Weekly Market Update - 20 July 2015

Market Outlook

Equity Market Outlook

• We remain positive about the local market update.
• We maintain the bottom-up stock picking strategy for our funds.
• We remain invested in stocks that will benefit from the depreciating Ringgit.

Fixed Income Outlook

• Malaysian Government Securities (MGS) trading was subdued last week due to the Raya holidays. Sentiment improved as a bailout agreement for Greece was achieved and subsequently approved by the Greek parliament.  Over the week, the curve steepened with the 3-year benchmark yields declining 2 bps and the 10-year benchmark rising 3 bps.
• June’s inflation reading was a healthy 2.5%, in line with expectation. The latest reading is an improvement over the last 6 months although headline inflation may moderate in the latter half of the year.

Source: Lipper for Investment Management, as at 16 July 2015
 

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