Cwyeoh KLCI Stock Analysis: KLCI Stock

PACIFIC & ORIENT BERHAD is a Malaysia-based investment keeping company. The Company is also involved in the provision of management services. THE BUSINESS has four segments: insurance, information technology, 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 card program services.

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

Just the 4 shares of DBS, OCBC, UOB, and Singtel take up 41% of the STI. Which means the rest of the 26 constitute the 59% of the STI. This once more reinforces the existing revelation that I just had from reading my publication (I haven’t written a post about the chapter I’m referring to yet).

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

The revelation is that market-cap-weighted indices are likely never to be the best rationale for creating an index of stocks and shares. I think that the RAFI method personally, although seemingly more complex and less intuitive to the regular investor 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. A proven way forward on the REIT’s front is of course, to construct my own personal index.

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

For PROPERTY indices, heir-specific factors of remember that helps them build this index is Revenues, Total Assets, Adj. Funds from Operations and Dividends averaged within the last 5 years. Of course, by the end of your day, Price has to be included into the mix also. Regardless how fundamentally attractive an asset is, there’s always a price where it no longer becomes a good investment.

A similar process can be done for the STI as well. Personally, taking into consideration the huge overweight of the STI to people 4 shares and the under-representation of the others, I’m clearly in favor of creating an index which is anything but market cap weighted! A fascinating article can here be read.