Weekly Market Update - 13 April 2015

Market Outlook

Equity Market Outlook

• The local market is lacklustre as investors are concerned about the global oil prices outlook and impact of Goods & Services Tax (GST). We remain optimistic on the local market and will look to build positions in selected stocks when value emerges in the market.
• We maintain our preference for stocks that would benefit from the depreciating Ringgit and high-yield stocks.

Fixed Income Outlook

• Malaysian Government Securities (MGS) volume was seen lower compared to the previous week. Lately, Government Investment Issue (GII) has attracted more interest due to its inclusion into Barclays’ Global Aggregate and Asian-Pacific Aggregate Indices.
• On Private Debt Securities (PDS) front, we continued to see active bargain hunting on Government Guaranteed (GG) papers, including DanaInfra paper which saw total trading volume at RM465million. Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) bonds were seen traded and closed lower by 1-9 basis points. Generally, we expect the credit yields to remain supported by shortage of supply as issuances volume spiked in March 2015.

Source: Lipper 

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