PBLOF - EWM: Tepidly Optimistic

• The Malaysian central bank has reported a 3.4% contraction in 4Q20 GDP, which is a much bleaker result if compared to a 2.6% decline in 3Q20.
• Some pundits consider that a 25 bps cut in the overnight policy rate is exceedingly likely. In theory, this can result in the weakening of MYR.
• EWM's most substantial investment is Kuala Lumpur-listed Public Bank Berhad that has an above 13% weight in the portfolio.
• EWM is overweight in financials, healthcare, underweight in energy and consumer discretionary.
• I would not say I am overwhelmingly bullish on EWM, so I opt for a neutral stance.

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