Weekly Market Update - 27 April 2015

Dated 27-04-2015

Market Outlook

Equity Market Outlook
  • We expect market to be range-bound. Some oil traders are of the view that oil prices have stabilised. Stable oil prices would ease investors’ concern for the country’s budget deficit situation. Consequently foreign investors’ confidence in the market and market sentiment will improve.
  • We maintain our bottom up stock picking strategy for the Malaysia market.

Fixed Income Outlook 
  • For the week ended 24 April 2015, we saw local government bonds rallied along the curve on the back of offshore buying, with local players joining in the buying after the week long inactivity. Trading volume in MYR bonds regaining traction attributed to a steadier oil price and stronger Ringgit performance. Reinforced by further dampened Federal Reserve rate hike outlook due to weak US economic data, more pronounced Overnight Policy Rate (OPR) pause views and benign inflation outlook, investors seen extending out the curve, prompting further compression in domestic bond yields.
  • Malaysian Government Securities (MGS) and Government Investment Issue (GII) yields have since compressed lower, with GII levels seen converging nearer towards MGS levels, fueled by positive vibes from the inclusion into Barclays Index. The secondary Private Debt Securities (PDS) market also saw higher active trading this week compared to last week. 57% of the trading volume was contributed by the GG/AAA segment, 40% by the AA segment and remainder by the single A segment. Over in the GG/AAA segment, GG bonds were heavily traded including DanaInfra Nasional, Pengurusan Air SPV and Prasarana Malaysia bonds, which yields eased 2-9 basis points. Over in the AA segment, trading activity saw some increase from the previous week. BGSM Management, UEM Sunrise and Anih Berhad bonds were traded which yields closed lower by 1-8 basis points.


% Growth MYR
31/12/14 to 23/4/15 23/4/14 to 23/4/15 23/4/12 to 23/4/15 23/4/10 to 23/4/15
YTD 1 Yr 3 Yrs 5 Yrs
Hong Leong Growth Fund 13.95 10.41 36.62 51.35
Hong Leong Penny Stock Fund 17.21 13.63 49.15 72.24
Hong Leong Consumer Products Sector Fund 12.73 1.48 28.61 85.79
Hong Leong Dana Makmur 12.27 5.76 26.33 47.65
Hong Leong Dividend Fund 8.33 4.49 29.52 57.37
Hong Leong Hong Kong Equity Optimizer Fund 14.88 0.00 20.02 -
Hong Leong Asia-Pacific Dividend Fund 2.14 -2.25 2.83 3.52
Hong Leong Asia-Pacific Infrastructure Fund 9.6 3.23 4.92 0.08
Hong Leong Balanced Fund 10.61 9.36 25.99 46.89
Hong Leong Dana Maa'rof 7.49 3.90 17.83 32.60
Hong Leong Strategic Fund 7.24 2.90 25.22 42.52
Hong Leong Bond Fund 1.45 4.59 9.90 19.66
Hong Leong Wholesale Bond Fund 1.75 5.16 - -
Hong Leong Global Bond Fund 2.43 0.56 10.99 17.22
Hong Leong Asia-Pacific Income Plus Fund 2.63 3.82 11.61 -
Hong Leong Institutional Bond Fund 1.53 4.19 10.23 17.86
Hong Leong Islamic Income Management Fund 1.09 3.34 8.62 14.79
Hong Leong Income Management Fund 1.17 3.48 9.78 15.98
Hong Leong Islamic Cash Management Fund 1.00 3.20 - -
Hong Leong Islamic Institutional Income Management Fund II 1.06 3.16 - -
Source: Lipper for Investment Management, as at 23 April 2015

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