Weekly Market Update - 29 August 2016

Market Outlook

Equity Market Outlook

• We expect interest rate hike to dampen market sentiment in the short term.
• However we expect market sentiment to improve as investors shift focus to the improvement in global economic outlook.
• As investor risk sentiment rises, we expect emerging market to gain favour among investors.

Fixed Income Outlook

• Last week, Chair Yellen’s speech proved to be a non-event but had a hawkish tilt and did not rule out a hike as early as September.
• On the local front, short Malaysian Government Securities (MGS) benchmarks continued to be well supported by foreigners due to the search for yields. Longer end MGS benchmarks fell 1-3 bps due to the hawkish tone by the Federal Reserve.

Source: Lipper for Investment Management, as at 29 August 2016. Past performance is not necessarily indicative of future performance. 

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