On the first day after the Budget 2022 announcement, Bursa Malaysia took a beating. The FBM KLCI, which is a gauge of the 30 biggest companies on Bursa Malaysia, dipped by 2.2%. RM34bil of market capitalisation was wiped off from the stock market, 178 stocks went up, 996 stocks dropped with 327 unchanged.
The biggest culprit is the additional windfall tax.
The government also proposed a one-off windfall tax called Cukai Makmur, and higher stamp duty for stock trading on Bursa Malaysia, to raise its revenue.
Under the Cukai Makmur, companies that churn more than RM100mil in annual income will be taxed 33% in 2022, from the current 24% tax rate.
In addition, the government will remove the RM200 stamp duty cap and increase the stamp duty rate to 0.15% from 0.1% for stock trading.
This Cukai Makmur is definitely not good for all investors including day traders, long term ordinary investors, institutional and foreign investors.
The proposed windfall tax increased from 24% to 33% is depressing all the stock prices. As a result, practically all the listed stocks have been dropping since the announcement.
As I said before, no stock can continue to drop for whatever reason. After some time, it will rebound upwards. Yesterday AYS shot up 6 sen per share. AYS is still the cheapest among all the steel stocks as you can see the comparison below.
Name |
price |
Latest EPS |
EPS divided by price |
1 AYS |
68 sen |
8.5 sen |
12.5 |
2 Leon Fuat |
85.5 sen |
9.76 sen |
11.4 |
3 Tashin |
6 sen |
5.97 sen |
9.8 |
4 Mycron |
45 sen |
4.13 sen |
9.2 |
5 Choo Bee |
Rm 1.98 |
17.15 sen |
9.0 |
6 Hiap Teck |
52.5 sen |
4.26 sen |
8.1 |
7 L Steel |
62.5 sen |
5.01 sen |
8.1 |
8 Melewar |
38.5 sen |
2.64 sen |
6.9 |
9 Astino |
68.5 sen |
2.5 sen |
3.7 |
10 CSC Steel |
Rm 1.27 |
2.7 sen |
2.1 |
Chart | Stock Name | Last | Change | Volume |
---|
Created by Koon Yew Yin | Aug 19, 2024
On 14th Aug 2024, I posted my article “Why people are rioting across UK”. Now I want to tell you why do people riot?
Created by Koon Yew Yin | Aug 19, 2024
If I knew politicians are so well paid, I should have been a politician. A few days ago, one old friend who migrated to Australia about 40 years ago, visited me. He told me that he was a Member of P..
Created by Koon Yew Yin | Aug 14, 2024
Riots have spread across numerous cities and towns in England, and in Belfast in Northern Ireland, over the last week in the worst outbreak of civil disorder in Britain for 13 years. Police have ma...
Created by Koon Yew Yin | Jul 30, 2024
The new poll, conducted between July 22-24 and released Sunday, found that Harris’s approval rating had surpassed Trump’s in Wisconsin, Pennsylvania, Minnesota, and Michigan. In Michigan, Harris was..
Created by Koon Yew Yin | Jul 30, 2024
As you can see below, a few people are using my name to promote sale of Initial Public Offer (IPO) shares before and after listing on Bursa Malaysia. You should not buy IPO shares because statistics..
Created by Koon Yew Yin | Jul 23, 2024
The most important criteria for share selection are technical analysis and financial analysis. The price chart below shows that KSL's share price has been going up from 88 sen to above RM 2.13...
Created by Koon Yew Yin | Jul 22, 2024
Recently one smart accountant pointed out to me that KP Property has millions of Redeemable Convertible Preference Shares (RCPS). This will affect its share price. I sold all my KPP shares to buy KSL.
Created by Koon Yew Yin | Jul 15, 2024
Currently Bahasa Melayu is taught in all Government sponsored schools. Bahasa Melayu is only good within Malaysia. All our overseas customers do not know Bahasa Melayu. I hope all our politicians...
Created by Koon Yew Yin | Jul 09, 2024
1 minggu repost 3 kali. Ini macam ada udang disebalik batu wor....
beware beware......
2021-11-23 16:11
Prestar EPS 7.21 ssen overtake AYS EPS 6.51 sen for this quarter, Dividend higher at 2 sen vs AYS 1.5 sen, Share price also cheaper at 61.5 sen compare to AYS 68.5 sen, Director keep buying prestar at 60 sens.
2021-11-23 18:27
Ays latest results fail KYY golden rule of 2 consecutive earnings growth. Will he sell after the weaker results?
2021-11-23 18:33
No stocks can continue to drop for whatever reason? Uncle KYY said the same about Supermax when it was RM6
2021-11-24 09:36
No eyes see this old fox, typically old man mumbling every day
huat ah, ong ha, buy ah, cheapest ah…..
2021-11-24 11:00
All steel prices are in downtrend mode, when down trend, materials which bought at higher price is now selling at the lower end product price, making profit margin squeezed.
When price up, material bought cheap can sell higher, it is common to see all steel companies did well when price up, did terribly bad when steel price down
2021-11-24 11:02
up to no this old age still do not know some stocks are trading at so call cheapest for very good reason behind, what to do? either you are s..... or s....... lol
2021-11-24 14:03
now con ppl to buy AYS so he can take profit. same modus operandi over the years but comforting to see in the comment thread that many has already seen thru his tricks
2021-11-25 08:41
hpcp
If making money in the stock market is as simple as tabulating historical eps divided by share price and conclude the one with the highest ratio is "cheapest", then everyone can become rich without working hard. Do we still need fund managers and analyst are redundant?
2021-11-23 14:31