The continued surge in COVID-19 cases worldwide has put many countries around the world under lockdown again, as global number of cases are steadfastly approaching the 100 million mark. However, US markets rose during the first week of Joe Biden’s presidency, shouldered by hopes of higher stimulus and a better response to the pandemic. The Chinese market also fared well despite a resurgence in the virus, as investors turned to technology and pharmaceutical stocks in anticipation of restrictions being reintroduced, while markets locally ended in the red due to the extension of MCO 2.0. Last week, 3 of TradePlus ETFs, the 0829EA, 0830EA and 0836EA ended at record high prices. Gold prices benefitted marginally from hopes of a significantly larger stimulus package, ending the week at USD1853.60/oz.

In The News

  • Global count of COVID-19 infection is fast approaching the 100 million mark, indicating that even with the start of vaccine distribution, things might look worse before it can get better.
  • The drastic change in COVID-19 response in the US could be felt as Joe Biden started his presidency, as the president reiterated his goal to distribute 1 million vaccine doses a day in his first 100 days in office, while also reversing the decision to withdraw from the World Health Organisation (WHO).
  • Hopes that the pandemic could be better handled, coupled with a potentially higher stimulus plan under the Biden presidency contributed to the positive sentiment last week, as all major indices ended in the green.
  • The tech sector drove performance in US markets as tech-focused Nasdaq significantly outperformed other indices, gaining 4.36% as the S&P500 index rose by 2.11% over the week in MYR terms.
  • The FANG+ index, which consists of 10 of the largest tech stocks listed on the NYSE jumped 7.54%, driven by Netflix which reported a jump in new subscribers in its 4Q2020 earnings report. Facebook & Google’s parent company Alphabet also reported strong earnings. Consequently, the 0830EA rose 14.87% in MYR terms, ending the week at a record high NAV of RM13.6551.
  • In China, a resurgence of COVID-19 cases in the country saw rotation back into technology and pharmaceutical stocks. Additionally, green economy stocks also rose last week, as the latest installation numbers released from the National Energy Administration gave evidence to the country’s commitment to carbon neutrality.
  • During the week, the S&P New China Sectors Ex A Share Index which seeks to capture China’s focus into domestic consumption and a sustainable economy significantly outperformed the broader market, rising 7.61% over the week while the CSI 300 and the Shanghai Composite index rose 2.19% and 1.28% respectively in MYR terms.
  • The 0829EA, which tracks the S&P New China Sector Ex A Share Index upped 6.57% last week, as the ETF continued to hit record high NAV. By Friday, the ETF reached RM9.2835, with YTD gains of 12.98%.
  • The HSCEI index, which includes Chinese companies that are listed in Hong Kong continued its rally as a record influx of Chinese investors was seen in Hong Kong markets last week through the Connect Program, which allows Chinese investors to invest into the Hong Kong market using their domestic trading account and vice versa.
  • As a result, the index gained another 3.34% in MYR terms last week, while the 0832EA, which aims to provide 200% daily exposure into the HSCEI index rose 6.08% throughout the week.
  • Locally, sentiment was further dragged down by the extension of Movement Control Order 2.0 (MCO 2.0) to the 4th of February 2021. Despite BNM maintaining OPR rates, anticipation over a possible rate cut throughout the week also drove markets down as profit taking activity ensued after the announcement. Over the week, the FBM KLCI index shed 1.86%.
  • The Dorsey Wright Technical Leaders Malaysia MYR Index defied market sentiment, ending the week in 1.28% in the green, while the 0836EA upped 1.53% to end at a record high NAV of RM1.0895.
  • Gold prices saw marginal gains last week as a significantly larger stimulus package is expected under the Biden presidency. Over the week, gold prices upped 0.15% in MYR terms to end at USD1853.60/oz while the 0828EA gained 0.12%.

On the Economic Data Front

  •  US reports mixed economic data
    • Housing market regained momentum, as homebuilding projects jumped 5.8% in December from the prior month.
    • New jobless claims saw slight dip but remains at elevated levels of 900,000.
  • Eurozone PMI shows worsening contraction as lockdown continues.
    • Composite PMI fell to 47.5 in January from 49.1 last December.
    • Manufacturing PMI dipped to 54.5 while services PMI dropped fell further to 45.0.
  • China economy regains pre-virus trend.
    • China’s economy officially grew by 2.3% in 2020, while 4Q GDP growth expanded by 6.5% y-o-y.
    • Retail sales rose by 4.6% in December, indicating steady consumer demand.

 

ETF strategies at TradePlus

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

\

 

Learn more about TradePlus ETFs

www.tradeplus.com.my
www.facebook.com/AHAMCapital/
#ahamcapital
+(60) 12 606 8685
TradePlus ETF

 


Disclaimer: This article has been prepared by AHAM Asset Management Berhad (“AHAM Capital”) specific for its use, a specific target audience, and for discussion purposes only. All information contained within this presentation belongs to AHAM Capital and may not be copied, distributed or otherwise disseminated in whole or in part without written consent of AHAM Capital. The information contained in this presentation may include, but is not limited to opinions, analysis, forecasts, projections and expectations (collectively referred to as “Opinions”). Such information has been obtained from various sources including those in the public domain, are merely expressions of belief. Although this presentation has been prepared on the basis of information and/or Opinions that are believed to be correct at the time the presentation was prepared, AHAM Capital makes no expressed or implied warranty as to the accuracy and completeness of any such information and/or Opinions. As with any forms of financial products, the financial product mentioned herein (if any) carries with it various risks. Although attempts have been made to disclose all possible risks involved, the financial product may still be subject to inherent risk that may arise beyond our reasonable contemplation. The financial product may be wholly unsuited for you, if you are adverse to the risk arising out of and/or in connection with the financial product. AHAM Capital is not acting as an advisor or agent to any person to whom this presentation is directed. Such persons must make their own independent assessments of the contents of this presentation, should not treat such content as advice relating to legal, accounting, taxation or investment matters and should consult their own advisers. AHAM Capital and its affiliates may act as a principal and agent in any transaction contemplated by this presentation, or any other transaction connected with any such transaction, and may as a result earn brokerage, commission or other income. Nothing in this presentation is intended to be, or should be construed as an offer to buy or sell, or invitation to subscribe for, any securities. Neither AHAM Capital 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 presentation, except liability under statute that cannot be excluded.

Warning Statement: A copy of the Prospectus / Supplemental Prospectus for the TradePlus Shariah Gold Tracker and TradePlus S&P New China Tracker, the Prospectus for the TradePlus DWA Malaysia Momentum Tracker and TradePlus MSCI Asia Ex Japan REITs Tracker, as well as the Master Prospectus for the TradePlus NYSE® FANG+ Daily (2x) Leveraged Tracker, TradePlus NYSE® FANG+ Daily (-1x) Inverse Tracker, TradePlus HSCEI Daily (2x) Leveraged Tracker and TradePlus HSCEI Daily (-1x) Inverse Tracker (collectively known as the “TradePlus L&I ETFs”) can be obtained at Affin Hwang Asset Management's (“AHAM Capital”) website at www.tradeplus.com.my. Investors are advised to read and understand the contents of the Prospectus dated 28 November 2017 and Supplemental Prospectus dated 2 July 2019 (for TradePlus Shariah Gold Tracker), Prospectus dated 15 January 2019 and Supplemental Prospectus dated 2 July 2019 (for TradePlus S&P New China Tracker), Prospectus dated 9 July 2020 (for TradePlus DWA Malaysia Momentum Tracker), Prospectus dated 9 July 2020 (for TradePlus MSCI Asia Ex Japan REITs Tracker), as well as the Master Prospectus dated 26 November 2019 (for the TradePlus L&I ETFs) before investing. There are fees and charges involved when investing in the funds stated herein. Investors are advised to consider and compare the fees and charges as well of the risks carefully before investing. Investors should make their own assessment of the risks involved in investing and should seek professional advice, where necessary. The price of units and distribution payable, if any, may go down as well as up and past performance of the funds should not be taken as indicative of their future performance. The Securities Commission Malaysia has not reviewed this material and takes no responsibility for the contents of this material and expressly disclaims all liability, however arising from this material.

You may refer to the relevant Licensing Disclosure Statement & Conditions at the respective webpages for each fund available on www.tradeplus.com.my.