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Good time to accumulate stocks, says analyst

savemalaysia
Publish date: Thu, 23 Jun 2022, 10:36 AM

PETALING JAYA: Investors should accumulate stocks, despite the plunge in the market.

“Whenever the sentiment is all doom and gloom, it usually signifies the bottom of the market or close to the bottom,” Trident Analytics chief research officer Peter Lim Tze Cheng told StarBiz, adding that it was the best time to find stocks with good company fundamentals and collect them.

He said the strategy for investors should be to “collect” stocks.

Commenting on sectors to invest in, he believes such sectors include those which are in the recovery game, namely, financial, building materials, industrial products and consumer sectors.

Despite opening higher at the start of the opening bell, the FBM KLCI succumbed to profit-taking activities yesterday as the key index lingered mostly in negative territory.

At 5pm yesterday, the 30-stock index plunged 26.78 points, or 1.84% to 1,431.10.

The index opened 3.25 points higher at 1,461.13 yesterday.

Market breadth turned negative as losers overpowered the gainers on a ratio of 640-to-255 stocks.

Traded volumes rose to 2.72 billion shares, valued at RM1.9bil as profit-taking activities took control. Along with investors’ profit-taking, dealers said investors were also concerned about the the risk of recession arising from global inflation.

Mercury Securities expects global equities to remain volatile in the short term amid fears of persistently high inflation forcing central banks across the world to raise rates at a more rapid pace.

On Bursa Malaysia, Nestle tumbled RM2 to RM132.50, Malaysian Pacific Industries shed RM1.92 to RM26.86, Kuala Lumpur Kepong lost RM1.30 to RM22.14 and Petronas Dagangan fell 56 sen to RM20.50.

Consumer stocks dominated the gainers’ list on Bursa Malaysia. Dutch Lady rose 42 sen to RM33.10, Heineken Malaysia added 28 sen to RM23.70 and Carlsberg gained 22 sen to RM22.02.

Among the banks, Maybank lost five sen to RM8.60, Public Bank fell seven sen to RM4.40 and CIMB declined six sen to RM4.90.

 

https://www.thestar.com.my/business/business-news/2022/06/23/good-time-to-accumulate-stocks-says-analyst

Discussions
Be the first to like this. Showing 34 of 34 comments

gohkimhock

History tells us that only equities able to beat inflation in long term. I am talking about value investing and dividend investing. Not those pump and dump counters promoted by fake gurus here with all sorts of fairy tale projections and kindergarten calculations which could not be achieved in reality..

1 week ago

calvintaneng

Totally in agreement

One long term value investor is Robert Kuok who investing in real businesses at first and then listed his Companies

And palm oil investing is one good focus of success

1 week ago

klee

That teddy bear knows nuts about value investing.

1 week ago

ahbah

Always be gridi when others are fearful.

1 week ago

qqq3333

analysts always got stuffs to sell u

1 week ago

Tobby

Forget it! Markets unstable! Politics not stable! Nothing to look forward to! Better invest in Vietnam or Indonesia!

1 week ago

markgold

Agree with Tobby. Talk is easy, we invest with real money. The worst is yet to come for US. Wait and see first.

1 week ago

markgold

Analyst always say so during market drop, they buy stocks with their mouth.

1 week ago

treasurehunt

1. Glove - done!
2. Steel & mineral - done!
3. Smelter - done!
4. Logistic - done!
5. Semi-conductor - done!
6. Packaging - done!
7. Plantation - done!
8. O & G - done!
9. Properties - considered done!
10. Awaiting

1 week ago

calvintaneng

palm oil stocks not done yet due to these factors

Cpo spiked up to Rm9000 on overshoot on the upside due to Indon ban exporting palm oil

now Cpo overshoot on the downside to Rm4650 on the resumption of Indon palm oil export

But the surplus palm oil sudden release will be absorbed in next few weeks by world 8 billion people real daily demand for cooking oil and 50% of all supermarket items from bread to biscuit to toothpaste to soap

Also Brent oil still above Usd113 lots of palm oil and soyoil will go into biofuel at sky high prices

Even at Rm3000 km Loong people Said they can make money as cost of cpo production only Rm2000 so at Rm4600 there is still very high real profits

So we will stay invested in palm oil as a class of high food prices now plus people like Robert Kuok invest in palm oil for decades with great success

1 week ago

treasurehunt

Banking sector is trending downward also - half done already! Sad to say plantation companies share prices is already done!

1 week ago

treasurehunt

Recession is knocking the door. Need to figure out the next sector going to be the star performer in coming months.

1 week ago

gohkimhock

Construction sector is always the first one to move if there is a genuine recovery in the macro economy. It will then be followed by banking sector. After that, the whole market will start to move in tandem. Based on my experiences. Keyword here is genuine.

1 week ago

treasurehunt

gohkimhock. Construction is already half dead after suffering high construction material price for the last 2 years. It's a potential recovery sector while materials prices crashing. Can construction sector perform well during recession period?

1 week ago

calvintaneng

plantation share prices down short term do not mean they are down permanently

Palm oil companies will be reporting good decent profits as long as Cpo prices holding above Rm4000 as cost is only Rm2000 and real profit is 100% for efficient players

so just watch Aug, Nov 2022 results

1 week ago

ahbah

To treasurehunt : What is your no. 10, please ? I am waiting for your answer.

1 week ago

calvintaneng

real inflation is coming

very high feed cost of maize for chicken so expect higher prices for chicken and eggs soon and if price still under control then prepare to see chicken farmers close shop with no chicken available like in Spore

also prepare to pay higher prices for cooking oil soon and by proxy very high inflation for all products using palm oil

1 week ago

ahbah

How to use our moni to fight high inflation ?

Buy plantation stocks ?

1 week ago

PureBULL ...

EV n ES being the BEST r GG too by world # 1 enemy i.e. SHE n then her no limit fren taruk.dalam.,. for yrs to come.,.

1 week ago

treasurehunt

ahbah. Any crash of commodity prices would be directly benefited to the companies with the strong bargaining power in lagging passing the costs benefits to their customers.

1 week ago

calvintaneng

in Indonesia Tsh got 4 palm oil mills and during the export ban small time plantation owners with no mill have to sell their fresh fruit bunches at up to 70% discount to mills with 4 palm oil mills in Indonesia will benefit

So Tsh

1 week ago

calvintaneng

Fed fight inflation will kill off all consider discretionary but cannot kill consumer stables

Consumer discretionaries are wants of life like Cars, computers, handphones and a million other things of life that people want to have but not need to have

all these will collapse by high interest rates

But consumer stables are NECESSITIES OF LIFE THAT WE MUST HAVE

WE MUST HAVE FOOD AND DRINK - NON NEGOTIABLE OR STARVE TO DEATH

COOKING OIL

MAGGIE MEE AND INSTANT NOODLE GOT 20% PALM OIL

TOOTHPASTE FROM PALM
HEARD OF COLGATE PALMOLIVE?

ALL BREAD AND BISCUIT. SEE ALL GOT PALM OIL

CAKES AND ICE CREAM

ALL TEH TARIK..EVERY CUP GOT PALM OIL

MILO, KIT KAT CHOCOLATE

NESTLE BREAKFAST CEREAL

SEE NESTLE ANNUAL REPORT

WORLD BIGGEST USER OF PALM OIL FOR FOOD

INFANT MILK FORMULA

PET FOOD

WASHING DETERGENT

HAIR CREAM AND LIPSTICK

SHAMPOO AND SUN BLOCK

FACE COLOR CREAM
NAIL POLISH
ALL CANNED FOOD MADE IN MALAYSIA

ALL THE KFC, MCDONALD, DOMINO PIZZA, PIZZA HUT, ALL FAST FOOD

SATAY
ALL FRIED FOOD

ALL CHOCOLATES MADE IN MALAYSIA

HERSHEY HAS 400 EMPLOYEES IN SENAI

50% OF ALL YOU SEE IN SUPERMARKETS

PALM OIL!!!

1 week ago

OnTime

park ur money in utilities companies during recession

1 week ago

calvintaneng

no

in 1997/8 Tenaga crashed to Rm2.80 only

1 week ago

treasurehunt

Calvin. 1997/98 was a financial crisis unless it would happen again. KLSE slumped to below 300 points at that time.

1 week ago

treasurehunt

Utilities, Hospital, 5 star REIT and consumer staples are the common sectors to counter recession. Hope the hot money won't skip it. Haha

1 week ago

calvintaneng

Consumer Staples are basically palm oil in daily food and drink and personal hygiene

1 week ago

treasurehunt

Many consumer goods are included palm oil as its ingredient. The demand of palm is supposed relatively stable over times by referring to the theory supply and demand. Take a few minutes and ponder when the prices of palm oil surging to the crazy level in a short period of time.

1 week ago

treasurehunt

Is it a really serious shortage of crude oil in the market whilst India and China are still imported from Russia? China lockdown doesn’t have impact to the crude oil usage? Or it is merely big oil companies, traders and speculators take advantage of the war situation stirring up the ‘shortage’?

1 week ago

Thorman

Post removed.Why?

1 week ago

treasurehunt

If China is unable to maintain the world manufacturers in the future, they would consider planting palm oil locally for domestic consumption.

https://chinadialogue.net/en/food/will-china-produce-its-own-palm-oil-...

1 week ago

ahbah

Thanks

1 week ago

qqq3333

analyst job is to sell shares.

1 week ago

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