INVE$T | Market Sentiments
According to Ministry of Finance, the prospects for economic recovery in the near term appear more favourable, supported by the country’s National Recovery Plan’s (NRP) systematic re-opening of various economic sectors, including social activities such as dining-in and tourism. The 2022 growth is expected to rebound in line with the recovery in the global economy and trade throughout the second half of 2021 and next year, particularly as more countries step up their vaccination efforts. As a small and open economy, Malaysia’s recovery is highly dependent on the global economic recovery, particularly that of its major trading partners. The continued implementation of economic and fiscal stimulus measures will also support Malaysia’s economic growth, which is expected to remain strong at 6% and 5.8% according to the International Monetary Fund and the World Bank estimates, respectively. The government’s fiscal policy will continue to be centred on providing constant support in promoting a sustainable economic recovery and the smooth implementation of the recently announced 12th Malaysia Plan (12MP) (2021-2025). The immediate priority is restoring the nation’s potential growth capacity to allow communities and businesses to adjust to new norms, as well as to invest for future growth and better job opportunities. Given the need for spending flexibility during this unprecedented pandemic crisis, the government will table a motion during the current Parliamentary sitting to raise its statutory debt limit from 60% to 65% of GDP. The government continues to be committed to fiscal consolidation in the medium term as outlined in the 12MP, with a deficit target of 3.5% of GDP by 2025. These efforts will be aligned with the 12MP’s medium-term macroeconomic strategies, designed to catalyse an inclusive and sustainable growth for all Malaysians.”
PNB announces total income distribution of RM650.73 mil for three funds
Amanah Saham Nasional Bhd (ASNB), the wholly-owned unit trust management company of Permodalan Nasional Bhd (PNB), announced a total income distribution payout of RM650.73 million for the financial year ending Sept 30, 2021 (FY2021), for three of its funds. The funds were the Amanah Saham Malaysia 3 (ASM 3), ASN Equity 5 and ASN Sara (Mixed Asset Conservative) 2 (ASN Sara 2). For ASM 3, PNB declared a total income distribution payout of RM593.04 million, benefitting 525,038 unit holders who currently own 14.83 billion units. ASM 3 recorded a net realised income of RM653.27 million for FY2021, reflecting an increase of 17.87% from last year. The return of 4.00 sen per unit remains competitive and exceeds the benchmark Maybank 12-Month Fixed Deposit return of 1.85% by 215 basis points (bps) for FY2021. Meanwhile, ASN Equity 5 and ASN Sara 2 registered total returns of 11.46% and 4.04% respectively, for FY2021, outperforming their benchmarks by 8.66% and 1.73% respectively. These returns are benchmarked against the FTSE Bursa Malaysia Top 100 Index (FBM 100) and Maybank 12-Month Fixed Deposit, at a ratio customised to each fund. With these returns, ASNB will be paying out a total income distribution of RM9.80 million to ASN Equity 5 unitholders — equivalent to 2.85 sen per unit for 11,202 unitholders who own a combined total of 343.80 million units. Meanwhile, ASN Sara 2 unitholders will receive a total income distribution payout of RM47.88 million, equivalent to 2.80 sen per unit to 42,860 unit holders with 1.71 billion units. These distributions translate into a dividend yield of 2.95% for ASN Equity 5 and 2.75% for ASN Sara 2 respectively, based on the Net Asset Value of the funds as at Sept 23, 2021. The income distributions of these funds were derived from the funds’ realised gains, dividends and other income from local and international investments, generally driven by the gradual recovery of global and domestic financial markets. Income from international investments grew significantly with contributions between 32% and 73% to each respective fund for the financial year-to-date.
Eye On The Markets
This week, on Friday (1Oct), the Ringgit opened at 4.1845 against the USD from 4.1875 on Monday (27Sept). Meanwhile, the Ringgit was 3.0783 to the Sing Dollar on Friday (1Oct). On Monday (27Sept), the FBM KLCI opened at 1532.89. As at Friday (1Oct) 10:00am, the FBM KLCI is down 3.75 points for the week at 1529.14. Over in US, the overnight Dow Jones Industrial Average closed down 546.80 points (-1.59%) to 33,843.92 whilst the NASDAQ shed 63.90 points (-0.44%) to 14,448.60.