Global equities rebounded strongly in 2023 and 2024 following the 2022 correction due to the Ukraine-Russia war (see Page 1 of Attachment 1). With Trump back in office, his policies, including tax cuts, deregulation, and protectionism, are expected to benefit U.S. equities. While China may face challenges from increased tariffs, the overall impact on the market will depend on how swiftly regulators adapt their policies to ensure economic stability. Additionally, with the U.S. dollar expected to remain firm, fund flows are likely to favor the U.S., which may pressure regional currencies and impact market performance. Domestic-oriented economies such as India may fare better in this environment. Separately, Malaysia stands to gain from trade diversification, leveraging its strategic location, supply chain ecosystem, and skilled labor. While we remain cautiously optimistic about global equities, we believe that geopolitical tensions and protectionist trade policies could present risks to this outlook. As global markets grapple with heightened uncertainty, we emphasize the importance of diversification and a focus on quality amid volatility.
Locally, the Malaysian market has seen strong performance in 2024, driven by political stability, effective policy execution, and reflationary impacts from a stronger ringgit (see Page 2 of Attachment 1). Thematic plays, such as data centers, excitement around Johor, and tourism, have also contributed. Given the expected volatility with Trump taking office in January 2025, we will take a more strategic and cautious approach to stock and sector selection. We maintain strong investments in the technology and industrial sectors, as the US’s plans to raise tariffs on a wide range of Chinese imports, including semiconductors, batteries, solar cells and critical minerals, are expected to benefit Malaysia as multinational companies seek alternative investment destinations. Furthermore, the strengthening of USD is anticipated to positively impact sector earnings. Simultaneously, we are adopting a more agile investment approach, gradually increasing exposure to defensive sectors such as consumer goods and healthcare.
Stepping into 2025, we believe the best is still ahead of us with any downward volatility (such as from Trump’s bellicose rhetorics) to be a buying opportunity, barring a black swan event. Together, these elements pave the way for a dynamic year ahead, encouraging us to explore the key questions that will guide our approach in the months to come, as outlined in Attachment 2.
Phillip Capital Malaysia and our offerings
We reaffirm our belief that there are still opportunities in the market, and we maintain a discerning approach in choosing high-quality stocks for our portfolio. However, it is crucial to exercise caution and carefully select investment options to ensure the best risk-adjusted returns. By taking a vigilant and discerning approach, investors can potentially reap the benefits of the current market opportunities while minimising risks.
A noteworthy avenue for investors seeking diversification in their portfolio is through PhillipCapital Malaysia. PhillipCapital Malaysia offers multiple private mandate services managed by professional fund managers. By leveraging PhillipCapital Malaysia’s private mandate services, investors can enhance their resiliency, optimise portfolio performance, and navigate the complexities of the market with confidence.
We also offer both conventional and Shariah-compliant options to cater to the needs of all investors. For Malaysia’s mandates, we like:
- PMART/PMA Dividend Enhanced and/or PMART/PMA Dividend Enhanced ESG
Our PMART Dividend Enhanced and PMA Dividend Enhanced is an income-driven portfolio focused on high dividend-yielding equities. We apply the Dog of the Dow approach, screen and select top market cap stocks to minimise risk and ensure consistent performance. The portfolio is an equal weighting portfolio which reduces concentration risk and provides similar exposure to all clients, both initially and after rebalancing. We offer both conventional and Shariah investment options to cater to the diverse needs of our investors. Click here to learn more. We recently also introduced PMART/PMA Dividend Enhanced ESG Mandate as we remain dedicated to investing in ESG stocks given their stronger valuation and profitability.
- PMART/PMA ESG
Phillip Capital Malaysia offers discretionary portfolio that invests in stocks with high ESG ratings from the F4GBM and F4GBMS Indices, namely PMART and PMA ESG. There are both conventional and Shariah options available. To explore the companies in which both Conventional and Shariah ESG mandates invest, you can refer to the provided link.
- PMART/PMA Blue Chip and Opportunity
Our Blue-Chip portfolios primarily allocate our investments towards companies with large market capitalisations, while the Opportunity portfolios predominantly invest in companies with smaller market capitalisations. We also offer both conventional and Shariah-compliant options to cater to the needs of all investors.
QA Outlook 2025 Cant Tame the Animal Spirits
Please click on the link to learn more or email us at cse.my@phillipcapital.com.my if you require any further information.
Disclaimer:
The information contained herein does not constitute an offer, invitation or solicitation to invest in Phillip Capital Management Sdn Bhd (“PCM”). This article has been reviewed and endorsed by the Executive Director (ED) of PCM. This article has not been reviewed by The Securities Commission Malaysia (SC). No part of this document may be circulated or reproduced without prior permission of PCM. This is not a collective investment scheme / unit trust fund. Any investment product or service offered by PCM is not obligations of, deposits in or guaranteed by PCM. Past performance is not necessarily indicative of future returns. Investments are subject to investment risks, including the possible loss of the principal amount invested. Investors should note that the value of the investment may rise as well as decline. If investors are in any doubt about any feature or nature of the investment, they should consult PCM to obtain further information including on the fees and charges involved before investing or seek other professional advice for their specific investment needs or financial situations. Whilst we have taken all reasonable care to ensure that the information contained in this publication is accurate, it does not guarantee the accuracy or completeness of this publication. Any information, opinion and views contained herein are subject to change without notice. We have not given any consideration to and have not made any investigation on your investment objectives, financial situation or your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any persons acting on such information and advice.
