Weekly Market Update - 23 October 2017

Dated 23-10-2017


Market Outlook


Equity Market Outlook
 
  • China 19th Party Congress continue to emphasise on:
  • Cutting excess and outdated capacities in steel and coal sector
  • Prevent major systemic risk in property and financial markets through cooling measures and deleveraging in the banking system
  • Alleviate poverty through higher spending in rural areas
 
  • However, Hong Kong market reacted negatively given the concerns of liquidity tightening and rising profit taking sentiment after the rally before the congress meeting.
 
  • Shino Abe’s landslide victory over the Japan election drives the positive sentiment for Japanese market, given the loosening monetary and pro-corporate policies to be carried on.
 
  • Malaysia’s market was trading sideways given lack of fresh catalyst and market is anticipating more positive announcement for the upcoming 2018 Budget.
 
  • We continue to be cautiously positive to the markets and selective in our portfolio, favour sectors like construction, building materials and consumers.
 
 
 
Fixed Income Outlook
 
  • The US senate approved a USD4 trillion budget last week, clearing a hurdle to passing a tax reform this year. In the near term, we expect the announcement of the new Fed chair with the favourite being Jerome Powell, followed by John Taylor. US Treasuries yields rose last week on the approval of the tax budget and ahead of the Fed chair announcement.
 
  • On the local front, inflation in September rose to 4.6%, rising from 3.7% in the previous month. Malaysia Government Securities (MGS) remained relatively stable due to low liquidity in the market, as a result of the Deepavali holiday. We expect potential weakness in MGS market in the near term due to external news flow. 
 
 
Fund

 
% Growth MYR
31/12/14 
to
 20/10/17
31/12/15 
to
 20/10/17
31/12/16 
to
 20/10/17
20/10/16
to
20/10/17
 20/10/14 
to
20/10/17
20/10/12 
to
20/10/17
20/10/07 
to
20/10/17
Since
1/1/2015
Since 1/1/2016 YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs
Hong Leong Growth Fund 31.13 21.68 22.99 19.59 32.64 57.03 48.82
Hong Leong Penny Stock Fund 42.93 20.30 16.64 12.85 41.35 72.10 107.02
Hong Leong Consumer Products Sector Fund 36.4 21.67 9.48 5.63 35.63 45.56 192.62
Hong Leong Dana Makmur 29.77 14.76 17.25 12.26 25.85 40.58 78.60
Hong Leong Dividend Fund 41.36 29.05 20.31 15.72 36.46 56.16 103.41
Hong Leong Asia-Pacific Infrastructure Fund 18.81 12.76 13.39 11.30 19.83 10.03 -26.89
Hong Leong Asia-Pacific Dividend Fund 31.92 23.91 21.76 18.45 30.89 31.47 11.80
Hong Leong Hong Kong Equity Optimizer Fund 31.87 22.98 20.89 24.20 29.43 39.69 -
Hong Leong Balanced Fund 30.27 14.70 13.49 9.95 28.72 43.86 78.09
Hong Leong Dana Maa'rof 19.80 9.81 11.15 7.42 17.97 27.31 64.47
Hong Leong Strategic Fund 21.71 16.71 11.33 8.23 20.92 41.29 49.36
Hong Leong Strategic Opportunity Fund - - 13.82 13.29 - - -
Hong Leong Regular Income Fund - - 4.87 4.78 - - -
Hong Leong Bond Fund 9.09 5.67 3.27 1.65 9.53 16.31 44.71
Hong Leong Wholesale Bond Fund 12.41 8.25 3.92 2.93 12.90 - -
Hong Leong Institutional Bond Fund 11.48 7.87 3.89 3.60 11.98 18.85 39.64
Hong Leong Islamic Income Management Fund 9.10 5.64 2.78 2.84 9.69 15.72 32.85
Hong Leong Income Management Fund 10.63 6.65 2.82 3.50 1.40 18.34 -
Hong Leong Islamic Institutional Income Management Fund II  9.64 6.04 2.54 3.14 10.35 - -
Hong Leong Money Market Fund 10.38 6.66 2.97 3.63 10.80 - -
Source: Lipper for Investment Management, as at 20 October 2017. Past performance is not necessarily indicative of future performance. 


 
 
 
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