Weekly Market Update - 22 February 2016

Market Outlook

Equity Market Outlook

• We expect regional markets to remain volatile.
• We expect the Malaysian market to outperform the region. We remain positive on the local market outlook due to the less likelihood of further foreign selling, restructuring of the economy and less political uncertainty.

Fixed Income Outlook

• The Malaysian Government Securities (MGS) market stabilised last week after large movements at the beginning of the year. In the regional markets, Indonesia’s central bank cut its policy rate by 25 bps, which we think would cause Malaysia’s bond market to be favoured by international investors.
• In the near term, we expect the local sovereign market to remain well supported on the back of delayed rate hike expectations by the Fed and a stable monetary policy rate outlook relative to regional markets.

Source: Lipper for Investment Management, as at 19 February 2016. Past performance is not necessarily indicative of future performance. 

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