwhile, the average total return of both the realised and unrealised portfolios since inception stood at 17.0%, beating the 11.5% gain in the FBMKLCI. Moving forward, we expect the market to trade sideways with a consolidation mode in the next few weeks. Upside is likely capped at 1,763-1,784 range, in our view. 

Added five new Trading Buys in June. The local market had experienced a higher volatility last month after the various major central banks started to review its respective monetary policies and leading the global equity markets' volatility to spike. Similarly, we also saw the FMBKLCI to trade between 1,723.74 to 1,792.67 points range (or a 68.9 points range) and closed at 1769.22 points (or +0.24% MoM) in June. In tandem with the higher volatility in the market, the five new stocks (out of the seven On Our Radar (“OR”) reports) that we recommended in June had experienced an average +0.5% return since introduced, of which GLOBAL ORIENTAL (“GLOBAL”) and GHL SYSTEM share prices had advanced by 8.8% and 5.8% respectively. The remaining three new trading buys  counters were namely, GLOMAC; SBC CORPORATION; and KELINGTON, which share prices have retreated by -6.2%; -5.9% and 0% respectively since introduced.  

Average total return of 1.3% in June vs 0.9% in FBMKLCI.  Thus far, there are still twenty stocks in our OR portfolio tracker list with Trading Buy recommendations (from 17 companies as at end-May 2013). The overall portfolio recorded a total return of 1.3% MoM in June, outperforming the FBMKLCI by 87 bps in the same period. The star performers for the month were SPRITZER (+18.3%), MY EG (+14.8%) and PWROOT (+12.0%). GADANG was the only stock recording a double-digit negative return of -12.6% in the month. On a YTD basis (as on 30th of June 2013), our OR tracker portfolio, which comprised of stocks that we still have Trading Buy ratings on, recorded a total return of 15.4% in contrast to the +8.4% return of the FBMKLCI. 

Continues to beat the benchmark index since inception.  Our OR tracker portfolio has recorded an average total return of +16.5% since its inception on 13th of August 2012, beating the +11.5% return in the FBMKLCI in the same period. The top three best performers (in terms of total return) in our OR tracker portfolio up to June 2013 for which we still have Trading Buy ratings on was PESTECH (+108%), FABER (+54%) and SPRITZER (+45%). Meanwhile, COCOALAND (-9%), SBC CORP (-6%) and GLOMAC (-6%) were the top three worst performers in our OR tracker.

Best and worst of stocks sold.  PWROOT (+68%) and TWSCORP (+37%) were the top performers in our realised OR portfolio tracker list, where we closed our open positions in March 2013 and Sept 2012 respectively. On the flip side, BONIA topped the worst performer list after we sold it on 19 March 2013 with a total realised loss of 17.1%. 

Source: Kenanga