Won't break 9, but will spike 8.80 if US econ low. Wait for June Fed meet, no hike-8.80 come.

Hi Junichiro, yes they are cutting down as everyone knows they dumped 1b plus last week. They did the same in Aug 2013. It recovered later. Where else is the money going to flow? They sold in anticipation of MSCI. That event has passed. Maybank still held it's walls at 8.40 plus after the brutal selloff. Once investors find more rate cuts are bound for most of the developed world they will return. Probably not as robust as before but an allocation nonetheless.

The issues you were right about is corruption and oil. Most investors already know these issues since mid year ago. They aren't late to the party. That was when maybank fell to 8.18-8.20. After that it recovered to 8.80 within 2-3 months.

In global economy everyone needs each other. Always put yourself in the fund manager's shoes who manages a global mandate fund. Where would you put the cash to work? I'm not saying Malaysia is the star, but it's definitely on their radar. USA is overbought after a 7 year rally, East Asia is down, SG neighbor REITS all down, Indo rate cut, Aus/NZ rate cut, Europe negative rate, UK migrant crisis and brexit. Malaysia average PE or PB depending on industry is low compared to those countries.

foreign funds will come back. Look at it this way, you wanna go in when foreign fund flow is at week high or at week low? Week low. Get your seat to the movie early.

http://www.theedgemarkets.com/my/flash-categories/fund-flow

Why? Rational thinking.

Jap/UK/Europe/US/Korea/Aus/NZ/Canada/China/SG are down. Historically speaking.

Asset wise-bonds/deposits are suffering from negative rates. structures are okay but yield is low for the risk taken. Sharpe ratio not that good.

So what else is there? stocks, gold,commodities. Let's skip comm for obvious reasons.

Stocks and gold left. Yes you can do gold, but it won't yield anything and there is a carry cost. So mostly it's a trading/high leverage play.

Stocks left. Defensive strat now so managers will go into REITS, infra (gamuda etc) and big cap. Maybank sold cause of MSCI news and NPL. However, I believe it has been oversold. The upcoming earnings on the 27th will prove right or wrong.

yes thats right. But like I mentioned they can lock in bean prices if they analyse the futures market correctly. The thing about middlemen like guan chong is that if the price of cocoa goes up their margins are compressed so it's "bad" but they can pass on the cost to their clients too. They can also mitigate it by FX hedging or they can charge a premium on their product to cover their cost.

So it all depends on their strategy.

On the other hand, what if price of beans go down? Yes their margins are better but lower bean prices means lower demand (usually). So lower demand means? Lower topline(revenue). So now they have higher margins but lower revenue so it evens out.

That's why for middlemen /processors, it's usually not that clear cut.

allan, yes that's right. but the price is very tricky to ascertain. Most commodity plays are always subject to future markets so you never really know which price they locked in at. You can take a look at their annual report for better view of their books

http://cdn1.i3investor.com/my/files/dfgs88n/2016/04/29/1484689098--779016098.pdf

zerocool, the whole world is having a slow economy not just malaysia. japan and europe negative rates but doesn't help, uk has brexit concerns, singapore housing slowing, china whole market down since mid last year, aussie/nz also down from commodities, usa now delaying rate hike until end year cause of lower jobs outlook.

while malaysia is not that bad, it recently beat analyst expectations of gdp growth too.

http://www.thesundaily.my/news/1803550

maybank will overcome their NPL slowly but surely.

allan, high cocoa prices can be interpreted as good or bad depending on perspective and time horizon. Most people see cocoa as supply for GC so a lower cost would improve margins and therefore profits. However it's not so simple. Lower cocoa prices usually means lower demand for cocoa (or too high supply,etc) . So this will translate to lower demand for the entire industry as a whole. Look at why even with low oil prices oil refineries are not exactly surging up in price.

haha. 1mdb was priced in wayyyyy before guys. old news already when maybank hit 8.20 last year if you guys recall. 8.20 was from the 1mdb and china slowdown NPL bad news all priced in. Then it went up to 8.80 again in 4 months. This selloff was purely msci. Now Malaysia 1Q16 GDP reported last Friday was above analyst forecast as well. So the buying support has come back.

I will start accumulating more on Monday and see the volume. Then every week buy more if there is an overall uptrend pattern week on week. By July-Aug should go back up to 8.70-8.80.

Ridiculously low PE. Bought some for long term holding.

Buying now for the next launch. Feeding at the bottom after main holders selloff.

Bought this stock when it was trading quite high. Thought the last quarter would give it a kick but so did everyone else. Too high expectations made the building collapse. Having buyer's remorse now.

Long holding hit at 2.50

Don't worry bros, I support at 8.36 above DRP and above my M17 warrants 8.20.

Loading up on 17 warrants!!!!!