Slower export growth pace in 2018

export growth

Malaysia’s export growth pace in 2018 may throttle down on the back of the stronger ringgit and a slowing global electronics cycle, following a record of high performance last year, The Star reported.

In fact, the slowdown in the exports momentum was already seen in December 2017, as total exports edged up well below market expectations.

According to The Star, Malaysia’s export growth in 2018 could decelerate also due to the result of the technical high base effect, which was caused by the surge in the country’s exports last year.

Moving forward, despite the projected moderation in overall trade, analysts continue to be optimistic on the country’s exports performance.

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Malaysian market is expected to remain volatile in 2018

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Investment analysts and equity strategists do not think Bursa Malaysia is in calmer waters now on the back of when the local stock market regained some lost ground recently after the two-day fall.

According to Maybank Kim Eng head of research and global investment strategist Sadiq Currimbhoy, volatility could be the norm this year.

The Edge reported that Currimbhoy expects the bond yield is going to climb further due to concerns about inflation particularly in the US.

“I think that is going to create market volatility for equities… at least for the first part of the year,” he told the press on the sidelines of the Fifth World Capital Markets Symposium 2018 on Feb 7.
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Bond market is expected to remain strong in 2018, amounting up to RM90b – RM100b, says RAM Ratings

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The bond market is expected to remain robust this year, with RM90 billion to RM100 billion of gross corporate bond issuance to take place, said RAM Rating Services Bhd (RAM Ratings) in a report by The Star on Jan 25, 2018.

“The strong corporate bond issuance is driven by a healthy pipeline of issuances from the financial institutions and infrastructure, as well as utility sectors which have traditionally issued the largest share of the market’s corporate bonds,” said RAM Ratings Services Bhd Head of Research Kristina Fong.

The latest RAM’s Bond Market Monthly stated that in 2017, the gross issuance of corporate bonds hit a record high of RM124.9 billion, surpassing its expectation of RM105 billion to RM115 billion.

“The robust issuance in 2017 was supported by both sub-segments of the corporate bond market – quasi-government and private, which posted double-digit year-over-year rates of 46.1 per cent and 45.6 per cent respectively,” it said.

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