Weekly Market Update - 17 July 2017

Dated 17-07-2017


Market Outlook


Equity Market Outlook
 
  • Malaysia equity market continued to see corrections in the past week after strong rally during 1H17.
 
  • Malaysia’s export for May grew by +32.5% yoy, which is highest in the past 7 years.
 
  • Bank Negara held Overnight Policy Rate (OPR) at 3% as inflation rate moderated to 3.9% in May.
 
  • We deemed recent corrections of Malaysia market are healthy as the fundamental of Malaysia economy remained robust.
 
  • We continue to favour laggard big cap stocks such as construction, consumer and export related sectors.
 
 
 
Fixed Income Outlook
 
  • Bank Negara maintained its Overnight Policy Rate (OPR) at 3.00% last week as widely expected. Its policy tone remained neutral and reiterated that inflation outlook should moderate for the remainder of the year. Thus, our view of policy rate to remain stable remains unchanged.
 
  • During Federal Reserve Chair Yellen’s testimony to the Congress, she highlighted how economic recovery should allow further monetary policy tightening and added that policy rate “would not have to rise all that much further” which hinted that the neutral rate might be lower to the historical rates. She further explained the central bank will start reducing its balance sheet later this year.
 
  • Last week, the local government bond market remained relatively unchanged ahead of Bank Negara’s announcements and Yellen’s testimony
 
 
Fund

 
% Growth MYR
31/12/14 
to
 14/7/17
31/12/15 
to
 14/7/17
31/12/16 
to
 14/7/17
14/7/16
to
14/7/17
 14/7/14 
to
14/7/17
14/7/12 
to
14/7/17
14/7/07 
to
14/7/17
Since
1/1/2015
Since 1/1/2016 YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs
Hong Leong Growth Fund 24.29 15.34 16.58 16.65 20.53 47.10 39.52
Hong Leong Penny Stock Fund 39.29 17.24 13.67 13.89 32.78 67.99 101.05
Hong Leong Consumer Products Sector Fund 33.44 19.04 7.11 6.81 20.95 45.30 180.37
Hong Leong Dana Makmur 28.65 13.77 16.24 17.42 20.16 38.64 64.83
Hong Leong Dividend Fund 38.55 26.49 17.92 20.14 32.60 57.75 88.69
Hong Leong Asia-Pacific Infrastructure Fund 15.56 9.67 10.28 11.56 9.88 15.76 -21.26
Hong Leong Asia-Pacific Dividend Fund 26.74 19.05 16.97 21.26 20.57 30.57 10.48
Hong Leong Hong Kong Equity Optimizer Fund 25.35 16.90 14.92 29.17 11.90 43.91 -
Hong Leong Balanced Fund 28.08 12.78 11.59 10.92 25.08 41.64 79.84
Hong Leong Dana Maa'rof 19.19 9.25 10.58 10.98 14.16 26.73 66.67
Hong Leong Strategic Fund 19.95 15.02 9.72 7.76 16.39 37.66 43.26
Hong Leong Strategic Opportunity Fund - - 10.80 13.11 - - -
Hong Leong Bond Fund 7.94 4.55 2.18 1.47
10.29
15.73 43.66
Hong Leong Wholesale Bond Fund 10.93 6.82 2.55 2.70 13.42 - -
Hong Leong Institutional Bond Fund 10.03 6.48 2.55 3.39 11.91 18.31 39.05
Hong Leong Islamic Income Management Fund 8.18 4.75 1.91 2.80 9.75 15.52 32.83
Hong Leong Income Management Fund 9.60 5.66 1.87 3.51 11.33 18.18 -
Hong Leong Islamic Institutional Income Management Fund II  8.72 5.15 1.68 3.16 10.30 - -
Hong Leong Money Market Fund 9.30 5.62 1.96 3.55 - - -
Source: Lipper for Investment Management, as at 14 July 2017. Past performance is not necessarily indicative of future performance. 


 
 
 
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