Market Outlook
Equity Market Outlook
- Local market will continue to experience heightened volatility in the first half of the year as the outlook for crude oil prices remain uncertain.
- Uncertainty about the impact of GST also fuels more volatility to the local market.
- Should the market experience a pre-CNY rally, we would look to take profit on stocks that have hit our target price.
- We maintain our stock-picking strategy for the funds.
Fixed Income Outlook
- The sovereign bond market traded poorly last week, with the belly of the curve rising between 10-12bps. Investors took profit after a strong performance in the previous week. Other investors preferred to stay on the sidelines before the long Chinese New Year weekend.
- The most significant local data release last week was the fourth quarter GDP growth figure, which surprised on the upside at 5.8% versus consensus of 5.0%.
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