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What’s Trending (June 2021)

Gold price takes top spot as the precious metal jumps 8.12% higher amidst on-going uncertainties clouding the global financial markets. The rapid spread of the Covid-19 virus continues to hold many Asian economies back. India, who has been plagued by record high cases, ended the month as the strongest performer in the Asian bloc. Strong performance from metal and energy stocks pushed the SENSEX 9.58% higher in MYR terms. China’s broader equity market also enjoyed a strong run (7.5% gain) during the month as encouraging economic data boosted investors’ sentiment. The same however, was not felt in Malaysia, where rising infection numbers led to another Movement Control Order, halting economic activities for the 3rd time.   

In the News

  • The US markets ended the month of May near all-time highs as risk appetite for US equities returned on hopes for a full economic recovery. 
  • Widespread vaccination rollout and relaxation of social distancing measures brought optimism to economic recovery, but was slightly dampened by rising inflationary pressures.
  • To date, around 52% of the population in the US has received at least one shot of the COVID-19 vaccine, while 42% of people in the US is now fully vaccinated.
  • Technology stocks underperformed the broader market in May, as investors transitioned into recovery plays. The broader S&P gained 1.61%, while the tech-focused Nasdaq dipped 0.5%, and the FANG+ Index slid 1.47% in MYR terms. The 0831EA, which provides -100% exposure into the index, gained from the weaker performance of the Index, and saw its NAV rise 1.68% last month.
  • In China, the broader market outperformed its US counterparts, with the Shanghai Composite Index and the CSI 300 Index gaining 7.53% and 6.67% in MYR terms respectively.
  • However, the S&P New China Sectors ex-A index lagged behind the broader market, as the central government’s crackdown on tech companies extended from the original tech giants Alibaba and Tencent, onto Pinduoduo and Meituan Dianping.
  • As a result, the index recorded a dip of 0.75% in MYR terms last month, leaving the 0829EA with a YTD loss of 0.04% in MYR terms.
  • Outside China, the sentiment in Asia was drastically different from its western counterparts, as various Asia Pacific countries faced a record-breaking surge in COVID-19 infections.
  • In Malaysia, the Full Movement Control Order (FMCO) was introduced to curb sky high infection rates, which surpassed India in infections per capita.
  • Concerns of rising case numbers saw the local bourse underperforming its regional peers, as the FBM KLCI index dipped 1.13%, while the Dorsey Wright Malaysia Technical Leaders Index dipped by 3.11%, leaving the 0836EA sliding3.3% lower over the month. 
  • With concerns looming over global financial markets, Gold price enjoyed a bull run in May. Gold outperformed equities as the weaker dollar performance and inflationary concerns brought the precious yellow metal near a five-month high.
  • In May, the LBMA Gold Price Index jumped of 8.12% in MYR terms, while the 0828EA, which tracks the index gained 7.84% in MYR terms throughout the month.

On the Economic Data Front

  • US economic data shows mixed recovery 
    • Inflation rates in April accelerated to its fastest rate in over 12 years, with CPI rising 4.2% from a year earlier. 
    • Federal Reserve policy makers have deemed the spike as transitionary, with expectations that rates will fall to 2% later this year. Fedsassured that action would be taken if proven otherwise.
    • 559,000 jobs were added in May, below consensus of 650,000; while employment-to-population ratio ticked higher.
  • China’s economic stability faces challenges
    • Inflationary pressures were felt strongly as measures for both input costs and the prices service providers charged rose to their highest points of the year. 
    • Manufacturing PMI rose to 52.0 last month, the highest level since December, up from April’s 51.9.
    • Services PMI fell to 55.1 in May, down from 56.3 in April but still well in expansionary territory.

ETF strategies at TradePlus

A look at the performance of TradePlus ETFs

Email disclaimer: This information has been provided for information purposes for the intended recipients only.  Information contained should not be copied, distributed, or otherwise disseminated in whole or in part without written consent from Affin Hwang Asset Management Berhad (“AHAM”). Information contains opinions, analysis, forecasts, projections, and expectations which has been obtained from various sources, including those in the public domain, and are merely expressions of belief. AHAM makes no expressed, or implied warranty as to the accuracy and completeness of any such information.  As with any forms of financial products, the financial products mentioned herein (if any), carries with it various investment risks. AHAM is not acting as an advisor or agent to any person to whom this communication is directed. Such persons must make their own independent assessments. Nothing in this communication is intended to be, or should be construed as an offer to buy or sell, or invitation to subscribe for, any securities.  Neither AHAM, nor any of its directors, employees or representatives are to have any liability (including liability to any person by reason of negligence, or negligent misstatement) from any statement, opinion, information, or matter (expressed or implied) arising out of, contained in, or derived from, or any omission from this communication, except liability under statue that cannot be excluded.  You may obtain further information regarding product details, risks, and full disclaimers for TradePlus products and its Benchmark Indices here.

What’s Trending (3rd May 2021)

The US financial markets continued its upward climb with the support of better than expected financial results, and optimism that the economy may be gradually shifting back into gear after being clouded by virus concerns for more than 1-year. Bond yields also climbed marginally higher towards the end of the month after staying quiet for the earlier part of the month. Conversely, the equity market in China took a hit when the government decided to crackdown on the tech sector.  On a broader scale, global financial markets had ended the month on a mixed note, while Gold price clawed back gains with the support of unresolved uncertainties.

In The News

  • Vaccination exercises has been taking place on a grand scale as governments worked together to combat the pandemic that has crippled the global economy for more than 1-year.  While many have seen a steady downward trend in number of infections since the start of the vaccination, India has made an appeal for help after suffering from record high cases, which has led to a collapse in its healthcare system. 
  • India’s equity market ended the month as one of the weakest performers in the region as it tumbled 4.9% lower in MYR terms. Its global counterparts have been banding together to provide support as the country battles with the virus – the US, Britain, and France already pledging to send in aid. 
  • Did you know that the S&P 500 Index saw its 5th consecutive monthly gain in April? Optimism surrounding earnings announcements had boosted consumers’ sentiment to push the performance of US equities higher.  There was mixed performance from the tech sector, with Facebook, and Alphabet launching ahead after reporting strong earnings and revenues.  The broader Nasdaq Index ended the month as one of the strongest performers with a 5.4% price gain in MYR terms in April. The NYSE FANG+ Index was a close runner up with a 5.1% rise over the same period, which contributed to the 0830EA’s gain of 8.9%. 
  • Global recovery is expected to continue as economies reopen their doors for business. US economist are already anticipating a double digit recovery for its consumer services. And to keep with the momentum, the US Feds have reiterated that rates will be kept low for the near-term, with no plans on pulling back the asset purchase program.
  • Over in China, crackdown on the tech sector dampened investor’s sentiment. The government imposed a wide-range of restrictions on some of the largest tech companies in China, including Tencent, Bytedance, JD.com, as well as Meituan Dianping. 
  • The consumption-focused S&P New China Sectors Ex A Share Index managed to eek out a 0.1% gain in price over the month of April, which contributed to the 0829EA ending in the green. 
  • Investors had largely stayed on the sidelines as many companies were delaying the release of their financial results – leaving investors to see a slew of suspended companies being scattered across the markets. 
  • Political uncertainties remain a stumbling block for Malaysia, with ongoing feud between fractions and parties keeping investors at bay. With more than 3,000 cases being reported daily, the rapid rise in number of cases has also left the Rakyat questioning if another movement control order would be on the cards to reduce pressure on the domestic healthcare sector. 
  • The local bourse is now down 1.6% YTD in MYR terms, while the 0836EA, which tracks 20 of the strongest momentum companies in Malaysia has managed to maintain a respectable 4.8% gain over the same period. 
  • With new strains of the virus being discovered, and global economies grappling to keep the virus at bay, uncertainties have continued to loom over global markets – leaving Gold price to steadily inch higher.  The 0828EA climbed 3.4% over the month in MYR terms as demand for Gold rose as investors took on a more cautious approach to safeguard the value of their assets. 

On the Economic Data Front

  • US economy back on track?
    • GDP for 1Q2021 was reported to have expanded at 6.4%. 
    • Unemployment rates improved with weekly jobless claims falling to pre-pandemic numbers.
  • Has China peaked?
    • China recorded a record 18.3% YoY GDP growth in 1Q2021
    • Though falling marginally, official manufacturing PMI remains in expansionary stage with a reading of 51.1 (down from 51.9 in March)
    • Caixin/Markit manufacturing PMI rises to an 11-month high of 51.9 in April – it’s strongest activity since December 2020.
    • Official composite PMI dips to 53.8 in April, from 55.3 in March

ETF strategies at TradePlus

A look at the performance of TradePlus ETFs ,and major global indices 

Email disclaimer: This information has been provided for information purposes for the intended recipients only.  Information contained should not be copied, distributed, or otherwise disseminated in whole or in part without written consent from Affin Hwang Asset Management Berhad (“AHAM”). Information contains opinions, analysis, forecasts, projections, and expectations which has been obtained from various sources, including those in the public domain, and are merely expressions of belief. AHAM makes no expressed, or implied warranty as to the accuracy and completeness of any such information.  As with any forms of financial products, the financial products mentioned herein (if any), carries with it various investment risks. AHAM is not acting as an advisor or agent to any person to whom this communication is directed. Such persons must make their own independent assessments. Nothing in this communication is intended to be, or should be construed as an offer to buy or sell, or invitation to subscribe for, any securities.  Neither AHAM, nor any of its directors, employees or representatives are to have any liability (including liability to any person by reason of negligence, or negligent misstatement) from any statement, opinion, information, or matter (expressed or implied) arising out of, contained in, or derived from, or any omission from this communication, except liability under statue that cannot be excluded.  You may obtain further information regarding product details, risks, and full disclaimers for TradePlus products and its Benchmark Indices here.

Economic Recovery | What’s Trending (16th Feb 2021)

Happy Lunar New Year from the team at TradePlus by Affin Hwang AM.

We started the year of the Ox with vigour as major indices in the US hit new highs, while equities in China outperformed its regional peers. Investors’ confidence grew on the back of slowing numbers from the pandemic, and optimism that the relationship between US and China would improve.  Leaders of the 2 major economies have already met, with President Biden signalling a possible pause to the tech ban previously imposed by the Trump administration. In Malaysia, recovery names took the spotlight following the relaxation of MCO2.0, along with a positive outlook for global economic recovery. 3 of TradePlus ETFs hit record high NAV for the second week in a row.

In The News

  • As the Covid-19 vaccines continue to reach the public, case numbers globally has seen an obvious downward trend. New reported cases have more than halved from a peak of over 800,000 daily cases in early January, to just over 300,000 daily cases now. 
  • US Federal Reserve Chair Jerome Powell reiterated policymaker’s intention to keep interest rates near zero, while continuing with USD120 billion in monthly asset purchases. With low interest rates, price to earnings (P/E) ratios for companies also rise, bringing a higher valuation to equities.
  • The downwards trending case numbers and increasingly aggressive rollout of the vaccine boosted US markets to fresh highs. In addition to that, better than expected earnings pushed the S&P 500 up by 0.49% in MYR terms. 
  • Among major indices, tech-focused Nasdaq hit record highs on Tuesday (9/2), outperforming other major indices over the week as it gained 0.98% in MYR terms. However, the FANG+ index managed to outperform the Nasdaq, boosted by performance in Twitter and Baidu as the latter announced a new mobility-as-a-service (MaaS) autonomous driving platform.
  • The FANG+ index posted 4.14% of weekly gains last week, meanwhile the 2x Leveraged 0830EA upped 8.44% over the week, with YTD gains of 28.72% in MYR terms, while ending the week at a record high NAV for the second consecutive week, at RM15.6985. 
  • Investors’ sentiment on the market has also grown stronger as ties between the US, and China improve. Since taking office, President Biden had his first phone call with President Xi of China, discussing various issues ranging from bilateral economic ties, to the pandemic and climate change. It is expected that President Biden’s approach to China will lean more towards cooperation with regional allies to tackle the Chinese competition.
  • The Biden administration also requested a hold on proceedings involving former president Donald Trump administration’s ban on Wechat and TikTok, citing the need for more time to review the proposed bans .
  • The anti-monopoly committee of China’s State Council recently issued formal guidelines regarding monopolistic behaviour by platform operators, in preparation to tighten controls on Chinese internet giants such as Alibaba and Tencent. 
  • In China, markets rallied ahead of the week long Chinese New Year holiday, as the PBOC released its monetary policy report to signal a neutral policy stance, while the MSCI announced the addition of 14 Chinese stocks into its Global Standard Indexes after its February review.
  • Meanwhile, the S&P New China Sectors Ex A Share Index ended the week with returns of 4.23% in MYR terms, with the 0829EA gaining 3.9% over the week to end at a record high NAV for the second week in a row, at RM9.9946. Since the start of the year, the ETF has generated returns of 21.64% in MYR terms.
  • Positive market sentiment in the US spilled over to local markets last week despite reporting a sharper than expected decline in GDP last quarter, as the prospects of a global economic recovery from the impact of the pandemic, coupled with the relaxation of MCO 2.0 brought gains to recovery names.
  • In 4Q2020, Malaysia’s economy shrank by 3.4% due to tightened restrictions to control the spread of the virus, as compared to a decline of 2.7% in the previous quarter.
  • Over the week leading up to the Chinese New Year holidays, the FBM KLCI rose by 1.32%, while returns of the Dorsey Wright Technical Leaders Malaysia MYR Index significantly outperformed the broader index with 2.14% of gains as positive momentum from last week continued on . 
  • The 0836EA, which tracks the said index ended the week 1.76% in the green, closing at another record high NAV of RM1.1336, recording YTD gains of 5.96%.
  • Last week, crude oil prices continued its rally as clearer signs of a recovery from pandemic brought prices of the commodity up by 3.84% last week in anticipation of increased economic activity. 
  • Gold prices continued to slide last week, as positive signs of recovery faltered demand for the precious metal. Price of the precious metal tumbled on Friday during the holidays, leaving the price of Gold to slide 0.22% lower in MYR terms, whilst the GoldETF was sheltered from the drop given the holidays.  The 0828EA, which tracks the LBMA Gold Price upped by 1.05% up till Thursday.

On the Economic Data Front

  • US shows mixed economic data
    • Core CPI data remained unchanged in January, below consensus estimates of a 0.2% increase.
    • Weekly jobless claims dropped to 793,000 but was caused by the revision in last week’s numbers from 779,000 to 812,000.
    • Preliminary gauge of consumer sentiment in February missed expectations at 76.2.
  • Europe economy shows weakness
    • UK’s economy officially contracted by 9.9% in 2020, the most since 1709, with expectations of continued contractions in Q12021 due to continuing lockdown restrictions.
    • The EC has forecasted that the economy will expand by 3.8% in 2021 and 2022, with this year’s projection revised lower.
  • China’s economic data shows continued recovery
    • CPI inflation in January rose 1.0% from December but turned negative from a year earlier.
    • Vehicle sales rose by 30% in January, marking its 10th month of increase.

ETF strategies at TradePlus

A look at the performance of TradePlus ETFs, and major global indices


Email disclaimer: This information has been provided for information purposes for the intended recipients only.  Information contained should not be copied, distributed, or otherwise disseminated in whole or in part without written consent from Affin Hwang Asset Management Berhad (“AHAM”). Information contains opinions, analysis, forecasts, projections, and expectations which has been obtained from various sources, including those in the public domain, and are merely expressions of belief. AHAM makes no expressed, or implied warranty as to the accuracy and completeness of any such information.  As with any forms of financial products, the financial products mentioned herein (if any), carries with it various investment risks. AHAM is not acting as an advisor or agent to any person to whom this communication is directed. Such persons must make their own independent assessments. Nothing in this communication is intended to be, or should be construed as an offer to buy or sell, or invitation to subscribe for, any securities.  Neither AHAM, nor any of its directors, employees or representatives are to have any liability (including liability to any person by reason of negligence, or negligent misstatement) from any statement, opinion, information, or matter (expressed or implied) arising out of, contained in, or derived from, or any omission from this communication, except liability under statue that cannot be excluded.  You may obtain further information regarding product details, risks, and full disclaimers for TradePlus products and its Benchmark Indices here.

What’s Trending (7th Dec 2020)

Global pandemic numbers rose by 3 million last week, bringing the grand total to over 67 million cases as governments and suppliers scramble to prepare for the distribution of vaccines. Hopes of a refreshed stimulus package in the US were reignited as senators proposed a bipartisan package worth USD0.9 trillion. US-China tensions continue, as the US announced more restrictions against US-listed Chinese equities and military linked-companies. Gold price rebounded throughout the week with hopes of new stimulus aid, rising infection in the US and the weakening dollar.

In The News

  • The world added over 3 million new coronavirus infections last week, bringing the total to over 67 million cases, with 1.5 million deaths recorded. The US saw record high daily infections for 3 days in a row, and reported over 2,000 deaths daily for two weeks.
  • Vaccine wise, Pfizer obtained approval from the UK for emergency use for its vaccine in the country, but was hampered by news of a supply chain disruption for the vaccine. However, it was later affirmed that the delivery for 50 million doses promised for this year continues to be on track.
  • Hopes for an added stimulus in the US was reignited last week after news that a bipartisan group of senate members proposed a USD908 billion package. The US Treasury, which previously requested the return of emergency lending funds from the Federal Reserve, urged legislators to tap into CARES Act funds to provide targeted relief. 
  • Positive momentum persevered in US markets last week, with all major indices ending the week at record highs. The best performing index last week was the tech-focused Nasdaq, recording 1.93% of gains throughout the week, while the S&P500 index gained 1.48% last week. 
  • However, the performance of the NYSE FANG+ Index was lacklustre as compared to its peers, gaining 1.48% in MYR terms last week as the prospects of a reopening led to a correction in bigger tech names. The 2x Leveraged 0830EA saw 3.01% return throughout the week. The ETF has generated a handsome YTD return of 134.55%. 
  • Chinese markets continued to see gains after PMI readings hit record highs, solidifying its recovery from the pandemic despite news that the US Defense Department added 4 more Chinese companies into its banned list of Chinese companies related to the military. Over the week, CSI 300 Index gained 2.24% while the Shanghai Composite Index were up 1.60% in MYR terms. 
  • However, there was a divide in performance of A-shares versus offshore Chinese equities, as the House of Representatives in the US accelerates its vote on a bill that would threaten Chinese equities listed in the US, potentially affecting companies like Pinduoduo and Baidu, which do not have a second listing outside of the US. 
  • As a result, the S&P New China Sectors Ex A Share Index, which invests into ex-A shares recorded a dip of 1.80% throughout the week, reacting to the negative news. While the 0829EA also dipped by 1.73% last week, the ETF is still recording YTD returns of 31.88% in MYR terms.
  • Locally, the broader market ended the week with 0.89% gains as market rotation activity continued, buying into stocks that would benefit from economic recovery and selling down healthcare names following more positive vaccine news. Throughout the week, the Dorsey Wright Technical Leaders Malaysia MYR Index managed to outperform the broader index, recording 3.94% of gains while the 0836EA followed suit, ending the week 3.46% in the green. 
  • Gold prices reversed its negative momentum last week, rebounding 1.54% throughout the week. The rebound could be attributed to the weakened dollar movement throughout the week, coupled with regained hopes of a stimulus package in the US and record high pandemic infection numbers. During the week, the 0828EA upped 1.51%, with a YTD return of 18.53% in MYR terms.

On the Economic Data Front

  • US economy slowing down, data shows
    • Non-farm payrolls growth recorded at 245,000, missing expectations by almost half.
    • Unemployment rate fell to a pandemic low of 6.7%, but could be partly attributed to a decline in labour force participation rate.
    • Pending home sales data shows drop for the second consecutive month in October.
  • China PMI readings shows extended recovery
    • Official manufacturing PMI numbers recorded at 52.1 in November, its 9th consecutive monthly growth.
    • Private manufacturing PMI recorded at 54.9, beating expectations to its highest gauge since 2010 as it records its 7th monthly consecutive expansion.
  • Brexit negotiations drag on, EU to push through recovery fund
    • Post-Brexit negotiations between the EU and UK continues as disagreements persists, while France threatens to veto if the deal does not align with its interests.
    • The European Commission plans to exclude Poland and Hungary from its pandemic recovery fund which is part of its proposed 7-year budget should objections persist.

ETF strategies at TradePlus

A look at the performance of TradePlus ETFs, and major global indices

Email disclaimer: This information has been provided for information purposes for the intended recipients only.  Information contained should not be copied, distributed, or otherwise disseminated in whole or in part without written consent from Affin Hwang Asset Management Berhad (“AHAM”). Information contains opinions, analysis, forecasts, projections, and expectations which has been obtained from various sources, including those in the public domain, and are merely expressions of belief. AHAM makes no expressed, or implied warranty as to the accuracy and completeness of any such information.  As with any forms of financial products, the financial products mentioned herein (if any), carries with it various investment risks. AHAM is not acting as an advisor or agent to any person to whom this communication is directed. Such persons must make their own independent assessments. Nothing in this communication is intended to be, or should be construed as an offer to buy or sell, or invitation to subscribe for, any securities.  Neither AHAM, nor any of its directors, employees or representatives are to have any liability (including liability to any person by reason of negligence, or negligent misstatement) from any statement, opinion, information, or matter (expressed or implied) arising out of, contained in, or derived from, or any omission from this communication, except liability under statue that cannot be excluded.  You may obtain further information regarding product details, risks, and full disclaimers for TradePlus products and its Benchmark Indices here.

What’s Trending (30th Nov 2020)

Vaccine companies continue to deliver positive news, as a third candidate, AstraZeneca has reported another positive trial results, casting hope for a foreseeable end to the pandemic despite raging increases in case numbers. Vaccine news, coupled with diminishing uncertainties on the political front in the US saw positive market sentiment globally throughout the week, as investors continued to turn to cyclical stocks that would benefit from a long term market recovery. Commodity wise, increased risk appetite from investors saw gold, the safe haven asset continuing its dip throughout last week while crude oil prices climbed for the 4th consecutive week. 

In The News

  • Vaccine optimism seemed to offset the continued surge in case numbers worldwide, as worldwide case numbers surpassed 63 million cases, with the US recording over 13 million cases.
  • Yet another vaccine candidate has announced its trial results; with AstraZeneca announcing an approximate 90% efficacy rate and the availability of up to 200 million doses of the vaccine worldwide. However, experts have voiced their concerns over the validity of the data following an error in test subjects.
  • Uncertainties on US politics took a turn for the better, as US president Donald Trump has authorised GSA, the agency in charge of the presidential transition in power to begin the transition process, giving the Biden transition team access to necessary resources.
  • Investors gained more confidence in US markets during its shortened trading week, continuing its rotation into cyclical stocks as reopening hopes perseveres. During the week, the S&P500 index recorded 2.27% gains, while the Dow Jones Industrial Index saw 2.21% gains  in MYR terms. Tech-focused Nasdaq continued to outpaced its peers, ending the week 2.96% in the green.
  • The NYSE FANG+ Index continues to outperform its peers, upping 3.93% in MYR terms last week. Among the constituents, Tesla contributed most of the gains, as the electric car maker continues to benefit from its inclusion into the S&P500. The jump in the index brought on a 8.57% gain in the 2x Leveraged 0830EA, with a YTD performance of 122.94%. 
  • Chinese markets saw gains as economic data continued to provide strong evidence of economic recovery from the pandemic, with the Shanghai Composite and the CSI 300 Index gaining 0.91% and 0.76% respectively throughout the week in CNY terms. However, due to currency fluctuations, the indices returned 0.11% and -0.04% respectively in MYR terms.
  • However, the Electric Vehicle (EV) sector jumped into correction territory following government state planner’s probe into property developer linked new EV projects. As a result, the S&P New China Sectors Ex A Share Index, which includes EV stocks as its constituents underperformed the broader market,  declining 0.07% in MYR terms, causing the 0829EA to also end 0.07% in the red in MYR terms.
  • In local markets, positive news outweighed the negative as the 2021 Budget, the largest in its history passed its first and most important hurdle in Parliament, coupled with continuous positive vaccine news. The government announced its preliminary purchase agreement with Pfizer to obtain 12.8 million doses of its vaccine.
  • However, pandemic numbers locally continued to hit record daily highs following a cluster that was discovered in glove heavyweight Top Glove’s dormitory facilities, which caused a shutdown in 27 of its factories.
  • The KLCI index continued its upward momentum to end the week 0.87% higher, while the DWA Malaysia Momentum Index continued to outperformed the broader market as positive momentum continued to show in markets. As a result the index saw 0.95% gains while the 0836EA ended 0.87% in the green.  
  • The MSCI AC Asia ex Japan IMI / EQ REITs HDY Tilt Cap Index continues to gain upwards momentum, as positive vaccine news continues to push market rotation into cyclical stocks, as investors gain confidence in the recovery of the REITs sector. Throughout the week, the index saw a further 0.99% in gains, with the 0837EA recording 1.06% of gains throughout the week. 
  • Gold prices dipped another 3.70% last week, as investor’s increased risk appetite saw further transition from the save haven asset into risky assets throughout the week. The 0828EA followed suit, dipping a further 3.71% last week in MYR terms. YTD returns of the ETF remains positive at 16.76%. 

On the Economic Data Front

  • US economic data fails to meet expecations
    • Initial jobless claims rose unexpectedly to 778,000
    • Consumer sentiment index numbers for November hits lowest since August, recording at 96.1.
    • Personal incomes in October dipped by 0.7%, offsetting the gain from September 
  • China PMI readings shows extended recovery
    • Composite PMI shows 0.4 growth to 55.7 in November 
    • Official manufacturing PMI numbers recorded at 52.1, a record high since September 2017
    • Retail PMI hit record highs since June 2012, recording at 56.4 
  • Eurozone reports contraction in economy due to tightened lockdown measures
    • Preliminary reports shows that manufacturing PMI dipped to a 3 month low of 53.6 in November

Services PMI slid to a 6 month low reading of 41.3

ETF strategies at TradePlus

A look at the performance of TradePlus ETFs, and major global indices

Email disclaimer: This information has been provided for information purposes for the intended recipients only.  Information contained should not be copied, distributed, or otherwise disseminated in whole or in part without written consent from Affin Hwang Asset Management Berhad (“AHAM”). Information contains opinions, analysis, forecasts, projections, and expectations which has been obtained from various sources, including those in the public domain, and are merely expressions of belief. AHAM makes no expressed, or implied warranty as to the accuracy and completeness of any such information.  As with any forms of financial products, the financial products mentioned herein (if any), carries with it various investment risks. AHAM is not acting as an advisor or agent to any person to whom this communication is directed. Such persons must make their own independent assessments. Nothing in this communication is intended to be, or should be construed as an offer to buy or sell, or invitation to subscribe for, any securities.  Neither AHAM, nor any of its directors, employees or representatives are to have any liability (including liability to any person by reason of negligence, or negligent misstatement) from any statement, opinion, information, or matter (expressed or implied) arising out of, contained in, or derived from, or any omission from this communication, except liability under statue that cannot be excluded.  You may obtain further information regarding product details, risks, and full disclaimers for TradePlus products and its Benchmark Indices here.

What’s Trending? (23rd Nov 2020)

The light at the end of the tunnel – at least on the pandemic front – appears more evident amid the release of more positive vaccine news; with both Pfizer and Moderna announcing that their respective vaccine candidates have an efficacy rate of above 90%. However, investors were still wary of the rising case numbers around the globe, signalling that things could get worse before it can get better. As a result, markets saw volatility throughout the week. Little change was seen week-on-week as investors weighed the good and the bad, while Chinese markets performed better than its western counterparts. Gold prices continued to slip albeit a falling dollar, as demand the precious metal weakened due to positive vaccine developments.

In The News

  • The world heard more positive vaccine news last week, as Moderna announced an efficacy rate of 94.5%, with Pfizer also revising its efficacy rate to 95%. Pfizer has filed for emergency use of authorisation for its vaccine with the U.S Food and Drug Administration, in hopes to start distribution next month.
  • However, the spike in cases worldwide is not showing any signs of slowing down, with the total number of infections worldwide approaching the 59 million mark with the US crossing the 250,000 mark of coronavirus related deaths.
  • Conflict sparked between the US Treasury and the US Federal Reserve with the former making a surprise request for the latter to return USD 455 billion of unused funds set aside for emergency lending programs, and the Fed expressing its disagreement on the request while reiterating the need for extended lending aid. 
  • US markets saw high volatility and choppiness as markets balanced the good and the bad. The S&P500 index ended the week in the red, dipping 1.49% in MYR terms while tech-heavy Nasdaq rebounded from its dip last week, outpacing the broader market to gain 0.11% in USD terms. However, the index saw -0.51% returns in MYR terms throughout the week due to the weaker dollar. 
  • The highly concentrated NYSE FANG+ Index outperformed the market to gain 0.11% in MYR terms over the week, with the 2x Leveraged 0830EA gaining 1.54% over the week, largely attributed to Tesla’s long awaited inclusion into the S&P500 index, bringing its stock price to fresh highs. The S&P Dow Jones Indices announced that Tesla Inc is set to be included into the S&P500 index in December, after being passed over it its last quarterly rebalancing in September. 
  • China has signed the Regional Comprehensive Economic Partnership (RCEP) with 14 other Asian countries, including Japan and South Korea to form a free trade area that will cover over 30% of the current global GDP, with expectations to reach 50% by the year 2030.
  • It is expected that the free trade agreement will see the elimination of approximately 65% of tariffs and quotas for regional trade in goods; with a targeted 90% removal in 20 years.
  • The Chinese market performed better than its US counterparts with the Shanghai Composite gaining 1.97% while the CSI 300 Index upped 1.71% in the week as investors’ risk appetite improved. The S&P New China Sectors Ex A Share Index ended the week with marginal gains of 0.14%, with the 0829EA gaining 0.04% in MYR terms.
  • On the local front, markets traded cautiously as investors reacted to the ongoing surge in pandemic cases and positive vaccine news, while trailing the market sentiment in the US. Throughout the week, the broader KLCI index ended the week mixed, inching 0.26% higher. 
  • The DWA Malaysia Momentum Index outperformed the broader market last week, with the index gaining 0.47% as glove heavyweights saw some buying momentum with the rising number of cases locally and worldwide, with the 0836EA also gaining 0.44%.  
  • The MSCI AC Asia ex Japan IMI / EQ REITs HDY Tilt Cap Index , gained 0.14% last week, continuing its positive momentum as more positive vaccine news saw investors gaining confidence in long term market recovery with the 0837EA ending 0.06% in the green. 
  • Gold prices slid 1.32% lower against the falling US dollar last week as the inflow of positive vaccine news hampered the demand for the safe haven asset. The 0828EA trailed the downwards trend, sliding another 1.36% last week in MYR terms, with YTD returns of 21.26%. 

On the Economic Data Front

  • US economic data shows need for additional support
    • Weekly jobless claims rose for the first time in over a month, recording at 742,000
    • Retail sales missed analyst’s expectations, recording its slowest growth pace since April at 0.2%
    • Housing data continues to provide good news, with sales and construction indicators hitting its highest levels in over a decade
  • China signals further stabilisation in its economy
    • China’s industrial output surpassed analyst expectations in October, growing by 6.9%
    • Retail sales also saw growth of 4.3%, albeit at a lower than expected pace
  • Japan shows strong economic rebound from the pandemic
    • 3rd quarter GDP surpassed expectations of 18.9%, recording at an annualised rate of 21.4%
    • Coronavirus stimulus proved effective as private consumption contributed largely in boosting domestic demand 

ETF strategies at TradePlus

A look at the performance of TradePlus ETFs, and major global indices



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Email disclaimer: This information has been provided for information purposes for the intended recipients only.  Information contained should not be copied, distributed, or otherwise disseminated in whole or in part without written consent from Affin Hwang Asset Management Berhad (“AHAM”). Information contains opinions, analysis, forecasts, projections, and expectations which has been obtained from various sources, including those in the public domain, and are merely expressions of belief. AHAM makes no expressed, or implied warranty as to the accuracy and completeness of any such information.  As with any forms of financial products, the financial products mentioned herein (if any), carries with it various investment risks. AHAM is not acting as an advisor or agent to any person to whom this communication is directed. Such persons must make their own independent assessments. Nothing in this communication is intended to be, or should be construed as an offer to buy or sell, or invitation to subscribe for, any securities.  Neither AHAM, nor any of its directors, employees or representatives are to have any liability (including liability to any person by reason of negligence, or negligent misstatement) from any statement, opinion, information, or matter (expressed or implied) arising out of, contained in, or derived from, or any omission from this communication, except liability under statue that cannot be excluded.  You may obtain further information regarding product details, risks, and full disclaimers for TradePlus products and its Benchmark Indices here.

What’s Trending? (16th Nov 2020)

The coronavirus pandemic was brought back into focus last week, as worsening case numbers in the US and Europe regions continue to spark concerns. However, the positive development on vaccines which saw efficacy rates that beat expectations by a large margin, triggered market rotation activity from WFH stocks to travel orientated names. In China, newly surfaced antimonopoly policies and refreshed geopolitical uncertainties contributed to the negative market sentiment. Gold prices also slid as investors turned to risk assets in response to the positive vaccine news.

In The News

  • The pandemic regained the spotlight last week, as positive vaccine news temporarily cast aside worries on the increasingly rapid rising case numbers as the winter months approach. To date, the world has now recorded over 54.8 million cases, with over 1.3 million deaths.
  • Pharmaceutical company Pfizer announced its preliminary data showed that its vaccine candidate was 90% effective in preventing infections, an efficacy level that highly beat expectations. The company also announced that it would begin distributing the vaccine by the end of the year.
  • Politically, uncertainties continue to rise as President Donald Trump refused to concede the elections, while the White House has been rumoured to be dropping out of stimulus negotiations. President Trump also issued an executive order last week to ban U.S investments in companies that have Chinese military ties. 
  • The Dow Jones Industrial Average outperformed its counterparts last week, gaining 4.08% as the market turned to cyclical stocks, reacting to the positive vaccine news. Tech-heavy Nasdaq slid 0.55% throughout the week as stay-at-home stocks experienced selldowns, with the NYSE FANG+ Index dipping 4.10% over the week. The 0831EA benefitted from the slide, gaining 3.92% over the week.
  • In China, its biggest sale of the year, the Single’s Day sale generated around USD 75 billion in Gross Merchandise Value (GMV) for Alibaba (up 26% y-o-y)  while JD saw approximately USD 41 billion in GMV (up 33% y-o-y), as “revenge spending” and the diversion from outbound spending to domestic served as key drivers for the jump.
  • Despite the jump in Single’s Day sales activity, Chinese stocks experienced selldowns triggered by the release of China’s draft antimonopoly regulations aimed to control the influence of Chinese tech giants in the market, along with President Trump’s executive order that bans investment into military-linked Chinese companies. 
  • The Shanghai Composite dipped 0.13% while the CSI 300 Index slid 0.66%. The S&P New China Sectors Ex A Share Index dipped 0.39%, dragged down by major internet names with Alibaba being one of the major detractors after weaker sentiment caused by the regulator’s halting Ant Group’s scheduled listing.  
  • The 0829EA saw its NAV dip marginally on Friday after going ex-dividend , adjusting its NAV from its maiden cash distribution of MYR 20 sen (HKD 38 cents) per unit. The ETF is still posing YTD gains of 36.74% in MYR terms on a NAV to NAV basis.
  • Locally, markets reacted to the positive news in vaccine development, as well 3rd quarter GDP numbers that showed strong rebound in the economy. As a result, the KLCI index continued its upward momentum from last week, ending the week 4.61% in the green. 
  • However, the DWA Malaysia Momentum Index lagged in performance as market rotation activity was also seen locally, causing a selldown in tech and glove names in the index. Over the week, index gained 0.23% while the 0836EA upped 0.55%.  
  • The REITs sector improved last week on the back of optimism surrounding the vaccine. Prices for Retail REITs climbed higher on the better sentiment, which saw the MSCI AC Asia ex Japan IMI / EQ REITs HDY Tilt Cap Index climb 1.71% higher, leading the 0837EA to also rise 1.59% higher. 
  • Gold price slid 3.72% last week as investors turned to risk assets following the positive vaccine news. The 0828EA followed the negative trend of gold prices, dipping 3.78% throughout the week in MYR terms. The ETF is still recording 22.9% YTD returns in MYR terms. However, potential in the precious metal can still be seen as the world continues to grapple with the rapidly rising pandemic cases around the world.

On the Economic Data Front

  • US economic data paints mixed picture
    • Initial jobless claims fell for the fourth consecutive week to the lowest since the beginning of the pandemic, recorded at 709,000 
    • Continuing claims fell below 7 million for the first time since March
    • Preliminary measures of consumer sentiment showed that November data fell to a three-month low, missing expectations
  • Europe hints as additional monetary support
    • The European Central Bank has hinted that it would expand its pandemic emergency purchase program (PEPP) and targeted longer-term refinancing operations (TLTRO)
    • UK GDP rebounded at record high of 15.5% for the third quarter
    • However, economic growth missed expectations in September, recording at 1.1% expansion.

ETF strategies at TradePlus

A look at the performance of TradePlus ETFs, and major global indices

Email disclaimer: This information has been provided for information purposes for the intended recipients only.  Information contained should not be copied, distributed, or otherwise disseminated in whole or in part without written consent from Affin Hwang Asset Management Berhad (“AHAM”). Information contains opinions, analysis, forecasts, projections, and expectations which has been obtained from various sources, including those in the public domain, and are merely expressions of belief. AHAM makes no expressed, or implied warranty as to the accuracy and completeness of any such information.  As with any forms of financial products, the financial products mentioned herein (if any), carries with it various investment risks. AHAM is not acting as an advisor or agent to any person to whom this communication is directed. Such persons must make their own independent assessments. Nothing in this communication is intended to be, or should be construed as an offer to buy or sell, or invitation to subscribe for, any securities.  Neither AHAM, nor any of its directors, employees or representatives are to have any liability (including liability to any person by reason of negligence, or negligent misstatement) from any statement, opinion, information, or matter (expressed or implied) arising out of, contained in, or derived from, or any omission from this communication, except liability under statue that cannot be excluded.  You may obtain further information regarding product details, risks, and full disclaimers for TradePlus products and its Benchmark Indices here.

What’s Trending? (9th Nov 2020)

All eyes were glued on the US Presidential Election as the country went to the polls to elect its 46th President. Concerns over the rapid spread of the COVID-19 pandemic were temporarily cast aside last week, as investors jumped back into the market. Risk assets across most major indices climbed higher, while the Dollar weakness provided support for Gold price to rise alongside risk assets. It was only after the trading week that we saw the results being announced, with Joe Biden being elected as the 46th US President. 

In The News

  • Global markets were focused on the US last week as Americans turned to polling stations to cast their vote for their 46th President.  It wasn’t until the weekend that we saw vote counts confirming Joe Biden as the country’s latest president-elect, alongside his running mate, Kamala Harris as his vice-president elect. 
  • Concerns surrounding the rapid rise in pandemic cases were momentarily cast aside despite now having more than 50 million cases globally, and resulted to more than 1.25 million fatalities.  Stricter lockdown measures are expected to take place across the globe as we continue to scramble for a vaccine.
  • England, Greece, and France have all announced lockdown measures to prevent further spread of the virus, while Spain imposed nighttime curfews.  Malaysia also announced stricter movement controls as case numbers continue to rise.
  • The effects from the pandemic continue to weigh on economic growth, leaving global central banks to maintain an accommodative stance.  Last week saw the US Feds leaving its interest rates unchanged, while keeping open the possibility of an expansion to its QE program.
  • The tech-sector regained its position as one of the top performers, with the NYSE FANG+ Index gaining 7.86% over the week, and contributed to the 16.63% returns for 0830EA. Returns from the tech-sector outpaced that of the broader market, as the S&P 500 rose 6.68% in MYR terms over the same period.
  • The Bank of Japan reiterated that it will not be altering its ETF-buying program.  The BoJ anticipates to invest USD115 billion into ETFs annually, stating that the program is aimed to prevent significant market swings, and aimed at protecting investors’ sentiment.
  • China’s equity market rose over the week on optimism that Biden would be able to clench the Presidential seat from Trump, which would help mend the current strained relationship between the US, and China.
  • Investors’ sentiment was further boosted with the stronger economic data flowing out of China, a momentum that investors anticipate to continue till year-end.  The Shanghai Composite, and the CSI 300 Index both rose 3.35%, and 4.69% respectively, while the consumption and services-focused S&P New China Sectors Ex A Share Index rose 7.31% with the support of its tech stocks. 
  • The 0829EA, which tracks the S&P New China Sectors Index, has enjoyed a steady climb over the course of the year, recording a YTD gain of 38.36% in MYR terms and announced that it will be making it’s 1st income distribution this quarter.
  • China’s consumption sector stocks have continued to do well as domestic consumers shift back into the market with its “revenge spending”.  More support is expected to be seen with the up-coming Single’s Day sale. 
  • The suspension of the highly anticipated Ant Group IPO shocked global markets after the news was announced 2 days prior to its debut. The brakes were pulled after regulators found that the Company no longer met the regulator’s listing requirements.  Ant Group is said to be refunding its IPO investors, along with brokerage fees and interest.
  • Closer to home, the domestic market also climbed higher as sentiment improved.  Whilst the KLCI inched 3.60% higher last week, momentum stocks enjoyed a stronger run, benefitting the 0836EA which rose 3.94% over the same period.
  • Glove stocks continued its upward momentum, gaining further support with the absence of the earlier mentioned “windfall tax” in the budget which was announced last Friday.
  • Gold price spiked last week led by the uncertainties surrounding the outcome of the US presidential election. But with the US Dollar losing ground, analysts are expecting support for the precious metal if volatility in the equity market continues. The 0828EA rose 3.21% last week after Gold price breached the USD1,950 per ounce level, the highest since September.  Gold remains one of the strongest performing asset class this year, with the 0828EA already recording a YTD gain of in excess of 27% in MYR terms. 

On the Economic Data Front

  • US data shows promise
    • 638,000 jobs were added last month 
    • Unemployment rate dipped from 7.9% in September, to 6.9% in October
    • Concerns have, however, arisen over the sustainability of the job numbers as stricter lockdown measures may dampen numbers
  • China continues to see growth
    • October’s Caixin/Markit PMI at 53.6 – sees growth for the 6th straight month – highest reading since Jan 2011
    • Official PMI released at 51.4 – beating expectations of 51.3

ETF strategies at TradePlus

A look at the performance of TradePlus ETFs, and major global indices

Email disclaimer: This information has been provided for information purposes for the intended recipients only.  Information contained should not be copied, distributed, or otherwise disseminated in whole or in part without written consent from Affin Hwang Asset Management Berhad (“AHAM”). Information contains opinions, analysis, forecasts, projections, and expectations which has been obtained from various sources, including those in the public domain, and are merely expressions of belief. AHAM makes no expressed, or implied warranty as to the accuracy and completeness of any such information.  As with any forms of financial products, the financial products mentioned herein (if any), carries with it various investment risks. AHAM is not acting as an advisor or agent to any person to whom this communication is directed. Such persons must make their own independent assessments. Nothing in this communication is intended to be, or should be construed as an offer to buy or sell, or invitation to subscribe for, any securities.  Neither AHAM, nor any of its directors, employees or representatives are to have any liability (including liability to any person by reason of negligence, or negligent misstatement) from any statement, opinion, information, or matter (expressed or implied) arising out of, contained in, or derived from, or any omission from this communication, except liability under statue that cannot be excluded.  You may obtain further information regarding product details, risks, and full disclaimers for TradePlus products and its Benchmark Indices here.

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