As a result of increased rental & labor cost recently, I did realize that most of the companies in service industry were not doing really well, as we still see those in the retail industry suffered from a lower profit margin and higher overhead expenses.
For property development wise, we saw a softer market condition with lesser new launches in private property market in-spite the fact that the government is pushing hard for more HDB BTO units for the first timers to subscribe. Nonetheless, I believe it is a good sign for long run as the developers may not suffer from "Sudden Jump" in property sales if anything goes wrong. I will treat is as a soft landing for the market to digest the oversupplied items in the market. I also have seen more developers switched their focus on oversea markets.
For plantation sector, I believe there is a slow recovery in ASP as economy moves on. Nonetheless, I believe the increase in price is not as significant as previous. First Resources remains my top pick, but it is now at a higher price range. I still look good on Wilmar longer term as the crushing & palm oil business may recover from losses in long run.
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