KUALA LUMPUR: AmInvestment Research believes the coronavirus outbreak will delay but it will not derail a potential rerating of Bursa Malaysia in 2020.
In its strategy report issued on Wednesday it said the catalysts included investors’ increased appetite for risk assets, particularly, emerging market (EM) equities including Malaysian equities.
However, the risk appetite would depend whether: (i) the US Fed is to maintain its narrative of not tightening monetary policy which shall keep the dollar’s strength in check; (ii) the sustained high equity valuations in developed markets (DM), prompting investors to look elsewhere for opportunities, including EM equities; and (iii) the US-China trade tensions are to ease; and (iv) the global recession risk is to continue to moderate.
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