KUALA LUMPUR – Affin Hwang Asset Management Bhd expects the gradual shift of fund flows into Malaysia will provide some form of buoyancy for the domestic stock market.
Chief investment officer David Ng said after having suffered significantly since last November, ringgit-assets were deemed as relatively cheap and attractive, especially from a foreign investor’s perspective.
Nevertheless, he said, the ringgit was seen turning around in recent weeks as the strong greenback environment was seen to be easing up.
“Market confidence on US President Donald Trump seems to be diminishing and growing doubts over his ability to pass other key reforms in the future,” he said in a statement on Thursday.
Regionally, he said, there were pockets of opportunities in Asia led by the infrastructure sector.
“We believe that the infrastructure story is taking shape in Asia. This is positive for the Asian economic growth over the longer term,” he said.
He said given the strong momentum in the region, some pullbacks could be expected in the near term which was healthy for markets in general.
Another key events to watch in the coming months is Trump’s trade protectionism which is posing a risk to the Asian supply chain, he added.
“The US-China trade dispute could send ripple effects to Asia’s economy and is causing anxiety across the region,” he added.