Earlier, i Capital has predicted that the world will experience a synchronised recovery in terms of GDP growth in 2017. However, i Capital has also concluded that the synchronised recovery will not be positive for Malaysia. The uptick in exports is expected to be transitory and private consumption will be weak. The performance of global trade is uncertain due to the unpredictability of the 45th president of the US, while the relatively subdued celebration of the Chinese New Year is a good reflection of the cautious mood of Malaysian consumers.
However, we live in a rapidly evolving world, especially when the policies and key announcements of the world’s largest economy are made via tweets and in meetings and communications that are conducted in a rather unusual manner. This week, in reviewing the KLSE outlook from a top-down approach, i Capital turns to technical analysis and fundamental factors for clues. Please read the write-ups on the New York stock exchange, Hong Kong stock exchange and the Kuala Lumpur stock exchange for major revisions in our market outlook.