can i buy etf on malaysian fsm?

Fitch downgrade unlikely to impact Malaysian financial markets, says RHB

KUALA LUMPUR (Dec 7): RHB Research Institute Sdn Bhd said Fitch Ratings’ downgrade of Malaysia’s Long Term Foreign Currency Issuer Default Rating (IDR) to BBB+ from A- is unlikely to impact its financial markets on a sustained and significant basis.

In a note today, the research house said Fitch’s rating downgrade is unlikely to be followed by S&P and Moody’s in the next few months.

“We believe, post the Covid-19 pandemic, Malaysia’s fiscal authorities are likely to engage in a comprehensive fiscal consolidation strategy.

https://www.theedgemarkets.com/article/fitc...arkets-says-rhb

will this foretell the directions to be of some of our Malaysians FI UT?

  my Nomura  for example ?  

Small dip just hang tight. YTD still 5+%

can i buy etf on malaysian fsm?

will this foretell the directions to be of some of our Malaysians FI UT?

  my Nomura  for example ?  

Nomura already loss for the past 1 month

Maybe that is due to rotation to risk on.

Anyone got a feeling a correction is coming ?

Yea I kinda do. There was no meaningful correction since the rally in April.

What does a Biden Presidency mean for global markets?



What financial assets will benefit from the impending macro backdrop?

1. US Cyclical and small-cap equities
Looking forward, we are increasingly positive on a robust rotation into US cyclicals and small caps stocks.

We are expecting a US fiscal stimulus (with a focus on infrastructure investment) to be passed post-election – albeit smaller than expected. The post-election stimulus packages (which is expected to include infrastructure, healthcare and environmental initiatives) will likely be well-received by investors, thereby driving positive growth expectation and outperformance in cyclicals and small cap names.

At the same time, the cheaper valuations for small cap and cyclicals relative to the better-performing large cap and growth stocks so far also serve as a compelling reason for investors to take a closer look at these segments.

2. Asian equities and fixed income
It is no secret that we favor Asian assets this year, given the improving economic fundamentals across 2nd and 3rd quarter. We expect the stronger economic growth in Asia is likely to translate into further upward revisions in earnings in the Asian equities ahead.

With most government bonds in developed nations near zero now, Chinese government bonds are looking increasingly attractive in our view with almost 3% yield-to-maturity. While currency weakness is typically the main draw against China onshore bonds, we expect the CNY to strengthen moderately against the USD over the longer term ahead – a plus for Asian High yields and China government bonds.

Related Products – Affin Hwang Select Asia (Ex Japan) Opportunity Fund and Principal Asia Pacific Dynamic Fund

3. Emerging market and cyclicals assets

We are turning more positive on EM equities on improving risk appetite and global growth prospects ahead. Firstly, weakness in USD ahead has historically been constructive for EM currencies and equities. Secondly, we expect global growth to continue recovering at a meaningful pace, which is positive for commodity prices. Oil and copper, which are closely driven by global demand prospect, are likely to benefit the most. Rising commodity prices are supportive of EM’s economic growth and positive EM assets.

Related Article –  FSM Fund Choice: Global Emerging Markets Opportunities [December 2020] 

Article link: https://www.fsmone.com.my/funds/research/ar...Insurance=false

Fitch rating downgraded. Do we expect lower bond price and drop in bond fund price?

Downgrade means higher risk of default, means investor demand a higher risk premium ( aka return ) for holding the bond.

Since bond coupon is fixed at the onset of its creation, the only way a seller can get a buyer to change hand is to sell it at a lower price to off set the demand for better price aka more discount.

In this sense, bond price will be lower which means bond fund NAV should go down in tandem.

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