Weekly Market Update - 17 August 2015

Dated 17-08-2015


Market Outlook


Equity Market Outlook

 
  • Global investors are risk-adverse after a surprise move by the People’s Bank of China (PBoC) to weaken the yuan to reflect the market price.
 
  • Asian currencies weakened against the USD across the board. The ringgit has weakened over 14% this year against USD. 
 
  • Sentiment remains weak as investors focused on currencies and the potential US rate hike in September.
 
  • Expect market to remain volatile in near term until the Federal Open Market Committee’s (FOMC) decision on interest rate.
 
  • Our funds remain invested in companies that will benefit from the strong USD. 

 
Fixed Income Outlook
 
  • The sovereign bond market traded weaker on the depreciation of the ringgit. Over the week, yields rose across the curve between 7-22 bps with the 3 and 5-year benchmark yields rising the most. The ringgit continued to drop sharply last week on falling fuel price, yuan depreciation and the sell down in the local equity market. Last week, the Chinese central bank announced the change of its fixing mechanism of the yuan, in a move to liberalise the exchange rate. Investors speculated on the motive of the central bank and promptly sold off the yuan.  Most Asian emerging currencies fell in tandem with the yuan depreciation due to China being a major trade partner within the region. 
 
  • Second quarter GDP grew 4.9%, better than the expected 4.5%. However this positive release failed to lift market sentiment.



Fund

 
% Growth MYR
31/12/14
to 14
/8/15
14/8/14
to 14
/8/15
14/8/12
to 
14/8/15
14/8/10
to
14/8/15
14/8/05
to 
14/8/15
YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs
Hong Leong Growth Fund 2.50 -1.13 22.20 35.34 83.27
Hong Leong Penny Stock Fund 9.69 4.08 30.37 61.33 148.52
Hong Leong Consumer Products Sector Fund 5.43 -4.78 11.12 60.63 195.85
Hong Leong Dana Makmur 4.93 -0.51 12.29 41.78 89.56
Hong Leong Dividend Fund 0.20 -6.29 12.11 43.51 88.17
Hong Leong Asia-Pacific Infrastructure Fund -0.21 -4.87 -3.11 -6.34 -
Hong Leong Asia-Pacific Dividend Fund -4.11 -9.78 -2.05 -0.82 -
Hong Leong Hong Kong Equity Optimizer Fund 9.05 -3.70 27.15 - -
Hong Leong Balanced Fund 7.59 3.48 17.41 41.83 107.18
Hong Leong Dana Maa'rof 3.56 0.09 8.99 29.30 105.47
Hong Leong Strategic Fund -3.66 -7.62 11.75 26.74 112.96
Hong Leong Bond Fund 2.63 3.94 9.50 20.55 54.55
Hong Leong Wholesale Bond Fund 3.02 4.42 - - -
Hong Leong Global Bond Fund -5.50 -8.17 -1.27 12.65 -
Hong Leong Asia-Pacific Income Plus Fund 0.85 1.19 5.02 - -
Hong Leong Institutional Bond Fund 2.64 3.83 9.86 18.25 -
Hong Leong Islamic Income Management Fund 2.03 3.20 8.67 15.02 -
Hong Leong Income Management Fund 2.30 3.62 10.04 16.37 -
Hong Leong Islamic Cash Management Fund 2.01 3.26 - - -
Hong Leong Islamic Institutional Income Management Fund II 2.07 3.30 - - -
Source: Lipper for Investment Management, as at 14 August 2015





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