Trade Performance and Fund Flow Two Weeks Ended 6 December
- Emerging markets trended downwards in the last week of November, with six out of ten stock exchanges observed to contract, following renewed fears of a trade war as the U.S. President-elect commented on additional trade tariffs on China and other countries. However, the emerging market rebounded in the first week of December, climbing 2.5% from the previous week, over the increasing likelihood that the US Federal Reserve would further trim its benchmark interest rate in December, after the country reported a higher unemployment rate at 4.2% in November. Overall, nine out of ten major indices observed rose week-on week.
- China’s stock markets trended upwards for two consecutive weeks. Last week. the SHCOMP and SZCOMP closed 2.3% and 2.4% higher respectively, ahead of the country’s key policy meeting next week to discuss its annual economic planning for 2025, which include its economic targets and additional stimulus plans. Furthermore, the country’s Purchasing Managers’ Index (PMI) for the manufacturing sector increased slightly to 50.3 in November 2024 (50.1 in October 2024), representing expansion for the second consecutive month.
- The FBMKLCI continued its upward momentum for the second consecutive week to close 1.2% higher and stayed above the psychological support level of 1,600pts at the end of the week ended 6 December. The rally aligned with the regional market sentiment, driven by optimism for a potential U.S. interest rate cut in the December FOMC meeting after the country reported a higher unemployment rate at 4.2% in November. Notably, the announcement of the addition of GAMUDA and 99SMART to the benchmark index in the semi-annual review of the FTSE Bursa Malaysia Index in December added to the market momentum.
- The key focus of the week will be the U.S. third quarter GDP growth and November CPI data, as well as China’s November CPI and PPI data.
- Overall market capitalisation climbed higher for the past two weeks, closing at RM2,047.62 bil on 6 December. Last week’s growth was driven by broad-based expansion across 12 out of 13 sectors. In the same week, all of the FBM series indices advanced, with the FBM ACE outshined with a 3.4% gain last week. The FBM Mid 70 remained the best performer among FBM indices, climbing 25.9% on year-to-
Published Date
10 Dec 2024
Publisher
Bursa Digital Research
