Weekly Market Update - 7 September 2015

Market Outlook 

Equity Market Outlook

• All eyes are on the Fed’s interest rate decision next week.
• In the meantime, market is expected to see more volatility.
• We prefer export oriented stocks and high yield stocks.

Fixed Income Outlook

• The policy divergence dominated the market sentiment as European Central Bank (ECB) considers more easing after it cut growth and inflation whilst the Fed will decide on raising the Fed funds rate sometime this year. US economic data ended on a softer note, summed up by the lower than expected non-farm payroll figure of 173k jobs against the expected 217k. 10-year Treasuries should remain supported in the near term on the back of poorer US data on benign inflation figures.
• The Malaysian Government Securities (MGS) market rallied during the week after being battered previously by the indiscriminate exit of offshore investors. Local insurers and some foreign investors bought on dips as levels began to look attractive. Bank Negara will decide on its monetary policy this week and we expect the central bank to hold rates in the current environment, with an eye on a potential slowdown in growth.

Source: Lipper for Investment Management, as at 4 September 2015
 

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