ETF Performance Report - October 2022
- Trading activities in the ETF space spiked to the highest level in six months in October. Investors’ interests for the month were highly skewed towards equities-based ETFs, particularly in the later part of the month. Month-on-month (M-o-M), total value/volume traded jumped 87% and 50% respectively to RM7.15 million (mil) /2.31 mil units. On a year-to-date (YTD) basis, value/volume traded were recorded at RM79.8 mil and 32.4 mil units. Dissecting the higher monthly activities, a higher Average Daily Value (ADV) (October: RM376 thousands (K), September: RM182K) explained the improvement despite a lower number of trading days (October: 19 days, September: 21 days).
- Led by US equities’ sharp rebound, particularly amongst the non-technology sectors, most of the global markets rebounded in the second half of October. The MSCI World Index gained 7.11% M-o-M, marking the best October since the year 2015. Underneath the market’s surface, investors’ sentiment remains cautious as the expectations for global central banks to further tightening their monetary policy remain high and the risks of consensus under-estimating the possibility of an earnings recession. On event risks, the tensed situations in the Europe remain unchanged. Meanwhile, market’s first reaction to the conclusion of the 20th National Congress in China was negative as the possibility for a swift economy re-opening is being toned down further.
- Equities-based ETFs saw a meaningful pick-up in activities. Equities-based ETFs contributed 88% (RM6.3 mil) to the overall trading value in October, the highest on a YTD basis. Of this, the China-themed equities ETFs which value traded grew 162% M-o-M to RM4.5 mil contributed 63% of the monthly total value of RM7.15 mil. Despite market’s negative reaction to China equities following the conclusion of the 20th Party Congress, investors seem to take the price weakness to participate in the ETFs. US equities’ rebound also caught local investors’ interests with MYETF DOW JONES U.S. TITANS 50 and TRADEPLUS NYSE FANG+ DAILY (2X) LEVERAGED TRACKER saw the monthly traded value spiked by 45x and 2x to RM0.9 mil and RM0.3 mil.
- After a brief rebound between end-September to early-October, gold prices softened again to trade around the lower-bound of its two-year sideways trading range. Both US Treasury yield and USD stay elevated, against market’s recent narrative for both to possibly peak out soon. These dynamics may explain the soft trading activities in the TRADEPLUS SHARIAH GOLD TRACKER - one of the top traded ETFs on Bursa Malaysia. Trading value shrink 43% M-o-M to RM0.82 mil in October, the third lowest on a YTD basis. Net Asset Value (NAV) softened mildly by 0.2% M-o-M as the weak RM (USDMYR +1.9% M-o-M) offset the 2.1% weakness in the underlying asset’s prices (LBMA AM).
Published Date
08 Nov 2022
Publisher
Bursa Digital Research
