KUALA LUMPUR (Aug 2): The Malaysian stock market will be affected if China’s economic growth decelerates more rapidly than expected due to both countries’ economic and business links, according to RHB Asset Management Sdn Bhd.
RHB Asset chief investment officer and head of equities Mohd Fauzi Mohd Tahir said implications from China’s economic growth deceleration would be bad for the region, and that the banking and consumer goods sectors would subsequently be affected.
“If anything happens in China, it will definitely have a negative effect on us (Malaysia).
“I am still confident that China can maintain their gross domestic product (GDP) growth targets of between 6.5% [and] 7%,” Mohd Fauzi said at a press conference following RHB Asset’s Market Insights Forum 2017 here today.
As such, he said RHB Asset remained upbeat on the outlook of Malaysian equities for the second half of 2017. He said there was potential upside for both small and large-capitalisation stocks.
Mohd Fauzi said the equities outlook was based on expectation that corporate earnings here would remain resilient.