By Sherilyn Goh
Will the stock market regain its momentum in the year of the monkey? Two Feng Shui experts give their views on the sectors that could be 2016’s star performers on the local bourse.
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In 2015, the FTSE Bursa Malaysia Kuala Lumpur Composite Index, also known as the FBM KLCI, performed relatively dull compared to other indices around the world.
In the fourth quarter where Asian equity markets historically performed well, with an Asia ex-Japan average return of 4%, the KLCI has merely delivered a circa 3% return. This is while company earnings reported one washout quarter after another, amid the backdrop of slumping commodity prices and a weaker ringgit.
In fact, most economic analysts that KINIBIZ spoke to are of the view that the headwinds have not blown over, and are pessimistic about the Malaysian equities market in 2016.
But what are Feng Shui experts’ predictions for the stock market in 2016, and which are the sectors which have the potential to outperform expectations?
Kenny Hoo
While agreeing that 2016 will see the stock market and various economic sectors filled with headwinds, Good Feng Shui Geomantic Research’s Kenny Hoo adopted the view that there are also different opportunities to be identified amid such turbulence.
“We foresee ups and downs in the stock market, and caution investors to select wisely. However by leveraging on the right opportunities, a volatile stock market also presents investors with ample buying and selling opportunities. A volatile stock market is after all better than a stagnant one,” he said.
According to Hoo, more opportunities are expected to present themselves between August and November, whereby his readings of the hexagram also show that recovering from the uncertainties and turbulence of the first two quarters (based on the lunar calendar), everything will turn out to be better.
“Generally, for 2016, the wealth star is prominent, meaning that the whole year round will be filled with challenges. However, if you look closer, there are also many opportunities, and it is up to us to identify which fields are they in,” he said.
The renowned Feng Shui advisor is upbeat on economic sectors related to the metal element, which he believes will the most influential element of the year, which symbolises wealth and luck. Metal-related industries include those that relate to insurance, foreign exchange, gold, copper, steel, machinery, automotive, as well as banking and finance, to name a few.
Sectors related to the wood element, he said, will see a mixture of good and bad fortunes. Wood-related industries include timber, furniture, gloves, plantation and publication.
“These export-oriented industries will likely see the opening up of new markets,” he explained. “The weather, however, will affect crops of palm oil and rubber.”
The Feng Shui master also foresees a bad year for both fire- and water-related industries. Fire-related sectors include petroleum, electrical and electronics, telecommunications, power generation, computer, restaurants, and food and beverage outlets.
“There will be a fierce competition in this sector which will see prices being driven down, however, those who ultimately benefit will be consumers who get to enjoy cheaper rates,” he explained.
However, for the water-related sectors including hospitality, fishery, shipping, transportation and logistics, Hoo said there is likely to be a turning point this year. “There will be challenges partially attributed to the weather, and partially due to political and security issues. But a turning point is likely to present itself after many years of slowdown.”
The most challenging sector this year, according to Hoo, will be that of earth-related industries, which include property, land, infrastructure, mining and construction. He said these industries are likely to see more mergers and acquisitions, while those who adapt to changes will survive, whereas those who do not will likely see themselves gradually phased out.
Commenting on the prospects of the property market, Hoo said this will be a good time for buyers to purchase their properties, as they will be the biggest beneficiary in the current property market. The Feng Shui master did not forget to add that a good property investment should take into consideration the geomancy aspect to bring more fortunes to property buyers.
“The previous year saw many uncertainties where people were safeguarding their fortunes. But come 2016, people will come to making decisions, be it buying a property or making life-changing decisions,” he said.
David Koh, founder and honorary life president of Malaysian Institute of Geomancy Sciences (Mings), predicts that recovery in property prices will take place between 2017 and 2018.
David Koh
Koh, however, told KINIBIZ that unlike Hoo’s predictions, he expects earth-related industries to be the star performer in the year of the monkey, whereas fire- and wood-related industries should also perform relatively well.
On the other hand, he is not as optimistic as Hoo about water- and metal-related sectors, which he expects to be the worst performers of 2016. He is also less upbeat on the performance of the stock market which he said is reliant on the performance of the world economy.
He told KINIBIZ that the tail-end of the Global Financial Crisis will always be the most volatile.
With 2016 being the seventh year since the onslaught of the crisis, growth prospects are to remain subdued, whereas positive changes uplifting the economy will only come by the end of 2017.
Yesterday: 2016: The year of turbulence
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