Kenanga Investors Berhad

Kenanga Investors Market Review and Outlook (as of April 2024)

Markets expect the Fed to keep rates unchanged and potentially cut them in the second half of 2024, with a similar pattern in the Eurozone. Easier monetary conditions globally are expected to support growth and liquidity, as well as improving the outlook for equities. While China's fiscal stimulus has been supportive, more measures are needed to revive the property market and restore market confidence. The ASEAN market is expected to benefit from easing monetary conditions. The Malaysian equity market is promising, with projected GDP growth, improved policy execution in construction and infrastructure, rising FDI, and low valuations. Key focus areas include subsidy rationalisation and infrastructure project execution. Given the positive outlook, we are positive on sectors like financials, construction, property, new energy and utilities, while also maintaining enthusiasm for the technology sector as the key beneficiary of long-term growth trends such as AI, electric vehicles (EVs) and supply chain relocation.