ETF Performance Report - February 2024

TRADING HIGHLIGHT

• Overall global equities extended its winning streak whereby the growth of the MSCI World Index accelerated to 4.1% month-on-month (MoM) (versus 1.1% in January). The US Consumer Prices rose higher than expected in January at 3.1% versus consensus expectation of 2.9%, sending an indication that the Fed may not cut rate soon. This brought the total volume/value of ABFMY1 to soften to 5.7K units/ RM7.0K in February.
• In respond to cooling Fed rate cut bet, the LBMA Gold Price AM Index inched -0.3% lower MoM. It recorded the largest daily decline of -1.8% in the month a day after the announcement of US Consumer Prices on 13 February, before making a soft rebound towards month end to close at USD2,032.8 per troy ounce. Total volume / value traded for GOLDETF slashed by half versus last month, with 640.2K units / RM2.0 mil being traded.
• China market made a significant comeback during the Chinese New Year month, with both the Shanghai Composite Index and Shenzhen Composite index rebounded by 8.1% and 13.6% respectively, MoM. This came after the country’s sovereign wealth fund pledged to increase its investment in the A-share market. In the same month, the Chinese authorities also announced multiple initiatives in a bid to stimulate investor’s confidence and rejuvenate its economy, including slashing its five-year Loan Prime Rate, and change in the leadership at the market regulator to foster stability in the capital market. Despite a lower cumulative volume / value traded of the four China-themed ETFs (17.2% / 33.2% MoM discount to 3.6 mil units / RM4.4 mil), the four funds closed higher, ranging from 5.1% to 12.3% in price gain. CHINA100-MYR maintained its position as the top traded fund by both volume / value.
• Meanwhile in Malaysia, the FBMKLCI continued its rally albeit at a slower momentum of 2.5% MoM. FBMKLCI-EA’s total volume / value narrowed from its previous high base to 175.3K units/RM281.1K.
• With that, Malaysian ETFs total volume / value traded throughout the 19 market days (versus 21 days in January) softened to 4.7 mil units / RM7.3 mil in February with moderation across the board. Excluding DBT, the market transacted volume / value traded reduced to 1.7 mil units / RM4.2 mil.