Disclaimer: This research should be used purely for informational purposes and is my own personal opinion. I bear no responsibility to whatever investment decisions taken by anyone with regards to this research.

The Kuala Lumpur Composite Index (KLCI) today declined by 2.2% to finish at 1,377 points. Almost all markets with the exception of Thailand Exchange of Thailand (+1.5%) are all on steep decline today. The United States and China have ramped up the tension on the origins of the Covid-19. Both countries have their own narratives, and this seems likely to escalate because they have been at it since the trade war 2 years ago. 

I have a sinking feeling that this is the tipping point of no return for the global economy. Before this, markets were rattled by the news of Covid-19 leading to shutdown of economic activities, and the decline of oil prices. Subsequently as things became more clear, markets rallied in spite of a slew of bad economic data and indicators. Markets were buoyed by optimism, and the light at the end of the tunnel. However, think about it for a second, this recession is both a demand and supply shock. Covid-19 has caused demand to crash, lockdowns to supply chains, oil prices are tanking because of an inability to agree on output cuts among OPEC countries, both the United States and China are back on tensions again. To me, this is just the perfect storm. 

For the Malaysian companies I am keeping track, most of them are still up. The best performing companies in terms of share price are Lotte Chemical Titan (43.2%), Padini (19.2%) and Bermaz Auto (15.5%). To date, the portfolio of companies I am keeping track on have improved to 6.3% return (30 April 2019: 7.1%). You can have a look at the companies I am keeping track on in the Google Excel sheet here or the table below.