Weekly Market Update - 2 November 2015

Market Outlook

Equity Market Outlook

• Market is expected to see some consolidation after the rally in recent weeks.
• We expect a short-term market correction should US decide to raise rates in December. However, we expect the market to eventually rally as investors start to focus on the prospects of stronger economic outlook.
• We maintain our bottom-up stock picking strategy for our funds.

Fixed Income Outlook 

• The Federal Open Market Committee (FOMC) meeting proved hawkish last week, as the Federal Reserve hinted a December rate hike was still on target. Treasuries and emerging market bonds traded weaker following the meeting with investors re-pricing in rate hike expectations. Correspondingly, Malaysian Government Securities (MGS) yields rose last week between 1-4 bps.
• On the local news front, Bank Negara will start accepting interbank dollar deposits to help build up the country’s reserves with the prospect of supporting the ringgit.

Source: Lipper for Investment Management, as at 31 October 2015

DISCLAIMER: This publication shall not be copied, or relied upon by any person for whatever purpose. The information herein is given on a general basis without obligation and is strictly for information only. This publication is not an offer, solicitation, recommendation or advice to buy or sell any investment product, including any collective investment schemes or shares of companies mentioned within. Although every reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this publication, Hong Leong Asset Management Bhd and its employees cannot be held liable for any errors, inaccuracies and/or omissions, howsoever caused, or for any decision or action taken based on views expressed or information in this publication. The information contained in this publication, including any data, projections and underlying assumptions are based upon certain assumptions, management forecasts and analysis of information available as at the date of this document and reflects prevailing conditions and our views as of the date of the document, all of which are accordingly subject to change at any time without notice. Hong Leong Asset Management Bhd does not warrant the accuracy, adequacy, timeliness or completeness of the information herein for any particular purpose, and expressly disclaims liability for any errors, inaccuracies or omissions. Any opinions, projections and other forward-looking statements regarding future events or performance of, including but not limited to, countries, markets or companies are not necessarily indicative of, and may differ from actual events or results. Nothing in this publication constitutes accounting, legal, regulatory, tax or other advice. The information herein has no regard to the specific objectives, financial situation and particular needs of any specific person. You may wish to seek advice from a professional or an independent financial adviser about the issues discussed herein or before investing in any investment products.