Bullish outlook for securities and derivatives trading as investors pursue growth

Shifting away from yield picks.

Despite the weaker-than-expected trading activities for both securities and derivatives during the latest quarter, PhillipCapital expressed optimism that both will increasingly capture investor interest.

"Trading activities for both Securities and Derivatives are expected to increase as investors shift their interest from yield to growth," said PhillipCapital, but warned that volatility should still be expected.

"While acknowledging that markets may be quieter as the US Fed continues its assessment on the tapering of QE, we continue to expect higher trading values ahead. The higher long-term interest rates has reduced the attractiveness of holding high yielding, long maturity Fixed Income instruments," it added.

"We expect global investors to switch from holding Fixed Income instruments to global equities. Equities provide higher growth potential. Improvement in the global economy is also expected to contribute to stronger Equities performance. This is expected to drive higher securities activity," it said further. 

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