Weekly Market Update - 14 November 2016

Market Outlook

Equity Market Outlook

• Outflows from Asia-Pacific region intensified last week.
• We remain positive on the Malaysia market
  • Foreign shareholding is low and cumulative foreign inflows is near Global Financial Crisis (GFC) level
  • Inflows should resume should risk sentiment improves as the US economy improves

Fixed Income Outlook

• The sovereign bond market fell last week on rising Treasury yields after the Presidential vote. The 5-year and 10-year benchmark rose 45 and 32bps respectively as foreign investors rushed for the exit due to fear of further outflows from emerging market debt.
• In the week ahead, Bank Negara will decide on its monetary policy in the last monetary policy meeting on Nov 23. Based on the current outlook and financial conditions, we think the central bank is likely to maintain its policy rate to stem further capital outflow from the system. 

Source: Lipper for Investment Management, as at 11 November 2016. Past performance is not necessarily indicative of future performance. 

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