Survey reveals next six months a ‘neutral to good time’ to invest in equities
KUALA LUMPUR: A recent survey by the Manulife Investor Sentiment Index (MISI) revealed that 75 per cent of respondents in Malaysia indicated the next six months would be a “neutral to good time” to invest in equities.
The top reasons for the increasing investor appetite are favouring Asian stocks to a very stable market (34 per cent), equities could enjoy higher returns than other investments (34 per cent) and signs that market conditions were improving (33 per cent).
Manulife Asset Management Services Bhd chief investment officer/managing director Jason Chong said the company also holds a positive view towards Malaysian equities in the year ahead.
“The government’s efforts at pushing out infrastructure projects and a gradual recovery in consumer confidence is expected to underpin economic growth this year.
“Ongoing improvement in commodity prices should also help the ringgit to strengthen,” he said in a statement.
Chong also said Malaysia’s economic growth is expected to remain resilient with moderate inflation levels and a stable domestic rate environment.
“Higher oil prices coupled with the government’s fiscal consolidation programme will lower the risk of a sovereign downgrade.
“The domestic economic fundamentals will remain supportive of our bond market,” he added.
MISI also reported that 83 per cent of Malaysian investors see “a neutral to good time” to invest in the fixed income asset class in the next six months.
According to the survey, growth in emerging markets around Asia is also expected to continue offering opportunities for investors in 2017, amid ongoing global political and market uncertainties.
The survey was derived from 500 online interviews in Malaysia, Hong Kong, China, Taiwan, Thailand, Singapore and the Philippines. There were some 500 face-to-face interviews in Indonesia. — Bernama