Trade Performance and Fund Flow Week Ended 13 December
- Emerging markets mostly ended on a negative note last week, with seven out of ten Asian stock exchanges observed ending lower. Foreign investors rotated out of the Asian countries observed, except for Korea, as general sentiment was predominantly affected by the pace of US rate cuts in the upcoming FOMC meetings. The Fed is widely expected to cut its interest rate by 25bps at its 17-18 December 2024 meeting, and adopt a cautious approach in committing to rate cuts next year, due to concerns of increasing inflation driven by fiscal policies changes by US President-elect, Donald Trump. The rebound by the KOSPI index lifted the MSCI Emerging Markets (EM) Index to close 0.2% higher week-on-week.
- China’s stock markets ended with mixed performance last week, as the SHCOMP closed 0.4% lower while the SZCOMP expanded 0.3%. Chinese stocks rose early in the week, as China’s Politburo reaffirmed its commitment to loosening its monetary policy and increasing its fiscal spending next year to counter the impact of expected US trade tariffs. However, Chinese stocks declined on the last trading day of the week, after the recently concluded Central Economic Work Conference (CEWC) wasn’t able to provide any further details relating to its fiscal stimulus measures, which left investors disappointed.
- The FBMKLCI declined marginally from the previous week to 1,608.75pts, aligning with the performance of its regional peers. Investors’ focus will be on the upcoming FOMC meeting this week.
- Overall market capitalisation retreated to RM2,045.17 bil, dragged down by a broad-based moderation that saw declines in 10 out of 13 sectorial indices.
Published Date
17 Dec 2024
Publisher
Bursa Digital Research
