ATIC Stockpicking for 2010 by Pong Teng Siew (Jupiter Securities0

Well, the most informative talk at ATIC was Mr Pong Teng Siew's on 'Stockpicking in 2010'.

The gist of the talk:
1 The stockmarket, according to the economic metrics that Jupiter follows are still pointing to the bull market being intact. Measures like M1/nominal GDP, M1 growth, still point to juice still left in the bull.
2 Historically, 4 periods in the past where the US economy went into recession, the subsequent recovery in the US economy has seen a 3 to 4 year secular bull market emerge. We are about 1 year into this phase for the stock market.
3 The market will be in a range, index wise but there will be thematic sector plays, basically rotation.
4 Sectors to outperform: healthcare (Faber, KPJ, rubber glove manufacturers (Supermax, lateexx), consumer related (HAIO, Tan Chong, Zhulian, Daibochi, Cocoland, Yee Lee), technology (Unisem, GUH, Notion V Tech, but watch the book/bill ratio, sell when it exceeds 1.2 for semiconductor stocks), geographic ie Sarawak (CMSB, HSL, Naim)
5 Secotrs to underperform, GLCs (POS, MRCB, UEMLand, Airport), plantations (Sime Darby, KLK, IOIcorp but Genting Plantions are worth considering), Steel (Masteel, Choo Bee, Kinsteel, Line Industries) Property and construction.(exception is Paramount Corp)

Oh and there was the inevitable hard sell on trading online with Jupiter Securities. Commission minimum RM10, 0.1% for RM10K to RM50K value traded and 0.05% for RM50,000 above. If sign up at ATIC, then 1 month commission free trade.

Omar Marican at the keynote address highlighted the CME strategic relationship with Bursamalaysia Derivatives... but the mention is only on USD CPO futures contract, how about the FKLI futures, will it be available on the whole globex network, and cross trading: emini S&P500, mini Dow, Soybeans, Live cattle or FX futures etc all of which are A1++ contracts traded on CME. Will Malaysian brokers have access to trade these products? On USD CPO this is a commodity traded in FX currency (USD), will BNM clamp down on it, just as they are doing this clamping down on fx trading? These are questions that many asked, no answers yet, but watch this space.