Trade Performance and Fund Flow week ended 3 May 2024

Emerging markets continued its growth momentum for the second consecutive week following renewed expectations of the Federal Reserve cutting its Federal Fund Rate Target before September. This came after a weaker-than-expected labour data reported in the United States last week whereby its job growth slowed more than expected while the increase in annual wages fell below 4.0% for the first time in nearly 3 years. The MSCI Emerging Market Index closed 1.9% higher last week. All markets being observed expanded last week with the exception of Philippine. 

Overall market capitalisation extended its upward trend where it reached a new YTD high of RM1,979.19 bil on 3 May 2024 after posting a +1.3% WoW gain. Growth is supported by a broadbased market gain where 10 out of 13 sectors closed higher week-on-week.

The FBMKLCI inched up by +0.9% at 1,589.59pts, as market sentiment remained positive with foreign buying interest across the board. This came after renewed optimism over fed rate adjustment to as early as September.