KLCI Rebounded Strongly This Morning, Is the Bear Gone?

KLCI Rebounded Strongly This Morning, Is the Bear Gone?

17 Sept 2015 -KLCI shot up nearly 40 pts this morning, and managed to sustain at 1680 pts in the morning session. Traders shall hail as the index recovers.

However, long term investors shall remain cautious as global market fundamental remain lackluster. Commodity prices remain low. Companies started retrenchment. Seagate has earlier retrenched near 1000 staffs globally and now HP plans to reduce 33,000 jobs.

Earlier, several banks in Malaysia like CIMB, RHB and Hong Leong has also undergone restructuring and headcount reduction. It seems that businesses are trying to reduce their overhead under difficult market environment. This is definitely a sign to watch out. If the trend of retrenchment persist, it could be an early sign of possible economic recession.

The FOMC meeting outcome is coming out tomorrow. It seemed like today is a speculative recovery as most people are expecting favorable outcome from the meeting. Even if the rate hike is postponed it may not mean the economy is doing fine and market shall cheer. It is just a sign that the US economy is still too vulnerable for a rate hike. Trade cautiously.

Najib's RM20billion ValueCap Initiative Going to Save Malaysia Market?

Najib's RM20billion ValueCap Initiative Going to Save Malaysia Market?

14 September 2015 - The Prime Minister cum Finance Minister of Malaysia Dato Seri Najib Tun Razak has announced that the country is going to revive the ValueCap; a dormant equity investment firm set up in 2002 to invest in undervalued equities. RM20 billion will be parked under the firm as an initiative to support the recently battered KLSE market.

The news came out in early afternoon today. The Index was seen climbing with strong momentum in the afternoon session and closed up 36.03pts. Many people must be asking whether the fund is really going to save the Malaysia market. Lets not mention whether the RM20billion is going to save the market, but the confidence effect of the announcement is already been seen in the number of movement of the KLSE index itself. Therefore, no doubt the KLSE index will see an uptrend in near term.

- Until last week (11/9/15), the local capital market has experienced a net selling of RM17 billion; whereas the whole year figure in 2014 was net selling of RM7.8 billion. Technically, if combine both figures it worked out to be RM25billion roughly.

- The recovery uptrend can be sustainable, if the foreign selling pressure stops. The fundamental reason of the selling of the Malaysian stocks by the foreign funds is because of the deteriorating economic outlook at the emerging market, especially the Asia region where most raw materials and commodities are produced. The uncertainties in the US policy and also slowing down of 2 biggest economies in Asia (China and Japan) is worrying the oversea investor.

- The large scale selling was a systemic operation of the funds and institution oversea to cut down exposure in the emerging market. Other than concerning with the depreciating ringgit and dropping equity valuation, they are more worried whether the companies they invested in Malaysia is going to continue to deliver better result than many other investment options all around the world.

- We must remember that these are funds managing hundreds and thousands of millions worth of aset and they are responsible to ensure their asset value grow year by year, And when they invest in a stock, they do not invest just one or two hundred thousand ringgit. They must have done a very thorough studies and accumulated over a long periods to their holding positions today.

- These funds would not simply sell so massively just because the market is technically dropping and fundamental still intact. Because for a mammoth fund holding, for them to sell even a single digit percentage of their holding in a company is sufficient to cause the price to drop very significantly and therefore affect their overall asset valuation.

- But if they realized that the overall economy is not going to improve, and the businesses they invested here is not going to deliver better numbers in mid to long term, they may want to liquidate their funds and invest else where rather than losing the opportunity cost of holding on to a weakening business and run the risk of decreased earning multiply by decreased valuation.

- So, coming back to our main question today, is RM20billion going to solve the problem forever and save the market from dropping? No one has have a definite answer, but based on the current situation, it is unlikely to last long as the fundamental economic risks in the emerging markets has not been disarmed. China market is a good example. Even though the composition of the market participant is different with majority retail investor who are highly speculative, the several rounds of interest reduction and government and investment firms pledge to buy the stocks, the so called recovery was temporary. Once people start to cool down and realize the initiative just change the valuation but now the fundamental economy behind the businesses; even if the 20 Billion can support the selling of the foreign fund or even push up the index the foreigner will not stop selling; save and except they see a light that the economic in the emerging market is going to improve.

- This is because the ValueCap initiative is not going to improve the earning of the business they invested but rather artificially pushed up the valuation for the counters temporarily, giving the foreign funds to dispose at a better price.

- For market to recover and foreigners to feel confident towards the emerging economies again, first of all the commodities prices must be stabilized. Overall market sentiment in the commodity market has been deteriorating due to poor consumer indication in the few largest economies all over the world. Spending data and consumption has to improve to reverse the situation. Oil price will have to recover; someone will have to put an end to the crude oil war between the US and OPEC.

- Rather than spending RM 20 billion to prop up the share market, I think out government can do better in formulating new policies to further stimulate and promote local businesses. Spend to improve the infrastructure of the nation and prepare budget help to promote local goods and services overseas. Spend to retain the local talents. Spend to introduce latest techniques and technologies in the market into Malaysia. Spend to subsidize employment of oversea talents. These spending may not save Malaysia from foreign selling now, but will definitely help to transform Malaysia bit by bit from commodity based economy to knowledge and skill based economy, and so reduce the impact of commodity movement on the local economy. When the overall market recover, a better than average recovery in the economy nationwide can be observed, not only in the recovery of index but also fundamentally better corporate earnings and economic data can be expected.

The Health Benefits of Consuming Almonds

The Health Benefits of Consuming Almonds

Heart

Probably almonds’ best-known quality is that they are good for your heart. “Nearly two decades of research shows that almonds can help maintain a healthy heart and healthy cholesterol levels,” said Heap. A 2009 article in The American Journal of Clinical Nutrition (AJCN) looked at the evidence on nut consumption and a variety of health issues. It noted that in four large-scale studies considered major in the field — the Iowa Women's Health Study (1996), the Adventist Health Study (1992), the Nurses’ Health Study (1998) and the Physicians' Health Study(2002) — nut consumption was linked to a lower risk for heart disease. Together, the studies showed an average reduction in the risk of death from heart disease by 37 percent, or “8.3 percent … for each weekly serving of nuts.”

“A growing body of evidence suggests that regularly choosing almonds in place of snacks high in refined carbohydrates is a simple dietary strategy to help support heart health,” said Heap. In another evidence review, published in 1999 in Current Atherosclerosis Reports, researchers looked at the Nurses’ Health Study and estimated that eating nuts instead of an equivalent amount of carbohydrates reduced heart disease risk by 30 percent. Substituting nuts for saturated fats, such as those found in meat and dairy products, resulted in a 45 percent estimated reduced risk. 

Replacing almonds with saturated fats may also help lower LDL (bad) cholesterol levels. A 1994 study published in The American Journal of Clinical Nutrition looked at men with normal cholesterol levels and found that those who supplemented their diets with almonds for three weeks saw a 10 percent reduction in LDL levels. 

Additionally, a serving of almonds provides 5 percent of the recommended daily value of potassium, which is necessary for heart health, according to the American Heart Association. Many studies have linked potassium with lower blood pressure because it promotes vasodilation (widening of blood vessels), according to Today’s Dietitian. The magazine article cited a study of 12,000 adults, published in Archives of Internal Medicine, which showed that those who consumed 4,069 mg of potassium each day lowered their risk of cardiovascular disease and ischemic heart disease by 37 percent and 49 percent, respectively, compared to those who took 1,793 mg per day. 

Magnesium is also essential for heart health. According to the University of Maryland Medical Center, some doctors have seen positive results from giving patients who have suffered from heart failure doses of magnesium. There also may be a link between lower heart disease risk in men and intake of magnesium.

Heap noted that in 2003, the FDA approved “a qualified health claim recognizing that California almonds may help reduce the risk of heart disease." The official statement said:

"Scientific evidence suggests, but does not prove, that eating 1.5 ounces of most nuts, such as almonds, as part of a diet low in saturated fat and cholesterol may reduce the risk of heart disease. One serving of almonds (28g) has 13g of unsaturated fat and only 1g of saturated fat.”

Almonds may even be good for those suffering from hyperlipidemia (excess lipids or lipoproteins in the blood). These patients used to be instructed to stay away from nuts because of their fat content, but a study published in 2002 in the journal Circulation showed that hyperlipidemic patients who ate almonds as snacks actually saw significant reductions in heart disease risk factors. 

Weight loss and preventing weight gain

“With their combination of protein, fiber, good fats and satisfying crunch, almonds are a smart snack option to help keep hunger at bay while satisfying cravings,” said Heap. While she noted that “numerous studies have shown that choosing almonds as a daily snack does not lead to changes in body weight,” substituting them for other snacks may help dieters. A 2003 study published in the International Journal of Obesity and Related Metabolic Disorders suggested that combining almonds with a low-calorie, high-monounsaturated fat diet led to more weight loss than did a low-calorie diet with lots of complex carbohydrates. Another recent study, published in 2015 in the Journal of the American Heart Association, looked at substituting almonds for a muffin of the same caloric value and found that though participants did not lose weight in either group, the almond-eating group saw a reduction in abdominal fat, waist circumference and fat on the legs, as well as improved LDL cholesterol levels. 

Almonds can also be a more satisfying snack than high-carb counterparts. “Their combination of protein, fiber, and good fats makes them a satisfying snack choice that can help keep you from reaching for empty calorie choices between meals,” said Heap. “In fact, a recent study showed that women who ate a mid-morning snack of 1-1.5 ounces of almonds felt more satisfied and ate fewer calories at subsequent meals.”

As if that weren’t good enough news, almonds may also help prevent weight gain. A Spanish study published in 2007 in the journal Obesity found that over the course of 28 months, participants who ate nuts twice a week were 31 percent less likely to gain wait than were participants who never or rarely ate nuts. 

Good for gluten-free dieters

“Almonds are naturally gluten-free, and are a versatile, nutrient-rich addition to gluten-free diets," said Heap. "Because gluten-free diets can be low in iron, fiber, B vitamins and protein, and high in saturated fat and sugar, it is important to help fill these gaps and optimize nutrition. All forms of almonds, including almond flour, almond milk and almond butter, are excellent additions for those choosing a gluten-free lifestyle.”

Diabetes

According to the AJCN review of nuts and health outcomes, the links between nut consumption and diabetes risk and symptoms are less clear than with heart disease. Nevertheless, the Nurses’ Health Study showed an inverse relationship between regular consumption of nuts and diabetes, as did the Shanghai Women’s Health Study (2008). 

Additionally, there is some evidence that almonds can be helpful in regulating blood sugar levels. A 2006 study published in the Journal of Nutrition looked at giving participants controlled meals based either around almonds, rice, potatoes or bread. Researchers found that participants’ blood sugar and insulin decreased after eating the almond meal but not the others. Also, antioxidants in the blood increased after the almond meal, while they decreased after the other meals. 

Almonds may also help lower the glycemic index of a high-glycemic meal. A 2007 study, published in the journal Metabolism, looked at combining almonds and bread-based meals. The more almonds participants ate, the lower the meal’s glycemic index became and the less the participants’ blood sugar levels rose. Eating three ounces of almonds with the bread-based meal lowered the meal’s glycemic index to less than half of that of the bread-only meal. 

Energy 

These tasty tree nuts can help you get moving. They are a very good source of energy-encouragers riboflavin, manganese and copper. Riboflavin is also known as vitamin B2, and it helps produce red blood cells and release energy from the carbohydrates you eat, according to the National Institutes of Health. Manganese and copper are components in an enzyme that stops free radicals in mitochondria, where our cells produce energy, according to World’s Healthiest Foods. In this way, these trace minerals help maintain your body’s energy flow. 

Prevent gallstones

The fat and fiber content in almonds may help prevent gallstones by keeping your gallbladder and liver running smoothly. An analysis of the Nurses’ Health Study showed that frequent nut consumers were 25 percent less likely to need a cholecystectomy, a procedure to remove the gallbladder that is often done to treat gallstones. Another study, published in 2004 in the American Journal of Epidemiolgy found similar results in men, with frequent nut consumers seeing a 30 percent decreased risk in gallstone disease. 

Cancer

According to the AJCN nuts and health review, some studies suggest that there might be a relationship between nut consumption and reduced cancer risk in women, especially for colorectal and endometrial cancers, but these studies do not focus on almonds specifically. One animal study published in 2001 in Cancer Letters looked at whole-almond consumption in rats and found that those who ate almonds had fewer cancer cells in their colons. 

Additionally, the antioxidants and vitamin E in almonds may have cancer-fighting benefits, though the National Cancer Institute warns that results from studies examining antioxidants, vitamins and cancer are inconclusive. 

(Source: www.livescience.com)

Achieve More by Doing Less

Achieve More by Doing Less

Doubted if you have read the title correctly? Do not worry, you've got it right. You can actually achieve more by doing less. The question is, how? 

First, we need to master the art of doing nothing. By doing nothing, it means rest. Many people are deprived of sleep nowadays. We work day and night under pressure to meet demanding deadlines. We are tensed up, and so stressed that we often failed to notice what we are in a viscous self-defeating cycle. Nowadays we are playing multiple roles in our daily lives. To live up to other’s expectation and to avoid disappointing the people around us, we are taught to never say NO when people make requests.

Many times, we are made into believing that we can achieve batter result by doing more. Therefore, we keep our schedule as tight as possible, end to end. We have become so blinded by the secular value and the expectation from the external environment; eg. from our superior, from our spouses, from the school, etc.

We have always been told that the most successful people are the most hardworking people in the world. We read motivational articles citing successful figures and described how those people worked until late night every day and wake up next day early morning before dawn to achieve who they are today. However, is that really the truth? Is that the best way to be successful?

Robert Kwok, the richest man in Malaysia, during his interview in 2011 with CNTV, said that one of his secret of success is that he has a simple night life. He rest early at night, to ensure that he can be at tip top condition the next day.

 Li Ka-Shing, the richest Chinese entrepreneur in the world, keeps his work desk clean all the time. He is known as Superman because of his great success in managing his mammoth corporation. Contrary to common belief, he do not do many things at once; he only selectively attend to important things, and he makes sure he completes what he started.

1. It is not how many things we have done but how many important things we have completed that counts.

2. Without proper sleep, our cognitive function may not perform best when we needed it most.

3. When we make mistake, we actually spend more time to correct it than to avoid the mistake. Sleeping an hour earlier may avoid blunder that would take a few hours to rectify.

4. Sometimes good opportunities are hard to come by. We miss it, that’s it. It cannot be compensated with extra efforts. We are losing more opportunities than we know when we failed to stay alert due to lethargy, a result of overwork and sleep deprivation.

5. When we are reluctant to decide what to attend to and what to reject, it could mean that we are not confident. People tend to make themselves feel good/important by appearing busy and attending to many tasks. These are the people who are inferior in nature. To cover their inferiority, people tend to act the opposite way, to convince themselves of their importance by “accumulating” tasks.

6. Human body is the most delicate and complicated machine in the world, that even the most knowledgeable medical practitioners has yet to fully understand how our body works. Worse of all, we do not have spare part for our vital organs. Once our body start to fail, all is over.

7. A healthy body is our biggest capital. We can only achieve more when our mind and body operate at optimal condition. Resting is a vital process which our body heals itself. By resting properly, we can achieve more by doing less.