Market Outlook
Equity Market Outlook
- The regional market has done well in January and February 2015. March may see some profit-taking activities by investors. The possibility of a rate hike in the US may also hamper market sentiment.
- We are still positive on the local market and would look to build up positions in preferred stocks should there be any market correction.
Fixed Income Outlook
- The week of 3 March 2015 was relatively eventful. China and India cut its policy rates whilst Australia and Malaysia held firm. Ringgit traded weaker after both China and India eased rates on fears that exports may suffer should the yuan and rupee weaken. The Malaysian Government Securities (MGS) curve traded softer by 2-5 bps due to the weaker ringgit and the curve steepened on pronounced selling at the long end. Bank Negara Malaysia held its policy rate at 3.25%, maintaining its largely neutral policy tone. We expect rates to remain stable in the near term but remain cautious on the long end due to pervasive weak sentiment of the ringgit.
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