Weekly Market Update - 11 January 2016

Market Outlook

Equity Market Outlook

• Regional markets endured a volatile start to the year. However the impact on the Malaysian market has been relatively muted.
• We view the local market positively as most foreign investors have already sold out of Malaysia.
• We like export oriented stocks and selected big cap stocks.

Fixed Income Outlook 

• The Malaysia Government Securities (MGS) market traded mixed on the first week of the year. Despite December payrolls recording a better than expected figure, the Fed and market remain unconvinced as downside risk to inflation remains and stagnating wage growth suggests there remains considerable slack in the labour market. The Fed minutes that was released last week was dovish in nature. The decision to hike rates in December was closer than expected and some Fed members advised that the interest path may be difficult to project as it will be data dependent.

Source: Lipper for Investment Management, as at 8 January 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.