Global market sentiment turned positive last week, recovering from the “short squeeze” event as market sentiment was boosted by the passing of President Biden’s USD1.4 trillion stimulus package in the Senate, followed by encouraging earnings reports from US companies. In China, new economy sectors outperformed the broader market, as consumption stocks drove markets higher during the week ahead of the festive season. The local market followed its lead despite the extension of MCO2.0, as the Malaysian vaccine rollout program was announced to begin by the end of the month. Commodity wise, crude oil prices performed well following encouraging economic outlook in the US, while gold prices dipped as appetite for riskier assets returned. 

In The News

  • While vaccines distribution is already underway in most major economies, number of COVID-19 cases remains elevated, recording over 106 million cases globally with 2.3 million deaths.
  •  Markets put their focus on stimulus progress last week, as President Biden’s proposed USD 1.9 trillion stimulus package was narrowly backed by the Senate, which markets believe will get final approval via simple majority through a reconciliation process.
  • The excitement from last week’s “short squeeze” event fizzled out, as markets jumped back from its worst weekly dip since October. Market sentiment improved thanks to the stimulus progress, improving COVID-19 numbers and encouraging signs of economic recovery.
  • As fourth quarter earnings results continues to be better than expected, US companies are now expected to report modest increase in earnings overall, compared to the previous small decline that had been forecasted last week.
  • The S&P 500 index rose 5.44% in MYR terms while tech-focused Nasdaq jumped by 6.81% with the support of investors’ confidence, leaving investors jumping back into riskier assets.
  • Over the week, FANG+ index constituents Amazon and Alphabet (parent company of Google) reported better than expected earnings, with Amazon surpassing USD 100 billion in quarterly revenue for the first time. Over the week, the FANG+ index rose 8.36%, while the 2x Leveraged 0830EA saw 15.65% gains, ending the week at a record high NAV of RM14.4761, with YTD gains of 18.7%.
  • Following the positive sentiment in the US, Chinese markets also rebounded and the CSI 300 index  and the Shanghai Composite index upped 2.63% and 0.55% respectively in MYR terms.
  • Over the week, China’s new economy sectors become the centre of attention as the Chinese New Year (CNY) approaches. Online sales for CNY totalled RMB344.1 billion for the last 10 days of January, according to sources.
  • The S&P New China Sectors Ex A Share Index outperformed major Chinese indices last week as consumption sectors benefitted from the festive season, rising 8.3% in MYR terms while the 0829EA gained 7.97% to end the week at a record high NAV of RM 9.6196, bringing its YTD gains to 17.07%
  •  Locally, market sentiment also turned positive despite the announcement of another MCO 2.0 extension to the 18th of February. The catalyst for positive market movement could be credited to prime minister Muhyiddin Yassin’s announcement on the planned rollout of Malaysia’s COVID-19 vaccination program by the end of the month.
  • Over the week, the FBM KLCI ended 0.78% in the green, while the Dorsey Wright Technical Leaders Malaysia MYR Index managed to outperform the broader market as the announcement of the vaccine program brought gains to recovery names which were included in the index’s most recent rebalancing activity.
  • The 0836EA, which tracks the index saw 4.13% gains over the week, ending the week at a record high NAV of RM1.1140, with YTD gains of 4.13%.
  • Commodity wise, crude oil prices jumped over the week as the progress in economic stimulus and encouraging outlook regarding of the pandemic brought prices up by 9.73% over the week.
  • Gold prices however did not fare well last week as investors turned to risk assets as markets recovered from its previous dip. The 0828EA dipped 1.88% throughout the week, while the previous metal ended at USD 1,808/oz.

On the Economic Data Front

  • US posts encouraging economic data
    • ISM’s gauge of services PMI rose to its highest level since February to 58.9.
    • Weekly jobless claims fell more than expected to its lowest level since late November, recording at 779,000.
    • Reports also show that  49,000 jobs were added in January, following December’s downwardly revised decline of 227,000.
  •  Eurozone reports GDP data for 4Q2020
    • Eurozone GDP contracted less than expected last quarter, dipping 0.7% sequentially and 5.1% y-o-y.
    • France and Italy’s economies contracted the most in the region, shrinking 1.3% and 2.0% respectively.
  • China’s economic data misses expectations
    • Manufacturing PMI dipped to 51.3 in January but remains in expansion territory
    • Non-manufacturing PMI also showed signs of slowing down in January, recording at 52.4.

ETF strategies at TradePlus

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


Learn more about TradePlus ETFs
+(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 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