Cwyeoh KLCI Stock Analysis: KLCI Stock

PACIFIC & ORIENT BERHAD is a Malaysia-based investment holding company. The Company is also involved in the provision of management services. The Company has four segments: insurance, it, investment holding, and money lending. Other segments include the distribution of consumer goods, the provision of sales and administrative services, and provision of management and privilege cards program services.

The Company’s subsidiaries include Pacific and Orient Insurance Co.Berhad, engaged generally insurance business; O and P Technology Sdn. Bhd. offers information technology services and equipment; Orient and Pacific Distribution Sdn. Bhd. is involved in the distribution of consumer provision and goods of sales and administrative services; P and O Capital Sdn. Bhd., is engaged in money financing, and P and O Technologies Sdn. Bhd., deals in computers, software, and systems.

Just the 4 stocks and shares of DBS, OCBC, UOB, and Singtel take up 41% of the STI. Which means the rest of the 26 make up the 59% of the STI. This once again reinforces the current revelation that I just had from reading my book (I haven’t written a post about the chapter I’m discussing yet).

  • Investment Bankers in the Investment Banking Division
  • Life and health license
  • Approval from the relevant Government Departments
  • What Chongqing’s Declining Growth Rate Tells Us about China’s Slowdown
  • Contribution to provident fund by company
  • Bill Schultheis’ Coffeehouse Portfolio
  • Zakah on investment and casing debts

The revelation is that market-cap-weighted indices tend never to be the best rationale for creating an index of stocks and shares. I believe that the RAFI method personally, although seemingly more technical and less intuitive to the regular trader with seemingly plenty of market voodoo and financial words, are more reasonable and sound than traditional cap-weighted indices completely. That has again prompted me to try to find out what would be the best way forward buying not only the locally listed REITs but also the STI. One of many ways forward on the REIT’s front is of course, to construct my very own personal index.

I am very motivated by this following post talked about by (The) Boring Investor as well as this post by Mr. Breakout, regarding his Ganja Index. Of course, clearly motivated by the RAFI indices which has a brief outline of it rules in this .pdf on pages 14 and on this wiki page.

For Real Estate indices, heir-specific factors of remember that helps them build such an index is Revenues, Total Assets, Adj. Funds from Operations and Dividends averaged over the past 5 years. Of course, of your day at the end, Price needs to be included into the mix also. How fundamentally attractive a secured asset is Regardless, there’s always a price where it no longer becomes a good investment.

A similar procedure can be done for the STI as well. Personally, taking into consideration the huge overweight of the STI to people 4 stocks and shares and the under-representation of the others, I’m clearly in favor of making an index which is not market cap weighted! A fascinating article can here be read.