Weekly Market Update - 8 June 2015

Market Outlook

Equity Market Outlook

• We expect market to be volatile the week of 8 June due to a drop in liquidity during the school holiday season.
• Although the headline index continued to decline, this should have little impact on our funds as we do not hug the benchmark.
• We continue to adopt a bottom-up stock picking strategy for our funds.

Fixed Income Outlook

• Last week, the Malaysian Government Securities (MGS) market weakened 4-15 basis points across the curve with the exception to the short end as foreign investors unwound their carry trades in expectation of a hawkish rhetoric from the Federal Reserve.  The short end of the curve however saw demand and continued to be well supported. The ringgit also suffered, down approximately 2% against the dollar over the week of 1 June.
• Due to poor market sentiment, the 10-year benchmark auction suffered weak demand, with a bid to cover of 1.67x and an average ratio of 4.03%.

Source: Lipper, as at 5 June 2015
 

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