Money Talk

Now that the UMNO General Election is coming to an end and the various Office Bearers are being put in place. With an impending cabinet reshuffling on the card immediately after the transition of Power from PM PakLah to Datuk Seri Najib Tun Razak, do expect counters linked to them to be played up !

I gonna miss U, Please don’t cry…arr… arr…arr !

You may revisit the article on DSN linked counters posted here previously to select your favourite counters for short term play at your own risk ! Or  Go here : http://moneytalk.10diamond.com/?page_id=309

PakLah or  KJ linked and/or related counters : SCOMI group of companies, Equine, ECM and excetera should be there too !

 

Out going PM, PakLah’s daughter and (SIL) KJ’s wife, Norlee sharing the “limelights”

Iskandar and Khazanah related and the various corridors counters may be worth a look too at this point of time.

“Good Luck” to you guys !

P/s Notes : Disclaimer : The articles posted in this blog is the writer’s own point of view and should not in any way be construed as  a solicitation to buy or sell any stocks mentioned. You trade at your own perils !

Have you guys ever heard of this phrase, “Charities begins at Home” ?

Well, that’s precisely what DPM/FM Datuk Seri Najib Razak (our SOON2B-PM) is proposing to do right now as it’s the “rakyat’s” welfare that is of utmost importance ! So helping the “rakyat” to brace for hardships ahead should be made the top priority for now, making sure that the “rakyat” have enough to eat, work and survive !

Regardless, there’s no escape for Malaysia too in as far as recession is concerned. Our main hope is that the proposed RM60B stimulus package when put into action may just be enough to provide the minimum basic measures to cushion the nation’s economy from falling into deeper recession provided there are no abuse on the “delivery system”. Datuk Seri Najib Razak must ensure that the stimulus reaches the “rakyat” as often times, we heard of “aids or rescue packages” being “hijacked” on the way with only a “token” reaches it’s intended destination ! PM Pak Lah have on many occasion previously lambasted those “Little Napoleans”who are out to frustrate the delivery system !

Published: Wednesday March 11, 2009 MYT 11:54:00 AM

KLCI rebound likely not sustainable

By Fintan Ng

 

KUALA LUMPUR: The KLCI rebound in morning trade Wednesday may not be sustainable going forward as fundamentals are still weak despite the announcement of an RM60 billion stimulus package yesterday.

AmResearch Sdn Bhd said the stimulus package “is not likely to trigger a re-pricing of growth expectations anytime soon given elevated aversion to risk”.

It said the package would mitigate some concern over a deepening of an impending recession further out.

HwangDBS Vickers Research Sdn Bhd said the KLCI rebound “will probably be less forceful after falling less than its regional peers in recent weeks”.

It added that much would also depend on the reaction to the package, as investors digest the probable implications on individual industries such as construction, property and banking.

Meanwhile, the region’s main indices were in positive territory after a strong close on Wall Street yesterday after Citigroup Inc chief executive officer Vikram Pandit said the bank was “having its best quarter since the third quarter of 2007″.

At 11.15am, the KLCI was up 0.56% to 860.01 while Singapore’s Straits Times Index rose 1.76% to 1,511.94.

Tokyo Nikkei 225 advanced 4.01% to 7,338.16 and Hong Kong’s Hang Seng Index climbed 3.83% to 12,141.41.

Shanghai’s A share index was up 0.69% to 2,173.56 while Seoul’s Kospi Indx rose 2.81% to 1,122.86.

At Bursa Malaysia, 190 counters were up, 113 were down and 201 others were traded unchanged. There were 152.18 million shares traded with a total value of RM210.18 million.

Among active stocks, BCHB and UEM Land were unchanged at RM6.20 and 72.5 sen respectively. MRCB was up 1 sen to 84 sen while TM International rose 10 sen to RM2.65.

MISC was 20 sen higher at RM8.45 while its foreign tranche rose 10 sen to RM8.30. IJM was up 14 sen to RM3.76, Tanjong fell 20 sen to RM14.40 and United Plantation dropped 10 sen to RM10.70.

Crude palm oil 3-month futures was down RM1 per tonne to RM1,994. Nymex crude oil in electronic trade was 11 cents higher at US$45.82 per barrel.

Spot gold fell US$3.09 to US$895.06 per ounce.

The ringgit was quoted at 3.686.

 MPOV :

Back to Basic, shouldn’t we be thinking of Nationalisation at this moment   ?

Deputy Prime Minister Datuk Seri Najib Tun Razak tabled a stimulus package totalling RM60bil in Parliament on Tuesday.  10th March, 2009. 

According to our “SOON2B” PM and the current DPM/FM who just announces the “Proposed Mini Budget Stimulus Package” for the next two years, 

“The government is confident that the strategies and measures outlined in this stimulus package are comprehensive to prevent our economy from slipping into deep recession.

“We cannot depend on ‘orthodox’ economic recovery policies. We must be bold in formulating innovative approaches to deal with the crisis.”

Four thrust Stimuli were proposed and I have picked the Second Thrust Stimulus for mentioning here. In my previous article on Bonds, so here the government seem to have “heard” us and have proposed “Government Savings Bonds” to further increase the income of the rakyat.  

SECOND THRUST: EASING THE BURDEN OF THE RAKYAT, IN PARTICULAR THE VULNERABLE GROUPS

Government Savings Bonds

36. To further increase income of the rakyat, the Government will issue syariah-compliant Savings Bonds amounting to RM5 billion this year. The bond will have a maturity of three years, with an annual return of 5% and will be paid quarterly to bond holders.

 

Apart fron providing an additional savings instrument to the rakyat, the bonds will provide holders with additional income. Bondholders will receive additional income of RM250 million a year. The bonds are available to all citizens aged 21 and above, with a minimum investment of RM1,000 and a maximum of RM50,000.

 

MPOV : “Kudos” to Datuk Seri Najib for a Comprehensive Mini Budget Stimulus and my sincere hope that with this “Proposed Mini Budget”, our Country will not fall into deeper recession !  Thanks to Datuk Seri Nazir Razak too for I acknowledge your contribution to this “Mini Budget” and here’s a dedication to you : http://www.youtube.com/watch?v=e7HPqi5uVeo&feature=related 

 ”Blood is thicker than Water” !   “THUMB’s UP” to you Guys !

  

 

It has long been generally acknowledged that Government Bonds represent one of the safest if not “the safest” instrument of investment till today after the “Employees Provident Fund” or the mandatory Pension Fund as was refer to by other name. While it was acknowledged but it has not been a popular instrument of investment to the retailers back then as to them, the rewards from equities far out weights the returns from investments in bonds then. Times are different now as the more investor-minded consumers and retailers (investor savvy individuals) are turning more risk conscious rather than adverse and have turn to the more secure and guarantee bond market (Government issued Bonds and other secure Islamic instruments) for dividends and incomes.  

Listed below is one of this type of investment instrument for you, the readers perusal ; especially in such times of uncertainty where making your hard earned money to work for you is also uncertain and no guarantees !       

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 5% Interest Rate Bond Simpanan Merdeka - (By Bank Negara Malaysia)
 
Bond Simpanan Merdeka 01/2009 amounting to RM1 billion will be issued by Bank Negara Malaysia on 18 March 2009 and sale period is 18 February to 17 March 2009.

Bond Simpanan Merdeka 02/2009 amounting to RM1 billion will be issued on 4 June 2009, and sale period is from 4 May to 3 June 2009.
Bon Simpanan Merdeka bond is scrip less and based on Shariah principles. It is opens for Malaysian citizens who are 56 years and above. The bond would also be offered to Malaysian citizens who are retired on medical grounds regardless of age.

The bond is opens for sale from 18 February to 17 March 2009. The bond, which has a 3-year tenure, offers a return of 5 per cent per year and provides the flexibility for early redemption before the maturity date.

The minimum investment is RM1,000 and maximum of RM50,000 per investor and applies to aggregate holdings per investor for the two series of Bon Simpanan Merdeka issued in 2009. Bon Simpanan Merdeka 01/2009 can be subscribed at all commercial banks, including Islamic banks, Bank Kerjasama Rakyat Malaysia Berhad, Bank Simpanan Nasional and Bank Pertanian Malaysia Berhad. The profit payments will be made on a monthly basis through the bondholders’ accounts with their agent banks.

If you or your family members are eligible for this bond with a 5% return rate, probably you can consider this bond if you have your cash deposited in the bank fixed deposit account to earn interest. You can contact Bank Negara Malaysia TELELINK at 1300 88 5465 for further information.

 

List of Agent Banks of Bon Simpanan Merdeka 2009

RM 1 billion Bon Simpanan Merdeka 2009 by Bank Negara Malaysia that offers 5 % interest will open for selling from tomorrow 18 February 2009 till 17 March 2009. This bond is for Malaysian citizens who are 56 years old and above or Malaysian citizens who are retired on medical grounds regardless of age.
Orders for the bond may be placed at all branches of the following financial institutions:

Commercial Banks

Affin Bank Berhad
Alliance Bank Malaysia Berhad
AmBank (M) Berhad
Bangkok Bank Berhad
Bank of America Malaysia Berhad
Bank of China ( Malaysia ) Berhad
Bank of Tokyo-Mitsubishi UFJ ( Malaysia ) Berhad
CIMB Bank Berhad
Citibank Berhad
Deutsche Bank (Malaysia) Berhad
EON Bank Berhad
Hong Leong Bank Berhad
HSBC Bank Malaysia Berhad
J.P. Morgan Chase Bank Berhad
Malayan Banking Berhad
OCBC Bank ( Malaysia ) Berhad
Public Bank Berhad
RHB Bank Berhad
Standard Chartered Bank Malaysia Berhad
The Bank of Nova Scotia Berhad
The Royal Bank of Scotland Berhad
United Overseas Bank ( Malaysia ) Bhd.

Islamic Banks

Affin Islamic Bank Berhad
Alliance Islamic Bank Berhad
AmIslamic Bank Berhad
Asian Finance Bank Berhad
Bank Islam Malaysia Berhad
Bank Muamalat Malaysia Berhad
CIMB Islamic Bank Berhad
EONCAP Islamic Bank Berhad
Hong Leong Islamic Bank Berhad
HSBC Amanah Malaysia Berhad
Kuwait Finance House ( Malaysia ) Berhad
Maybank Islamic Berhad
OCBC Al-Amin Bank Berhad
Public Islamic Bank Berhad
RHB Islamic Bank Berhad
Standard Chartered Saadiq Berhad
 
Development Financial Institutions

Bank Kerjasama Rakyat Malaysia Berhad
Bank Simpanan Nasional
Bank Pertanian Malaysia Berhad (Agrobank)

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Malaysia Employee Provident Fund (EPF)

Dividend Rate Since Year 1983

 

Do you know the EPF dividend rate since year 1983 ?

The information is as below :

Year                 Dividend

2007	5.8
2006	5.15
2005	5
2004	4.75
2003	4.5
2002	4.25
2001	5
2000	6
1999	6.84
1998	6.7
1997	6.7
1996	7.7
1995	7.5
1988 - 1994	8
1983 - 1987	8.5

The return rate is higher than the fixed deposit rate but it seems lower than the Amanah Saham Wawasan (ASW 2020) and Amanah Saham Malaysia (ASM). You are able to invest these two schemes via EPF account. Do think of it if you do not know about it, based on the statistic, these two schemes provide higher return rate.

 

ASW 2020 and ASM Dividend Rate Comparison

 

ASW 2020 and ASM Dividend Comparison Chart

 

This is the latest PNBunit trust Amanah Saham Wawasan 2020 and Amanah Saham Malaysia dividend rate comparison chart. ASW 2020 announced the 7% dividend of Amanah Saham Wawasan 2020 for the year of 2008. The dividend rate is 0.8% lower than ASM 7.8%.

 

 

It seems that the maximum unit trust dividend rate from PNB for the ASW 2020 and ASM is 8 percent based on the past few years statistic. However the dividend rate is still higher than the fixed deposit rate. It is still wise invest in this fixed price unit trust scheme from PNB.

 

Amanah Saham Wawasan 2020 (ASW 2020) Dividend Rate Since year 1999

 

Year - Dividend

 

2008 - 7.00

2007 - 8.00

2006 - 6.80

2005 - 7.10

2004 - 7.00

2003 - 6.60

2002 - 7.25

2001 - 7.25

2000 - 8.80

1999 - 10.20

 

Amanah Saham Malaysia (ASM) Dividend Rate Since year 2001

 

Year - Dividend

 

2008 - 7.80

2007 - 6.80

2006 - 6.75

2005 - 7.20

2004 - 7.00

2003 - 6.60

2002 - 7.00

2001 - 7.80