Weekly Market Update - 29 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

• There was a divergence in economic data between US and Europe in the previous week. Stronger US economic releases led to a stronger trading session for the dollar. Poorer European releases led to more easing expectation from the ECB. The “Brexit” referendum also weighed on sentiment, causing the pound to depreciate sharply.
• The Malaysian Government Securities (MGS) market fell across the curve with yields of short end benchmarks rising more than the long end. Offshore investors were seen switching out of the short maturities and into the longer dated benchmarks for yield pickup.

Source: Lipper for Investment Management, as at 26 February 2016. Past performance is not necessarily indicative of future performance. 

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