Do you invest in KLCI? Are you investing by buying unit trust or stock directly? I have been investing on both of them. Each of them has its own advantages and disadvantages. KLCI hit bottom at 801.27 on 28 October 2008. And it is 1026.78 on 8 May 2009. Stock and unit trust, which one will perform better?

KLCI result for last 1 year

The benchmark starts from 28 October 2008 until 8 May 2009. Public Mutual Unit Trust has lot of funds. I did some research on them which invest in KLCI. Public Aggressive Growth Fund (PAGF) is the best performer with 38.51% return and Public Index Fund (PIF) is the worst performer with 16.67% return. All the other Public Mutual Funds which invest in KLCI fall between 16.67% and 38.51% returns. This mean that you will get at least 16.67% if you invest in unit trust.

Let’s see the return if we invest into stocks directly.

PBBANK 1295 (PUBLIC BANK BHD) from banking sector was at RM8.20 on 28 October 2008 and RM8.60 on 8 May 2009. It gave RM0.25 dividend during this period. Therefore, total return for PBBANK is 7.92%.

BURSA 1818 (BURSA MALAYSIA BHD) from capital/financial/insurance sector was at RM4.90 on 28 October 2008 and RM7.25 on 8 May 2009. It gave RM0.078 dividend during this period. Therefore, total return for BURSA is 49.55%.

GAMUDA 5398 (GAMUDA BHD) from construction sector was at RM1.40 on 28 October 2008 and RM2.52 on 8 May 2009. It gave RM0.04 dividend during this period. Therefore, total return for GAMUDA is 82.86%.

BAT 4162 (BRITISH AMERICAN TOBACCO BHD) from consumer sector was at RM42.00 on 28 October 2008 and RM43.00 on 8 May 2009. It gave RM0.76 dividend during this period. Therefore, total return for BAT is 4.19%.

GENTING 3182 (GENTING BHD) from gaming sector was at RM3.94 on 28 October 2008 and RM4.98 on 8 May 2009. It gave RM0.04 dividend during this period. Therefore, total return for GENTING is 27.41%.

PETDAG 5681 (PETRONAS DAGANGAN BHD) from oil & gas sector was at RM6.70 on 28 October 2008 and RM7.85 on 8 May 2009. No dividend during this period. Therefore, total return for PETDAG is 17.16%.

IOICORP 1961 (IOI CORPORATION BHD) from plantation sector was at RM2.19 on 28 October 2008 and RM4.36 on 8 May 2009. It gave RM0.03 dividend during this period. Therefore, total return for IOICORP is 100.46%.

There is lot of stocks to invest. Above are just some of them that have positive return. Some of them are still in red colour ~ negative return.

After seeing all of these… Which one is better? Stock or unit trust? For beginner investor, better put more money at unit trust because the fund manager will look after it for you. For those who don’t want to study stock one by one also advisable to invest in unit trust. The risk is higher by investing directly in stocks but the return is better too.

Choose wisely…

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I love to buy plantation stocks in Malaysia KLCI. There are several good counters that really performing well lately. And the good thing about plantation stocks, you can some kind predict their stocks price by looking at crude oil and palm oil price (FCPO). I noticed that crude oil price also hit bottom and starting to recover now.

My friend Jason told me to monitor HSPLANT. I checked it and discovered that HSPLANT has a good dividend yield ~ around 5-8% depend on the price you bought it. And the capital gain easily goes up 50-75% as the 52-week low is RM1.25 with current price RM2.20. Isn’t plantation stock good to invest?

Most of the plantation stocks hit bottom during November 2008. And bounced back at least 50-100% since then. It will keep going up. So what are you waiting for? It’s time to buy more. Now or never…

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The stock markets like KLCI, Straits Times, Hang Seng, Nikkei 225 and Shanghai Composite in the world have been rally for few months. It is a good sign ~ the economy is recovering. However, it has been go up too fast lately. More than 20% in a month.

KLCI result for last 3 months

52wk Range = 801.27 – 1,302.83. Current = 1,023.47. I missed the lowest point. Who know the lowest point? It might go down again, right? Nope. Based on the current situation, it will have a correction ~ maybe small drop to level 970? The sky is not falling.

7 May 2009 is not a good day for Malaysia. This is not the first time and will not be the last time.

If you are an investor, do you dare to invest in Malaysia with uncertain politics?

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I got an email from CIMB Group…

Account Suspension (Urgent)

CIMB ALERT MESSAGE – HIGH-58-02/ID

Dear Valued Customer,

CIMB Aaccount Security Systems (CASS-8/8/9) detected a security “threat” in your account as it was accessed from a blacklisted location. We have suspended your account pending your immediate reactivation for safety reasons.

Reactivate
http://www.cimbclicks.com.my/

Note that inactive accounts will be deactivated in less than 5min for security reasons. We regret any inconvenience caused.

Sincerely,

CIMB Group

My CIMB account has been suspended. What should I do? Just follow the link above to reactivate back, right? Yup. I clicked on the link. Below is what I got…

Do be careful every moment. Bank will not send email to ask you do anything including account activation. So don’t fall into this trick.

Lastly… I don’t have CIMB account. Why did you send this email to me?

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Stock is not a new thing to me. I started to invest in stock market back in year 2006. Waited for 10 years economy crisis cycle since 2006. Plan to put more money in there when economy crisis hit bottom. We can earn more in this situation. Finally, it happened on year 2008…

A new investor like me faced the common issue ~ buy high and sell low. I did lot of mistakes during there years. And it does scare me from entering the stock market. My luck is not so good. The stock price will drop when I buy it and go up when I sell it. See my previous ramblings on this…

IOICORP performance

IOICORP was the first stock that I bought this year. I managed to buy low and sell high. I bought it at RM4.1 and sold at RM4.44 the next 2 days. That’s 8.29% increment. Far more than fixed deposit rate at 2.5% per year. This is the power of stock market. You can earn lot of money in a very short time. Loss money in the same way too.

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