Trade Performance and Fund Flow week ended 31 May 2024

Emerging markets experienced broad-based decline with the MSCI Emerging Market Index extended its losses by closing 3.1% lower than the previous week. The STI was the only growing index among the 10 indices observed. The overall downward trend was attributed to the rising U.S Treasury yields and concerns over the longer-than-expected high interest rates environment. It was also worth noting that the rebalancing of MSCI EM Index took place at the close of 31 May.

Overall market capitalisation continued to retreat last week and closed 1.5% lower at RM2,021.75 bil following broad-based contraction that saw 11 out 13 sectorial indices declined. Only Construction and REITs inched higher week-on-week.

The FBMKLCI reversed from its net gain position and closed 1.4% lower at 1,596.98pts last week. The moderation was in line with the performance of its regional peers, taking cue from the unexpected improvement in the U.S consumer confidence. The US core personal consumption expenditure price index excluding food and energy costs increased 0.2% in April and 2.8% from a year ago. US Treasury yields rose as inflation continued to remain sticky.