Weekly Market Update - 6 March 2017

Market Outlook

Equity Market Outlook

• Local market rallied in line with regional peers due to foreign inflows.
• We remain positive on the Malaysia market.

o   Foreign shareholding is low and cumulative foreign inflows is still near Global Financial Crisis (GFC) level

o   Inflows should resume should risk sentiment improves as the US economy improves

• The funds are positioned in some export stocks, large cap stocks that have been sold down and sectors that may benefit from government pump-priming such as consumer and construction sectors.

Fixed Income Outlook

• The sovereign bond market fell last week on increasing expectations of a rate hike in March by the Federal Reserve. Hawkish comments by policymakers coupled with positive economic data reinforced investors’ expectation.
• As expected Bank Negara maintained its monetary policy last week, adding that it was upbeat on both inflation and growth prospects. The central bank is likely to maintain its monetary policy in the near to medium term.

Source: Lipper for Investment Management, as at 3 March 2017. Past performance is not necessarily indicative of future performance. 

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