Weekly Market Update - 21 March 2016

Market Outlook

Equity Market Outlook

• We maintain our positive market outlook for the Malaysian market.
• Malaysian market saw heightened foreign inflows in the past one month.
• Market seems to have stabilised as the Federal Open Market Committee (FOMC) signaled a more dovish monetary stance.

Fixed Income Outlook

• The FOMC meeting in the previous week proved to be a non-event as widely expected. The Federal Reserve held rates and scaled back its projects to 2 rate hikes this year. Elsewhere, Bank of England held its policy rate whilst Bank of Indonesia eased for the third time this year.
• In the aftermath of the dovish FOMC meeting, the local sovereign bond market rallied across the curve by 1-8 bps. Foreign investors were seen pouring back into emerging markets in search for yields as rates are expected to stay low in the near term. Concurrently, the Ringgit rallied to 4.05 on the back of higher oil price. 

Source: Lipper for Investment Management, as at 18 March 2016. Past performance is not necessarily indicative of future performance.

DISCLAIMER: This publication shall not be copied, or relied upon by any person for whatever purpose. The information herein is given on a general basis without obligation and is strictly for information only. This publication is not an offer, solicitation, recommendation or advice to buy or sell any investment product, including any collective investment schemes or shares of companies mentioned within. Although every reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this publication, Hong Leong Asset Management Bhd and its employees cannot be held liable for any errors, inaccuracies and/or omissions, howsoever caused, or for any decision or action taken based on views expressed or information in this publication. The information contained in this publication, including any data, projections and underlying assumptions are based upon certain assumptions, management forecasts and analysis of information available as at the date of this document and reflects prevailing conditions and our views as of the date of the document, all of which are accordingly subject to change at any time without notice. Hong Leong Asset Management Bhd does not warrant the accuracy, adequacy, timeliness or completeness of the information herein for any particular purpose, and expressly disclaims liability for any errors, inaccuracies or omissions. Any opinions, projections and other forward-looking statements regarding future events or performance of, including but not limited to, countries, markets or companies are not necessarily indicative of, and may differ from actual events or results. Nothing in this publication constitutes accounting, legal, regulatory, tax or other advice. The information herein has no regard to the specific objectives, financial situation and particular needs of any specific person. You may wish to seek advice from a professional or an independent financial adviser about the issues discussed herein or before investing in any investment products.