Trade Performance and Fund Flow Week Ended 15 November
- Emerging markets experienced a broad-based decline as sentiment turned risk-adverse post US election, with global investors withdrawing from all the markets observed, with the exception to India. Sentiment was further weighed down by the potential slower-than-expected interest rate cuts by the US Federal Reserve, as the central bank’s chairman, Jerome Powell, signalled that the central bank is in no rush to lower its interest rate given that the US economy remains resilient. During the week, the US reported better-than-expected economic statistics, whereby its consumer price index increased slightly to 2.6% year-on-year (YoY) in October, while retail sales and export prices grew higher. Overall, the MSCI EM Index (EM) contracted 4.5% week-on-week, with losses observed in nine out of ten major indices.
- China’s stock markets moderated last week, with both the SHCOMP and SZCOMP closing 3.5% and 4.0% lower, respectively. Losses reflected investors’ disappointment over the lack of direct fiscal support from the National People’s Congress, which wrapped up last Friday. Concerns about tensions between the US and China further dampened investors’ confidence. On the flip side, the country’s economy showed signs of growth as retail sales rose 4.8% YoY in October, marking the highest growth since February 2024, while industrial output grew 5.3% YoY, despite being below economists’ forecast of 5.6% YoY growth.
- The FBMKLCI trended lower last week, with the benchmark index closing 1.8% lower than the previous week despite modest growth in Malaysia’s third quarter GDP. The softened sentiment was in line with the performance of regional peers, as investors adopted a wait-and-see approach to monitor both domestic and international developments that could affect market direction.
- Overall market capitalisation retreated and closed 1.1% lower at RM2,001.31 bil, dragged down by a broad-based market contraction that saw 11 out of 13 sectorial indices decline.
Published Date
19 Nov 2024
Publisher
Bursa Digital Research
