Last two days Gloves Spiked Up while Palm Oil continues to be sold down due to IB Bank downgrade by ESG concern
Now Calvin takes the contrarian view?
Why is it so?
See the latest Figures from October Total Exports to "SEE" ahead February 2022 results
Malaysia's trade beat record highest 2018 in just 10 months of 2021
KUALA LUMPUR: Malaysia's trade expanded 26.5 per cent to RM202.61 billion last month compared to October 2020, breaching RM200 billion mark for the first time and was the ninth consecutive month of double-digit growth since February 2021.
Exports rose 25.5 per cent to RM114.43 billion, the 14th consecutive month of year-on-year (Y-o-Y) expansion since September 2020.
Imports was higher by 27.9 per cent to RM88.18 billion and trade surplus increased by 17.9 per cent to RM26.25 billion.
For the first 10 months of 2021, trade expanded 23.5 per cent to RM1.80 trillion from the same period last year, Senior Minister and Minister of International Trade and Industry Datuk Seri Mohamed Azmin Ali said.
Azmin said exports surpassed RM1 trillion in just 10 months, increasing by 25 per cent to RM1.004 trillion and exceeded overall exports in 2020.
Exports even surpassed the highest annual value ever recorded in 2018, he added.
Export growth was boosted mainly by higher shipments of petroleum products, manufactures of metal, electrical and electronic (E&E) products, chemicals and chemical products as well as palm oil and palm oil-based agriculture products.
"Exports of manufactures of metal and E&E products registered the highest monthly value thus far," Azmin said in a statement today.
He said exports to major markets notably Asean, China, the US, the European Union (EU) and Japan recorded double-digit growth with exports to Asean registering the highest monthly value.
On a month-on-month (M-o-M) basis, trade, exports, imports and trade surplus grew 3.6 per cent, 3.2 per cent, 4.1 per cent and 0.5 per cent respectively.
Imports rose 21.8 per cent to RM801.17 billion and trade surplus surged by 39.2 per cent to RM202.58 billion during the first 10 months.
"Trade, exports, imports and trade surplus registered the highest value for the period," he said.
Azmin said major exports in October 2021 were E&E products which were valued at RM42.01 billion, an increase of 8.8 per cent from October 2020, and accounted for 36.7 per cent of total exports.
This followed by petroleum products valued at RM9.88 billion, a surge of 126 per cent from October 2020, accounting for 8.6 per cent of total exports and manufactures of metal worth RM7.78 billion, a rise of 146.9 per cent Y-o-Y, and constituting 6.8 per cent of total exports.
Exports of palm oil and palm oil-based agriculture products grew 34.6 per cent to RM7.36 billion, making up 6.4 per cent of total export, while chemicals and chemical products exports jumped 58.9 per cent to RM6.61 billion, accounting for 5.8 per cent of total exports.
Read the statistics above very very very carefully
1) On a month-on-month (M-o-M) basis, trade, exports, imports and trade surplus grew 3.6 per cent, 3.2 per cent, 4.1 per cent and 0.5 per cent respectively.
On month to month basis export grew by 3.6%
2) major exports in October 2021 were E&E products which were valued at RM42.01 billion, an increase of 8.8 per cent from October 2020
E&E or Technology products saw an increase of 8.8%. This shows actual increase of revenue & profits only at 8% (but share prices of Tech stocks have been bidded up into BUBBLE TERRITORY. Going to BURST SOON
3) Exports of Palm oil products grew by 34.6% to Rm7.36 Billions
4) What about rubber gloves & rubber products? Dropped off the radar
Why? Because now both Thailand & China have STEPPED UP Glove Production and FLOODED WORLD MARKET IN VERY FIERCE COMPETITION
So this Glove uptick from Omicron hype is only temporary
See prices of Gloves today in Singapore still selling at Huge Disdiscount
WITH CHINA'S GLOVES' EXPANSION THE WORLD IS NOW FLOODED WITH JUST TOO MANY GLOVES LEADING TO FIERCE PRICE WAR AND UNDER CUTTING PRICES TO GET SALES
AS A RESULT BLUE SAIL CHINA GLOVE EVEN REPORTED A LOST MAKING QUARTER
USA NOW KNOWS THAT CHINA COULD REPLACE MALAYSIA AS A CHEAP SOURCE OF PPE & GLOVES AND HAS BANNED TOPGLOVE & SUPERMAX
SO ANY REBOUND FOR GLOVES IS ONLY TEMPORARY
GLOVE IS ENTERING ITS DOWNTREND & THE REBOUND IS A BULL TRAP
See
PALM OIL ON THE OTHER HAND WILL REPORT EVEN BETTER QUARTER BY FEBRUARY 2022 RESULTS AS THE INCREASE OF 34.6% EXPORT SALES WILL REFLECT THE PRICE RISE OF CPO FROM RM4,417 TO RM5,300 QUARTER TO QUARTER INCREASE
AS SUCH THE BEST IS TO SELL GLOVES INTO STRENGTH
AND PLOUGH MONEY INTO PALM OIL ON WEAKNESS LIKE NOW
ROTATE OUT OF A DOWNTRENDING BUSINESS TO AN UPTRENDING BUSINESS IS THE BEST OPTION
Warmest regards
Calvin Tan
Please buy or sell after doing your own due diligence or consult your remisier/Fund Manager
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
stevenckheng
which palm oil stocks are small enough no need to pay cukai makmur that you are recommending ?
what is your view on the global warmingeffect in malaysia on yield production ?
2021-11-30 09:02