Kumar Palghat, managing director of Australia-based fixed-income focused Kapstream Capital, also expressed concerns about the longer-term prospects for EMs.

"Our major concern is, how do you protect [against] capital losses not for the next three months or six months, but for the next 12 to 18 to 24 months," said Palghat, which has about US5.39 billion under management.

Since the tapering move indicates interest rates are set to rise, Kapstream has gone "quite defensive," putting 25 percent of client portfolios into cash.

So what about you, folks? Remember folks, cash is King in this type of market! Heheheheheheh!!

This is just the beginning of something very, very structural," Paul Krake, founder of Hong Kong investment firm said. "It means a continuation of the developed market over the emerging market theme."

He doesn't expect emerging markets to find valuation support any time soon. "Ex-Korea, you haven't had earnings estimates come down anywhere near enough. You're going to have negative profit growth in India this year; consensus is still 10 to 15 percent. It's just not going to happen."

Folks, the tight monetary policy in EMs by the central banks, which could hamper growth, adds to concerns over their wide current account deficits and gives investors more reason to sell.

That's a toxic mix for emerging markets over the medium to long term & the turmoil may last for three to five years!

Investors have short memories! Another Asian crisis? Time will tell!

Folks, the winding down of the Federal Reserve's monetary stimulus, widely expected to begin this month, would likely be accompanied by a dovish statement saying monetary policy will be kept easy for a long period.

That leaves funds with developed market central banks that are extremely dovish – Japan, the Fed, the ECB, which will continue to encourage investors to stay exposed to these markets at the expense of emerging markets.

This will exacerbate outflows from EMs, drag their currencies down further and force EMs central banks to keep their monetary policy tight. Currency weakness will mean EMs central banks have to stay hawkish! Hahahahahah!!

Folks, Emerging markets in Asia appear to have stabilized in recent days, but market watchers believe the sell-off is far from over, with one analyst warning that the rout may be just the beginning of a multi-year bear market in the region.

So how? Heheheheheheh!!

AA Price Performamce:

1 month:
(28/08/13) Rm2.44 - Low
(06/08/13) Rm3.22 - High

6 months:
(28/08/13) Rm2.44 - Low
(05/06/13) Rm3.54 - High

One Year:
(28/08/13) Rm2.44 - Low
(05/06/13) Rm3.54 - High

Buy, sell or hold? Hahahahahahaha!!

D7 0303 03/09/2013 07:15 PM HANGZHOU-KUALA LUMPUR CANCELLED
AK 5173 03/09/2013 07:00 PM LABUAN-KUALA LUMPUR CANCELLED
QZ 8162 03/09/2013 04:15 PM JAKARTA-KUALA LUMPUR CANCELLED
AK 1343 03/09/2013 12:55 PM PEKANBARU-KUALA LUMPUR CANCELLED

QZ 8163 03/09/2013 04:40 PM KUALA LUMPUR-JAKARTA CANCELLED
AK 5172 03/09/2013 01:50 PM KUALA LUMPUR-LABUAN CANCELLED
D7 0518 03/09/2013 01:15 AM KUALA LUMPUR-PUSAN CANCELLED

View here: http://flight.klia.com.my/fids.aspx

Folks, Asian stocks faltered on Wednesday, while oil and gold held on to overnight gains after President Barack Obama clinched the backing of two key figures in Congress in his drive for limited U.S. strikes on Syria.

Investors also bought the dollar in the wake of stronger-than-expected U.S. data that bolstered views the Federal Reserve will begin to scale back its massive bond-buying programme as early as this month.

Careful now!

Malaysia's move to cut fiscal subsidies and limit import-intensive investments reflects its economic reforms but is seen as too small to overturn a negative outlook, Fitch Ratings said today.

Fitch said the second reason was that the political position of the ruling coalition has weakened following the May election.

"This means the government is likely to continue to encounter difficulties in implementing far-reaching, and much delayed, revenue-enhancing reforms such as the Goods & Services Tax (GST)," it said.

The government has hinted it will table laws for the GST in the coming Budget 2014 session, as part of its plans to reduce the deficit to 3% of the GDP by 2015. - September 3, 2013.

So folks, expected more bad news coming from the 2014 budget! Careful now!

Time to buy folks! Anyone? Don't you think its cheap to buy now rather than early August? Heheheheheheh!!

But wait, can it get anymore cheaper than this? Just wait & see! Hahahahahahahah!!

The Indonesian rupiah's indicative prices weakened past 11,000 per dollar support on Tuesday, for the first time in more than four years, on dollar demand from local companies after a record trade deficit.

The indicative spot fell 0.7 percent to 11,050 to the greenback as of 0626 GMT, the weakest since April 2009.

What next, ringgit? Hmmmmm...Time will tell!

The fuel hike suggests Putrajaya has concerns over revenue and likelihood of the country being punished by ratings agencies and foreign investors if no attempt is made to tackle structural problems, such as the high rate of subsidies.

But then Malaysia's inflation rate is expected to spike to 2.3% this year from current 2% due to the fuel hike effective today.

What next? GST, gas, electricity tariffs? The the introduction of the goods and services tax (GST) which would raise the cost of goods further! Careful now!

According to research from Bank of America Merrill Lynch (BofAML), what happens in the U.S. has a disproportionate impact on Asian markets, with the transition in the Fed chairmanship one challenge for regional markets.

"In the months preceding, and immediately after a transition of the Fed chairmanship, interest rates almost always rise," BofAML said in a note published on Monday.

This is important because rising government bond yields in the U.S. have been cited as one of the reasons encouraging money to leave emerging markets. Investors have short memories!

Emerging markets from Brazil to Asia and Turkey have been hit hard since May on talk of an unwinding of the U.S. monetary stimulus that has provided global markets with liquidity in the past few years.

Talk that Larry Summers, a former Treasury secretary, is the choice candidate to become the next head of the Fed has gained ground in recent weeks.

Folks, a Summers appointment would be taken as a policy break and so you need to price a risk premium into emerging markets as a result and emerging markets would weaken on talk of a Summers appointment! Careful now!

Folks, it isn't when the Fed starts to take back its massive monetary stimulus but who takes over as Fed chairman next year, that's important to markets right now.

The U.S. president is a pretty important job; but ask the Indians, the ASians, the Brazilians who's had more influence over their lives and the answer would be the Fed chief!

Investors have short memories. Larry Summers is not an advocate of QE and the reality is that all things being equal, he will unwind QE fast!

Folks, thought speculation about Federal Reserve tapering was bad for emerging markets?

Then just wait to see what happens if Larry Summers is appointed as the next U.S. central bank chief, analysts say.

They argue that if Summers replaces Ben Bernanke, whose second term as Fed chairman expires in January, any scaling back in the central bank's asset-purchase program would be ramped up by the hawkish Summers and deal a further blow to battered emerging markets.

Huge current account deficits and a lack of confidence in policy makers' ability to deliver structural reforms have put India and Indonesia at the heart of the sell-off in Asian emerging-market assets.

And amid nagging worries about a possible unwinding of U.S. monetary stimulus, the trigger for the rout in emerging markets that began in May, focus has also turned to which emerging-market countries should weather the storm and which might be the next to bear the brunt of selling.

The BoAML analysts added that while it is possible to postpone a credit bust following a credit boom, the cycle is difficult to avoid. Careful now as Malaysia 2014 budget may not be a business friendly budget!

Singapore, India and Malaysia have the poorest scores among major Asian markets excluding Japan, based on 10 factors used to measure financial vulnerability, BoA Merrill Lynch report said.

Those factors include excessive real credit growth, the gap between credit and economic growth, the returns on financial stocks and the state of the current account.

According to BoAML, a number of major Asian markets have their financial vulnerability scores close to levels seen in mid-1997, just before the Asian financial crisis.

Folks, Singapore, resilient so far to the turmoil that has swept emerging markets, appears to be one of the most financially vulnerable countries in Asia, BoA Merrill Lynch said in a note on Monday.

1. A 20sen increase for RON95 & diesel!

2. From today onwards, everything, from food to household items, would cost at least 20 sen more.

3. Increase in inflation after the petrol price hike!

4. Transport industry players (taxis, buses) and manufacturers are concerned over the 20 sen price hike for RON95 petrol and diesel.

5. To arrest declining current surplus, will delay implementation of public sector projects!

So what next, GST, other energy components like gas and electricity? Folks, expect more bad news coming from the budget 2014!

QZ 8162 02/09/2013 04:15 PM JAKARTA-KUALA LUMPUR CANCELLED

AK 1486 02/09/2013 06:35 PM KUALA LUMPUR-SIEM REAP CANCELLED
QZ 8163 02/09/2013 04:40 PM KUALA LUMPUR-JAKARTA CANCELLED
AK 1342 02/09/2013 10:50 AM KUALA LUMPUR-PEKANBARU CANCELLED

Less flight cancellation on 2/09/13. View here: http://flight.klia.com.my/fids.aspx

For every 1% change in US dollar, impacts on AA group earnings is 4%. Folks, US dollar remained a key risk for AA beside the high fuel price factor!

Finance Costs:
(2Q13) -Rm109.412m
(1Q13) -Rm106.294m

Foreign Exchange gains/(losses) on borrowings:
(2Q13) -Rm122.718m
(1Q13) -Rm37.688m

Total Debt:
(2Q13) Rm8.813b
(1Q13) Rm8.464b

Investors have short memories!

Historically, September had been weaker than August. Since the 1998 Asian Financial Crisis, the KLCI had declined by an average of -2.9% in the month of September compared with only -0.7% in August.

Having said that, while August had been a nervy month for investors, September may turn out to be more challenging for the faint-hearted.

Dare to buy, folks? Careful now! Investors do have short memories. Wakakakakakakaka!!

Malaysia arrested thousands of undocumented immigrants as the country began a nationwide operation to track down and deport almost half a million illegal workers from countries including Indonesia and Bangladesh.

The move coincides with an expected slowdown in economic growth. The central bank cut its forecast for growth this year to 4.5 percent to 5 percent last month after expansion last quarter fell short of economists’ estimates.

Malaysia is also planning to delay some government-linked infrastructure projects to help contain a budget deficit and bolster a shrinking current-account surplus, Idris Jala, a minister in the Prime Minister’s Department said last week. There you go, folks! What does this tell you, folks? Careful now!

AirAsia Berhad ("AirAsia" or "the Company") wishes to announce for public information that as at 28 June 2013, 51.92% of the issued and paid-up share capital of AirAsia of 2,780,534,580 ordinary shares of RM0.10 each were held by foreigners.

The percentage of ownership of shares in the Company by foreigners has exceeded the limit of 45% of the Company's total issued and paid-up share capital ("Prescribed Limit").

View here: http://www.bursamalaysia.com/market/listed-companies/company-announcements/1348253

1. Foreign funds remained net sellers every single day of the week, and had been selling in the open market in 24 out of the last 25 trading days.

2. The selldown surged to -RM901m on August 28 (Wednesday), the second highest in a day this year after the record -RM1.05b net sale on August 20.

3. As of last Friday, the cumulative net foreign purchase of Malaysian equity in 2013 had dropped significantly to +RM7.92b (+USD2.80b), based on transactions in the open market.

4. Since Jan 2011, the cumulative purchase amounted to +USD8.04b. Therefore, even after the heavy outfl ow last week, the overhang of foreign liquidity in the local market remained extremely high.

5. Investors have short memories as 51.92% of the issued and paid-up share capital of AirAsia of 2,780,534,580 shares of AA were held by foreigners.

Foreign selldown on Bursa has now stretched for five consecutive weeks. During the period, a total amount of -RM7.08b or -USD2.15b of foreign money had fled Malaysian equity.

As at 28 June 2013, 51.92% of the issued and paid-up share capital of AirAsia of 2,780,534,580 shares of AA were held by foreigners.

Investors have short memories!!

Folks, Malaysia remained vulnerable to foreign selldown in its equity market. Foreign funds sold Malaysian equity in the open market last week amounted to -RM2.1b.

Although lower than the -RM2.9b outflow the week before, it was still one of the heaviest deficits since the 2008 Financial Crisis.

Remember folks, as at 28 June 2013, 51.92% of the issued and paid-up share capital of AirAsia of 2,780,534,580 shares of AA were held by foreigners.

WELLINGTON MANAGEMENT:
Before 2QE13 - Total no of securities: 13/08/2013 313,286,241 (11.27%)

Disposed 23/08/2013 4,142,200
Disposed 26/08/2013 2,862,600
Disposed 27/08/2013 918,600
Acquired 27/08/2013 600,600
Disposed 28/08/2013 973,810

After 2QE13 - Total after change: 29/08/2013 292,424,541 (10.52%)

1. Folks, Emerging Asia continued to experience the brunt of selling.

2. While the selldown in Thailand and Indonesia appear to have tapered, foreign investors picked on the Philippines and Malaysia last
week.

3. Manila reported a minus USD262m outfl ow, the highest in a week this year.

4. Meanwhile, the outflow was still heavy from Malaysia, where minus USD638.5m was reportedly fled, the highest among Asian markets for the second week running.

5. 51.92% of AA were held by foreigners. Investors have short memories!!

Folks, tThe focus of next week may continue to be Syria & the longer nothing happens, the longer Syria remains an overhang on the market.

The sooner a response happens, markets can get it off their plate and move on., folks!

An attack would jibe with market reactions to military strikes in the past.

United Nations inspectors left Syria on Saturday, with their departure seen as removing one obstacle to a U.S. military attack.

Careful now!

Folks, a further rebound will see keen profit-taking and selling interest which will restrict upside potential, and buying momentum would remain weak and cautious given the uncertainty over the extent of reversal in foreign capital flows and the tensions on Syria.

Careful now!

AA Price Performamce:

1 month:
(28/08/13) Rm2.44 - Low
(06/08/13) Rm3.22 - High

6 months:
(28/08/13) Rm2.44 - Low
(05/06/13) Rm3.54 - High

One Year:
(28/08/13) Rm2.44 - Low
(05/06/13) Rm3.54 - High

1. Folks, buying momentum to remain weak and cautious. Technical rebound on may fizzle out.

2. Foreign selling have not disappeared.

3. Better-than-expected 2Q gross domestic product of 2.5% and strong payrolls are likely to influence the Fed's decision on the extent of tapering.

4. Many of them would still be interested to see the plans in store to address Malaysia's shrinking current account surplus and to reduce the budget deficit, after the downgrade in sovereign outlook by Fitch Ratings.

5. Malaysia's valuation has turned relatively expensive after the sharp fall in other regional markets.

6. BNM is expected to announce rate policy in this Thursday's meeting. Up, maintain or down?

Careful now!

Asian shares climbed to a two-week high on Monday, and the Australian dollar and copper gained, as China said its manufacturing expanded in August at the fastest pace in more than a year.

A delay in potential US military action against Syria, as US President Barack Obama sought Congressional support, also helped boost short-term risk appetite.

KLCI? Down..........hmmmmmmmm!! Another harrowing roller-coaster ride in the coming days/weeks? Time will tell! Hahahahaha!!

Folks, the September futures closed at 1,707.5 for a large 20-point discount to cash, confirming the bearish market undertone as traders rolled over short positions to the new contract month amid concerns the current correction has further to run.

So how, buy, sell or hold?

Is the worst over for the Emerging Markets?

Hmmmmmmmmmm........!!

AK 1487 01/09/2013 11:25 PM SIEM REAP-KUALA LUMPUR CANCELLED
QZ 8206 01/09/2013 07:35 PM JAKARTA-KUALA LUMPUR CANCELLED
AK 5221 01/09/2013 01:00 AM KUCHING-KUALA LUMPUR CANCELLED

AK 5229 31/08/2013 08:25 PM KUCHING-KUALA LUMPUR CANCELLED
D7 0303 31/08/2013 07:15 PM HANGZHOU-KUALA LUMPUR CANCELLED
QZ 8162 31/08/2013 04:15 PM JAKARTA-KUALA LUMPUR CANCELLED
AK 1826 31/08/2013 07:00 AM SINGAPORE-KUALA LUMPUR CANCELLED
AK 5221 31/08/2013 01:00 AM KUCHING-KUALA LUMPUR CANCELLED
AK 1455 31/08/2013 12:00 AM HO CHI MINH-KUALA LUMPUR CANCELLED

QZ 8207 01/09/2013 08:20 PM KUALA LUMPUR-JAKARTA CANCELLED
AK 1486 01/09/2013 06:35 PM KUALA LUMPUR-SIEM REAP CANCELLED
AK 1342 01/09/2013 10:50 AM KUALA LUMPUR-PEKANBARU CANCELLED

AK 5220 31/08/2013 09:00 PM KUALA LUMPUR-KUCHING CANCELLED
AK 1440 31/08/2013 06:30 PM KUALA LUMPUR-HANOI CANCELLED
QZ 8163 31/08/2013 04:40 PM KUALA LUMPUR-JAKARTA CANCELLED
AK 5228 31/08/2013 04:30 PM KUALA LUMPUR-KUCHING CANCELLED

View here: http://flight.klia.com.my/fids.aspx

Good morning folks! Sell off my contra at Rm2.59! All the best to those still holdings!

AA Price Performamce:

1 month:
(28/08/13) Rm2.44*- Low
(06/08/13) Rm3.22 - High

6 months:
(28/08/13) Rm2.44*- Low
(05/06/13) Rm3.54 - High

One Year:
(28/08/13) Rm2.44*- Low
(29/08/12) Rm3.64 - High

*new low!

What will tomorrow hold for AA? Your wild guess, folks? Up, down or unchange? Tq!

Folks, let me summarize for your easy reference 2Q13

Revenue:
(2Q13) Rm 1.246b (Down)
(1Q13) Rm 1.300b

Operating expenses:
(2Q13) -Rm1.002b
(1Q13) -Rm1.045b

Finance Income:
(2Q13) Rm14.306m (Down)
(1Q13) Rm19.771m

Finance Costs:
(2Q13) -Rm109.412m (Up)
(1Q13) -Rm106.294m

Foreign Exchange losses on borrowings:
(2Q13) -Rm122.718m (Up)
(1Q13) -Rm37.688m

Forex gain/(loss) on amt due from associate:
(2Q13) Rm8.228m
(1Q13) Rm4.889m

Current Taxation:
(2Q13) -Rm6.262m

Deferred taxation:
(2Q13) -Rm47.999

Share of results of jointly controlled entities:
(2Q13) Nil
(1Q13) -Rm2.346m

Share of results of associates:
(2Q13) Nil
(1Q13) -Rm1.420m


Profit after tax 2Q13 b4 AA Japan sale gain: -RM19.917m
####################################


Gain on disposal of interest in AA Japan 2Q13: Rm78.265

Profit after tax :
(2Q13) Rm58.348m (Down)
(1Q13) Rm104.793m

Cash and cash equivalents:
(2Q13) Rm1.639b (Down)
(1Q13) Rm2.156b

Trade & Other Payables:
(2Q13) Rm1.233b

Total Debt:
(2Q13) Rm8.813b (Up)
(1Q13) Rm8.464b

Net Gearing:
(2Q13) 1.56 – after cash deduction on debt
(1Q13) 1.39 – after cash deduction on debt

1. Yes folks, a LOSS of Rm19.917m if without AA Japan sale gains.

2. Forward loads in Malaysia for the remaining months of the 3Q13 are lower than in the prior year with base fares slightly lower than the prior year.

3. A recipe for disaster: high jet fuel price plus weak ringgit!

4. No dividend recommended for the quarter ended 30 June 2013

5. 51.92% of AA were held by foreigners

6. Sell off in emerging markets

7. War in Syria

A small leak will sink a great ship!

Happy Investing!

AA Price Performamce:

1 month:
(28/08/13) Rm2.44*- Low
(06/08/13) Rm3.22 - High

6 months:
(28/08/13) Rm2.44*- Low
(05/06/13) Rm3.54 - High

One Year:
(28/08/13) Rm2.44*- Low
(29/08/12) Rm3.64 - High

*new low!

Happy Investing

Well folks, its your choice to hold, buy or sell! You can agree to disagree with me after all its your money!

Careful now for AA as the cut is so deep and the bledding has not stopped yet!

Now traders or investors closing out short positions or buying on the assumption that the security has reached a bottom!

To those buying, well not so soon! Any rebound will be short-lived by selling pressure at higher price!

In a perfect world, investors would be cold and calculating as a computer chip. Buy and sell without emotions, passions, enthusiasms and dislikes. Their decisions would be based on one primary objective: to increase their economic welfare.

However, unfortunately, research has shown that investors do not make decisions just like the machines. The investment selection process is actually much more humane than analytical. The feelings of loss, pride and regret into question the process, if not confuse it.

For example, if an investment of $ 100,000 has performance 20%, the investor receives more than $ 20,000 of return: a feeling sense of pride.

On the contrary if the loss is 20%, the investor loses more than $ 20,000. He feels the remorse. Given that remorse is a stronger feeling of pride, people tend to avoid situations where the chances of both are more or less equal.

Although the potential may be equal, the impact on the investor of one over the other are not.

A small leak will sink a great ship! Then what will a perfect storm do to a great ship? Hmmmmmmmm......!!

Reports that the U.S. is gearing up to hit Syria with three days of missile strikes as early as Thursday prompted a steep sell-off across global equity markets that started on Tuesday and persisted into Wednesday.

According to Jack Bouroudjian, CEO of Bull and Bear Partners, Syria is another blow to emerging markets just as they were catching a breath.

"We are almost at a very near term bottom in emerging markets. I would not be surprised to see some of the fund flows work its way out of the U.S. market into emerging markets," said Bouroudjian.

"But there is a very big black cloud out there [now] - the Syrian situation has to get under control - there is a lot at stake here," he added.

Thanks anbz for your recommendation. At this momemnt "Cash Is The King"!

Folks, the drop/cut is too deep from rm3.50 till rm2.44 in less than 3 months. The recovery will take quite a long period to heel provided no major organs of the body is affected.

If so then more lightly it will become a permanent damage or worse from time to time!

Be extra careful, folks!

The Indian rupee fell more than 3.5 percent to hit a fresh record low of 68.75 to the dollar on Wednesday. The rupee is the world's worst major performing currency so far this year, slumping around 24 percent.

This compares with a fall of 13 percent in the Indonesian rupiah and 9 percent in the Malaysian ringgit.

Meaning more room for other emerging markets to follow the rupee! Folks, IQ test question for those genius. Buy, sell or hold AA?

Revenue:
(2Q13) Rm 1.246b (Down)
(1Q13) Rm 1.300b

Cash and cash equivalents:
(2Q13) Rm1.639b (Down)
(1Q13) Rm2.156b

Trade & Other Payables:
(2Q13) Rm1.233b

Total Debt:
(2Q13) Rm8.813b (Up)
(1Q13) Rm8.464b