Trade Performance and Fund Flow Week Ended 21 June 2024

Regional Performance

• Emerging markets ended with a mixed performance last week as 5 out of 10 Asian stock exchanges closed lower. Overall, the MSCI Emerging Market Index (EM) rose marginally by 0.9%.
• China markets ended the week on a negative note as both the Shanghai Composite Index and Shenzhen Composite Index closed 1.1% and 2.1% lower. Prices of new homes in China declined at the fastest pace in almost 10 years in May despite its efforts to prop up its beleaguered property market. New bank lending rebounded far less than expected during the same period while certain key money gauges hit a record low. The People’s Bank of China also maintained its benchmark lending rates whereby its one-year loan prime rate (LPR) and 5-year LPR were kept at 3.45% and 3.95% respectively.
• The TWSE index achieved top placing among its regional peers for the second consecutive week as it registered a weekly gain of 3.3%. This is also the third consecutive week that the TWSE index registered a growth of at least 3% on a weekly basis. Growth in the index was mainly driven from the higher price of TSMC following lifting of its price targets by Wall Street brokerages on better earnings outlook arising from growing AI-related demand, coupled with potential price hikes in the second half of the year to absorb higher cost for its overseas fabs. Foreign inflow to Taiwan increased 77.8% week-on-week to USD2,579.47 mil.
• The KOSPI index rose higher last week albeit at a slower momentum (+0.9%) while foreign investors maintained its net buy position (+USD777.96 mil) for the third consecutive week.
• 3 out of 6 stock exchanges in the Southeast Asian region closed lower last week. The JCI Index rebounded and become the best performing index among its regional peers with a growth of 2.2%. The JCI was also the only stock exchange to register foreign inflows (+USD20.06mil) within the region.