Happy New Year!

 1 Jan 2022

Dear Fellow Investor,

On Friday 2 major uncertainties were removed from the market when the cap on stamp duty although at a higher level was reinstated and tax on income from overseas was suspended until 2026.  These policies benefit our PGWA account holders who earn dividends in overseas markets. The policy also benefits active stock traders as it lowers trading costs.

Market reaction was positive as the KLSE rose 23.92 points to 1567.53 decisively rising from the 1500 support formed in November 2020.

This could be a catalyst for foreign funds and local institutions to pick up quality beaten down shares which are at attractive valuations.

Some of us are holding Mapletree North Asia Trust which holds Festival Walk Property in Hong Kong. We bought it  during panic selling when the protestors burned down the Christmas tree in the Festival shopping mall.  It has languished due to the Covid and negative sentiment towards China and Hong Kong but has since been slowly recovering. They announced a merger with Mapletree Commercial Trust  one of the largest commercial property Reits in Asia.  Unit holders will receive a premium of 7.6 % to the 1.11 price on 27 Dec 2021. DPU will also increase.    

Mapletree is one of the strongest and well known Reit sponsers with quality properties in most Asian markets. Despite the negative Covid and business sentiment they have performed well.  They are making a bet on Hong Kong/Asia/ China recovery by their North Asia Trust merger.

Based on my research the Covid hysteria is lessening with new treatments/ vaccinations/ booster shots and a return to normal. Parking lots are full. Traffic is approaching pre pandemic levels and borders are opening. The Mapletree merger is a vote of confidence in this scenario. They have teams of analysts to access the probability of the success of this venture so we ride with them.   

Happy New Year
Bill

 

Festival Walk Hong Kong

The Democrat party headed by Joe Biden has been spreading fear to gain political control. The symbol of the democrats is the donkey. Thank God in Malaysia we are not caught up in this CNN/ CNBC media whipped up hysteria