If I Bought These Blue Chip Stocks 5 Years Ago

What would be the return if I bought and held the blue chip stocks that constitute the Kuala Lumpur Composite Index (KLCI) 5 years ago or to be precise since July 2009?

Let find out.

Note: There are 30 companies in KLCI, but I can only find data longer than 5 years for 22 of the blue chip companies. That is why you only see 22 companies here. Also, over last 5 years, the companies that were listed in KLCI had changed. So the list below is only for reference only.

  1. AMMB HOLDINGS BHD – AMBANK (1015)

    Ambank 5 Years

    AMBANK 5 Years

    82.20%

  2. AXIATA GROUP BERHAD – AXIATA (6888)

    Axiata 5 Years

    AXIATA 5 Years

    137.93%

  3. BRITISH AMERICAN TOBACCO (M) – BAT (4162)

    Bat 5 Years

    BAT 5 Years

    51.78%

  4. CIMB GROUP HOLDINGS BERHAD – CIMB (1023)

    Cimb 5 Years

    CIMB 5 Years

    -31.86%
    Update 140720: 阿尧 pointed out that there was a 1:1 split on 21 May 2010. Taking that into account, the return for CIMB during July 2009 – July 2014 would be +36.27%. But I will continue to use the old figure as a way to calculate worst case average return.

  5. DIGI.COM BHD – DIGI (6947)

    Digi 5 Years

    DIGI 5 Years

    154.75%

  6. GENTING MALAYSIA BERHAD – GENM (4715)

    Genm 5 Years

    GENM 5 Years

    44.83%

  7. GENTING BHD – GENTING (3182)

    Genting 5 Years

    GENTING 5 Years

    53.54%

  8. HONG LEONG BANK BHD – HLBANK (5819)

    Hlbank 5 Years

    HLBANK 5 Years

    137.65%

  9. HONG LEONG FINANCIAL GROUP BHD – HLFG (1082)

    Hlfg 5 Years

    HLFG 5 Years

    248.51%

  10. IOI CORPORATION BHD – IOICORP (1961)

    Ioicorp 5 Years

    IOICORP 5 Years

    -3.29%

  11. MAXIS BERHAD – MAXIS (6012)

    Maxis 5 Years

    MAXIS 5 Years

    25.88%

  12. MALAYAN BANKING BHD – MAYBANK (1155)

    Maybank 5 Years

    MAYBANK 5 Years

    52.46%

  13. PUBLIC BANK BHD – PBBANK (1295)

    Pbbank 5 Years

    PBBANK 5 Years

    96.27%

  14. PETRONAS DAGANGAN BHD – PETDAG (5681)

    Petdag 5 Years

    PETDAG 5 Years

    145.21%

  15. PETRONAS GAS BHD – PETGAS (6033)

    Petgas 5 Years

    PETGAS 5 Years

    133.14%

  16. PPB GROUP BHD – PPB (4065)

    Ppb 5 Years

    PPB 5 Years

    8.09%

  17. RHB CAPITAL BHD – RHBCAP (1066)

    Rhbcap 5 Years

    RHBCAP 5 Years

    98.06%

  18. TENAGA NASIONAL BHD – TENAGA (5347)

    Tenaga 5 Years

    TENAGA 5 Years

    88.34%

  19. TELEKOM MALAYSIA BHD – TM (4863)

    Tm 5 Years

    TM 5 Years

    106.91%

  20. UEM SUNRISE BERHAD – UEMS (5148)

    Uems 5 Years

    UEMS 5 Years

    23.53%

  21. UMW HOLDINGS BHD – UMW (4588)

    Umw 5 Years

    UMW 5 Years

    90.16%

  22. YTL CORPORATION BHD – YTL (4677)

    Ytl 5 Years

    YTL 5 Years

    18.01%

Summary For Holding Blue Chip Stocks 5 Years Ago

Company Return (%)
AMBANK 82.20
AXIATA 137.93
BAT 51.78
CIMB -31.86
DIGI 154.75
GENM 44.83
GENTING 53.54
HLBANK 137.65
HLFG 248.51
IOICORP -3.29
MAXIS 25.88
MAYBANK 52.46
PBBANK 96.27
PETDAG 145.21
PETGAS 133.14
PPB 8.09
RHBCAP 98.06
TENAGA 88.34
TM 106.91
UEMS 23.53
UMW 90.16
YTL 18.01
AVERAGE 80.10

The total return would be 80.10% on average if I held these blue chip stocks 5 years ago. That is only 12.48% compounded annually (bear in mind that the dividend incomes are not included yet). This is a no-brainer investment considering that you don’t have to do extensive homework. You only buy and hold these blue chip stocks.

However, it will be a different story if I held the stocks longer. E.G.: the return from MAYBANK would be negative (-17.42%) if I held it for 7 years till now. Based on the observations, MAYBANK is one of the blue chip stocks that was deeply impacted by the financial crisis happened in 2008.

MAYBANK 7 Years

MAYBANK 7 Years

In fact, it was the worst stock among the 22 stocks listed above during 2008-2009. The other blue chip stocks were only mildly impacted by the crisis (considering today’s price). If you are interested, you can find it out yourself using Yahoo Finance.