Weekly Market Update - 14 August 2017

Market Outlook

Equity Market Outlook

• Rising geopolitical risk resulted in increased market volatility.
• We are looking to deploy cash to buy undervalued stocks should prices come down to attractive levels.
• We maintain our preference for large cap laggards, selected consumer and construction names and export stocks.

Fixed Income Outlook

• The local government bond market traded flat last week on low liquidity and a lack of economic data. Towards the end of the week, there was risk-off sentiment due to the geopolitical conflict between US and North Korea. US treasury rallied on the risk-off sentiment and the local bond market saw interest by foreign investors.
• The major highlight for domestic release this week is the Malaysia Gross Domestic Product (GDP) for second quarter this Friday.

Source: Lipper for Investment Management, as at 11 August 2017. Past performance is not necessarily indicative of future performance. 

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