Weekly Market Update - 10 August 2015

Market Outlook 

Equity Market Outlook

• Market is expected to experience heightened volatility due to falling crude oil prices and expectations of the first rate hike by the Federal Reserve this year.
• In the event of severe market correction, the funds will look to buy into stocks that are trading at attractive valuations.
• We still prefer companies that will benefit from the depreciating ringgit and high yield stocks.

Fixed Income Outlook

• Last week, the bond market traded weak on poor sentiment caused by the weak ringgit and increasing Federal Reserve hike expectations. Trading volume was also low due to the cautious stance adopted by investors. The Malaysian Government Securities (MGS) curve bear flattened, with short end maturities rising by 10-20 bps while the 7 and 10-year benchmark rose 7 and 8 bps respectively.
• The weak ringgit persisted through the week, contributed by the stronger dollar, weak coverage ratios, lower oil price and the overhang of the political scandal.

Source: Lipper for Investment Management, as at 7 August 2015
 

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.