Affin Hwang Capital Daily Insight (LV) - 3 June 2016 - KLCI / ECONOMY - ASEAN OUTLOOK

Top Calls

Strategy � KLCI (POSITIVE, maintain) - Battling perceptions Global growth, crude oil prices, China, Brexit and a federal-funds rate hike in the US have been sources of global market volatility. Of these, the rate hike will likely come into focus again. We find that Malaysia has been lumped into the same generic emerging markets basket. In reality, Malaysia faces little risks associated with a funds-rate hike. In addition, tepid global growth and weak domestic sentiment are weighing on GDP growth, but private consumption has been resilient despite this. We expect economic growth to pick up in 2H16 and fuel better corporate earnings, which have been lacklustre. Economic fundamentals remain strong, and we look for a gradual appreciation of the Ringgit; hence, we believe the recent sell-down on specific domestic issues presents another buying opportunity.

Other Calls

Economy � ASEAN Outlook � Weekly Wrap - Mixed trends in ASEAN PMIs, global PMI stays at 50

Morning News & Market Summary

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