Malaysia: Expect a Good Property Market in 2010

So says Peter Lim of property portal, iproperty.

A litle bit of macro economics.

The Malaysian economy was not spared from the global recession. In the first quarter of 2009, her export hit an all-time low of 6.2% (year over year). However, the market improved in the second half of 2009 yet remained relatively weak when compared to other regional markets such as Hong Kong and Singapore.

According to Peter, for 2010, many industrial players feel that Malaysia’s property market will be performing well because:

1. The interest rate is still very attractive despite its tendency to increase in the near future because of the economy’s improving conditions. Furthermore, finance institutions are moving toward risk-based pricing in determining more sustainable interest rates for the industry.
2. Due to the population growth in Malaysia, the demand for residential properties will remain strong for years to come.
3. The removal of the 30% Bumiputra equity quota for companies seeking to list on Bursa Malaysia will encourage more domestic and foreign direct investment, which will further stimulate the property industry.
4. Developers continue to roll out housing projects with innovative designs, higher quality, 10/90 property financing scheme etc.
5. As the economic condition improves and the household income gradually increases, Malaysians will be prepared to commit to more capital spending such as buying houses.
6. As global economy gradually recovers, foreigners are flocking back to Malaysia to buy properties as we have one of the highest quality and cheapest properties to offer in Asia.

If the the government continues to play its active role in creating employment opportunities and improving the purchasing power of its citizens, Peter is speculating 2010 will be one promising year for property investment.

China: Asset Bubble Coolant

The Chinese government does not intend to play with fire. No property bubble and certainly no stock market meltdown can come its way if they stay ever vigilant.

And so it came to pass. Before the 'shove' phase can come on, they capped it at the 'push phase'.China renewed its vow to curb runaway property price rises by increasing the supply of affordable housing and cracking down on housing speculation.

First, China's central bank raised bank reserve requirements [for the first time since a cut in December 2008], signalling that the days of cheap money are numbered.

They warned of excessive borrowing among land developers and indicated that property prices in the country's rich coastal cities are too high, stressing that the government remains focused on preventing further asset price inflation.

In a joint statement, officials at the Ministry of Finance, Ministry of Land and Resources, the central bank, the banking regulator and others said they would continue to increase the supply of land and affordable housing, and set up checks on the property investments of state-owned enterprises.

"Since the second half of 2009, some cities have witnessed fast property price rises and inefficient supply of housing," the statement said.

The State Council, China's cabinet, on Sunday warned of the negative impact of letting hot money flow into domestic real estate markets and inflating prices further.

The Housing Ministry has also called for stricter rules on giving mortgages to second-home buyers and is discussing eliminating discount financing for buyers who already own one home.

Such a gung-ho approach. Don't they mean business?

Yoga Guru's Licence to Molest?

I think that there must be do's and don't in every field where there is physical contact between the sexes.This is applicable even in the field of sports such as football.

But what about indoor pursuits such as in dancing and yoga? Aren't there ethical standards and 'private space' to be observed by these so-called mahagurus?

The picture below shows how things can really go wrong.

Dayang Enterprise: Looking Beyond RM2.00

The last two months saw increased buying of the stock. A share in fallow for almost 2 years,at a low of 70 sen in March 2009. It started to stir after the buying of BORCOS Shipping to strengthen its operations in East Malaysia.

There must be some magic somewhere that started this buying spree. I do not know the reason but the collection has been substantial.

AFTER scaling to an all-time high of RM1.90 on Jan 7, Dayang Enterprise turned range-bound on continuous bargain hunting that alternated with profit-taking activity on consolidation. Apparently, the moving average convergence/divergence histogram remains bullish, indicating investors can accumulate more on weakness. A push above the recent peak may propel prices to the next upper hurdle of RM2.10. Support is expected at RM1.75.

I believe it is a cornered stock in some respect with little float. That is why the bargaining always bring the stock a notch or two up, few cents better every trading day in the last week or so.

Watch this counter.

Stockmarket Respect: Can You All Rise?

World stocks rose yesterday (12 January)hitting 15-month highs on stronger-than-expected Chinese trade data, reviving bets on global economic recovery, while the US dollar fell broadly as risk appetite increased.

US stocks zig-zagged as investors took a breather after a week of gains that pushed the S&P 500 to close at fresh 15-month highs, while nervous investors braced for the start of the quarterly earnings reporting season.

The US dollar fell following Friday’s weak US jobs data and comments from a Federal Reserve official that interest rates in the United States are likely to stay low for quite some time.

Global equities measured by the MSCI All-Country World rose 0.72 per cent after rising to the highest since late September of 2008. Emerging stocks hit 17-month highs rising 1.09 per cent, following a 74 per cent rally last year.

“We have got a lot of data coming out over the next few weeks and the fourth-quarter earnings season in the United States is about to start, so there is every reason for investors to stay on the sidelines.” said Jim Wood Smith, head of research at Williams de Broe in London.

Growth in China’s exports and imports last month pushed commodities higher with gold rising 1.4 per cent to a 5-week high, copper jumping 1.5 per cent and aluminium advancing 2.45 per cent.

Exports rose 17.7 per cent from a year earlier, dwarfing the 4.0 per cent rise forecast by economists and breaking a 13-month streak of year-on-year declines. Imports surged 55.9 per cent, much more than the 31.0 per cent increase markets had expected.

Crude oil prices slipped to US$82.22 a barrel on forecasts for warmer US weather ahead from last few weeks’ freeze, after an earlier high near US$84 (RM280) a barrel.

DOLLAR & BONDS

A surge in Chinese exports increased optimism the global economy is recovering and boosted risk appetite, pushing investors to drop safe-haven dollars.

The dollar fell 0.61 per cent at 77.001. The euro rose 0.44 per cent at US$1.4519 having hit its highest level in more than three weeks at US$1.4557. Against the Japanese yen, the dollar fell 0.57 per cent at 92.08 from a previous session close of 92.610.

The US currency also continued to be pressured after data on Friday showed US employers cut 85,000 jobs last month, disappointing many in the market who had expected the US economy to stop losing jobs.

“The combination of the weak jobs report last week and the realization that the Fed is going to keep rates low for a long time has put a stop to the recent dollar rally,” said Vassili Serebriakov, a currency strategist, at Wells Fargo Bank.

Meanwhile, US Treasuries traded mostly higher, as investors nibbled at low-risk assets due to weaker stock prices and solid demand at a US$10 billion auction of government inflation-protected bonds.

Benchmark 10-year Treasuries were up 2/32 for a yield of 3.83 per cent, down 1 basis point from late Thursday.

The pan-European FTSEurofirst index of top shares closed down 0.1 per cent at 1,063.82 points, after touching a new 15-month high of 1,074.50.

Stockmarket Respect: Can You All Rise?

World stocks rose yesterday (12 January)hitting 15-month highs on stronger-than-expected Chinese trade data, reviving bets on global economic recovery, while the US dollar fell broadly as risk appetite increased.

US stocks zig-zagged as investors took a breather after a week of gains that pushed the S&P 500 to close at fresh 15-month highs, while nervous investors braced for the start of the quarterly earnings reporting season.

The US dollar fell following Friday’s weak US jobs data and comments from a Federal Reserve official that interest rates in the United States are likely to stay low for quite some time.

Global equities measured by the MSCI All-Country World rose 0.72 per cent after rising to the highest since late September of 2008. Emerging stocks hit 17-month highs rising 1.09 per cent, following a 74 per cent rally last year.

“We have got a lot of data coming out over the next few weeks and the fourth-quarter earnings season in the United States is about to start, so there is every reason for investors to stay on the sidelines.” said Jim Wood Smith, head of research at Williams de Broe in London.

Growth in China’s exports and imports last month pushed commodities higher with gold rising 1.4 per cent to a 5-week high, copper jumping 1.5 per cent and aluminium advancing 2.45 per cent.

Exports rose 17.7 per cent from a year earlier, dwarfing the 4.0 per cent rise forecast by economists and breaking a 13-month streak of year-on-year declines. Imports surged 55.9 per cent, much more than the 31.0 per cent increase markets had expected.

Crude oil prices slipped to US$82.22 a barrel on forecasts for warmer US weather ahead from last few weeks’ freeze, after an earlier high near US$84 (RM280) a barrel.

DOLLAR & BONDS

A surge in Chinese exports increased optimism the global economy is recovering and boosted risk appetite, pushing investors to drop safe-haven dollars.

The dollar fell 0.61 per cent at 77.001. The euro rose 0.44 per cent at US$1.4519 having hit its highest level in more than three weeks at US$1.4557. Against the Japanese yen, the dollar fell 0.57 per cent at 92.08 from a previous session close of 92.610.

The US currency also continued to be pressured after data on Friday showed US employers cut 85,000 jobs last month, disappointing many in the market who had expected the US economy to stop losing jobs.

“The combination of the weak jobs report last week and the realization that the Fed is going to keep rates low for a long time has put a stop to the recent dollar rally,” said Vassili Serebriakov, a currency strategist, at Wells Fargo Bank.

Meanwhile, US Treasuries traded mostly higher, as investors nibbled at low-risk assets due to weaker stock prices and solid demand at a US$10 billion auction of government inflation-protected bonds.

Benchmark 10-year Treasuries were up 2/32 for a yield of 3.83 per cent, down 1 basis point from late Thursday.

The pan-European FTSEurofirst index of top shares closed down 0.1 per cent at 1,063.82 points, after touching a new 15-month high of 1,074.50.

Japanese markets were closed for the Coming of Age Day. — Reuters

A Malaysian Can top the GCE Exams in Singapore?

Wanna bet?

Believe me, put your mind and your heart to it and you can do what she just did.

A Malaysian girl who studied in a Singapore school emerged tops in the city-state after she scored 10 A1s in the 2009 Singapore-Cambridge General Certificate of Education (Ordinary Level) Examination.

Lai Kai Rou, 16, who hails from Selangor, studied at CHIJ St. Nicholas Girls’ School (SNGS) which also topped Singapore schools with 14 of the 42 state best scorers being its students scoring 9 A1s, according to the Education Ministry which released the result today.

The Singapore-Cambridge GCE O-Level Examination was conducted jointly by the University of Cambridge International Examinations, the Singapore Examinations and Assessment Board and the ministry.

A total of 37,424 school candidates sat for the 2009 O-Level Examination and 37,380 or 99.9 percent had been awarded certificates, the ministry said. Lai entered the Singapore school four years ago after completing his primary school in a Chinese school.

Malaysia Boleh di Singapura!