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Showing posts with label equities. Show all posts
Showing posts with label equities. Show all posts

Tuesday 2 October 2018

Buy and sell stocks online


Rakuten Trade: Fully Online Trading Platforms

 

Rakuten Trade is Malaysia’s first digital equities broker


FOR the first time, trading on Bursa Malaysia can be done completely online. No more having to go through a dealer or making a trip the bank to open an account.

Investors can now open an account within two hours, top up available funds via bank transfer, trade instantly and have access to real time market price feeds – all the functions of a traditional broker except it is completely online.

If you are ready to start investing, it’s pretty simple to get going. Ordinarily, you would need to engage a licensed broker to buy and sell stocks. But not with Rakuten Trade, which has been operating in Malaysia for more than a year as the country’s first fully digital equities broker.

Rakuten Trade Sdn Bhd, a joint venture company of Kenanga Investment Bank Bhd and Japan’s Rakuten Securities Inc, was named fintech company of the year at the Malaysia FinTech Awards 2018 in March.

Rakuten Trade has already activated more than 18,000 accounts on its platform of which more than 70% of the account holders are below the age of 40.

“Rakuten Trade has become popular with investors especially first-timers to the equity broking market, which make up 46% of the total client base,” says Rakuten Trade managing director Kaoru Arai.

“Our all-in-one seamless trading platform makes it appealing to this new breed of investors who are more digitally inclined and prefer to execute their trading ideas end-to-end on their own.”

How Rakuten Trade works


The Rakuten Trade business model is premised on six value propositions that are complemented by aggressive marketing efforts that combine local insights with Japan’s best practices.

Its value propositions are as follows:

Online account opening and approval within two hours

> No hardcopy paperwork required.
> No physical visit to the branch.
> Credit/debit card part of the verification process.
> Mobile-friendly account opening page.

Japanese cutting edge mobile trading platform

> Unique platform compared to existing brokers’ mobile trading sites.
> Indices and stock prices are available for free and are not exclusive only to Rakuten Trade customers.
> Additional features available exclusively for Rakuten Trade customers.

Competitive brokerage rates

> The lowest brokerage rates in town.

Financial information

> Research reports derived from the Rakuten Trade research team.
> Hot picks for the week presented in easy to understand formats.
> Short and to the point in the form of a one-page report or 30-second YouTube video.
> Market information available to all (delayed) and live market feeds for Rakuten Trade customers (powered by Thomson Reuter).

Investor awareness and knowledge resource platform

> Knowledge and trading ideas are shared through our seminars, webinars, social influencers.

Rewards ecosystem

> Rakuten Trade customers will be rewarded with RT points that can be converted into points from Malaysia’s top three leading loyalty providers.
> First of its kind in Malaysia to successfully combine AirAsia BIG, B Infinite by Berjaya Group and BonusLink under one umbrella.

Choice of account


Rakuten Trade currently offers investors the choice of two accounts – Cash Upfront and/or Contra Account.

Cash account

> Allows you to trade based on available cash now.
> You will always know your actual cash/portfolio position.
> Available cash balance will earn 2.5% interest per annum.

Contra account

> Allows you to trade more than the money you have in your account.
> Maximises your trading exposure by offering shares as collateral.
> Available cash balance will earn 2.5% interest per annum.
> Settlement of transaction within three days after the transaction (T+3).

If you already purchase airline tickets, electronic gadgets, clothes or even groceries online without any physical intervention, why not trade online?

To learn more about trading online, go to www.rakutentrade.my

Source: TheStaronline

Monday 21 March 2016

Foreign funds comeback, rising interests in Malaysian properties and equities

Foreign interest in Malaysian real estate picks up: Knight Frank


KUALA LUMPUR: Foreign investors' interest in Malaysian real estate, particularly commercial property, is picking up due to the weakened ringgit, said Knight Frank Malaysia Sdn Bhd.


"What we are noticing is that given the ringgit is currently at one of its lowest (levels) in the last many years, interest in Malaysian real estate is actually now coming back because people feel there is upside not only in terms of capital value appreciation but also the fact that the ringgit will move back possibly to better levels. We are certainly seeing this," its managing director Sarkunan Subramaniam told reporters at a briefing on Knight Frank's The Wealth Report 2016 yesterday.

Executive director James Buckley said it has been seeing interest from the Middle East and the US who are typically opportunistic investors attracted by the currency play here which, combined with the slightly subdued property market fundamentals, makes it a good time for them to enter the market.

"I've got two significant groups coming this week ... one from the US, one from Japan. It's a regular basis now and has been picking up from last year. A lot of them are doing initial trips to understand the market a bit better. They are really focused on commercial investments so the office market, retail market and some are interested in hospitality assets as well," he said.

Buckley said in the past, foreign investors investing in Malaysia were typically from Japan and the growing interest from the US is surprising as the Malaysian market is small compared with the US market.

He said these investors are attracted by the currency and the slight oversupply of office space in Kuala Lumpur.

"It is a good time for them to negotiate some good deals here," Buckley said, adding that most of the foreign interest in Malaysia come from Korea, Japan, Singapore and the Middle East.

Meanwhile, the trend among local property investors is also changing, with interest moving from office space and agricultural land to office, retail and hospitality assets. However, residential property remains the core real estate investment for Malaysians.

"In the global context, interest in commercial property is growing quite strongly. What came out of The Wealth Report is that 47% of UHNWIs (ultra high net worth individuals) are expecting to increase their allocation in commercial property. In the Malaysian perspective, we do see a gradual rise in the interest in commercial property. Particular popular choices for Malaysians are office and retail investments, and they are looking to increase their exposure to these assets over the next 10 years," said Buckley.

He said there is a misconception that investing in commercial property is more complicated while some feel they lack experience investing in this sector but interest is picking up as investors are becoming more familiar with the market and understand better the benefits of investing in commercial property.

The report showed that Malaysian high net worth individuals (65% of survey respondents) have increased their asset allocation to residential property.

Moving forward, 65% of Malaysian survey respondents said they will increase asset allocation to residential property in the next 10 years.

In terms of property purchases this year, 39% of Malaysian UHNWIs said they are considering residential purchases. This is more than 29% of global UHNWIs who intend to buy residential property this year.

On average, Malaysian UHNWIs own more properties (4.7) compared with the global and regional average of 3.7 and 3.92 respectively. As for overseas investments, the top three locations for Malaysian investors are Australia (Melbourne), the UK (London) and Singapore.

Bulls making a comeback


Foreign funds are putting money in emerging markets


HUMAN beings have a natural tendency to fear heights – it’s a natural survival instinct which worked well in the wilderness and in the outback, but one which severely plays against us when it comes to the stock market.

Seven years ago, back in early 2009, these were some of the top financial headlines in the US:

> Georgo Soros says US banks ‘basically insolvent’

No one knew it then, but the Dow Jones was about to embark on a seven-year bull run and would gain some 92% over that period. Riding along was the FBM KLCI, which gained 85% over the same period.

For sure the ride has been bumpy and riddled with sharp corrections. But for investors who held on to their stocks, they would have been rewarded with handsome returns.

For any investor invested in the market – volatility will always be there. But as long as they are able to endure the frailty and fluctuations of the market, the long-term rewards historically outweigh the short-term fickleness.

We have heard it many times before – the best time to own stocks is when sentiment is at its worst,

This was especially apparent in early 2009 when the US economy was on the brink of a banking collapse, In those dark days, there were more forecasts of Black Mondays than predictions of light at the end of the tunnel.

Eng: ‘The market has had a good run since January.’
Eng: ‘The market has had a good run since January.’

The stock market, as always, had a mind of its own. Despite the proclaimation of dooms and the fall of many American banks, the Dow was heading almost on a straight upward trajectory by mid-March 2009. 

Sir John Templeton said: “Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.”

That was true seven years ago, 50 years ago, and definitely just as true today.

Logically speaking, what comes down must go up.

Earnings can still be nasty, but doesn’t the market always behave a year forward. At the heart of it all, the market is made up of buyers and sellers. All it takes are a few buyers during a down period to sniff out an opportunity, and suddenly, the market is edging upwards.

It’s the same story with oil prices. Do not expect the coast to be completely clear – for example no more excess inventories, oil demand significantly outpacing supply or the Organisation of the Petroleum Exporting Countries (Opec) deciding to cut production by 50% – before we see oil prices moving up.

By the time these signs are crystal clear, oil prices have made new highs months ago.

In any case, last week the International Energy Agency (IEA) said that oil prices had bottomed out due to US and other output cuts outside the Middle East-dominated Opec.

The US rig count fell for a 12th straight week last week to a total of 386, its lowest since December 2009 as drillers continue to slash capital expenditure.

Zulkifli: ‘These are still early days of a recovery. People are still sceptical ...’
Zulkifli: ‘These are still early days of a recovery. People are still sceptical ...’

The problem now is that after a seven-year run, investors are getting nervous. Investors have mostly been in a flux wondering where the market is heading. Most investors are waiting for the crash to come. They talk about a sluggish economic outlook, falling earnings, recessions in commodity-heavy nations, slowing growth in China, negative interest rates, the end of quantitative easing in the US, the UK (potential Brexit) and flatter yield curves. 

Has the market stalled and lost some of its stamina? With the expectation only of mediocre growth and low yields, is it time to sell stocks?

Behind the scenes, some under-appreciated indicators are starting to show some light.

First of all, the ringgit has been strengthening – a reflection of foreign money coming back to Malaysia. It strengthened 0.6% this week to RM4.09 against the greenback.

Last week, foreigners bought listed equities amounting to RM1.04bil on Bursa Malaysia, higher than the RM972.2mil acquired in the preceding week. To date, there are some 12 consecutive weeks of total net inflows and brings cumulative year-to-date foreign purchases to RM1.6bil.

For the entire 2015, there was a net outflow of RM19.5bil.

Meanwhile the FBM KLCI closed at 1,703.19 on Thursday, which is also its six-month month high. The seven-month high is 1,744.19 recorded on Aug 3, 2015.

From a charting perspective, a recovery in the FBM KLCI appears to be playing out.

“We reiterate our view that KLCI must close above 1700 levels convincingly to sustain the ongoing rally from 1600, with key upside target at 1710 (March 7 high), 1727 (Oct 19 high) and 1740 (200-day simple moving average) levels. Failure to close above 1700 will see the index continue its short-term congested range-bound consolidation within the 1660-1700 territory,” says Hong Leong analyst Nick Foo.

Etiqa Insurance & Takaful head of research Chris Eng, on the other hand, feels that the market is toppish for now.

“The market has had a good run since January. It may have a few more legs to run, but come April, it will be earnings results in the US, and in May, it will be earnings result in Malaysia. We aren’t expecting very positive earnings coming out, so market may start falling again by April,” says Eng.


From a trading perspective, he would ask clients to sell into strength.

On a fundamental perspective, however, he isn’t expecting a recession, well at least not this year. He would still advice investors to stay invested in equities.

“We are expecting some weakness in the market come middle of the year. That would be a better time to buy. We would identify that weakness and look for opportunities then,” says Eng.

MIDF Research has been recommending its clients to start buying since the start of the fourth quarter last year.

“These are still early days of a recovery. People are still sceptical, especially retail investors. But we have been tracking the money flows, and foreigners have been net buyers every single day of the 14 trading days so far this month, which is a phenomenon not seen in more than two years” said Zulkifli Hamzah, head of MIDF Research.

According to Zulkifli, the Malaysian equity market is benefiting from a tide of global liquidity flowing into Asia. Some of the money is actually global funds in China, being reallocated to other Asian markets as the outlook in Asia’s biggest economy is challenging.

“In the bond market, Malaysia started to look attractive to the foreigners as early as September last year. The low global interest rate environment, with negative rates in some countries, has made local yields very attractive indeed. That is reinforced by the depressed Ringgit,” said Zulkifli.

“Overall, we are positive on the market. Sceptism of the market has been partly due to the relatively restrained climb in the index. But this has been due to selling by local funds, which are understandably taking the opportunity of the market’s upward march to realize their profits. We also do not expect to see such a steep incline in the indices because of rotational forces at work,”

“Global investors are not going to come in and buy blindly across the board although the Ringgit is seen as undervalued. They will be selective and buy only those stocks that they see value. We believe the current uptrend has legs. However, there are potential potholes which may cause temporary retracement, at which point it would be opportune to enter the market,” said Zulkifli.

He added that the changing of guard in Bank Negara and the Sarawak state election would be closely watched by foreigners.

No rate hike is good for Malaysia

On Wednesday, Federal Reserve officials lowered their view of the economy and said they likely won’t raise interest rates as swiftly as they had previously anticipated as there are lingering risks posed by soft global growth and financial-market volatility.

Policy makers left short-term interest rates steady and said they would raise their benchmark rate just twice this year, after an initial increase in December 2015, down from the four they previously predicted.

Last week European Central Bank (ECB) chief Mario Draghi announced a much bigger and wider-ranging stimulus package than anyone had expected

He increased his purchases of financial assets by a hefty 20 billion euros per month (from 60 billion-80 billion euros), pushed interest rates lower into negative territory (by 10 basis points), improved financing for the banks and announced his intention to buy investment grade corporate bonds.

In other words, the ECB will pay banks 0.4% to lend. This puts the eurozone in a negative interest-rate situation.

This move inevitably makes Malaysia more attractive.

Recessionary pressures and low interest rates in the US are a boon for emerging markets like Malaysia. This is further helped by economies like Japan and China which are continuing to cut interest rates to kickstart their economies.

With US and eurozone interest rates having stayed in negative territory for so long, and doubts on future rate hikes, investors are getting desperate for yields.

So they come to Malaysia, where the average yield on a 10-year dollar bond is higher by some 140 basis points than a similar US Treasury 10-year note.

Also, after a torrent of bad news, some confidence is returning to Malaysia.

Last month, Fitch Ratings affirmed Malaysia’s long-term foreign and local-currency issuer default ratings (IDRs) at A- and A respectively, with stable outlook.

Malaysia’s senior unsecured local-currency bonds were also affirmed at A while the country ceiling was affirmed at A and the short-term foreign-currency IDR at F2.

The three rating agencies – Moodys, S&P and Fitch Ratings – have given the same credit rating of between A3 and A- with stable outlook for Malaysia.

Bank Negara also announced that Malaysia’s economy grew by 4.5% in the final quarter of last year, which was better than expected. This brings the full-year gross domestic product growth to 5% from 6% in 2014.

The recent stability in the ringgit was also a positive factor for foreign investors, and this has taken away some of the foreign exchange risk of investing here.

The ringgit is the best-performing emerging-market Asian currency over the past three months, having been one of the worst performers last year. Year-to-date, the ringgit has gained 2.05% against the US dollar.

The economy is on a better footing now that the Government has revised its budget based on oil prices between US$30 and US$35, and the country is on track to achieve its targeted budget deficit of 3.1%.

by Tee Lin Say The Star

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Door opening in emerging markets

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Monday 24 November 2014

Financial planning is all about investing


LOTS of people shy away from financial planning because they think they may be pressured into investing. And when you think investing, what comes to mind are horror stories of people who lost their life savings during the Asian financial crisis and Dot Com Bubble.

We hear tales of greed and chasing the hottest sexiest investment themes that has led them down the path of poverty and for some great debt due to leverage.

Admittedly, in the wealth management business, investments do form a large part of conversations that happen between ourselves and our clients.

For the most part, people speak to financial planners or wealth managers about how to make their money grow faster so they can meet their goals.

How much return can I get? What can I get if I invest in equities? How about properties? How can I start investing in currencies?

When people engage in a conversation about investments, inevitably, we get seduced by the quest to find the highest yielding asset. We steer into instruments we are not familiar with, drawn by the allure of high headline returns.

Think dotcoms. Think gold investments. Think land investments. Think bitcoin. Not necessarily bad investments but the basic concept of risk and diversification fall by the wayside as we chase returns.

But, step back for a moment.

Are you asking the right question? Is financial planning only about finding the next best investment?

While investing will likely play a key role in your financial plan, there are a lot more questions that need to be answered before you can choose the right investment, or if you even need to invest aggressively.

First question, how much do you need? Second question, when will you need it? Third question, how much have you set aside or are prepared to set aside? Last question, what returns are you going to get?

So say, I would like to buy a property in five years, of which I plan to make a downpayment of RM50,000. I have currently set aside RM10,000. I can currently save RM500 monthly.

Let’s assume I have no experience investing and decide to place it in fixed deposit at 3% per annum. Doing my maths, after five years, with interest compounded, all this adds up to only RM43,000. You are RM7,000 short.

In such an example, most people approach an adviser to find out what could yield them higher returns. In the above example, any misadventures in your investments could possibly set you back in your acquisition of your next property.

What if this was your children’s education? You may not want to risk your child entering university two years late. These are things your adviser needs to know as there other alternatives.

Financial management is very much about balancing between these four requirements. While getting higher returns so you can meet your goal is one way, it’s not the only way! You have other options. So, let’s go back to the four questions.

Firstly, you could buy a cheaper property with RM43,000. Alternatively, you could wait another year to purchase that property, giving you more time to save up. Or, you could increase your monthly savings to RM600 at 3% per annum. Lastly, consider investing in something that yields you 7% per annum. So, really, out of four options, only one is about investing.

For the most part, investing plays quite an essential role in most people’s portfolio. However, before you even have that discussion, think about the goals you want to achieve and whether investing is required and what kind of investment performance is needed.

By Ong Shi Jie
For the most part, investing plays quite an essential role in most people’s portfolio. However, before you even have that discussion, think about the goals you want to achieve and whether investing is required and what kind of investment performance is needed, says Ong.

Ong Shi Jie (CJ) is head of wealth management, OCBC Bank (M) Bhd.

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