Market Outlook 2023

 Here is the FULL list of market outlooks for 2023 from the world's largest investment banks and asset managers

Goldman Sachs https://lnkd.in/eKzF_2K4

J.P. Morgan https://lnkd.in/eHb6-622

Morgan Stanley https://lnkd.in/e2nAMjmM

Bank of America https://lnkd.in/e8XFD8TW

BlackRock https://lnkd.in/eYxCBRGj

HSBC https://lnkd.in/eNfBiJvH

Barclays https://lnkd.in/eRT4dsFY.

NatWest https://lnkd.in/euftbUw6

Citi https://lnkd.in/eXwA-Y4X

UBS https://lnkd.in/exudCU6V

Credit Suisse https://lnkd.in/e4CEK5NZ

BNP Paribas https://lnkd.in/ec4hWEdm

Deutsche Bank https://lnkd.in/eAWCSV_7

ING https://lnkd.in/eNpdmVH8

Apollo Global Management, Inc. https://lnkd.in/ewwq_62M

Wells Fargo https://lnkd.in/euMkQnKE

BNY Mellon https://lnkd.in/ezMfVgND

Fidelity International https://lnkd.in/eJwK6tVx

Lazard https://lnkd.in/eku-xhqp

To apply for a trading account, please fill in the form below, will contact you asap

https://forms.gle/rRRKohWv6qp7ueuK8

Difference between Direct trading account and Nominee account

 Hi reader,

Happy New Year 2022. When you are new to shares market, the first thing you may want to do is to open a share trading account. Basically , there are 2 different type of trading account in market which are direct trading account and Nominee account. Please do check before proceed to account opening. I have compiled the main difference features of both type of account as below for your reference.

If you are interested to own a  share trading account, please click and fill in the form and we will get back to you soonest possible. Thank you.

 

SMF - Comparison of Share Margin Financing between Maybank, CGS-CIMB & RHB

Hi Reader,

Please refer to the table below for the comparison of share margin financing facility provided by Maybank, CGS- CIMB and RHB.

If you are interested to know more about SMF , don’t hesitate to fix an appointment with us. We’ll get back to you asap.😀

Thank you.

SMF - How do share margin financing work and how to calculate

Hi Reader, 

You refer to the earlier post to have better understanding about Share margin financing (SMF.
This post will show you the calculation of SMF

Margin Multiplier

There is a multiplier on the value of the pledged collateral which defines the maximum financing amount.

Eg. There is 2.5x financing for pledged FD, thus by pledging RM100k FD, investor will get RM250k trading limit.

 

Margin of Finance (MOF)

Margin of Finance = (Total Outstanding - FD amount) / Total share value*

Let say, the approved MOF is 60%, with RM100K pledge FD, you can purchase a shares at RM250K

 MOF = (RM250K-RM100K)/RM250K
          =  60%

 

Scenario 1 - Total Share Value increase to RM300k

MOF will reduce to 50% which means investor can afford to purchase more shares as long as maintains within the approved MOF of 60%.

MOF = (RM250K-RM100K)/RM300K

          =  50%

 

Scenario 2 - Total Share Value decrease to RM200k

MOF will increase to 75% which triggers a margin call. Investor will have to top up cash or sell some shares to bring the MOF back to 60% to avoid force selling action by bank

 MOF = (RM250K-RM100K)/RM200K

          =  75%

If you are interested to know more about SMF , don’t hesitate to fix an appointment with us. We’ll get back to you asap.😀

Thank you.

SMF - What is Margin Call ? How could an investor respond to a Margin Call?

 

What is Margin Call?

A margin call is triggered when the investor’s equity, as a percentage of the share portfolio value, falls below the account's maintenance margin requirement.

This is a request of the Bank to the client to top up the Margin to meet the maintenance margin requirement.  When a margin call is triggered, investor is usually given  3 market days to regularise. Otherwise, will initiate the force selling.

However,  if the margin of finance (MOF) exceed the approved force selling level, investor will have to satisfy the margin call on the same day, otherwise the bank will at liberty to set off any cash and sell/realise any collateral held by the bank.

Eg, Let say the MOF is up to 60%, the margin call is triggered when MOF  is > 72% and given 3 market days to satisfy the margin call. However, the force selling -margin call is triggered if MOF is >85% or at the expiry of the margin call notice, whichever is earlier.

How could an investor respond to a Margin Call

1) Depositing cash in the brokerage account to top up the value

2) Selling margined securities to meet the account's maintenance margin requirement

3) Depositing new shares in the account to increase the collateral value without increasing the loan amount 

If you are interested to know more about SMF , don’t hesitate to fix an appointment with us. We’ll get back to you asap.

Thank you.

SMF - Ways to manage margin account risk / How to avoid margin call

Share Margin Financing (SMF) could a great tool for wealth creation in the stock market. However, you have to be well aware about the risk you might face when enter the position.

Leverage risk
Higher returns are assured by taking greater risks, thus it could be a double-edged sword. Margin can magnify your losses just as dramatically as it can boost returns. 

Revision the value of the collateral securities
The broker may at any time revise the value of the collateral securities after the estimation of the risk, based, for example, on market factors. If such revision of the collateral securities  resulted a margin account falling below the minimum margin requirement, the broker will immediately issues a "margin call", requiring the investor to bring the margin account back into line. 

Risk of being unable to meet a margin call
You are require maintain a specific percentage of equity in your account as specified by the broker. If margin of finance falls below the minimum equity maintenance requirement, your account may incur a margin call. This means you will need to add cash or securities to your account to increase your equity. If you do not act promptly, your brokerage firm may sell securities you own without notifying you, in order to increase the equity in your account. You are not entitled to an extension of time on a margin call. 

 

How to avoid a margin call

Leave cash cushion in the account

Instead of investing all the money in financial products, the investor can set aside some cash deposits to help reduce the likelihood of a margin call, position your portfolio to withstand significant fluctuations in the overall value of your collateral without falling below your minimum equity requirement

 

Invest in assets with significant return potential
The securities you buy on margin should, at a minimum, have the potential to earn more than the cost of interest on the loan 

Set a personal trigger point
Investors should set their own maintenance margin, which should be above the broker’s minimum required balance. Keep additional financial resources in place to contribute to your margin account when your balance approaches the margin maintenance requirement. 

Pay interest regularly

Interest charges are applied to the investor's account every month with no specific repayment schedule. The investors is advisable to make regular interest payment to avoid  loan accumulation  and keep the loan balance in control 

Protect your capital

When the market is going against your trading/investment plan, you may consider to protect your capital by selling off some positions.

If you are interested to know more about SMF , don’t hesitate to fix an appointment with us. We’ll get back to you asap.

Thank you.

 

 

 

How to do e-subscription for right issue (step by step guide)

 

Hi reader, 

Please refer to the step by step guide below to do e-subscription for Right issue

Sign up as user of TIIH Online (for individual shareholder)

1.    1. Using your computer, access the website at https://tiih.online

2.   2. Sign up as a user by completing the registration form, registration is free

3.    3. Upload a softcopy of your MyKad (front and back) or your passport

4.     4. Administrator will approve your registration within one to two working day and notify you via email

5.     5. Activate your account by re-setting your password

6.     6. You may also refer to the video for step by step guide.

https://youtu.be/REZPCCuvPTo

 Notes:

(i) If you are already a user of TIIH Online, you are not required to sign up again.

(ii) An email address is allowed to be used once to register as a new user account, and the same email cannot be used to register another user account.

 

Proceed with e-Subscription (for individual shareholder)

1.     1. After the release of the Abridged Prospectus (“AP”), Notice of Provisional Allotment (“NPA”) and Right Subscription Form (“RSP”), login with your user name (i.e. e-mail address) and password

2.     2. Select the corporate event: “AAGB right issue”

3.     3. Read and agree to the Terms & Conditions and confirm the Declaration

4.     4. Select the CDS account number that you wish to subscribe for the Rights Shares

5.     5. Indicate the number of Rights Shares you wish to subscribe and number of Excess Rights Shares you wish to apply

6.     6. Review & confirm your e-Subscription

7.     7. Proceed to pay for the amount of subscription, RM10 of stamp duty and RM5 of handling fee for each e-RSF/CDS account through the online payment gateway (FPX and Maybank2u)

8.     8. Print payment receipt and e-RSF for your record

T    Thank you.