Black November: Pessimism Prevails

 

So far this November has not been a good month to most stock market investors.

This is the month when most quarterly financial results will be released, and we know that most results will not be very good.

We have stricter MCO 3.0 lockdown in June & July, and then the Covid-19 new cases surged to peak in August.

Currently there is worry about Covid-19 wave number four after everyone is free to travel across state borders.

New cases stay mostly above 5,000 per day despite close to 80% of the population have been vaccinated.

I sense that the whole stock market is full of pessimism in November. 

The share price response to good financial results was rather muted while a bit of bad results could be punished heavily.

What should be our strategy in such a period of time? 

The Rise & Fall of Transmile: What Can Investors Learn?

If you are long enough in the stock market, surely you would have heard of the scandal of Transmile.

Before I did my research recently about what has happened to Transmile, I knew very little about it. 

I roughly knew that the company owned some airplanes, was related to Robert Kuok and was involved in an accounting scandal. That's all.

As currently the stock market has been overshadowed by alleged accounting fraud issue, I decided to find out what has happened to Transmile.

Perhaps we can learn something from it.

My Portfolio Oct21

 

Summary for October 2021

Portfolio @ End of Oct21

October 2021 was a good month for KLCI which advanced 1.6%. My portfolio has done quite well too with a gain of 6.6%, lifting year-to-date gain to 15%.

Major event in October should be Budget 2022 which was announced on 29 Oct21. Again, it's a budget of distributing money which does not benefit me directly.

The government has increased the stamp duty of share trading from 0.1% to 0.15%. If a trader or investor buy RM10,000 worth of shares, he/she has to pay RM15 stamp duty instead of RM10.

Luckily there was no capital gain tax on profit from stock market trading.

"Prosperity Tax" or "Cukai Makmur" is introduced in which listed companies who earn in excess of RM100mil in year 2022 has to pay 33% tax for profit above RM100mil. Profit below RM100mil will be taxed as usual at 24%.

In my current portfolio, I think only Hibiscus, Jaks, MFCB, Scientex & Supermax fall into this category. It's an one-off tax anyway.

Meanwhile, SST exemption of new vehicles has been extended to the end of June 2022 but House Ownership Campaign (HOC) was not extended beyond 2021.

This is rather a bad news to property sector. Could we see a rush in property purchase before the end of this year? I guess so.

Anyway, RPGT was abolished for the sale of property after 5 years of ownership.

These are the items that are more relevant to me in Budget 2022.