Trade Performance and Fund Flow Week Ended 8 November
- The Emerging Markets were impacted from a collection of global and regional movements last week. While Trump’s win as the US president for the next term broadly sent the EM lower, the trimming of benchmark interest rate by 25 basis points to a range of 4.5% to 4.75% by the Federal Open Market Committee (FOMC) offered a certain degree of support. Overall, the EM remained resilient with a 1.2% week-on-week growth despite the withdrawal of global investors from most of the markets observed.
- Meanwhile in China, both the Shanghai Composite Index and Shenzhen Composite Index rose starting in the mid-week over anticipation of more stimulus packages from the country’s National People’s Congress for more direct fiscal support. On Friday, China unveiled a USD1.4 trillion debt swap programme over five years to tackle local governments’ ‘hidden debt’, which fell short of investors’ expectations, leading to moderation in both Chinese indices. Nonetheless, both SHCOMP and SZCOMP closed 5.5% and 7.6% higher week-on-week.
- Domestic trading appeared to be mixed last week following major, pivotal events in the global market. The FBMKLCI advanced in the beginning of the week until the sentiment turned cautious after Donald Trump's presidential win, while the widely anticipated 25 basis point interest rates cut by the US Federal Reserve offered the necessary cushion. The Malaysian benchmark index closed 1.1% higher than the previous week.
- Overall market capitalisation ended on a positive note last week, climbing 0.9% to RM2,023.73 bil. Growth was recorded in five out of 13 sectors, with the Technology sector leading the way, reflecting investors’ optimism and confidence following the outcome of the US presidential election.
Published Date
12 Nov 2024
Publisher
Bursa Digital Research
