Trade Performance and Fund Flow Week Ended 1 November
- Global investors continued to exercise caution ahead of the U.S presidential election on 5 November, as they collectively withdrew from the ten markets observed. The sentiment was further weighed by a disappointing revenue forecast from Advanced Micro Devices (AMD), causing other chipmakers to slip. Eight out of ten Asian stock exchanges observed ended lower, while the MSCI Emerging Markets (EM) Index extended its losses by closing 1.1% lower last week.
- The next Federal Open Market Committee (FOMC) meeting is set to take place from 6-7 November 2024. The US Federal Reserve is widely expected to trim its benchmark interest rate by 25 basis points in the upcoming meeting.
- China’s stock markets reverted to net loss positions last week as both the Shanghai Composite Index and Shenzhen Composite Index shrank 0.8% and 1.5%, respectively. The country’s economy showed signs of stabilising as its factory activity, measured by the manufacturing purchasing index (PMI), rose to 50.1 after five consecutive months of contraction. The reading also exceeded economists’ forecast of 49.9. Meanwhile, its non-manufacturing PMI expanded to 50.2, from 50.0 in the previous month.
- Overall market capitalisation continued to retreat last week and closed 0.9% lower at RM2,005.16 bil. 11 out of 13 sectorial indices moderated, with the Plantation and Transportation & Logistics indices being the only sectors to register growth.
- The FBMKLCI ended the week 0.9% lower than the previous week at 1,603.98pts. The benchmark index performed on a soft note but remained above the psychological level of 1,600pts throughout the week. The cautious sentiment arose after mixed earnings reports from U.S. tech giants, while uncertainties continued to linger due to ongoing geopolitical tensions, the upcoming U.S. presidential elections, as well as the U.S. FOMC meeting.
Published Date
05 Nov 2024
Publisher
Bursa Digital Research
