Kuala Lumpur, 8 July 2019 – The annual FSMOne Recommended Unit Trust 2019/20 been held recently at Pavilion Hotel, Kuala Lumpur. During the event, General Manager of FSMOne, Wong Weiyi commented on the issue and performance of Malaysia’s equity market.
In regards to the current market landscape, Weiyi mentioned that the market regime is highly influenced by the development and progress of policies concerning global trades. He also highlighted that Malaysia’s equity market as represented by FBM KLCI index was the bottom performing market.
Disruptions on business operations are imminent and are likely to cloud the earning prospect of these listed companies over first half of 2019, but thing may turn for the better for the rest 2019.
“As the central bank across the developed markets are shifting towards more dovish stance, this could also help ease the liquidity condition and reverse the foreign fund flowing back into emerging markets, which may benefit Malaysian equities”said Weiyi.
The British index provider FTSE Russell has announced to place Malaysia Government Securities (MGS) under review for its World Government Bond Index amid liquidity concern. This has impacted the MSG segment and spark minor selloff in Ringgit.
The current situation is fluid and any potential outcomes are difficult to anticipate. As such, the volatile regime is likely to stay for the rest 2019. Weiyi reminded the investors to be more cautious on the market fluctuations.