Weekly Market Update - 22 May 2017

Market Outlook

Equity Market Outlook

• Recent economic data in Malaysia reflects a positive economic outlook for the country.
• We expect improving external demand to have a positive impact on the local economy.

Fixed Income Outlook

• The sovereign bond market traded firmer last week on demand by offshore investors. As widely expected, Bank Negara maintained its monetary policy last week and reiterated its neutral stance. We reaffirm the outlook should remain stable for the remainder of the year. Inflation moderated in April to 4.4%, suggesting the peak may have passed.
• Standard & Poor’s (S&P) raised Indonesia to Investment grade last Friday. Indonesian stocks, bonds rallied after the announcement. We saw some overflow demand into the local sovereign bond market, late Friday.

Source: Lipper for Investment Management, as at 19 May 2017. Past performance is not necessarily indicative of future performance. 

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