Weekly Market Update - 29 June 2015

Market Outlook

Equity Market Outlook

• We expect more volatility due to ongoing uncertainty surround Grexit.
• However we view the current market sell-down as an opportunity to buy shares at attractive prices.
• Our funds have ample cash to be deployed.
• We continue to adhere to our bottom-up stock pick strategy for our funds.

Fixed Income Outlook

• For the week ended 26 June 2015, Malaysian Government Securities (MGS) yields remained largely unchanged amid tepid liquidity and not much flow seen. Focus remained on Greek development while U.S. economy’s solid showing along with hawkish comments from a Fed official served to strengthen the case for US Federal Open Market Committee (FOMC) to boost interest rates in September 2015. On the local front, market players have remained very cautious with looming Fitch rating announcement any time soon. Trading activities in local govvies were light as we were entering into the first week of the fasting month with daily average trading volume of RM2 billion compared to preceding week’s daily average of 3.3 billion. In the secondary Private Debt Securities (PDS) market, there was an increase in trading activities compared to previous week with daily average trading volume of RM586 million compared to previous week’s average of RM491 million. 56% of the trading volume was contributed by the GG/AAA segment, 42% by the AA segment, with the remaining by the A segment. We expect market players to be very cautious this week as we approach the end of 1H2015 and wait for the impending announcement from Fitch.

Source: Lipper for Investment Management, as at 26 June 2015

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