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

 

Learn more about TradePlus ETFs

www.tradeplus.com.my
www.facebook.com/TradePlusbyAffinHwangAM
#tradeplusaham
+(60) 12 250 8002
TradePlus ETF

 


Disclaimer: This article has been prepared by Affin Hwang Asset Management Berhad (hereinafter referred to as “Affin Hwang AM”) specific for its use, a specific target audience, and for discussion purposes only. All information contained within this presentation belongs to Affin Hwang AM and may not be copied, distributed or otherwise disseminated in whole or in part without written consent of Affin Hwang AM. 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, Affin Hwang AM 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. Affin Hwang AM 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. Affin Hwang AM 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 Affin Hwang AM 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 (“Affin Hwang AM”) 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.