Weekly Market Update - 27 July 2015

Market Outlook

 Equity Market Outlook

• We expect local market to trade sideways.
• A number of undervalued export-oriented stocks have been rerated upwards recently. We expect this trend to continue. This should work in favour of the performance of our funds.
• We maintain bottom-up stock picking strategy for our funds.

Fixed Income Outlook

• The Malaysian Government Securities (MGS) market traded stronger last week, rallying 2-9 bps over the week. The curve steepened, with short end bonds seeing more demand than long tenured bonds. In general, there was better trading sentiment for the sovereign market, which was also assisted by the poor performance in the equity market.
• Foreign reserves fell 4.7% over the last month and; now stand at USD100.5 billion, the lowest level in 5 years. We have seen Bank Negara supporting the ringgit at current levels and thus we think the ringgit will remain stable at its current level in the near term.

Source: Lipper for Investment Management, as at 24 July 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.