Weekly Market Update - 10 October 2016

Dated 10-10-2016


Market Outlook


Equity Market Outlook
 
  • Local market activity has been quiet in recent weeks due to uncertainty surrounding the US presidential election and possibility of Fed rate hike by the end of the year.
 
  • We expect the recent oil price stability to continue to support local market sentiment.
 
  • We remain positive on the local market due to political stability and higher confidence in the government to achieve its budget deficit target.
 
 
Fixed Income Outlook
 
 
  • The week ended with US dollar appreciated against major currencies despite weaker-than-expected nonfarm payrolls data for September (+156k). Expectations for a December’s rate hike remained strong after Fed Vice Chairman Fischer said the US is “close to full employment” and consumption spending “should continue to support growth over the second half of the year”.
 
  • Malaysia govvies benchmark yields rose marginally across the board in line with higher global bond yields as risk-off sentiment with sell-off across global bond markets dampened the trading interest in local bond markets. This is due to strong US economic indicators and stronger bets of a US rate hike later this year. Ringgit was supported at 4.1500-4.1550 level due to higher oil price. There was some selling pressure in the local govvies and the yield curve shifted upwards by 2-5bps. On Friday’s closing, the 3-, 5-, 7-, 10-, 15-, 20- and 30-year benchmark MGS yields settled at a respective 2.88%, 3.28%, 3.46%, 3.60%, 3.98%, 4.16% and 4.49%.
 
  • In the secondary corporate bonds market, we saw a lower volume in trading activities compared to last week, partly due to shorter trading days. About 60% of the trading volume was contributed by the GG/AAA, 37% by the AA segment and the remaining 3% by the A segment.
 
 
 
 
Fund

 
% Growth MYR
31/12/14 to
 7/10/16
31/12/15 to
 7/10/16
 7/10/15 to 7/10/16
 7/10/13 to
7/10/16
7/10/11 to
7/10/16
7/10/06 to
7/10/16
Since 1/1/2015 YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs
Hong Leong Growth Fund 8.87 1.02 1.45 13.77 43.03 94.25
Hong Leong Penny Stock Fund 25.94 6.00 7.36 34.50 80.06 183.21
Hong Leong Consumer Products Sector Fund 28.78 14.88 19.06 24.98 74.32 256.38
Hong Leong Dana Makmur 14.80 1.52 2.37 17.00 46.68 108.89
Hong Leong Dividend Fund 20.60 10.09 13.00 20.63 64.63 121.98
Hong Leong Asia-Pacific Infrastructure Fund 6.81 1.36 1.82 3.50 15.52 -
Hong Leong Asia-Pacific Dividend Fund 10.01 3.34 8.72 8.26 22.23 17.60
Hong Leong Hong Kong Equity Optimizer Fund 7.62 0.37 -0.73 -5.36 14.17 -
Hong Leong Balanced Fund 17.87 3.79 5.17 22.03 47.56 121.99
Hong Leong Dana Maa'rof 10.84 1.59 2.46 12.88 33.66
108.14
Hong Leong Strategic Fund 12.77 8.13 10.74 16.51 44.71 116.80
Hong Leong Bond Fund 7.25 3.88 4.82 11.37 19.45 54.34
Hong Leong Wholesale Bond Fund 9.21 5.17 6.42 13.40 - -
Hong Leong Institutional Bond Fund 7.48 4.01 4.98 11.33 18.95 39.93
Hong Leong Islamic Income Management Fund 6.00 2.64 3.49 9.53 16.00 -
Hong Leong Income Management Fund 6.76 2.92 3.82 10.98 17.68 -
Hong Leong Islamic Institutional Income Management Fund II  6.18 2.69 3.53 9.95 - -
Hong Leong Money Market Fund 6.39 2.81 3.65 - - -
Source: Lipper for Investment Management, as at 7 October 2016. Past performance is not necessarily indicative of future performance. 


 
 
 
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.
 

Hong Leong Group   |   Download Adobe Reader
The website is optimized for Google Chrome browser 1024px resolution