Market Outlook
Equity Market Outlook
- For the week of 9 March 2015, KLCI was ranged-bound - focus was on USD appreciation against MYR and the regional peers.
- We expect FBM KLCI to be ranged-bound this week as well.
- Focus will be centred on the up-coming Federal Reserve (FED) meeting on Wednesday to get direction from FED Chairman on the health of US economy and interest rate outlook.
- Commodities prices to remain weak due to the strength of USD.
- We still focus on stock selections to outperform the market.
Fixed Income Outlook
- For the week of 9 March 2015, Bank of Thailand and Bank of Korea both cut their respective policy rates by 25bps each to 1.75%. The easing came as a surprise as most economists did not expect the moves. After the cuts, the local sovereign market rallied on the long end as investors speculate Malaysia may be next to ease. Now that most of the countries within the region have eased their policies, the probability of Bank Negara to follow suit has increased materially. We have become more dovish as a result, with a view that easing may occur if GDP growth in the first quarter moderates.
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