Monday, January 1, 2018

Portfolio Review 2017: Portfolio -0.9% vs STI +18.1%

The Straits Times Index ended 2017 18% higher than the start of the year. Carrying over the momentum since the US elections, the index surged during 2017 to end 2017 at 3,403.

The portfolio declined marginally weighed down heavily by the continued decline in the share price of Delfi as well as the fact I had a good deal of cash on the sidelines. Excluding dividends, my portfolio would have lost 2.4%

The biggest percentage loser was KrisEngergy, declining 48.6% in price until the point I disposed of my entire holdings. The company has announced it may go ahead with plans offshore Cambodia and this might result in more cash need. I will be looking at another entry into the stock nonetheless. Delfi was the next biggest percentage loser at -35.6% but its impact on my portfolio was strongest due to its higher dollar value share. I have averaged down on this counter and hopefully it will have upside in 2018. Hong Leong Finance and F&N increased its share price by 27.6% and 23.4% respectively, riding on the secular bull run.

The portfolio cost now stands at 121.5k and I am in the black by 18.1%. I collected 2.3k of dividends and this implies an yield-to-cost of 1.8% which is poorer than the previous year. For CY2018, I intend to inject at most 8.5k into the portfolio to make my cost a round 130k.

I expect the market to top in the coming 6 months before we see a correction and a short down trend. While the newspaper headlines suggest that the local economy is doing well, I think these are false indicator. Expect a bumpy ride in the second half of 2018.

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