Tuesday, 11 February 2014

Palm oil still around RM2600

with the average palm oil price around RM2500-2600 for the last 2 months, would u expect the plantation stocks to report good earnings in the coming results? They have been beaten down along with the overall market, are they a steal now???

Does this mean a bottom for property stocks?

MAS eases TDSR restrictions

The Monetary Authority of Singapore (MAS) on Monday eased the restrictive Total Debt Servicing Ratio (TDSR) on certain property buyers.

Below is the full statement from MAS: 

The Monetary Authority of Singapore (MAS) has received feedback from borrowers who face challenges refinancing loans for owner-occupied properties which were bought before the introduction of the Total Debt Servicing Ratio (TDSR) rules. MAS has decided to broaden the existing exemption from the TDSR threshold of 60 percent for such loans to ease the debt servicing burden of these borrowers.

Refinancing of owner-occupied property loans 

2. Under the revised rules, a borrower who bought a residential property before the TDSR rules were introduced – i.e. the Option to Purchase (OTP) of the residential property was granted before 29 June 2013 – will be exempted from the TDSR threshold as long as he occupies the residential property that is being refinanced. This is a concession compared to the current rules, which also require that he does not own any other property, or have any other outstanding property loan.

3. The Mortgage Servicing Ratio (MSR) will also not apply to the refinancing of loans for HDB flats and Executive Condominiums (ECs) that are owner-occupied and were purchased before their respective MSR implementation dates.

4. A similar concession will apply with regard to loan tenures, for residential properties purchased before the respective implementation dates for the loan tenure limits. In such cases, borrowers whose loan tenures for their owner-occupied residential properties exceed the current regulatory limits will be allowed to maintain the remaining tenures of their loans at the point of refinancing.
Refinancing of investment property loans
5. The TDSR threshold of 60 percent will continue to apply to the refinancing of all investment property loans. This is to encourage borrowers to right-size their loans and thereby reduce their vulnerability to adverse economic conditions or changes in interest rates. However, MAS recognises that some borrowers may face challenges in right-sizing their debt obligations in the short term; the starting level of debt may be too high and there may be significant costs involved if they had to sell their properties to reduce their leverage.

6. Therefore, MAS will allow a transition period until 30 June 2017, during which a borrower may refinance his investment property loans above the 60 percent threshold, provided he meets the following conditions:

(a) the OTP of the property was granted before 29 June 2013;

(b) the borrower commits to a debt reduction plan with the financial institution (FI) at the point of refinancing; and

(c) the borrower fulfils the FI's credit assessment.

7. The changes are intended to help borrowers ease their immediate debt servicing burdens, while encouraging those who have taken on high leverage on their investment properties to right-size their loans as early as possible.

8. Borrowers should be aware that the current low interest rate environment will not persist indefinitely. When interest rates rise, borrowers will face higher mortgage repayments. Borrowers engaging in refinancing should therefore exercise prudence and review their debt commitments.

9. The revised rules will take immediate effect.

Friday, 7 February 2014

End of correction?

looks like the markets might have bottomed...pls study the charts and take action.

Dow jones....provided it doesn't break the 200 days MA again.

Wednesday, 29 January 2014

beginning of correction

if you think the stocks are cheap now, it might get cheaper still...markets are not done correcting yet. STI 3000 might not hold....watch out for 2900.

When the market sentiment is poor, fundamentals will be ignored(NAV, good financial ratios) and stocks will keep falling until sentiments improve.

Wait for US to finish correcting(might hit 15200....might only hor), then we go in and pick up bargains....though there are already some bargains now.

Save your bullets until after CNY. Happy CNY!!! Huat Uh ! Huat Uh!!!

Tuesday, 24 December 2013

market rebounded??

wah! what an unexpected outcome and market reaction to QE? Fed plans to taper in Jan 2014, the market went down abit and rebounded strongly..perhaps the taper was much less than expected and the market was relieved or Uncle Ben prepared the market well to receive it?? whatever the reasons, there's $$$$ to be make.

by now you should be able to read the TA using the tools I have shared....has the market rebounded(please look at the indicators and draw a conclusion and action plan)?? Dow Jones is making new highs, Will our super laggard STI break new high too...

Thursday, 5 December 2013

Great Singapore Sales ahead.

The Dow is falling , and that affect overall world  market sentiment ...STI is especially vulnerable....it is now at 3101 having broke the last strong support at 3120...markets will be volatile at least for the next 1-2 weeks await FOMC meeting.

take this opportunity to buy some plantation stocks on the bargain...wait for market to rebound first though....Don't spend all...always keep some cash.

Tuesday, 3 December 2013

Palm oil looks like staying above 2600 RM

despite some conerns on the demand side(goggle "Palm oil news" in bloomberg), CPO still stays above 2600 RM on weather concerns(monsoon ends around Feb next year). the impact of wet wether on CPO prices is likely not yet fully priced it yet....people tend to under or overestimate the impact...let's wait and see.