Weekly Market Update - 5 December 2016

Dated 05-12-2016

Market Outlook

Equity Market Outlook
  • Recent Foreign Exchange management measures by Bank Negara Malaysia may relieve some pressure on the RM, but we expect the RM to remain weak due to rising expectations of interest rate hike in the US and foreign outflows in the local bond market.
  • We remain positive on the Malaysia market.
o   Foreign shareholding is low and cumulative foreign inflows is near Great Financial Crisis level
o   Inflows should resume should risk sentiment improves as the US economy improves
  • The funds are positioned in some export stocks, large cap stocks that have been sold down and sectors that may benefit from government pump-priming such as consumer and construction sectors.
Fixed Income Outlook
  • The decision by Organization of Petroleum Exporting Countries (OPEC) to cut output for the first time in 12 years triggered a rally in the oil price. The relief rally by oil triggered better trading sentiment across asset classes. Last week, the Malaysian Government Securities (MGS) market recovered mildly after a period of strong selling. Yields declined by about 2-18bps with the 5-year benchmark posting the strongest recovery.
  • In the coming week, we will have to assess how the Italian referendum will affect the European markets. Even though we do not think the results will directly impact the local bond market, we will need lookout for spillover effects if any.

% Growth MYR
31/12/14 to
31/12/15 to
 2/12/15 to 2/12/16
 2/12/13 to
2/12/11 to
2/12/06 to
Since 1/1/2015 YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs
Hong Leong Growth Fund 6.27 -1.39 -1.65 8.12 33.41 70.11
Hong Leong Penny Stock Fund 21.00 1.84 2.08 26.63 64.54 137.12
Hong Leong Consumer Products Sector Fund 24.67 11.21 10.93 16.84 55.88 213.42
Hong Leong Dana Makmur 9.08 -3.55 -2.82 10.70 33.59 77.54
Hong Leong Dividend Fund 16.25 6.13 5.25 17.39 50.38 95.05
Hong Leong Asia-Pacific Infrastructure Fund 5.52 0.14 -0.53 3.63 6.20 -
Hong Leong Asia-Pacific Dividend Fund 9.79 3.13 4.93 7.21 16.94 12.72
Hong Leong Hong Kong Equity Optimizer Fund 10.38 2.94 1.10 -6.90 16.58 -
Hong Leong Balanced Fund 13.50 -0.06 0.14 16.86 37.85 94.11
Hong Leong Dana Maa'rof 6.54 -2.34 -1.67 8.12 23.78 83.41
Hong Leong Strategic Fund 9.29 4.80 4.20 11.26 34.18 87.87
Hong Leong Bond Fund 5.08 1.78 2.08 9.21 15.71 47.49
Hong Leong Wholesale Bond Fund 7.28 3.31 3.76 11.40 - -
Hong Leong Institutional Bond Fund 6.66 3.22 3.56 10.55 17.58 38.21
Hong Leong Islamic Income Management Fund 5.63 2.28 2.59 8.70 15.00 -
Hong Leong Income Management Fund 7.30 3.44 3.76 11.05 17.76 -
Hong Leong Islamic Institutional Income Management Fund II  6.68 3.18 3.49 10.07 - -
Hong Leong Money Market Fund 6.92 3.32 3.63 - - -
Source: Lipper for Investment Management, as at 2 December 2016. Past performance is not necessarily indicative of future performance. 

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