Trade Performance and Fund Flow Week Ended 25 October
- Emerging markets experienced broad declines as eight out of ten Asian stock exchanges observed contracted as market priced in a smaller rate cut by the Federal Reserve in November. The sentiment was further weighed by escalated geopolitical tensions in the Middle East, risking a full-scale war. Global investors also maintained a vigilant approach due to uncertainties surrounding the upcoming U.S presidential election. Overall, the MSCI EM index moderated by 1.8% week-on-week. Investors are awaiting the release of key US economic data this week, such as its 3Q2024 GDP numbers and labour market data, that would dictate the pace of the US Federal Reserve rate cuts.
- China’s stock markets expanded further last week as both the Shanghai Composite Index and Shenzhen Composite Index grew 1.2% and 3.6%, respectively. Last week, the People’s Bank of China (PBOC) trimmed its benchmark lending rates slightly more than expected as part of its package of stimulus measures to revive the country’s economy. Both its one-year loan prime rate (LPR) and five-year LPR were lowered by 25 basis points to 3.10% and 3.60%, respectively. In addition, the country’s central bank kept its one-year policy rate unchanged, which suggests the authorities are taking a cautious approach to the pace of its monetary stimulus.
- Overall market capitalisation retreated from the previous week’s gain, dropping 1.1% to RM2,023.66 bil, as a result of broad-based market decline, with eight out of 13 sectors contracted.
- The FBMKLCI reversed its net gains and closed 1.7% lower at 1,618.30pts last week. The weakened sentiment aligned with the performance of its regional peers, largely due to growing concerns that the Federal Reserve may adopt a more restrained approach to policy easing, following rising U.S. Treasury yields amid uncertainty over the upcoming U.S. election outcome.
Published Date
29 Oct 2024
Publisher
Bursa Digital Research
