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Investment Insights and Strategy Series by Phillip Capital Malaysia – February 2024
Article |19 February 2024
The MSCI Asia Pacific Ex-Japan Index (-4.8%) tumbled in January, underperforming the MSCI World Index (+1.1%) as weak performances in HK, China and South Korea dragged the former. Japan (+8.4%) had an incredible showing in January as renewed risk-on sentiment helped lift Japanese blue chips to record highs. Malaysia (+4.0%) had its best month in quite a while as strong foreign flows into blue chips breathed fresh excitement into markets pushing the index into levels unseen since Aug’22.
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Navigating the Challenges of Scope 3 Emissions
Article |9 February 2024
Asia’s strategic role in the global supply chain is underscored by its historical access to cost-effective labour, a robust manufacturing infrastructure, close proximity to major markets in Europe and North America, and supportive government policies, positioning the region as a key player in the worldwide drive towards net zero. In the pursuit of sustainable supply chains, Asia has witnessed significant progress made during the global stocktake at COP28 UAE conducted by the United Nations Climate Change. The need for intensified efforts from businesses to measure and address their carbon emissions is underscored by mounting global regulations, including the IFRS Foundation and International Sustainability Standards Board (ISSB) Standards that came into effect on January 1, 2024.
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2023 Malaysia’s ESG Wrap & and Outlook for 2024
Article |5 February 2024
In 2023, Malaysia experienced significant developments in the realm of ESG (environmental, social, and governance). Starting with the launch of Bursa Malaysia’s Bursa Carbon Exchange (BCX) in March and the announcement of National Energy Transition Roadmap (NETR) in July, the momentum continued with the ESG-focused Budget 2024 unveiled in October. Later that month, the Energy Efficiency and Conservation Bill was passed, underscoring the commitment to sustainable practices. A noteworthy milestone came in December 2023 when Malaysia, during COP28, pledged to achieve a 45% reduction in carbon emissions by 2030 compared to 2005 levels, reinforcing the country’s dedication to addressing climate change.
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Unlocking Opportunities: The Wood Dragon Year and its Impact on Investments
Article |29 January 2024
Chinese Astrology follows a 12-year recurring cycle, where each year is symbolised by an animal, forming the 12 zodiac signs. Interestingly, each zodiac sign is associated to one of the five main elements each year (known as ‘Wu Xing Concept’): Gold (Metal), Wood, Water, Fire, and Earth. This configuration results in a 60-year cycle referred to as the ’60 Jia Zi.’ Following a Water Rabbit year (2023), the Wood Dragon, along with other elemental Dragons, comes once every 60 years. What significance does a Wood Dragon year hold?
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Investment Insights and Strategy Series by Phillip Capital Malaysia – January 2024
Article |12 January 2024
Global markets sustained robust momentum in December, buoyed by the moderation of US inflation data. This development fuelled market expectations for a pause in the rate hike cycle in 2024 and potentially a fresh rate cut as early as March 2024.
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Farewell, 2023, and Greetings to 2024! (2.0)
Article |8 January 2024
Building upon the article released last week, we are zooming into Five themes that investors should closely monitor in 2024.
Theme 1: Peaking interest rates bode well with equities; Emerging markets (EM) stand to benefit the most
Following an extended period of aggressive tightening, we anticipate the Fed’s interest rate policy normalizing in 2024, shifting to moderation before potential rate cuts. Faster-than-expected US inflation decline (Figure 1) empowers Fed to recalibrate, averting a hard landing and creating room for easing amid a potentially challenging global growth outlook.
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Farewell, 2023, and Greetings to 2024!
Article |2 January 2024
In 2023, notable events unfolded, such as the Regional Banking Crisis in March and the subsequent suspension of the US Debt Ceiling in late May/early June. In China, substantial growth challenges, particularly in the property sector, emerged, marked by Country Garden’s missed coupon payment.
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ESG Gaining Momentum in Malaysia
Article |22 December 2023
Development in ESG is ever-evolving, staying current to align with global developments. In Malaysia, from National Energy Transition Roadmap (NETR) to the Budget 2024, there is a surge of initiatives and regulations surrounding ESG. In our recent coverage, we delved into the topic of ESG Reporting for SMEs, Green Sukuk and other related topics.
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Investment Insights and Strategy Series by PhillipCapital Malaysia
Article |18 December 2023
Global markets have rebounded strongly in November with the 10-year U.S. Treasury yield stabilising around the 4.40% range after hitting 5% a month ago, reflecting a shift in market expectations towards a potential end to the Fed’s rate-hiking.
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Malaysia’s Progress in Green Sukuk
Article |1 December 2023
The Malaysian bond and sukuk market are strategically positioned to offer essential financing for productive and socially responsible projects. Malaysia has pioneered the issuance of Green SRI Sukuk since the introduction of the Sustainable & Responsible Investment (SRI) Sukuk framework in 2014. In 2017, Malaysia issued the world’s first green SRI sukuk – to finance the construction of large-scale solar photovoltaic power plants in Kudat, Sabah. Since then, Green SRI Sukuk as a funding instrument has gained widespread appeal in Malaysia.
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Investing in Fixed Income Assets
Article |24 November 2023
In November’s FOMC meeting, the Fed maintained the FFR at 5.25-5.50%. US Treasuries faced heavy losses in October, with the 10Y UST hitting 5.00% but have now retreated to 4.39% as at 22 November. The anticipation of a prolonged tight monetary policy into the next year was the main factor behind the increased yields. Robust 3Q2023 US GDP performance reinforced investors’ expectations of the sustained tight monetary policy throughout the coming year.
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Malaysia’s Pioneering Role in ESG Reporting for SMEs
Article |20 November 2023
While ESG reporting is frequently associated with listed companies, it is important to recognise the increasing awareness that ESG considerations are pertinent to businesses regardless of the sizes, including Small and Medium-sized Enterprises (SMEs). The Securities Commission (SC) of Malaysia, through its affiliate Capital Markets Malaysia (CMM), has introduced a Simplified ESG Disclosure Guide (SEDG) aimed at assisting SMEs in global supply chains with the disclosure of ESG data and information. Malaysia takes pride in being the global pioneer in implementing such a guide.
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Investment Insights and Strategy Series
Article |10 November 2023
Global markets have remained weak throughout October, dented by concerns about higher interest rate, with the 10-year U.S. Treasury yield briefly exceeding 5% after 16 years. Investors remain cautious due to concerns about the global economy and geopolitical tensions, particularly the possibility of the Israel-Hamas conflict escalating and causing supply disruptions in the broader Middle East and beyond.
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Malaysia’s Flood Mitigation Revolution
Article |3 November 2023
The continuous rain in Malaysia has become quite a regular affair lately. Just half an hour of rain and we are already talking about potential flash floods. Malaysia’s susceptibility to heavy rains, exacerbated by urbanisation and deforestation, has strained existing drainage systems, leading to rapid water accumulation and subsequent flooding. It is a serious reminder for the importance of flood mitigation projects.
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Navigating Opportunities: Israel-Hamas Conflict, 2024 U.S. Recession (?), & U.S. Presidential Election
Article |27 October 2023
Markets are playing catch-up to the new regime with the bond yields have surged to 16-year highs. The markets now believe central banks would not swiftly relax policies due to global supply challenges. They are expected to stay tightened to counter inflationary pressures. However, it is essential to consider that inflation is decreasing as pandemic-related imbalances are resolving.
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ESG Efforts in Budget 2024
Article |23 October 2023
In Budget 2024, the Malaysian government continues its dedicated efforts towards sustainable development and energy transition, implementing a range of Environmental, Social, and Governance (ESG) initiatives. Certainly, there are numerous initiatives outlined in the Budget, but in this write-up, we only emphasise a few of them.
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MALAYSIA BUDGET 2024 – A Pragmatic Budget
Article |16 October 2023
The tabled Budget 2024 themed “Reformasi Ekonomi, Memperkasakan Rakyat” (the Budget) with 3 key focus areas 1) best governance for agile services, 2) economic restructuring for boosting growth and 3) enhancing the quality of life for the people.
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Navigating Market Challenges: Opportunities Amidst Global Uncertainties
Article |11 October 2023
Global markets remained weak throughout September, with MSCI World declining -4.6% due to challenges in the US markets, including labour union strikes and government shutdown fears. In addition to that, the market’s expectations were dashed as the Fed’s hawkish stance raised concerns about prolonged high interest rates, hence prompting the spike in bond yield and dollar strength.
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Sustainable Funds Regain Momentum in 2023
Article |4 October 2023
In Morgan Stanley’s most recent report “Sustainable Reality”, it is highlighted that during the first half of 2023, sustainable funds returned to their historical trend of surpassing traditional funds in performance after some underperformance in 2022 (see Figure 1). Specifically, sustainable funds recorded a robust growth of 6.9%, while traditional funds lagged behind at 3.8%.
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Malaysia Market Update Post State Election
Article |25 September 2023
Malaysia’s equity market has shown increased resilience following the state election. Foreign investors were net buying Malaysia equities, with net inflows of RM1.4bn in July, RM140.8mn in August and RM270.3mn as of September 18, 2023 MTD. As of September 19, 2023, the FBMKLCI has recorded a 1.18% gain since August 14, 2023, which was shortly after the state election.
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NETR Launch – Steps towards Sustainable Green Economy (Part 2)
Article |18 September 2023
In our previous article, we discussed the first stage of the National Energy Transition Roadmap (NETR), which the government introduced on July 27, 2023. The unveiling of the second phase on August 29, 2023, marked a significant step forward in Malaysia’s journey towards a low-carbon future. Both two phases are viewed as Malaysia’s commitment to transitioning towards cleaner energy, and have the potential to catalyse the development of technical expertise and the generation of employment opportunities within Malaysia’s burgeoning green economy.
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Charting Malaysia’s Future: NIMP 2030 – A Blueprint for Resilient Industrial Transformation and Sustainable Growth
Article |8 September 2023
On September 1st, Prime Minister Anwar Ibrahim introduced the New Industrial Master Plan 2030 (NIMP 2030), an industrial policy for the manufacturing and manufacturing-related services sectors spanning seven years until 2030, focusing on 6 high-impact sectors, namely aerospace, chemicals, electrical & electronics, electric vehicles, pharmaceuticals, and advanced materials. The masterplan aims to generate a substantial impact on Malaysia’s economy, with projected contributions of RM587.5 billion to the total GDP by 2030, representing a remarkable growth of 61% compared to 2022.
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Strategic Positioning for ESG-Conscious Investors
Article |4 September 2023
When investors are interested in ESG-themed (Environmental, Social, and Governance) investments, there are several sectors they can consider for their investments. These sectors have gained attention due to their strong alignment with ESG principles and the potential for both financial returns and positive impact.
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ESG: Catalyst for Enhanced Valuations and Profitability
Article |28 August 2023
ESG isn’t just about sustainability – it’s a catalyst for better valuations and profitability. Companies embracing ESG principles are commanding higher returns, managing risks, innovating for efficiency, and building strong reputations.

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What’s next for China & Malaysia
Article |11 August 2023
With Country Garden missing recent debt payments, investors have raised concerns about the recovery in the housing market and the broader economy. Not only that, July saw a widespread weakening of data in various sectors, which can be attributed to the slow revival of domestic consumption, the property downturn, and persistent challenges from the global economic environment. The growth rate of retail sales and industrial production decelerated in July, even as traditional offline services were gradually resuming normal operations. Despite recent efforts to relax policies, the property market downturn persisted, leading to reduced demand for loans.

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ESG: Catalyst for Enhanced Valuations and Profitability
Article |28 August 2023
ESG isn’t just about sustainability – it’s a catalyst for better valuations and profitability. Companies embracing ESG principles are commanding higher returns, managing risks, innovating for efficiency, and building strong reputations.

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What’s next for China & Malaysia
Article |11 August 2023
With Country Garden missing recent debt payments, investors have raised concerns about the recovery in the housing market and the broader economy. Not only that, July saw a widespread weakening of data in various sectors, which can be attributed to the slow revival of domestic consumption, the property downturn, and persistent challenges from the global economic environment. The growth rate of retail sales and industrial production decelerated in July, even as traditional offline services were gradually resuming normal operations. Despite recent efforts to relax policies, the property market downturn persisted, leading to reduced demand for loans.

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NETR Launch – Steps towards Sustainable Green Economy
Article |11 August 2023
The government has recently introduced the first phase of the National Energy Transition Roadmap (NETR). This roadmap outlines the strategy to expedite the nation’s shift from a conventional fossil fuel-driven economy to a more sustainable green economy. The plan encompasses 10 flagship catalyst projects and 6 key energy transition drivers, namely energy efficiency, renewable energy, hydrogen, bioenergy, green mobility, and carbon capture, utilisation, and storage (CCUS). Collectively, the successful implementation of the plan would have the potential to generate significant investment opportunities for energy transition, ranging from RM435 billion to RM1.85 trillion by the year 2050. According to source, Part 2 of the NETR will be unveiled in August, with a focus on establishing the low-carbon pathway, national energy mix, targets for emission reduction, and the steps required for energy transition.

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Global Central Bank Actions and Asian Market Resilience: July 2023 Recap
Article |4 August 2023
The Fed raised the Fed funds rate (FFR) by 25bps to 5.25%-5.50% in July’s FOMC meeting. However, Fed Chair Powell did not give a clear indication that the additional rate hike projected in the June median dot plot would be delivered. He stressed that any future rate decisions would depend on the data received before the September meeting. This data includes two CPI reports, two labour market reports, the Q2 Employment Cost Index (ECI), and core PCE inflation. While investors are divided on the outlook ahead, we anticipate that we are approaching the end of the rate hike cycle and that a pause is likely imminent.

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The Rising EV Trend in Malaysia
Article |31 July 2023
Malaysia is dedicated to reinforcing its commitment towards achieving net-zero carbon emissions by as early as 2050. The country possesses a well-defined plan and a comprehensive ecosystem, along with abundant competitive resources, to bolster the clean energy industry, particularly in supporting the growth of electric mobility. Tesla has recently made its official entry into the Malaysian market, spearheaded by the introduction of the Tesla Model Y.

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Malaysia – Look for Silver Linings
Article |21 July 2023
In 2023, the stock market has been dominated by a select group of mega-cap US tech companies, commonly referred to as the “magnificent 7.” These companies include Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, and Meta (formerly known as Facebook). Their strong performance has left little room for other markets to outshine the US market. In our local market, the FBM KLCI index has experienced a decline of 5.94% year-to-date when measured in local currency terms and nearly 9% in USD terms.

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De-dollarization, is it Happening?
Article |21 July 2023
About 60% of global central banks have their reserves in USD, many commodities are traded in USD and close to 70% of all financial transactions are in USD. As such, there is no indication USD will lose its dominant position any time soon but we do see its position deteriorating gradually.

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Breaking the Cycle of Emotional Investing: Strategies for Better Decisions
Article |20 July 2023
Emotions play a significant role in our decision-making processes, and when it comes to investing, they can have a profound impact on our ability to make rational choices. Emotions such as fear, greed, and overconfidence can cloud rational judgment and lead to irrational investment decision-making. In stocks market for instance, one of the most common emotional responses that affect investment decisions is the fear of missing out (FOMO), which can cause individuals to buy high and sell low.

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The Influence of ESG Factors on Consumer Behaviour and Brand Perception
Article |7 July 2023
Consumer attitudes have undergone a noticeable transformation in recent years, as an increasing number of individuals actively prioritise sustainable and socially responsible products and services. This shift signifies a growing recognition among consumers of their ability to effect positive change through their purchasing decisions. Interestingly, this trend has become even more pronounced during the pandemic, as people have developed a heightened sensitivity towards the environmental consequences of their shopping choices. Consequently, companies are stepping up to meet these evolving consumer demands.

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Navigating Global Economic Landscape and Uncovering Opportunities in 2H2023 and Beyond
Article |3 July 2023
As widely expected, the Fed paused its hiking campaign in June, However, according to the Fed’s Dot Plot projections, the interest rates may potentially reach as high as 5.6% before the conclusion of 2023. The Fed members have revised their outlook for economic growth, with the Summary of Economic Projections now indicating a projected GDP gain of 1%, an increase from the previous estimate of 0.4% in March. Furthermore, officials have become more optimistic regarding unemployment, anticipating a year-end unemployment rate of 4.1% as opposed to the 4.5% forecasted in March.

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When EV meets ESG
Article |26 June 2023
In recent years, the world has witnessed a growing emphasis on sustainable practices across various industries. One notable area experiencing this paradigm shift is the automotive industry, which is rapidly transitioning to an electric vehicle (EV) future, with increasing integration of Environmental, Social, and Governance (ESG) principles. This transition carries significant implications for vehicle assemblers, component manufacturers, extractive industries-and responsible investors.

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A review of Malaysia’s market and strategies for investors to navigate during challenging times
Article |16 June 2023
During times of weak market conditions, investors encounter challenges in remaining invested. Taking Malaysia market as example, the FBM KLCI Index experienced a decline of 2.0% in May and 7.2% year-to-date (YTD), underperforming many other markets and most ASEAN peers except Thailand.

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Embracing Social Responsibility for Sustainable Growth
Article |9 June 2023
In today’s rapidly evolving business landscape, companies are increasingly recognising the importance of Environmental, Social and Governance (ESG). This involves fostering a corporate culture that places emphasis on certain elements within the “Social” pillar of ESG, including Health and Safety, Labour Standards, Employee Benefits as well as Diversity and Inclusion.

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Navigating Global Markets: Debt Ceiling Concerns, China’s Recovery, and Investment Opportunities
Article |2 June 2023
Global markets traded mixed in May as investors watched for signs of progress in the US debt ceiling negotiations ahead of the June 1 deadline. To recall, the debt ceiling has been raised nearly 80 times since 1960, indicating that it is not something new and it is just a recurring practice to adjust the limit on the amount of debt the US government can incur (see Figure 1).

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ESG Investing in The Era of Chaos
Article |26 May 2023
According to Morningstar Direct’s “Q1 2023 Review on Global Sustainable Fund Flows”, global sustainable funds attracted USD 29 billion of net inflow in the first quarter of 2023, down from nearly USD 38 billion in the previous quarter.

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Malaysia’s Progress Towards Carbon Neutrality
Article |19 May 2023
According to a recent report by MSCI Inc., the percentage of public companies disclosing Scope 3 emissions has risen to 35%, a 5% increase since October last year. Additionally, almost half of these companies (44%) have established decarbonisation targets, which is 8% higher compared to last year’s figures. We have seen the number of global public companies making climate commitments has steadily grown this year.

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Regular Savings Plan (“RSP”) A Steady Hand for Your Financial Future
Article |19 May 2023
A Regular Savings Plan (“RSP”) is the key to build long-term wealth. By investing a fixed amount of money on a regular basis, RSP takes advantage of dollar-cost averaging and compound interest to maintain a disciplined, long-term outlook.

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The Resilience of Asia
Article |8 May 2023
Although the world economy is expected to face a challenging year with global growth decelerating and inflation remaining high and the ongoing war in Ukraine, and banking strains in the US and Europe adding to the complexity, the Asia-Pacific region continues to display dynamism and resilience.

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An Overview of Fixed Income Outlook in 2023
Article |18 April 2023
Fixed income markets experienced a sharp selloff in 2022, but this has led to improved yields and valuations. As attention shifts from inflation to slowing growth and the potential for a recession, fixed income’s defensive nature may attract more investors.

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Examining the Commodities Market: Risk and Opportunities
Article |10 April 2023
The recent upheaval in the global banking industry has triggered a new black swan to global growth outlook. As a result, the International Monetary Fund (IMF) has lowered its previous projections for worldwide GDP growth, with estimates now at +2.8% for 2023 and +3% for 2024, down from +2.9% and +3.1% respectively.

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Printing of Money by Governments
Article |10 April 2023
The Ministry of Finance said it has no intention to use debt monetisation or the method of selling government bonds to Bank Negara Malaysia (BNM) directly as a financing strategy. Nevertheless, BNM has mop up more government bonds, from 1% of total government bond issuance to over 6%.

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Understanding Quality Investing and Why It Matters?
Article |7 April 2023
What is Quality Investing? Investors who advocate a quality approach to investing prefer high-quality companies that generate free cash flow and a reasonable return on equity. Aside from that, investors consider other aspects of the business such as management stability, the uniqueness of the business model, and product reliability. While we previously discussed various investment styles such as Value, Growth, Dividend, ESG, Size, Momentum and Quality, this article will specifically focus on Quality Investing.

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Large Cap vs. Small Cap: Understanding the Differences and When Size Matters
Article |31 March 2023
Large-cap stocks are stocks of established, well-known companies with high market capitalisation. These companies have a proven business model, a stable earnings outlook, and a long operating history. They typically have a more extensive trading volume and a significant institutional investor base due to their established reputation, which results in a more stable price performance.

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Q & A Outlook for January 2023
Article |3 January 2023
2023 is the year of Water Rabbit and is predicted to be a year of hope. Hence, will the Water Rabbit bring us what we lacked in 2022, which is peace and success, as we navigate through the looming global recession?

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Yinson Holdings Bhd (“Yinson”) – “An Ever Transitioning Energy Behemoth”
Article |9 December 2022
The recently secured FPSOs with higher charter rates due to tight FPSO market is slated to elevate Yinson earnings moving forward. FPSO Agogo is just one step away from official award as it received upfront prelim capex funding from its client. We recommend Yinson a BUY ON WEAKNESS for its ability in generating recurring, long-term income stream. Currently trading at FY24 PE of 10.6x vs. its 5-yr average PE of 20.1x, we deem it attractive to participate in a recurring, exciting growth business.

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BuyOn Intrinc Value
Article |6 December 2022
Many blue chips across most exchanges saw their share prices fallen sharply over the past one year. Recent market recovery resulted in sharp percentage recovery of some share prices but they are still far away from previous high. When the dust settles, these quality shares will reward investors with strong capital gain eventually

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Anwar-Led Unity Government
Article |24 November 2022
For the first time in Malaysian history, no coalition obtained enough seats to form a government with a simple majority after GE15. Subsequently, a unity government is established, led by Dato’ Seri Anwar Ibrahim, who is declared to be the 10th Prime Minister of Malaysia. How will this new political landscape affect the Malaysian market?

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Financial Piranhas Prey on Currencies
Article |30 September 2022
Following the aggressive hike in US interest rates, currency traders have been selling non-US currencies intensively, especially those that are slow in increasing interest rates. In 2017, the USD subsequently dipped for a year even when the Fed was still raising the fed funds rates.. Will USD retreat while the Fed continues its rates hike until next year to tame the inflation?

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US Administering Financial Chemotherapy to Fight Inflation
Article |9 November 2022
Inflation is an economic disease and it is affecting every facet of the American life. To tame the current raging inflation, the US has administered its usual financial chemotherapy i.e. to raise interest rate in order to slow down demand but in the process causing a general weakness to the economy. The present aggressive hike in interest rates will eventually bring the US economy to its knee and in the process even cause a recession.

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Financial Piranhas Prey on Currencies
Article |30 September 2022
Following the aggressive hike in US interest rates, currency traders have been selling non-US currencies intensively, especially those that are slow in increasing interest rates. In 2017, the USD subsequently dipped for a year even when the Fed was still raising the fed funds rates.. Will USD retreat while the Fed continues its rates hike until next year to tame the inflation?

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Surviving Stock Market Warfare
Article |17 August 2022
We are facing stock market warfare every day and fighting the bull and bear at every level. The war between the bull and bear in the stock market continues as they digest various economic information, corporate news and political development. One thing for sure, after a bear, there comes a bull.

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Investors Rush to Buy Gold on Dip, What about Shares?
Article |08 July 2022
Investors tend to rush in to buy gold whenever the price fall. Investors seem to be rational when making decision on buying gold. The same does not seem to happen to share investment. When the market falls, there are opportunities for long term investors with holding power to pick up quality shares that are sold down under the pressure of weak market sentiment.

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USD Up, All Currencies Down
Article |11 May 2022
The rate hike in the US resulted in stronger USD and weaker ringgit, which has depreciated by 4.6% against the USD at end-Apr 2022. The higher US Treasury yield has resulted in lower yield spread vis-à-vis Malaysian bond. As a result, foreign funds have started to exit our bond market lately; however, they seem to remain comfortable with our equities market.

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US Reveals its Financial Weapon
Article |15 April 2022
The main reason why the world is able to continue to grow at low inflation rate for the past 30 years is due to the benefit of globalisation where each country specialises on goods and services, which they are more competitive at and delivering them at the cheapest price. The regular impositions of sanction by US on unfriendly countries and excluding a country from the SWIFT (Society for Worldwide Interbank Financial Telecommunication) financial settlement system such as on Russia recently may have forced many countries to review their reliance on other foreign countries for the provision of strategic goods and services.

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Russian-Ukraine War
Article |15 March 2022
As we enter into year 2022, we know we are facing a highly infectious yet less fatal Omicron variant and higher inflation led by rising commodity prices, which are in part due to delivery disruption. The higher-than-expected inflation has caused the Federal Reserve to hasten its interest rate hikes in the US. Now we are facing another uncertainty i.e. the Russian-Ukraine war, which has fuelled to the already escalating global inflation as Russia is a major commodity producer and exporter especially crude oil and gas.

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AmInvestment: Russia Invasion of Ukraine – Event Update
Article |28 February 2022
On 24th February, Russian President Vladimir Putin announced a military operation in Ukraine to defend separatists in the Donbas region. Russia called on Ukrainian soldiers to lay down their arms and justified the invasion by claiming a “genocide” in east Ukraine. In response, US President Biden warned of “consequences” for Russia and said the world would “hold Russia accountable” for its actions. NATO’s chief has also condemned Russia’s “reckless and unprovoked attack” on Ukraine.

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The Russia-Ukraine Conflict – What to Expect?
Article |25 February 2022
Russia has officially declared war against Ukraine (Fig 2) amid its decision to join NATO which was aimed to counteract the threat of post-war Russian expansion in Europe. The launch of military invasion includes missiles, tanks, artillery and jets.

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Goodbye 2021 but Not to Covid-19
Article |23 December 2021
While we are getting ready to bid farewell to the year 2021 but we cannot say goodbye to Covid-19 yet especially with the emergence of the highly infectious new Omicron variant in November. We have been expecting life and businesses to revert to new normal soon with more economies opening up. The expected strong recovery of the global economy has to scale back a little with rising infection from the new and highly contagious virus. This is an additional challenge on top of the other challenges such as rising inflation, high commodity prices, disruption in global shipping, US QE tapering, rising interest rates, confrontation between US and China, political transition and imminent general election domestically. The challenges sound extensive but we have experienced numerous market uncertainties in the past too.

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Accept Covid-19 as Part of Our Ecosystem
Article |25 October 2021
As more people are vaccinated and protected against the Covid-19, many governments have decided to open up their economies and allow life to go back to normal gradually. A third vaccination is being planned to further protect the people against Covid-19, which is becoming part of our ecosystem, whether we like it or not. As for investment, we are confronted with the risks and all investment products that offer higher returns have risks. We have to understand the risks like the way we understand the virus. Every step we take, be it in the daily life in the midst of Covid-19 epidemic or the attempt to secure higher return than the near-zero banks fixed-deposit rates, there is calculated risk. To protect ourselves, we need to understand what and where are the risks.

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Apex: Fund Managers’ View
Article |03 August 2021
  1. Market focus continued very much centered on China’s tightening regulatory stance We warned in last week’s commentary We are likely at the beginning rather than closer to the end of this heightened regulatory scrutiny by the Chinese government Sectors deemed to powerful and/or in control of more data on the Chinese people than the government herself will continue to be at risk of negative action The bad news is dominant passive outflows is leading this sell out of Asian equity markets The good news is that this broad indiscriminate sell off will present opportunities to buy into others who have suffered from this collateral damage

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Apex: Fund Managers’ View
Article |28 July 2021
  1. This week’s US Federal Reserve FOMC Meeting was a non-event; Chair Jerome Powell played the delicate balance to ensure no serious market dislocations as was experienced in last month’s meeting. The US equity markets reacted as though there was no FOMC Meeting.

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Apex: Fund Managers’ View
Article |21 July 2021
  1. The world does not appear out of the woods with this Covid-19 pandemic. The US is now starting to see a resurgence of new Delta variant cases with rising hospitalisations and deaths. The UK, reopening on the 19th July, with removal of face masks and social distancing rules, will be another test-bed. It is for this very reason that we have been of the view that the US Federal Reserve has a concern over the sustainability of this economic recovery momentum in her monetary policy. For the developed world, it is the high expectations of economic normalisation against the possibility that the new normal may not be the same old normal. For the emerging world falling so far behind the developed world in her struggles towards normalisation, a longer run away of easy monetary conditions may actually allow us to narrow the gap.

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Apex: Fund Managers’ View
Article |13 July 2021
  1. US Treasury Secretary Janet Yellen, whom I call the tag team partner of US Federal Reserve Chair Jerome Powell, spoke at the conclusion of the G 20 Meeting of Finance Ministers She expressed concerns that a sustained economic recovery for a very connected world can be undermined very quickly by new variants of Coronavirus that are proving to be more infectious In other words, the US economic health can only be as strong as its weakest global link Slower than expected economic recovery in the rest of the world will eventually drag down the growth momentum of the US

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Apex: Fund Managers’ View
Article |06 July 2021
  1. Singapore’s newest strategy is to accept that Covid-19 virus is here to stay, like the common flu. Singapore will gun for mass vaccination, and soon stop counting the daily new cases, remove quarantine measures, and get on with life as normal. Likewise, the Israel and UK experiences are that vaccination does not prevent breakthrough cases but prevent severe illness and stress to the health care system. Thus, the UK also plans to exit Covid-19 lockdown and remove emergency Covid-19 laws mandating face masks and social distancing. Emerging countries, many in Asia, found themselves starved of vaccine supply hoarded by the developed nations. Mass vaccination is slowly but surely accelerating, Malaysia hopefully will move towards a similar Covid-19 strategy like Singapore.

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Apex: Fund Managers’ View
Article |28 June 2021
  1. One of my favourite movies from the 1990 s was Groundhog Day* starring Bill Murray and Andie MacDowell Perhaps this movie is no longer as favoured, as I feel more Bill Murray-ish a monotonous, unpleasant, repetitive wake up to the ‘same’ day. This last week, Australia locking down half the country, has proven that a Covid Zero strategy of closing your international borders, more rigorous testing, and stringent quarantine measures does not work It feels the same too here in Malaysia, like we all woke up to the same morning, a few months after we thought we are past seeing our own shadows* The silver lining, as we have continuously highlighted, is the greater urgency to push through mass vaccination With mass vaccinations, we would like to believe that the worst is more likely behind us than ahead of us

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Apex: Fund Managers’ View
Article |08 June 2021
  1. As investors, we want to know the eventuality of Covid-19 and how this will affect the investment environment. In a year’s time, Covid-19 will come to betreated as the common flu that we have lived with for centuries. Covid-19 is here to stay and Asia’s Covid-19 resurgence is evidence that zero cases is impossible. Vaccination and herd immunity is the way to go, many Asian countries should reach this milestone by year-end or early next year. FMCO, MCO, CMCO, RMCO will be finally behind us. Vaccination is free; the Government is saying that there cannot be anymore economic disruptions. Life goes on….. we will be back to the old normal.

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Apex: Fund Managers’ View
Article |01 June 2021
  1. Has the US Federal Reserve’s monetary tapering talk begun? What does the US Federal Reserve do when she does not want to do anything? Play the good guy and also play the bad guy, a pre emptive measure against inflation expectations San Francisco Fed President Mary Daly said in a CNBC interview “We are talking about talking about tapering”, echoed also by Fed Vice Chairs Richard Clarida and Randal Quarles It is even more telling when Clarida called April’s consumer price report an “unpleasant surprise”, i e we are watching very closely Meanwhile, another Fed Governor Lael Brainard said “the path of reopening and recovery like the shutdown is likely to be uneven and difficult to predict, so basing policy on outcomes rather than the outlook will serve us well Inflation can go up, hopefully transitory, and it is a deliberate policy choice, but the fear of inflation cannot go up We are of the view that those who think that Fed action may happen sooner than later may find it happening later than sooner

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Apex: Fund Managers’ View
Article |25 May 2021
  1. What has emerged from the latest FOMC meeting minutes confirmed all along what we have suspected about the US Federal Reserve; that she has started to think about thinking of tapering. The 64 million dollar question on most minds has to be for how long will the US Federal Reserve continue to be accommodative? Yet, US Federal Reserve Chair Jerome Powell would still have you believe that tapering discussion has yet to happen? This tells us that the US Federal Reserve is just loathe to even make the slightest change to its policy guidance. The greatest uncertainty yet is how sustain able is this Covid-19 improvement and the risk that any resurgence undermines a still fragile economicrecovery. In other words, reflating is a deliberate policy choice. The market narrative will need to develop confidence the US Federal Reserve can balance growth momentum with manageable inflation.

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Apex: Fund Managers’ View
Article |18 May 2021
  1. This commentator generally refrains from political opinions However, politics have largely framed our investment perspective for the last 4 to 5 years that it bears some ranting The Israeli Palestinian conflict is of upmost concern to everyone watching the horrific unfolding with each passing day The United Nations (UN) Security Council charged with preserving international peace and security has pushed for a condemnation of the situation and a de escalation of fighting Yet the US, as one of five members on the UN Security Council with veto power over anything they don’t like in the Security Council, has kept using this veto power to block any form of formal reaction,reaction,”preferring to use its own diplomatic powers to calm things down” The seeds of empowerment for Israel were sowed when previous US President Donald Trump made the decision to relocate the US Embassy from Tel Aviv to Jerusalem, a recognition of Jerusalem as the capital of Israel This tells us that if you are an ally of the US, you can get away with anything you want As much as the political outreach of China across the South China Seas is a concern for all, its also a matter of self interest to the US Asian equity markets for the past 4 to 5 years have come to include this prolonged US China trade tension as an important driver for positioning and performance Many Asian nations will dread the day when we are asked to pick sides from this cross fire and face the consequences.

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Apex: Fund Managers’ View
Article |11 May 2021
  1. This global economic recovery is the most uneven recovery in history, the most disparate between the rich and the poor And until the worst off of this Covid 19 pandemic are lifted out of this mess, it is highly unlikely that the US Federal Reserve can be in a position to reverse the course of monetary accommodation Nonetheless, there is certainly some froth in certain asset markets that have the US Federal Reserve concerned

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Apex: Fund Managers’ View
Article |04 May 2021
  1. Nothing has changed from the US Federal Reserve until it has to change. In last week’s FOMC meeting, the US Fed remained committed to the promised US $120 billion of asset purchases monthly. The US Fed also remained of the view that rising in flation in the coming months will be transitory. Therefore, it is still not time yet to talk about reducing policy accommodation. However, what may have struck concern for investors is the mention of froth in some asset markets. What to me is more note worthy is the comment that recovery is uneven and far from complete. Good headline economic numbers are one thing, the completeness of recovery is only as good as your weakest link. Between froth and the worst-off, the punch bowl will likely not be taken away until the worst-off are liftd up together.

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Apex: Fund Managers’ View
Article |27 April 2021
  1. We are positive one merging markets. Nonetheless, there will be a period of short-term uncertainty due to the US Federal Reserve’s policy direction. This is a good opportunity to invest if there is a period of market weakness.

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Apex: Fund Managers’ View
Article |20 April 2021
  1. WHO made a valid point. As we had highlighted in last week’s commentary, WHO has condemned what it describes as a “shocking imbalance” in the distribution of vaccines between the high-and low-income countries. However, the implication extends beyond what WHO sees as a “catastrophic moral failure”. The US may have moved a head of the rest of the world in its vaccine roll-out but an uneven and patchy global economic normalisation will under mine the sustainability of her own economic recovery. We are too integrated to survive alone.

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Apex: Fund Managers’ View
Article |13 April 2021
  1. New US Treasury Secretary Janet Yellen appears to be re-engaging the world with renewed American alliance, but this out reach is not without self-interest. Hard power means able to tell the rest of the world the USA needs a harmonised global minimal tax rate to help her finance her massive US$2.3 trillion infrastructure plan. Its a losing proposition to attract returning and foreign investments to create jobs for the masses when you are the only country having to raise taxes in the coming years. The whole world has become ‘American taxpayers’.

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Apex: Fund Managers’ View
Article |30 March 2021
  1. Equity markets globally oscillated between risk-on optimism and risk-off pessimism. On one side, economic normalisation should bring about a recovery but which threatens run-away inflation, forcing the hands of the US Federal Reserve to tighten monetary policy earlier than expected, bringing an end to this amazing equity rally. On the other hand, escalating new Covid-19 cases across Europe is forcing various Governments to go into renewed lockdowns (ditto possibly the rest of the world too), the risk that any monetary normalisation will be premature and derail the fragile recovery.

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Apex: Fund Managers’ View
Article |15 March 2021
  1. In handling the Covid-19 pandemic, the US has jumped from being the worst back of the queue under President Trump to the front of the line. It makes so much difference, not just because suddenly we have a more rational President in Biden, but also when you can muscle your way to the front of the supply line for vaccines. It is a genuine concern that the US economic recovery will surprise on the upside forcing the US Federal Reserve’s hands on her commitment to keep rates at zero-bound till 2023. How soon is too soon for this rate reversal? Sometime within 2021 will spook the markets.

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Apex: Fund Managers’ View
Article |9 March 2021
  1. There is a tussle between state and markets. The elephant in the room is INFLATION. New US Treasury Secretary Janet Yellen spoke this week of the market concern of big inflation a rising out of the US $1.9 trillion Covid-19 support package. In her own words, “I really don’t think that’s going to happen”. Her tag-team partner US Fed Chair Jerome Powell and the Fed team agree.

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Apex: Fund Managers’ View
Article |2 March 2021
  1. We are at an interesting cross-road. The previous stimulus checks sent US January’s retail sales growth above the market’s expectations. It is very likely that the upcoming potential US $1.9 trillion support package will sustain consumer optimism once more. The IMF in January has US GDP growth for 2021 at +5.1% yoy. The US Fed’s December 2020 forecast for US GDP growth 2021 was +4.2% yoy. Both forecasts look way behind the curve now. The market is of the view that monetary tightening may take place sooner rather than later.

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Apex: Fund Managers’ View
Article |23 February 2021
  1. Democrats are said to be pushing for as much as US 3 trillion new spending from wide ranging job support programs to an infrastructure policy, on top of the US 1 9 trillion Covid 19 package seeking support from the House this week At the same time, new Treasury Secretary Janet Yellen is pushing for higher corporate taxes (read not wealthy individuals yet though) to fund increased Government debt obligations

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Apex: Fund Managers’ View
Article |16 February 2021
  1. The KLCI closed at 1,606 @ 16.02.21, down -3.8% M-o-M. Lastweek, Industrial Metal & Mining (+4.9%) and Banks (+3.3%) were the best performing sectors. Meanwhile, Healthcare (-5.9%) and REITs (-1.7%) were the worst performing sectors. Year-to-date @ 05.02.2020, the KLCI has declined by -1.7%.

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Apex: Fund Managers’ View
Article |09 February 2021
  1. The KLCI closed at 1,586 @ 9.02.21, down -3.8% M-o-M. Last week, Technology (+4.5%) and Oil&Gas (+3.8%) were the best performing sectors. Meanwhile, Healthcare (-0.9%) was the worst performing sector. Year-to-date @ 05.02.2020, the KLCI has declined by -3%.

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Apex: Fund Managers’ View
Article |02 February 2021
  1. The KLCI closed at 1,580 @2.02.21, down -3.8% M-o-M. Lastweek, Technology (+7.5%) was the best performing sectors while Industrial, Metals & Mining (-5.7%) and Construction (-4%) were the worst performing sectors. Year-to-date @27.01.2020, the KLCI has declined by -2.9%.

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Apex: Fund Managers’ View
Article |26 January 2021
  1. The KLCI closed at 1 575 26 01 21 down 3 2 M o M Last week, Technology 4 5 was the best performing sectors while Healthcare 5 3 and Oil Gas 3 2 were the worst performing sectors YTD 21 01 2020 the KLCI has declined by 2 0

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Apex: Fund Managers’ View
Article |19 January 2021
The KLCI closed at 1,605 @ 19.01.20, down -1.6% M-o-M . Lastweek, Technology (+8.9%) and Healthcare (+7.2%) were the best performing sectors while Utilities (-2.6%) and Oil & Gas (-1.1%) were the worst performing sectors. YTD @14.01.2020, the KLCI has increased marginally by 0.5%.

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Apex: Fund Managers’ View
Article |12 January 2021
The KLCI closed at 1,612 @ 12.01.20, down -0.8% M-o-M. Lastweek, Healthcare (+6.1%) were the best performing sectors while Construction (-7.6%) and REITs (-4.7%) were the worst performing sectors. YTD @ 12.01.2020, the KLCI has increased by 0.4%.

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Apex: Fund Managers’ View
Article |20 October 2020
  1. The KLCI closed at 1,511 @ 20.10.20. The stock market has declined by -1.1% since the end of the previous month. Utilities (-2.3% WoW) and Food & Beverages (-1.2% WoW) were the worst performing sectors in the last one week. YTD-2020, the KLCI has declined by 4.7%.
  2. Apple launched 4 new IPhone 12 models with 5G capabilities on 13 Oct 2020. As mobile phones move from 4G to 5G, the complexity of devices increase as more sub-components are required per device. As several Malaysian technology companies are exposed to the Apple supply chain, this news is a positive catalyst for a number of our technology holdings such as Inari and Pentamaster. Not surprisingly, these stocks have rallied since the new Apple 12 launch. Aside from the Apple launch, the future proliferation of 5G, artificial intelligence, gaming applications and work from home arrangement are among the trends that are bullish for the sector. We maintain an overweight position in technology sector.

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Apex: Fund Managers’ View
Article |6 October 2020
  1. The KLCI closed at 1,509 @06.10.20. The stock market has declined by 1.6% since the end of the previous month. Utilities (-2.9% WoW) and Food & Beverage (-1.9% WoW) were the worst performing sectors in the last one week. YTD-2020, the KLCI has declined by 5.8%.
  2. At a PE of 17.4x for 2020, Malaysia’s PE premium to the Asia ex-Japan region has fallen to zero – the lowest level in the last 5 years. The above is partly due to the market’s “E” or earnings integer which has been upgraded due to the glove sector. The market’s eps integer for 2020 has risen from circa $76 in Jun-20 to $86 currently.

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Kenanga: Investing in Local Tech
Article |2 September 2020
The local technology sector has been one of the biggest winners on the local bourse since it plummeted in March, thanks to the Covid-19 pandemic. While the Bursa Malaysia Technology Index saw a dip then, it has since recovered to hit a 16-year high on Aug 11, outperforming the FBM KLCI.

This interest in the tech sector follows close on the heels of the global rally in tech stocks. Investors are betting on the accelerated digitalisation trend triggered by the pandemic, which has restricted movement and thus increased the popularity of digital services.

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Apex: Fund Managers’ View
Article |1 September 2020
  1. The KLCI closed at 1,521 @01.09.20. The stock market has declined by 3.4% since the end of the previous month. Banks (-3.0% WoW) and healthcare (-2.3% WoW) were the worst performing sectors in the last one week. YTD-2020, the KLCI has declined by 2.1%.
  2. Malaysia recorded a 3.1% YoY grow thin exports in July-20 (vs 8.0% in Jun-20). This is the 2nd consecutive month of positive export growth. The segments which performed strongly were electrical and electronics (9.2% YoY), palm oil (52.0% YoY) and optical & scientific equipment (9.9% YoY).

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Apex: Fund Managers’ View
Article |25 August 2020
  1. The KLCI closed at 1,555 @25.8.20. The stock market has declined by 0.6% since the end of July. YTD-2020, the KLCI has declined by 0.7%. Bursa’s daily turn over by value increased further in August while retailers continued to be very active.
  2. Parliament approved an increase in the Federal government debt ceiling from 55% to 60%. This is to accommodate the spending for the stimulus measures as a result of the Covid-19 pandemic. Malaysia last raised its debt ceiling in July 2009 during the Global Financial Crisis (GFC) when the debt limit was raised from 45% to 55% of GDP. Higher indebtedness and the possibility of a wider fiscal deficit is a risk for the Ringgit.

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Apex: Fund Managers’ View
Article |18 August 2020
  1. The KLCI closed at 1,568 @18.8.20. The stock market has risen by 1.4% since the end of the previous month. Last week, the technology (-5.3% WoW) and healthcare (-15.5% WoW) were the worst performing sectors. YTD-2020, the KLCI has declined by 1.5%.
  2. Malaysia’s 2Q Gross Domestic Product (GDP) contracted by -17.1% YoY. This was the steepest fall since the Asia Financial Crisis in 1998  (GDP -11% YoY). Malaysia GDP contraction was the worst among its regional peers eg. Singapore (-13.2% YoY), Philippines (-16.5% YoY), Indonesia (-5.3% YoY) and Thailand (-12.2% YoY). This was because Malaysia was one of the earliest countries to impose a strict lock-down of the economy. The output loss during the Mandatory Control Order period was estimated at RM900 mil to RM1.4 bil a day.

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Apex: Fund Managers’ View
Article |11 August 2020
  1. The KLCI closed at 1,565 @11.8.20. The stock market has risen by 1.4% since the end of the previous month. Last week, the technology (+10.9% WoW )and healthcare (+7.8% WoW) sectors out performed. YTD-2020, the KLCI was unchanged.
  2. Last week, former Prime Minster Tun Dr Mahathir announced that he will be forming a new political party. The organisation will not align witheither Pakatan Harapan or Perikatan Nasional. The political situation in Malaysia remains fluid. We are under weight companies which rely on winning government contracts for their revenues.

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Apex: Fund Managers’ View
Article |28 July 2020
  1. The KLCI closed at 1,609 @28.7.2020. The stock market has risen by 6.3% since the end of the previous month. YTD-20, the KLCI has risen by a modest 1.1%.
  2. For the week ended 24.7.2020, the best performing sectors were healthcare (+20%), small caps (+4.3%) and technology (+3.9%).

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Apex: Fund Managers’ View
Article |14 July 2020
  1. The KLCI closed 1,599 @14.07.20. The stock market has increased by 1.7% since the end of the previous month. YTD-20, the KLCI has declined by-0.3%. The market’s daily turnover has averaged RM4.8 bil in July (vs RM4.6 mil in June) as local retail participation remained very active.

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Apex: Fund Managers’ View
Article |8 July 2020
  1. The KLCI closed 1,584 @08.07.20. The stock market has increased by 4.3% since the end of the previous month. YTD-20, it has declined by 3.3%.
  2. Bursa’s average daily turn over value (ADTV) in June was RM4.6bil vs RM4.3bil in May (ADTV was RM1.93bil in 2019). Retail participation in June remained healthy at 33.5% vs 32.4% in May.

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Apex: Fund Managers’ View
Article |30 June 2020
  1. The KLCI closed 1,501 @30.06.20. The stock market has risen by3.8% since the end of the previous month. YTD-20, it has declined by 6.3%.
  2. The World Bank has revised Malaysia’s 2020 GDP growth from negative0.1% to negative3.1%.

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Fund Update: Affin Hwang World Series – Global Income Fund
Article |28 May 2020

Affin Hwang World Series – Global Income Fund (“AHWS-GIF”) provides investors with regular income through investments in global fixed income instruments that produce an attractive level of income while maintaining a relatively low risk profile, with a secondary goal of capital appreciation. AHWS – GIF invests in to the PIMCO GIS Income Fund.

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Maybank Bluewaterz Total Return Fund
Article |28 May 2020
How did the Maybank Bluewaterz Total Bond Fund (BWZ) perform recently?

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JomSembangwith MAMG: LIVE!
Article |28 May 2020
If you missed the Zoom Webinar, here are some of the questions from our session on 20thMay 2020 for your reference.

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MAYBANK GREATER CHINA ASEAN EQUITY-I FUND (MGCAEI)
Article |22 May 2020
In April, markets had seen quite a strong and rapid rebound. However, the recovery may not be sustainable as the Covid-19 risk is still around and there could be a second of wave profit taking as investors began to assess weak corporate earnings and economic data. Furthermore, the lower oil prices as well as the US-China “blame game” could add more uncertainties into the already fragile markets. However, having said that, we do not expect any sell-off to be as bad as it was in March given the support and measures provided by governments and central banks globally.

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2020 PHEIM’s Market Strategy
Article |22 May 2020
“Pheim has a strong presence in Asian having successfully emerged from various crises that had plagued the region in past. What were the strategies that worked then and will it still work in this age of widespread misinformation and prevalence of technology?”

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Will Outperformance Continue?
Video |22 May 2020
In case you missed it, do click on the link below to watch the Jom Sembang with MAMG: LIVE!

Watch Video

Time to Watch TV (Trump Volatility)
Article |21 May 2020
The world is now focusing on the recovery of the economy as more and more countries are gradually lifting the lockdowns.  Chart 1 clearly shows that when the lockdown was lifted in China, its PMI, which is an indicator of economic activities also improved. With presidential election in November and less than 6 months for campaign, President Donald Trump has shifted his focus from combating COVID-19 to re-election, re-igniting trade war with China to gain support.

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Will Outperformance Continue?
Article |21 May 2020
In the past month, the world witnessed a historic fall in global stock markets as countries are battling to curb the spreading of Covid-19 pandemic. Besides the tragic human impact, the implication of such unknown pandemic runs deeply into economic growth. The lockdown imposed has put an abrupt end to the longest economic expansion in US and expected to push the world economy into deepest downturn since the Great Depression of the 1930s.

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Maybank Greater China ASEAN Equity-i Fund (MGCAEI)
Article |21 May 2020
In April, markets had seen quite a strong and rapid rebound. However, the recovery may not be sustainable as the Covid-19 risk is still around and there could be a second of wave profit taking as investors began to assess weak corporate earnings and economic data. Furthermore, the lower oil prices as well as the US-China “blame game” could add more uncertainties into the already fragile markets. However, having said that, we do not expect any sell-off to be as bad as it was in March given the support and measures provided by governments and central banks globally.

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2020 PHEIM’s Market Strategy
Article |08 May 2020
Value is in the eye of beholder. Share price depends on investors’ reactions. Whether the shares will perform sooner or later will depend on how accurate is one’s assessment. With the sharp market correction in the second half of February 2020 to the later part of March, year to date, equity unit trust investors are seeing negative returns. Your return depends on your judgement to buy at low prices.
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Jom Sembang with MAMG: Episode 2
Video |08 May 2020
Are we expecting another sell down? Mr. Ahmad Najib Nazlan (Jon), our CEO for Maybank Asset Management Malaysia talks about the possibilities of a 2nd wave in the financial markets with our regional fund managers. Check out the video in the link below:
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China: Into a Legend Part 3 – In -37 world of Crude Oil Treasure
Article | 27 Apr 2020
The week started with an epic oil crash on Monday (20 April), when the May West Texas Intermediate (WTI) futures contract hit as low as US$40.32/barrel (Chart 1), one day before the contract expired on Tuesday. As the dust settled and the May WTI futures contract price recovered,
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China: Into a Legend Part 2
Article | 21 Apr 2020
China will be the new legend after COVID-19. Although we are currently not over-optimistic on global economic recovery, we believe China will lead the world in both global economic and market growth post COVID-19. On 17 April, China announced that its 1Q20 GDP fell 6.8% YoY, slightly lower than consensus (Table 1).

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Maybank Asset Management: 2Q2020 Outlook & Strategy (MY)
Article | 8 Apr 2020
In January, Asian equity markets began the year on a positive note in anticipation of the signing of the ‘phase 1’ US-China trade deal.

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Maybank Asset Management: 2Q2020 Outlook & Strategy (SG)
Article | 8 Apr 2020
The first quarter of 2020 proved to be a dismal and challenging quarter for the financial markets. After a challenging 2019, mainly due to the concerns surrounding the deterioration of global economic growth as the US-China trade war continued to escalate throughout the year, many were expecting some degree of recovery. Unfortunately, things took a turn for the worse as 2020 prove to be unprecedentedly challenging.

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Affin Hwang Capital Asset Management: A Brief On Global & Local Markets, Investment Strategy
Article | 6 Apr 2020
Global equity gauges endured a rather choppy week as the number of Covid-19 cases continue to rise globally as Markets weigh the economic toll of the pandemic. The S&P 500 declined by 2.1% over the week; where as in the region, the Hong Kong Hang Seng and broader MSCI Asia ex-Japan index slipped by 1.1% and 1.4% respectively.

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China: Into A Legend
Article | 1 Apr 2020
China will be the new legend after COVID-19 because we believe it will lead the world in both global economic and market recovery.

Although WHO recently declared COVID-19 which is caused by SARS-Cov-2 virus as pandemic on 11 March 2020, we still believe that China will be the first to recover as seen in the rebound of its March official manufacturing and non-manufacturing Purchasing Managers’ Index (PMI) of 52.0 and 52.3 respectively.
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Covid-19 and Malaysia Banking Industry
Article | 1 Apr 2020
The spread of the highly contagious Covid-19 has sent financial markets into a tailspin and thus creating fears of a global recession. The impact of the virus has now extended beyond China and to the rest of the World. Globally, the number of Covid-19 cases has surpassed 700,000 with more than 34,000 deaths.
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The Collapse of Crude Oil Prices and Its Implications to Malaysia Oil and Gas Industry
Article | 1 Apr 2020
Figure 1 shows the global demand and supply for Oil and Gas (O&G) from 1993 to 2019. For the past 20 over years, the spread between demand and supply has been very consistent. However, things will be different for year 2020 due to COVID-19 virus which dampen the demand and the oil war between Saudi Arabia and Russia which disrupt the supply chain and this will lead to a major disparity in the demand and supply for O&G.
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COVID-19: The Black Swan of the Century
Article | 30 Mar 2020
The COVID-19 pandemic has turned the world upside down. While things in China are already turning the other direction, the rest of the world is experiencing what China had two months ago. Widespread containment measures have disrupted economies around the world, creating fears of a global recession.
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Special Investment Commentary Covid-19
Article | 25 Mar 2020
As a result of the global Covid-19 pandemic outbreak, markets around the world have declined sharply in a rapid and unprecedented movement. In reaction, we have seen loose monetary policy and stimulus measures announced by central banks, aiming to limit the economic impact of the pandemic outbreak.
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RHB Asian Income Fund Update
Article | 25 Mar 2020
Equities were the main detractor from performance (-16%), as concerns over the outbreak weighed on markets and sentiment. While typically stocks with growth exposure would suffer more in normal market sell-off, some of these names have actually outperformed this time especially those in China and for the internet sector.
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Merry Brexmas and Happy Investing
Article | 13 Dec 2019
Merry Brexmas! With Conservatives becomes be the largest party in the House of Commons with an outright majority, this would mean a safer passage of the Withdrawal Agreement Bill (WAB) through parliament and also being able to counter some of the likely amendments that may be proposed to be added to the WAB, by those keen to hold the PM to account on his Brexit policy, and indeed potentially for the government to pass amendments that guarantee in law no extension to the transition period
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PMB_Hitech, 2020 Gold Medalist
Article | 25 Nov 2019
Historically, Olympic Games have been a platform for a number of technological innovations which drove economy growth and equity performance of technology sector. 1960 Rome Olympics pioneered live broadcasting, 1964 Tokyo Olympics saw the debut of live satellite broadcast and 2012 London Olympics marked the point where smartphones became a mainstream live viewing platform.
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MALAYSIA BUDGET 2020 – Bracing through the Storm in an Equitable Manner
Article | 14 Oct 2019
The tabled Budget 2020 themed “Driving Growth and Equitable Outcomes towards Shared Prosperity” is very much centred on the Government’s Shared Prosperity Vision 2030 (SPV 2030) blueprint launched earlier to boost the country’s economic development.
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Oil Inferno: Short-term Shock?
Article | 17 Sept 2019
The oil production facilities in Saudi Arabia were attacked by drones and missiles on 14 September 2019, Brent crude oil price increased by 11.3% to USD67/bbl on Monday (16 September 2019), the largest single-day rally in more than a decade.
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Trump Loves Properties, Do You?
Article | 27 Aug 2019
  • With the intensification of the US-China trade dispute, President Trump’s “orders” US companies suspend all trading with China. If this is his ultimatum in negotiations with China and if fails, global economy will be driven into an almost certain downturn.
  • Under such scenario, risk averse investors will seek for alternative investments that generate yield such as REITs (real estate investment trusts) because REITs are perceived as less sensitive to market fluctuations.

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Trump, the Santa Claus
Article | 14 Aug 2019
U.S headline Consumer Price Index (CPI) rose 0.3 percent in July, firmer than the average increase of 0.1 percent in the prior 12 months but in line with the consensus estimate.

However, prices of computers and smart-home assistant devices provided a surprise with increase of 2.8% MoM. This jump was the largest since this category was broken out in 2005 and may due to US-China trade uncertainty.

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Noises or Ultimatum?
Article | 07 Aug 2019
  • On 6th August 1945, the United States (U.S) detonated “Little Boy” on Hiroshima and subsequent days, “Fat Man” was dropped at Nagasaki which ultimately ended the Pacific War.
  • Since 1st August 2019, financial markets are also exposed to explosions that are as destructive as in August 1945.
  • Are these explosions mere noises towards election or an ultimatum to Federal Reserve Chairman Jerome Powell and China?

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MALAYSIA BUDGET 2019 – Restoring the Malaysian Economy as an Asian Tiger
Article | 05 Nov 2018
Budget 2019 themed “A Resurgent Malaysia, A Dynamic Economy, A Prosperous Society” was tabled by the Finance Minister on 2 November 2018 and generally it is within expectations. In fact, we were expecting a broadly punitive budget as both the Prime Minister and Finance Minister alluded a budget with more taxes and “…expect some pain and even offer some sacrifice” during the Malaysia: A New Dawn Investors’ Conference, a month ago. read more

 

Trade War : Who cares
Article | 12 Mar 2018
 US decided to imposed tariffs of 25% and 10% on selected steel and aluminium imports, respectively. Importantly, Canada and Mexico were excluded. This is notable as 23.7% of steel imports and 41.5% of aluminium imports come from Canada and Mexico. The tariffs will take effect in about 15 days. Trump administration’s strategies are likely (1) a midterm election strategy, (2) a trade negotiation ploy, and (3) a way to reduce the US trade deficit (reduce imports and increase domestic production). read more

 

2018 TheEdge – Thomson Reuters Lipper Fund Awards
Article | 5 Apr 2018
Over the years, Phillip Mutual Berhad has offered award winning funds, through our business partners, on our funds platform. This year is no different as our business partners have won 47 from 71 individual awards and 4 from 7 group awards in the 2018 TheEdge – Thomson Reuters Lipper Fund Awards.read more