Immediately after the Budget 2022 announcement, the stock market has been plunging in the last 3 trading days. Practically all the listed shares have been dropping so rapidly. On 1^st November alone, Rm 33.8 billion was wiped off the market capitalisation of KLSE. This market crash can only mean that the Budget 2022 will not be good for our economy.  

There are 2 items in the Budget 2022 proposal that will affect listed shares, investors and day traders.

1.The removal of the Rm 200 stamp duty per contract to be replaced by increasing 10 bps to 15 bps. This will discourage small investors.   

2. The prosperity gain tax will be increased from 24% to 33%. All large cap companies whose annual profit exceeds Rm 100 million will have to pay more tax. This will discourage institutional and foreign investors. 

When is the best time to buy shares?

The best time to buy is when most investors are fearful and rushing to sell their holdings irrespective of the quality of the stocks. I have posted many buy recommendations for AYS and I have been buying AYS which is the cheapest steel stocks in terms of PE ratio. Unfortunately, my critics choose to believe that when KYY recommends buy they should sell.  

Yesterday RHB bought 1,251,500 AYS shares for me. You can confirm this if you ring Yee Ling RHB 05-2493279.

Unfortunately, in i3investors, there are a few critics hiding behind some fictitious names such as Squirtle, 007007, Zrenxy on AYS forum making senseless comments. They should check their track record to see why they are still so poor. If they keep saying that AYS is not a good stock to buy, can only mean that they do not even know how to select good growth stocks for investment.    

AYS latest quarter EPS was 8.5 sen and its previous quarter EPS was 4.45 sen, a jump of about 100%. Its next quarter ending September profit should be much better as there is no more MCO shutdown. Its next quarter result will be announced before the end of this month.

Its share price has been going up from 40 sen to a recent high of 87.5 sen on 29 Oct and closed at 70 sen yesterday as shown on the chart below.    

Hong Kong stock market crashed in 1983: In fact, this situation reminds me of my experience in the Hong Kong stock market. In 1983 the Hong Kong stock market crashed when China gave notice to the British government to recover the sovereignty of Hong Kong after the 100 years lease had expired. The Hang Seng index fell below 1,000 points.

There were so many undervalued stocks on basement cheap sale. The first stock I selected to buy was Hong Reality and Trust (HKRT). The controlling shareholder was a Jew called Willock Marden. Just before the stock market crash, HKRT sold Willock House, a multi storey office building in HK Central. Each HKRT share had a cash value of $ 10 and it was selling at $ 14 before the crash. But during the crash, it was selling below $4.

As soon as China gave another 50 years lease extension, the stock market rebounded sharply. HKRT shot up higher than its price before the crash. Investors were rushing to buy HKRT at $ 16. To cut the story short, within 3 years, I bought 46% of a stock broking company called Kaiser Stocks and Shares Co. Ltd. in Hong Kong. Now Hang Seng index is 25,100.