Valuations of Equity Markets Not Yet Excessive, Says Pacific Mutual

KUALA LUMPUR, Jan 4 (Bernama) -- Pacific Mutual Fund Bhd remains cautiously optimistic on equities in 2016, saying valuations are not yet excessive. Its chief investment officer/executive director, Teh Chi-cheun, said global equities are expected to rise given the decent economic growth of the US with ample liquidity on the back of continued quantitative easing by Europe and Japan coupled with monetary easing in Asia, especially by China. "Although valuations of equity markets are getting a bit rich, they are not yet excessive," said Teh in a company statement here, Monday. The local bourse is also expected to be robust on the back of ample local liquidity and the relatively low foreign shareholding (22.2 per cent as at end-October 2015 compared to 23.8 per cent in December 2014), said the statement. "A continuous inflow of monies into various government and government-linked funds which have to be invested in the local bourse, and the injection of RM20 billion (about US$4.63 billion) into ValueCap, will be positive for the market," it said. Given a more volatile 2016, Pacific Mutual said it would focus its investment decisions predominantly on valuations, liquidity, policies and events, such as the lifting of sanctions on Iran likely to happen in second quarter 2016 and the US Presidential elections at the end of 2016. The company also announced income distributions amounting to RM16.8 million (about US$3.91 million) for three of its funds for the financial year ended Dec 31, 2015. The investment management company under the OCBC Group announced 5.0 sen per unit income for Pacific Dividend Fund; two sen per unit for Pacific AsiaPac Income Fund and 0.4 sen per unit quarterly distribution for Pacific Cash Fund. (US$1=RM4.316) -- BERNAMA